Questions & Replies: Trade & Industry

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2012-12-30

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Reply received: November 2012

QUESTION FOR WRITTEN REPLY

3405. Mr E J Marais (DA) to ask the Minister of Trade and Industry:

Whether (a) his department and/or (b) any entity reporting to him sponsored any (i) event and (ii) promotion hosted by The New Age newspaper since its establishment; if so, in each case, (aa) what was the nature of the event or promotion, (bb) on which date was it held, (cc) what amount was paid, (dd) for what purpose, (ee) from which budget were the funds derived, (ff) what were the expected benefits to his department and (gg) what actual benefits were derived from the sponsorship?

the dti has never sponsored any activity or event hosted by The New Age newspaper see attached table

Reply received: November 2012

QUESTION 3398 FOR WRITTEN REPLY

3398. Mr A Watson (DA) to ask the Minister of Trade and Industry:

(1) (a) How many copies of each annual report that was produced by (i) his department and (ii) the entities reporting to him were commissioned for print in the 2011-12 financial year, (b) how many copies were actually printed and (c) what were the (i) total and (ii) individual costs of printing these reports;

The Department produced five hundred printed copies and two hundred branded compact discs (CD's) of its 2011-12 annual report at a total cost of R271 450.00. The unit cost of print and branded CD versions was R501.40 and R103.75 respectively see attached table.

(2) (a) who printed each specified report, (b) how was the specified printing services provider decided upon and (c) on what date did the specified printing services provider deliver the report to the specified entity;

The Department appointed an external service provider using a three quotation system. The service providers were evaluated and scored according to price, equity status, as well as compliance with relevant conditions such as submission of valid tax clearance certificate and declaration forms. One hundred and twenty copies of the report were delivered on 12 September 2012 at the dti office, 120 Plein Street, Cape Town; and four hundred and eighty copies, including CD's were delivered on 2 October 2012 at the dti Campus in Pretoria see attached table.

(3) whether any of the specified reports that had been printed were found to be unsatisfactory; if not, what is the position in this regard; if so, in each case, (a) which reports, (b) for which entity, (c) by which printing services provider, (d) what action was taken and (e) what were the costs? NW4305E

The Department found the reports to be satisfactory and in accordance with the brief given to the service provider see attached.

Reply received: November 2012

QUESTION FOR WRITTEN REPLY

3289. Mr D A Kganare (Cope) to ask the Minister of Trade and Industry:

Question 1: How many applications for finance did the National Empowerment Fund (NEF) receive from each province in the (i) 2009-10 and (ii) 2010-11 financial years;

Applications by Province

For year ended 31 March 2010

Province

Number of Application Received

EC

63

FS

68

GP

831

KN

142

LP

54

MP

50

NC

26

NW

83

WC

96

Total

1413

For year ended 31 March 2011

Province

Number of Application Received

EC

54

FS

89

GP

702

KN

146

LP

81

MP

70

NC

20

NW

64

WC

75

Total

1301

Question 2: (a) how many (i) persons and (ii) companies were financed by the NEF in each province in the (aa) 2009-10 and (bb) 2010-11 financial years, (b) what amount was allocated to each (i) person and (ii) company in each financial year, (c) how many of the specified companies are still in operation and (d) what type of assistance was given to those who did not make progress?

The tables below give a breakdown of deals invested in, total amount allocated to these companies. The transactions highlighted in red are transactions that are no longer active. The table below addresses question (a), (b) and (c). Twenty-four of the 108 deals are no longer active.

(d) The NEF's Post Investment Unit monitors its clients for risk and provide advice on an on-going basis. The unit also provides a co-ordinated mentorship programme and works with distressed assets in recommending solutions such as liquidations, turnarounds and restructurings.

Transactions by Province

For year ended 31 March 2010

Deals by Province

Value

Number of companies per province

EC

42 123 601.82

5

Of which 3 companies are no longer active totalling an amount of

R 9 624 479.62

FS

60 000.00

1

GP

153 095 529.35

22

Of which 8 companies are no longer active totalling an amount of

R 14 631 680.55

KZN

175 402 705.13

10

Of which 3 companies are no longer active totalling an amount of

R 39 456 245.33

MP

3 500 000.00

1

Of which 1 company is no longer active totalling an amount of

R 3 500 000.00

NW

6 400 000.01

3

Of which 2 companies are no longer active totalling an amount of

R 6 200 000.01

WC

32 412 486.26

8

Of which 2 companies are no longer active totalling an amount of

R 3 829 520.00

Grand Total

412 994 322.57

50

For year ended 31 March 2011

Deals by Province

Deal Values

Number per province

EC

11 106 405.40

4

GP

220 050 177.65

33

Of which 2 companies are no longer active totalling an amount of

R 1 639 137.15

KZN

56 868 483.38

8

Of which 3 companies are no longer active totalling an amount of

R 18 570 600.00

LP

52 323 893.00

3

MP

10 537 426.82

2

NC

7 950 000.00

1

NW

10 000 000.00

1

WC

7 780 000.82

4

FS

8 000 000.00

1

Grand Total

391 616 387.07

58

Reply received: November 2012

QUESTION 3276 FOR WRITTEN REPLY

3276. Mr G G Boinamo (DA) to ask the Minister of Trade and Industry:

(1) Whether (a) his department or (b) any entity reporting to him, placed any advertisements in The New Age since the inception of the newspaper up until the most recent date for which information is available; if not, in each case, what is the position in this regard; if so, (i) which entity placed the advertisements, (ii) on what date was each advertisement placed, (iii) what was the nature of each advertisement and (iv) what amount was spent on each advertisement;

(a) The Department of Trade and Industry uses various media platforms to promote its products and services. The platforms used are selected on the basis of relevance to the target market, reach, and cost efficiency. The New Age is one of the publications through which we advertise the dti's products and services. To date the dti has placed 22 advertisements at a total cost of R 1, 333 660.92

The advertisements that the dti has placed in The New Age vary from inviting applications for nomination of board members of agencies, recruitment of companies to participate in international trade and investment shows, invitations for incentives applications, as well as inviting learners to apply for bursaries.

Some advertising is done jointly with agencies. However, the dti agencies implement their own awareness programmes using appropriate media platforms targeting their stakeholders and the public.

(b) See attached answer

(2) whether any of these advertisements were placed through the Government Communication and Information System (GCIS); if not, what is the position in this regard; if so, what are the relevant details of the advertisements placed through the GCIS;

the dti books advertisement space directly with media houses. Negotiations with Government Communication and Information System (GCIS) to develop processes and systems for the dti to participate in bulk buying programme are underway see attached table.

(3) whether an independent analysis was conducted by his department prior to placing advertisements to ascertain whether The New Age is read by the intended target market; if not, why not; if so, (a) who conducted the analysis and (b) what were the main (i) findings and (ii) recommendations of said analysis;

the dti has not yet conducted any independent analysis of any newspaper, but relies on the South African Audience Research Foundation and other independent media monitoring institutions to determine readership profiles and distribution. The New Age is a national newspaper which publishes over 100 000 copies nationally every weekday, distributed to all major retailers, convenience stores and street sellers, and also delivered directly to households across the country.

The readership of the publication ranges between Living Standard Measure (LSM) 5 and LSM 10, and is widely targeted at every individuals between 25 and 39 who reside rural and urban areas. See attached table

(4) whether any independent studies of said advertisements were conducted to ascertain whether they were effective within the relevant target market; if not, why not; if so, (a) who conducted the analysis and (b) what were the main (i) findings and (ii) recommendations of said analysis?

the dti is in the process of appointing an independent service provider to conduct research on the effectiveness of various communication platforms used to communicate and distribute information to the public. The service provider is expected to resume work in the first quarter of 2013. In the meantime, feedback from stakeholders and response rate of invitations and applications serve as guiding tools for the effectiveness of advertisements. See attached table

Reply received: November 2012

QUESTIONS 3187 FOR WRITTEN REPLY

3187. Mr N J van den Berg (DA) to ask the Minister of Trade and Industry:

(1) Whether his department is currently subscribed to The New Age (TNA) newspaper; if so, (a) how many subscriptions does his department have, (b) when was each subscription initiated, (c) what has been the annual subscription fee for each specified subscription since it was initiated and (d) what is the exact purpose of each subscription;

(2) whether a discount was negotiated for any of the specified subscriptions; if so, (a) for which specified subscriptions and (b) what discount in each case;

(3) whether his department has mass-purchased the TNA on an ad hoc basis since the inception of the newspaper; if so, (a) on what dates, (b) how many copies in each case and (c) why were the papers purchased in each case;

(4) whether (a) the publishers of the TNA and (b) any other entity donated copies of the paper to (i) his department and (ii) any entity reporting to him; if so, in each case, (aa) which entity donated the papers, (bb) to which entity were they donated and (cc) how many copies were donated? NW4027E

Response:

1. Yes the Department of trade and Industry (the dti) has currently subscribed to The New Age (TNA) (a) with a total of thirteen subscriptions, (b) four of them initiated in October 2011; one in January 2012; four in February 2012; two in March 2012; one in May 2012 and another one in July 2012. (c) Each of these annual subscriptions cost R875.00, therefore the total cost is R11 375. (d) The purpose of subscribing to TNA and all other newspapers is to access the latest news and information on matters involving the work of the department, the country and the world.

2. (a) No discount was negotiated with the service provider.

3. (a) This newspaper was never mass purchased by the dti.

4. F&J Distributors, a service provider contracted by the dti to deliver subscribed newspapers to its campus, provided five (5) copies of TNA each weekday for the month of August 2011 in an attempt to introduce TNA to the the dti. No costs were incurred by the dti. Two copies went to the Knowledge Management Center, one copy went to Marketing Relations, and two copies went to the Ministry.

Reply received: November 2012

QUESTION NO 3165

Mr K S Mubu (DA) to ask the Minister of Trade and Industry:

Whether his department is taking any steps to prevent a continuous decline in exports to (a) Europe, (b) the United States of America, (c) United Kingdom and (d) Germany; if not, why not; if so, what are the relevant details? NW4003E

REPLY:

It is widely known that the global economic order has changed. Traditionally Europe and the United States have been South Africa's main trading partners. These are well developed markets with a large consumer base and familiar supply chains. Even though these markets do not show much potential for future growth, they remain essential markets for South African manufactured products. In 2011, six of South Africa's top ten trading partners were still from these regions. For these reasons it is important not to discard these markets due to their lack of future growth, but rather to sustain and maintain them.

It is evident from Table 1 that the traditional markets have been losing some ground as export destinations for South Africa, but this fact cannot be read separately from the fact that new high growth markets such as Asia have gained about 16% of this market share. Table 2 depicts the change in the market share during the financial crisis and it is clear that Germany, the United Kingdom and the United States have each decreased only marginally.

Table [1] in 2011, which is a significant 29.5% higher than in 2010.

Africa's growing importance has also significantly influenced South Africa's export focus. Africa is rapidly becoming the continent with the fastest- expanding economic region in the world. In the 2012/13 financial year: 75% of the National Pavilions that the dti is organising at International Trade Exhibitions are in high growth emerging markets (30% of these are in Africa); 100% of Investment and Trade Initiatives are to Africa and the BRICS countries – 33% of these are to Africa.

