Questions & Replies: Economic Development

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2013-03-05

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Reply received: December 2013

PARLIAMENTARY QUESTION NO 3164

DATE OF PUBLICATION: 15 November 2013

Adv L H Max (DA) to ask the Minister of Economic Development:

(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? NW3722E

REPLY

(1) The Economic Development Department did not receive any funds for the Expanded Public Works Programme for the 2010/11, 2011/12 and 2012/13 financial years.

(2) N/A

(3) N/A

(4) N/A

(5) N/A

Reply received: December 2013

PARLIAMENTARY QUESTION NO 3112

DATE OF PUBLICATION: 15 November 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

What amount of money did each of the entities reporting to him spend on their annual reports? NW3669E

REPLY

Expenditure for the Annual Report for the year 2012/13 by entities reporting to Economic Development Department is as follows:

Competition Commission: R 402 872.12

Competition Tribunal: R 130 797.90

ITAC: R 97 128.00

IDC: R 1 484 787.00

Sefa: R 294 358.30

Reply received: December 2013

PARLIAMENTARY QUESTION NO 3076

DATE OF PUBLICATION: 15 November 2013

Mr N J J van R Koornhof (Cope) to ask the Minister of Economic Development:

(a) In how many private companies did the Industrial Development Corporation (IDC) invest, (b) who are these companies and (c) what (i) amounts were invested respectively and (ii) are the returns on these investments in each case? NW3634E

REPLY

(a) The IDC supports 1200 businesses with either loans or equity stakes. Of these, 21 are listed entities, 39 are IDC subsidiaries and 1140 are private companies, closed corporations or trusts.

The size of the IDC loan portfolio as at 31 October 2013 was R21 billion and the size of the equity portfolio was R103 billion. The IDC's own net operating profit after tax for 2013 was R1,52 billion.

Pricing range from prime less 5% to prime plus 6%. Returns in individual companies are influenced by among others, the nature of the financial transaction (loan or equity), the scheme under which each loan is made (e.g. those with high employment impact are offered loans at a lower return to the IDC), the sector, the term of the loan and the performance of the individual company.

(b) I am advised that the IDC does not normally disclose the names of companies due to the nature of its confidentiality agreements with clients. I refer the honourable Member to the latest IDC annual report, accessible from www.idc.co.za which contains further details on the investment levels and the aggregate returns as well as examples of investments in private companies.

Reply received: November 2013

PARLIAMENTARY QUESTION NO 2960

DATE OF PUBLICATION: 25 OCTOBER 2013

Mr L S Ngonyama (Cope) to ask the Minister of Economic Development:

What are the big five factors that he has found are slowing economic growth? NW3511E

REPLY

Economic growth is affected by a range of factors, including the sluggish performance of the global economy, a slowdown in demand for key commodity exports from South Africa and production disruptions in the domestic economy.

From a longer term point, the structural challenges to more inclusive, faster growth include gaps in infrastructure and skills, an over-reliance on exports of raw materials and pervasive collusion by corporations in the domestic economy. The size of the local market is too small for significant economies of scale for investment and production, hence government is working with 25 other African countries to finalise terms for a free trade area involving countries with a combined population of about 600 million people.

Steps being taken to address the other challenges include the large investment in new infrastructure, shifting more of the focus of education to technical and vocational skills and promoting sounder industrial relations to reduce downtime in the economy. Tougher action is being taken against anti-competitive conduct in the economy. Levels of industrial funding provided through development finance institutions have been increased over the last few years. A focused local industrialisation programme is being pursued, with a number of products and sectors designated for local procurement by public entities.

Reply received: November 2013

PARLIAMENTARY QUESTION NO 2952

DATE OF PUBLICATION: 25 OCTOBER 2013

Mr T D Harris (DA) to ask the Minister of Economic Development:

(1) Whether the R5 billion originally set aside for the youth wage subsidy will be used solely for the Youth Employment Accord (YEA); if not, why not; if so, for what reasons;

(2) (a) what is the total draft cost breakdown of the R5 billion budget for the YEA and (b) how does the Employment Tax Incentive Bill fits into this budget? NW3503E

REPLY

In the Budget Speech of February 2011, the Minister of Finance announced the intention to design a tax incentive for companies employing young people. The initial incentive was estimated to cost R5 billion in foregone revenue. Since it was not a budgeted expenditure allocation, it could not be redirected to a new expenditure item. The Minister of Finance has addressed the cost of the new Employment Tax Incentive Scheme during the discussion on the draft legislation.

The Youth Employment Accord is financed from a number of different sources. These include existing budgets of government departments, such as the Expanded Public Works Programme and monies made available for internships; funding from development finance institutions such as the funds set aside for youth entrepreneurship through the Industrial Development Corporation and the Small Business Finance Agency; regulatory measures on existing private sector incentive schemes of the Department of Trade and Industry and other departments; the funding from the national Jobs Fund administered through the Development Bank of Southern Africa; and the resources of private sector partners.

Reply received: November 2013

PARLIAMENTARY QUESTION NO 2949

DATE OF PUBLICATION: 25 OCTOBER 2013

Mr S C Motau (DA) to ask the Minister of Economic Development:

(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) new channel;

(2) Were these advertisements placed through the Government Information and Communication System? NW3500E

REPLY

(1) (a) Nil

(b) Nil

(2) N/A

Reply received: November 2013

PARLIAMENTARY QUESTION NO 2916

DATE OF PUBLICATION: 25 OCTOBER 2013

Mr S J F Marais(DA) to ask the Minister of Economic Development:

(1) What amount has (a) his department and (b) each of the entities reporting to him spent on advertising (i) in The New Age newspaper and (ii) on its website between 1 December 2012 and 31 August 2013;

(2) were these advertisements placed through the Government Information and Communication System? NW3467E

REPLY

1(a) See the appended table for Economic Development Department spending with each print media house for the period 1 December 2012 and 31 August 2013

1(b) Nil

Reply received: October 2013

PARLIAMENTARY QUESTION NO 2827

DATE OF PUBLICATION: 18 OCTOBER 2013

Mr I M Ollis (DA) to ask the Minister of Economic Development:

(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? NW3332E

REPLY

(1) (a) & (b) Nil

(2) N/A

Reply received: October 2013

PARLIAMENTARY QUESTION NO 2638

DATE OF PUBLICATION: 11 OCTOBER 2013

Mrs J F Terblanche (DA) to ask the Minister of Economic Development:

(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?

NW3126E

REPLY

(1) The performance assessments for 2012/13 are in the process of being concluded. It is anticipated that this will be finalised in November 2013.

(2) In the 2012/13 APP of the Economic Development Department (EDD), 42 performance targets were listed, of which 41 were achieved. Of these, 53% (22) met the target, 45.24% (19) exceeded the target. Only 2% (1 target) was underachieved.

Reply received: October 2013

PARLIAMENTARY QUESTION NO 2595

DATE OF PUBLICATION: 11 OCTOBER 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

How many jobs have been created as a result of the roll-out of the Government's infrastructure programme? NW3082E

REPLY

The PICC is currently tracking job numbers in construction on 150 project clusters of the National Infrastructure Plan. As at March 2013, approximately 180 000 people were employed on these projects, with the largest single-site employment at Medupi power station (14 418 persons) and Kusile power station (14 002 persons).

Reply received: October 2013

PARLIAMENTARY QUESTION NO 2572

DATE OF PUBLICATION: 11 OCTOBER 2013

Mr N D du Toit (DA) to ask the Minister of Economic Development:

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 1 September 2012 and 30 August 2013? NW3059E

REPLY

(a) Nil

(b) Bil

Reply received: October 2013

PARLIAMENTARY QUESTION NO 2550

DATE OF PUBLICATION: 11 OCTOBER 2013

Mr T D Harris (DA) to ask the Minister of Economic Development:

With respect to loans extended and investments made by the Industrial Development Corporation, (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 (i) invested and (ii) lent 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? NW3037E

REPLY

Over the 5 financial years from 2008/9 to 2012/13, the IDC invested a significant sum of money in the South African economy. Approvals of projects totalling R55 billion of IDC support were made and R43 billion was disbursed by the IDC. A total of 151 900 jobs were created or saved, of which 90 479 were new permanent jobs.

The information pertaining to (a)(i) to (v), (b)(i) to (ii) and (c) is contained in the tables below.

Table 1: Number and Value of Funding Approvals

Financial year

(a) Number of applications approved

(b) (i) (ii) Amounts of funding approved (R'm)

Amounts disbursed (R'm)

Debt

Equity

Guarantees

Total

(i) 2008/09

231

7 302

3 124

336

10 762

7 623

(ii) 2009/10

213

8 976

271

173

9 420

5 139

(iii) 2010/11

220

5 492

2 225

1 003

8 720

6 279

(iv) 2011/12

293

7 395

5 226

865

13 486

8 385

(v) 2012/13

238

5 721

5 928

1 424

13 073

16 023

Table 2: Jobs Impact

Financial year

( c) Number of jobs

Expected to be created

Expected to be saved

Total

Permanent

Temporary and seasonal (annualised)

2008/09

20 266

3 967

2 528

26 761

2009/10

16 658

53

8 291

25 002

2010/11

16 222

3 438

11 656

31 316

2011/12

24 793

9 995

11 168

45 956

2012/13

12 540

6 382

3 950

22 872

(d) Data on the average planned remuneration is not readily available. However, the IDC does not provide funding to companies which do not comply with labour legislation, including regulations on minimum wages.

(e) The IDC invests in businesses that can demonstrate economic viability. As such, every investment assumes that permanent jobs will be sustainable. In cases where a business has challenges, IDC makes every effort to ensure sustainability of the business. These interventions can include restructuring of funding facilities, turnaround interventions as well as business support to address skills or other issues that have been identified in the business.

Reply received: November 2013

PARLIAMENTARY QUESTION NO 2543

DATE OF PUBLICATION: 11 OCTOBER 2013

Mr K S Mubu (DA) to the Minister of Economic Development:

(a) To which membership bodies do (i) his department and (ii) each of its entities belong, (b) what are the costs related to each membership, (c) for how long has (i) his department and (ii) each of its entities been members of each body and (d) in each case (i) how was the decision taken to become a member and (ii) what are the benefits of being a member? NW3030E

REPLY

(a) (i) EDD

The Economic Development Department does not have corporate membership with any Professional Body.

