Questions & Replies: Trade & Industry

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2012-11-30

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Reply received: May 2012

QUESTION 991 FOR WRITTEN REPLY

991. Ms E More (DA) to ask the Minister of Trade and Industry:

(1) Whether there is any deadline by which the National Lotteries Board (Lotto Board) is supposed to complete the processing of applications for funding; if not, why not; if so, what is the deadline;

(2) whether the Lotto Board has met to process funding applications that had to be submitted on or before 25 March 2012; if so, (a) on which dates did the board meet, (b) when did the meeting (i) start and (ii) finish on each date, (c) who attended each meeting and (d) how many applications were finalised at each meeting;

(3) (a) on what date was the first application received in respect of the 25 March deadline and (b) what was the total number of applications received at the end of each week thereafter? NW1170E

Response:

According to the National Lotteries Board:

(1) The National Lotteries Board (NLB) places calls for applications. These applications are then adjudicated upon by the respective appointed Distributing Agencies. The call for applications is normally made once the Distributing Agencies have indicated on the progress of applications currently under adjudication. Although timeframes are estimated for the finalization of applications the Agencies are unable to adhere to this in all instances. The members of Distributing Agencies serve on a part- time basis and the volume of applications being received has increased. The NLB strives to finalise applications within 18 months.

However, various improvements have been made recently which have resulted in an improvement in the turn- around times.

(2) The last call for applications made by the NLB for the charities sector closed on 25 March 2011. No call was made that ended in March 2012. With regard to the call that ended on 25 March 2011, in total, 8,485 applications were received.

(a) With regard to the 25 March 2011 call for applications:

The adjudication on these applications commenced on 19 May 2011. The Charities Distributing Agency members (CDA) have not adjudicated on all matters thus far. Since 19 May 2011 up to April 2012, seventy two days were set aside for meetings. These meeting were initially taking place every second week. However, with the appointment of the new CDA members, meetings are now being held for two days every week, as from October 2011.

The CDA has adjudicated over 6,884 applications since May 2011 to date, Approximately 2,000 charities applications are outstanding.

(b) (i) & (ii) The meetings normally start from 08h30 and last until approximately 17h00.

(c) Attendance is dependent on availability of members. The attendance registers for these meetings are attached.

(d) The target for every two-day meeting is one-hundred (100) applications.

(3) (a) The first application was received on 16 February 2011. This application was from Obakeng Old Age Home (#49577). It was adjudicated on 25 May 2011.

(c) The number of applications for the March 2011 call had more than doubled when compared to the previous call. More than half of the 8,485 charities applications were received during the last two weeks of the call for applications.

Reply received: May 2012

QUESTION 974FOR WRITTEN REPLY

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

What was the cost to his department 10 lake part in applying to review and set aside the Competition Tribunal's approval of the Walmart-Massmart merger?

REPLY

The legal costs incurred to date by government as a result of its participation in the appeal and review proceedings before the CAC, amount 10 approximately R 4, 1 million. It IS not possible to separate outline costs only for the appeal, since the work conducted by the lawyers covered both the review and appeal processes in what was essentially a single matter at the CAC. These costs aredivided equally between three departments andinclude costs related to the appointment of two senior counsels, junior counsel, an expert economist on competition, a team of attorneys specialising in competition law and other disbursements incidental thereto. the dti's share to date of the costs for the review and appeal to the CAC is therefore approximately R1,4 million.

Reply received: May 2012

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

QUESTION FOR WRITTEN REPLY

1. Whether multipliers were used to determine sales credits for

(a) BAE/Saab. (b) German Frigate Consortium. (c) German Submarine Consortium. (d) Thales, (c) Augusta and (f) Augusta/Westland under the National Industrial Participation Programme for the Strategic Defence Procurement Packages if not, why not: if so, in each specified case, what (i) is the (aa) project name. (bb) product or (cc) service sold and (ii) was the value of the (aa) actual sales and (bb) multiplier:

2. Whether the sales credit was determined by using (a) actual or (b) projected sales: if not, what is the position in this regard: if so, what are the relevant details? NW I 146E

I. The attached spread sheet, showing the NIPP projects of the SDP obligors mentioned in 1 (a) to 1 (f), provide details where NIPP credit multipliers were used to determine a package of NlPP credits applicable to each of the approved NIPP projects. These 'package deals', as well as the split between investment and sales credits were negotiated on a case by case basis, and were linked to specific investment amounts.With the investment being the trigger for N IPP credits. Both investments and sales credits were awarded immediately after the investment was made.

2. With the exception of the "package deal" arrangements explained in (1) above, all other sales credits are determined using actual performance as basis for the award of credits. Since NIPP credits arc awarded post facto, all sales credit claims are submitted with the relevant sales invoices and export documents providing proof of actual sales before credits are awarded.

3. As communicated to the Trade and Industry Portfolio Committee, the DTI will commence in the 2012/13 financial year with a detailed review of all NIPP projects to make an independent assessment of the actual economic value generated by these projects, with the component SDP projects to be completed by the end of the financial year. The Portfolio Committee will be briefed on the findings on this new project.

Here are the tables: http://www.pmg.org.za/files/questions/RNW970-120511.pdf

Reply received: May 2012

QUESTION 925

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

Why was the Memorandum of Understanding between his department, represented by a certain person (Ms Pumla Ncapayi ) and the Fresh Produce Exporters Forum, represented by a certain person (name furnished), not honoured, resulting in the withdrawal of South African fruit exporting companies from the Berlin Fruit Logistica 2012? NW1107E

Response:

Fruit Logistica, a fresh produce trade show held annually in Berlin Germany, was included on the dti's approved National Pavilion list for 2011-12 as a Mini-Pavilion. There is a joint responsibility for organizing a Mini Pavilion between the relevant Export Council, in this case the Fresh Produce Exporters Forum (FPEF), and the dti.

The FPEF did not honour the condition of the agreement under which the Mini Pavilion was approved, which was that the FPEF was to recruit emerging exporters and SMMEs to exhibit at the Mini Pavilion. The FPEF was to prepare and distribute an invitation letter to companies inviting them to submit application forms to exhibit at the event. By the date on which the exhibition floor space had to be booked, only 2 applications to exhibit on the mini Pavilion (excluding that of the FPEF) had been provisionally approved by the dti and none of the 2 applications were from emerging exporters nor SMMEs.

In November 2011, the FPEF informed the dti that they had decided to withdraw from the agreement and indicated that they would arrange the exhibition stand on their own.

In order to ensure the participation of emerging exporters and SMMEs at Fruit Logistica exhibition, the dti organized a trade mission comprising of 7 emerging exporters and SMMEs to the Fruit Logistica exhibition, which provided these small firms with the opportunity to gain exposure and promote their products at the largest fresh produce exhibition. Positive feedback was received from the emerging exporters who attended the Fruit Logistica exhibition, all of whom were extremely satisfied with the service rendered by the dti.

Some of the outcomes of the trade mission for the emerging exporters to the Fruit Logistica exhibition were:

· 3 emerging exporters expected export orders totaling R6 million within one year from the trade mission;

· 4 emerging exporters should be exporting within the next twelve months;

· 10 trade leads were obtained from the trade mission; and

· the emerging exporters gained valuable market intelligence on packaging, quantities required, costing and pricing, the regulations and certification required as well as on alternative varieties of fresh produce which they could grow and export.

