Questions & Replies: Economic Development

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2014-03-04

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Reply received: December 2014

QUESTION NO: 3013

DATE OF PUBLICATION: 21 NOVEMBER 2014

Ms T E Baker (DA) to ask the Minister of Economic Development:

Whether, with regard to the implementation of the Use of Official Language Policy Act, Act 12 of 2012 and since the reply of the Minister of Arts and Culture to question 990 on 6 June 2013, his department implemented the Act; if not, when will the Act be implemented; if so, which languages have been adopted as official languages of his department? NW3657E

REPLY

The Department currently uses English as a medium of communication. I recognise the importance of effective communication in a multi-lingual society. As a first step, the Department recently published a guide on indigenous chickens for small-scale farmers in isiZulu, entitled Umhlahlandlela wezinkukhu zasemakhaya wabilimi abasafufusa osebenziseka kalula. A thousand copies were printed.

I have further issued a directive to the Department to provide me by 1 February 2015 with proposed steps to implement the provisions of the Use of Official Language Policy act, 2012.

Reply received: December 2014

QUESTION NO: 2979

DATE OF PUBLICATION: 21 NOVEMBER 2014

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

Whether he intends to pay bonuses to staff in his department; if so, (a) what criteria has been used to award bonuses, (b) how many staff members will be receiving bonuses, (c) what total amount will be spent on staff bonuses and (d) was this amount budgeted for? NW3623E

REPLY

The Economic Development Department adheres to Chapter 4, clause 15.3 of the SMS Handbook and clause 9.5 of the DPSA Employee Performance Management and Development System Framework (for levels 12 and below) which stipulates that departments must not spend more than 1.5% of their remuneration budget for bonuses.

Policy guiding the consideration of bonuses is derived from the Department of Public Service and Administration's EPMDS Framework that was issued to all departments. The information requested will be available in Annual Reports once these are tabled in Parliament.

Reply received: November 2014

QUESTION NO: 2780

DATE OF PUBLICATION: 14 NOVEMBER 2014

Ms E R Wilson (DA) to ask the Minister of Economic Development:

(1) Whether he received an invitation to the wedding of Vega Gupta and Aakash Jahajgarhia; if so,

(2) whether he attended any of the wedding festivities between 30 April and 3 May 2013; if so,

(3) whether he stayed overnight at the venue; if so, (a) what accommodation did he use, (b) who paid for the said accommodation, (c) what mode of transport did he use to attend the wedding festivities and (d) who paid for the travel costs? NW3432E

REPLY:

(1) Yes

(2) No

Reply received: December 2014

QUESTION NO: 2739

DATE OF PUBLICATION: 14 NOVEMBER 2014

Mrs D Robinson (DA) to ask the Minister of Economic Development:

Did (a) his department and/or (b) any entities reporting to it owe money to any Gauteng municipalities at the end of the 2013-14 financial year; if so, in respect of each specified municipality (i) what is the name of the municipality, (ii) what was the total amount owed, (iii) what was the nature of the debt, (iv) for how long has the debt been outstanding and (v) what plans are in place to recover the debt owed to the municipality by (aa) his department and/or (bb) any entities reporting to it? NW3388E

REPLY:

Economic Development Department - No

ITAC - No

Competition Commission - No

Competition Tribunal - No

IDC - No

Sefa – Only current rates and taxes (30 days or less)

Reply received: November 2014

PARLIAMENTARY QUESTION NO 2602

DATE OF PUBLICATION: 14 NOVEMBER 2014

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

What amount has his department spent on promotional magazines in the (a) 2011-12, (b) 2012-13 and (c) 2013-14 financial years? NW3240E

REPLY

Nil

Reply received: November 2014

QUESTION NO: 2458

DATE OF PUBLICATION: 7 NOVEMBER 2014

Mr T J Brauteseth (DA) to ask the Minister of Economic Development:

How many work days has his department lost to (a) sick leave and (b) strike action in the (i) 2011-12, (ii) 2012-13 and (iii) 2013-14 financial years? NW3051E

REPLY:

(a) Details on the use of sick leave may be found in the departments' Annual Reports 2011-12 (table 9.1); 2012-13 (table 4.3.8.1); and 2013-14 (table 3.10.1). Copies of the Annual Reports have been tabled in parliament.