(ii) ITAC

International Trade Administration Commission of South Africa does not have corporate membership with any Professional Body.

COMPETITION TRIBUNAL

(a) (ii) membership

(b) Costs

(c) (ii) How long

(d) (i) Decision to become a member

(ii) Benefits of being a member

International Competition Network (ICN)

None

1999

Both the Competition Tribunal and Competition Commission took a joint decision at the time to join this body. The leadership communicated this to the then line department, the dti, who supported the decision.

Benefits from membership of the ICN has been wide ranging and has helped Competition Tribunal to keep up to date with international best practice in the field of competition regulation and provide a forum for exchanging ideas and training members of staff in key skills. In the case of the ICN South African competition authorities were given the privilege of hosting an international conference in May 2006 and hosting regional conference in Cape Town this year on cartels, from 16 – 18 October 2013.

Organisation for Economic Co-operation and Development (OECD) Competition Committee

None

2006

Both the Competition Tribunal and Competition Commission took a joint decision at the time to join this body. The leadership at the time communicated this to the then line department, the dti who supported the decision.

In the case of the OECD the Competition Tribunal benefitted from a peer review conducted by an international expert in 2003.

COMPETITION COMMISSION

(a) (ii) membership

(b) Costs

(c) (ii) How long

(d) (i) Decision to become a member

(ii) Benefits of being a member

International Competition Network (ICN)

None

1999

Both the Competition Tribunal and Competition Commission took a joint decision at the time to join this body. The leadership communicated this to the then line department, the dti, who supported the decision.

This body provides the CCSA (Competition Commission) with an opportunity to gain insights and best practice from other leading competition agencies across the world. It also allows South Africa to share its perspectives on competition policy with other countries. The ICN also provides extensive knowledge materials that the CCSA uses in its capacity building activities.

African Competition Forum (ACF)

None

2011

Competition Commissioner

The ACF provides a platform to engage with other African agencies.

Organisation for Economic Co-operation and Development (OECD) Competition Committee

None

2006

Membership decision taken by the Executive Committee

It is a forum to share information and experiences.

United Nations Conference on Trade and Development (UNCTAD) Intergovernmental Group of Experts (IGE) on Competition Law and Policy

None

1999

Membership decision taken by the Executive Committee

It is a forum to share information and experiences.

Southern Africa Development Community (SADC) Competition and Consumer Policy and Law Committee (CCOPOLC)

None

2008

Membership decision taken by the Executive Committee

It is a forum to share information and experiences.

SEFA

(a) (ii) membership

(b) Costs

(c) (ii) How long

(d) (i) Decision to become a member

(ii) Benefits of being a member

Mangaung Chamber of Commerce and Industry (MCCI)

R9 125.00 per annum

Since 2011

Membership decision was taken by EXCO (Khula Enterprise)

The MCCI provides sefa with a platform to network with potential clients.

Agricultural Economics Association of South Africa

R 500.00 per person per annum

(only 1 sefa official is a member of this association)

Since 2002

-

The Association provides networking and cross-pollination of information. It further provides an opportunity to share information on the various activities of different organisations; to gain information on the activities of other organisations; and what planned interventions are in the market.

IDC

(a) (ii) membership

(b) Costs

(c) (ii) How long

(d) (i) Decision to become a member

(ii) Benefits of being a member

Proudly South African

R100, 000, 00

2012

The decision was taken by IDC EXCO.

The IDC, through its membership of Proudly South Africa, gets to showcase its efforts to fund and promote local manufacturing. At the same time, the organization is able to promote its products and services amongst businesses that have similar localization objectives.

Membership of Proudly South Africa is in line with the national priority of creating sustainable jobs through sectors which the IDC focuses on: manufacturing and beneficiation of value-add products and services rendered by South African business.

National Business Initiative (NBI)

R 171,000, 00

2011

The decision was taken by IDC EXCO

The IDC benefits through participating in a platform for business leadership and a vision of how corporations/companies can contribute to shaping and achieving a sustainable society.

Association of Black Securities Investment Professionals (ABSIP)

R 50, 000, 00

2009

The decision was taken by IDC EXCO

Through membership of the ABSIP, the IDC helps to develop South Africa's skills in the development finance/financial services industry, and the participation by black people in the financial services industry.

This approach lends itself to business development through promoting IDC products and services to ABSIP members.

IDC professionals also get to attend conferences/seminars that are organised by ABSIP on pertinent issues that face the financial services sector.

Agricultural Business Chamber

R 188, 100, 00

2010

The decision was taken by IDC Exco.

The Agricultural Business Chamber affords the IDC access to the main role players in the sector, more importantly the food processing sector, which is vital not only for assisting in food security, but economic development as well.

South African Photovoltaic Association (SAPVIA)

R 30, 000, 00

3 years

The decision was taken by IDC Exco.

In line with the IDC's investment in the Green Economy, the associations give access to the main role players in the sector. The IDC gets to hear first-hand the opportunities and the challenges that face the sector, and thus is able to customise its offerings to suit and meet the requirements of this stakeholder grouping.

SA Wind Energy Association

R 33, 000,00

3 years

The decision was taken by IDC Exco.

The IDC gets to interact with the main role players in the sector as well as the members.

Membership of the association affords the IDC gets to hear first-hand the opportunities and the challenges that face the sector, and thus is able to customise its offerings to suit and meet the requirements of this stakeholder grouping.

South African Venture Capital Association (SAVCA)

R 80,000, 00

3 years

The decision was taken by IDC Exco.

In line with the IDC's provision of early stage funding for innovative products that make a difference, and can be commercialized, the IDC leadership is afforded the opportunity to share its plans as well as source opportunities for further funding.

This association promotes IDC products and services to members of associations that play in the venture capital space.

South Africa Chamber of Commerce and Industry (SACCI)

R268, 356.00

7 years

The decision was taken by IDC Exco

Membership of SACCI grants the IDC access to the SACCI Business Confidence Index. Through the body, the IDC interacts with many other agencies on business issues and utilises SACCI's informative seminars and presentations.

Business Leadership South Africa (BLSA)

R268,356,00

4 years

The decision was taken by IDC Exco.

Membership enables the IDC to engage South Africa's business leaders and multinationals in various platforms and dialogues that that are facilitated by the Business Leadership SA. These also enable IDC to promote its products and services.

Reply received: October 2013

PARLIAMENTARY QUESTION NO 2542

DATE OF PUBLICATION: 11 OCTOBER 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

(a) What are the envisaged benefits for the economy from the agreements signed between the Industrial Development Corporation and the BRICS development finance institutions and (b) what research has his department commissioned in this regard? NW3029E

REPLY

(a) In April 2013, the IDC signed an MoU with Banco National De Desenvolvimento Economico E Social (BNDES). BNDES is Brazil's largest development finance institution (DFI) and the main financing agent for development in Brazil. Since its foundation, in 1952, the BNDES has played a key role in stimulating the expansion of industry and infrastructure in Brazil. Over the course of the Bank's history, its operations have evolved in accordance with the Brazilian socio-economic challenges, and now they include support for exports, technological innovation, sustainable socio-environmental development and the modernization of public administration.

The envisaged benefits of the MOU are:

· to establish and develop comprehensive long-term cooperation between the IDC and BNDES, which will focus on the following sectors: automotive and components, including alternative-fuelled vehicles; aeronautics and components; energy generation, particularly the use of renewable/cleaner energy sources and co-generation; food processing and other agro industries; pharmaceuticals and mineral resource beneficiation;

· to exchange technical information with each other about their products and financial policies;

· to cooperate in the implementation of financing activities where such activities fall within the mandate, missions and policies of each party;

· to exchange information on projects of potential interest to the parties, particularly regarding small and medium enterprises; and

· to establish cooperation in the area of training, delegation visits and business symposiums.

(b) Government has in the past considered the impact of BNDES on Brazilian Industry and discussions have taken place with senior BNDES officials. The department will evaluate the impact of the MOU once a sufficient period has elapsed. No further research on the matter is warranted immediately.

Reply received: September 2013

PARLIAMENTARY QUESTION NO 2129

DATE OF PUBLICATION: 16 August 2013

Mr S J F Marais (DA) to ask the Minister of Economic Development:

(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?

NW2551E

REPLY

1. In respect of the years requested:

a. 2008-2009: The Honourable Member's attention is drawn to the fact that the Department did not exist.

b. 2009-2010: None.

c. 2010-2011: Three applications were received and none were approved.

d. 2011-2012: One employee on a part-time contract at Chief Director level was permitted to work outside the public sector for the time not covered by the EDD employment contract.

e. 2012-2013: Three employees were given permission to perform work outside the public sector, as follows:

i. Two Chief Directors on part-time contracts were permitted to work outside the public sector for the time not covered by the EDD employment contract.

ii. One full-time staff member employed at Chief Director level was permitted to chair a Transformation Committee of a non-profit organisation of planners.

f. 2013-2014: Three employees were given permission to perform work outside the public sector, as follows:

i. Two employees (one at Chief Director level and one at Director level) who are seconded to EDD were permitted to lecture at universities on matters falling within the scope of the Department's work focus.

ii. One Chief Director on a part-time contract was permitted to work outside the public sector for the time not covered by the EDD employment contract.

2. The applications to perform work outside normal hours are done in accordance with the 'National Policy on Remunerative Work Outside the Public Service' issued by the DPSA. Applications are considered by the Minister. No instances of contravention of the policy have been brought to my attention and hence no steps against transgressors have been necessary.