Reply received: May 2012

QUESTION 854 FOR WRITTEN REPLY

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

What steps has his department taken to protect consumers from persons and organizations that withhold their identity documents, social grant cards and bank cards?

Response:

The Department of Trade and Industry has established the National Credit Regulator (NCR) and the National Consumer Tribunal to implement the National Credit Act. No. 34 of 2005 '(Credit Act) In terms of the provisions of the Credit Act, consumers have the right to confidential treatment of their financial and personal information by credit providers, credit bureau and debt counselors.

Section 90 of the Credit Act specifically deals with this issue. The withholding of consumers identity documents, social grant cards and bank cards by credit providers or their agents is unlawful conduct.

The NCR has been working jointly with the South African Police Services (SAPS), the South African Social Security Agency (SASSA), the National Prosecuting Authority (NPA) and, in particular, with the Specialised Commercial Crimes Unit of the NPA. These agencies jointly participated in operations recently in the Northern Cape and Eastern Cape. The operations focused on illegal credit providers who were unlawfully retaining pension cards, bank cards, identity documents and Personal Identity Numbers (PIN) of their clients as surety for the debts. This action has resulted in prosecutions and convictions. The media releases issued by the NCR relative to these operations are attached hereto.

Moreover, section 40 of the Consumer Protection Act No 68 of 2008 (Consumer Act) regulates unconscionable conduct. The section provides that: a supplier or an agent of the supplier must not use physical force against a consumer, coercion, undue influence, pressure, duress or harassment, unfair tactics or any other similar conduct, in connection with any marketing of any goods or services supply of goods or services to a consumer.

It is also unconscionable for a supplier knowingly to take advantage of the fact that a consumer was substantially unable to protect the consumer's own interests because of physical or mental disability, illiteracy, ignorance, inability to understand the language of an agreement, or any other similar factor

The Department has established the National Consumer Commission to implement the Consumer Act.

Media Release

_____________________________________________________________________________

For Immediate Release March 2012

Joint SAPS, NCR & SASSA operation bears fruit

During October 2011 a joint two-day operation between the South African Police Service (SAPS), the National Credit Regulator (NCR), South African Social Security Agency (SASSA) and the National Prosecuting Authority (NPA) was undertaken to clamp down on credit providers who were still hell-bent on employing illegal bullying tactics against vulnerable and unsuspecting consumers.

The operation dubbed "Project Blitzkrieg" primarily focused on illegal credit providers who were unlawfully retaining pension cards, bank cards, identity documents and personal identity numbers (PIN) of their clients as surety.

The operation covered pension payout points in Zwide, Kwa Zakhele and Motherwell in Port Elizabeth in the Eastern Cape. Numerous arrests were made and over 60 pension cards were found in possession of the suspects and criminal cases were opened.

Adv. Zweli Zakwe, Acting Manager for Investigations & Enforcement at the National Credit Regulator says three of these criminal cases were finalized on 05th March 2012 in the Port Elizabeth Magistrates Court.

Zakwe says "in the first matter, Joyce Schritch pleaded guilty to five counts of contravention of Section 133 of the National Credit Act 34 of 2005 (retention of pension cards as a collection method) and was sentenced to a fine of R 5000 or 12 months imprisonment, wholly suspended for five years on certain conditions.

"In the second matter, Vusumzi Siphango pleaded guilty to 11 counts of contravention of Section 133 of the National Credit Act 34 of 200S (retention of pension cards as a collection method) and was sentenced to a fine of R 8000 or 12 months imprisonment wholly suspended for five years on certain conditions", he adds.

He further says "in the third matter, Nomabana Mkabana pleaded guilty to 14 counts of contravention of Section 133 of the National Credit Act 34 of 200S (retention of pension cards as a collection method) and was sentenced to a fine of R 10 000 or 12 months imprisonment wholly suspended for five years on certain conditions".

Zakwe says "the NCR appreciates the assistance of the Specialized Commercial Crimes

Unit of the NPA in finalizing these matters and ensuring that these illicit credit providers are

punished for their illegal activities".

"We also welcome the stiff sentences handed down by the court and we certainly hope that this will act as a deterrent for any other credit providers who are still retaining bank and/or pension cards as a collection method" adds Zakwe.

Virginia Petersen, CEO of SASSA says SASSA is in the process of issuing new biometrics based

cards for grant beneficiaries as part of its re-registration project. "This will make it more difficult for the cards to be retained by micro lenders. SASSA also wishes to commend our law enforcement agencies and the NCR for defending the poorest of the poor through law enforcement"

This is certainly not the last of our operations in this regard. During this month, two credit providers were arrested at a pension payout point in Jouberton near Klerksdorp in the North West Province, concludes Zakwe.

Ends

ISSUED BY: Thabile Ntuli

Bullion PR & Communication

Tel: (011) 426-9708

Cell: 083 386 0839

E-mail: thabile@buJlionpr.com

Website; www.bullionpr.com

ON BEHALF OF:

Lebogang Selibi

The National Credit Regulator

Tel: (011) 554 2722

Cell: 083 271 6851

E-mail; Iselibi@ncr.org.za

Website; www.ncr.org.za

&

Brigadier Lindela Mashigo

South African Police Service,

Cell: 082 778 4310

Email: lindela.mashigo@saps.org.za

&

Paseka Letsatsi

SASSA

Tel: (012) 400 2000

E-mail: PasekaL@sassa.gov.za

Media Release

_____________________________________________________________________________

For Immediate Release March 2012

National Credit Regular and SAPS clamp down on credit providers' illegal collection tactics A joint two day operation in the Northern Cape by the National Credit Regulator (NCR) and South African Police Services (SAPS) to clamp down on credit providers employing illegal bullying and collection tactics against vulnerable consumers has resulted in numerous arrests,

The operation dubbed "Project Blitzkrieg" primarily focused on credit providers (both registered and unregistered) who are unlawfully retaining pension cards, bank cards, identity documents and personal identity numbers (PIN) of their clients as surety", says Advocate Zweli Zakwe, Acting Manager for Investigations & Enforcement at the NCR. "This is a contravention of the National Credit Act (NCA)

The operation took place in De Aar. Petrusville, Noupool1 and Colesberg in the Northern Cape where searches were conducted on premises belonging to both registered credit providers and so called "skoppers"

Zakwe says this is part of the NCR's ongoing strategy to ensure that all credit providers. No matter where they conduct business, still comply with the provisions of the National Credit Act. "The exploitation of vulnerable and unsuspecting consumers by credit providers will not be tolerated", he adds.

A total of 15 people were arrested, of which eight were "skoppers" and seven were people working for credit providers. Police also found the suspects in possession of an accumulative number of over 577 pension cards, 114 10 books and 620 bank cards. Zakwe said the SAPS in the Northern Cape must be complimented for their excellent assistance they provided to the National Credit Regulator during this operation and their willingness to assist consumers.

"This was definitely not the first of its kind". "The NCR conducted a Blitzkrieg in Port

Elizabeth in October last year where three skoppers were prosecuted in March 2012. Such

operations will be extended to other parts of the country and credit providers are warned that

the National Credit Regulator will not condone these practices by credit providers".

concludes Zakwe.