We continue, however, to seek to strengthen our relations with EU, the USA and Japan. We continue our negotiations as part of some members of SADC to conclude the Economic Partnership Agreement (EPA) which would provide new market access opportunities to the EU. With the USA, we are working to extend and deepen the market access benefits we obtain under the Africa Growth and Opportunity Act (AGOA). We are also working with the USA remove barriers that impede exports and investment. With Japan we have agreed to jointly work on a programme to increase investment and trade with a particular focus on agro-processed products and autos.

The EU in general, but particularly Germany and France, offer many opportunities for subcontracting by South African firms. South Africa has a large number of firms with capabilities and capacity to supply this market, often with the more sophisticated components, with smaller production runs. South Africa's subcontracting potential in the electronic-, aeronautic-, automotive- and metals sectors is becoming increasingly known and exports of these products to the EU are set to increase in the future.

In order to promote the country's subcontracting capabilities, the dti organized a South African National Pavilion for the first time at MIDEST, the world's largest subcontracting exhibition, which was held in Paris from 6-9 November 2012. In order to continue this exposure a National Pavilion will be organized at the exhibition again next year. Furthermore the dti organized official participation, by means of a National Pavilion at the Automechanika Exhibition in Frankfurt in September this year. A total of six National Pavilions at exhibitions in Europe were approved for the current financial year, from the following sectors: automotive, processed foods, industrial subcontracting, fresh fruit, cultural Industries and ICT.

Within Europe the focus has also shifted to the more stable economies within the EU such as Germany, the Nordic States and the east European countries (Turkey, Poland and Russia). Our traditional trading partners remain important and are still among our top trading partners in terms of exports as well as a source of investments. Exports to these traditional markets remain important as exports to these markets mainly comprise of value added products. The Departments strategy is to 'sustain and maintain' these markets – so as not to lose market share in these markets.


[1]The data source used for this document is Quantec

Reply received: November 2012

QUESTION NUMBER 3038

Adv A de W Alberts (FF Plus) to ask the Minister of Trade and Industry:

Whether the policy of black economic empowerment is a permanent feature of the constitutional democracy; if not, what will the relevant details of the eventual abolition of black economic empowerment by way of (a) a sunset clause or (b) any other mechanism be; if so, what are the (i) moral and (ii) philosophical grounds for this approach? NW3853E

RESPONSE:

Chapter 2 of the Bill of Rights, which is a cornerstone of democracy in South Africa, enshrines the rights of all people in our country and affirms the democratic values of human dignity, equality and freedom. Furthermore, it is important to take note that Section 9 of the referred Bill of rights indicates that "Equality includes the full and equal enjoyment of all rights and freedoms. To promote the achievement of equality, legislative and other measures designed to protect or advance persons, or categories of persons, disadvantaged by unfair discrimination may be taken.

The preamble of the BBBEE Act indicates that under apartheid race was used to control access to South Africa's productive resources and access to skills; and that South Africa's economy still excludes the vast majority of its people from ownership of productive assets and the possession of advanced skills. It further states that unless further steps are taken to increase the effective participation of the majority of South Africans in the economy, the stability and prosperity of the economy in the future may be undermined to the detriment of all South Africans,irrespective of race.

In addition, the recently released results of Census 2011 indicate that South Africa is still characterized by a significant high income gap between white headed households and black headed households. Black headed households had an average annual income of R 60 613 in 2011, while on the other hand the white headed households earned on average six times more a year at R 365 134 per annum. Looking at the comparison based on gender the census reaveld that female-heade households earned on average R 67 330 in 2011, compared to R 128 329 for their male counterparts. Unemployment is also a worry as according to the census it stands at 30%. Categoring this figure per race it shows that unemployment amongst Africans is 35.6%, the coloured population 22.3%, Indian/Asian 11.7% and white 5.9%. These statistics together with other indicators reaffirm that inequality in the country is still based on racial lines and gender lines and therefore a need for government to intervene to reduce inequality using policy instruments such as the B-BBEE Act.

The department of trade and industry is the custodian of Broad-Based Black Economic empowerment, which is an economic growth and development policy aligned to enhance government key priorities, including job creation, skills development, industrialization, supplier development and development of local content.

The dti is currently amending the BBBEE Act, which will be introduced to Parliament very soon. In the amendments, a proposal has been made to institutionalize monitoring and evaluation of the implementation of B-BBEE by all public entities and organs of state.

Such monitoring will provide guidance on the pace of transformation, and upon reviewing such progress, government will determine if there is a need to entertain sunset clause for economic growth and transformation policies.

Reply received: November 2012

QUESTION 2949 FOR WRITTEN REPLY

2949. Mr N J J van R Koornhof (Cope) to ask the Minister of Trade and Industry:

Whether his department has started negotiations to obtain a preferential tariff agreement to enable wine producers to export wine to the rest of the African continent without any export tariffs attached; if not, what is the position in this regard; if so, what are the relevant details? NW3706E

Reply

This reply pertains to wine and sparkling wine classifiable under tariff heading 22.04.

Within the other four member states of the Southern African Customs Union (SACU; Botswana, Lesotho, Namibia and Swaziland), South Africa enjoys duty free movement of its wine exports.

South African exports to the other seven members of the Southern African Development Community (SADC) free trade area should all be duty free at this time. The seven countries are Madagascar, Malawi, Mauritius, Mozambique, Tanzania, Zambia and Zimbabwe. However, there are some deviations between the commitments made and current implementation of these commitments in the cases of Malawi and Zimbabwe.

Malawi has fallen behind with its implementation schedule. Currently wine from South Africa still attracts a 15% import duty. Nevertheless, this does offer some preference over the country's general rate of duty against non-preferential trade partners, of 30%. In the case of Zimbabwe, South African wine still attracts a duty of 20%.

In all cases, duty free trade pertains only to import duties. Other duties such as excise duties still apply to wine trade.

Negotiations towards a free trade agreement among the twenty six countries of southern and eastern Africa were launched in June 2011. The negotiations have not yet reached the point of tabling and agreement on tariff offers. However, South Africa will advance the position of wine as a product of export interest.

Reply received: October 2012

QUESTIONS 2891 FOR WRITTEN REPLY

2891. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

Whether any (a) staff and/or (b) former staff members of the National Regulator for Compulsory Specifications have been charged with both (i) internal disciplinary action and (ii) criminal charges following the (aa) investigations of the Public Protector, (bb) resignations of senior staff members and (cc) qualified audit opinion by the Auditor-General in the 2011-12 financial year's annual report; if not, why not; if so, in each case, what are the relevant details? NW3567E

Response:

(aa) investigations of the Public Protector:

To date the NRCS still awaits the Public Protector Report. A decision will be made upon receipt of this report, of any action that can be taken. However, there are other investigations which have been concluded and the process of taking action against certain staff implicated, are underway.

There is one criminal case on missing funds, which is in the process of being investigated by the SAPS.

(bb) resignations of senior staff members:

The following senior staff resigned in the 2011-2012 financial year:

· CFO

· Supply Chain Manager

· Records Manager

· Internal Audit Manager

No disciplinary action / criminal action was taken against any of the staff who resigned.

(cc) qualified audit opinion by the Auditor-General in the 2011-12 financial year's annual report:

No Disciplinary / criminal action was taken for the following reasons:

· The CFO and the SCM Manager are no longer in the employ of NRCS, and the majority of the AG findings were in the area of Finance and SCM

NRCS is in the process of refining its internal controls in respect of all areas of the AG report.

Reply received: September 2012

QUESTION 2724 FOR WRITTEN REPLY

2724. Mr A Watson (DA) to ask the Minister of Trade and Industry:

Whether his department has awarded any contracts to a certain company (name furnished) since its establishment in 1996; if so, in each case, (a) when was the contract awarded and (b) what was the (i) nature of the contract and (ii) total accumulative value of the tender? NW3342E

Response:

(a) (b) (i) (ii)

The Department has not awarded any contracts to a certain company (name furnished) since its establishment in 1996.

Reply received: September 2012

QUESTION 2574

2574. Mr E H Eloff (DA) to ask the Minister of Trade and Industry:

Whether (a) he and (b) officials of his department met any of the business delegation representing more than 100 American companies (details furnished) during the recent visit by the United States Secretary of State, Mrs Hillary Clinton; if not, why not; if so, in each case, (i) which companies, (ii) which companies showed interest in doing business with South Africa and (iii) what (aa) deals and (bb) agreements were concluded? NW3182E

RESPONSE TO QUESTION 2574

(i) On the 6th August 2012, Minister Davies was invited by the US Chamber of Commerce and American Chamber (AmCham) to address the first Annual United States – South Africa Business Partnership Summit. On the 7th August 2012 as part of the Strategic Dialogue, the dti hosted a business forum led by Business Unity South Africa (BUSA), Black Business Council (BBC), US Chamber of Commerce, Amcham and companies from both countries. Minister Davies and Minister Maite Nkoana-Mashabane of International Relations and Cooperation also hosted a business roundtable summit for Secretary Hilary Clinton and the business delegation. During these engagements Minister Davies and officials from the dti had the opportunity to meet companies from the USA delegation. Companies met by the dti officials included Boeing, Black and Veatch, EMD, Chevron, FedEx Express, Wal-Mart and GE.

(ii) Many of the USA companies have a business presence in South Africa and the focus of the discussions was on enhancing and expanding their business operations in South Africa. Discussions were held on project opportunities in infrastructure, energy, logistics, aviation and finance. Companies from the USA and South African side also discussed partnerships for collaboration in Africa, joint ventures, skills development and support for smmes.

(iii) (aa) The USA Export – Import Bank (EXIM) and the Industrial Development Cooperation of South Africa (IDC) signed a $ 2 billion declaration of intent to support clean energy projects.

(bb) The USA Trade and Development Agency (TDA) and the South African Department of Transport are launching the US-South Africa Aviation Partnership. This effort aims to build capacity of South Africa's aviation workforce through training and building closer ties between our aviation sectors.

Reply received: September 2012]

QUESTION 2536

Mr G B D Mc Intosh (Cope) to ask the Minister of Trade and Industry:

(1) What steps is he taking to soften the impact of the Eurozone crisis on (a) local exporters, (b) economic growth and (c) jobs.

(2) whether, with reference to his reply to question 140 on 23 February 2012, he has found that exports to BRIC countries (Brazil, Russia, India and China) have been boosted as a result of trade initiatives; if not, why not; if so, what (a) results have been achieved with regard to offsetting the negative impact on exporters to the Eurozone and (b) are the further relevant details? NW3140E

REPLY:

As is now well known, the 'Great Recession' that began in 2008 was the most severe global economic crisis since the 1930s, depressing global production, demand, and flows of trade and investment. The impact on South Africa was also severe, with GDP declining by 1.3 per cent in 2009 and a loss of close to one million jobs. The sovereign debt crisis now afflicting the Eurozone was a part of that crisis, and is now a key factor in holding back global economic recovery.

The South African Government responded in a comprehensive and decisive manner to support recovery in economy to promote growth and development, jobs including through support to local exporters. Through the Industrial Policy Action Plan we have advanced efforts to promote labour absorbing industrial development. We have managed to stabilise employment in the clothing and textiles sectors. We have provided ongoing support to the automotive industry and the support to Business Process Services sector has resulted in employment growth. We have also introduced measures so that public procurement encourages local production more effectively.

The Manufacturing Competitiveness Enhancement Programme, introduced this year, will support competitiveness in labour-intensive and value-adding manufacturing sectors. Job creation is also supported through the dti's Export Marketing and Investment Assistance scheme, which facilitated the creation of 933 permanent jobs and 2237 temporary jobs during the 2011/2012 financial year.

