Questions & Replies: Trade & Industry

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2013-03-04

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Reply received: November 2013

QUESTION 3194 FOR WRITTEN REPLY

3194. Adv H C Schmidt (DA) to ask the Minister of Trade and Industry:

(1) With reference to his reply to question 1641 on 28 June 2013, why have the new National Industrial Participation (NIP) policy guidelines not been (a)(i) published and (ii) distributed to stakeholders and (b) published on his department's website;

(2) has the review of the NIP projects arising from the Strategic Defence Procurement Package been completed; if not, why not; if so, when (a) was it completed and (b) will the report be published?NW3753E

Response:

(1) The revised Guidelines of the National Industrial Participation Programme (NIPP) have been approved and will be published, distributed to all stakeholders and placed on the dti website shortly.

(2) The review of the National Industrial Procurement (NIP) projects arising from the Strategic Defence Procurement Package projects has been partially completed. It will be tabled before the Parliamentary Portfolio Committee. The delay was occasioned by the fact that a legal opinion on the matter was sought.

Reply received: November 2013

QUESTION 3188 FOR WRITTEN REPLY

3188. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(1) With regard to the launch of the Saldanha special economic zone (SEZ), (a) who arranged the transport for this event, (b) how was the event advertised in the community, (c) how much did the event cost, (d) who was in charge of organizing the event, (e) why were T-shirts of a certain political organization (name furnished) allowed to be distributed at a State event and (f) how was the event funded;

(2) will he give a detailed breakdown of the (a) budget for and (b) actual cost of the event?NW3746E

Response:

(a) Aligned to the dti's community participation campaigns, transport was arranged by the dti.

(b) The event was advertised through the regional radio stations and newspapers including online advertising (the dti website and Facebook account). Free interview sessions were also arranged via local radio stations informing various communities of the event, as well as information on the pick-up points for buses, on a first-come first-served basis as only a single trip was organised for each area.

(c) Total costs of the event

ITEM

COSTS (Rand)

Advertising

151 279. 76

Catering for 2400 people and furniture

155 000.00

Marquee, stage and sound equipment

558 676.10

Transportation

104 900.00

TOTAL COSTS

969, 855.86

(d) thedti was in charge of organising the event, but worked closely with the Saldanha Bay Municipality.

(e) thedti did not pay for any printing of T-Shirts. The department was therefore not aware that there would be any T-shirts belonging to a political party that would be distributed before or during the event.

(f) The cost of the event above (1) (c) was funded by the dti from its budget, however, there were certain contributions (in kind) made by the Saldanha Bay Municipality, i.e. provision of public toilets, provision of the seats and tables that went into the Tent. The Saldanha Bay IDZ Licensing also contributed towards procuring of the Plaque that was unveiled at the sod-turning ceremony.

(2) Will he give a detailed breakdown of the (a) budget for and (b) actual cost of the event? NW3746E

Response:

The original Budget drawn for the event was estimated at R1 million. A detailed breakdown of this Budget and the Actual Cost of the event is provided on the Table below:

ITEM

ESTIMATED BUDGET

(Rand)

ACTUAL COSTS

(Rand)

Catering:

2000 people

400 invited guests

Furniture (Holding rooms)

200 000.00

155 000.00

83 000.00

37 750.00

34 250.00

Marquee, stage and sound equipment:

Marquee tent

Stage (Incl. furniture)

Sound system, equipment, engineering and ancillary services

500 000.00

558 676.10

63 135.00

66 500.00

429 041.00

Advertising

Radio Stations

Newspapers

Online adverts

200 000.00

151 279. 76

Transportation

100 000.00

104 900.00

TOTAL COSTS

1000 000.00

969 855.86

Reply received: November 2013

QUESTION 3154 FOR WRITTEN REPLY

3154. Mr S B Farrow (DA) to ask the Minister of Trade and Industry:

(1) Whether his department received any funds for the Expanded Public Works Programme in the (a) 2010-11, (b) 2011-12 and (c) 2012-13 financial years;

(2) whether any of these funds were earmarked for (a) capital or (b) infrastructure-related projects; if so, (i) what are the names of these projects, (ii) where are these projects situated, (iii) what is the value of each project and (iv) how many jobs have been created by each project

(3) in each case, what process was followed to appoint project (a) implementers and (b) consultants;

(4) in each case, were funds transferred to project implementers (a) in a lump sum or (b) through progress payment;

(5) whether any projects have been impeded due to maladministration or corruption; if so, (a) which projects have been affected and (b) what action has been taken in each case?NW3712E

Response:

The Department did not receive any funds for the Expanded Public Works Programme in the 2010-11, 2011-12 and2012-13 financial years.

Reply received: November 2013

QUESTION 3029 FOR WRITTEN REPLY

3029. Adv A de W Alberts (FF Plus) to ask the Minister of Trade and Industry:

(1) What guarantees and security are currently in place for the European Union and Germany in the period after the annulment of bilateral investment agreements until the envisaged Bill on the promotion and protection of investments comes into effect;

(2) what guarantees are in place in the specified envisaged Bill that will (a) validate or (b) replace the guarantees contained in the cancelled bilateral investment agreements;

(3) whether the guarantees contained in this envisaged Bill are of the same standard as the guarantees and security that were contained in the cancelled bilateral investment agreements; if not, why not; if so, what are the relevant details?NW3585E

Reply

South Africa entered into bilateral investment treaties (BITs) with some Member States of the European Union (EU) and not the EU itself. Investors from all countries, including EU countries, are granted strong protection for their investment through the legal framework governing investment in South Africa that is also guaranteed by the property protection clauses in the Constitution. When South Africa notifies its intention to terminate a BIT, termination is effected between 6 and 12 months thereafter. It should be noted that protection under terminated BIT's can extend for between 10 and 20 years.

The Protection and Promotion of Investment Bill was published for public comment on 1 November 2013. The period for comment ends at the end of January 2014. We expect the Bill could become an Act of Parliament in the course of 2014. The Bill reconfirms all the protections currently granted to investors in South Africa under the existing legal framework and clarifies how provisions ordinarily found in BITs are interpreted in South African law. The Bill specifies the strong standards of protection granted to all investors in South Africa in a non-discriminatory manner and is not limited to countries we previously maintained BITs.

Reply received: November 2013

QUESTION 2959 FOR WRITTEN REPLY

2959. Mr L S Ngonyama (Cope) to ask the Minister of Trade and Industry: [Interdepartmental transfer on 1 November 2013]

(1) Whether he has found that the process the Government has employed to terminate bilateral investment treaties has impacted negatively on foreign direct investment confidence; if not, what is the position in this regard; if so,

(2) whether the Government has taken steps to improve this process; if not, what is the position in this regard; if so, what are the relevant details;

Reply

Studies over many years indicate there is no clear relationship between BITs and FDI flows. The relationship is, at best, ambiguous and it is clear that BITs are neither necessary nor sufficient to attract FDI. The return to investment, the rule of law, macroeconomic and political stability are the key reasons foreign capital locates in a particular country. South Africa performs well on all these fronts. In its latest assessment of global FDI flows, UNCTAD that shows that growth of FDI to South Africa was 7th highest in the world over the first half of 2013. FDI into South Africa changed from an outflow of R1,4 billion in the fourth quarter of 2012 to an inflow of R12,9 billion in the first quarter of 2013 and R17,4 billion in the second quarter. FDI flows in 2012 to SA were up on 2011 by 7.7%, in a year when they were down globally by 18%. Mercedes Benz just decided to invest R3bn in South Africa.

The South African Government consulted extensively with its investment partner governments on the issue of BITs termination, It is recalled that the Cabinet decision to terminate BITs was published in July 2010. We reminded all investment partners of our intention during the UNCTAD Investment Conference in Qatar in May 2012, at the UNCTAD Trade and Development meeting in September 2012, and at the OECD investment meeting in November 2012. In October and November 2012, we held direct consultations with representatives of all the EU member states based in South Africa. DIRCO and DTI together held consultations with each of the affected members in August 2013 on a one-on-one basis.

Reply received: November 2013

QUESTION 2939 FOR WRITTEN REPLY

2939. Mrs P C Duncan (DA) to ask the Minister of Trade and Industry:

(1) How much has (a) his department and (b) each of the entities reporting to him spent on advertisements placed on the Africa News Network 7 (ANN7) news channel;

(2) were these advertisements placed through the Government Information and Communications System? NW3490E

Response from the Department of Trade and Industry (the dti):

The department has not placed any advertisement with Africa News Network news channel since its inception.

Response from the Entities:

None of the entities reporting to the department have placed any advertisements on the Africa News Network 7 (ANN) news channel since its inception and have not placed advertisements through the Government Information and Communications System.

RECOMMENDATION:

It is recommended that the response to Parliamentary Question 2939 be approved as outlined above.

Reply received: October 2013

QUESTION 2817 FOR WRITTEN REPLY

2817. Mr G G Boinamo (DA) to ask the Minister of Trade and Industry:

(1) What amount has (a) his department and (b) each of the entities reporting to him spent on advertisements placed on the SABC 24 hour news channel;

(2) Were these advertisements placed through the Government Communication and Information System?

NW3322E

Response from the Department of Trade and Industry:

(1) (a) & (2) (b)

The Department of Trade and Industry (the dti) has not bought or placed any

advertisements on the SABC 24 hour news channel either directly or via the

Government Communication and Information System (GCIS).

Response from the entities:

(1) (b) Entities

(1) (b) Total expenditure (R) incurred by each Entity

(1) (b) Advertisements placed on the SABC 24 hour news channel

(2) Were these advertisements placed through the GCIS? Yes/No/Not Applicable (N/A)

Small Enterprise Development Agency (seda)

None

None

N/A

Companies and Intellectual Property Commission (CIPC)

None

None

N/A

Export Credit Insurance Corporation (ECIC)

None

None

N/A

National Credit Regulator (NCR)

None

None

N/A

National Consumer Tribunal (NCT)

None

None

N/A

National Empowerment Fund (NEF)

None

None

N/A

National Gambling Board (NGB)

None

None

N/A

National Lotteries Board (NLB)

None

None

N/A

National Metrology Institute of South Africa (NMISA)

None

None

N/A

National Regulator For Compulsory Specifications (NRCS)

None

None

N/A

South African Bureau of Standards (SABS)

None

None

N/A

South African National Accreditation System (SANAS)

None

None

N/A

National Consumer Commission (NCC)

None

None

N/A

Companies Tribunal (CT)

None

None

N/A

Reply received: October 2013

QUESTION 2731 FOR WRITTEN REPLY

2731. Mr D J Maynier (DA) to ask the Minister of Trade and Industry:

In respect of the South African Council for the Non-Proliferation of Weapons of Mass Destruction, what was the (a) name of the (i) importing and (ii) exporting state, (b)(i) description, (ii) quantity and (iii) value of the specified controlled goods (aa) exported and (bb) imported (aaa) in the (aaaa) 2009-10, (bbbb) 2010-11, (cccc) 2011-12 and (dddd) 2012-13 financial years and (bbb) since 1 April 2013?NW3231E

Response:

It is submitted that the nature of the requested disclosure may compromise the confidentiality provisions of section 21 of the Non-Proliferation of Weapons of Mass Destruction Act, No 87 of 1993, (the Act). However section 21(2)(a) does grant the Minister discretion to direct any proceedings to be held in camera. In view of such provision, it is suggested that the issues raised be dealt with at an appropriate Parliamentary Committee meeting held in camera, which shall be attended by the Council Chairperson and the head of the Non-Proliferation secretariat.

For ease of reference, kindly find attached the relevant provisions of the Act.

"21. Confidentiality

(1) A member of the Council, a member of any committee of the Council, any officer or employee of the Department, an inspector or any other person who is or was concerned in the performance of any function in terms of this Act, shall not disclose, transmit or make known to any person, whether within or outside the Republic, any information which he obtained in the performance of such a function or cause such information to be disclosed, transmitted or made known, except - ...

(2) (a) If the Minister is of opinion that the disclosure of certain information may

compromise the functions of the Council, or the interests of the industry, he may direct that any proceedings, excluding court proceedings, be held in camera".

Reply received: November 2013

QUESTION 2715 FOR WRITTEN REPLY
16 OCTOBER 2013
2715. Mr G P D Mac Kenzie (Cope) to ask the Minister of Trade and Industry:

Whether his department has any plans in place to improve exports in line with the recommendations of the New Growth Path which calls for a weaker rand so that exports could grow, if not, why not; if so, what plans? NW3220E

Reply:

The New Growth Path acknowledges that the previous strong rand permitted reductions in the interest rate, contributing to rapid credit creation, as well as cheaper imports, but it also contributed to lower profitability and tower competitiveness in manufacturing, agriculture and other tradable goods sector. It generated a consumption boom that was largely restricted to South Africans in the upper income group. The New Growth Path also acknowledges the persistent balance of trade deficit funded with capital inflows. Similar sentiments have been echoed by the Reserve Bank in October 2013, noting that South Africa is vulnerable to capital reversals because of its "persistent current account and fiscal deficits." It has been stressed that there is an urgent need for South Africa to increase its exports if it were to address its balance of payments problem as bond flows into emerging markets had become more fickle.

Within this context, the dti has a critical role to play in ensuring that exports are increased in key labour absorbing sectors such as agro processing, infrastructure and construction, mining, the green economy and manufacturing sectors as highlighted in the Industrial Policy Action Plan. Various initiatives are in place to promote exports of South African value added products and services, including:

The National Export Strategy

The Department is the process of reviewing the National Export Strategy. The objective of the NES is to increase South Africa's capacity to export diversified and value added products to various global markets and to strengthen South Africa's export performance by enhancing the trade and business environment and improving the competitiveness of companies and sectors. Key elements of the National Export Strategy include: Global competitiveness; Market Access, Prioritization and Diversification; Stakeholder Alignment; Exporter Development; Export Promotion; and Export l Incentives and Financing. The National Export Strategy will be finalized by the end of 2013.


Diversification Strategy

With the economic slowdown in South Africa's traditional trading partners (Europe and the United States of America), exports of manufactured products to these markets have been adversely affected. The current global economic environment, and in particular the Euro crisis, has meant that the future growth outlook in South Africa's traditional export markets will remain subdued in the years to come.

the dti's Export Diversification Strategy has been to shift focus to high growth emerging export markets in Africa, the BRlC countries, Asia and the Middle East, and to intensify engagement and promotional activities in these markets. the dti is focusing its efforts on these high growth emerging markets through various activities, including through National Pavilions at International Trade Shows, Investment and Trade Initiatives, Trade Missions and Special Projects. The shift in focus from traditional markets to emerging markets in Africa, Asia and South America has meant that the scale of these activities have been ramped up substantially. In the 2008/9 financial year, 42% of National Pavilions were to high growth emerging markets and in the 2012113 financial year, 85% of National Pavilions were to high growth emerging markets. In the 2008/9 financial year. 44% of trade missions were to traditional markets and in the 2012/13 financial year, this figure had grown to 57%.

National Pavilions

The department has intensified its global presence in international exhibitions, by approving a record 29 exhibitions for the year 2014/2015 (27 in 2013/2014) in which the dti will participate, in order to showcase South African goods and services to key markets, The focus areas for the current financial year are high growth emerging markets in Africa, Asia, Middle East and South America - 78% of the National Pavilions are in high growth emerging markets in Africa (30%),Asia (26%), Middle East (11 %) and South America (11 %).

Missions (Outward Selling, 'Inward Buying and Investment and Trade Initiatives
In the 2013114 financial year, the Department is organizing 45 trade missions, 5 investment and Trade Initiatives and 2 Special Projects to promote exports, mainly in key high growth markets.

Collaboration with Global Trade Promotion Agencies in order to create greater market access for South African goods and services The Department is collaborating with other Trade Promotion Organizations to promote exports of value added products. For example:
- The Department is collaborating with JETRO (the Japanese External Trade Organization) to roll out workshops in October 2013 on exporting food products to Japan and the requirements thereof;
- The Department is engaging with the Hong Kong Trade and Development Council on showcasing the jewellery and precious stones sector in this key regional trading hub;
- The Department has engaged with KOTRA (Korean Trade and Investment Promotion Agency) on promoting the luxury boat sector in this region and obtained their support for the Department's first participation in the Korea Boat Show in 2013.
- The Department has obtained consistent support from the Chinese Ministry of Commerce in efforts to shift the trade patterns with China away from commodity related products to value-added goods and services, by way of supporting the South African Expos in China.