Ends

_________________________________________________________________________________

ISSUED BY: BATHABILE NTULI

BULLION PR & COMMUNICATION

TEL: (011) 462-9708

MOBILE: (083) 386-0839

E-mail;thabite@bullionpr.com

On behalf of: Lebogang Setibi

National Credit Regulator

Tel: (011) 564-2272

NCR Call Centre: 0860 627 627

E-mail: Iselibi@ncr.org.za

WEBSITE: www.ncr.ora.za

I

Notes to the editor

Convictions which resulted from the Port Elizabeth Blitzkrieg:

• In the first matter. Joyce Schritch pleaded guilty to five counts of contravention of Section 133 of the National Credit Act 34 of 2005 (retention of pension cards as acollection method) and was sentenced to a fine of R 5000 or 12 months imprisonment, Wholly suspended for five years on certain conditions.

• In the second matter. Vusumzi Siphango pleaded guilty to 11 counts of contravention of Section 133 of the National Credit Act 34 of 2005 (retention of pension cards as a collection method) and was sentenced to a fine of R 8000 or 12 months imprisonment wholly suspended for five years on certain conditions.

• In the third matter. Nomabana Mkabana pleaded guilty to 14 counts of contravention of Section 133 of the National Credit Act 34 of 2005 (retention of pension cards as a collection method) and was sentenced to a fine of R 10 000 or 12 months imprisonment wholly suspended for five years on certain conditions.

Reply received: May 2012

QUESTION NO 807

DATE OF PUBLICATION: 23 April 2012

Mr L P Khoarai (ANC) to ask the Minister of Trade and Industry:

Whether, with regard to the R10 billion that has been set aside by the Industrial Development Corporation (IDC) for job creation any plans have been put in place to assist rural communities to benefit from this fund; if not, why not; if so, what are the relevant details?

NW798E

Reply

The R10 billion fund set up by the IDC (the "Gro-E" Scheme), was established in February 2011 to promote projects with a large jobs impact. The Fund is an investment fund which provides cheaper credit to qualifying projects.

As part of the new mandate of the IDC, it is expected to support the sectors identified in the New Growth Path, which include a focus on rural development and agro-processing. The Gro-E Scheme is one of a number of Funds available within the IDC to achieve this goal.

Twenty seven percent (27%) of the funding related to the Gro-E scheme that has been committed, is for projects located in rural areas. These investments include agriculture and agro-processing, mining, tourism and manufacturing enterprises.

Examples of such rural projects funded include citrus orchards in Limpopo; mixed farming, including melons and table grapes in the Northern Cape; a game lodge in the Eastern Cape; a dried fruit and nut processor as well as a protea farm in the Western Cape.

The type of impact that IDC has on impoverished rural areas can be demonstrated through the following examples.

A long-established citrus company in rural Limpopo faced challenges with aging trees and old processing equipment which hampered its ability to compete. It approached IDC to assist it to embark on a refurbishment of its processing plant as well as replanting some of its citrus orchards. It will create 580 jobs at a low cost per job as well as and sustain existing jobs which would have been lost otherwise.

A dried fruit and nut processor situated in Ceres in the Western Cape which supplies both domestic and international retailers saw an opportunity to increase its market share. It approached IDC to fund the required expansion and modernisation of its fruit drying and packaging capacity as well as working capital requirements. The expansion will directly create 59 jobs at the company, and the resulting increased demand from the fruit growing industry will see the development of a further 20ha of various orchards in the region.

These projects have a knock-on effect with each person employed being able to support a number of others and generating additional economic activity in rural areas.

In order to strengthen the outreach to rural areas, the IDC has established a wider network if branch and satellite offices and is expanding its capacity to support applicants in other ways.

The IDC currently has offices in the following areas; aside from its Sandton offices:-

IDC regional, branch and satellite offices

· Polokwane

· Thohoyandou

· Tzaneen

· Groblersdal

· Mbombela

· Emalahleni

· Secunda

· Rustenburg

· Brits

· Mafikeng

· Klerksdorp

· Vryburg

· Kimberley

· George

· Cape Town

· Pietermaritzburg

· Durban

· East London

· Port Elizabeth

· Manguang

The inexperience of prospective entrepreneurs in preparing business plans is an area that has been identified as a challenge. One of the services offered by IDC's offices, in some instances in collaboration with the Small Enterprise Development Agency (SEDA), is guidance with the preparation of such business plans.

The IDC has been requested to prepare further proposals on measures to strengthen the rural impact of its projects, by end June 2012.

Reply received: April 2012

QUESTIONS 802 FOR WRITTEN REPLY

802. Mr J H Steenhuisen (DA) to ask the Minister of Trade and Industry:

Whether any officials from (a) his department and (b) any entities reporting to him were on an official visit to Bloemfontein in (i) December 2011 and (ii) January 2012; if so, in each case, what (aa) is the (aaa) name and (bbb) position of the specified official, (bb) was the (aaa) purpose and (bbb) date of such visit and (cc) was the cost of (aaa) transport, (bbb) accommodation and (ccc) other expenses?NW973E

Yes, throughout the year officials are required to travel around the country for work. All the trips follow due processes within the department and its delegated structures. The costs of such trips are outlined in the dti's annual audited report. The figures for December 2011 and January 2012 are in the process of being verified given that the current financial year end is on 31 March 2012. These figures will appear in the annual reports covering the period, 1st April 2011 to 31st March 2012 and are public documents.

(a) In total ten officials travelled to Bloemfontein during December 2011 and January 2012. Chronologically; on the 8 December, one official attended a workshop hosted by the Provincial Government, dealing with the challenge of encouraging entrepreneurship by people with disabilities. Five SMS members, responded to an invitation by the Free State Development Corporation, to assess collaborative partnerships. The total travel and transport, accommodation and other expenses, cost for flights and accommodation for the workshop and consultative meeting, amounted to R14,714.00

On the 25 January 2011, a Deputy Director and Assistant Director conducted site visits to companies short-listed to conduct training on the Bavumile Skills Development Initiative. The total travel and transport, accommodation and other expenses cost of this working visit amounted to R13,098.00

On 30 January 2011, a Deputy Director, conducted visits to textile and clothing projects and met with the DETEA HoD. The total travel and transport, accommodation and other expenses cost of this working visit amounted to R4, 727.00

On the 31 January 2012, a trade and industry advisor undertook an inspection in terms of the BBSDP scheme in Bethlehem. The total travel and transport, accommodation and other expenses cost of this working visit amounted to R3, 501.00

Officials of two entities reporting to the Minister undertook visits to Bloemfontein during December 2011 and January 2012. The dates of the visits were the 4, 5, 19 and 20 December 2021 and 24, 25 and 27 January 2012. The purpose of the visits for the NRCS, was ongoing HR development discussions. The CEO, Acting Chair of the Board, two corporate executives, two Board members and two inspectors were part of these visits at different times. The total travel and transport, accommodation and other expenses costs available at the time of this response, amounted to R51, 526.00

Finally, two South African National Accreditation officials worked in Bloemfontein during January 2012. They are lead assessors who undertook a SANAS facility assessment on the 18 and 31 January, respectively. The total travel and transport, accommodation and other expenses cost of this working visit amounted to R5, 553.00

Reply received: March 2012

QUESTIONS 778 FOR WRITTEN REPLY

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

(1) How many (a) quorate meetings of the National Gambling Policy Council took place since 1 January 2010 and (b) times were they unable to proceed with meetings because there was no quorum;

(2) whether attendance registers are kept of all meetings that have been (a) held and (b) abandoned; if not, why not; if so,

(3) whether he will provide a copy of the specified attendance registers; if not; why not; if so, when? NW949E

RESPONSE

(1) (a) Two

(b) Two meetings

22 March 2011 – no quorum

26 September 2011 - no quorum and meeting had to be moved to 04 October 2011 in Pretoria but the Chairperson was not available due to meeting with the Deputy President and a delegation from Turkey. Further, the meeting was postponed to 4 November in Cape Town but could not reach a quorum and the meeting was postponed.