Over the Medium Term Expenditure Framework (MTEF) period ahead, Government has also approved and budgeted infrastructure plans amounting to R845 billion. Government's capital expenditure programme should be strategically leveraged to stimulate and support the development of local industries that can supply domestic and export markets.

the dti has also scaled up efforts to diversify South Africa's trade and investment partners, with stronger focus on the fast growing emerging markets in Africa, South-East Asia, the Middle East and South America. In the current financial year, the dti will hold National Pavilions at 20 International Trade Shows of which 75% are in high growth emerging markets (30% in Africa, 20% in Asia, 15% in Middle East and 10% in South America). Trade Shows in Africa are planned for Zambia, Zimbabwe, Angola, Mozambique and Nigeria.

All these measures have made a contribution to diversifying South Africa's trade to higher growth markets in emerging economies and in Africa. In 2008 when the financial crisis started, the EU and Asia each attracted 29% of South Africa's exports. By 2011, South Africa's exports to Asia increased to 36%, as exports to the EU declined to 21%. Exports to Africa have also grown: from 15% of South Africa's total exports in 2008 to 17% in 2011.

South Africa's exports to the BRIC countries grew significantly between 2008 and 2011. BRIC countries now account for approximately 10% of South Africa's total exports. In 2011, South Africa's total trade with the BRIC countries stood at R263.5 billion, which is a significant 29.5% higher than in 2010. The growth of exports to Brazil has been the most dramatic, increasing by 98% during 2009-2010, although off a low base. Over the same period, South African exports to Russia grew by 50%, while exports to India and China grew by 43% and 40% respectively.

Export growth has helped to reduce the overall trade deficits with BRIC countries. For example, while South Africa has continued to run a trade deficit with China over the last four years, that deficit has narrowed by over 50 percent from R48 billion in 2008 to less than R18 billion in 2011.

the dti has also identified ten products that would be the focus of our efforts to promote higher value added exports. For example, these products were promoted at exhibitions held in Beijing and Shanghai in 2011, and the exhbitions resulted in R400 million worth of orders.

Reply received: September 2012

QUESTION 2503 FOR WRITTEN REPLY

2503. Mr D J Stubbe (DA) to ask the Minister of Trade and Industry:

(1) Whether (a) his Ministry, (b) his department and (c) any entity reporting to him plan to host end-of-year parties; if not, in each case, what is the position in this regard; if so, in each case, (i) for how many persons and (ii) at what cost;

Response:

The Department:

(1) (a) (b)(c)(i)(ii) and (2)(a) (b)

the dti has an annual staff recognition awards function, which is planned for November 2012 at a cost of R301 175. This amount has been budgeted for under Communications and Marketing.

The Entities:

(1) Whether (a) his Ministry, (b) his department and (c) any entity reporting to him plan to host end-of-year parties; if not, in each case, what is the position in this regard; if so, in each case, (i) for how many persons and (ii) at what cost; Please see attached table

(2) whether the cost of the specified end-of-year parties has been budgeted for in the current financial year; if not, from where will the funding be sourced; if so, (a) what amount has been budgeted and (b) from which part of the budget will it be incurred? Please see attached table

Reply received: September 2012

QUESTION 2468 FOR WRITTEN REPLY

DUE DATE: 12 SEPTEMBER 2012

2468. The Leader of the Opposition (DA) to ask the Minister of Trade and Industry:

(1) How many (a) small businesses are currently registered with his department and (b) of these businesses are not operational;

(2) whether his department has investigated the challenges preventing small businesses from being fully operational; if not, why not; if so, what are the relevant details in each case? NW3071E

RESPONSE

According to the Companies and Intellectual Property Commission (CIPC):

(1) (a) and (b)

The following number of entities is registered with the CIPC and which entities have updated their annual returns.

Companies

External Company 1 398

Public Company 3 083

Private Company 352 960

Co-Operatives

Secondary Co-Operative 324

Primary Co-Operative 42903

Tertiary Co-Operative 13

Close Corporations 967 597

2. An updated annual return is an indication that the entities that are currently in the CIPC register are operational. See attached

Reply received: September 2012

QUESTION 2467 FOR WRITTEN REPLY

DUE DATE: 12 SEPTEMBER 2012

2467. The Leader of the Opposition (DA) to ask the Minister of Trade and Industry:

Whether his department has conducted any research to determine how many days it takes to (a) register a business and (b) comply with all regulations pertaining to starting a business; if not, why not; if so, what are the relevant details in each case?NW3070E

RESPONSE

(a) and (b)

The new Companies Act, 2008 and Regulations are products of the Corporate Law Reform initiated in 2004. Various studies were conducted which informed the reform, commencing with policy reform in 2004. Company registration, amongst other aspects relative to company law, was looked into. It was included in policy that the vision for company registration and the maintenance of that registration is to ensure a service that is efficient, effective and one that imposes minimal constraints on business. To this end, the Department sought to transform company registration into an efficient electronic registration service with expedited turnaround times.

According to the Companies and Intellectual Property Commission (CIPC), registration with CIPC takes between 10-12 working days and online between 3-5 days. The online time period is determined by the time the client takes to submit the supporting documents. In theory an application can be submitted online in the morning and if the documents are presented at Customer Interface Unit in the afternoon, the enterprise will be registered.

Reply received: September 2012

QUESTION NO 2415

Mr G B D McIntosh (Cope) to ask the Minister of Trade and Industry:

What measures has he put in place to (a) improve the trade deficit in respect of China and (b) ensure that local companies are more competitive so that jobs will be created?NW3009E

REPLY:

In January 2007, the Cabinet adopted the National Industrial Policy Framework to promote a more labour-absorbing industrial path that will create employment. The three iterations of the Industrial Policy Action Plan which emerged from the broad policy sets out a range of specific government interventions to promote industrial development and the competitiveness of South African companies, including the new Manufacturing Competitiveness Enhancement Programme. It is also important to note that in his State of the Nation Address in February 2012, President Jacob Zuma announced the launch of a massive infrastructure development programme for South Africa which will underpin and build South Africa's industrial base, as well as enhance the country's competitiveness.

With respect to our exports to China, the dti has compiled a list of top ten value-added products for export to China. The selection of these products was part of a concerted effort to ensure that as the overall quantum of exports to China grows, we also expand our exports of higher value manufactured products. Subsequently, these products were part of the trade exhibitions held in Beijing and Shanghai in November 2011. Bilateral trade with China continued to grow over past four years despite the impact of the global economic crisis. Total trade grew 2 percent between 2008 and 2009; by 19 percent in 2010; and by 32 percent in 2011 to more than R188 billion. South African exports to China grew rapidly: By 42 percent between 2008 and 2009; by 20 percent in 2010; and by 46 percent in 2011. While South Africa has continued to run a trade deficit with China over the last four years, it is important to note that the deficit has narrowed by over 50 percent from R48 billion in 2008 to less than R18 billion in 2011.

Reply received: September 2012

QUESTION 2387 FOR WRITTEN REPLY

2387. Mr L S Ngonyama (Cope) to ask the Minister of Trade and Industry:

(1) Whether he has made any progress through the Southern African Development Community (SADC) in developing and approving infrastructure that would develop small business entrepreneurs to boost regional growth; if not, why not; if so, what are the relevant details;

(2) whether member countries have committed to (a) the easing of trade barriers and (b) establishing a master plan for small business development and survival; if not, why not; if so, what are the relevant details? NW2979E

Reply

The SADC Summit, in August 2012, approved the SADC Regional Infrastructure Development Master Plan. The Plan will serve as a key Strategic Framework to guide the implementation trans-boundary infrastructure networks in six infrastructure sectors covering: Energy, Transport, Tourism, ICT and Postal, Meteorology and Water. Regional priorities are entailed in the Short Term Action Plan (STAP) to be implemented over five years.

President Zuma is the champion for the North South Corridor infrastructure programme, one of seven African Union infrastructure initiatives spanning the continent. The North South Corridor road network is the main artery supporting intra-regional trade in southern Africa. Work on the North-South Corridor, is focused on 157 projects in various stages of the project life cycle, as follows: 59 road projects; 38 rail projects, and 6 bridge projects. This work covers the road and rail from Durban to Dar es Salaam in Tanzania. The Trans-African Highway Route 4 establishes the road link of the Corridor all the way to Egypt, through Kenya, Uganda, South Sudan, Sudan and Egypt. This involves an additional 47 projects (22 road and 10 rail projects). A key aspect of this work is trade facilitation initiatives at border posts along the corridors that aim to enhance cooperation that will facilitate the movement of people, goods and services across borders.

The twelve members of the SADC free trade area Protocol on Trade in Goods (Botswana, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe) have, with some exceptions, implemented their tariff reduction commitments. Over 85% of goods in the region are traded duty free and this comprises over 90% of the tariff lines of the member states. Progress on addressing non-tariff barriers is more difficult, as many of these require complex legislative or regulatory changes at national levels, and in some cases, the barriers are legitimate to protect, for example, human, animal and plant life or health. The tripartite online non-tariff barriers reporting and monitoring mechanism, set up amongst the countries of SADC, the East African Community and COMESA is increasingly being used by regional economic operators to report barriers, and there has been a reasonable degree of success in resolving such barriers.

SME development programmes of the SADC Secretariat are at an early stage. A SADC SME development dialogue that took place in Harare in July 2011 aimed to assess the level of development of national policies in the region and to initiate a process to harmonise those frameworks on SME sector development. Further, Ministers responsible for Gender and Women Affairs met in Windhoek, Namibia in June 2011, and approved the SADC Advocacy Strategy on Informal Cross Border Trade which provides clear policy and legislative action areas necessary to promote an enabling environment for women in trade, especially with respect to Informal Cross Border Trade. There is also a data base in the investment portal of the SADC website that lists some of the investment incentives that respective member states offer towards the development of small business. This work will need to accelerate in future.

Reply received: September 2012

QUESTIONS 2318 FOR WRITTEN REPLY

2318. Mr M M Swathe (DA) to ask the Minister of Trade and Industry:

(a) What steps has he taken to give effect to the performance agreement that he signed with the President in 2010, (b) what outcomes have been measured and (c) what follow-up steps has he taken with regard to each specified outcome?NW2902E

(a) Steps taken to give effect to the performance agreement signed with the President in 2010?

The performance agreement we signed with the President is about how to achieve mainly two of the twelve outcomes our government has identified for prioritisation, namely, Outcome 4 - Decent Employment through Inclusive Growth and outcome 11 create a better South Africa, a better Africa and a Better world. It also included the following outputs: identifying obstacles to faster economic growth; making our growth more labour absorbing; developing a multi-pronged strategy to reduce youth unemployment; increase net exports and grow trade as a share of world trade; analyzing the cost structure of the economy; and critically reviewing our support for small businesses and to develop a clear plan to improve our performance.

To achieve these outcomes my department in collaboration with my colleagues in government, particularly from Economic Sectors and Employment cluster (ESEC) developed and implemented two iterations of the Industrial Policy Action Plan (IPAP) which sought to bring about a shift in the scale of our industrial policy which is critical to put our economy on a more labour absorbing growth path.

In implementing our Industrial Policy we made some breakthroughs from which we learned invaluable lessons that will inform the government's participation in industrial development. These include the stabilisation of the Clothing, Textiles, Leather and Footwear industries; the turning around of the automotives industry; growth of jobs in the Business Process Services (BPS) industry; and the development of public procurement as a vehicle to promote local production.