Export Development

The department launched the National Exporter Development Programme in April 2013, which seeks to expand the exporter base and thereby increase exports. the dti together with the other implementing partners have successfully delivered on phase 1 of the Global Exporter Passport Programme (GEPP), on Export Awareness in the nine provinces. Currently, the dti is facilitating training in Phase 2 of GEPP (Introduction to exporting).

To date 279 potential exporters went through this Phase including Youth owned, Black owned and Women owned enterprises covering Gauteng, Mpumalanga and the Western Cape. This training will be rolled out in the other provinces between now and the end of November 2013 at no cost to the companies.

Reply received: October 2013

QUESTION 2693 FOR WRITTEN REPLY

2693. Mr G B D McIntosh (Cope) to ask the Minister of Trade and Industry:

Whether the Government liaises with Zimbabwe with regard to the (a) easing of trade facilitation and (b) elimination of delays across borders, especially on the Zimbabwean side; if not, why not; if so, what are the relevant details? NW3188E

Reply

The Department of Trade and Industry and its counterpart in Zimbabwe established a Joint Technical Committee on Trade and Investment (JTCI) on 1 November 2012. This Committee is established to address all issues of mutual interest on trade and investment. The Committee has met twice since its establishment: in Harare, in January 2013 and in Pretoria in March 2013.

It is envisaged that the next JTIC meeting will take place before the end of the current financial year. This JTIC will prepare the ground for a bilateral meeting between the Minister of Trade and Industry of South Africa and the new Minister of Trade in Zimbabwe. Issues under continuous discussion to resolve issues related to compliance with the SADC Protocol on Trade, delays at the Beitbridge Border Post and easing cross border trade. In addition the engagement will also offer an opportunity to address regulatory and other non-tariff barriers to bilateral trade and investment.

Reply received: October 2013

Question 2692

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

Whether from the time of its inception, the Proudly South African campaign achieved its goals of (a) sensitizing South Africans about the importance of creating jobs and (b) making South Africans respond; if not why not; if so what the relevant details? NW3186E

Response

The "Proudly South African campaign' is the principal responsibility of Proudly South Africa (PSA); an institution constituted under the National Economic, Development and Labour Council (Nedlac) inclusive of a Board, which is representative of business, labour and the community constituencies. The core objective of PSA is to promote South African products and services through public campaigns in support of localisation and job retention and creation.

Since its inception, successes have been achieved in popularizing the localisation message and securing a broad base of member companies for PSA. However it is true that in the recent past problems have been experienced. This has taken the form of falling private sector membership and subscriptions and limited tangible success with respect to changing the 'mind set' or responsiveness of companies and individuals to supporting Proudly South Africa.

Over the last two years efforts to reverse the decline have been based on a greater focus on programmes linked to the Procurement Accord, including a mobilization, education and training campaign inclusive of provincial and local government, business, labour and the community constituency.

It is of relevance that government has recently deployed a range of complimentary policy instruments in support of localisation, including Designations. This means that a stronger platform for a PSA campaign has been created, in which a buy local message can be more strongly anchored to other tangible programmes of localisation. In addition a multi-disciplinary team from the Department of Trade and Industry has been constituted and working in close consultation with Nedlac, PSA and key stakeholders, the team will evaluate the institutional arrangements and programmes of the organisation, in order to recommend inter alia, how these campaigns can be strengthened to secure greater responsiveness and support for localisation and the creation of decent jobs.

Reply received: October 2013

QUESTION 2682 FOR WRITTEN REPLY

2682. Adv A de W Alberts (FF Plus) to ask the Minister of Trade and Industry:

1. Whether he and/or his department have any research at their disposal to indicate in a scientific manner whether the broad-based black economic empowerment (BBBEE) policy and legislation are achieving their objectives; if not, on what basis are the BBBEE policy and legislation being assessed and is their continuation justified; if so, (a) why was the specified research not put before the Portfolio Committee on Trade and Industry for inspection prior to the said committee disposing of its proceedings in respect of the Broad-based Black Economic Empowerment Amendment Bill [B42-2012] and (b) when will it be made available to the said portfolio committee;

Reply:

The Department of Trade and Industry (the dti) conducted the first baseline study in 2008 with the objectives to implement an in-depth exploration of the nature and extent of Broad-Based Black Economic Empowerment, looking at the seven elements of the scorecard. The study covered all sectors of the economy. Furthermore, the study was aimed at measuring the extent of BBBEE through empirical research and to make observations on the progress made. The overall findings the study indicated that the economy was at level 8 (non-compliant).

the dti, in collaboration with the Presidential B-BBEE Advisory Council, commissioned a follow up study in 2012/2013. The outcomes of the aforementioned study indicate that the country has progressed with the implementation of B-BBEE to a certain degree. The overall picture indicates that the country is at level 4 of B-BBEE compliant. The make-up of such level 4 is that Exempted Micro Enterprise and Qualifying Small Enterprises are at level 3, and Large Enterprises are at level 6. The large enterprises, which are meant to drive transformation in the economy, are still lagging behind, as they are still battling to embrace and implement meaningful transformation.

These findings confirmed the recommendations made by the Presidential B-BBEE Advisory Council to review B-BBEE policy and therefore justified the continuation of the policy since there is still slow progress of transformation across the economy. This research will be presented to the Portfolio Committee in due course.

2. whether he has any research at his disposal to indicate whether any unintended effects have ensued or are still ensuing from the BBBEE policy, such as the impoverishment of white and brown people; if not, whether he intends to order such research; if so, (a) who did this research and (b) when will it be made available;

Reply:

B-BBEE policy is not meant to impoverish white people as it is a business imperative for companies to comply with B-BBEE in order to transform the economy. Therefore, both black and white companies are required to contribute to the transformation of the economy through B-BBEE. Furthermore, there is no white person who is impoverished because of the introduction and effects of B-BBEE.

There has never been any research to reflect the unintended consequences of the B-BBEE policy with regards to the impoverishment of white people; in this regard the Department will welcome such study from the honourable member.

3. whether he intends to introduce policy adjustments and/or alternative policies and legislation to counteract any negative effects from black economic empowerment; if not, why not; if so, what are the relevant details;

Reply:

The current process of amending the BEE legislation is an attempt to counteract the negative or unintended consequences of BEE.

4. (a) what number of black economic empowerment transactions that have been executed to date is not recognised by his department as black economic empowerment and (b) what is the reason for this? NW3174E

Reply:

The soon-to-be established B-BBEE Commission will be responsible for analysing B-BBEE transactions that are above a certain threshold (still to be pronounced by the Minister of the dti). As such, the Department will be able to provide a detailed analysis.

Reply received: October 2013

QUESTION: 2667

Mr M Hlengwa (IFP) to ask the Minister of Trade and Industry:

(1) (a) How many disciplinary cases are outstanding in his department and (b) what is the nature of each case;

(2) (a) how long have these cases been on-going and (b) when will most of them be concluded;

(3) whether the person who are being charged have been suspended; if not, why not if so, for how long will they be suspended;

(4) whether the specified persons are still receiving their salaries; if so, what is the total cost of their salaries to the State? NW3156E

RESPONSE:

(1)(a) The total number of outstanding disciplinary cases is two (2) cases as on
30 September 2013 and two (2) suspended officials who have not yet been charged; and

(b) The nature of the disciplinary cases relates to one (1) case of falsification of a medical certificate and one (1) case of gross insubordination.

(2) Officials charged and not suspended

Nature of cases

Number of cases

(a) Number of days

(b) Close date

Falsification of a medical certificate

1

05

15 October 2013

Gross insubordination

1

93

Pre-dismissal arbitration referred to the Bargaining Council

Total

2

(2) Officials not yet charged but suspended

Nature of cases

Number of cases

(a) Number of days suspended

(b) Close of investigation date

Allegations of victimisation of staff, unfair treatment and abuse of power

1

66

7 October 2013

Allegations of non-compliance with Conflict of Interests Policy

1

28

16 October 2013

Total

2

(3) The officials charged as per response (1) above, were not suspended as the disciplinary enquiries did not warrant further investigation. However, two (2) further officials have been placed on precautionary suspension, pending forensic investigations. The total number of days that the officials have been suspended are 66 and 28 days, respectively.

(4) The specified suspended officials are receiving their salaries and the total cost of their salaries to the State, to date is R242, 365.42.

Reply received: October 2013

QUESTION 2657 FOR WRITTEN REPLY

2657. Mr N J van den Berg (DA) to ask the Minister of Trade and Industry:

(1) Whether any performance bonuses were paid to employees in his department in the 2012-13 financial year; if so, what is the total (a) number of employees that received bonuses and (b) amount paid out by his department for these bonuses;

(2) what percentage of outputs were achieved by his department as measured against each target set in its Annual Performance Plan in the 2012-13 financial year? NW3146E

Reply:

(1) Yes.

(a) Performance Bonuses were paid to 334 employees during the 2012/2013 financial year.

(b) The amount paid out during the 2012/2013 financial year is R 9,515,000.

(2) The department in its Annual Performance Plan in the 2012-13 planned 56 targets and had a 64 % achievement rate against the strategic outputs. 36 % of planned targets were recorded as not being fully achieved; however significant progress was made towards achieving the said targets, as is captured in the Annual Report 2012/13.

Reply received: October 2013

QUESTION 2624 FOR WRITTEN REPLY

2624. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

Question

NLB Response

1.

Why was a certain person (Chairperson) present at an official ministerial imbizo hosted by the Minister of Police on 27 August 2013 at the Intsebenziswano High School in Philippi East, which focused on policing issues in the community?

The Chairperson attended two community events in his capacity as the NLB Chairperson on 27 August as an invited guest of the Minister of Police. The events were in Mitchells Plein and Phillipi. The Minister advised in his invitation that he would be embarking on a campaign in these two areas that were identified as the areas most affected by crime and drugs. The NLB funds NGOs (e.g. NICRO) that addresses the problems with crime and drugs.

2.

Whether he will make available the code of ethics governing the professional behaviour of the said person;

The Lotteries Act details the role and functions of the NLB Board Members and the PFMA details the roles and responsibilities of accounting authorities managing public funds. NLB has its own code of ethics for Board Members, Distributing Agency Members and Staff.

3.

Whether being impartial is a necessary prerequisite for any incumbent in the position of the Chairperson of the NLB;

Yes, impartiality is important. All dti agencies are required to ensure strategic alignment with departmental strategies and objectives.

4.

Whether party-political comments by an incumbent in the position of the person are considered inappropri-ate; if so,

The Chairperson attended the function in his capacity as NLB Chairperson. Comments made related to the activities of the NLB.

5.

Whether he will take any action in this regard, including but not limited to, cautioning the person from making party-political remarks?

The NLB Chairperson spoke on behalf of the NLB and did not make any party political comments and there will be no need for him to be cautioned.

Reply received: November 2013

QUESTION 2592 FOR WRITTEN REPLY

2592. Mrs H Lamoela (DA) to ask the Minister of Trade and Industry:

How much has (a) his department and (b) each of the entities reporting to him spent on promotional events organised by The New Age newspaper between 01 September 2012 and 30 August 2013? NW3079E

(a) Response from the Department of Trade and Industry (the dti):

The Department has not spent on promotional events organised by The New Age Newspaper in the mentioned period.

(b) Response from the Entities:

Entities

Total Spent on promotional events incurred by the Entities for 01/09/2012-30/08/2013

Promotional events organised by the New Age newspaper between 01/09/2012 – 30/08/2013

Promotional events organised by New Age as a percentage of the total amount spent on promotional items for 01/09/2012-30/08/2013

Small Enterprise Development Agency (seda)

R 4 273 214.89

• 04/10/2012, R77 319.36 for the seda Top Women Awards advertisement;

• 15/10/2012, R77 319.36 for the ISBC advertisement;

• 15/10/2012, R154 638.72 for the ASF advertisement;

• 31/10/2012, R14 261.40 (table booking) for the briefing session at the Hilton Hotel with the Minister of Trade and Industry (the dti);

• 12/12/12, R77 319.36 for the seda Success Story advertisement; and

• 14/12/2012, R77 319.36 for the seda Success Story advertisement.

0.11%

Companies and Intellectual Property Commission (CIPC)

None

None

0%

Export Credit Insurance Corporation (ECIC)

R6 255.00

29 October 2012, R6 225.00 for a breakfast for 10 delegates hosted by the New Age and the SABC on which occasion the Minister of the dti introduced the new Broad Based Black Economic Empowerment (B-(B-BBEE) Codes of Good Practice.

0,76%

National Credit Regulator (NCR)

None

None

0%

National Consumer Tribunal (NCT)

None

None

0%

National Empowerment Fund (NEF)

R 2 642 812.03

23 October 2012, R7 130.70 for a table booking for 10 delegates hosted by the Minister of the dti. The subject of discussion was Broad Based Black Economic Empowerment (B-BBEE) Codes of Good Practice

0,27%

National Gambling Board (NGB)

None

None

0%

National Metrology Institute of South Africa (NMISA)

R 309 826.66

None

0%

National Regulator for Compulsory Specifications (NRCS)

R 647 410.26

None

0%

South African Bureau of Standards (SABS)

R 2 515 000.00

29/10/2012, R 7 130.70 for the breakfast session (one (1) table booking) for 10 SABS delegates covered live on SABC Morning Live. The Minister of the dti briefed business on the proposed changes to the B-BBEE Codes of Good Practice.

0,28%

South African National Accreditation System (SANAS)

None

None

0%

National Lotteries Board (NLB)

R 19 807.50

The NLB attended 3 business breakfasts as follows:

· 8/10/2012, R7 130.70 Business breakfast with Dr. Nkosazana Dlamini-Zuma

· 29/10/2012, R7 130.70 Business breakfast with the Minister of Trade and Industry

· 9/01/2013, R5 546.10 Business breakfast to fund the 2013 Africa Cup of Nations (AFCON) volunteer programme.

8,64%

National Consumer Commission (NCC)

None

None

0%

Companies Tribunal (CT)

None

None

0%

Reply received: October 2013

Question 2551

Mr T D Harris (DA) to ask the Minister of Trade and Industry:

With respect to the Manufacturing Competitiveness Enhancement Programme, (a) how many applications have been approved in the (i) 2008-2009, (ii) 2009-10, (iii) 2010-11, (iv) 2011-12 and (v) 2012-13 financial years, (b) how much was invested by the private sector companies in each specified year, (c) how much in departmental grants were committed in each year, (d) how many permanent jobs were created for the successful applications in each specified year and (e) what steps were taken to ensure that these jobs were sustainable?NW3038E

Response NW3038E

(a) Manufacturing Competitiveness Enhancement Programme was launched in May 2012.

During the 2012-13 financial year, a total of 197 investment projects/applications by manufacturers were approved.

(b) During 2012-13, the total investment by the approved projects was projected at R4.2 billion.

(c) The total grant committed for the 197 applications approved in 2012-13 is R983 million.

(d) At application stage, approved enterprises in 2012/13 reported a total of 33 372 jobs to be sustained.

(e) Claims are only paid to enterprises once proof that the baseline jobs reported at the application

stage are sustained is provided.

Reply received: November 2013

QUESTION 2549 FOR WRITTEN REPLY

2549. Mr T D Harris (DA) to ask the Minister of Trade and Industry: [Interdepartmental transfer on 1 November 2013]

With reference to section 12I of the Income Tax Act, Act 58 of 1962, (a) how many applications have been approved in the (i) 2008-2009, (ii) 2009-10, (iii) 2010-11, (iv) 2011-12 and (v) 2012-13 financial years, (b) how much tax revenue was forgone in each specified year, (c) how many permanent jobs were created for the applications in each specified year, (d) what was the average planned remuneration for each job in each specified year and (e) what steps were taken to ensure that these jobs were sustainable?NW3036E

Response NW3036E

(a) How many applications have been approved in the (i) 2008-2009, (ii) 2009-10, (iii) 2010-11, (iv) 2011-12 and (v) 2012-13 financial years

The 12I Tax Allowance was launched in November 2010 thus the first applications were approved during 2011/12 financial year. Table 1 below presents these approvals.