(2) (a) and (b) Attendance registers are kept in relation to all meetings that have been held, including of meetings where there was no quorum. on arrival. No meeting was abandoned. Where there was quorum or where the Chairperson was not available, these meetings were postponed.

(3) Copies of the registers can be provided with the Chairperson's approval.

Reply received: March 2012

QUESTION 761 FOR WRITTEN REPLY

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

(1) Whether his department issued any letters of support to companies (a) to do business or (b) doing business with Iran in (i) 2009, (ii) 2010, (iii) 2011 and (iv) 2012; if not, what is the position in this regard; if so, in each case, (aa) on what date was the letters issued and (bb) what (aaa) is the name of the person who (aaaa) issued and (bbbb) received these letters, (bbb) was the name of the company involved, (ccc) goods or services did the company provide and (ddd) are the further relevant details;

(2) whether his department conducted any investigations before issuing the letters of support; if not, why not, in each case; if so, what are the relevant details in each case;

(3) whether other departments were consulted before issuing the letters of support; if not, why not; if so, (a) which departments were consulted and (b) what are the further relevant details;

(4) whether his department is conducting an investigation into any of these letters of support; if not, why not, in each case; if so, what are the relevant details in each case? NW929E

Reply:

Question 1

a) The Department issued no letters of support for doing business in Iran in (I) 2009, (ii) 2010. In (iii) 2011 a letter was issued and (iv) 2012 no letters were issued with regards to Iran. (v) In 2008 the Department issued two letters of support to 360 Aviation signed by the then Deputy Director General Mr I Sharma on 5 February 2008 and 3 September 2008 respectively.

Year 2011

(aa) The letter of support was issued on 12 April 2011

(bb)

(aaa) Mr A J le Roux, then Acting Deputy Director General

(aaaa) Trade and Investment South Africa

(bbbb) Mr B Oberholzer, CEO 360 Aviation

(bbb) 360 Aviation

(ccc) Services offered by the company included aviation project management and services:

● Delivery of Bell 212 HP Helicopters

● Setup of companies importing/exporting aircrafts

● Supply of helicopter spare parts to Persian Aviation Gulf Services

● Setup of a local company for large Iranian Oil Firm

● Supply of consultant services to Iran Air

● Various investment programs for Iran Investment Company (IIC)

● Advising Mahan Airlines on proper procurement to re-fleet their airline

● Advising and brokering fleet procurement for Aseman Airlines

● Providing the National Iranian Oil Company (NIOC) of support services of spare parts and aviation services to maximize oil extraction in the Persian Gulf.

(ddd) The request for support was for a forthcoming visit to Iran scheduled for May 2011

Year 2008

(aa) The letter of support was issued on 5 February 2008

(aaaa) Mr Iqbal Sharma, then Deputy Director General of Trade and Investment South Africa

(bbbb) Mr A Mansourian, Iran Air

(bbb) 360 Aviation

(ccc) The letter was addressed to Iran Air, preceding their visit to South Africa in 2008, to support a venture between Iran Air and 360 Aviation.

Year 2008

(aa) The letter of support was issued on 5 February 2008

(aaaa) Mr Iqbal Sharma, then Deputy Director General, Trade and

Investment SA

(bbbb) Mr B Oberholzer, CEO of 360 Aviation

(bbb) 360 Aviation

(ccc) Services offered by the company included aviation project management and services

Question 2

A review of 360 Aviation's previous contacts with the dti and interactions they had with entities in Iran was done and the two letters issued in 2008 were retrieved. The company was also requested, and duly complied when requested to produce a signed letter regarding their past interactions with Iran and their future objectives in Iran.

Question 3

No other Departments were consulted and the dti issued the letter of support unilaterally.

Question 4

The Department is conducting an investigation into the supply of letters of support.

Reply received: March 2012

QUESTIONS 696 FOR WRITTEN REPLY

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

(1) Whether his department commissioned a (a) research and (b) survey on approved products listed with the SA Bureau of Standards (SABS); if not, why not, in each case; if so, (i) in each case, what was the (aa) scope and (bb) findings, (ii) which products failed quality assurance and (iii) what are the further relevant details;

(2) What measures has his department implemented to prevent any oversight in the quality assurance process by the SABS? NW858E

Response

(1) (a) Product testing and assessment is a voluntary activity. There are more than 6000 South African National Standards as well as a vast number of international standards. The SABS enters into contractual agreements with its customers to test products. Information on products that fail quality assurance tests is conveyed to SABS clients and not tothe dti.

Therefore, no research and (b) no survey on approved products listed with the South African Bureau of Standards (SABS) were conducted by the dti. There is no dti approved list of products on the South African market.

(2) The Minister approves the strategic plan of the SABS on an annual basis. This includes the approved risk plan and where appropriate, reports on any change in the capability status of its laboratories and corrective measures adopted.

Performance is monitored through the submission of quarterly reports to the dti.

Reply received: April 2012

QUESTION 660

Ms N P Gcume (Cope) to ask the Minister of Trade and Industry:


Whether his department intends providing security training for youth to serve the community as community forum members in their areas. If not, why not? If so, what are the relevant details?

RESPONSE


a) The dti seeks to broaden participation in the economy to strengthen economic development through the transformation of the largely informal economy via Small, Medium and Micro-sized Enterprise (SMME) development and the channelling of support measures to the co-operatives sector. b) Young men and women who intend forming enterprises in the security industry can be assisted with enterprise development training. This will include training on the various aspects of business management and financial management. Should they intend forming cooperatives, they will also be assisted with cooperative model training and cooperative management training. c) In respect of the technical training aspects and recognising the implications thereof, this training should be facilitated through the Department of Police, who can ensure that these young men and women are provided with the necessary training to ensure their own safety and that of the community in which they will be operating.

Reply received: March 2012

QUESTION NO.: 607
FOR WRITTEN REPLY
Mr D J Maynier (DA) to ask the Minister of Trade and Industry:

(1) What (a) was the total obligation of the German Submarine Consortium under the National Industrial Participation Programme relating to the Strategic Defence Package. (b) total amount has actually been invested. (c) total investment has been credited and (d) average multiplier was used to calculate the investment credit;

(2) (a) what was the name of each specified project that has been undertaken in order to fulfill the obligation (b)(i) how many jobs (aa) were actually created and (bb) have been credited and (ii) what multiplier was used to calculate the jobs credit and (c)(i) how much money was (aa) actually invested and (bb) credited with regard to each specified project and (ii) what multiplier was used to calculate the investment credit? N W773E

REPLY:

(I)(a) The total obligation of the German Submarine Consortium under the National Industrial Participation Programme was € 2.8 billion. Of this amount, the total investment obligation is € 960.3 million and the total sales obligation is € 892 million.