(b) None

Reply received: December 2014

QUESTION NO: 2425

DATE OF PUBLICATION: 7 NOVEMBER 2014

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

(a) What was the total remuneration of (i) board members, (ii) nonexecutive directors and (iii) executive directors of each entity reporting to him in the (aa) 2011-12, (bb) 2012-13 and (cc) 2013-14 financial years and (b) how many times did each board meet in the specified financial years? NW3017E

REPLY:

All details relating to the remuneration of board members, non-executive directors, executive directors of entities, and their attendance to meetings are reflected in the Annual Reports tabled in Parliament.

Reply received: November 2014

PARLIAMENTARY QUESTION NO 2333

DATE OF PUBLICATION: 07 NOVEMBER 2014

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

Whether, in view of the establishment of the new Department of Small Business Development, any of the entities reporting to him will be transferred to the new department; if not, why not; if so, what are the relevant details? NW2919E

REPLY

The establishment of the new Ministry of Small Business Development is a key step in ensuring that expanded attention and support is given to the development of small businesses in South Africa. Since its establishment, EDD has been working closely with the new Ministry of Small Business Development. Should the work focus of our departments result in the realignment of specific entities, an announcement will be made.

Reply received: December 2014

QUESTION NO: 2300

DATE OF PUBLICATION: 7 NOVEMBER 2014

Mr G R Davis (DA) to ask the Minister of Economic Development:

Did he, with reference to the sworn affidavit of a certain person (name and details furnished), instruct a certain person through another certain person (names and details furnished), to (a) air a story on e.tv of President J G Zuma opening a dam on or about 24 March 2014 and (b) air a clip of a Reserve Bank meeting during a televised election debate on e.tv on or around 29 April 2014? NW2808E

REPLY:

No

Reply received: November 2014

QUESTION NO: 2177

DATE OF PUBLICATION: 31 October 2014

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

(a) How many times has his department received a request from the SA Human Rights Commission (SAHRC), in line with section 184(3) of the Constitution of the Republic of South Africa, 1996, to provide a report on measures taken by his department towards the realisation of the rights in the Bill of Rights concerning housing, health care, food, water, social security, education and the environment in the (i) 2011-12, (ii) 2012-13 and (iii) 2013-14 financial years, (b) how many times did his department submit such a report to the SAHRC and (c) was each specified report (i) made readily available to the public or (ii) tabled in Parliament? NW2720E

REPLY:

(a) I am advised that no requests were received by the department from the SA Human Rights Commission.

(b) Not applicable

(c) Not applicable

Reply received: November 2014

QUESTION NO: 2093

DATE OF PUBLICATION: 24 October 2014

Mr H C Krüger (DA) to ask the Minister of Economic Development:

(a) What is the name of each programme in his department that focuses on (i) small businesses and (ii) cooperatives and (b) what are the details of each specified programme? NW2561E

REPLY:

The budget programmes of the Economic Development Department are Administration; Economic Policy Development; Economic Planning; and Social Dialogue. The programmes cover the entire economy, from the issues affecting large and smaller businesses as well as workers and the unemployed. Nonetheless, we as government expect that every economic department in government will ensure that its initiatives include support for small business and cooperatives as part of promoting inclusive growth. The establishment of the Small Business Ministry is strengthening this effort to mainstream small producers and co-ops across government policy.

Reply received: November 2014

QUESTION NO: 2068

DATE OF PUBLICATION: 24 October 2014

Mr T R Majola (DA) to ask the Minister of Economic Development:

(a) How many copies of his department's annual report for the (i) 2012-13 and (ii) 2013-14 financial years were produced and (b)(i) at what cost were these reports produced and (ii) to whom were these reports circulated? NW2535E

REPLY:

(a) (i) 250 copies were produced for the 2012-13 financial year

(ii) 1 000 copies were produced for the 2013-14 financial year

(b) (i) An amount of R91 428 was spent on producing the 2012-13 Annual Reports and R181 524 for the 2013-14 Annual Reports.