TABLE 1: 12I APPROVALS FOR 201/12, 2012/13 AND 2013/14

Financial year

Number of approved projects

Tax allowance approved

Projected Jobs

2011-2012

14

R4 866 833 299[1]

1969

2012-2013

12

R3 358 650 077[2]

1357

2013-2014

3

R1 954 761 371[3]

574

Total

29

R10 180 244 747

3 900

(b) How much tax revenue was forgone in each specified year

The actual tax forgone will only be confirmed when the companies make claims through the South African Revenue Service.The projected tax revenue forgone, shown in Table 2 below, represents only the projected commitments by government which are 28% of the total tax allowance approved.

TABLE 2: 12I TAX REVENUE FORGONE

Financial Year

Tax Revenue

Foregone

2011-2012

R1 362 713 323

2012-2013

R940 422 021

2013-2014

R547 333 184

Total

R2 850 468 528

(c) How many permanent jobs were created for the applications in each specified year

The actual jobs have not yet been created by the approved projects as they have not yet established or commenced with production. The jobs presented in the table above are projected at application stage.

(d) What was the average planned remuneration for each job in each specified year

The companies are required to provide in their financial statements the total wage bill (not broken down into the average remuneration for each job) of which 2% should be spent towards skills development requirement. the dti uses this information to calculate the training allowance.

(e) What steps were taken to ensure that these jobs were sustainable

At this stage the dti only report projected jobs. Once the projects are established, performance reports with actual jobs created, amongst other performance indicators, are submitted by companies during the course of the year to the dti which then consolidate them into an annual report and submit it to Parliament. Although the sustainability of jobs is not an objective of the 12I tax allowance programme, information on plans to sustain created jobs will be requested from beneficiaries when they submit these reports.


[1] Includes R61 million training allowance

[2] Includes R50 million training allowance

[3] Includes R20 million training allowance

Reply received: September 2013

Question 2500

Mr M A Nhanha (Cope) to ask the Minister of Trade and Industry:

(1) Whether South Africa has a set tariff for sugar imports; if not, why not; if so, what are the relevant details;

(2) Whether imported sugar still needs to be tested for local compliance with food labeling regulations; if not, why not; if so, what are the relevant details? NW2996E

Response:

The import of sugar into South Africa is subject to a variable tariff formula introduced in 2009. The variable tariff formula operates on the basis that South African domestic prices should be equal to the long-term world reference price after adjustment for transport costs and for the effect of interventionist policies followed by other major sugar producing countries.

In terms of this formula the protection for the industry is calculated as the difference between the reference price of US$358 and a 20 day average price for white sugar. Adjustments to the tariff are triggered when the 20 day price shows a variance with the reference price of more than US$ 20/ton for 20 consecutive days. The amount of the difference is converted to Rand at the R/US$ exchange on the day the adjustment was triggered. The sugar industry therefore enjoys tariff protection if the international sugar price falls below the reference price of US$358.

In terms of this tariff formula, given the current world prices, the applied rate of duty on raw and refined sugar products is zero. However, the South African Sugar Association (SASA) has applied to the international Trade Administration Commission (ITAC) for a review of the tariff formula to increase in the dollar-based reference price for sugar from the existing US$358/ton to US$764.34/ton. The application by SASA is in the publication phase and was published on 20 September 2013 in the Government Gazette No. 36849, Notice No. 945 of 2013 for a period of 4 weeks, to afford interested parties an opportunity to comment on the application. Once ITAC has finalised its investigation, recommendations in this regard will be submitted to me for consideration.

With regard to labeling all goods, domestically produced or imported into South Africa must bear trade descriptions. Trade descriptions, in terms of the Consumer Protection Act (CPA) means amongst other things, the number, quantity, measure, weight or gauge of the product; the name of the producer; the ingredients or material used in the goods; the place or country of origin; the mode of manufacturing. In terms of the CPA, a supplier cannot knowingly apply to any goods, a trade description that is likely to mislead the consumer.

Reply received: September 2013

Question 2482

Ms S R Berend (Cope) to ask the Minister of Trade and Industry:

(1) Whether the Government envisages creating a protection (a) policy and (b) tariff for classified imported goods that impact on local productivity, farming, agriculture and manufacturing; if not, why not; if so, what are the relevant details with regard to (i) chickens, (ii) eggs and (iii) sugar;

(2) whether the importation of such good and subsequent testing, labeling and warranties are in line with the Consumer Protection Act, Act 68 of 2008; if not, why not; if so, what are the relevant details? NW2971E

Response:

South Africa's economic development strategy aims to accelerate growth and industrial development along a path that generates sustainable and decent jobs. Trade policy supports industrial development and upgrading, agricultural development, employment growth and increased value added by adopting a developmental approach to tariff reform.

A strategic developmental approach to tariff reform in South Africa is pursued on a case-by-case basis and is evidence-based. As a general guideline, tariffs on mature upstream input industries could be reduced or removed to lower the input costs for the downstream, more labour creating manufacturing. Tariffs on downstream industries, particularly those that are strategic from an employment or value-addition perspective, may be retained or raised to ensure long-term sustainability, and job creation. Tariff increases will be considered in the context of South Africa's international trade obligations.

The Government may adjust tariffs when a recommendation to that effect is received by the International Trade Administration Commission of South Africa (ITAC) based on investigation in terms of the relevant provisions of the International Trade Administration Act. Act No 71 of 2002 and its supporting tariff investigation regulations.

In agriculture, we need to take into account that subsidies and domestic support provided by developed countries to their agriculture sector have the effect of depressing world prices to the disadvantage of the domestic agricultural sector in developing countries including in South Africa. Tariff setting for agricultural products needs to balance the profitability of famers with food security needs of the population, particularly for poor people.

With respect to the specific products, the domestic poultry industry has submitted an application to ITAC for investigation into an increase in general customs duty on frozen chicken meat. Specifically, the South African Poultry Association (SAPA) on behalf of its members, applied in March 2013 for an increase in the rate of customs duty on carcasses, other whole bird, boneless cuts, offal and other bone-in portions classifiable under tariff subheadings 0207.12.20, 0207.12.90, 0207.14.10, 0207.14.20 and 0207.14.90, respectively. ITAC's investigation of a revised tariff structure for chicken meat has been completed and its recommendations submitted to me for consideration. I have made a decision in this regard and my decision will be made public once internal legal processes have been finalised.

ITAC has not received a request for a tariff intervention in terms of the sector related to fresh eggs, which are currently classifiable under tariff subheading 0407.21 under the description of "Birds' eggs, in shell, fresh, preserved or cooked, of fowls of the species Gallus Domesticus", with a duty free rate.

The South African Sugar Association (SASA) has applied to ITAC for an review in the tariff formula to increase in the dollar-based reference price for sugar from the existing US$358/ton to US$764.34/ton. The application by SASA is in the publication phase and was published on 20 September 2013 in the Government Gazette No. 36849, Notice No. 945 of 2013 for a period of 4 weeks, to afford interested parties an opportunity to comment on the application. Once ITAC has finalised its investigation, recommendations in this regard will be submitted to me for consideration

All goods imported into South Africa are subject to domestic rules that apply to quality, food safety and consumer protection. The Consumer Protection Act (CPA) alongside the Agricultural Products Standards Act, the Metrology Act, the Foodstuffs, Cosmetics and Disinfectants Act and the National Regulator for Compulsory Specifications Act set standards for which all goods produced or imported into South Africa must comply. These set rigorous standards for amongst other things, testing, quality, labeling and warranties for products.

Reply received: September 2013

Question 2422

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

(1) What was the rationale for the formulae for the calculation of the maximum interest rates applicable to the various credit products in the National Credit Act, Act 34 of 2005;

(2) whether research has been conducted on the impact of these formulae for the calculation of maximum interest rates on the (a) number of impaired consumer profiles, (b) over-indebtedness generally and (c) effect on the poorest credit consumers particularly; if so, would he make such research available to Mr G G Hill-Lewis;

(3) will he make a policy statement on whether he will support the revision of these formulae? NW2907E

Response according to the National Credit Regulator:

1. The Department of Trade and Industry conducted a review of the consumer credit legislation from 2002. The review found that there was unfair differentiation in the charging of interest based on different segments of the market. Consumers who were prime clients with prime mortgages could obtain vehicle finance at the same rates as their mortgages and could also obtain credit card finance and store card finance at rates varying from prime rates to the Usury Act cap of about 29%. The other consumers (marginal) who were not in the prime segment of the market could obtain vehicle finance and personal loans at very high interest rates of up to 35%. The prime market was actively contested and competitive while the marginal market had limited competition on the price of credit.

It was clear that the interest rate regime at the time caused the division between the prime market and the marginal market and that the cost of credit was very high in the marginal segment of the market.

2. The National Credit Regulator monitors the level of consumer indebtedness and impaired credit records and consumers through the Credit Bureau Monitor which is published on a quarterly basis. The causes of consumer indebtedness are multi-dimensional and complex. These include, amongst others, reckless lending, inadequate assessment of affordability, job losses, inflation, increases in administered prices, unplanned changes in the personal circumstances of consumers. The formula for the calculation of interest is not per se the cause of consumer indebtedness. The formula presents an objective manner in which the rate of interest is calculated and provides flexibility for the benefit of consumers. As the formula is linked to the Reserve Bank's repurchase rate, consumers have benefited from interest rate reductions when the repurchase rate was decreased by the Reserve Bank.

3. The NCR is embarking on a review of the cost of credit which focuses on the appropriateness of the rates and not the formulae used to calculate the rates.

Reply received: September 2013

QUESTION 2421 FOR WRITTEN REPLY

2421. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

Whether his department will be partaking in a trade fair in Zimbabwe in September or October 2013; if so, (a) what is the name of the trade fair, (b) what is the total cost of participation to his department, (c) which local municipalities were invited to participate, (d) which local companies are participating, (e) what is the total cost of participation for each partaking municipality and (f) what are the benefits of participation for the municipalities? NW2906E

Reply:

a) The department (the dti) will not be participating in any trade fair in Zimbabwe in September nor October 2013. The department is organizing its 5th annual Investment and Trade Initiative (ITI) to Zimbabwe (in Harare and Bulawayo) from 14-18 October 2013, which will be led by Deputy Minister Thabethe. The programme for the ITI will comprise of an exhibition, sectoral round table discussions, business to business meetings and site visits in each city. The objective of this initiative is to increase trade and investment between South Africa and Zimbabwe. It is an ideal platform for South African companies who would like to export value added products and services and for companies who are looking for investment opportunities in Zimbabwe.

b) The total budget for the 5th ITI to Zimbabwe amounts to R3.2 million.

c) The invitation was sent to all 9 provincial trade and investment promotion agencies for them to recruit companies in their respective provinces to participate in the 5th ITI to Zimbabwe.

d) 46 companies have applied to participate in the 5th ITI to Zimabwe, through the dti's Export Marketing Incentive Assistance (EMIA) scheme. the dti is in the process of finalizing the approval of participating companies. By 1 October 2013, a list of participating companies will be available.

e) Companies that have applied to participate at this ITI under EMIA scheme will be funded by the dti. There are some companies that opt to participate at their own cost.

f) Participating companies will have an opportunity to interface with their Zimbabwean counterparts with the aim of forging partnerships and joint-ventures. This ITI will increase the market knowledge of participating companies about the Zimbabwean market and the know-how to do business in Zimbabwe. It will also allow participating companies an opportunity to identify distributors of their products in Zimbabwe and to generate export sales (and orders).

Reply received: September 2013

Question 2404:

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

Whether the SA Council for the Non-Proliferation of Weapons of Mass Destruction (a) received an (i) import and (ii) export application, (b) issued an (i) import and (ii) export permit and (c)(i) received a manufacturing and services application and (ii) issued a manufacturing and services permit for any controlled good/s from and to Syria during the period 1 April 1994 up to the latest specified date for which information is available; if not, why not; if so, in each specified case, (aa) when was the (aaa) application received and/or (bbb) permit issued, (bb) what (aaa) kind and (bbb) quantity of controlled goods were (aaaa) imported, (bbbb) exported and (cccc) manufactured and (cc) what was the value of the controlled good/s? NW2888E

Response:

Records of the SA Council for the Non-Proliferation of Weapons of Mass Destruction since 2 December 1998 to date indicate that no permit applications was received for the import or export of controlled goods from or to Syria. Subsequently no import or export permits was issued for controlled goods from or to Syria. Manufacturing and services permits are only applicable to in country activities regarding certain selected controlled goods and not related to any specific export destination. The SA Council for the Non-Proliferation of Weapons of Mass Destruction provides a consultation service to industry to guide industry on destinations that may be of concern and thus prevent unnecessary denials. If required, records of the period 1 April 1994 to 1 December 1998 could also be scrutinized but would require more time for retrieval of records from archives.

Reply received: September 2013

QUESTION 2347 FOR WRITTEN REPLY

2347. Mr N L Kwankwa (UDM) to ask the Minister of Trade and Industry:

Whether his department has introduced tariff protection to shield the struggling poultry industry from unfair foreign competition; if not, why not; if so, what are the relevant details? NW2838E

Response:

I have made a decision on tariff protection for the poultry industry but there are still some internal legal processes that have to be finalised before the decision can be made public.

Reply received: September 2013

QUESTION 2385 FOR WRITTEN REPLY

2385. Mr L S Ngonyama (Cope) to ask the Minister of Trade and Industry:

Whether he has found that trade links between South Africa and the Southern African Development Community (SADC) should be revisited; if not, how was this conclusion reached; if so, what are the relevant details? NW2868E

Response:

South Africa and SADC Member States' trade links are governed by the SADC Trade Protocol, which has established a free trade area among 12 SADC member states. The tariff phase-down commitments have largely been implemented and almost all tariffs reached zero in 2012. Over 90% of trade in SADC is now duty free.

SADC Member States committed themselves to reach full compliance with their SADC obligations by 2012. While most members have met their obligations, some have experienced difficulties in completing the phase-down schedule and there are cases of some increased duties against exports from South Africa. the dti is fully engaged in working constructively with those SADC members to meet their obligations and ensure that regional trade continues to expand. We are also working to address other non-tariff barriers to regional trade including with respect to promoting trade facilitation measures.

Reply received: September 2013

QUESTIONS 2346 FOR WRITTEN REPLY

2346. Mr N L Kwankwa (UDM) to ask the Minister of Trade and Industry:

Whether any steps have been taken to reduce the red tape that is stifling trade with the African continent; if not, why not; if so, what steps? NW2837E

Response:

Tariff barriers to trade within the Southern African Development Community (SADC) have been removed to a considerable extent. This was done through the implementation of the SADC Trade Protocol, which established a free trade area among 12 SADC member states. The tariff phase-down commitments have largely been implemented and almost all tariffs reached zero in 2012. Some member states are however not fully compliant with their commitments. The department continues its work in the relevant SADC fora and on bi-lateral level to achieve full compliance.

South Africa is also participating in the Tripartite Free Trade Area negotiations between the East African Community, Common Market for East and Southern Africa (COMESA) and SADC which aim to combine markets of 26 countries with a population of nearly 600 million and a combined GDP of US$1 trillion. The main objective of the TFTA is to provide market scale that could launch a sizeable part of the continent onto a new developmental trajectory.

Non-tariff barriers (NTBs) to trade remain a significant impediment to trade. The 26 countries of the Tripartite region have established an on-line monitoring and reporting system for NTBs. As a reporting tool it works well, however, the resolution of the NTBs reported remains slow and difficult. Many NTBs require regulatory or legislative changes. Nevertheless, some success has been achieved: of 461 complaints registered in the system, 352 are reported as having been resolved. One should caution though that what is in some cases recorded as resolved, was in fact only explained in terms of the underpinning legislation, rather than resolved/changed. Customs and border procedures, and transport-related issues and infrastructure bottlenecks remain a key challenge in the African continent. South Africa has considerably modernized and streamlined its customs procedures through the Customs Modernization Programme developed and implemented by SARS.