(b) The total obligor expenditure was € 64 million

(c) The total investment credits awarded was € 961 million representing the estimated economic value leveraged by the total obligor expenditure in the form of fixed investment in plant and equipment and in activities such as training.

(d) The average investment multiplier was 14.90. Taking into consideration sales credits, the average total multiplier was 48.33.

(2) (a) The following projects were involved: Precision Strip Milling; Conveying Pipes; Condomi: Agri-Floricultural Products: Engineering Services: Engineering Services-Ferroman; MDM Ferroman: FERISA Investment Fund; Magwa Tea; Tank MAN: Turbo Containers; Atlantis Training Centre; HOSAF Recycling; SAMES; Call Centre: Oil and Gas Projects ; Abalone: Limpopo Tea: Yachtport Facility: HPVA; LWTF-The Movie and Desmond Equipment
(b) (i) A total of 2203 new direct jobs, 4406 new indirect jobs were created and 4889 jobs were saved
(ii) In terms of the NIPP methodology credits are awarded for investment and sales and not directly for jobs. Therefore no jobs multiplier is used.
(c) The following table provides a detailed breakdown of actual obligor expenditure, investment credits and associated multiplier.

(3) As communicated to the Trade and Industry Portfolio Committee, the DTI will at the beginning of the 2012/13 financial year commence a detailed review of NIPP projects to make an independent assessment of the economic value generated. in the context of broader measures to significantly strengthen NIPP policy.

Here is the table: http://www.pmg.org.za/files/questions/QRNW607-2012.pdf

Reply received: March 2012

QUESTIONS 589 FOR WRITTEN REPLY

589. Dr HC Van Schalkwyk (DA) to ask the Minister of Trade and Industry:

(1) whether his departments has an internal audit unit; if not, why not; if so, (a) how many staff members are employed in the unit and (b) what (i) is the structure and (ii) are the functions of the unit;

(2) whether the audit committee considers the internal audit reports; if not, why not; if so, what are the relevant details;

(3) whether he holds meetings to discuss (a) the internal reports and (b) their findings with the audit unit; if no, why not, in each case; if so, (i) on what dates since 1 April 2010 has each specified meeting taken place and (ii) what are the further relevant details? NW754E

1 (a)

Yes, 26 staff members employed in the Unit.

(b) (i)

2 directorates i.e. Directorate: Compliance and Forensic Audits, and Directorate: Performance and IT audits. 1 Chief Audit Executive, 1 Director: Compliance and Forensic, 1 Director: Performance and IT, 8 Deputy Directors (2 Compliance Deputy Directors, 2 Forensic Deputy Directors, 2 IT Deputy Directors and 2 Performance audit Deputy Directors), 5 Assistant Directors (2 in Compliance, 1 in Forensic, 1 in IT, and 1 in Performance audit, 6 internal auditors (4 in compliance, 1 in performance audit, and 1 in Forensic audit), 1intern, 1 secretary and 2 team assistants.

(b) (ii)

To appraise the policies, procedures, and management controls in place at the dti, and to ensure that operational activities are properly functioning and regulated such that they promote effective controls at reasonable costs.

This is carried out through the execution of our Internal Coverage plan which is risk based and focuses on certain strategic objectives of the dti, as well as operational/ support services areas in the dti. The coverage plan consists of consolidated audits on targeted areas (i.e. a mixture of Compliance, Performance and IT audits) on the planned areas.

The Forensic Unit focuses on fraud related investigations reported either through the National Anti Corruption Hot line (NACH), the Presidency, through dti Management or via the dti Whistle Blowers' policy.

2

Yes, AC meetings are held every quarter where the IA unit presents summaries of all audits completed in that quarter. At least 8 audit reports are presented per quarter, (a mixture of Performance, IT and compliance audits), per due deliverables for the Quarter. The audit committee reviews management action plans to audit findings, and also tracks these through the Audit Matrix documents that Internal Audit keeps.

The Forensic Reports are presented separately at a closed pre-risk meeting which is chaired by the Risk AC chairperson, and also attended by a 2nd independent member.

3 (a) (b)

Only in specific instances are reports discussed with the Minister.

All other audit reports are discussed with the DG as the Accounting Officer of the dti, who, as per section 38 of the PFMA, is responsible for ensuring that an audit function is in existence. The Internal Audit Unit therefore reports to the DG of the dti, who then has a direct reporting line to the Minister to report any issues of concern that may arise from Audit Findings.

Reply received: March 2012

Question 557

Mr S B Farrow (DA) to ask the Minister of Trade and Industry:

How many applications from the hospitality industry for grants to assist small businesses were (a) received by his department in the (i) bed and breakfast and (ii) guest house accommodation category for the (aa) 2009-10 and (bb) 2010-11 financial years and (b) rejected;

Response:

(a) The applications received for grants to assist small businesses for accommodation facilities between 2009-10 and 2010-11 is 265. The number received for 2009-10 financial year is 137 and for 2010-11 financial year is 128.

(b) Applications not approved for 2009-10 financial year is 8 and for 2010-11 financial year is 18.

Question 02

(a) what are the reasons for the rejections in each case above and (b) in respect of the grants that have been awarded, how many recipients are still in business?

(b) in respect of the grants that have been awarded, how many recipients are still in business?NW719E

Response:

(a) Applications were not approved because the requirements for approval as per the TSP

guidelines were not met. 6 applications were not considered financially sustainable, 7 entities are located in non-qualifying metropolitan areas (eThekwini, Johannesburg, Cape Town) and 10 were not approved for various reasons such as the project is not tourism focused, the project does not meet the dti's minimum employment requirements and application was received after the start of operation.

(b) The number of entities that have confirmed operation is 207. The number of entities that have not confirmed operation is 58.

Reply received: March 2012

QUESTIONS 503 FOR WRITTEN REPLY

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

Whether he met with the internal audit committee in the (a) 2010-11 and (b) 2011-12 financial years; if not, why not; if so (i) on which dates did they meet and (ii) what are the relevant details? NW652E

(a)

No

(b)

No

The legislation applicable to the functioning of the Audit Committee and Internal Audit is Section 38.1 a(ii) of the PFMA and stipulates that the Director-General as the Accounting Officer of the department is responsible for ensuring that an Internal Audit function, under the control of an Audit Committee exists. Internal Audit reports functionally into the dti's Audit Committee. The Minister has oversight of the Internal Audit function through signing off on the Audit Committee charter, the Audit Committee fee policy document as well as the appointment of members to the Audit Committee. There are regular engagements between the Minister and the Office of the Auditor-General.

(i)

n/a

(ii)

n/a

Reply received: March 2012

QUESTION 460 FOR WRITTEN REPLY

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

(1) Whether, with reference to his reply to question 86 on 21 February 2012, the matter was the outcome of a case before the Consumer Tribunal; if not, what is the position in this regard; if so, (a) when was the case concluded and (b) what (i) penalties were imposed and (ii) corrective actions were the companies compelled to take;

(2) whether any action has been taken to enforce these penalties; if not, why not; if so, what action;

(3) whether any companies have (a) paid their penalties or (b) undertaken corrective action; if not, why not, in each case; if so, what are the relevant details in each case;

(4) whether the decision of the Consumer Tribunal has been published; if not, why not; if so, what are the relevant details;

(5) whether the hearings by the Consumer Tribunal that took place in January 2012 has been concluded; if not, why not; if so, what are the relevant details in this regard? NW608E

RESPONSE

According to the National Consumer Tribunal:

(1) The National Consumer Tribunal (NCT) received applications from Respondents to review the compliance notices issued by the National Consumer Commission (NCC) in relation to all three cellphone operators.

a. The cases are not yet concluded;

b. i. Not applicable;

ii. Not applicable.