Reply received: August 2013

PARLIAMENTARY QUESTION NO 2096

DATE OF PUBLICATION: 16 August 2013

Mr S Esau (DA) to ask the Minister of Economic Development:

(a) Does his department prepare quarterly interim financial statements and (b) are these statements considered by the Audit Committee? NW2518E

REPLY

(a) & (b) Yes

Reply received: August 2013

PARLIAMENTARY QUESTION NO 2039

DATE OF PUBLICATION: 16 August 2013

Mr M Hlengwa (IFP) to ask the Minister of Economic Development:

(1) What (a) is the total number of youth-owned businesses that have benefitted from the Industrial Development Corporation of South Africa Ltd (IDC) in the past three years and (b) programmes have been implemented to ensure that these businesses are sustainable;

(2) how many of these businesses (a) are repaying their loans as per their agreement and (b) are defaulting in repaying their loans;

(3) what (a) is the total amount paid by the IDC in assisting these youth-owned businesses and (b) amount has been repaid? NW2454E

REPLY

In the past, the Industrial Development Corporation did not keep separate statistics of youth-owned businesses. However, with the allocation of R1 billion for the Gro-E Youth Scheme geared towards funding job creating youth-owned businesses in April 2013, and the signing of the Youth Employment Accord, the IDC will be keeping statistics and will report on business sustainability going forward.

Reply received: August 2013

PARLIAMENTARY QUESTION NO 1909

DATE OF PUBLICATION: 2 AUGUST 2013

Mr S B Farrow (DA) to ask the Minister of Economic Development:

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 Minister since 1 January 2012?NW2258E

REPLY

Minister Patel

Make

Model

Year

Date

Financial Cost

Kilometres

Mercedes Benz

C180

2012

08/03/2012

1 012.16

58 km

Mercedes Benz

C180

2012

13 - 15/04/2012

2 121.17

184km

Mercedes Benz

C180

2012

09 - 10/05/2012

1 529.69

123km

Mercedes Benz

C180

2012

05 - 06/06/2012

1 341.79

126km

Mercedes Benz

C180K

2012

06 - 07/06/2012

2 180.04

126km

Mercedes Benz

C180

2012

14 - 15/07/2012

3 178.19

356km

Audi

Audi A4 1.8

2012

10/08/2012

1 545.12

23km

12 908.16

Deputy Minister Mkhize

Make

Model

Year

Date

Financial Cost

Kilometres

Toyota Fortuner

Fortuner 5

2012

02 - 04/08/2012

8 042.31

964km

Audi

Audi A4

2012

03 - 04/08/2012

10 410.24

1008km

Mercedes Benz

C180

2012

24 - 25/08/2012

1 860.67

251km

Mercedes Benz

C180

2012

25 - 26/08/2012

1 834.92

273km

Mercedez Benz

C180 CGI

2012

27 - 28/09/2012

4 173.15

143km

Landrover

Landrover Ovdi

2012

10/11/2012

4 900.12

250km

31 221.41

Audi

Audi A5

2013

10 - 12/01/2013

6 504.23

371km

Mercedes Benz

E300

2013

25/01/2013

2 335.71

59km

Etios

Etios

2013

22 - 23/02/2013

912.51

22km

Mercedes Benz

E300

2013

10 - 11/02/2013

7 830.07

151km

BMW

X3

2013

19 - 21/02/2013

5 257.45

108km

Landrover

Landrover Ovdi 5

2013

21 - 24/02/2013

14 814.16

832km

Audi

Audi 5

2013

25 - 27/02/2013

11 997.73

458km

Mercedes Benz

E300

2013

01 - 02/03/2013

2 927.86

173km

Mercedes Benz

E300

2013

18 - 20/03/2013

7 176.76

167km

BMW

X5

2013

15 - 16/03/2013

14 265.18

1054km

74 021.66

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

Reply received: August 2013

PARLIAMENTARY QUESTION NO 1824

DATE OF PUBLICATION: 26 JULY 2013

1824. Ms E More (DA) to ask the Minister of Economic Development:

(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? NW2172E

REPLY

In 2009-10, EDD did not contract any consultants.

In 2010/11, EDD contracted three consultant firms and one (1) senior researcher. The researcher was neither a previous official of the department nor a former public servant.

It is not known who in the firms undertook the EDD work and hence it is not possible to determine the applicability of part 2 of the question in relation to these firms. However, none of the firms are known to have employed former officials of EDD

In 2011/12, EDD contracted six (6) firms, one of which was a law firm and another an accounting services firm, both of which helped with the merger of Khula and samaf. In addition to this, a technical unit of National Treasury was used for the same purpose but is not regarded as a consultant.

It is not known who in the various private sector firms undertook the EDD work and hence it is not possible to determine the applicability of part 2 of the question in relation to these firms. However, none of the firms are known to have employed former officials of EDD.

In 2012/13, EDD contracted five (5) firms, one of which was a law firm and five (5) individual consultants, one of whom was a researcher, one a legal researcher and three were advocates.

Among the advocates, one Senior Counsel had previously been employed in the public service but not in EDD.

One of the individual consultants was a former public servant who had previously been employed in the Department.

In 2013/14, a researcher who had previously been employed in the public service though not in the Department, was utilised. No former officials of the department were utilised as consultants.

Reply received: August 2013

PARLIAMENTARY QUESTION NO 1791

DATE OF PUBLICATION: 26 JULY 2013

1791. Mr M Swart (DA) to ask the Minister of Economic Development:

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? NW2138E

REPLY

(a) (i) Economic Development Department has no buildings that are national key

points

(ii) Entities have no buildings that are national key points

(b) Not applicable

Reply received: August 2013

PARLIAMENTARY QUESTION NO 1757

DATE OF PUBLICATION: 26 JULY 2013

1757. Mr S B Farrow (DA) to ask the Minister of Economic Development:

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) the Deputy Minister since 1 January 2012? NW2104E

REPLY

Minister Patel – None

Deputy Minister Mkhize

(a) Audi Q7

(b) 3.0 TDI

(c) 2013

(d) R684,987.47

Reply received: August 2013

PARLIAMENTARY QUESTION NO 1720

DATE OF PUBLICATION: 26 JULY 2013

1720. Mr K S Mubu (DA) to ask the Minister of Economic Development:

(a) What was the cost to the Competition Commission of following the Construction Fast-Track Settlement Process against the colluding construction companies (details furnished) instead of following normal legal action and (b) on what basis was the decision made? NW2067E

REPLY

COMPETITION COMMISSION

The Competition fast-track process was taken by the competition authorities in order to expedite the process of concluding the cartel investigations; provide an incentive to companies to fully disclose all evidence of collusion involving their own staff as well as other members of their cartels; and ensure that the cartels members are penalized for their collusion, price-fixing and breach of the law; and releases resources in the Commission to investigate new case of anti-competitive conduct.

One effect of the fast-track settlement was that the Competition Commission (and Tribunal) did not incur the additional extensive legal and staff costs that results from prolonged, contested litigation.

While it is not possible to accurately quantify what the costs are likely to have been for contested cases, the Competition Commission and Tribunal have estimated, based on average costs and time taken in previous contested matters, what the probable costs would have been if all 21 companies in the fast-track settlement process had opposed the Competition Commission findings.

Based on this, the likely legal and human resource costs to the State would have been more than R228 million in total, had each case been taken up to the Supreme Court of Appeal. Using the fast-track process, actual costs were approximately R22 million. The State had an estimated saving of about R206 million as a result of the fast-track process and it imposed penalties of R1,4 billion on the companies concerned. Three companies in the list of 21 companies who took part in the fast-track process are still subject to prosecution by the Competition Commission.

Reply received: August 2013

PARLIAMENTARY QUESTION NO 1713

DATE OF PUBLICATION: 26 JULY 2013

1713. Mr K S Mubu (DA) to ask the Minister of Economic Development:

(1) Has he commissioned any research into the impact of the delay at the Medupi power station on (a) the economy and (b) job creation;

(2) how does he intend to counter any negative impact that the delay will have on economic development and job creation? NW2060E

REPLY

The Department, through the PICC work, monitors the construction progress at Medupi Power Station on a quarterly basis. This includes the number of jobs, localisation spend and project spend. Discussions are also held with the agency responsible for the contract, namely Eskom. The PICC is focussed on helping Eskom to shorten the period of the delay to the minimum and to ensure that the challenges are addressed.

Based on this monitoring and its own work, the shareholding Ministry, namely the Minister of Public Enterprises, has made public announcements regarding steps to be taken to address challenges with delays caused by contractors on site.

In addition to these steps on Medupi itself, Eskom has also brought moth-balled power stations back onto the grid to ensure that additional energy is made available. A public announcement will be made in due course on the extent of this additional energy.

Reply received: July 2013

PARLIAMENTARY QUESTION NO 1634

DATE OF PUBLICATION: 21 JUNE 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

(a) How many companies that benefited from the Salvage Fund for Companies in Distress have paid back the funds and (b) in each case, (i) how much has been paid back and (ii) how much is still outstanding? NW1980E

REPLY

(a) There are 78 companies that benefited from the R4.9 billion approved from the Distress Fund of which, R3.2 billion was drawn, leaving R1.7 billion available for draw down.

(b) (i) 3 companies have fully repaid approximately R1.5 billion

(ii) 42 have partially repaid totalling R126 million and 12 have been written off as bad debts, leaving 62 companies with active facilities totalling R1.64 billion.

Reply received: July 2013

PARLIAMENTARY QUESTION NO 1568

DATE OF PUBLICATION: 21 JUNE 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

What is the estimated amount of jobs which will be created by the Youth Employment Accord in the (a) short, (b) medium and (c) long term? NW1914E

REPLY

The Youth Employment Accord contain commitments across the public and private sectors. It provides for a range of measures to ensure that youth employment, training and job placement numbers are increased significantly over the next two years.

The measures include voluntary commitments, incentives and targets.

The various signatories will consolidate their commitments for a project training framework and as this is completed, the results will be made public.

The extent of the efforts and the success thereof will in turn affect the number of jobs which will be created in the short, medium and long term.