We have aligned trade and competition policies strategically with industrial policy objectives and had our tariff setting directly informed by sectoral priorities. Campaigns to tackle customs fraud, illegal imports and products that do not meet minimum mandatory standards have been increased. We have beefed up our standards and as a result assisted the growth of a range of new sectors, particularly related to green industries and industrial energy efficiency.

We played a significant role in the development the Tripartite Free Trade Agreement (T-FTA) made up of the Southern African Development Community (SADC) the East African Community (EAC) and the Common Market of Eastern and Southern Africa (COMESA) that was launched in South Africa last year.

The key focus of this T-FTA includes market integration, infrastructure development and industrial development in the region and the African continent at large. This initiative will benefit a lot from the North – South road and rail corridor championed by South Africa on behalf of the AU together with various other infrastructure projects across the continent.

Work on the review of existing SMME Programmes, Policies and Institutions is complete and we are now beefing up internal capacity to focus specifically on the informal, townships and peri-urban enterprises.

On promoting an inclusive economy, we have completed the review of the BBBEE Act and have gazetted a new bill that seeks to strengthen enterprise development and skills in addition to addressing the challenges that have characterised the current legislation such as fronting.

The amendment of the Cooperatives Amendment Bill is being finalised. In an effort to increase market access for cooperatives, through the BRICS mechanism, South Africa and China have agreed to enter into business contracts – the "cooperatives to cooperatives" on the following three commodities: maize, wine and aquaculture.

In the case of the automotives sector, the technical work for the completion of the transition from the Motor Industry Development Programme (MIDP) to the Automotive Production and Development Programme (APDP) by 2013 has been completed.

(b) Outcomes measured

From the two outcomes around which the work of my departments is cantered, namely, outcome 4, Decent Employment through Inclusive Growth and outcome 11, Create a Better South Africa, a Better Africa and a Better World, there are several sub-outcomes that are being monitored, they, as outlined in outcome 4 delivery agreement we signed in 2010, are gross domestic product (GDP); labour absorption rate; investment; diversification of the economy; and income inequality.

The GDP target for 2014 was set at 4.5 per cent per year but the latest figure as at the second quarter of 2012 is 3.2 per cent. This target is not likely to be met mainly due to the global economic down turn.

The labour absorption rate is targeted to be at 45 per cent by 2014 but is currently at 41 per cent, again not likely to be met for similar reasons as the GDP.

The GINI coefficient which measures the levels of income inequality was planned to be reduced from 0.7 in 2009 to 0.59 in 2014 but it is still at 0.69 currently and is not likely to be met.

Investment as percentage of the GDP is expected to be between 20 and 25 per cent by 2014 and is currently at 18 per cent. This target is likely to be achieved, the massive government infrastructure investment programme is likely to catalyse the achievement of the target including both the actual public investment as well as the crowd-inn effect it is expected to have on investment by the private sector.

(c) Follow-up steps taken with regard to each specified outcome

The conceptualisation and drafting of this performance agreement coincided with the most severe global economic crisis since the 1930s. When this contract was signed, the South African economy was just emerging from 1.3 per cent decline in 2009 which was accompanied by a loss of close to a million jobs. The result of operating under such conditions is reflected by the extent to which we are unable to meet our 2014 outcome targets as explained when answering the (b) component of this question above.

Unfortunately, history seems to be repeating itself, the recession is already back in Europe, risky signals are showing in the US and the Asian economies are showing decelerating growth rates. This already is impacting on our economy, exports are declining due to the declining global demand and employment is stagnating.

Given this environment our most obvious choice was to commit to restraining the decline in economic activities; stabilising the jobs market; and building the foundation on which the economy could grow. This commitment requires a sharpening of interventions to support industrialization; regulatory reforms aimed at improving the business operating environment; and a diversification of export markets for South Africa's products among others.

The following measures have been put in place to try and mitigate the impact of the second round of global recession and thus contribute to the achievement of our outcomes:

The 12(i) Tax Incentive currently being implemented has supported large manufacturing investments, helping them withstand the global economic down turn however we are mindful of the fact that the problems confronting the world economy are far from over and the way forward for the manufacturing sector is to invest and raise competitiveness, and not wait and hope that the global environment will improve eventually.

It is for these reasons that the 12i tax incentive has now been supplemented by the introduction of the Manufacturing Competitiveness Enhancement Programme (MCEP) which will be deployed towards upgrading the competitiveness of relatively labour-intensive and value-adding manufacturing sectors impacted by the currency, global crisis and electricity cost escalations. It provides support for capital investment; working capital and pre-shipment finance; product development and process improvement; new market access; energy efficiency; and logistics improvements.

Also, the National Ports Authority (TNPA) has recently announced a set of measures to lessen the negative effects of high port charges for South African exporters, focussed on the export of tradable, value added goods. These measures will contribute to a lessening of the impact of the global economic downturn on the competitiveness of the South African manufacturing sector in international markets.

The National Industrial Participation Programme (NIPP) which is a result of the amalgamation of NIPP with the Competitive Supplier Development Programme (CSDP) to enable fleet, direct and indirect local procurement has been completed and awaits executive and legislative approval.

We are also making an effort to spread economic activity, particularly industrial activity to all corners of our country that have latent economic potential. In this regard, a draft legislation for Special Economic Zones that sets the basis for a broader range of industrial parks and infrastructure for effective clustering of value-adding and employment enhancing manufacturers has been gazetted.

Reply received: September 2012

QUESTION 2268 FOR WRITTEN REPLY

2268. Dr W G James (DA) to ask the Minister of Trade and Industry:

(1) When will the three adjoining laboratories at the real-time Polymerase Chain Reaction (PCR) South Africa Bureau of Standards (SABS) laboratory facility, needed to screen and quantify Genetically Modified Organisms (GMOs) in food products, be completed;

(2) Whether the recruitment process for the appointment of qualified staff to make the facilities fully operational has been initiated; if not, why not; if so, (a) when will the staff be appointed, (b) how many staff members will be appointed and (c)(i) for what positions and (ii) what are the minimum requirements of each position;

(3) Whether the SABS GMO testing facility will be fully operational as planned by the Chief Executive Officer (name furnished) by November 2012; if not, what is the position in this regard; if so, how was this conclusion reached;

(4) What are the reasons for the long delay in the implementation of GMO labeling requirements as specified in the Consumer Protection Act, Act 68 of 2008? NW2848E

Response:

(1) The facility will be ready towards the end of October 2012

(2) (a) A test Officer with Polymerase Chain Reaction (PCR) experience was appointed in April 2012 to conduct routine microbiology tests. Future plans are to automate these routine microbiology tests in order to create extra capacity for the laboratories. Further training to augment the PCR skills of the laboratories is in hand, including the attendance of the Test officer at a Genetically Modified Organisms (GMO) PCR workshop that was held at the University of Free State. This workshop outlined al the processes involved in RT PCR GMO testing.

(b) and (c) (i) and (ii) A decision was taken to only employ one Test Officer with the aim of increasing the number of testers once the laboratory is fully operational and the demand for the service is better assessed.

(3) The plan to have facility operational in November 2012 remains in place.

(4) The GMO labelling requirements became effective on the 1st October 2011. However, the dti was subsequently advised that the reference to "goods", "ingredients" and "components" in the GMO regulations would make it difficult to enforce the regulations and that it was necessary to substitute these words with the word, "organisms". Accordingly the dti took a decision to amend the regulations and these amended regulations will be published in the Government Gazette in the near future, together with a notice inviting the public to comment. Thereafter the dti will amend the regulations taking public comment into consideration.

Reply received: September 2012

QUESTION 2258 FOR WRITTEN REPLY

2258. Mr D J Maynier (DA) to ask the Minister of Trade and Industry:

(1) Whether his department has met with representatives of the Commission of Inquiry into Allegations of Fraud, Corruption, Impropriety or Irregularity into the Strategic Defence Procurement Package; if not, what is the position in this regard; if so, in each specified meeting (a) who represented (i) his department and (ii) the commission, (b) when did the meeting take place and (c) what was the purpose of the meeting;

(2) Whether his department has handed over any documents to assist the commission in its inquiry into the arms deal; if not, why not, in each case; if so, in each specified case, (a) when were the documents handed to the commission, (b) which documents were handed to the commission and (c) how many documents were handed to the commission;

(3) Whether hewill make a statement on the matter?NW2837E

Response:

(1) The dti has not met with reprentatives of the Commission of Inquiry into Allegations of Fraud, Corruption, Impropriety or Irregularity into the Strategic Defence Procurement Package, because the commission has not requested a meeting to date.

(2) The commission has however written to DTI to request relevant documents to its mandate. These documents are being compiled for onward transmission to the commission.

Reply received: September 2012

QUESTION 2227 FOR WRITTEN REPLY

2227. Ms J L Fubbs (ANC) to ask the Minister of Trade and Industry:

(1) With reference to the synergy between preferential procurement regulations and industialisation to grow the economy and create jobs, how does he envisage that the two waves of designated products will (a) reverse industrial decline, (b) stimulate local manufacturing and (c) resulting the green economy?

Response:

The Designation of sectors for public procurement is one of a range of policy levers within the broader suite of procurement policy as well as wider policy interventions set out in the Industrial Policy Action Plan (IPAP) to reverse Industrial decline and stimulate local manufacturing. With respect to procurement these include the amended Regulations of the Preferential Procurement Policy Framework Act (PPPFA) which enables Designations, the Customised Sector Development Programme (CSDP) and the National Industrial Policy (NIP).

Designation for local procurement increases aggregate demand for domestic companies and enables them to participate as suppliers and in so doing build up their competitiveness.Therefore Designation will, amongst other policy instruments, contribute to reversing industrial decline (a) and (b) stimulate local manufacturing, maintain or grow domestic market share and enable companies to explore export opportunities.

The progressive scaling up of localisation requirements under the Renewable Energy Independent Power Producer (REIPP) process and the possible Designation of Solar Water Heaters (SWH) will serve to ensure that domestic production of components into the SWH roll-out and the renewable energy generation programme is achieved.

Reply received: August 2012

QUESTION NO 2244

2244. Mr L S Ngonyama (Cope) to ask the Minister of Trade and Industry:

(1) Whether he has found that the South Africa-United States of America relations, through the African Growth and Opportunity Act (AGOA), has benefited the economy in areas of job creation and manufacturing; if not, what is the position in this regard; if so, what are the relevant details;

(2) Whether he has found that the manufacturing industry has grown in relation to goods outlined for duty-free imports in America; if not, what is the position in this regard; if so, how can South Africa capitalise on the (a) recent visit by the USA Secretary of State Ms Hillary Clinton and (b) preferential trade agreement that may be renewed in 2015;

(3) Whether other products have been identified, other than vehicles, to increase export into the USA; if not, why not; if so, what are the relevant details?NW2820E

Reply:

The United States' (US) Africa Growth and Opportunity Act (AGOA), which incorporates the US Generalised System of Preferences (GSP), accords duty free treatment to the US market for around 5200 products from eligible countries in Sub Saharan Africa. Around 43 per cent of South Africa exports to the US enter under the AGOA/GSP programmes. This treatment has helped to enhance South African exports to the USA and, in so doing, has helped to support the development of the South African economy, notably in manufacturing.