(2) Not applicable

(3) Not applicable

(4) Not applicable

(5) MTN v NCC was heard by the NCT on 20 January 2012. The matter is part- heard as it dealt with a point in limine which the NCT is currently considering. The NCT will finalize it's decision in relation to the issues raised. If the NCT upholds the point in limine, the matter will be finalized by setting aside the compliance notice. If the point in limine is not upheld, the matter will be set down again to deal with the remainder of the application.

Cell C v NCC and Vodacom v NCC were postponed on the request of the parties and will be heard on 20 March 2012 and 4 May 2012 respectively.

Reply received: March 2012

QUESTIONS 458 FOR WRITTEN REPLY

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

(1) what was his departments role in the production of the Big Break Legacy reality television show:

(2) whether his department made a financial contribution towards this project; if not, what is the position in this

regard; if so (a) how much did his department contribute and (b) from which budget were these funds paid;

(3) (a) how was this project selected for financial support and (b) who approved this financial support? NW606E

(1)

Job creation remains a priority for this administration. Promoting and encouraging entrepreneurship among South Africans, particularly the youth is crucial in ensuring that the unemployment challenge is addressed in a sustainable way. the dti's role in the production of the Big Break Legacy reality television show involved guiding the producers regarding issues that potential entrepreneurs and SMMEs consistently raise as challenges in their daily operations; ensuring that the show responds to some of the issues and suggests potential business solutions; ensuring that the show directs potential entrepreneurs to some of the services provided by our agencies such as the Small Enterprise Development Agency and the National Empowerment Fund.

(2) (a)

the dti made a R10 million investment towards the production and broadcast of the show.

(b)

The project was funded from the Marketing and Communication budget as it involves the promotion and profiling of our involvement and efforts to encourage entrepreneurship.

(3) (a)

The project was selected based on its innovative and unique offering which linked directly to the department's objectives and plans to embark on more campaigns to promote and encourage entrepreneurship via public-private-partnerships.

(b)

Financial support for the project was approved in terms of the relevant public service regulations and the applicable departmental delegations of power, which clearly stipulates financial thresholds per each level of member of the senior management service.

Reply received: March 2012

QUESTION 457 FOR WRITTEN REPLY

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

(1) (a) What was the size of the delegation that accompanied him on his recent visit to Turkey and Saudi Arabia on 13 February 2012 and (b) who formed part of the delegation;

(2) what (a) was the total cost of the trip and (b) is the detailed breakdown of the (i) accommodation and (ii) travel expenses;

(3) what was the (a) name and (b) star rating of each hotel in which (i) he and (ii) the delegation stayed during the trip? NW605E

Reply:

Question 1a

Turkey

Economic relations between South Africa and Turkey are governed by the South Africa –Turkey Joint Economic Commission (JEC) established in accordance with Article 11 of the Trade and Economic Cooperation Agreement between South Africaand Turkey. The JEC was established to promote trade, investment and economic cooperation. The first session of the SA-Turkey JEC took place in Pretoria in 2008.

The Minister accepted an invitation from his Turkish counterpart to co-chair the second session of the SA-Turkey JEC on 14 February 2012, In line with the dti strategy to optimize export and investment opportunities presented by such visits, a meeting of the relevant Business Forum was also held in the case of this visit. Minister was accompanied by eight officials from the dti, one official from DIRCO and seventeen business delegates (including representatives of Provincial Governments) to Turkey.

Saudi Arabia

In line with a Ministerial directive to cluster these working visits (where possible) in order to rationalize trips and effect saving the Minister responded positively to a request from the South African Embassy in Saudi Arabia to travel to Saudi Arabia to fast-track discussions towards the conclusion of the pending Bi-lateral Investment Treaty and Trade Cooperation Agreements between the countries. Due to the available support in Saudi Arabia at the time, the Minister declined to be accompanied by any officials.

Question 1b

The delegation to Turkey included eight dti officials from the following Divisions in the dti; Trade and Investment South Africa (TISA) (3), International Trade and Economic Development (ITED) (4) and Media Liaison (1). The seventeen business persons were from the following sectors: Construction, Mining, Energy, Textile and Information Technology.

Question 2

Question 2 (a)

Turkey

Minister Davies plus 2 officials were hosted by the Turkish government as normal courtesy afforded by host Governments and all costs relating to the visit was covered by the Turkish government for the duration of Ministers Davies visit toIstanbul and Ankara.

The total cost is outlined in 2 (b) ii below:

Saudi Arabia

Total cost amounted to R22 184,50

Question 2 (b) i

Turkey

The breakdown of accommodation and travel costs of the visit was:

Accommodation for 6 nights for 2 officials (Euro 200 x 6 x 2 officials) = R24 660

Accommodation for 4 nights for 6 officials (Euro 200 X 4 x 6 officials) = R49320.00

Saudi Arabia

Accommodation expenses: R12 639, 50

Question 2 (b) ii

Turkey

Travel expenses: 4 X Economy Class: 4 officials = R 80 631

Travel expenses: 4 X Business Class: 4 officials = R 166 666

Travel expenses (Ground Transport) = R20 000

Subsistence and Travel Allowance 7 days x 2 officials x R1037.8 = R14 528.85

Subsistence and Travel Allowance 5 days x 6 officials x R1037.8 = R31 134.00

Saudi Arabia:

Transport: R9 545, 00

Question 3

Question 3 (a)

Turkey

The choice of accommodation for Minister was facilitated by Turkish hosts

Saudi Arabia

The Embassy arranged for the Minister's accommodation in Riyadh

Question 3 (b)

All three hotels recommended by the host country are five star hotels.

Reply received: March 2012

QUESTION 424 FOR WRITTEN REPLY

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

How many applications for funding per category (a) were (i) received, (ii) approved and (iii) declined by the National Lotteries Board in the (aa) 2009-10 and (bb) 2010-11 financial years and (b) are still outstanding? NW567E

RESPONSE: According to the National Lotteries Board

Arts, Culture and National Heritage

2009/2010

2010/2011

Received

1789

(including applications received in 2008/09 that were adjudicated upon in 2009/10)

1234

Approved

188

165

Declined

826

415

Outstanding

775

654

Charities

2009/2010

2010/2011

Received

8025

(including applications received in 2008/09 that were adjudicated upon in 2009/10)

4065

Approved

1383

1524

Declined

2208

1943

Outstanding

4434

598

Sport and Recreation

2009/2010

2010/2011

Received

2831

(including applications received in 2008/09 that were adjudicated upon in 2009/10)

3292

Approved

742

621

Declined

1795

415

Outstanding

294

2256

Reply received: March 2012

QUESTION 380 FOR WRITTEN REPLY

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

Whether he has been informed that Edenvale Child Welfare is facing closure due to lack of funds; if not, what is the position in this regard; if so, (a) what steps does he intend to take to expedite the payment of funding from the National Lottery Fund, (b) what are the reasons for the delay in paying out the funding and (c) on what date did Edenvale Child Welfare apply for their funding? NW467E

RESPONSE:

According to the National Lotteries Board:

(a) Steps to pay the Applicant cannot be outlined at this stage since a grant has not yet been allocated. The applicant has thus far received 6 grants from the NLDTF amounting to just over R1, 3 million and should have been aware of the need to get an application in as soon as possible, especially when financial difficulties are being experienced.