(ii) The Annual Reports were circulated to Parliament; the National Treasury; Auditor-General; Government departments; Public Libraries and National Archives. The number of printed Annual Reports was increased from 250 to 1000 copies due to demand of the EDD annual report by the public during stakeholder engagements.

Reply received: November 2014

QUESTION NO: 2012

DATE OF PUBLICATION: 24 October 2014

Mr S A Tleane (ANC) to ask the Minister of Economic Development:

Whether, in light of the Government's quest to provide a better life for all the people through loans, training in land use, grants and professional advice on the establishment of co-operatives and companies to deserving entrepreneurs, while on the other hand also providing indigent families with social grants and free basic services to cope regardless of their political association, he has found that this information is known to the broader society with regard to what the Government offers; if not, why not; if so, what are the relevant details? NW1656E

REPLY:

The challenges of poverty, inequality and unemployment require purposeful steps by government to address these, to help create decent work opportunities, provide basic income support to vulnerable South Africans and support entrepreneurship that help citizens to contribute to building the economy and creating wealth. These steps by government include provision of lands, extension services for farming communities, various forms of industrial funding, support for the development of co-operatives and emerging enterprise, and social grants as well as free basic services.

In this context, we note the recent World Bank study on fiscal policy and redistribution in South Africa (released on 4 November 2014, and available from www-wds.worldbank.org) which shows that South Africa has a high rate of redistribution through the fiscus compared to similar middle-income economies. It estimates that these transfers reduce the Gini coefficient from .77 to .59. The higher a Gini coefficient, the worse the inequality.

The programmes mentioned are central to our efforts to improve income distribution, not only by enhancing social grants to those unable to work and services to low-income households, but also by strengthening our people's productivity and economic opportunities. At national level, some of these programmes include the following.

· The loans provided by the Small Enterprise Finance Agency (sefa), a subsidiary of the IDC, which doubled its approvals to over R1 billion in the past year. In 2013/4, sefa supported over 46 000 enterprises. It disbursed R362 million to women-owned businesses, and R157 million to enterprises owned by young people.

· Support for smallholders through the national and provincial departments of agriculture, which is reported to have reached around 150 000 farmers in 2013/4. In 2014/5, government allocated over R2 billion to these programmes, including R1,9 billion to the Comprehensive Agricultural Support Programme, R460 million for Ilima/Letsema and R68 million for LandCare. Most of these resources are provided through provincial departments. For instance, in the Free State, Mohoma Mabung supported 6500 beneficiaries while Mpumalanga's Masibuyele Emasimini reached 39 600. In addition, the Competition Commission has made support for small-scale agro processing and agriculture a condition on several major mergers and takeovers, leading to the establishment of funds for this purpose worth around R500 million in the past five years.

· The work of the Small Enterprise Development Agency (seda), which provides a variety of supports for smaller producers. Seda plans to establish 24 new incubators in addition to the 42 existing incubators by 2016/7. It will provide technological support to over 3000 small businesses.

· Support provided to co-ops through the Department of Trade and Industry. The dti currently reaches over 300 co-ops. It plans to expand its support to over 500 in the course of the next two years. Its support includes a direct cash grant through the Cooperative Incentive Scheme as well as educational and incubator programmes. A number of other national and provincial departments have also dedicated programmes to support co-ops in agriculture, financial services and home-building, amongst others.