Under AGOA, South African exports to the US increased from US$3.5 billion in 2001 to US$5 billion to 2011. The sectors that have benefited most under this programme have been vehicles (accounting for 42% of total exports), iron and steel (22%), chemicals (12%), and beverages (2%). Most of South African exports under AGOA are manufactured products. Moreover, the overall contribution of AGOA to total South African manufacturing GDP and employment in 2010 has been estimated at 2.78% and 11% respectively.

The South African Government took advantage of the recent visit by the US Secretary of State to reiterate our view that the US Administration work to ensure there is an early announcement of the extension of AGOA beyond the deadline of 2015. We argued that it in the interest of South Africa, the US and the Southern African region that the programme retain its current architecture and that an early announcement would avoid the uncertainty that could undermine the confidence of exporters and investors who take advantage of AGOA.

The South African Government has identified a range of products that could be exported to the US. US food safety standards have restricted exports of, for example, of sub-tropical fruits including litchis, avocadoes and mangoes. We are working with the US government to address these non-tariff barriers. Other products are currently excluded from AGOA. These include canned apricots (which face duties of 29.8%), canned peaches (17%) and electrolytic manganese metal powder (14% duty). In these cases, the South African government has worked with industry to expand the AGOA product coverage to include these products.

Reply received: August 2012

QUESTION NO 2228

2228. Ms J L Fubbs (ANC) to ask the Minister of Trade and Industry:

How will the strategic partnership of the Forum on China-Africa Co-operation (FOCAC) (a) strengthen mutually beneficial trade relations with China and (b) contribute to the Government's commitment to regional integration to drive sustainable (i) economic and (ii) infrastructural development in Africa? NW2803E

Reply:

The outcomes of FOCAC offer support to Africa's call for developing the manufacturing base of the continent. Low trade levels are symptomatic of the underlying problem of un- and under- developed productive capacity across African economies. The modality of China's support in this regard will need to be defined, and is likely to proceed a bilateral or regional basis. South Africa sees value in drawing on Chinese experience and support in the development of Special Economic Zones which can unlock manufacturing growth. China has extensive in this area and some lessons may be useful for our purposes. China has already committed to providing training programme in the management of SEZs.

Under FOCAC, China has also committed to enhance trade through investment and trade promotion missions and African products exhibitions to identify African produced products that could be exported to China. China has also agreed to provide support for industrial policy planning with African countries under the FOCAC. It should be noted that China has committed to provide zero-tariff treatment for 97% of products exported by Africa's least developed countries.

China through the FOCAC has committed to support Africa's regional integration largely through infrastructure development. China already supports infrastructure development through the China-Africa Development Fund (CADF) based in South Africa. China has expressed a commitment to infrastructure development on the continent through the implementation of the African Union Programme for Infrastructure Development in Africa (PIDA) and through the Presidential Infrastructure Champions Initiative (PICI). More recently, China has expressed an interest in supporting work on the North-South Corridor.

Chinese enterprises and financial institutions will be encouraged to invest, participate in transnational and trans-regional infrastructure construction across Africa and provide preferential loans to support infrastructure development in the continent.

Reply received: September 2012

Question 2226

Mr N E Gcwabaza (ANC) to ask the Minister of Trade and Industry:

(a) How does he envisage the Manufacturing Competitiveness Enhancement Programme (MCEP) will invigorate confidence among manufacturers and

(b) What critical components has he identified that will make the MCEP a success?

NW2801E

Response:

(a) The manufacturing sector is the key to long term economic well-being of South Africans. The recession in 2008/2009 saw the closure of a number of factories with obsolete and antiquated machinery and equipment, resulting in a loss of 200 000 jobs in manufacturing. In the immediate aftermath of the recession the manufacturing sector experienced further shocks arising from rapidly increasing domestic input costs and an overvalued exchange rate. This resulted in the South African market being flooded by an influx of very cheap imports across a wide range of sectors such as tyres, glass, etc.

The current uncertainty in the growth prospects of both the global and domestic economy is likely to discourage manufacturers from investing in urgently required competitiveness enhancing investments in technology, processes and people until it is too late. As a key component of the Industrial Policy Action Plan (IPAP), the MCEP provides financial incentives to manufacturers to make the necessary investments now and not later when the economic uncertainty would have been resolved.

(b) The MCEP interventions are clustered around the production incentive, which is managed by the dti and a working capital facility which is managed by the Industrial Development Co-operation (IDC). Firms can apply for one or a combination of a range of interventions based on their unique needs. MCEP will be a success as a result of firms in investing in a number of the following MCEP supported activities:

• upgrading their production facilities by investing in capital equipment and green technology,

• investing in improved production processes,, logistics, product development and skills development

• clustering with other firms in the same sub-sector to address common challenges, e.g. skills development, joint export marketing, etc

The flexibility of the programme, which allows each firm to receive a customised package based on its competitiveness requirements, will be a key critical success factor for the programme.

Reply received: August 2012

QUESTIONS 2168 FOR WRITTEN REPLY

2168. Mr M Swart (DA) to ask the Minister of Trade and Industry:

Whether (a) his department or (b) any entity reporting to him makes use of private security firms; if so, in each case, (i) which firms and (ii) what is the (aa) purpose, (bb) value and (cc) duration of each specified contract? NW2691E

the dti(a)

Yes the department makes use of private security firms.

a(i)

a(ii)(aa)

a(ii)(bb)

a(ii)(cc)

Stallion Security (Pty) Ltd

The company provides security supervisors who support the Security Sub-Directorate to conduct inspections, escorts and monitoring of contractors specifically for after hours maintenance and variation works.

R298,833.17

6 months

PPP concessionaire Rainprop (Pty) Ltd and sub-contracted via concession agreement to security firms:

JSJ Security (Pty) Ltd

and Tshimollo Security

The companies provide security guarding services and control room monitoring at the dti campus.

R7,383,996 pa

This service is provided as part of the 25 year PPP agreement with the concessionaire

12 months with these suppliers.

Sub-contracted to PPP concessionaire:

Sunnyside City Improvement District (CID)

The CID provides security services around the dti Campus perimeter up to Sunnypark Shopping Centre

R 410 400 pa

month to month

(b) Yes some entities make use of private security firms.

Entities

b(i)

b(ii)(aa)

b(ii)(bb)

b(ii)(cc)

Companies and Intellectual Property Commission (CIPC)

The Companies and Intellectual Property Commission (CIPC) reporting the Minister of Trade and Industry currently has two private security companies appointed namely: JSJ Security and Cleaning Services CC and Born-To-Protect Security Services CC'.

To safeguard CIPC personnel, visitors and assets, by performing access control and security guarding services at the respective CIPC offices at the dti Campus between the hours 06:00 and 18:00 on weekdays and CIPC Off-site Paper Based Disclosure Centre where a 24 hour security service is being conducted.

The value of the respective contracts is as follows:

· JSJ Security and Cleaning Services CC at (R 797,270.40) and

· Born-To-Protect Security Services CC at (R 816,152.76).

The contracts were awarded for a period of 12 months, with a two (2) month exit clause, should CIPC relocate to another premises or the service no longer be required.

Export Credit Insurance Corporation (ECIC)

ECIC does not make use of private security firms.

N/A

N/A

N/A

National Consumer Commission (NCC)

No response received

National Credit Regulator (NCR)

The NCR is making use of private security, Nationwide (Pty) LTD and they have subcontracted Monitornet for armed response.

To provide physical security to both NCR staff and assets.

R 53 400, 00 monthly

The duration of the contract is two years ending 01/12/2013

National Credit Tribunal (NCT)

The NCT does not make use of private security firms

N/A

N/A

N/A

National Empowerment Fund (NEF)

The National Empowerment Fund has appointed a private security firm. The service provider appointed is Hlanganani Protection Sevices (Pty) Ltd. The service provided is that of basic access control into and out of the NEF's offices.

To providing security services to its leased office

R1.4 million over 24 month period

The duration of the contract is 24 months

National Gambling Board (NGB)

The NGB does not make use of private security firms

N/A

N/A

N/A

National Lotteries Board (NLB)

The NLB does not make use of any private security firms

N/A

N/A

N/A

National Metrology Institute Of South Africa (NMISA)

The NMISA does not make use of any private security firms. The NMISA does, however, rent buildings on the CSIR Campus, which provides general security for access control to the CSIR site

N/A

N/A

N/A

National Regulator For Compulsory Specifications (NRCS)

The NRCS uses private security companies in their regional offices for call out in terms of alarm notifications and security of the building.

· Chubb – Cape Town, Durban, Bloemfontein

· Inkwazi – Port Elizabeth

· Recall Security- Cape Town

Security of the premises

· Chubb – Cape Town (call-out) - R4 134.60 p.a

· Recall Security- Cape Town (on premises security) – R197 465.84 p.a

· Inkwazi Security- Port Elizabeth (on premises security) – R289 331 p.a

· Chubb – Durban (call out) – R 5 381.20

· Chubb – Bloemfontein (call-out) – R5381.20

· Chubb – Cape Town (call-out) - 36 months

· Recall Security- Cape Town (on premises security) – 24 months

· Inkwazi Security- Port Elizabeth (on premises security) – 12 months

· Chubb – Durban (call out) – 36 months

· Chubb – Bloemfontein (call-out) – 36 months

Small Enterprise Development Agency (seda)

Seda does not make use of a private security company. The security company at the building Seda rents is for access control and is employed by the landlord

N/A

N/A

N/A

South African Bureau Of Standards (SABS)

The SABS uses private security company. The name of the company is Boiler Security Services

To provide security and guarding services at the various SABS sites

The monthly cost of these services is R450 000

The contract commenced on February 2011 for initial period of one year. It has been extended pending the tender adjudication process for a new service provider which should be end October 2012

South African National Accreditation System (SANAS)

SANAS does not make use of private security firms. Security is covered by the Landlord.

N/A

N/A

N/A

Reply received: August 2012

QUESTION 2204 FOR WRITTEN REPLY

2204. Mr G B D Mc Intosh (Cope) to ask the Minister of Trade and Industry:

Whether, with reference to the National Consumer Tribunal report, he intends taking any steps to improve the (a) competencies and (b) performance of the National Consumer Commission; if not, why not; if so, what are the relevant details?NW2730E

Reply

In terms of the Consumer Protection Act (Act 68 of 2008), at least once every five years, the Minister must conduct an audit review of the exercise of the functions and powers of the Commission. In addition to any other reporting requirement set out in the Act, the Commission must report to the Minister at least once every year on its activities, as required by the Public Finance Management Act, 1999 (Act No 1 of 1999).

To fulfill the obligations set out in the Act, the Minister of Trade and Industry as Executive Authority, receives regular reports from multiple sources including: the National Consumer Commission (NCC), the relevant line function division in the dti, the internal dti auditors, external auditors, the Auditor-General and Parliament.

In addition, the NCC Commissioner enters into an annual performance agreement with the Executive Authority, monitored by the Agency Management Unit of the dti. During the process of monitoring and evaluation, the Minister has noted performance related concerns raised by the various internal units, the Auditor-General and members of the public.

The Minister is currently addressing these matters with the leadership of the NCC to ensure that appropriate steps are taken to bring about the necessary improvements as a matter of priority.