Reply received: June 2013

PARLIAMENTARY QUESTION NO 1502

DATE OF PUBLICATION: 14 JUNE 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

How many executive management positions in entities reporting to him are currently (a) vacant and (b) filled by a person in an acting capacity? NW1845E

REPLY

Entities

(a) vacant posts

(b) acting capacity

IDC

1

0

SEFA

1

1

ITAC

1

0

Competition Tribunal

0

0

Competition Commission

1

2

Reply received: July 2013

PARLIAMENTARY QUESTION NO 1501

DATE OF PUBLICATION: 14 JUNE 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

(a) How much did senior staff of entities reporting to him spend on (i)(aa) international and (bb) domestic flights and (ii) accommodation in the 2012-13 financial year and (b) what are the relevant details in each case? NW1844E

REPLY

(a) (i) (aa) and (bb)

(i) Flights

(aa)

International

Cost in rands

(bb)

Domestic

Cost in rands

Competition Commission

R 800, 859.02

R 153,189.00

Competition Tribunal

R 376,798.80

R 257 890.08

ITAC

R 159,544.00

R 147,090.00

IDC

R 1,051,195.00

R 1,155,818.14

SEFA

R 0.00

R 313,664.00

(ii) Accommodation

Entity

(aa)

International

Cost in rands

(bb)

Domestic

Cost in rands

Competition Commission

R 324,722.54

R 41,127.00

Competition Tribunal

R 91 261.88

R 114,885.89

ITAC

R 75,071.00

R 34,663.00

IDC

R 453,098.00

R 2,361,070.67

SEFA

R 0.00

R 79,480.00

(b)

Competition Commission

The international expenditure is incurred in order to attend Competition or Law related conferences such as the OECD and ICN conferences, and locally travel occurs in relation to the attendance of hearings related to Competition Appeals Court, meetings with stakeholders and parliamentary briefing sessions.

Competition Tribunal

The above-mentioned amounts were incurred in support of the Tribunal hearings attended by the 12 part-time members as part of the panel; attendance of four (4) Portfolio Committee meetings in Cape Town by the Tribunal officials and attending international conferences.

ITAC

The international expenditure was incurred for the attendance of the Tripartite Trade Negotiations forum, WTO Committee and SACU meetings. Domestically the costs were incurred for Portfolio Committee meetings, stakeholder meetings and attendance of workshops.

Industrial Corporation Development (IDC)

The expenditure was incurred for 15 SMS members whilst discharging the entity's mandate in the form of 47 meetings related to management responsibilities, 2 employee engagement feedback attendance, 14 parliamentary portfolio committees attendance, the launches of SEFA and the Upington office and the attendance of 5 conferences. Internationally, senior officials participated in 26 meetings with various institutions, attended 5 conferences, the signing of 3 MoU's and the attendance of training by 2 officials.

SEFA

In the financial year 2012/13 sefa Executives and a number of Board members travelled to Parliament for the Minister's Budget Vote and sefa media launch (April 2012) and relevant Portfolio Committee meetings.

Senior managers from the regional offices undertook travel to Pretoria for three workshops related to Change Management which was required because of the merge between the two entities. Other travel included occasional meetings with their superiors at the head office and compliance training (OHSA in March 2013). Regional Managers very seldom travel to other branches as they operate in their geographical area.

Head Office senior managers travelled for business purposes (i.e. meeting with clients, site visits).

Within sefa approximately 40 senior managers (this includes Executives, Line Managers as well as Middle – and Regional Managers) travel.

Reply received: July 2013

PARLIAMENTARY QUESTION NO 1500

DATE OF PUBLICATION: 14 JUNE 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

(a) How much did his department spend in the 2012-13 financial year on (i) international flights, (ii) domestic flights and (iii) hotel accommodation for (aa) him, (bb) his Deputy Minister and (cc) staff on post level 13 to 16 and (b) what are the relevant details in each case? NW1843E

REPLY

(a)

Flights

(i)

International

Cost in rands

(ii)

Domestic

Cost in rands

(aa) Minister

R 64,800.00

R 239,129.00

(bb) Deputy Minister

Nil

R 207,824.50

(cc) Senior Managers

R 67,306.00

R 1,867,461.00

Total

R 132,106.00

R 2,314,414.50

(iii) Accommodation

Entity

International

Cost in rands

Domestic

Cost in rands

(aa) Minister

R 16,074.49

R 4,361.00

(bb) Deputy Minister

Nil

R 147,672.02

(cc) Senior Managers

R 15,494.00

R 737,163.56

Total

R 31,568.49

R 889,196.58

(b)

EDD incurred the below mentioned expenditure in order to support the Minister, Deputy Minister and Senior officials in discharging their official duties in the following areas: to be present in Parliament, at the Portfolio committee meetings, stakeholder meetings, site visits on projects and launching of SIPs, supporting the PICC and attending the BRICS summit. Internationally the Minister attended the World Economic Forum meeting in Davos and one senior official attended an OECD meeting in Paris and one was at the 7th African Economic Conference in Kigali.

Reply received: June 2013

PARLIAMENTARY QUESTION NO 1468

DATE OF PUBLICATION: 14 JUNE 2013

Mr M H Hoosen (ID) to ask the Minister of Economic Development:

What time frame has been set for the implementation of a new interest rate regimen by the Small Enterprise Finance Agency (SEFA) for loans to small businesses? NW1811E

REPLY

sefa is in the process of developing a pricing model to inform the pricing for loans to small businesses which is expected to be ready for implementation before the end of the current financial year.

Reply received: June 2013

PARLIAMENTARY QUESTION NO PQ 1413

DATE OF PUBLICATION: 7 JUNE 2013

Mr M M Swathe (DA) to ask the Minister of Economic Development:

What amount did his department spend on (a) promotional items and (b) cocktail receptions on the occasion of his 2013 Budget Vote debate? NW1755E

REPLY

Nil – sponsorship was obtained.

Reply received: June 2013

PARLIAMENTARY QUESTION NO 1321

DATE OF PUBLICATION: 31 MAY 2013

Mr M M Swathe (DA) to ask the Minister of Economic Development:

(1) Whether (a) he, (b) his deputy minister, (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? NW1651E

REPLY

1.(a) No

(b) No

(c) No

(d) No

2. Not applicable

Reply received: June 2013

PARLIAMENTARY QUESTION NO 1224

DATE OF PUBLICATION: 23 MAY 2013

Mr S Mokgalapa (DA) to ask the Minister of Economic Development:

What amount has his department spent on (a) catering and (b) entertainment in the (i) 2012-13 financial year and (ii) since 1 April 2013? NW1470E

REPLY

"CATERING" refers to the following expenditure:

(a) Catering for lekgotla's, conferences, bosberade, workshops, indabas, courses, forums, hearings and meetings (b) Catering for a function for the launching/roll-out of an product of the department or division within a department (for example the Public-Private Partnership Manual); (c) Catering for interviews or training sessions; (d) Dinner and drinks supplied at year-end functions of a department or a division within a department; (e) Catering for the opening of Parliament; (f) Eatery provided for members of standing boards, other government bodies and official commissions or committees of enquiry. Refer to Classification circular 2 of 2008/09.

"ENTERTAINMENT" includes entertainment expenditure incurred by members of the Senior Management Service (SMS) as well as Ministers and his/her office bearers in performance of their duties, including but not limited to:(a) Luncheon meetings held with colleagues, foreign delegations and/or other individuals in and outside the public sector; and (b) Purchase of dinner during authorised overtime,. (Chapter 7 of the PSCBC Resolution No. 3 of 1999 – paragraph 3.

The EDD spent the following amounts during 2012/13 on Catering and Entertainment:

(a) Catering R 1,606,983.17

(b) Departmental Entertainment R 31,232.67

In addition, the Department contributed to catering for the international delegations participating in the BRICS Summit to the value of R452,610.00

EDD spent Catering and Entertainment April 2013:

(a) Catering (01 April 2013 to May 24, 2013) R 201,373.33

(b) Departmental Entertainment R 7,700.00

Reply received: June 2013

PARLIAMENTARY QUESTION NO 1191

DATE OF PUBLICATION: 23 MAY 2013

1191. Mr M H Hoosen (ID) to ask the Minister of Economic Development:

(a) Over what period will the Industrial Development Corporation's new youth fund be administered, (b) how will funding be made available to young entrepreneurs and (c) what (i) criteria will be used to (aa) identify and (bb) fund young entrepreneurs and (ii) are the further details regarding the (aa) administration and (bb) operation of the youth fund? NW1436E

REPLY

(a) The fund will be managed over a period of 3 years starting in the current financial year.

(b) The funding will be provided to youth owned businesses that comply with the IDC funding requirements and will be made available through the IDC national and regional offices.

(c) (i) criteria that will be used include

(aa) businesses that demonstrate economic merit and have prospects of acceptable profitability. The fund is open to youth up to 35 years in age.

(bb) businesses whose cost per new job created does not exceed R500 000 relative to the total funding required, comply to broad based Black Economic Empowerment certification from an accredited verification agency, and is a business operating in South Africa.

(ii) (aa) The IDC has ring fenced a R1bn portion of its GroE Fund allocation for funding and the administration of this will be managed by IDC. The funding period will be structured to meet the cash flow needs of the business and R1 billion is earmarked for funding of business owned by young people

(bb) the fund is open to start-up businesses or existing businesses for expansionary purposes, funding of buildings, equipment and working capital. Appropriate capital and interest payment holidays will be applied depending on the financial needs of the business; and there is no prescribed minimum for owner contribution.

Reply received: June 2013

PARLIAMENTARY QUESTION NO 1169

DATE OF PUBLICATION: 15 MAY 2013

Mr M G P Lekota (Cope) to ask the Minister of Economic Development:

Whether the Government, in keeping with the National Development Plan, has started to address structural constraints in the economy to overcome (a) high unemployment, (b) shortcomings in public education, (c) a weak skills base, (d) a resource-intensive economy bias and (e) spatial distribution patterns; if not, why not; if so, in each case, (i) to what extent has success been achieved and (ii) what are the further relevant details? NW1410E

REPLY

Yes, government is addressing structural constraints in the economy to address outcomes (such as high unemployment) through policy measures such as improved public education and skills development.

On unemployment, the various measures taken to address the underlying challenges and respond to the immediate needs include

· The rollout of infrastructure through the National Infrastructure Plan

· Focus on industrialisation through IPAP, public local procurement policies, significant increases in the level of industrial funding through the IDC and a better small business funding institutional arrangement

· Job creation through the EPWP and Community Works Programmes.

· Rural development programmes intended to lift agricultural output and the livelihoods of the rural poor.

· Skills programmes as noted below.