Reply received: September 2013

QUESTION 2272 FOR WRITTEN REPLY

2272. Mr G B D McIntosh (Cope) to ask the Minister of Trade and Industry:

With reference to the institutional investors survey in the United States of America (USA) by a certain firm (name furnished) which found that 80% of institutional investors surveyed in the USA are unaware of investment opportunities in South Africa, what challenges are faced by South African role-players to attract foreign direct investments? NW2704E

RESPONSE TO PQ 2272

Trade & Investment South Africa (TISA), a division of the dti, is mandated to promote direct investment into South Africa and not institutional or portfolio investment. Portfolio investment can be short term in nature. South Africa has four missions in the USA responsible for promoting South Africa's interests staffed mainly by officials from DIRCO and the dti. Brand South Africa also has a country office in Washington, USA. TISA only promotes foreign direct investments and collaborates with a range of institutions, including the USA Commercial Services and the American Chamber of Commerce in Johannesburg which provides support and information service to USA investors. TISA hosts and partners the above in business forums, missions and in meeting prospective investors. The USA remains a significant investor and trading partner of South Africa with more than 600 firms operating in South Africa. Recent investments and expansions by Ford, GM, Kimberley Clarke, Proctor & Gamble and Amazon amongst others have been facilitated by the dti. The Proctor and Gamble is a significant greenfield project of R1.6 billion rand. Large scale advertising and media campaigns in these markets are costly. TISA advertises in targeted selected media to prospective foreign investors through international publications such as the Financial Times and FDI Magazine which are widely circulated to the business community. In the August 2013 edition of the FDI Magazine, a publication of the Financial Times, South Africa features prominently having been the overall winner for FDI countries of the future 2013/14 in Africa.

Reply received: September 2013

QUESTION 2262 FOR WRITTEN REPLY

2262. Mrs J D Kilian (Cope) to ask the Minister of Trade and Industry:

(1) With reference to the mandate of the National Empowerment Fund (NEF) to promote broad-based black economic empowerment (BBBEE),

(a) What

(i) is the specific mandate of the NEF?

The NEF was established by the National Empowerment Fund Act No. 105 of 1998, to promote and facilitate the ownership of income generating assets by historically disadvantaged persons.

The NEF promotes and facilitates black economic participation through the provision of financial and non-financial support to black empowered businesses, as well as by promoting a culture of savings and investment among black people.

As such, the NEF advances and recovers funding to black empowered businesses across all sectors and stagesof business at a nominal real return in order to advance the implementation of sustainable Broad-Based Black Economic Empowerment (B-BBEE) as provided for in the B-BBEE Act.

(ii) measures have his department put in place to ensure the NEF gives effect to the Government's policies with regard to BBBEE and

The NEF is required to provide detailed Annual Performance Plans to the dti on an annual basis, which sets out the strategic objectives and key performance indicators of the organization. These are reviewed and approved by the dti, before being contracted into the Shareholder Compact, which is signed by the Minister of Trade & Industry and the Chairperson of the NEF. The NEF is required to report and present the achievements it has made against the targets set in the Annual Performance Plan, in quarterly Performance Reports. These Performance Reports allows the dti to track performance and implementation of policies.

The Deputy Director-General responsible for Broadening Participation also serves as the dti representative on the NEF Board.

(iii) amounts have been transferred from his department to NEF in the

(aa) 2011-12,

(bb) 2012-13 and

(cc) for the 2013-14 financial years,

The NEF has not received any transfers from National Treasury during the periods listed.

(b) which specific project were financed by the NEF in the specified financial years and

(c) what were the specific amounts allocated to each of these project in the specified financial years;

The NEF provides funding to black businesses through various funding products housed in its uMnotho, iMbewu, Strategic Projects and Rural & Community Development Funds. Below is the achievement of each Fund during the periods 2011/12 and 2012/13.

Financial Year

Number approved

Value approved (R )

2011/12

68

736 715 548

2012/13

76

665 883 396

1 April 2013 – 31 July 2013

24

191 157 952

Total

168

1 593 756 896

In summary, for the years mentioned, the NEF approved the following number and value of deals:

The summary/ totals by sector are as follows:

Sector

Number approved

Value approved

Agro Processing

13

145 285 973

Arts & Culture

1

12 250 000

Chemicals & Pharmaceuticals

2

20 700 000

Construction & Materials

24

216 371 584

Distributors, dispatchers, processors

2

15 800 000

Energy

25

201 563 380

Engineering

8

164 920 000

Financial Services

4

19 400 000

Food & Beverage

9

41 288 150

ICT

3

7 215 130

Manufacturing

9

129 770 000

Media

3

70 644 000

Mining

2

31 500 000

Motor

1

2 186 080

Property

2

7 300 000

Retail

24

184 974 295

Services

26

244 173 744

Textile

2

11 500 000

Tourism & Entertainment

2

23 271 460

Transportation

6

43 643 100

Total

168

1 593 756 896

(2) whether any cap was placed on loan amounts to be granted by the NEF in order to specifically promote small, medium and micro enterprises (SMMEs); if not, why not; if so, what are the relevant details;

The NEF provides funding to black empowered businesses and entrepreneurs from R250 000 to R75 million across a range of sectors, for venture capital, start-up, expansion and business acquisition purposes. These limits were set based on work done by the NEF's Risk unit to establish the risk tolerance, risk bearing capacity and risk appetite of the NEF. However within the above funding range, SME sector normally occupies funding size of between R250,000 up to R15 million.

(3) whether the R34 million loan allocated to the owners of a certain fashion boutique (name furnished) complies with Government's policy of BBBEE and the mandate of the NEF; if not, what intervention does his department intends to make to rectify the situation; if so, how is it justified;

Ndalo Luxury Ventures / Luminance is a new South African fashion and lifestyle business venture, which is owned 100% by black women; KhanyiDhlomo (32.5%), Venetia Dhlomo (32.5%), NondunaInv (15%) and NEF (20% warehoused for Rural Women, Management & Staff Trusts).

The NEF has assessed the loan application in terms of the following criteria:

§ minimum percentage of black ownership or interest,

§ black women empowerment,

§ black managerial and operational involvement,

§ commercial viability of the business,

§ job creation,

§ specific product criteria,

§ geographic location of the business (rural/urban/disadvantaged areas),

§ community involvement,

§ compliance with all the relevant laws and regulations,

§ return on investment, and

§ the possibility of co-funding with another public or private sector institution.

The features of this transaction are in line with the NEF's objectives. In addition, the transaction supports the economic empowerment of black women as well as the economic empowerment of rural women. In addition, the transaction supports 51 direct jobs, over 100 jobs indirectly maintained and many more downstream.

Key features of the transaction include:

  • NEF Board IC approved the transaction in Aug 2012 & NEF advanced R34.1 million loan to NLV over a 5-year term;
  • 5 years shorter than 10 years period permitted under the NEF's New Ventures Finance product;
  • Fully secured by all business assets and shareholders including personal guarantees;
  • Final internal rate of return of 14.5%;
  • Loan repayments have already commenced.
  • The black-women shareholders contributed R15million equity into the transaction, which ranks as the highest ever contributed as owners' contribution.
  • Over 70% of the total investment has remained in South Africa to support the domestic economy
  • The Luminance collection is designed in South Africa to suit the specific needs of the South African market.
  • 71% of the Luminance collection is manufactured in South Africa by Karma Clothing, a women–owned factory located in Wynberg, Gauteng.
  • The factory employs over 100 local women from the Alexandra Township.
  • The balance of the collection is manufactured in Italy to enhance the quality of the local brand
  • The directive issued by the Minister of Trade and Industry is as follows:

    § Government funds may not be used to support the importation of finished goods and services. Where local suppliers do not exist, the agency must obtain the concurrence of the dti's Accounting Officer and Executive Authority to deviate from this instruction.

    § Agencies should make every effort to find local suppliers of finished, intermediate and capital goods.

    § Where agencies provide support directly to private enterprises, agencies should actively encourage these enterprises to procure locally. Enterprises may also be referred to the Industrial Procurement Unit at the dti for assistance in finding local suppliers.

    § Government funds are to be prioritised to supporting the productive sectors of the economy, namely Agriculture, Mining, Manufacturing and Value-added Services such as Tourism, Business Process Services and the Creative industries.

    (4) whether the NEF is liquid enough to allocate funding to other projects; if not, what is the position in this regard; if so, what are the relevant details;

    The NEF Board of Trustees has resolved to temporarily suspend the approval of new transactions at the end of May 2013, pending the successful recapitalisation of the NEF. This decision has been taken in response to the risk that the NEF may not have sufficient capital for expansion. The NEF has sufficient capital to cover operational expenditure, but has deemed it prudent to suspend the funding of new transactions

    (5) whether his department

    (a) has to recapitalise the NEF and

    (b) does it require National Treasury's approval before the recapitalisation can take place; if not, why not; if so, what are the relevant details? NW2692E

    (a)The NEF does indeed require recapitalization in order to continue/deliver in terms of its 3 year Annual Performance Plan.

    (b)The NEF has applied for recapitalization through the MTEF process.

    Reply received: August 2013

    Question 2149

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

    (1) Whether any staff member in his department (a) performed work in addition to the responsibilities related to his or her work, outside normal working hours, in the (i) 2008-09, (ii) 2009-10, (iii) 2010-11, (iv) 2011-12 and (v) 2012-13 financial years and (b) has been performing such work during the period 1 April 2013 up to the latest specified date for which information is available; if not, how is it determined whether such work is being performed or not; if so, in each case, (aa) how many staff members and (bb) in what job or work categories are the specified staff members employed;

    (2) whether approval for such work was obtained in each case; if not, what are the relevant details; if so, (a) what is the policy of his department in this regard, (b) by whom are such applications considered and approved, (c) how many contraventions of this policy were brought to the attention of his department in the (i) 2010-11, (ii) 2011-12 and (iii) 2012-13 financial years and (d) what steps have been taken against transgressors? NW2571E

    RESPONSE:

    Please see attached reply

    It is the commitment of the leadership of the Department to subject all applications to careful scrutiny against real or potential conflict of interest and to take the necessary steps in any instance of wilful non-compliance.

    Reply received: August 2013

    QUESTION 2116 FOR WRITTEN REPLY

    2116. Mr M Mnqasela (DA) to ask the Minister of Trade and Industry:

    (a) Does his department prepare quarterly interim financial statements and (b) are these statements considered by the Audit Committee?

    Reply

    The department prepares and submits quarterly interim financial statements as per National Treasury requirements. It is however, not a requirement for the Audit Committee to consider the interim financial statements.

    Reply received: August 2013

    QUESTION 2031 FOR WRITTEN REPLY

    2031. Mr M Hlengwa (IFP) to ask the Minister of Trade and Industry:

    (a) How many young persons from rural areas have benefited from the National Empowerment Fund (NEF) from 1 January 2012 to date and (b) what is being done by his department to ensure that their businesses are sustainable?

    Response

    NEF under the Rural and Community Development Fund has undertaken the following transactions where the youth is empowered either being employed or a shareholder

    Transaction

    Amount (Mil)

    # of people Employed

    Average Ages

    Women % Shareholding

    Sustainability achieved through

    Dihoai

    R8.40

    25

    30

    50%

    Experienced promoter supported

    Rhino Ridge

    R20.50

    94

    32

    60%

    Experienced promoter and management company

    Mohale Agri Co-op

    R13.20

    68

    31

    60%

    Experienced promoter and appointment of a mentor

    Ga Matlala Roof & Title

    R10.60

    27

    31

    60%

    Assisted with regulatory requirements; i.e. EIA and Water Rights

    Berlin Beef

    R26.80

    195

    35

    33%

    Experienced promoter and Assisted with regulatory requirements; i.e. EIA

    Amani Spa

    R5.00

    74

    30

    100%

    Well experienced promoters

    R84.50

    483

    31.50

    61%

    Reply received: August 2013

    Question 2019

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

    Whether, in the light of less and less industries buying electricity from Eskom, he has found that, notwithstanding the implementation of the Industrial Policy Action Plan (IPAP), the economy is currently de-industrialising; if so, what steps is he planning to take so as to counter de-industrialisation; if not, what indications are there that industrialisation is working?

    Reply:

    Eskom is a State Owned Company (SOC) falling under the Minister of Public Enterprises. Detailed information on electricity demand and supply and the various, supply and demand side measures deployed by Eskom, including with respect to industrial users, should therefore be directed to the Minister of Public Enterprises.

    However it is a matter of public record that Eskom sales to industrial users has fallen year-on-year in the recent past. Lower levels of demand for electricity arising from under utilisation of production capacity can be ascribed to a range of underlying factors, which include, but are not exclusively the result of 'bunched up' and steeply escalating electricity charges by Eskom and those muncipalities which supply industrial users. These factors have been set out in successive iterations of IPAP and include the following;

    · lower demand in both the domestic and international markets for energy intensive products such as steel, ferrochrome and aluminium as well as other manucatured products

    · the value and volatility of the currency;

    · skills constraints;

    · the ongoing monolpolistic provision and pricing of key inputs into manufacturing, and

    · a surge of imports of a range of manufactured products from countries which, for a variety of reasons, are more competetive.

    A range of economic indicators including declining employment levels in the manufacturing sector, factory closures, increased imports and declining exports of certain manufactured products point to the danger of de-industruialisation. The Industrial Policy Action Plan (IPAP) constitutes the core set of multiple, interlocking and mutually reinforcing, government measures and programmes to prevent the loss of industrial capacity and build the competetiveness of the domestic manufacturing sector. This applies especially, but not exclusively to strategic sectors of the economy including, the automotives; clothing and textiles; capital, transport and mining equipment sectors of the economy. At the same time the IPAP seeks to and has successfully created an enabling environment for the growth of new sectors such as green industries, business process outsourcing and film.

    Economic data and engagement with the manufacturing sector, as set out in succesive iterations of IPAP, points to the fact that industrial policy interventions are having a significant impact, with the greatest successes in sectors or areas where the state has intervened strongly to support the private sector on a foundation of sound economic research and analysis; where the design of interventions is carried out in close collaboration with stakeholders and embodies reciprocal co-commitments, in particular competetiveness enhancement and where, amongst other considerations, interventions are adequately funded.

    The positive outcomes of industrial policy interventions, taken together with a range of strengthened existing and new policy instruments, set out in the IPAP, places the country in a much stronger position to weather the global economic storm; retain and build industrial capabilities and place the manufacturing sector in a better position to maximise the opportunities that currently present themselves and which will arise from a sutained global economic recovery.

    Reply received: August 2013

    QUESTION FOR WRITTEN REPLY

    1954. Adv A de W Alberts (FF Plus) to ask the Minister of Trade and Industry:

    (1) What is the breakdown of the home language or languages of all staff members in (a) his departement, (b) institutions reporting to him, (c) the National Consumer Commission (NCC), (d) the Industrial Development Corporation (IDC), (e) the SA Bureau for Standards (SABS), (f) organisations entrusted with small business development and financing and (g) the Companies and Intellectual Property Commission (CIPC)?

    Response from the Department of Trade and Industry (the dti)

    (1) (a) As on 31 July 2013 the total headcount was 1541, below find the breakdown of the home language as per our persal records.

    Afrikaans

    123

    English

    193

    French

    1

    North Sotho

    225

    Ndebele

    33

    Venda

    101

    South Sotho

    152

    Shona

    1

    Swazi

    17

    Tsonga

    84

    Tswana

    206

    Xhoza

    174

    Zulu

    231

    Total

    1541

    Response from the Entities:

    (1) What is the breakdown of the home language or languages of all staff members in (a) his department, (b) institutions reporting to him, (c) the National Consumer Commission (NCC), (d) the Industrial Development Corporation (IDC), (e) the SA Bureau for Standards (SABS), (f) organisations entrusted with small business development and financing and (g) the Companies and Intellectual Property Commission (CIPC)?

    See attached table.

    Reply received: August 2013

    QUESTION 1929 FOR WRITTEN REPLY

    1929. Mrs M Wenger (DA) to ask the Minister of Trade and Industry:

    What was the (a) make, (b) model, (c) year, (d) purpose, (e) date and/or dates, (f) financial cost and (g) sum total of kilometres driven in respect of each vehicle hired for use by (i) him and (ii) the Deputy Ministers since 1 January 2012? NW2278E

    Response:

    (a) (b) (c) (d) (e) (f) (g) (i) (ii)

    Below please find details pertaining to vehicles hired for Minister Davies from January 2012 to June 2013.