(b) and (c)

A large volume of applications was received during the 25 March 2011 call for applications. Approximately 8,500 applications were received. This is twice the number of applications received during the previous call to charities. To date, the Charities Distributing Agency have processed 5,242 applications and 3,258 applications are still to be concluded.

The application in issue was received during the last day of submission. The system operated by the National lotteries Board is based on a queuing system, whereby adjudication packs are prepared based on their number of processing in the system. In other words it is done chronologically. The application in question is currently in the phase that indicates that it is ready for presentation but is not amongst the first 100 applications.

There are also five teams in the Charities sector which presents to the Distributing Agency as per the meeting schedule.

It is therefore very difficult to commit to specific dates on which the application would be presented to the Charities Distributing Agency.

In the meantime, the Charities Distributing Agency has agreed to meet every week for at least 3 days and this strategy has thus far resulted in a fast-tracking of the adjudication process.

The grant management cycle operated by the National Lotteries Board is as follows.

Step 1

· There is a call for applications made in various media publications.

Step 2

· Applications are received and acknowledgement letters/ sms notifications are issued with a project number.

· Applications are scanned and allocated to various teams.

· Applications are captured, assessed and prepared for adjudication.

Step 3

· Applications are adjudicated by the distributing agency (DA).

· If declined, the office would prepare the declined letter. Declined applications would be based on not meeting the mandatory requirements as outlined in the July 2010 guidelines.

· Or the DAs could refer the application for a site-visit to the compliance unit.

· Or the DA s would request for additional information from applicants.

Step 4

· If project was approved it will proceed to the legal sectionl for the drafting of the grant agreement and allocation letter.

· Grant agreement to be sent to beneficiaries and returned to the office.

Step 5

· File is prepared for payment.

· Payment is then processed.

Step 6

· grant site-visit

· Submission of progress report

· If it relates to a tranche payment second/third tranche would be processed.

· If final report the project would be closed.

Reply received: March 2012

QUESTION 365 FOR WRITTEN REPLY

365. Ms E More (DA) to ask the Minister of Trade and Industry:

(a) What steps does he intend taking to expedite the payment of funds from the National Lottery to institutions like the Boksburg Child and Family Welfare who is facing closure due to a lack of funds (details furnished), (b) what are the reasons for the delay in paying out the funds and (c) on what date did the Boksburg Child and Family Welfare apply for funding? NW452E

RESPONSE:

According to the National Lotteries Board:

(a) Steps to pay the applicant cannot be outlined at this stage since a grant has not yet been allocated. The applicant has thus far received 10 grants from the NLDTF amounting to just over R8 million and should be aware that the need to get an application in as soon as possible, especially when there are financial difficulties experienced.

(b) There is no delay in payment. Payment cannot be effected until a grant is allocated and all other conditions relating to the awarding of the grant have been met. Applications are processed chronologically.

(c) The application was submitted on the closing date, 25 March 2011. In that call for applications the NLB received more than 8 500 applications, which is double those received in the previous call. Approximately 4500 applications

have already been dealt with. The remaining applications will be assessed, however, an exact date on which the application in issue will be dealt with, is not clear at this point time.

NB: Child and Family Welfare Society of Greater Boksburg submitted an application (dated 23.03.2011) on the closing date for applications, 25 March 2011. The application is on file and meets the basic requirements. All applications received by the deadline are processed chronologically and once a decision has been taken on this application, the applicant will be advised of the decision.

Reply received: March 2012

QUESTION 292 WRITTEN REPLY

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

(1) Whether his department monitors trade relations with Brazil, Russia, India and China (BRICS) to ensure that there are no imbalances and to prevent being a dumping ground for cheap goods at the expense of local manufacturers and businesses; if not, what is the position in this regard; if so,

(2) whether he is reviewing trade relations with the BRICS counterparts; if not, why not; if so, what are the relevant details;

(3) whether he intends a stricter monitoring regime of trade relations with these countries; if not, why not; if so, what are the relevant details? NW370E

Response:

the dti regularly monitors trade relations with all South Africa's trade partners, including with our partners in the BRICS. While trade flows fluctuate, our efforts are focused on shifting the basket of our exports to trading partners to include greater levels of value added manufactured products. The key to this effort is advancing the implementation of South Africa's industrial policy action plan that aims to upgrade and diversify the country's industrial production to produce globally competitive manufactured products.

South Africa uses tariff policy and trade remedies to support economic development, job creation and industrialisation. Where it is demonstrated that trade partners engage in unfair trade, including dumping products into our market, the International Trade Administration Commission is empowered to apply additional duties to protect the local industry.

Given the growing importance of our partners in BRICS in the global economy, we are intensifying efforts to expand our trade relations with each of them in a manner that is mutually beneficial, complementary and that avoids destructive competition, This is ongoing work.

Reply received: March 2012

Question 291

Mr GBD McIntosh (COPE) to ask the Minister of Trade and Industry:

1. Whether his department's Regional Spatial Development Initiative is planning to provide free maps online; if not, what is the position in this regard; if so, (a) what are the reasons for this initiative, (b) how will this service be accessed by users, (c) when will these maps become accessible to the public, (d) which regions will be mapped out and (e) what will be the cost to his department of providing these free online services.

Response:

(a) The work of the dti on regional and spatial development focuses on the promotion of balanced industrial development including industrial decentralisation. At this stage the dti is developing internal capacity and a Geographical Information System (GIS) which will be used as an information and analytical tool to inform the planning for such industrial decentralisation. Currently the dti relies on the services of the Centre for Scientific and Industrial Research (CSIR), DBSA and other partners. The dti does not have a Regional Spatial Development Initiative that focuses on the provision of maps online.

(b) & (c) At this stage the users of the GIS will be the department and the maps will not be available to the public.

(c) Provinces, metros, districts or municipalities will be mapped out in accordance with available resources and priorities

(d) No free online service has been considered at this stage and consequently no costing has been made in that regard.

2. Whether these maps will cover South Africa's neighbouring countries as well; if not, what is the position in this regard; if so, what are the relevant details.

At this stage the maps will not cover neighbouring countries but there is room for inclusion should it be necessary taking into account the Spatial Development initiatives (SDI). Currently partners such as the DBSA are providing necessary support with regard to the SDIs.

Reply received: March 2012

Question 157

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

(1) (a) What amounts have been (i) budgeted and (ii) spent on each Industrial Development Zone (IDZ) in the (aa) 2009-10 and (bb) 2010-11 financial years, (b) where is each specified IDZ located and (c) how many direct jobs have been created in each IDZ in the (i) 2009-10 and (ii) 2010-11 financial years;

Response

(1) (a)The following amounts have been budgeted and spent on the designated IDZs for the 2009/10 and 2010/11 financial years.

