Questions & Replies: Trade & Industry

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

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.

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.

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

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

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)

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

The information below relates to former dti officials:

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:

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, 50^th 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:

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

(2) Internal Appeals: the dti

(3) Contact details:

Information Officer for the dti:

Mr Lionel October, Director-General
Phone: +27 12 394 3075
Fax: +27 12 394 0323
eMail: [email protected]

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: [email protected]
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 2^nd 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)

(2)

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)

(2)

(3)

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.