Reply received: August 2012

QUESTION FOR WRITTEN REPLY
2152. Dr W G James (DA) to ask the Minister of Trade and Industry:


(1) Whether his department provided letters of support to any private companies (a) in the (i) 2009-10, (ii) 2010-11 and (iii) 2011-12 financial years and (b) since 1 April 2012; if not, in respect of each specified year, why not; if so, in respect of each letter of support provided, (aa) what is the (aaa) name, (bbb) designation of the person who provided the letter, (ccc) name of the company, (ddd) date of issuance and (eee) justification for issuance of the specified letter;

(2) whether his department exercised a due diligence on each company before providing a letter of support; if not, why not, in each case; if so, what are the relevant details in each case? . NW2673E

Response:

(1) Yes, the department has provided letters of support to private companies. These letters are made in support of proposed investments and are common practice as part of the promotion of fixed investment both domestic and foreign into SA.

For example in the automotive sector the dti has provided such letters of support to the Original Equipment Manufacturers (OEMs) as they bid for new investment projects in their global platforms on a 5 year cycle. The nature of such letters was to articulate government policy and the proposed architecture of the Automotive Production Development Program (APDP).

Such a letter provides clarity and certainty to the local operation to formulate the business case for South Africa to be a preferred location for a new investment project. These letters are non - binding as companies are still required to apply for relevant incentives and meet the stipulated guidelines and requirements.
As you know letters of this nature are confidential in terms of competitor business intelligence and it may mean getting consent from each company. This may be seen to be sensitive to companies and may jeopardise investment interactions in the future.

(2)In terms of investment proposals and business plans submitted, for example in the automotive sector the dti forms a project team which includes the various governmental departments, provinces and the development financial institutions with the OEM, understands the business case and works with relevant parties to eliminate the cost gap and project blockages.

Reply received: August 2012

QUESTION NO 2089

Mr M H Hoosen (ID) to ask the Minister of Trade and Industry:

What progress has been made with regard to balancing the trade deficit with the People's Republic of China with regard to increasing the exportation of value-added manufactured goods? NW2569E

REPLY:

In a follow up to the Comprehensive Strategic Partnership Agreement (CSPA) that was signed in August 2010 by President Zuma and President Hu Jintao, Deputy President Kgalema Motlanthe presented the list of South Africa's top ten value added products for export to Vice President of China in 2011. These products were then part of a South African two trade exhibitions that were held in Beijing and Shanghai in October 2011. According to information available, the exhibitions generated approximately R8 million of exports sales during the events, and approximately R400 million in export sales were committed for the 12 months after the exhibitions.

Reply received: August 2012

QUESTIONS 2085 FOR ORAL REPLY

2085. Mr M Swart (DA) to ask the Minister of Trade and Industry:

(1) Whether (a) he, (b) his Deputy Ministers and (c) any official from an entity reporting to him will be attending or attended, the 2012 Olympic Games; if so, what is the (i)(aa) name, (bb) rank and (cc) position/designation of each specified person accompanying (aaa) him, (bbb) his Deputy Ministers and (ccc) each specified person and (ii)(aa) nature and (bb) official reason for the visit;

(2) what (a) total amount will be spent or has been spent on the trip, (b) is the (i) description and (ii) detailed breakdown of the amounts that will be spent or have been spent on (aa) accommodation, (bb) travel and (cc) subsistence costs and (c) from which budget will these funds be incurred in each case?NW2565E

Response :

Neither the Minister nor any of my Deputy Ministers or officials of the Department of Trade and Industry attended the 2012 Olympic Games and hence no expenses were incurred by the dti in this regard.

Entities

(1)

(2)

Companies and Intellectual Property Commission (CIPC)

No official from CIPC attended the Olympic Games on behalf of the entity

Not applicable

Export Credit Insurance Corporation (ECIC)

No officials from the ECIC attended the 2012 Olympic Games

Not applicable

National Consumer Commission (NCC)

No one from NCC has attended the Olympics using the NNC's funds

Not applicable

National Credit Regulator (NCR)

No one from NCR attended Olympic Games 2012

Not applicable

National Credit Tribunal (NCT)

None of the officials of the National Consumer Tribunal attended the 2012 Olympic Games

Not applicable

National Empowerment Fund (NEF)

No member/staff of the National Empowerment Fund attended the 2012 Olympic Games

Not applicable. No travel costs nor any costs related to the 2012 Olympic Games has been incurred by the NEF

National Gambling Board (NGB)

The National Gambling Board (NGB) officials did not attend any of the 2012 Olympic Games

No amount of money has been or will be spent on the 2012 Olympic Games

National Lotteries Board (NLB)

The Chairperson and acting CEO of the National Lotteries Board, Prof N A Nevhutanda attended the opening ceremony of the 2012 Olympic Games

The cost for attendance was paid by SASCOC

National Metrology Institute Of South Africa (NMISA)

No officials of the attended the 2012 Olympic Games

No funds were utilized as no officials attended the 2012 Olympic Games

National Regulator For Compulsory Specifications (NRCS)

No official of the entity has attended the 2012 Olympic Games

Not applicable

Small Enterprise Development Agency (seda)

No official or employee of seda attended the 2012 Olympic Games

Not applicable

South African Bureau Of Standards (SABS)

No officials from the SABS have attended the Olympic Games

No amount have been spent

South African National Accreditation System (SANAS)

Not officials of SANAS attended the Olympic Games

Not applicable

Reply received: August 2012

QUESTIONS 2052 FOR WRITTEN REPLY

2052. Mr M Waters (DA) to ask the Minister of Trade and Industry:

(1) What are the different categories of organisations that the National Lottery allocates funding to;

(2) what (a) amount was allocated to each such category in each year and (b) percentage does this represent of all income for the National Lottery since its inception;

(3) what amount was not allocated to any organisations in each year since the inception of the National Lottery;

(4) who determines the policy that dictates what amount should be allocated to each category of organisations? NW2532E

RESPONSE:

According to the National Lotteries Board (NLB):

(1) In line with the provisions of section 26 of the National Lotteries Act, 57 of 1997, funds are allocated for expenditure relating to charities, the development of sport and recreation, arts, culture and the national historical, natural, cultural and architectural heritage, any related projects and for miscellaneous purposes.

(2)

Charities

Sport and Recreation

Arts, Culture and National Heritage

Miscellaneous Purpose

Year

Amount Allocated in Millions

%

Year

Amount Allocated in Millions

%

Year

Amount Allocated in Millions

%

Year

Amount Allocated in Millions

%

2001

0

0

2001

0

0

2001

0

0

2001

0

1

2002

103

67

2002

72

73

2002

48

49

2002

0

0

2003

344

93

2003

211

94

2003

171

76

2003

10

20

2004

613

103

2004

252

69

2004

375

103

2004

17

21

2005

505

66

2005

389

104

2005

310

65

2005

0.6

0.8

2006

626

77

2006

410

103

2006

229

45

2006

9

10

2007

428

45

2007

118

25

2007

235

39

2007

0

0

2008

380

40

2008

422

92

2008

170

29

2008

1

1

2009

565

37

2009

597

80

2009

263

28

2009

127

60

2010

1402

73

2010

649

69

2010

1231

103

2010

119

79

2011

1661

123

2011

665

100

2011

767

91

2011

47

53

2012

798

100

2012

389

100

2012

459

93

2012

1

1

(3)

Arts, Culture & National Heritage

Charities

Miscellaneous Purposes

Sport and Recreation

Year

Unallocated

R millions

Unallocated

R millions

Unallocated

R millions

Unallocated

R millions

2001

0

0

425

0

2002

51

51

22

27

2003

54

24

41

14

2004

-11

-18

66

112

2005

164

257

84

-16

2006

278

189

80

-12

2007

363

534

0

352

2008

417

563

0

38

2009

687

962

169

149

2010

-40

510

86

286

2011

76

-307

31

0

2012

37

0

42

0

(4) The Minister of Trade and Industry determines the percentage that will be available to each sector. This is based on the recommendations from the National Lotteries Board. The recommendations of the NLB are based on the number of applications received in each of the sectors.

Reply received: August 2012

QUESTIONS 2013 FOR WRITTEN REPLY

DUE DATE: 15 AUGUST 2012

QUESTION 2013:

Mr G B D McIntosh (Cope) to ask the Minister of Trade and Industry:

Whether any disciplinary action will be taken against officials who were found to be involved in garnering active support relating to the Iran sanctions-busting business development with a certain company (name furnished); if not, why not; if so, what action? NW2489E

RESPONSE:

Yes, the dti has initiated a formal disciplinary process against the official responsible for issuing a letter of support.

Reply received: August 2012

QUESTION FOR WRITTEN REPLY
1985. Mr S C Motau (DA) to ask the Minister of Trade and Industry:

Whether any entity reporting to him has budgeted for (a) financial donations or (b) sponsorships in the (i) 2009-10, (ii) 2010-11 and (iii) 2011-12 and (iv) 2012-13 financial years; if not, why not; if so, in each case, what amount was (aa) budgeted and (bb) spent? NW2374E

Response

(a) Financial Donations


Entities

(a)

(a)(i)

(a)(ii)

(a)(iii)

(a)(iv)

Companies and Intellectual Property Commission (CIPC)

The CIPC did not budget for any financial donations for the 2012/2013 financial year. CIPC did not receive any requests for financial donations. Should requests be received during the financial year it will be considered for possible inclusion in the adjustment budget for the year.

None

None

None

None

Export Credit Insurance Corporation (ECIC)

No financial donations were budgeted for.

None

None

None

None



Entities

(a)

(a)(i)

(a)(ii)

(a)(iii)

(a)(iv)

National Consumer Commission (NCC)

The NCC did not budget for any donations

National Credit Regulator (NCR)

The NCR did not budget for any financial donations

None

None

None

None

National Credit Tribunal (NCT)

The NCT did not budget for any financial donations

None

None

None

None

National Empowerment Fund (NEF)

The NEF has not budgeted for, nor given any financial donations in any of the financial years mentioned above

None

None

None

None

National Gambling Board (NGB)

The NGB did not make any financial donation, however donated a printer to Eureka Primary School some years ago. As part of its social responsibility and a way of contributing to the betterment of education in the country. NGB budgets and pays for the maintenance of the printer as follows:

(aa) Budget

R11,716

R10,312

R14,436

R14,585

(bb) Actual

R10,893

R12,744

13,427

R3,646

National Lotteries Board (NLB)

Financial donations are not specifically budgeted for since the nature of the business of the National Lotteries Board is one of grant making to NGOs based on application submitted for funding

None

None

None

None



Entities

(a)

(a)(i)

(a)(ii)

(a)(iii)

(a)(iv)

National Metrology Institute of South Africa (NMISA)

The NMISA did not budget for financial donations, as it has no reasonable method of projecting receipts in-kind.

None

None

None

None

National Regulator For Compulsory Specifications (NRCS)

The NRCS has not budgeted in 2009/2010, 2010/2011, 2011/2012 and 2012/2013 for financial donations. The NRCS was experiencing cash flow problems when budgeting was done and therefore there were no additional funds as per budgeting.

None

None

None

None

Small Enterprise Development Agency (seda)

Seda did not budget for financial donations or sponsorships because it is not in Seda's mandate.