On addressing shortcomings in public education, the Minister of Basic Education has set out the key steps taken by the Department in the Budget Vote held on 18 April 2013, details of which are contained in the relevant Hansard records. In addition, government entered into an Accord with social partners and progress with the Accord has been tabled in parliament. Details may be obtained at www.economic.gov.za .

On skills development, the Minister of Higher Education and Training has led a refocus to vocational training, including a greater emphasis on the role of FET Colleges, as well as greater emphasis on engineering and other high level skills at university level. Government entered into a Skills Accord with social partners and progress with the Accord has been tabled in parliament. Details may be obtained at www.economic.gov.za.

On the resource-intensive economy, steps have been taken to improve local beneficiation through greater focus on industrial opportunities. Amendments to the relevant legislation are under consideration.

On spatial distribution, actions through the National Infrastructure Plan are intended to change to spatial patterns of apartheid, including through a greater focus on rural infrastructure, connecting small-scale farmers to urban markets and addressing the gaps in social and economic infrastructure.

The initial indications of these various interventions show progress. Jobs have increased in the past three years, in spite of tougher global economic conditions and new challenges in the domestic economy, particularly through a less stable industrial relations environment in the mining sector. The infrastructure rollout and skills plans, as well as industrialisation efforts, have yielded positive results. The Honourable Member's attention is drawn among others to the Budget Vote speeches of the Ministers of Trade and Industry, Economic Development, Higher Education & Training, Agriculture Forestry and Fisheries as well as Mineral Resources. More will, however, need to be done in all the areas referred to in order to achieve our national goals.

Reply received: June 2013

PARLIAMENTARY QUESTION NO 1121

DATE OF PUBLICATION: 17 MAY 2013

Dr S M van Dyk (DA) to ask the Minister of Economic Development:

(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? NW1354E

REPLY

Please see attached reply

As a coordinating department responsible to facilitate integration within the public sector and with private sector entities, EDD hosts numerous conferences, policy platforms, workshops, round-tables and stakeholder meetings. It brings together local and international expertise to address the developmental challenges faced by South Africa.

These meetings have included local managers or workplace representatives, Cabinet members, the Presidency, international economic experts (including a Nobel Economics Laureate) and investors. The focus of meetings have been on matters as divergent as resolving workplace conflict, developing proposals for rural development, promoting better infrastructure implementation, gender and the NGP, youth employment, the impact of BBBEE on employment creation and equality, and other core socio-economic challenges. In each case, the aim was to bring together stakeholders to review progress and identify improvements in government policies, projects and other interventions.

A substantial part of the funding for conferences was used for the EDD Annual Conference in 2010/11 and 2011/12. In 2012/13, EDD also contributed to major conferences for the PICC, which led to the signing of MOUs with stakeholders on support for the build programme.

The EDD financial contribution to the BRICS Summit is not included in the above amount for 2012-13 as these were not an EDD organised events and the figures will be reflected on the financial statements of DIRCO.

EDD provided support to Conferences, such as green economy exhibition at the COP17 Conference in Durban in December 2011. These costs are not reflected since they are not conference costs but exhibitions open to the public. .

The following table sets out the spending on conferences organised by EDD for each of the requested years of spending.

Financial Year

Amounts

2009/10

(aa) R 0.00

2010/11

(bb) R 659 506.56

2011/12

(cc) R 1,047,524.03

2012/13

(dd) R 1,904,195.15

The amounts were spent on the following items:

· Venues and facilities for the meetings or conferences

· Catering and food for delegates

· Accommodation for out of town delegates

· Rental and hiring of equipment

· Conference facilitators or event management where external parties are used.

Information is being compiled from entities reporting to EDD and will be supplied in a supplementary reply.

Reply received: June 2013

PARLIAMENTARY QUESTION NO 1089

DATE OF PUBLICATION: 17 MAY 2013

Mr S B Farrow (DA) to ask the Minister of Economic Development:

(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? NW1322E

REPLY

See attached Annexures

The Economic Development Department used advertising to increase awareness and empower social partners to optimize growth and development opportunities. These included recruitment, tender, and marketing advertising.

EDD, excluding its entities, spent the following on adverts:

2009/10

R 0.00

2010/11

R 276, 671.01

2011/12

R 239, 153.60

2012/13

R 543, 136.00

In addition EDD has contributed to building national awareness on the value of South Africa's membership of BRICS, the opportunities created by the membership in respect of exports and investment opportunities, as well as public and stakeholder mobilisation behind government's National Infrastructure Build Programme underpinned by 18 Strategic Integrated Projects (SIPs) in collaboration with GCIS.

EDD's public entities have used advertising to increase awareness and empower stakeholders and the citizenry to optimize development opportunities provided by these agents of state. These included:

1. Promotion of public awareness of industrial development finance opportunities created by the IDC contributing to a significant increase in approval and disbursement rates of development finance granted by the institution. The IDC has given the full list of all media platforms used including total costs;

2. Advertising and marketing by the regulatory institutions that include the Competition Commission and the ITAC which improved levels of public awareness, increased reporting of suspected cases of collusion and corruption among companies, serving as a deterrent to potential culprits. Advertising served as one element of the broader advocacy campaign; and

3. Promotion of small business support and awareness of opportunities created by government in general and through the establishment of SEFA resulting in nearly doubling of approval and disbursements of predecessors together in financing small, micro and medium enterprises in South Africa.

EDD entities spent the following on adverts:

Entity

2009/10

2010/11

2011/12

2012/13

Industrial Development Corporation (IDC)

R 22,548,487

R7,898,042.00

R20,620,836.00

R24,700,350

Competition Commission (CC)

R 538,677.50

R394,645.47

R1,007,177.94

R569,758.27

Competition Tribunal

R 12,890.67

R30,351.36

R0.00

R0.00

International Trade Administration Commission

R310,475.00

R228,698.00

R220,132.00

R89,278.00

Small Enterprise Finance Agency (SEFA)

Not in existence

Not in existence

Not in existence

R398,674.00

Samaf

R34,473.00

R0.00

R0.00

-

Khula

R 1,193,854.70

R 975 188.46

R0.00

-

Reply received: June 2013

PARLIAMENTARY QUESTION NO 1052

DATE OF PUBLICATION: 17 MAY 2013

Mr M H Hoosen (ID) to ask the Minister of Economic Development:

With reference to the National Association of Automobile Manufacturers in South Africa, (a) what interventions, if any, has his department undertaken to address the decline in the value of catalytic converters exported to Europe which has decreased from R16bn in 2011 to R12bn in 2012 and (b) what plans are in place to ensure that the industry does not suffer any further declines? NW1281E

REPLY

The value of South African catalytic converter exports to Europe has fluctuated widely over the past five years, as follows:

YEAR

VALUE OF EXPORTS TO EUROPE

2008

R 20,4bn

2009

R 9,9bn

2010

R 11,9bn

2011

R 16bn

2012

R 12,4bn

In 2012, exports to Europe from all countries (not only South Africa), dropped by 8% in total in US dollar terms.

According to industry experts, reasons for this include changes in demand as a result of lower production of vehicles in Europe and multinational catalytic convertor manufacturers moving production from South Africa to Europe where they have significant spare capacity.

In respect of South Africa's exports, the European markets showing the largest percentage declines in rand value between 2011 and 2012 were Germany, the Netherlands, the United Kingdom, Poland and Spain.

South African exports in rand value have increased to certain other destinations, including:

· The United States

· Hungary

· Thailand

· India

· Argentina

· China

Under the Automotive Production and Development Programme (APDP), the catalytic converter industry has been declared a vulnerable sector, which entitles it to a higher level of production incentive than the standard components. In 2013 for example, vulnerable sectors received an 80% production incentive compared to a standard incentive of 55%; and vulnerable sectors received a 40% local materials allowance compared to a 25% standard local materials allowance.

The increased trade with fast-growing Asian and Latin American countries may also contribute to diversifying exports in the event that the European auto industry import of South African auto catalytic converters do not increase in the next few years.

Reply received: May 2013

PARLIAMENTARY QUESTION NO 967

DATE OF PUBLICATION: 10 MAY 2013

967. Mr J F Smalle (DA) to ask the Minister of Economic Development:

(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? NW1190E

REPLY

(1) Applications under the Promotion of Access to Information Act, Act 2 of 2000 since January 2011:

Department and Entities

Applications Received

Applications granted in terms of PAIA

Applications refused

Applications deemed refused under section 27

Economic Development Department (EDD)

2

2

0

0

International Trade Administration Commission of South Africa (ITAC)

11

10

1

It related to third party confidential information

0

Competition Commission (CC)

4

0

3

0

Competition Tribunal (CT)

0

0

0

0

Industrial Development Corporation (IDC)

2

2

0

0

SEFA

0

0

0

0

(2) EDD and its entities did not have any internal appeal under the Act, therefore no internal appeal were (i) granted, (ii) refused, (iii) deemed refused under Section 77(7).

(3) The information officers of the Economic Development Department and entities are:

Economic Development Department

Ms JA Schreiner,

Director-General

Tell: 012 394 3241

Email: rkhanzi@economic.gov.za

Industrial Development Corporation

Mr Geoffrey Qhena

Chief Executive Officer

Tell: 011 269 3000

Email:callcentre@idc.co.za

ITAC

Adv. Phozisa Mbiko

Tel: 012 394 3706

Email: pmbiko@itac.org.za

Competition Commission

Mr Shan Ramburuth

Commissioner
Tel: 012 394 3200/3332
Email:ccsa@comp.co.za

Competition Tribunal

Mr Norman Manoim

Chairperson

Tell: 012 394 3355

Email: normanm@comptrib.co.za

Sefa

Mr Thakani Mkhuvha

Chief Executive Officer

Tel: 012 748 9758

Email: thakhanim@sefa.org.za

Reply received: May 2013

Reply received: May 2013

PARLIAMENTARY QUESTION ON NW 932

DATE OF PUBLICATION: 10 MAY 2013

Mr. M H Hoosen (ID) to ask the Minister of Economic Development

What are the criteria for selecting intermediaries to disburse Small Enterprise Finance Agency (sefa) funds? NW 1154E

REPLY

Funding applications from intermediaries are considered on the basis of the approved eligibility criteria embedded in the normal sefa credit process. The wholesale lending business eligibility criteria of SEFA are:

1. Microfinance Intermediary

· A minimum of two years in operation, with demonstration of microfinance lending.