    Make

    Model

    Year

    Date

    Financial Cost

    Kilometres

    Mercedes

    C180

    2012

    5-6 March 2012

    R 1 755.95

    235

    Mercedes

    C180

    2012

    7-8 March 2012

    R 1 427.84

    173

    Mercedes

    C180

    2012

    18-19 March 2012

    R 1 561.28

    216

    Mercedes

    C180

    2012

    6-7 July 2012

    R 1 189.07

    157

    Mercedes

    C180

    2012

    6 December 2012

    R 1 430.86

    66

    Audi

    A6

    2013

    18-19 March 2013

    R 1 426.21

    152

    Mercedes

    C180

    2013

    23-27 March 2013

    R 5 613.35

    552

    BMW

    320i

    2013

    15 April 2013

    R 1 759.26

    274

    Total

    R16 163.82

    1 825

    Below please find details pertaining to vehicles hired for Deputy Minister Thabethe from January 2012 to June 2013.

    Make

    Model

    Year

    Date

    Financial Cost

    Kilometres

    Mercedes

    C180

    2012

    18-19 February 2012

    R 2 954.41

    173

    Mercedes

    C180

    2012

    6-8 May 2012

    R 4 192.31

    316

    Mercedes

    C180

    2012

    11-13 May 2012

    R 2 873.20

    389

    Mercedes

    C180

    2012

    27-28 November 2012

    R 962.50

    18

    Mercedes

    C180

    2013

    10-12 May 2013

    R 1 475.21

    188

    Mercedes

    C180

    2013

    23-24 May 2013

    R 2 524.61

    300

    Total

    R14 982.24

    1 384

    Below please detail pertaining to vehicles hired for Deputy Minister Tobias from January 2012 to June 2013.

    Make

    Model

    Year

    Date

    Financial Cost

    Kilometres

    Mercedes

    C180

    2012

    30 July 2012

    R 1 628.25

    165

    BMW

    320i

    2012

    14-17 October 2012

    R11 199.62

    1 551

    Mercedes

    C200

    2012

    30 January 2013 – 2 February 2013

    R 4 229.87

    184

    Total

    R17 057.74

    1 900

    All of the above mentioned vehicles were used for official purposes in all instances.

    Reply received: July 2013

    QUESTION 1864 FOR WRITTEN REPLY

    1864. Mr G B D Mc Intosh (Cope) to ask the Minister of Trade and Industry:

    (1) Whether he has terminated elements of trade agreements with (a) Belgium, (b) Luxembourg and (c) Spain in the past twelve months; if so, (i) when, (ii) why and (iii) on whose advice was this action taken;

    (2) whether he did this in consultation; if not, why not; if so, what are the relevant details;

    (3) whether there were any negotiations or discussions with these governments before termination; if not, why not; if so, what was the response of (a) these governments and (b) the European Union to this termination? NW2217E

    Response:

    When South Africa undertook its democratic transition in 1994, there were investors who were unsure about the future direction of economic policy in the country. At that time, we signed bilateral investment treaties (BITs) to give the comfort that their investment would be protected in South Africa. Since then, South African has systematically strengthened it national investment protection regime and this is guaranteed in our Constitution. South Africa now ranks amongst the most open investment jurisdictions in the world and we provide investment protection that is consistent with the highest international standards. The BITs have played their role and most have now reached their date for termination.

    In terms of the legal provisions of the relevant BITs, the South Africa Government notified the Embassy of the Kingdom of Belgium of its intention to terminate the BIT between South Africa and the Belgo-Luxembourg Economic Union on 7 September 2012. On 20 June 2013, the South African Government notified the Embassy of Spain in South Africa of its intention to terminate the BIT between South Africa and Spain. These formal notifications followed the Cabinet Decision of July 2010 to terminate BITs once their dates for termination were reached.

    The Cabinet decision itself was the product of a three-year Review of BITs that ended in April 2010, and it involved extensive national and international consultations. It is widely recognised that the BITs entered into by South Africa and many other countries in the mid-1990s are poorly drafted and exhibit a range of serious flaws. It is also recognised that BITs play little, if any, role in investors' decisions to invest or not in any country.

    In this light, many governments around the world are revisiting their approach to investment treaties. With respect to the EU, changes in the approach to investment treaty-making coincide with the entry into force of the Lisbon Treaty in 2010 that has passed the authority to negotiate investment treaties from individual EU Member States to the European Commission. The governments of Belgium and Spain, along with other countries with whom we have BITs, including other EU Members and the Commission, were repeatedly made aware of the Cabinet decision as early as in May, September and November 2011, and again over the course of 2012.

    Notwithstanding any unfounded perceptions, the Government recognizes the important role foreign investment can play in economic development in South Africa. As such, South Africa has provided - and will continue to provide - effective and robust protection to all investors that meets the highest international standards. We are also certain that foreign investors will continue increase their investment in South Africa to take advantage of the opportunities for profitable investment that abound, in the knowledge that their investments are fully secured, with or without bilateral investment treaties.

    Reply received: July 2013

    QUESTION 1844 FOR WRITTEN REPLY

    1844. Mr A C Steyn (DA) to ask the Minister of Trade and Industry:

    (1) How many consultants has his department contracted and/or appointed (a) in the (i) 2009-10, (ii) 2010-11, (iii) 2011-12 and (iv) 2012-13 financial years and (b) since 1 April 2013;

    (2) how many consultants contracted and/or appointed by his department (a) in the (i) 2009-10, (ii) 2010-11, (iii) 2011-12 and (iv) 2012-13 financial years and (b) since 1 April 2013 are former officials of his department and/or former public servants?NW2192E

    Response:

    (1) (a) (i) (ii) (iii) (iv) (b)

    2009-10

    2010- 11

    2011-12

    2012- 13

    Since April 2013

    39

    48

    75

    72

    12

    (2) (a) (i) (ii) (iii) (iv) (b)

    The information below relates to former dti officials:

    2009-10

    2010- 11

    2011-12

    2012- 13

    Since April 2013

    1

    1

    1

    0

    0

    Reply received: July 2013

    Question 1809

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

    (1) What (a) buildings under the administration of (i) his department and (ii) entities reporting to him are national key points and (b) criteria were used to classify them as such?

    NW2157E

    Response:

    1(a) (i) & (ii) None of the buildings under the administration of the dti and their entities are classified as national key points.

    (b) Not applicable.

    Reply received: July 2013

    QUESTION 1777 FOR WRITTEN REPLY

    1777. Mrs S P Kopane (DA) to ask the Minister of Trade and Industry:

    What is the (a) make, (b) model, (c) year and (d) purchase price of each vehicle that was bought for official use by (i) him and (ii) each Deputy Minister since 1 January 2012? NW2124E

    Response:

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

    The only vehicle bought during this period is for Deputy Minister Tobias. The vehicle was bought in May 2012. Below are the details pertaining to the vehicle:

    Make

    Model

    Year

    Purchase Price

    Jeep

    Wrangler

    2012

    R 317 683.77

    Reply received: July 2013

    Question 1708

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

    (1) What is the monetary asset value of the three categories of credit agreements contemplated in section 9 of the National Credit Act, Act 34 of 2005;

    (2) is penalty interest charged on early settlement of asset finance agreements allowed; if so, what are the relevant (a) details and (b) monetary thresholds; if not, what remedies are available to consumers in cases of penalty interest being charged?NW2055E

    Response according to the National Credit :

    According to the National Credit Regulator:

    (1) Monetary asset value of the three categories of credit agreements:

    a. Small Agreement: a pawn transaction; a credit facility or any other credit transaction except a mortgage agreement/credit guarantee below R15,000;

    b. Intermediate Agreement: a credit facility or any other credit transaction except a pawn transaction/mortgage agreement/credit guarantee between R15,000 and R250,000;

    c. Large Agreement: a mortgage agreement; any other credit transaction except a pawn transaction/credit guarantee falls at or above R250,000.

    (2) Penalty Interest charged on early settlement

    (a) A consumer or guarantor is entitled to settle the credit agreement at any time, with or without advance notice to the credit provider;

    Advance Notice provided

    (b) On settlement of a credit agreement and for all types of credit agreements, the consumer is liable to pay balance of unpaid principal debt up to settlement date; unpaid interest charges and fees up to settlement date.

    In case of large agreements (including mortgage agreements), the consumer is liable to pay an early termination charge equivalent to the difference between 3 months and the period of notice of settlement if any, given by the consumer.

    Reply received: August 2013

    Question 1697

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

    (1) What are the (a) monthly salaries and (b) job descriptions of the Community Development Fieldworkers recently appointed by his department;

    (2) whether these workers are permanently appointed; if not,

    (3) whether the specified workers are on fixed contracts; if so, (a) what is the length of the contracts, (b) who do they report to and (c) how is their performance measured;

    (4) whether he can provide a copy of the standard employment contract to Mr G G Hill-Lewis; if not, why not?NW2044E

    Response:

    1(a) The Community Development Fieldworkers are appointed on a commencing salary, excluding benefits, of R170 799.00 per annum. With benefits included, the maximum total remuneration package amounts to R233,994.63 per annum, and

    (b) Job descriptions of the Community Development Field Worker:

    · Ensure effective client relations and customer satisfaction services

    · Support the Department of Trade and Industry's and its COTII Institutions' community engagements and public outreach campaigns •

    · Distribute the Department of Trade and Industry's and its COTII Institutions' information to Government Information Centres (GIC), Thusong Service Centres, Information Resource Centre and other distribution outlets •

    · Promote the Department of Trade and Industry's and its COTII Institutions' products and service offerings •

    · Ensure facilitation of meetings between the Department of Trade and Industry and its COTII Institutions and stakeholders •

    · Attend Provincial and Local Government Imbizo, public outreach campaigns and public participation programmes.

    2. No, they are appointed on a fixed term contract basis.

    3.(a) The duration of the contract is one (1) year;

    (b) They report to the Director of Stakeholder Relations within the CCRD.

    (c) A performance agreement has been entered into between the field workers and the department. This agreement will be used as a measuring tool to evaluate their performance.

    (4) Yes, a copy of standard template contract is provided. Please see "Annex A".

    Reply received: July 2013

    QUESTION 1658 FOR WRITTEN REPLY
    1658. Mr L S Ngonyama {Cope) to ask the Minister of Trade and Industry:


    Whether the Cotonou agreement between South Africa and the European Union is still operational; if not, what is the position in this regard; if so, what are the relevant details?RNW2004E

    Response:

    The Cotonou Agreement is still operational, however it should be noted that the Cotonou Agreement is a framework for the European Union's (EU's) relations with 79 countries from Africa, the Caribbean and the Pacific (ACP), with South Africa included. In March 2010, the European Commission and the ACP group concluded the second revision of the Cotonou Agreement following a first revision in 2001

    The trade chapter of the Cotonou Agreement expired at the end of 2007,and was replaced by the interim Economic Partnership Agreements (EPA) signed by the EU and same of the SADC EPA member states (except South Africa and Namibia). In the case of South Africa, the provisions of the Cotonou Agreement on economic and trade cooperation do not apply but other chapters of the Agreement are still operational. The provisions of the bilateral agreement on Trade, Development and Cooperation (TDCA) between South Africa and the European Community, take precedence over the trade provisions of the Cotonou Agreement.

    The TDCA is the key instrument for SA's trade relations with the EU, with its trade provisions currently being reviewed under the ongoing SADC €PA negotiations.

    South Africa joined the SADC-EC EPA negotiations in February 2006, in an effort to harmonise the TDCA with the SADC region's trade relations vis-à-vis the EU, and also to strengthen regional integration in SACU and SADC.

    Reply received: July 2013

    QUESTION FOR WRITTEN REPLY
    1641. Mr F A Rodgers (DA) to ask the Minister of Trade and Industry:

    Whether the review of the (a) National Industrial Participation Policy and (b) National Industrial Participation projects undertaken as a result of the Strategic Defence Procurement Package have been completed; if not, in each specified case, when will the review be completed; if so, in each specified case, (i) when was it completed, (ii) what is the title of the final report and (iii) what were the main (aa) findings and (bb) recommendations? NW1987E

    Response:

    (a) The review of the National Industrial Participation (NIP) policy has been completed and was approved by Cabinet in December 2012. The new National Industrial Policy Guidelines are being finalized and will be posted on the dti website once they have been approved. The Guidelines will also be published and distributed to stakeholders.

    (b) The review of the National Industrial Participation (NIP) projects arising from the strategic Defence Procurement Package has not been completed. It is expected that this will be completed by the end of September 2013.

    Reply received: July 2013

    QUESTION 1576 FOR WRITTEN REPLY
    1576. Mr D C Ross (DA) to ask the Minister of Trade and Industry:


    Whether Cabinet or the National Treasury has agreed to his proposed tax incentives on the Electronic Vehicle Industry Road Map? NW1922E

    Response:

    Officials from the National Treasury and the dti are stilt engaged in discussions pertaining to the policy levers that can be deployed to support the Electric Vehicle industry. It is envisaged that the outcome of such engagements will be contained in the final proposals due by September 2013 as indicated in the EV Industry Road Map published in May 2013.

    Reply received: July 2013

    QUESTION 1571 FOR WRITTEN REPLY

    1571. Dr W G James (DA) to ask the Minister of Trade and Industry:

    List all the (a) goods and (b) services that have been traded between South Africa and Syria in the past three financial years?

    Response:

    A.List of Goods Traded with Syria[1]

    2010 Exports and Imports

    The top 5 goods exported to Syria in 2010 were: Base metals and related articles (55.68% of total exports);chemical products (25,59%);transport and equipment (6,22%); machinery, appliances, electrical equipment and parts (5,52%); and textiles (2,47%). The top 5 exported products in 2010 constituted 95,48 % of total exports.

    The main imported goods from Syria in 2010 were machinery and appliances, electrical equipment and parts comprising a 31,34% share of total imports; textiles (21,83%); plastics, rubber articles (20,17%); vegetable products (14,93%) share and unclassified goods (5,12%). The main imported products accounted for 93,39 % of total imports from Syria in 2010.

    Total exports in 2010 amounted to R 58,8 million and total imports were R 8,4 million, resulting in a trade surplus of R 50,4 million in South Africa's favour.

    2011 Exports and Imports

    In 2011, the top 5 exported goods to Syria were: chemical products with a 49,45% share of total exports base metals (28,72%), machinery, appliances, electrical equipment and parts (6,89%); optical, measuring, medical instruments (5,38%); transport and equipment (5,16%). These products accounted for 95,60 % of South Africa's total exports to Syria in 2011.

    The main products imported from Syria in 2011 were: textiles articles with a 50,22 % of total imports, machinery, appliances, electrical equipment and parts (25,31%); vegetable products (9,67%); chemical products (5,76%); and base metals (2,36%). The 5 main imports from Syria in 2011 made up 93,32 % of the total goods imported.

    In 2011, total exports amounted to R 42 million and total imports were R 10,4 million. This gave South Africa a trade surplus of R 31,5 million.

    2012 Exports and Imports

    The top 5 exported products to Syria in 2012 were: foodstuffs, beverages, spirits & vinegar, tobacco and tobacco substitutes with a 52,8 % share of total exports; chemical products (26,55%); base metals (8,32%); textile products(6,52%); transport and equipment (6,52%). These products accounted for 94,19 % of total exports to Syria in 2012.

    The main imports from Syria in 2012 were: textiles products with a 46,49% share of total imports; machinery, appliances, electrical equipment and parts (12,46%); unclassified goods (10,65%); vegetable products (7,83%); and miscellaneous manufactures (5,63%). The main exports accounted for 83,05 % share of total imports in 2012.

    Total exports in 2012 amounted to R 62,8 million and total imports were R 8 million, resulting in a trade surplus of R 54,8 million in South Africa's favour.

    B. Services Traded with Syria

    MTN is the only known service company with a presence in Syria, where they provide mobile network services. There are no known Syrian service companies with operations in South Africa.