However Seda buy /breakfast / gala dinner tables (of ten) for networking purposes or in support of events that develop and support small business

None

None

None

None

South African Bureau Of Standards (SABS)

As part of its Corporate Social Investment strategy, the SABS has budgeted for and spent as follows

(aa) Budget

R 1000 000

R 100 000

R 1000 000

R 1 000 000

(bb) Actual spend

R 190 427.78

R 924 326.72

R 677 587.27

R 200 000

South African National Accreditation System (SANAS)

SANAS budgets a combined figure for financial donations and sponsorships



Entities

(a)

(a)(i)

(a)(ii)

(a)(iii)

(a)(iv)

(aa) Budgeted

R40,000

R100,000

R100,000

R100,000

(bb) Actual spent

R2,321

R89,191

R47,344

R20,100 to date

Reply received: August 2012

QUESTION 1934 FOR WRITTEN REPLY

1934. Mrs P C Duncan (DA) to ask the Minister of Trade and Industry:

(1) What are the current reasons for refusing the application made for funding by the Con Amore School for mentally challenged children;

(2) what amount (a) did Con Amore School apply for during the past three application periods and (b) was allocated to them, in each case?NW2323E

RESPONSE:

According to the National Lotteries Board (NLB):

(1) Any non-profit organization (NPO), including Con Amore School, which applies for funding to the NLB, is required to provide the NLB with a constitution. The constitution must include a dissolution clause that would regulate the distribution of its assets in the event the NPO shuts down operations. The constitution submitted by Con Amore School with its application of 27 November 2009 did not include this clause. The NLB requested the said information in June 2010. A deadline was provided within which the outstanding information was to be submitted. The applicant, in this case, failed to submit the said information. Hence, the application was declined.

(2) Only one application was received from Con Amore School in November 2009 in terms of which it applied for funding in the sum of R 470 913.00. This application was declined for the reason cited in (1) above.

Reply received: August 2012

QUESTION 1932 FOR WRITTEN REPLY

1932. Mrs P C Duncan (DA) to ask the Minister of Trade and Industry:

1) With regard to the reply to question 991 of 2012, how many applications must still be considered;

(2) whether all the applicants received 100% of their funding requests; if not, how many received funding of between (a)(i) 80% and 99%, (ii) 60 and 79%, (iii) 51% and 59% and (iv) 35% and 50% and (b) less than 35%; if so, how many received 100% of their funding requests;

(3) what were the specific dates on which the Charities Distribution Agency members met to adjudicate on applications for funding;

(4) whether he will now provide the attendance of each meeting; if not, why not;

(5) when will the next call by the National Lotteries Board to the charity sector for funding applications be made? NW2321E

RESPONSE:

According to the National Lotteries Board (NLB):

(1) There were 1368 applications still to be considered as at 31 July 2012.

(2) Not all applicants received 100 % of their funding request.

01 April 2011 – 31 March 2012

(a) i) funding between 80 – 99 % 96 organisations

ii) funding between 60 – 79 % 155 organisations

iii) funding between 51 – 59 % 93 organisations

iv) funding between 35 – 50 % 235 organisations

(b) Less than 35 % allocated 778 organisations

100 % funding allocated 86 organisations

01 April 2012 – 03 August 2012

(a) i) funding between 80 – 99 % 46 organisations

ii) funding between 60 – 79 % 68 organisations

iii) funding between 51 – 59 % 44 organisations

iv) funding between 35 – 50 % 113 organisations

(b) Less than 35 % allocated 439 organisations

100 % funding allocated 24 organisations

(3) The question does not specify the period in which it relates. So, for the previous financial year, (i.e. 01 April 2011 to 31 March 2012) the specific dates on which Charities Distribution agency met to adjudicate applications are as follows:

April: 7,8,9,14,15,16,28,29,30

May : 05,06,07,14,19,20,25,26,27,28

June: 2,3,4,9,10,11,17,18,23,24,30

July: 1,2,6,7,8,9,29

August: (from end July 2011 until end of August 2011 ratification was done by the NLB Board). 4,10,11,12,16,17,18,23,25,29

October: 6,7,14,20,21,27,28

November: 9,11,12,16,17,18,24,25

December: 1,2,13,14

January: 9,10,11,12,13,20,26,27

February: 2,3,10,16,17,23,24,28,29

March: 1,2,7,8,9,13,14,16,23

(4) Attendance of each meeting can be provided upon request.

(5) The next call will be after the applications for the previous call have been finalized.

Reply received: August 2012

QUESTION: 1873

Mrs J D Kilian (Cope) to ask the Minister of Trade and Industry:

(1) How many employees in his department in the post level of deputy director to director-general who have been appointed on a (a) permanent and (b) contract basis (i) have been suspended on full salary pending investigations or disciplinary action for periods exceeding three months, (ii) have resigned before the relevant investigations or disciplinary actions were concluded and (iii)(aa) have been found guilty of gross financial misconduct or negligence and dismissed and (bb) were dismissed following due process and disciplinary hearings in the (aaa) 2009-10 and (bbb) 2010-11 financial years;

(2) what total amount was paid in salaries and benefits to the employees while they were suspended;

(3) whether his department has laid criminal charges against any persons following investigations or disciplinary hearings where fraud or corruption was found to have taken place; if not, why not; if so,

(4) whether, subsequent to the specified findings of fraud and corruption, any amounts have been recovered in terms of the relevant provisions of the Public Finance Management Act, Act 1 of 1999; if so, what amounts; if not,

(5) how does he intend to comply with national legislation which was promulgated to prevent corrupt practices and compel authorities to report corrupt practices to law enforcement agencies?NW2261E

RESPONSE:

(1)

No

(aaa) 2009/2010

(bbb) 2010/2011

(a)

Permanent

(b)

Contract

(a)

Permanent

(b)

Contract

(i) Suspended with full salary

3

0

4

0

(ii) Resigned before investigation

2

0

3

0

(iii)(aa) Found guilty

0

0

0

0

(iii)(bb) Dismissed before due

process

0

0

0

0

(2) The total amount that was paid in salaries and benefits to the employees while they were suspended for the 2009/2010 and 2010/2011 financial years is
R2, 178,630.60.

(3) As none of the abovementioned suspension cases for the 2009/10 and 2010/11 financial years relate to fraud and corruption, hence no criminal charges were laid.

(4) As none of the abovementioned suspension cases for the 2009/10 and 2010/11 financial years relate to fraud and corruption, hence no recoveries in terms of the Public Finance Management Act, 1 of 1999 can be effected.

(5) The Department is already complying with legislation in terms of investigating all allegations of fraud and corruption. A forensic audit process and procedure has been established in the Department. All confirmed fraud and corruption matters are reported to the SAPS and are tracked on a register.

Reply received: August 2012

QUESTION 1861 FOR WRITTEN REPLY

1861. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(1) Whether Government is the full copyright holder of (a) the national anthem, (b) the national flag, (c) the national coat of arms and (d) any other national symbol; if not, (a) why not and (b) who is the copyright holder for each of these symbols; if so,

(2) what measures have been instituted to (a) protect these symbols and (b) prevent exploitation for commercial use? NW2253E

RESPONSE:

(1) The national anthem was commissioned by the state and by right,isowned by the state. The anthem in use, was officially adopted as the national anthem of South Africa by the then President of South Africa, Nelson Mandela, through Proclamation No. 68 in Government Gazette dated 10 October 1997. The proclamation states that "Anyone who wishes to use or adapt the National Anthem in any way whatsoever should make application to the State Herald in advance".

All other national symbols have a copyright element in them and these are also owned by the state. If anyone wishes to use these symbols, permission must be sought from the Departments of Trade and Industry or Arts and Culture or from the Presidency, depending on the type and intended use of the symbol.

(2) The Department of Trade and Industry has a draft Intellectual Property Policy in place which addresses the issues raised. Once the policy is approved, the dtiwill table it before Cabinet for approval and then undertake wider public consultations.

The intended measures for the protection of national symbols and the prevention of exploitation of these symbols by commercial use are that:

Government will compile a database of all intellectual property owned by the state through various means, for example, copyright, heraldic, cultural, and agricultural legislation. Thereafter,Government will determinethe criteria and mechanism/s for regulating commercial use of its intellectual property. The Merchandise Marks Act provisions will be used to protect state symbols nationally, whereas,the provisions of Article 6ter of the Paris Convention will be used to protect national symbols internationally.

It is expected that various intellectual property and cultural legislation will require amendment in order to ensure protection of state emblems.

The South African Government may consider persuading the African Region to adopt international procedures used for the protection of state emblems and encourage other countries to reciprocate in this regard. Currently, South Africa unilaterally prohibits the use of state emblems of member states.

Reply received: August 2012

QUESTION 1770 FOR WRITTEN REPLY

1770. Mr S Mokgalapa (DA) to ask the Minister of Trade and Industry:

(1) Whether (a) his department and (b) all entities reporting to him make payment to (i) suppliers and (ii) service providers within the 30 day payment period as specified by the Public Finance Management Act (PFMA), Act 1 of 1999; if not, in each case, (aa) how many service providers are awaiting payment, (bb) what is the monetary value of outstanding payments and (cc) how long is payment overdue;

Response:

(1) The Department of Trade and Industry complies with the requirement of Treasury Regulation 8.2.3 and the Public Finance Management Act (PFMA), Act 1 of 1999 of paying creditor invoices, court judgments and interdepartmental claims within 30-days of receiving invoices, claims or court rulings. For the 2011/12-financial year, the dti has paid 92% of 31 982 creditor invoices within 14-days, with the remainder being paid within 30-days of the receipt of invoices. Similar turnaround times are being maintained for the current 2012/13-financial year. There are currently no suppliers or service providers that are awaiting payment on invoices older than 30-days. See attached tables

(2) whether (a) his department and (b) all entities reporting to him are liable for any interest charged on overdue payments in any of the cases mentioned; if not, what is the position in this regard; if so, in each case, what is the (i) percentage and (ii) monetary value of interest charged;

Response:

(2) In lieu of (1) above, no interest has been charged or is owed by the dti on any late payments see attached.


(3) whether (a) his department and (b) all entities reporting to him have negotiated revised payment schedules with each of the service providers mentioned; if not, why not; if so, in each case, what are the relevant details;

Response:

(3) In lieu of (1) above, there is no need for the dti to negotiate revised payment schedules with any of its service providers see attached answers.

(4) what are the reasons for (a) his department and (b) all entities reporting to him not making payment within 30 days as specified by the PFMA;

Response:

(4) Identified exceptions relate mainly to pending verifications of bank account details on the Safetynet- system of National Treasury, or incomplete payment documentation such as outstanding or lapsed tax clearance certificates. See attached.

(5) whether (a) his department and (b) all entities reporting to him have implemented any measures to (i) ensure full compliance with the PFMA and (ii) facilitate immediate payment for overdue accounts; if not, why not; if so, in each case, what are the relevant details?

Response:

(5) the dti is using a system-based CFO Helpdesk whereby all payment transactions are being received and recorded at a central point in the Department, then assigned to relevant staff for payment, and tracked in respect of response handling. The tracking of payments is based on turnaround times that have been determined for the different types of payments, with all cases where such turnaround times are being exceeded being investigated and addressed by senior management using exception reports generated by the system for such purpose. This process ensures that the majority of payments are finalized within 14-days see attached table.