· Early growth and established intermediary (start-up by exception) who display the potential to meet microenterprise needs and expectations in line with sefa's mandate.

· The institution's ability to meet basic criteria and the extent of risk sharing with sefa.

· Alignment of the institution's operations to sefa's developmental objectives.

· Must be registered and operate within South Africa and comply with all the laws that apply to legal entities in the Republic.

· Must comply with relevant statutory and regulatory requirements in terms of governance and compliance including a board, regulatory compliance, risk management policies, reviewers and all other governance requirements as per Companies Act. Institutional Strengthening support will be provided where gaps have been identified.

· Lending to be in line with the National Credit Act with relevant and up-to date registration.

· Key personnel – (e.g. senior and executive management) must have the relevant investment and development finance credentials and no less than 5 years proven working experience as SMME investment analysts and / or microfinance specialists.

· Loan methodology including policies and systems to be able to assess, disburse, monitor and collect on loans.

· Financial systems ability and appropriateness.

· A 5-10% own contribution as percentage of loan amount or capital commitment may be required.

· Must comply with B-BBEE codes of good practice.

· Must be prepared to accept sefa interventions and business institutional support services.

2. Retail Financial intermediaries

· A minimum of two years in operation with demonstration of small and medium enterprise lending.

· Early growth and established intermediary (start-up by exception) who display the potential to meet SME needs and expectations in line with sefa's mandate.

· Intermediary to play a complementary role to sefa's direct lending activities by addressing specific markets and /or sectors.

· The institution's ability to meet basic criteria and the extent of risk sharing with sefa.

· Alignment of the institution's operations to sefa's developmental mandate.

· Must be registered and operate within South Africa and comply with all the laws that apply to legal entities in the Republic.

· Must comply with relevant statutory and regulatory requirements in terms of governance and compliance including a board, regulatory compliance, risk management policies, reviewers and all other governance requirements as per Companies Act. Institutional Strengthening support will be provided where gaps have been identified.

· Where applicable lending to be in line with the National Credit Act with relevant and up-to date registration.

· Key personnel – senior and executive management must have the relevant investment and development finance credentials and no less than 5 years' proven working experience as SME investment analysts and / or specialists.

· Loan methodology including policies and systems to be able to assess, disburse, monitor and collect on loans.

· Financial systems ability and appropriateness.

· A 5-10% own contribution as percentage of loan amount or capital commitment may be required.

· Must comply with BBBEE codes of good practice. Where the criterion is not met, sefa to be a catalyst towards meeting this transformation requirement based on the opportunity and willingness of the borrower to transform.

· Must be prepared to accept sefa interventions and business institutional support services.

3. Specialised Funds

· Must be registered and operate within South Africa and comply with all the laws that apply to legal entities in the Republic.

· Fund must be a trust or a company.

· Where applicable lending to be in line with the National Credit Act with relevant and up-to date registration.

· Loan methodology including policies and systems to be able to assess, disburse, monitor and collect on loans.

· Partnerships with role players within specific markets and/or sectors with developmental agenda similar to sefa, where they complement sefa's focus.

· Partnership to be based on knowledge, expertise, competencies, technical knowhow, access to market and resource capabilities of the partners to service the SMME market needs.

· Demonstrated financial and developmental returns.

· Preference will be given to forming partnerships with full value chain capability in which SMMEs can participate to develop sustainability.

· Must be prepared to accept sefa interventions and business institutional support services.

4. Credit Guarantee Schemes and Land Reform Facilities

· The Credit Guarantee Scheme and Land Reform Facility act as Fund Manager for the Department of Rural Development and Land Reform. These are facilitated through the banking sector in the main using their credit criteria.

Reply received: May 2013

PARLIAMENTARY QUESTION NO PQ 891

DATE OF PUBLICATION: 3 MAY 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

What are the terms of the investigation into the Competition Commission by the Public Protector? NW1110E

REPLY

The Office of the Public Protector falls outside the responsibility of the Ministry or Department and questions on any current investigation, including the terms of thereof, should be addressed to that Office.

Reply received: May 2013

PARLIAMENTARY QUESTION NO 828

DATE OF PUBLICATION: 26 APRIL 2013

Dr C P Mulder (FF Plus) to ask the Minister of Economic Development:

Whether, as at the latest specified date for which information is available, the Government has taken any steps to create a so-called sovereign wealth fund; if not, why not; if so, what are the relevant details? NW1045E

REPLY

The creation of a sovereign wealth fund is best timed with stable or rising commodity prices. In light of current market conditions, no immediate steps are contemplated.

South African development finance institutions are however continuing to invest elsewhere on the African continent on projects that would have been suitable for a sovereign wealth fund to consider.

Reply received: May 2013

PARLIAMENTARY QUESTION NO 821

DATE OF PUBLICATION: 26 APRIL 2013

Mr L S Ngonyama (Cope) to ask the Minister of Economic Development:

Whether his department intends to introduce anti-dumping import duties on Chinese products to save jobs especially in the manufacturing and textile industries; if not, why not; if so, what are the relevant details? NW1037E

REPLY

Dumping, which is a form of international price discrimination, refers to the practice of a firm selling the same good at a lower price in an export market than in its domestic market.

Dumping becomes an unfair business practice and actionable under domestic and international law when it causes or threatens to cause material injury to domestic manufacturers producing an identical or similar product to the dumped import.

Material injury is measured in terms of declines in the prices, sales volume, profits, market share, employment and other factors of domestic manufacturers. There is therefore a necessary link between dumping and injury that must be established.

ITAC is responsible for conducting anti dumping investigations based on applications by domestic processes.

Anti-dumping duties are already in place on imports of specific products originating in or imported from the People's Republic of China.

Anti-dumping investigations on imports of glass mirrors and coated paper are in progress. Note that provisional payments were imposed on glass mirrors (on 08 March 2013, valid until 06 September 2013) to protect the domestic industry while the investigation continues, following a preliminary determination that the products concerned were dumped into SACU and causing material injury to the SACU industry. On coated paper the Commission is yet to make a preliminary determination.

Anti-dumping duties remain in place for five years, after which a sunset review investigation is conducted, to determine whether there is a likelihood that the removal of the duty would lead to a continuation or recurrence of injurious dumping, if the domestic industry submits prima facie proof thereof.

Sunset review investigations of anti-dumping duties on the following products are underway: Garden picks, spades, shovels, rakes, forks; welded link chains.

Reply received: May 2013

PARLIAMENTARY QUESTION NO 810

DATE OF PUBLICATION: 26 APRIL 2013

Mr M H Hoosen (ID) to ask the Minister of Economic Development:

(1) Did the Industrial Development Corporation (IDC) (a) grant and (b) pay a second credit facility of R10 million to a certain company (Bonelena Construction); if so, (i) what were the loan conditions and (ii) from which IDC fund was the loan granted;

(2) were sufficient guarantees secured to ensure repayment of the loan;

(3) was the loan initially declined; if so, what were the reasons for eventually approving the loan;

(4) how does the IDC plan to recover the outstanding debt in view of the impending liquidation application in the Pietermaritzburg High Court? NW1023E

REPLY

I am advised by the Industrial Development Corporation (IDC) as follows:

(1) Following the original approval of funding to the company (Benelela Construction) in February 2011, IDC converted a portion of a guarantee (R10 million) that was granted along with the original approval into an additional credit facility.

No funds have been disbursed from this facility yet.

The loan is a revolving credit facility which is utilised by companies for working capital purposed. The loan is priced at prime + 1 and does not make use of any special IDC schemes. Before granting the loan, IDC assured itself that the company had sufficient orders to be able to service the debt.

(2) The loan is to be secured by mortgage bonds on properties.

(3) The conversion of the guarantee into a loan was not declined previously.

(4) The company was put under liquidation but given that it believed the order to have been granted in error, started a process to have the order set aside. At a meeting on 15 February 2013, creditors agreed on a compromise under Section 155 of the Companies Act and that the company be brought out of liquidation. A successful application to discharge the company from liquidation was heard by the Pietermaritzburg High Court on 25 February 2013. The existing loans will be subject to the normal credit control and post investment processes followed by IDC.

Reply received: May 2013

PARLIAMENTARY QUESTION NO 809

DATE OF PUBLICATION: 26 APRIL 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

What measures is his department putting in place to address the effects caused by the trade imbalance between China and South Africa? NW1022E

REPLY

The principal imbalance in trade between South Africa and China relates to the composition of imports and exports. South Africa exports mostly raw materials and imports light manufactures from China. Our challenge is to increase the value added of exports to China. We are pursuing this aim through

· An active industrial policy backed increasingly by stronger use of trade policy to support economic development and increased industrial financing through the IDC, and

· Engagement with our Chinese partners to support projects and programmes that will support industrialisation in South Africa.

In this context, the past few years have seen Chinese commitments to major investments in taxi and car assembly as well as fridge and television manufacturing, amongst others.

In addition, the dti identified ten competitive value-added products with the aim of increasing exports of manufactured products to China. The products were showcased in Beijing and Shanghai in 2011 and 2012, respectively. In addition, Trade and Investment South Africa signed two agreements with the Chinese International Brand Management Center (IMBC) and the Chinese Investment Promotion Agency. China has also agreed to establish permanent exhibitions of South Africa's manufactured products in China.

This year South Africa will continue to hold exhibitions in China to promote our value-added products.

These efforts have led to increased exports of manufactured products to China, particularly vehicles (cars, trucks and engines), jewelry , medicines and wine.

Reply received: April 2013

PARLIAMENTARY QUESTION NO 635

DATE OF PUBLICATION: 28 MARCH 2013

Mr A C Steyn (DA) to ask the Minister of Economic Development:

(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 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?

NW794E

REPLY


1(a) (i) and (ii) None

1 (a) (iii) One claim was erroneously made against the Department for a matter

that related to a provincial department.

1(b) None

2. Nil

Reply received: April 2013

QUESTION NO 615

DATE OF PUBLICATION: 27 MARCH 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

What is he doing to provide support to locally owned small-scale shops, especially in informal settlements? NW773E

REPLY

Support to locally owned small-scale shops are provided through the Small Enterprise Finance Agency (sefa).