    [1] Source: thedti statistical database

    Reply received: July 2013

    QUESTION FOR WRITTEN REPLY
    1546. Mr N Singh (IFP) to ask the Minister of Trade and Industry:


    (1) What has he found to be the reasons for South Africa's recent slump in the Global Competitive Rankings;

    (2) whether his department is taking any steps in concert with other departments in the economics cluster to correct this downward trend; if so, (a) what steps and (b) what are the further relevant details?NW1891E

    Response:

    (1) The Global Competitiveness Report is an initiative of the World Economic Forum. The WEF is an independent, non-profit organisation committed to "improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas".

    The Global Competitiveness Index aggregates data and survey responses across 12 pillars and more than 100 individual indicators collected from various sources. Elements of the data are collected through surveying business people operating in the country being assessed and obtaining their perceptions of a particular factor. Given the inherent subjectivity associated with collecting data in this way, the difficulty in interpreting cross-country comparisons based on such data, and the untested policy prescriptions implied by the Global Competitiveness Index, South Africa's rank is of modest importance.

    Nevertheless, South Africa was ranked 54' in the 2010-2011 Index, 50th in the 2011-2912 Index, and 52" din the 2012-2013 Index. South Africa's sank in the Index has therefore changed relatively little over the last three years. South Africa remains the highest ranked Sub-Saharan African country and amongst BRICS members ranks above both India and Russia.

    South Africa continues to be ranked relatively poorly in terms of Health, Primary Education and Higher Education.

    (2) Government has already identified the need to improve South Africans access to quality and affordable health-care, primary education and higher education. However these initiatives do not reside primarily with the Economic Cluster and are therefore being coordinated through other Clusters of Government and Cabinet as a whole.

    Reply received: June 2013

    Question 1503

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

    (1) With regard to the Licensing of Businesses Bill, (a) how many Regulatory Impact Assessments (RIAs) were undertaken or commissioned (i) independently and (ii) internally by his department and (b) what was the cost in each instance;

    (2) which recommendations did his department (a) accept and (b) reject in each instance?NW1848E

    Response:

    (1)(a)(i) One independent Regulatory Impact Assessment report was conducted by an external service provider before the Bill was published for wider public comments.

    (ii) The second phase Regulatory Impact Assessment will be conducted internally after public consultations are finalised and recommendations at no cost.

    (b) The external Regulatory Impact Assessment was conducted for an amount of R 880 861, 24 and the internal will be at no cost.

    The independent Regulatory Impact Assessment report with various recommendations was accepted as a guide in the drafting of the

    Reply received: June 2013

    QUESTION 1433 FOR WRITTEN REPLY

    1433. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

    What amount did his department spend on (a) promotional items and (b) cocktail receptions on the occasion of his 2013 Budget Vote debate? NW1775E

    Response:

    COMPANY – ITEM(S)

    AMOUNT

    Parliament caterers

    Catering

    R52 709.00

    Global Focus Marketing

    Sound equipment

    R13 044.45

    Exhibition equipment

    R54 081.37

    TOTAL

    R119 834. 82

    Promotional items (50 dti branded highlighters and 50 branded bracelets) used at the dti budget vote exhibition were taken from the existing stock.

    Reply received: June 2013

    QUESTION 1341 FOR WRITTEN REPLY

    1341. Dr S M van Dyk (DA) to ask the Minister of Trade and Industry:

    (1) Whether (a) he, (b) his deputy ministers, (c) any specified officials and (d) any other persons have been issued with a government or official credit card (i) in the (aa) 2011-12 and (bb) 2012-13 financial years and (ii) since 1 April 2013; if so, in each instance, what is the (aaa)(aaaa) name and (bbbb) job title of each person to whom a credit card was issued, (bbb) credit limit, (ccc) outstanding amount as at the latest specified date for which information is available, (ddd) monthly expenses incurred for each month since receiving the credit card, (eee) reason for such a person being issued with a credit card and (fff) uses that such a credit card is intended for;

    (2) whether the credit limit of any specified credit card was exceeded at any time since it was issued; if so, (a) whose credit cards are over the limit and (b) what is the reason for the credit card exceeding the limit? NW1671E

    Response:

    No credit cards have been issued to any officials of the dti for the period 1 April 2011 to date.

    Reply received: June 2013

    QUESTION 1288 FOR WRITTEN REPLY

    1288. Mr S J Njikelana (ANC) to ask the Minister of Trade and Industry:

    What were his findings following his visit to small, medium, micro enterprises and cooperatives in Orange Farm in April 2013? NW1617E

    RESPONSE

    With regard to my visit to small, medium, micro enterprises and cooperatives in Orange Farm in April 2013, I noted that firstly, there is a need for business management skills and support. To this end, I made an undertaking to investigate the possibility of bringing the Small Enterprise Development Agency (Seda) mobile business support unit to interact with the small business community on regular intervals.

    Secondly there is concern around support for construction entrepreneurs, in particular with regard to the Construction Industry Development Board (CIDB) grading system. In this regard, I advised that the constituency office should arrange a follow up meeting with the Department of Public Works and CIDB. It became clear to me that the majority of contractors were raising the grading system as a major hindrance to their growth and sustainability. Unfortunately, it is a matter outside the scope of the Department of Trade and Industry.

    Thirdly, I noted the need for increased support for Cooperatives. To this end a follow up meeting with the dti Cooperatives Unit was held in April to ensure relevant support is accessed.

    As a result of the above intervention by the department, 390 Co-operatives are registered in the area and 15 are in a process of applying for the Co-operatives Incentives Scheme, with 1 service provider from the area applying for the Incubator Support Programme to incubate and support the existing Co-operatives.

    Reply received: June 2013

    QUESTION 1268 FOR WRITTEN REPLY

    1268. Mr S J Njikelana (ANC) to ask the Minister of Trade and Industry:

    How has Africa, as a continent, managed to reverse the adverse effects of Economic Partnership Agreements (EPAs)? NW1545E

    Response:

    The EPA negotiations between the European Union (EU) and various configurations of countries in Africa have been underway since 2002. The EPA has been ratified and is in force in only four countries in Africa. Progress in the negotiations elsewhere is uneven.

    There has been steady progress in the negotiations between the EU and the SADC EPA Group which comprises South Africa, Botswana, Lesotho, Namibia, Swaziland, Angola and Mozambique. We have reached a decisive stage in the market access negotiations for an exchange of tariff concessions in agriculture and in rules of origin. We have addressed most of the contentious provisions in the legal text but we still need to address export taxes, agricultural and bilateral safeguards. In addition, more work will be needed to finalise an agreement between South Africa and the EU on geographic indications.

    So while there is significant progress, more time is needed to conclude the negotiations. In this respect, the SADC EPA Group has expressed serious misgivings on the EU's unilateral and arbitrary decision to withdraw market access from those countries that have not implemented the EPA by 1 October 2014. This implicit deadline places pressure on the negotiating process and would severely penalize many African countries if negotiations are not concluded but that date.

    There is also widespread concern that the conclusion of separate EPAs among different sub-groups of countries in Africa will complicate and even undermine Africa's efforts to pursue regional and continental economic integration. This is an issue that will need to be discussed at the continental level and with our EU partners with a view to ensuring that the EPA supports and does not undermine Africa's development and integration objectives.

    Reply received: May 2013

    Question 1150

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

    (1) What is the cause of the suspension of the e-services offered by the Companies and Intellectual Property Commission, which is affecting the submission of annual returns, database searches, deregistration and billing;

    (2) what is being done to restore these services;

    (3) whether anyone is being held accountable for the suspension of e-services; if so, (a) who and (b) what is being done? NW1383E

    Response:

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

    (1) There were a number of unrelated systems problems experienced, which have since been resolved. The first problem emerged four weeks ago when the search engine that is required for the search and approval of Company names experienced difficulties. The system was affected intermittently for a period of 4 days, until the problem was resolved. Further maintenance has been conducted on the server on which the application is hosted.

    The weekend following this difficulty, the CIPC shut down its Annual Return system for an upgrade. The upgrade was not as smooth as had been hoped and as a result, the CIPC experienced difficulties for 4 days with its Annual Return system. One of the problems was that it did not update all the necessary data fields and as a result the status of entities that had filed Annual Returns were not updated. While the system is up and operating faster than previously, the CIPC is still addressing minor problems.

    The next weekend, there was a power failure on the dti campus, which brought down all the systems of the campus, including all the CIPC systems. The power failure affected some of the older hardware that the CIPC has and caused some data corruption. The CIPC had to replace a number of different system components in the following week and restore its systems from its backups and the systems were operational again after 4 days. All systems have been fully operational for the past week.

    (2) The CIPC is systematically upgrading different components of its systems and its infrastructure to ensure that similar problems are obviated in future.

    (3) The underlying causes for the problems have varied and it is not possible to hold a single person accountable. The CIPC is taking collective responsibility for the problems experienced and the impact on the public. A lot of pressure is being applied to the ICT division to ensure that the aging hardware is being replaced and a programme for maintenance and further enhancement of system performance has been put in placed for the year ahead.

    Reply received: May 2013

    QUESTION 1141 FOR WRITTEN REPLY

    1141. Mr G G Boinamo (DA) to ask the Minister of Trade and Industry:

    (a) What total amount has (i) his department and (ii) each specified entity reporting to him spent on conferences in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12 and (dd) 2012-13 financial years and (b) what (i) amount was spent on, and (ii) is the breakdown of the expenditure for, each specified conference?NW1374E

    Response, the dti:

    The spending of the dti for the 2009/10 to 2012/13 financial years on conferences is as attached:

    Response: The Entities:

    (a) What total amount has (i) his department and (ii) each specified entity reporting to him spent on conferences in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12 and (dd) 2012-13 financial years and (b) what (i) amount was spent on, and (ii) is the breakdown of the expenditure for, each specified conference?NW1374E

    See attached response

    Reply received: May 2013

    QUESTION FOR WRITTEN REPLY

    1109. Dr P J Rabie (DA) to ask the Minister of Trade and Industry:

    (1) What total amounts has (a) his department and (b) each specified entity reporting to him spent on (i) print and (ii) broadcast advertising in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12 and (dd) 2012-13 financial years;

    (2) in each case, (a)(i) by which radio or television station were the advertisements broadcast and (ii) in which newspapers were the advertisements published in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12 and (dd) 2012-13 financial years and (b) at what cost in each specified case? NW1342E

    Response:

    Department of Trade and Industry

    (1) The total expenditure in respect of advertising from the Department of Trade and Industry for (aa) 2009/10 financial was R12,507,565.74, (bb) expenditure for 2010/11 financial year was R11,522,790.24 (cc) expenditure for 2011/12 financial year was R28,166,360.81 and (dd) expenditure for 2012/13 financial year was R24,808,848.08.

    (2) The SABC radio stations where advertisements were broadcast over the mentioned years are: Metro FM, SA FM, Radio 2000, Radio Sonder Grens, Ukhozi FM, Igwalagwala FM, Motsweding FM, Thobela FM, Phala Phala FM, Lesedi FM, Ikwekwezi FM, Umhlobo Wenene FM.

    The Newspapers the department advertise in are: Business Times, Business Day, The Star, Mercury, Cape Times, Pretoria News, Sowetan, The New Age, Mail and Guardian, and City Press.

    SABC Radio Stations

    In the financial year 2009-10 the dti spent R3 989 658.57 on SABC Radio Stations. In the 2010-11 financial year, R2 999 579.40 was spent, in 2011-12 an amount of R11 072 959.19 was spent, and in 2012-13 an amount of R10 212 271.73 was spent.

    SABC TV

    the dti has expended a total amount of R3 500 000.00 on SABC TV in the 2009-10 Financial year and R465, 243.12 in the 2012-13 financial year.

    AVUSA (TIMES MEDIA)

    AVUSA is a media house that owns, among others; Sowetan, Sunday Times, Sunday World. Last year it changed its name to TIMES MEDIA after a management change. In the year 2009-10 the dti spent about R652 034.40, R1 734 865.68 was spent in 2010-11, R1 489 159.20 was spent in the 2011-12 financial year, and R3 073 139.62 was spent in the 2012-13 financial year.

    BDFM (Business Day)

    The department has advertised in the Business Day which is owned by BDFM. The expenditure for the 2009-10 financial year was R367 108.50, in the 2010-11 financial year the expenditure was R153 033.80, in the 2011-12 financial year R236 973.72 was expended, and in 2012-13 a total of R516 708.42 was spent.

    Mail and Guardian

    Mail and Guardian is a newspaper owned by M & G Media. In the 2009-10 financial year the dti spent R126 859.20, in the 2010-11 financial year R572 726.74 was spent, in 2011-12 financial year R586 554.12 was spent, and in 2012 – 13 an amount of R1 246 437.22 was spent.

    Independent Newspapers (The Star, Pretoria News, Mercury, Cape Times)

    In the 2009 -10 financial year the dti spent R533 519.56, in 2010 – 11 financial year, R381 549.98 was spent, for the 2011-12 financial year, R967 082.78 was spent, and in the 2012-13 financial year, R1 240 224.77 was spent.

    Media 24 (City Press, Daily Sun)

    In the 2009 – 10 financial year the department spent R325 353.26 on Media 24, in the 2010-11 financial year, R1 772 181.90 was spent, in the 2011-12 financial year, R2 157 106.10 was spent, and in the 2012-13 financial year, a total of R1 830 088.06 was spent.

    TNA Media (The New Age)

    the dti started to use The New Age in the 2010-11 financial year and a total of R149 978.40 was spent. In the 2011-12 the dti spent R510 897.04, and in the 2012-13 financial year, R1 002 334.20

    Response from the Entities:

    (1) What total amounts has (a) his department and (b) each specified entity reporting to him spent on (i) print and (ii) broadcast advertising in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12 and (dd) 2012-13 financial years;

    See attached reply

    (2) in each case, (a)(i) by which radio or television station were the advertisements broadcast and (ii) in which newspapers were the advertisements published in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12 and (dd) 2012-13 financial years and (b) at what cost in each specified case? NW1342E

    See attached reply

    The Information that has been omitted from this response will be provided directly to the member as this information is stored off-site.

    Reply received: May 2013

    Question 1045

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

    Whether he intends to make the data of businesses and individuals who have registered in terms of the proposed legislation on business licences and business licensing available to the SA Revenue Service (SARS) in order to enable the SARS to prosecute businesses and individuals who are trading without paying tax; if not, why not; if so, in terms of which legal and policy principle?NW1270E

    Response:

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

    The CIPC has been forwarding information about companies being registered to SARS for many years. At present, the CIPC records indicate the SARS tax numbers. CIPC and SARS have recently compared their data sets. Generally, both entities have the same number of entities registered on their respective databases, at around 4 million companies and close corporations. The intention of the data exchange was not to prosecute entities, but to ensure better alignment of information between two regulatory institutions. Generally, it would appear that businesses that wish to operate in the formal sector and are registered with CIPC also tend to be registered with SARS.

    Therefore, the data of businesses and individuals who will register in terms of the proposed legislation on business licenses will also be available to other regulatory institutions including SARS.

    Reply received: May 2013

    Question 987
    Mr T D Lee IDA) to ask the Minister of Trade and Industry:

    (1) Since 1 January 2011, how many applications under the Promotion of Access to Information Act, Act 2 of 2000, were received by (a) his department and (b) entities reporting to him, and in each case, how many were (i) granted, (ii) refused and (iii) deemed refused under section 27;

    (2) Since 1 January 2011, how many internal appeals under the Act were received by (a) his department and (b) entities reporting to him, and in each case, how many were (i) granted, (ii) refused and (iii) deemed refused under section 77(7);

    (3) Who is the information officer for (a) his department and (b) each entity reporting to him, and in each case, what are the contact details of the officer?