See attached ECIC Annexure

Reply received: June 2012

QUESTION 1565 FOR WRITTEN REPLY

1565. Dr W G James (DA) to ask the Minister of Trade and Industry:

(1) What is the (a) total cost budgeted for the trip to Japan to promote trade and investment ties, (b) breakdown of the budget in terms of (i) flights, (ii) hotel accommodation, (iii) security and (iv) all other costs associated with the trip;

(2) what (a) are the names of the (i) officials and (ii) delegation who partook in the visit, (b) is the (i) nature of their involvement and (ii) reason for accompanying him and (c) criteria were used in selecting the delegates? NW1888E

Reply:

(1) (a), (b): (i), (ii), (iii), (iv) and (2): (a), (i) and (ii); (b): (i) and (ii); (c)

During June 2011, Minister Nkoana – Mashabane, Minister of International Relations and Cooperation signed a technical cooperation agreement with Japan and South Africa elevating the relationship to a Strategic Partnership with Japan. Japan is a top 5 trade and investment partner to South Africa with active investments by over 100 Japanese companies. This visit built on the work of the Minister of International Relations and Cooperation and is in line with the dti strategy of working in high growth markets of the ASEAN region, Africa, BRICS and GCC, bearing in mind the challenging stagnant trading conditions being experienced with our traditional trading partners. The programme involved a focussed investment recruitment drive as well as establishing instruments for the deepening of the bilateral economic relationship with Japan. The Ministerial visit entailed 22 engagements which included a bilateral meeting with Minister Yuko Edano, Minister of Economy, Trade and Industry, meetings with key corporate investors, banks and financial institutions, trading houses, Japan External Trade Organisation (Jetro), the most powerful Japanese Business Federation (Keidandren), the South Africa Japan Chamber of Commerce, a key note address at the SADC Manichi Forum and a media program to raise the profile of South Africa in the Japanese Media.

Key outcomes included raising South Africa's profile as an investment destination, as evidenced by commitments from Japanese corporates to increase existing investment and potential new investment in South Africa and the continent. Significantly and without exception, Japanese companies expressed keen interest and willingness to collaborate in areas of technology transfer, skills development, localisation and funding of infrastructure projects. The meeting program of Government, Corporate. Investors, Banks and Financial institutions, Trading houses, Chambers, Importers and Media required specialised and technical input from dti officials. In addition to the Ministerial program officials had separate meeting programs to follow up on a number of bilateral issues. Furthermore the Terms of Reference on a key joint study on economic cooperation were signed by Minister Davies and Minister Edano of Japan. Officials also met the Japan Productivity Centre to explore technical cooperation and skills development and automotive component companies who have expressed an interest in investing in South Africa.

The costs associated with this work is set out below:

(i) Flights - R 486 000.00

(ii) Hotel accommodation - R 203 903.00

(iii) Security – no costs

(iv) All other costs associated with the trip – Ground transport

R 147 048.00 Official Delegation –

Minister: Dr Rob Davies

Spouse Mrs. Grace Davies

Chief of Staff: Mr Moosa Ebrahim

CD: Investment Promotion & Facilitation (TISA) Mr Yunus Hoosen

CD: Automotives (IDD) Mr Mkululi Mlota

CD: Media Mr Sidwell Medupe

Director: Asia Desk (ITED) Mr Phillip Mtsweni

Deputy Director: Asia Desk (ITED) Ms Mankaleme Letswalo

Deputy Director: Manufacturing Investment (TISA) Mr Sake van der Wal

A business delegation did not accompany Minister Davies on this visit. However, Japanese Parent companies invited their local South African CEOs to participate in the relevant meetings.

Reply received: June 2012

QUESTION 1614 FOR WRITTEN REPLY

1614. Mr A Watson (DA) to ask the Minister of Trade and Industry:

Whether any traffic fines were incurred with regard to any of his official vehicles in the (a) 2009-10, (b) 2010-11 and (c) 2011-12 financial years; if so, what (i) amount in fines was incurred in respect of each specified vehicle in each specified financial year and (ii) are the further relevant details in each case? NW1943E

Response:

(a) (b) (c) (i) (ii)

No traffic fines were incurred with regard to any of Minister Davies' official vehicles in the (a) 2009-10, (b) 2010-11 and (c) 2011-12 financial years.

Reply received: June 2012

QUESTION 1556 FOR WRITTEN REPLY

1556. Dr W G James (DA) to ask the Minister of Trade and Industry:

With reference to the manufacturing competitiveness enhancement programme (MCEP) costing R5,8 billion for manufacturers who are in distress from the effects of the global financial crises, (a) how much, (b) to whom and (c) when will or were funds paid in respect to any one or a combination of the categories (i) production support mechanisms, (ii) loans, (iii) equity injection, (iv) working capital support, (v) restructuring assistance, (vi) support for acquisition of fixed assets, (vii) investment initiatives to enable the firms to address improved sales, (viii) job preservation and expansion, (ix) income support for employees, (x) layoff support and similar measures, as specified in the Budget Vote of his department of 18 May 2012?NW1876E

Response

The Manufacturing Competitiveness Enhancement Programme (MCEP) is aimed at enhancing the competitiveness of manufacturers in more value-adding sectors. It is comprised of a Production Incentive managed by the Department of Trade and Industry and an Industrial Financing Loan Facility managed by the Industrial Development Corporation (IDC).

The Production Incentive, which encompasses support for acquisition of fixed assets; investment initiatives to enable firms to address improved sales; restructuring assistance to improve the competiveness of the enterprise and job preservation and expansion; opened for applications on the 4th June 2012. It is expected that most of the funds available for this component will be disbursed from the last quarter of the financial year.

The Industrial Financing Loan Facility, which includes working capital support and equity injection for niche industrial policy projects is expected to receive applications from the 1st July 2012 and will account for the bulk of the expenditure in this financial year, allowing for immediate support for companies that are affected by the adverse economic climate and have potential to improve their competitiveness.

Reply received: June 2012

QUESTION 1503 FOR WRITTEN REPLY

1503. Mr J F Smalle (DA) to ask the Minister of Trade and Industry:

(1) Whether the National Lotteries Board (NLB) has a procedure manual stipulating criteria for determining and awarding the allocation of funds to applicants; if not, why not; if so, when was it (a) approved and (b) last reviewed;

(2) what criteria are used to determine the validity of applications for funding to the NLB? NW1759

RESPONSE:

According to the National Lotteries Board:

(1) Yes

(a) Signed by Minister of Trade and Industry on 06.09.2011

(b) It has not been reviewed since.

(2) In order for applications to be deemed valid by the NLB, applicants are required to complete and submit a prescribed application form together with the following attachments:

i) Organisational founding documents (this requirement is applicable to organisations that have not previously been funded by the NLDTF or if the objectives of the organisation have since changed). These would include:

- Constitution / Articles and Memorandum of Association / Trust deed;

- Institutions that are established by an Act of Parliament must only cite the enabling Act;

- non-profit organisations, for example, Section 21 companies, Public Benefit Trusts and Schools registered with the Department of Education (except Private Schools),must submit proof of registration;(Municipalities and Tertiary Institutions are excluded from this requirement but must cite the enabling Act);

ii) Detailed project/ business plan;

iii) Detailed project budget (it must consist of specific line items with unit costs, quantities, total cost per item);

iv) Project motivation;

v) Most recent annual financial statements of the applicant organisation:-

- One year statements for organisations that have previously received funding from NLDTF;

- Two consecutive years statements signed by a registered and independent Accounting Officer or an Auditor in the case of organisations that have not been previously funded by the NLDTF;

vi) Signed audit/ accounting officer's report;

vii) Approval from relevant provincial or national authority if the application is for development/renovations to a declared heritage site;

viii) Certified copies of SA ID Documents for two contact persons as well as the management committee of the organisation.

Reply received: June 2012

QUESTIONS 1383 FOR WRITTEN REPLY

1383. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(1) What total cost was incurred by his department to publish a double-page full-colour advertisement in a certain magazine (name furnished);

The total cost for placement of the referred advertisement in New Agenda magazine is R37 620-00. The magazine has proved to be a relevant platform in so far as impact and reach are concerned, particularly for the department's stakeholders in Parliament, organised business and labour. These stakeholders or readers are very important to the dti as they also serve as message carriers for their respective constituencies.

(2) who initiated the placement of the advertisement;

All recommendations and decisions regarding communication and marketing, including advertising are initiated and approved by the Head of Communication and Marketing, in consultation with relevant programme or project managers.

(3) whether his department has an established policy which guides its decision-making in terms of where adverts are placed; if not, why not; if so, what are the relevant details?

the dti has an established advertising policy that informs the choice and placement of messages in various media. The placement decisions are informed by the type of message, scope and readership/listenership of communication platform, distribution points, and cost.

Reply received: June 2012

Question 1339

Mr J F Smalle (DA) to ask the Minister of Trade and Industry:

(1) Whether there were any arrangements agreed to between concerned stakeholders and the National Lottery Board that all backlogs pertaining to applications for the 2011-12 financial year will be finalised by the end of February 2012; if not, why not; if so, what are the relevant details;

(2) whether the appeal processes of declined applications for the 2011-12 financial year have been revised; if not, why not; if so, what are the relevant details;

(3) (a) how many appealed applications are currently outstanding and (b) when will this process be concluded? NW1474E

Response:

According to the National Lotteries Board:

(1) No arrangements have been entered into between the National Lotteries Board (NLB) and its stakeholders relating to the backlog.

However, the NLB has initiated processes to speed up the processing and adjudication of applications. The Charities sector received 8 500 applications by 25 March 2011 deadline for applications and the Arts, Culture and National Heritage sector received 1 700 by the 29 April 2011 deadline. This is equivalent to approximately twice the number of applications received from the previous calls.

In order to deal with the backlog, the DA members (who are appointed on a part time basis)are meeting more frequently to adjudicate on applications. By the end of the 2011/2012 financial year, approximately 6500 of the Charities applications have been adjudicated upon. Whereas in the Arts, Culture and National Heritage sector, 1 100 applications had been adjudicated upon.

This intervention has resulted in an improvement on turnaround times.

(2) The legislation makes no provision for an appeal process. Currently, appeals from unsuccessful applicants are considered by a sub-committee of the NLB. If the sub-committee declares that there is merit in the appeal, the relevant Distributing Agency is required to re-consider the application.

(3)(a) The number of appeals referred by the sub-committee to the DA's that are outstanding is 43.

(b) It is envisaged that the process will be finalised in the next three months, as site visits are required in certain matters.

Reply received: May 2012

Question 1111

Mr J J van der Linde (DA) to ask the Minister of Trade and Industry:

(1) (a) What are the (i) yearly rental and (ii) floor space of the (aa) current and (bb) previous premises occupied by his department's head office and (b) when (i) was the current building occupied and (ii) does the current lease expire;

(2) whether his department publicly invited tenders prior to the leasing of the current premises; if not, why not; if so, (a) when, (b) where was it published and (c) which (i) companies and (ii) properties were shortlisted;

(3) what (a) floor space was offered and (b) annual rental was tendered (i) by each shortlisted company and (ii) with regard to each shortlisted property? NW1299E

Response:

(1)

(aa) Current head office premises (the dti campus)

(bb) Previous (prior to 2004)

(a) (i) Rental

R180.18m [2011/12] CPI indexed - PPP

Unknown - NDPW process

(a) (ii) Space gross

35 183m2

Unknown - various buildings e.g. House of Trade and Industry, Fedlife and Zanza

(b) (i) Date occupied

May 2004

(b) (ii) Date expiry

PPP expires in August 2028

(2) Yes; public tenders were invited prior to the procurement via PPP of the building. The PPP project was initiated during 2001/02 and public requests for proposals were invited at the time inclusive of Treasury approval. The PPP contract commenced August 2003; details of the PPP acquisition process are therefore not readily available, being outside the retention of records' period.

(3) The information requested is outside the retention period and therefore not readily available.