The support includes the following:

- Forming partnerships with business chambers based in informal settlements that target small business owners (e.g. partnership in Dieploot called Noweto Business Chamber);

- Providing financial and mentorship support to small scale shops that are affected by the establishment of shopping malls in townships (e.g. Orange Farm where sefa will provide rental guarantees and funding of working capital to support businesses that want to establish themselves in the mall);

- sefa through its microfinance intermediaries (such as the Small Enterprise Foundation) target and support small scale businesses operating in informal settlements and rural areas;

- sefa conducts workshops and presentations to promote financial and non-financial support it is able to provide to small scale shops as part of its outreach campaigns (e.g. Umlazi in KZN and Caroline in Mpumalanga).

A few examples of support provided to locally owned small-scale shops and related activities are as follows:-

PROVINCE

BENEFICIARY

LOCATION

NATURE OF SUPPORT

Eastern Cape

Thandeka Mxakaza

Mdantsane Township

Small shop owner received a loan of R3 500

Western Cape

Fundiswa Nopkikie

Langa (Kwezi Hostel)

Provided a loan of R5 500 to sell fast food

Mpumalanga

Elizabeth Xulu

Phakamani

Received a loan of R4 800 for her dressmaking shop. Dresses are produced and sold from the same premises

Limpopo

Rachel Debeila

Rural Limpopo

Received a loan of R8 000 to establish a dressmaking shop. Dresses produced and sold from the same premises

Gauteng

Nancy Lekube

Mamelodi

Loan provided for a day-care centre which employs six full-time employees

Free State

Selloane Mohapi

Botshabelo

Loan of R1 500 as working capital for his tuck-shop

Kwa-Zulu Natal

Bongani

Engqungqumni

Loan of R 2 000 for additional working capital for his tuck-shop

sefa has 11 regional offices strategically located across South Africa, in order to enhance sefa's services to its target market including people living in rural areas, informal settlements and in townships, sefa is forming partnerships with various role players including rolling out a further 9 branches/satellite offices per annum (to a maximum of 48) which would be co-located within seda or IDC branch offices. In addition partnerships will be established with Local Economic Development offices to achieve a wider distribution and access.

Reply received: April 2013

QUESTION NO 611

DATE OF PUBLICATION: 27 MARCH 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

(a) How many companies have benefited from the Industrial Development Corporation (IDC) fund for companies in distress since its inception;

(b) What amount was spent on each company; and

(c) how many jobs have been (i) saved and (ii) created? NW769E

REPLY

(a) Since the inception of the fund, 109 companies have benefited from the fund.

(b) The size of the transaction ranged from R1.25 million to R1,1 billion, with an average transaction size of R39 million.

(c) At the time of approving the loans, it was expected that:

(i) 32 100 jobs would be saved at the time of the loan being approved; and

(ii) 7 700 new jobs would be created within 4 years of loan approval.

A survey of 22 companies that received distressed company funding suggests that 94% of the expected jobs were actually realised.

Reply received: March 2013

PARLIAMENTARY QUESTION NO 540

DATE OF PUBLICATION: 22 MARCH 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

(1) What research has been undertaken into the implications of the wage increase demands on (a) the economy and (b) employment in the agricultural sector;

(2) whether will he make this research available; if not, why not; if so, when? NW697E

REPLY

The Employment Condition Commission (ECC) addresses wage recommendations to the Minister of Labour. Interested parties are able to table research findings to the ECC.

EDD does not undertake research on minimum wage applications to, or investigations conducted by, the ECC.

Reply received: March 2013

PARLIAMENTARY QUESTION NO PQ 532

DATE OF PUBLICATION: 22 MARCH 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

(1) What research has been undertaken into the implications of the wage increase demands in the clothing sector on (a) the economy and (b) job creation;

(2) whether he will make the research available; if not, why not?

NW689E

REPLY

The bargaining council in the clothing industry regulates wages for the employer and trade union parties to the Council and may submit applications for their extension to the Minister of Labour, in terms of the Labour relations Act. EDD does not conduct research on the wage proposals discussed at each bargaining council.

Reply received: March 2013

PARLIAMENTARY QUESTION NO PQ 531

DATE OF PUBLICATION: 22 MARCH 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

(1) What research has been undertaken into the implications of the proposed ban on alcohol on (a) the economy and (b) job creation;

(2) whether he will make the research available; if not, why not?

NW688E

REPLY

EDD did not undertake research on the named area. The Social Impact would have been considered by the relevant Ministry.

Reply received: March 2013

QUESTION NO 428

DATE OF PUBLICATION: 13 MARCH 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

How many jobs were (a) created and (b) lost as a result of the merger between Kula and the South African Micro Apex Fund (SAMAF) to create the Small Enterprise Finance Agency (SEFA)? NW578E

REPLY

No jobs were lost as a result of the merger between Khula and the SA Microfinance Apex fund (SAMAF).

The staff establishment of the new entity, SEFA, provides for the creation of the 16 new jobs, which will bring the establishment to 190 persons.

Reply received: March 2013

QUESTION NO 427

DATE OF PUBLICATION: 15 March 2013

Mr KS Mubu (DA) to ask the Minister of Economic Development:

How is his department integrating the services provided by the various public finance agencies for small, medium and micro enterprises (SMMEs)?

Reply:

The areas of integration of services provided by the various public finance agencies for small, medium and micro enterprise are as follows:

1. The Economic Development Department established the small enterprise finance agency (sefa) on 1 April 2012, as part of the consolidation of agencies that provides access to finance for small businesses. The products of the former Khula Enterprise Finance, the former South African Micro Finance Apex Fund (samaf) and the IDC small business activities have been consolidated into sefa, with additional funding made available to sefa from the IDC. This has laid the basis for a well resourced sefa that is better able to target and coordinate support for small, medium and micro enterprises.

2. We work with the dti to integrate the funding services of SEFA with the technical support services of SEDA (Small Enterprise Development Agency). The Memorandum of Understanding (MoU) between SEDA and sefa is in the process of being updated; where SEDA will assist SMMEs prepare business plans, as well as provide post approval support to clients.

3. Provincial and national integration of SMME support is important. To this end sefa has entered into an agreement with MEGA (Mpumalanga Economic Growth Agency) where sefa will consider loan applications in instances where MEGA has fully utilised its budget or when an application to MEGA is in excess of their approval level.

4. EDD initiated a project to provide further practical training to unemployed graduates in Accountancy to enhance their chances of employment by small businesses. To this end the EDD appointed the SAICA (South African Institution of Chartered Accountants) which developed and presented a course over a number of months from the sefa office in Bramfontein. As a result sefa will be able to place some of the graduates to work in enterprises supported by sefa.

5. The communications strategy will focus on providing communities with an integrated product. EDD together with sefa have committed to 18 road shows for the new financial year to promote the offering of sefa as well as SEDA and other government institutions to SMMEs.

6. EDD commissioned a report on government's financial support for small business in South Africa. The report will set out the various offerings and support provided by government departments to SMME's, and is expected to be finalised by May 2013 and will provide a further basis for better integration.

7. To promote collaboration between state entities working directly with small businesses, inter-departmental provincial stakeholder forums will be established, where provincial DFI's will share lessons and resources to support SMMEs. The following agencies will be represented in the forum: sefa; SEDA; NEF; IDC; SARS; CIPC and SABS as well as representatives from provincial government and relevant local authorities.

Reply received: March 2013

PARLIAMENTARY QUESTION NO PQ 306

DATE OF PUBLICATION: 27 FEBRUARY 2013

Mr D A Kganare (Cope) to ask the Minister of Economic Development:

(1) How many businesses of South Africans were (a) looted or (b) destroyed during the protests or riots which took place earlier this year in Zamdela near Sasolburg;

(2) whether the Government offered any assistance to specified businesses; if not, why not; if so, (a) what type of assistance and (b) what are the details;

(3) is the Government prepared to help them resume their business; if not, why not; if so, what are the details? NW384E

REPLY

The Economic Development Department does not collect the data requested and has not been involved in discussions with the affected businesses.

Reply received: March 2013

QUESTION NO 230

DATE OF PUBLICATION: 22 FEBRUARY 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

(1) What progress has been made in the implementation of the Supplier Development Fund which was created following the merger between Massmart and Walmart;

(2) (a) how much of the fund has been spent, (b) on what was it spent and (c) how much was spent in each case? NW246E

REPLY

The Competition Appeal Court (CAC) granted its order regarding the supplier development fund on 9 October 2012. Massmart was granted four months, until 9 February 2013, to create a supplier development fund. Thereafter, Massmart must within 1 month, file the detailed structure of the fund with the Commission, which would be by 9 March 2013. Massmart must also constitute an advisory board within 4 months of this order, by 9 February 2013. The board must comprise of 5 members, 2 from the merged entity, 1 from the Ministers, 1 from SACCAWU and 1 from SASMMEF. The Board has been constituted and has held its first meetings. One of the duties of the board is to provide an annual report to the Competition Commission on the activities of the fund and its assessment thereof. This annual report is expected to be provided in October 2013. We expect that the report will inter alia detail the level of spending from the Supplier Development Fund.

Reply received: March 2013

PARLIAMENTARY QUESTION NO 229

DATE OF PUBLICATION: 22 FEBRUARY 2013

229. Mr K S Mubu (DA) to ask the Minister of Economic Development:

How does his department measure the impact of (a) threats of nationalisation, (b) Black Economic Empowerment (BEE) requirements, (c) labour unrest and (d) rising costs on foreign investor confidence? NW245E

REPLY

The Department and Ministry meets from time to time with foreign investors and monitors market sentiments, including through reviews of investor perception reports. A recent case in point is the results of a survey of foreign investor sentiment, attached hereto.

Reply received: March 2013

QUESTION NO 205

DATE OF PUBLICATION: 23 FEBRUARY 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

What impact has South Africa's membership of the BRICS group of countries had on the economy? NW219E

REPLY

The BRICS economies are some of the fastest-growing economies in the world. South Africa has grown its level of trade with the BRICS countries, has seen significant growth in tourism from other BRICS countries, is now a stronger destination for potential investment and is able to influence the development of greater BRICS partnerships with the rest of the African continent.