    Response from the Department of Trade and Industry:

    (PAIA) Applications: the dti

    Received

    (i) granted

    (ii) refused

    (iii) deemed refused under section 27

    In full

    Partially

    55

    37

    2

    13

    (2) Internal Appeals: the dti

    Received

    (i) granted

    (ii) refused

    (iii) deemed refused under section 77(7)

    In full

    Partially

    0

    0

    0

    0

    (3) Contact details:

    Information Officer for the dti:

    Mr Lionel October, Director-General
    Phone: +27 12 394 3075
    Fax: +27 12 394 0323
    eMail: LOctober@thedti.gov.za

    Postal address: Private Bag X84, Pretoria, 0001

    Deputy Information Officer for the dti:
    Dr. Gerhard Calitz, Director: Records Management
    Phone: +27 12 394 5561
    Fax: +27 12 394 6521
    eMaiI: GCalitz@thedti.gov.za
    Postal address: Private Bag X84, Pretoria, 0001

    See attachment: Responses from the Entities

    Reply received: May 2013

    QUESTION 916 FOR WRITTEN REPLY

    916. Mr P D Mbhele (Cope) to ask the Minister of Trade and Industry:

    What recent steps has he taken to encourage and support 15 to 24-year old South Africans to be involved in early-stage entrepreneurial activity? NW1142E

    Although youth constitutes about 41.2% of the South African population, the number of young people involved in business or are self-employed is significantly low at about 6% of the total of youth population in the country. The Global Entrepreneurship Monitor (GEM) South African Report 2010 indicates South Africa's Total Early-stage Entrepreneurial Activity (TEA) to be at 8.9% of which youth only constitute about 10% (0.9%) of that figure. South Africa has an acute problem of youth unemployment that requires a multi-pronged strategy to raise employment and support inclusion and social cohesion. High youth unemployment means young people are not acquiring the skills or experience needed to drive the economy forward.

    Reply:

    To address these challenges, the dti has developed the Youth Enterprise Development Strategy, whose aim it is to encourage mainstreaming of the youth in all the support intervention available as well as proposed unique support programmes dedicated to increase youth economic participation. In order to understand the dti's inputs into the age category 15-24 years old, which was raised by the Honourable Member, it is important to note that guided by Company Law:

    1. Youth in the 15-17 years old category, are not necessarily participating in the economic mainstream, the bulk of these youth are in school and fall under the provisions of the Basic Education System, wherein they do get involved in entrepreneurial activity, it is invariably exceptional cases. Even here they would still expected to obtain a guardian's consent to engage in commercial activities. Within this category of youth (15-17 years old) the dti plays an advocacy role with the Department of Basic Education, encouraging and supporting the development of curricula that addresses Entrepreneurship and Basic Elements of Economic Systems. These youth are not beneficiaries of the dti's attempts to address Total Early-stage Entrepreneurial Activity (TEA).

    2. Youth within the 18 to 24 years old category, and indeed youth until the age of 35 years old, are beneficiaries to the dti youth enterprise development programmes as they are the legal age that allows them to run and manage their own businesses without requiring the consent of parents or guardians.

    While the Youth Enterprise Development Strategy has at its core 8 programmes that will contribute significantly to Total Early-stage Entrepreneurial Activity (TEA), that is, the creation, growth and expansion of youth enterprises, there are two programmes that cater specifically to the in-school and in-higher education population of youth in the 15-24 years old demographic raised by the Honourable Member:

    a. Youth Entrepreneurship Promotion and Awareness Programme (Outreach) - The strategic aim of this programme is to promote and raise awareness of entrepreneurship, targeting young people, throughout the country to encourage them to view entrepreneurship as the first option in their economic participation endeavours;

    b. Take a young person to work programme - The programme is designed to provide young persons that are at school studying Grade 11 and 12, with exposure in the dti working environment to the following themes : career choice, entrepreneurship, IPAP2 high priority sectors, technology and critical skills shortages amongst other key areas of industry, SMME's and the economy.

    Both of these programmes are designed to create awareness amongst the in-school and in-higher education population of youth in the 15-24 years old demographic and towards this end the dti Youth Directorate has been working tirelessly to reach and shape young people's attitude towards creating awareness on entrepreneurship and becoming the leaders of our transforming economy. During the last year alone, the dti Youth Directorate has participated in at least 14 awareness campaigns directed at youth in the 18-35 years old demographic category, which nonetheless had a large section of 15-17 year old attendees, and which has raised awareness of entrepreneurship and self-employment as a pathway to constructive participation in the economy to a total of approximately 4845 youth. A list of the details of these awareness campaigns is attached:

    Reply received: May 2013

    QUESTION 914 FOR WRITTEN REPLY

    914. Ms C K K Mosimane (Cope) to ask the Minister of Trade and Industry:

    Whether any big businesses are partnering with his department to mentor small businesses; if not, what is the position in this regard; if so, (a) how many businesses participated with his department in business mentorship in the (i) 2010-11, (ii) 2011-12 and (iii) 2012-13 financial years and (b) what are the further relevant details? NW1140E

    Reply:

    2010-11: There were no big businesses that partnered with the dti and its agencies to mentor small businesses during this period.

    2011-12: There were no big businesses that partnered with the dti and its agencies to mentor small businesses during this period.

    2012-13: Under the Seda programme, 4 big businesses and state parastatals entered into partnerships to provide opportunities to small businesses.

    (i) Transnet partnership: This partnership entails the development of 30 Transnet suppliers over a period of 3 years.

    (ii) MTN partnership: The Seda/ MTN partnership is for an initial one year period renewable for a further three years. A total of 20 MTN suppliers have been forwarded to Seda for development.

    (iii) Massmart partnership: Massmart is currently show casing certain products from Seda clients. Seda will provide technical support to ensure that quality and volumes of selected items are provided to Massmart on a sustainable basis.

    (iv) Eskom partnership: The partnership covers three aspects, which are supplier development, incubation and sharing of information between Seda and Eskom's Learning Academy.

    Under the Incubation Support Programme, 4 big businesses (turnover of more than R35 million) have committed to transfer skills to small businesses as well as provide access to markets. A further 9 medium size businesses (turnover below R35 million) have committed to support small enterprises as incubatees. The aim of the Incubation Support Programme is to incentive the private sector to build capacity amongst small businesses as well as market opportunities so that the small businesses can participate fully in the commercial value chains. The benefit for small businesses is gaining of technical skills, which they would not have acquired without the support of big businesses and accessing the markets as this ensures their growth and sustainability. The majority of support is in line with government's commitment to industrialise the economy through fostering close working relationships between big and small businesses.

    Reply received: April 2013

    QUESTION 761 FOR WRITTEN REPLY

    761. Mr. M G P Lekota (Cope) to ask the Minister of Trade and Industry:

    Whether his department is training, promoting or involving the youth in matters relating to (a)(i) broad-scale participation in small business development and (ii) facilitating an understanding of legislation related thereto, (b)(i) consumer and (ii) corporate regulations, (c) incentive development, (d) industrial development and (e) innovation; if not, why not; if so, what are the relevant details? NW971E

    (a)(i) The government has prioritized the development of young people and has laid the basis for ensuring that they are fully integrated into the mainstreamed economy and are capacitated in terms of technical, management and entrepreneurial skills training and human resource development. In this regard the Department of Trade and Industry (dti) has established the Youth Directorate whose mandate is to drive the development and growth of youth owned and managed enterprises as well as promotes the economic empowerment of young people in the South African economy.

    The dti Youth Directorate has developed the Youth Enterprise Development Strategy (YEDS), geared to promote youth owned and managed enterprises that contributes to the growth of the country's GDP, employment creation and poverty reduction. This strategy has formulated various programmes and interventions aimed at empowering young aspirant entrepreneurs economically.

    In line with this strategy, the Youth Directorate has partnered with the National Youth Development Agency (NYDA) to train 120 young people on deal origination and micro-finance. The next phase will focus on recruitment of stakeholders such as commercial banks, NYDA provincial offices and funding agencies to host and provide in-service training for the young people who have been trained.

    the dti has further partnered with the NYDA to establish 20 youth Cooperatives that own Fish and Chips Co. franchise stores in the 20 priority townships in the Gauteng province. The project is being funded through the Cooperative Incentive Scheme of the dti, with the NYDA providing bridging funding. Sponsorships were also provided to two young entrepreneurs to participate in the G20 Youth Entrepreneurship Summit held in Mexico during June 2012.

    The Small and Enterprise Development Agency (seda) has provided business development support services to SMMEs including youth owned enterprises across the country such as starting or running a business, business planning and registrations, access to markets, small enterprise training and mentorship and support through provision of access to technology.

    The seda's technology transfer intervention (TTF) focuses on supporting small and micro enterprises particularly those operating in the 2nd economy with a range of technology transfer services to enable the enterprises access to technology, technical advice and support. The total number of TTF supported enterprises in 2012/13 is 85 of which 43 are women-owned. Although the numbers provided in most of these areas are generic, about 70% of the enterprises supported invariably constitute support to young people and particularly young women.

    the dti through the Cooperative Incentive Scheme (CIS) has also provided grant funding to cooperatives with youth membership. During the 2012/13, approximately 119 youth members have benefited from the CIS scheme. Furthermore the dti has in the past three years facilitated and supported the establishment of 113 youth cooperatives thus benefitting about 678 youth beneficiaries with self-help initiatives and provision of training in the area of understanding the cooperatives business model and technical training.

    In the area of Industrial development, the dti has formulated the Sector Specific Youth Catalytic Project Initiative aimed at assisting young entrepreneurs to leverage business opportunities offered by key industrial sectors. In support of the National Skills Accord 69 unemployed graduates were placed in manufacturing enterprises to improve their employability and enhance skills necessary for enterprise developments. During the 2012/13 financial year 1 506 students and 1 135 researchers participated in the Technology and Human Resources for Industry Programme (THRIP) to enhance technological competencies of South Africans.

    a (ii) The National Consumer Commission responsible for ensuring consumer education for vulnerable consumers including youth consumers developed a programme working with children of school going age called 'school consumer clubs'. The main objective behind these clubs is: to educate learners about their rights as provided for in the Consumer Protection Act No 68 of 2008. The intention is to roll the program out of schools to ensure that as a country we cultivate future empowered consumers who are able to deal with issues of unfair business practices.

    the dti has through the Taking the dti to the People and the Youth Imbizos initiatives raised awareness among the youth with respect to Companies Act, Cooperatives Development Act and Small Business Act. The majority of people that participate in these initiatives are young people. More than 2000 people are reached per year with these events.

    Reply received: April 2013

    QUESTION 754 FOR WRITTEN REPLY

    754. MR G G HILL-LEWIS (DA) TO ASK THE MINISTER OF TRADE AND INDUSTRY:

    With regard to the fishing boats that he handed to the fishing cooperatives of Ocean View and Masiphumelele in March 2013, (a) how many boats did each cooperative receive, (b) upon which criteria were the cooperatives that received the boats selected, (c) what is the status of the fishing quotas of each cooperative and (d) what timetable has been set for the implementation of the Small Scale Fishing Policy? NW962E

    REPLY:

    (a) Six (6) boats were received by each of the following six (6) co-operatives:

    i. Ocean Waves 2012/004113/24

    ii. Cape Point Fishers 2011/005437/24

    iii. Sea Breeze 2011/009148/24

    iv. Sinethemba Fisherman 2011/008915/24

    v. Rooi Roeman 2011/009408/24

    vi. Smart Catch 2011/008909/24

    (b) The six co-operatives applied to the dti for assistance through the co-operatives incentives scheme in February 2012. The eligibility criteria of the scheme was used as stipulated in the guidelines, and it encapsulates the following elements, that: (1) emerging co-operatives must be registered in accordance with the co-operatives act 14 of 2005; (2) have a current tax clearance certificate; (3) demonstrate skill and knowledge on the business support required; and (4) be majority black owned entities.

    (c) At the time of the applications evaluation process, co-operatives had 8-months valid fishing permits. The status of the quotas to date is under review by the Department of Agriculture, Forestry and Fisheries' (DAFF) small scale fishing policy. the dti and DAFF officials are working together to ensure alignment on policy implementation.

    (d) The implementation of the small scale fishing policy is the responsibility of DAFF. the dti plays a supporting role to the co-operatives through the Co-operatives Policy and implementation thereof.

    Reply received: April 2013

    QUESTION 744 FOR WRITTEN REPLY

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

    What (a) steps will his department take to ensure that poultry brining is properly regulated and (b) timetable has his department set to effect such regulation?

    Response:

    a) Brining regulations for the poultry industry are the mandate and responsibility of the Department of Agriculture, Forestry and Fisheries (DAFF) in consultation with the Department of Health (DOH) and not the Department of Trade and Industry (the dti). It is for this reason that the Department of Trade and Industry is not in a position to take any steps with respect to regulation of brining.

    (b) Since this is not a mandate of the dti this question should be directed to those departments responsible.

    Reply received: May 2013

    QUESTION FOR WRITTEN REPLY

    665. Mr M G P Lekota (Cope) to ask the Minister of Trade and Industry: Interdepartmental transfer on 26 April 2013]

    (1) Whether the (a) advisory board and eight task teams that were appointed by the Government in 1998 to address legislation that was severely impeding small businesses and (b) new regulatory unit to scientifically assess the effects of regulation on small businesses, which was appointed in 2000, had (i) completed their respective tasks and (ii) made firm recommendations to him; if so, what are the relevant details in each case;

    (2) whether his department is now ready to implement the recommended changes with immediate effect; if not, why not; if so, what are the relevant details? NW826E

    Reply:

    (1) Inappropriate regulation has long been recognised by the South African government as an impediment to the emergence and growth of small businesses. As far back as in 1995, in its White Paper on National Strategy for the Development and Promotion of Small Business in South Africa, the Department of Trade and Industry (the dti) articulated the negative impact of inappropriate regulation:

    "Inappropriate or unduly restrictive legislative and regulatory conditions are often viewed as critical constraints on the access of small enterprises into the business sector and as obstacles to their growth.

    (a) Based on the above government appointed a task team in 1998 to oversee regulatory review processes commissioned. The regulatory review looked at the regulation that can potentially constrain the development and growth of the SMME sector. This review highlighted a number of areas that needed to be changed to provide for a conducive regulatory environment for small business development. The review came up with the recommendations across the spectrum of government regulations. These recommendations were communicated to sector departments to review areas of their legislation identified. This review was subsequently followed by a comprehensive regulatory review process led by the Presidency in collaboration with the dti and National Treasury in 2005.

    (b) The Department did not establish the regulatory review Unit. However, the then Ntsika Enterprise Promotion Agency, which was the first enterprise support agency established by the dti, provided for a capacity to continuously look at firstly the implementation of the regulatory review and secondly, monitor and advise on a potential impact of the new regulations to small business development.

    The 2005 review recommended for a regulatory impact assessment to be institutionalized in the Presidency wherein every government department will be required to submit an assessment report to the Presidency on any new legislation or regulation proposed. The review also recommended for the establishment of the impact assessment units in all the national departments to do the internal investigations of new legislation that can potentially have negative impact to vulnerable groups including small businesses. These units were established by some departments and the dti has one such unit within the Corporate and Consumer Regulations Division.

    (i) The task team completed its work in June 1999 and the process made comprehensive recommendations some of which were left to the sector departmaents to implement.

    (ii) As a highlight to this process, a proposal was made to look at two major areas i.e. the regulatory impact assessment instrument as a filtering mechanism for the new and proposed regulations. Secondly, a proposal was made to look at reducing the red-tape at local government level. With regards to the latter, the Department of Trade and Industry in collaboration with the Department of Cooperative Governance and Traditional Affairs (COGTA) undertook a pilot for local red tape reduction in 2011.

    Reply received: April 2013

    QUESTION 664 FOR WRITTEN REPLY

    664. MR M G P LEKOTA (COPE) TO ASK THE MINISTER OF TRADE AND INDUSTRY:

    Whether his department has year-on-year statistics on how the implementation of broad-based black economic employment has increased the involvement of historically disadvantaged individuals in business across all sectors and all levels of employment; if not, why not; so, what are the relevant details? NW825E

    REPLY:

    In responding to the question raised, it is important to take note that the Employment Equity Scorecard of Broad Based Black Economic Empowerment Codes of Good Practice is aligned to the Employment Equity Act. The2012 Employment Equity report released by the Department of Labour reveals that in 2007 there has been a representation of Black people at Top Management at 28.7% and in 2009 there was an increase to 32.3% and a decline to 30.7% in 2011. The above-mentioned picture shows that there has been an increase in the involvement of black people in all levels of employment, although at a slower pace. This trend has been the same in all levels of employment equity, thus, Top Management, Senior Management, and Middle Management. It is important to note that at the Junior management level, the pace of increase in a number of black people in employment has been significant.