R'000

IDZ

2009/10

2010/11

Total

Coega IDZ

859,889

714,000

1,573,889

East London IDZ

373,373

198,000

571,373

Richards Bay IDZ

68,423

20,000

88,423

Total:

1,301,685

932,000

2,233,685

(1) (b) Coega IDZ is located in Port Elizabeth (Eastern Cape); East London IDZ is in East London (Eastern Cape); Richards Bay IDZ is in Richards Bay (Kwa-Zulu Natal); OR Tambo IDZ (not yet operational) is next to the airport in Kempton Park(Gauteng). Saldanha Bay IDZ (proposed) is in Saldanha Bay (Western Cape).

(1) c) The consolidated outputs of the three operational IDZs (Coega, ELIDZ and RBIDZ) in terms of Investments and Job creation are as follows (since 2002/03 to 2010/11):

Sector

Number of Investors

Value of Investment (R'000)

Total Employment

COEGA

12

(+8 in NMBLP)

R 9,647,000

27412

ELIDZ

23

R 1,500,000

5 524

RBIDZ

1

R 650,000

300

TOTAL

36

R 11,797,000

33236

Q (2) whether any companies have closed in any of the specified IDZs; if so, (a) how many, (b) in which financial year and (c) what are the relevant details of each company?NW173E

Response

There are four (4) companies that closed down operations on the IDZs since 2001 to date:

East London IDZ:

1. Wavelengths 150 T/A Sea-Tek started operations in the IDZ in 2007 in the Mari-culture sector. Their business focused on land based propagation of Abalone. Sea-Tek was liquidated on the 30 March 2010, owing to cash flow problems as well as permit compliance issues.

2. Carcoustic SA (Pty) Ltd, an automotive heat shield producing company closed operations on the 15th December 2010, despite being the only plant in the group of companies that posted profits during the recent recession. The Main reason advanced was that the mother company was consolidating its operations in Europe.



3. ZZZ Distributors (Pty) Ltd, a sanitary ware distribution company closed its operations in December 2011 owing to diminished trading volumes, distances to clients and consequent consolidation of their operations in Durban.

Coega IDZ:

1. Sea Arc – a company in the aqua-marine sector started a pilot project in shrimp production in 2007. The pilot started on a 4 ha plot for which a positive record of decision on the EIA was approved, and the new technology (from theUSA) was also approved. The project could not proceed due to lack of funding from its shareholders and/or other sources to take the main project to full-scale commercialization. There were also challenges with the local partner, however, the main reason for the collapse was the funding.

Reply received: February 2012

QUESTION 140 FOR WRITTEN REPLY

140. Mrs M A A Njobe (Cope) to ask the Minister of Trade and Industry:

Whether a cohesive strategy has been put in place to take advantage of the economic crisis in Europe to attract more foreign direct investment; if not, why not; if so, what are the relevant details? NW151E

REPLY:

Over the past 10 years South Africa's trade and investment strategy has diversified to higher growth markets. Growing relations with developing countries such as Brazil, Russia, India and China hold out the possibility of new markets for South African goods and attraction of investment. A concerted effort has been made to attract investment in higher growth markets as well as sustaining and maintaining investment with the developed countries. Effort has also been placed on more prominent markets within the Euro-zone which are the most stable economies within the EU such as Germany and the Nordic States.

• The methodology for selection of countries include criteria such as:

• Sectoral profile of the country

• Country's importance relative to others, as a source of investment

• Country's development strategy and its fit with South Africa.

• Fit between multilateral strategies

• A country's geopolitical strategy, with respect to its region and the world

• Country's investors interest with SA

• SA ability to compete for investment in a target country

• South Africa's New Growth Path (NGP) and Industrial Policy Action Plan (IPAP)

The Department of Trade and Industry is currently undertaking a number of strategic interventions in the BRICS country to ensure that South Africa is in a position to be able to attract investments from more stable high growth markets.

These include leveraging our bilateral relationships, international trade and investment initiatives, exhibitions, sector investor targeting, company visits and marketing events. Through our bilateral relationships and marketing initiatives we have been able to provide a platform to the private sector to engage on trade and investment opportunities. These include BRICS Business Forum, IBSA Business Forum, India CEOs Forum, SA- Russia Business Council and high level conferences and exhibitions in China.

The investment by the Industrial and Commercial Bank of China (ICBC) China into Standard Bank opens up a new frontier for investments into South Africa and the African continent. Today Tata as a corporate from India is one of the largest investors in South Africa investing in mining, automotives, telecommunications and hospitality. Japan is also and important source of investment and the recent mergers by Kansai – Freeworld and NTT – Dimension Data are a vote of confidence by Japanese companies to further invest in South Africa.

Other emerging countries for investment include South Korea, Turkey and the Gulf Cooperation Council Countries (GCC) in the Middle East. Countries in the Eurozone currently experiencing economic distress are not in an ideal position to embark on large scale foreign investment. Despite this the Department of Trade and Industry continues with European companies expressing an interest in investing in South Africa. For example Germany remains an important investment partner forSouth Africa in the industrial sector, automotive, components and the green economy.

Reply received: February 2012

QUESTION 129 FOR WRITTEN REPLY

129. Mr N Singh (IFP) to ask the Minister of Trade and Industry:

(1) Whether he has found that the proliferation of ''China Town" shopping complexes has been beneficial to the economy (details furnished); if not, why not; if so, (a) what approximate value do the specified complexes add and (b) are the relevant details;

(2) whether, in light of the fact that no returns or guarantees are allowed on merchandise purchased, contrary to the provisions of the Consumer Protection Act, Act 68 of 2008, he has found that goods on offer comply with (a) all the health and safety and (b) SABS regulations; if not, what is the position in this regard; if so, what are the relevant details?NW138E

Response.

(1) The dti does not have a position on the value or otherwise to the economy that is based on the National or ethnic origin of the owners of any business activity. All investors legally present and operating in South Africa according to the law are accorded "national treatment". On the other hand, any retailer or importer, regardless of national or ethnic origin, who is associated with illegal or fraudulent imports, non-compliance with health, safety and SABS minimum standards and a breach of the rights of consumers, does not benefit the economy. Such practices undermine domestic manufacturing capacity, enable the entry of unsafe and substandard products on to the domestic market, violate the rights of consumers.

(a) The system of National Accounts does not capture the value that individual enterprises, add to the GDP.

(b) This detail can therefore not be provided.

(2) Suppliers are generally prohibited from selling any goods on the basis of a no returns or guarantee policy and action has and can be taken against transgressors. Section 56 (1) of the Consumer Protection Act, 68 of 2008, provides an implied warranty in that, the producer, importer, distributor or retailer warrant that goods supplied comply with the consumer's right to safe and good quality goods. Section 56 (2) entitles the consumer to return the goods without penalty and at the supplier's expense, if within six months, the goods fail to meet the requirements and standards set out in section 55.

(a) and (b): Action against illegal imports and non compliance with the requisite SABS standards requires coordinated intra-governmental action. It is for this reason that a coordinated approach to non-compliance is adopted. This includes raids carried out against companies alleged to be in breach of one or more of the provisions set out above. Coordinated action under the direction of SARS includes the involvement of the dti and its agencies. Concerted integrated investigation and action will continue to be undertaken against transgressions of the law.