Formal membership was preceded by growing economic and political cooperation between South Africa and each of the other BRICS members.

While more detailed information on the positive impact on South Africa will be released by government in the run up to the BRICS Summit, the following point to the key trendlines.

On trade, the four BRIC countries now account for a larger share of South Africa's imports and exports. Measured in US Dollars, exports from SA to BRICS countries rose from $12.1 billion in 2010 to $15 billion in 2012. This helped to compensate for reduced demand from traditional markets which are experiencing slower or negative growth.

The focus now is on diversifying the basket of trade away from commodities to value added products. Already, vehicle exports to BRIC countries increased by more than 800% from 2010 to 2012 – from $27 million to $253 million – while the exports of beverages and spirits nearly doubled over this period.

On investment, there is strong inward and outward investment flows between South Africa and other BRICS countries.

For example, from January 2013, a Chinese OEM, Beijing Automobile Works, is manufacturing taxis locally, employing 470 people in its factory in Gauteng.

Additional details of the economic relations will be released in the next few weeks.

Reply received: March 2013

QUESTION NO 141

DATE OF PUBLICATION: 14 FEBRUARY 2013

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

(1) How many legal matters were dealt with by his department (a) in the (i) 2009-10, (ii) 2010-11, (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? NW147E

REPLY

(1)(a)(i) In the financial year 2009-10 there were no legal matters handled.

(ii) During 2010-11 there was one legal matter.

(iii) During 2011-2012, there were three legal matters.

(1)(b) During the period 1 April 2012 up until 1 March 2013, eight (8) legal matters were handled.

(2) The services of the State Attorney were used, except in two matters.

However, private attorneys were used to complement the state attorney. Private attorneys were used where specialised expertise was required.

(3) Details will be supplied in a supplementary reply.

Reply received: March 2013

QUESTION NO 141
DATE OF PUBLICATION: 14 FEBRUARY 2013
Dr P J Rabie (DA) to ask the Minister of Economic Development:


(1) How many legal matters were dealt with by his department (a) in the (i) 2009-10, (ii) 2010-11, (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?NW147E

REPLY

Further to the reply to PQ 141 sent earlier today, kindly find a supplementary reply:

(1) See table below

(2) See table below. For routine legal matters, the State Attorney's office is utilised. For matters requiring specialist knowledge (e.g. competition law or labour law), firms of private attorneys with specialisation in the required area are used, either with or without the assistance of the State Attorneys office.

(3) See table below

Instruction attorneys used

Payments made to attorneys1

Number of legal matters

State attorneys

Private attorneys

Both

State attorneys

Private attorneys

2009/10

None

-

-

-

Nil

Nil

2010/11

1

-

-

1

0

Nil (paid in following year)

2011/12

3

1

-

2

R 81 711

R 1 709 362

2012/13

8

5

1

1

R 170 030

R 508 719


1 Excludes junior and senior counsel payments
2 Refers only to portion of joint costs due by EDD. Additional payments made from the Departmental account, were refunded by the dti and DAFF
3 Year-to-date figures

Reply received: March 2013

PARLIAMENTARY QUESTION NO 108

DATE OF PUBLICATION: 12 FEBRUARY 2013

Mr G Hill Lewis (DA) to ask the Minister of Economic Development:

1. Whether (i) the Department and/or (ii) any entities reporting to it paid any bonuses to senior officials in December 2012; if so; (a) to whom and (b) how much was paid;

2. Whether these bonuses were performance based; and (b) how was each bonus justified;

3. Whether in each case (a) a performance agreement was signed with the official and (b) was regular performance assessments conducted;

4. From which budget was the performance bonuses paid?

REPLY

1. No

2 – 4. Not applicable

Reply received: March 2013

PARLIAMENTARY QUESTION NO 75

DATE OF PUBLICATION: 11 FEBRUARY 2013

Mr N D du Toit (DA) to ask the Minister of Economic Development:

(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? NW13-81E

Name referred to: The New Age

REPLY

(a) None

(b) Not applicable

Reply received: March 2013

QUESTION NO 34

DATE OF PUBLICATION: 14 FEBRUARY 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

(1) Whether he conducted a study of the estimated impact the 16% year-on-year electricity tariff increase proposed by Eskom have on (a) the economy and (b) job creation. If not why not in each case; if so, what are the relevant details in each case;

(2) what are his department's plans to mitigate the rising cost of electricity against our need to develop the economy? NW36E

REPLY

(1) We have not conducted a study of the electricity tariffs. While we recognize that any increase will add to production and logistics costs across the economy, it is also necessary to pay for new investments in the most cost-effective fashion.

From this standpoint, Nersa will have to weigh three kinds of costs in an effort to minimize the total burden on the economy, namely (i) possible electricity shortages if the infrastructure is not expanded and maintained; (ii) the direct cost to consumers of users fees; and (iii) the cost of other financing models, which may include higher taxes and/or interest costs on bonds.

Higher electricity costs have implications for the economy. However it is inevitable, as energy costs internationally are increasing. The South African situation is not unique, as we are developing to empower more industries to drive industrialization.

Still, the direct impact on employment is likely to be fairly small since most energy-intensive industries are also capital intensive. In the event, by far the biggest electricity users are metal and coal refineries, notably the aluminium smelters and Sasol, which together employ less than 50 000 people or around 0,4% of total employment.

A bigger concern is about the indirect impact on growth and jobs. The mining value chain has major multipliers across our economy as it generates income for employees, which in turn provide a market for a range of goods and services; provides substantial tax revenue; and contributes over half of South Africa's total exports. That said, in the long run cost-reflective tariffs in electricity can support both increased energy efficiency and diversification into less energy-intensive, more labour-absorbing industries.

(b) As the above analysis indicates, the challenge for the state is to assist industries to adapt to cost-reflect electricity tariffs. Government is exploring a range of mechanisms to achieve that aim, including

· Additional incentives to facilitate a shift toward more electricity-intensive technologies, which may otherwise be blocked by higher initial costs despite long-run savings;

· Intensified efforts to reduce other production and transport costs, including through improved logistics and other infrastructure;

· Work with Eskom to address cost drivers, especially by facilitating coal production and transport, in order to moderate tariff increases in the longer run;

· Stronger local procurement across the state in order to increase demand for local production; and

· Work with stakeholders to identify the optimal price path for electricity that takes into account both the need to cover long-term generation costs and minimise the burden on users as far as possible.

Reply received: March 2013

PARLIAMENTARY QUESTION NO 33

DATE OF PUBLICATION: 12 FEBRUARY 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

What are (a) the (i) short-, (ii) medium- and (iii) long-term implications of the recent credit rating downgrades on the economy and (b) his department's plans to increase business confidence in South Africa? NW35E

REPLY

(1) The Department monitors business confidence levels through reviews of published indices and engagement with investors.

I drew attention during the recent debate on the State of the Nation Address (SONA) to a survey by a private global consultancy of foreign investor confidence in the South African economy, conducted after the results were released. Details of their findings are attached to parliamentary question 229.

(2) The Department's work across a wide front is addressing constraints to increased investment. These include the work on infrastructure, promotion of skills development, improved industrial and small business funding and steps to address regulatory delays. Details of these are reported regularly by the Department and Government as a whole.

Reply received: March 2013

QUESTION NO 32

DATE OF PUBLICATION: 12 FEBRUARY 2013

Mr K S Mubu (DA) to ask the Minister of Economic Development:

Whether he conducted any studies of the long term implications the labour unrest in the Western Cape have on (a) the economy, (b) our export markets and (c)(i) employment creation and (ii) sustainability? If not, why not in each case; if so. What are the relevant details in each case. NW34E

REPLY

No. The strikes in the Western Cape occurred in the latter part of 2012.

The Department will keep a watching brief on jobs and export performance in the agriculture and agro-processing.

The strikes, together with the sectoral determination that sets new minimum wages, point to the need to improve the overall performance of agriculture through targeted measures, including through better skills, improved marketing, stronger support to get products to market (e.g. infrastructure support) and reducing other input costs. The opportunities to expand small-holder farming must also be pursued.

Reply received: March 2013

QUESTION NO 19

DATE OF PUBLICATION: 14 FEBRUARY 2013

Mr T D Harris (DA) to ask the Minister of Economic Development:

Whether the Industrial Development Corporation (IDC) financed the purchase of a share in a certain financial entity (name furnished); if not, how was this conclusion reached: if so, (a) how was the deal structured, (b) who authorized the deal, (c) what was the motivation for the transaction and (d) what is the current status of the transaction? NW21E

Name referred to: Capitec Bank Holdings Limited by Coral Lagoon Investments 194 (Pty) Ltd

REPLY

The IDC advises that in February 2007 it concluded a transaction to finalise a BEE entity, Coral Lagoon Investments 194 (Pty) Ltd, to a unique 10 million Capitec Bank Holdings Limited shares. The IDC has provided the following further details: Coral Lagoon, whose only investment is the Capitec Investment, is a wholly owned subsidiary of Ash Brook (Pty) Ltd, which is in turn owned by several BEE entities, including broad-based BEE entities and the Capitec Bank Holdings Limited Employees Trust.

IDC provided funding of R 285 million in the form of a Preference Share instrument, with an after tax return of 5% along with participation in value appreciation. This transaction was concluded in line with the Pro-BEE Expansionary Acquisition Scheme that IDC had in place at the time. Capitec provided vendor finance of R 15 million. The transaction was approved by the IDC Board.

In line with its role as a financier for BEE as envisaged in the dti's Strategy for Broad-Based Black Economic Empowerment, IDC provided finance to a broad based BEE consortium to acquire shares in Capitec. The equity injection into Capitec was going to be used for expansion of Capitec's business, thereby leading to job creation in addition to promoting BEE participation in the financial services sector. In addition to the development benefit described above, the transaction also demonstrated potential for good financial returns.

The IDC preference share facility was settled during March 2012 and IDC does not have any current financial exposure to Coral Lagoon. The total number of jobs that were created by the time IDC exited was 666. The return secured by the IDC was significantly higher than the average return for a project of this nature.