    For example, at Junior Management there has been a rise to a record 74.7% in 2011 from 63.5% of Black employees in 2007.

    Reply received: April 2013

    QUESTION 655 FOR WRITTEN REPLY

    655. Adv L H Max (DA) to ask the Minister of Trade and Industry:

    (1) How many claims were instituted against his department (a) in the (i) 2007-08, (ii) 2008-09, (iii) 2009-10, (iv) 2010-11 and (v) 2011-12 financial years and (b) during the period 1 April 2012 up to the latest specified date for which information is available;

    (2) in respect of each specified financial year, (a) what amount was claimed, (b) how many claims were (i) finalised in court, (ii) settled out of court and (iii) are still outstanding and (c) what amount has been paid to each plaintiff in each case that was (i) finalised in court and (ii) settled out of court? NW814E

    Response:

    (1)

    (a)

    (b)

    (i)2007-2008

    17

    (ii)2008-2009

    5

    (iii)2009-2010

    14

    (iv)2010-2011

    10

    (V)2011-2012

    8

    2012 -2013

    7

    (2)

    a

    Rands

    b (i)

    b(ii)

    b(iii)

    c(i)

    c(ii)

    2007-2008

    11 713 000

    1

    1

    12

    R 235 567.00

    0

    2008-2009

    6 255 000

    1

    8

    7

    R 1 630 101 .55

    0

    2009-2010

    496 010

    1

    0

    6

    R 303 600.45

    0

    2010-2011

    12 567 000

    0

    1

    8

    0

    Plaintiff:

    R1 997 000

    2011-2012

    4 281 603

    4

    1

    1

    Plaintiff 1: USD205 587

    Plaintiff 2:0

    Plaintiff 3: R64 776.93

    Plaintiff 4:

    R800 000

    2012-2013

    22 162 170

    0

    0

    7

    0

    0

    Reply received: April 2013

    QUESTION 610 FOR WRITTEN REPLY

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

    (a) Which companies have been recipients of (i) grants or (ii) assistance in terms of the Clothing and Textile Competitiveness Improvement Programme since its inception and in each case, (b) what was the scale of the (i) grant or (ii) assistance?NW768E

    RESPONSE:

    The Industrial Development Corporation Clothing and Textiles Competitiveness Programme Desk are responsible for the administration of the programme on behalf of the dti. The programme is divided into two main sub programmesnamely the Competitiveness Improvement Programme (CIP) and the Production Incentive Programme (PIP). The CIP was launched in 2009 whilst the PIP came into effect in 2010.

    CIP has had a total of 33 project approvals valued at R 365 645 478.3 and the sector spread is as follows:-

    · Clothing 17 approvals valued at R 155 633 525.1

    · Textiles 10 approvals valued at R 46 968 528

    · Footwear 4 approvals valued at R 161 699 133.2

    · Leather Goods 2 approvals valued at R 134 4699 133.2

    Of the 33 projects approved, 12 were cluster level transactions and the remaining 21 were company level transactions.

    PIP has had a total of 470 companyapplications approved to the value of R 1 320 085 186 and the sector spread is as follows:-

    · Clothing 158 companies valued at R 315 889 235

    · Textiles 222 companies valued at R 781 609 562

    · Footwear 68 companies valued at R 185 908 362

    · Leather 11 companies valued at R 24 590 457

    · Leather Goods 11 companies valued at R 7 989 341

    Reply received: March 2013

    Question 466

    Mr B M Bhanga (Cope) to ask the Minister of Trade and Industry:

    Whether he has been informed that (a) consumer's complaints are not being taken up by the National Consumer Commission and (b)(i) retailers and (ii) service providers continue to flout the Consumer Protection Act, Act 68 of 2008; if not, what is the position in this regard; if so, what are the relevant details? NW621E

    Response:

    According to the National Consumer Commission (NCC):

    a) & b) Consumer complaints are being dealt with the by the NCC, however, a major backlog does exist. The backlog arises due the fact that consumers are largely approaching the NCC directly before attempting to resolve the matter amicably at source or through other existing alternative dispute resolution agencies, including the provincial consumer protection authorities.

    The NCC, in terms of section 99 of the Consumer Protection Act, is required to promote the informal resolution of disputes between consumers and suppliers but it is not responsible for intervening in or adjudicating on any such disputes. Hence, the NCC will be phasing out the conciliation of disputes. Instead, it is promoting the establishment of alternate dispute resolution schemes within industries in terms of the Consumer Protection Act.

    The backlog has been priorotised.

    It has been found that suppliers generally comply with the provisions of the Consumer Protection Act. Non-compliant suppliers who have been approached by the NCC are generally willing to take remedial action to secure compliance.

    Reply received: March 2013

    QUESTION 463 FOR WRITTEN REPLY
    463. Mr L S Ngonyama (Cope) to ask the Minister of Trade and Industry:


    (1) Whether he is aware of the visa problems that the business people from other African countries are experiencing; if not, what is the position in this regard;
    (2) whether he has made an assessment of these challenges with the intention of sustaining the country's status as the gateway to Africa; if not, what is the position in this regard; if so, what are the relevant details;
    (3) whether he will make a statement on the matter? NW678E

    RESPONSE TO PQ 463

    (1) The issue of Visa challenges for business people has been raised with our bilateral economic engagements between Governments and business.
    (2) Minister has not made an assessment of these challenges. These challenges are, however, discussed with the Department of International Relations and Cooperation (DIRCO) and the Department of Home Affairs (dha) and respective countries to find a solution. dha is a lead Department in this regard.

    (3) The Minister will not make a statement in this regard.

    Reply received: February 2013

    QUESTION 180 FOR WRITTEN REPLY

    180. Mr S J Njikelana (ANC) to ask the Minister of Trade and Industry:

    What is the progress in respect of the amalgamation of the Southern African Development Community, the Common Market of Eastern and Southern Africa and the East African Community in so far as intra-African trade is concerned? NW185E

    Response:

    The Member States of COMESA, EAC and SADC launched negotiations to pursue a Tripartite Free Trade Area (T-FTA) in June 2011 as a means to boost intra-Africa trade. In advancing this agenda, member States agreed on a developmental integration approach premised on three pillars:

    (i) Infrastructure focused on the North-South Corridor with significant progress on upgrading road links. Projects have been identified for rail, border posts and port development;

    (ii) Work on industrial development aimed at boosting productive capacity through the development of regional value-chains. Studies have been commissioned which will inform the approach to this work programme;

    (iii) T-FTA which will combine markets of 26 countries with a population of nearly 600 million and a combined GDP of US$1 trillion aimed at launching a sizeable part of the continent onto a new developmental trajectory.

    The T-FTA negotiating principles have been agreed, the key principle is that negotiations will take place among T-FTA members with no preferential arrangements in place (meaning there will be no reopening of the SADC Trade Protocol). In effect South Africa with its SACU Member States (Botswana, Lesotho, Namibia and Swaziland) will negotiate as a Customs Union, tariff concessions with non-SADC Members of TFTA (notably EAC and Egypt).

    South Africa is developing its market access offers and requests, and texts, in NEDLAC, as basis for the SACU position. Tariff offers will be exchanged by negotiating parties after national and regional consultations have been finalised. Negotiations on the texts for the T-FTA Agreement are ongoing. A system to address non-tariff barriers (NTBs) has been established and the private sector is increasingly utilizing it to report NTBs in the Tripartite.

    Reply received: February 2013

    QUESTION 161 FOR WRITTEN REPLY

    161. Mr M Mnqasela (DA) to ask the Minister of Trade and Industry:

    (1) How many legal matters were dealt with by his department (a) in the (i) 2009-10, (ii) 2010-11 and (iii) 2011-12 financial years and (b) during the period 1 April 2012 up to the latest specified date for which information is available;

    (2) (a) how many of the specified legal matters were dealt with by (i) the State Attorney and (ii) private attorneys during the specified periods and (b) what are the reasons why his department was not represented by the State Attorney in each specified case;

    (3) What total amounts were paid by his department to (a) the State Attorney and (b) private attorneys during the specified periods?

    REPLY

    (1)

    (a)

    (b) 1 April 2012 to date

    (i) 2009-10

    24

    82

    (ii) 2010-11

    73

    (iii) 2011-12

    64

    (2)

    (a) (i)

    (a) (ii)

    (b)

    2009/10

    24

    0

    n/a

    2010/11

    73

    0

    n/a

    2011/12

    63

    2

    a) In one matter private attorneys were contracted in order to maintain continuity as the private attorneys had conducted the forensic investigation.

    b) In the other matter upon referral to the office of the State Attorney was recommended to be managed by a firm of attorneys pursuant to the provisions of the State Attorneys Act. The matter was one such that the requisite experience and/or specialising in the area of law were not readily available in the office of the State Attorney therefore private attorneys were utilised due to the technical nature of the matter.

    2012/13

    82

    1

    The matter upon referral to the office of the State Attorney was recommended to be managed by a firm of attorneys pursuant to the provisions of the State Attorneys Act. The matter was one such that the requisite experience and/or specialising in the area of law were not readily available in the office of the State Attorney therefore private attorneys were utilised due to the technical nature of the matter.

    (3)

    (a)

    (b)

    (i)

    2009/10

    R26 767 461.49

    -

    (ii)

    2010/11

    R11 254 325.79

    -

    (iii)

    2011/12

    R16 482 576.68

    R937 477.67

    (iv)

    2012/13

    R7 901 265.05

    R1 200 000.00

    Reply received: February 2013

    QUESTION 128 FOR WRITTEN REPLY

    DUE DATE: 20 FEBRUARY 2013

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

    (1) Whether (a) his department and (b) any entities reporting to him paid any bonuses to senior officials in December 2012; if so, in each specified case, (i) to whom and (ii) what amount was paid;

    (2) whether the specified bonuses were performance-based; if not, what is the justification for each bonus; if so, in each case, from which budget were the performance bonuses paid;

    (3) whether, in each case, (a) a performance agreement was signed with the official and (b) regular performance assessments were conducted; if not, why not, in each case; if so, what are the relevant details in each case? NW134E

    (a)Response:

    Department of Trade and Industry

    (1)(a) No bonuses were paid in December 2012

    (2) Not applicable.

    (3) Not applicable

    (b) Responses from Entities

    See attached

    Reply received: February 2013

    QUESTION 95 FOR WRITTEN REPLY

    95. Dr J C Kloppers-Lourens (DA) to ask the Minister of Trade and Industry:

    (a) How many tickets did (i) his department and (ii) any of its entities purchase to attend business breakfasts hosted by a certain newspaper (name furnished) (aa) in the (aaa) 2010-11 and (bbb) 2011-12 financial years and (bb) during the period 1 April 2012 up to the latest specified date for which information is available and (b) what was the total cost in each case? NW101E

    (a)Response:

    Department of Trade and Industry

    No tickets were purchased and no expenditure was incurred towards the hosting of the business breakfast.

    (b) Responses from Entities are attached

    Reply received: February 2013

    QUESTION 31 FOR WRITTEN REPLY

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

    (1) Whether he has been informed that (a) only locally recruited marketing officers and not departmentally appointed trade representatives are stationed in (i) Bangkok and (ii) Singapore and (b) neither marketing officers nor trade representatives are currently stationed at (i) Jakarta and (ii) Kuala Lumpur; if not,

    (2) whether he intends to investigate the matter; if not, why not; if so, what are the relevant details;

    (3) what are the reasons for not appointing adequately trained (a) marketing officers and (b) trade representatives at missions within (i) the Southeast Asian economic bloc and (ii) other missions globally;

    (4) whether he intends taking any corrective steps to rectify the shortages of adequately trained (a) marketing officers and (b) trade representatives at missions within (i) the Southeast Asian economic bloc and (ii) other missions globally; if not, why not; if so, what are the relevant details;

    (5) whether he has found that his department is doing enough to assist in the facilitation of trade with the Southeast Asian economic bloc; if not, how was this conclusion reached; if so, what are the relevant details? NW33E

    Reply:

    Question 1

    The Minister is aware of the staff complement and global footprint of offices managed by the dti, in this regard (a) only locally recruited marketing officers and not departmentally appointed trade representatives are stationed in (i) Bangkok and (ii) Singapore and that (b) neither marketing officers nor trade representatives are currently stationed at (i) Jakarta and (ii) Kuala Lumpur.

    Question 2

    The existence of Foreign Economic Offices is a factor of matching the Department's available resource in an effective way with those markets that shows the highest potential emanating from the considered methodology. The selection of Foreign Economic Offices is based on a prioritisation of those markets with the largest potential for South Africa from an investment and export perspective and key considerations such as regional integration, South Africa's role in Africa and important economic groupings such as BRICS. the dti has a mandate to service new high growth markets as well as those traditional markets which have been and still are important business partners to South Africa, albeit at a lower growth rate, such as the US, Japan, Germany and the UK. South Africa's inclusion into BRICS lends an added impetus for focus on countries such as Brazil, India, Russia and China.

    This is due to the untapped potential for collaboration not just from a bilateral trade and investment flow perspective, but from the perspective of African opportunities. As it stands 36% of our trade is with traditional partners, (EU and US), 21 % Africa BRICS 22 % and Asia 21 ( excluding China and India) As new trading patterns emerge, we cannot ignore the importance of China and India as key markets in Asia exhibiting impressive annual export growth rates. South Africa's exports to key developing countries of the South in 2011/12 increased by over 5%. Of the R6.42 billion export sales facilitated by the dti, 47% was from Africa and the Middle East and 15% from Asia. In terms of an investment pipeline of potential projects of R 40.91 Billion an amount of R 14.81 Billion has been recorded representing 36.2 % from developing countries which include China, India, South Korea, Singapore and Russia. Within this context we believe an investigation is not appropriate.

    Question 3

    Based on the budget provided to the dti (R117 Million 2012/ 2013), it currently manages 29 Foreign Economic Offices abroad. Due to limited resources, it is not possible to be represented in every market, however the dticollaborates closely with DIRCO offices to provide support on economic matters. The lack of an economic office does not mean that these lucrative opportunities in these markets have been ignored. The rise of the global South is an opportunity that the dti is harnessing and various activities have been embarked on annually in the aforementioned markets. The global footprint covers Africa (10) Asia (7), Middle East (2), Europe (4), North America (1), South America (1) and Multi-lateral offices (4).

    Question 4

    To complement the existing global footprint TISA has strategic relationships and partnerships with counterpart agencies in these countries such as MATRADE and MIDA in Malaysia, BOI in Thailand, Indonesia Investment Coordinating Board, EDB and IE in Singapore. In the past year a number of high level business delegations were facilitated between TISA and counterpart agencies on a reciprocal basis. TISA recently facilitated the establishment of IE Singapore offices in South Africa. The intent of IE Singapore is to support Singapore investment into South Africa and vice versa. Furthermore a number of engagements has been considered with key countries in Africa and Asia.

    Question 5

    the dti views South East Asian countries such as Malaysia, Indonesia, Singapore and Thailand as integral to our market diversification strategy and as such there is active engagement with these countries on both export and investment related programmes. South East Asian countries are recognised as a model for regional cooperation and integration from which the dti has learnt through years of active engagement with countries such as Malaysia and Singapore. the dti regularly participates in trade exhibitions and missions in these countries (e.g. Defence Services Asia: Malaysia in 2012, investment recruitment mission to Singapore in 2011). Furthermore, the Minister undertook an official visit to Indonesia in 2012, to revive and dynamise the Joint Trade Committee (JTC). An outcome of these efforts is that the JTC will re-convene in South Africa later this year. This intensification of trade initiatives with Indonesia highlights the systematic attention being given to deepen trade links with this key economy

    One of the notable successes of participating at Defence Services Malaysia was with Denel signing a R3.5 billion contract with the Malaysian Government to supply defence equipment. This year, Outward Selling Missions have been planned for Singapore, Indonesia, Vietnam and Thailand, in order to leverage opportunities in these markets for agro-processing, capital equipment, electro-technical and other sectors. South Africa also engages closely with the economic agencies of these countries to collaborate on mutually beneficial projects.