· The National Infrastructure Plan supports employment creation and growth in both existing and emerging enterprise by improving the provision of key state services like transport, electricity and water supply. A pillar of the Plan is that it seeks to overcome the backlogs in infrastructure left by apartheid in poor and rural communities, opening a host of economic opportunities for our people in the process. In this context, SIP 1, which aims to unlock the Northern mineral belt, has already stimulated increased employment and economic activity in Limpopo and Mpumalanga; SIP 3 is supporting economic development along the southern eastern coast in KwaZulu Natal and the Eastern Cape, and will improve logistics and productive investment in some of the historically most deprived and oppressed parts of our country, while SIP 4 is addressing similar issues in the North West; SIP 6 is targeting improvements in municipal infrastructure in the poorest districts of our country, mostly in former so-called "homeland" areas, while SIP 7 aims to overcome the apartheid geography that still shapes our more advanced urban areas through BRT systems and improved spatial planning; SIP 8, which seeks to build the Green Economy, has rolled out hundreds of thousands of solar water heaters to poor households, many of which have never before had hot running water; and SIP 11 will bring productive infrastructure such as irrigation, silos and fences to poor rural areas. In addition, there are SIPs to upgrade basic and further education and improve health care. Finally, further SIPs are intended to ensure adequate electricity, logistics, water and waste removal for formal enterprises that can in turn generate more economic opportunities for all our people.

Development finance agencies have on-going efforts in place to inform the public about their offerings. For instance, the IDC is currently running a series of advertisements on radio stations across the country. Last year, sefa undertook over 20 roadshows in order to acquaint small businesspeople not only with its own programmes, but also those of seda. With support from the EDD, it developed a small business toolkit that describes the various ways in which government seeks to assist smaller producers and co-ops. I have asked my Department to table the toolkit in parliament so that Honourable Members can share it with their constituents.

Reply received: October 2014

PARLIAMENTARY QUESTION NO 1840

DATE OF PUBLICATION: 26 September 2014

Mr R W T Chance (DA) to ask the Minister of Economic Development:

(a) What will the impact of the proposed national minimum wage be on economic development, (b) will there be concessions for small businesses and (c) what will the concessions be? NW2214E

REPLY:

The matters raised by the Honourable Member in relation to the proposed minimum wage will be addressed once the modalities and level of the proposed national minimum wage is finalized.

Reply received: October 2014

QUESTION NO.1654 {NW2015E}

INTERNAL QUESTION PAPER: NO. 17 of 2014

DATE OF PUBLICATION: 19 September 2014

Ms J Steenkamp (DA) to ask the Minister of Environmental Affairs:

(1) (a) How many landfill sites does South Africa currently have and (b) of these, how many are (i) legal, and (ii) illegal;

(2) (a) at what stage is her Department in the process of awarding licences to each illegal site; and (b) what is being done to close down illegal landfill sites which are not awarded licences; and

(3) are the legal landfill sites being monitored; if not, why not; if so, how?

1654. THE MINISTER OF ENVIRONMENTAL AFFAIRS REPLIES:

(1) (a) There are 826 landfill sites in South Africa.

(b) (i) 489 licensed (legal) landfill sites;

(ii) 247 unlicensed (illegal) landfill sites and 90 are privately owned landfill sites and some have been decommissioned.

(2) (a) The Department Environmental Affairs (DEA) commissioned a study in 2007 which identified 341 unlicensed waste disposal sites in the whole country. This Department and Municipal Infrastructure Support Agency (MISA) are the funders of the licensing project of all 341unlicensed waste disposal sites. The Competent Authorities (CA) responsible for the issuance of licenses for all unlicensed waste disposal sites (general waste) are the Provincial Departments responsible for Environmental Management. The prerequisite for environmental authorisations as well as the waste licenses are issued by these provincial authorities. The progress on the licensing project is as follows: 139 out of 341 unlicensed waste disposal sites were licenced between 2012 and 2014, and all remaining 202 unlicensed waste disposal sites are being licensed in the 2014/2015 financial year. DEA has further identified an additional 69 unlicensed waste disposal sites which are not part of the 341 backlog study commissioned 2007, and these 69 sites are in process of being licensed in this current financial year.

(b) The Department will be undertaking a joint national compliance and enforcement operation that will target unlawful general landfill sites during quarter 3 of the 2014/2015 financial year. All of the unlawful sites will be prioritised for enforcement action based on the level of non-compliances that are detected during the compliance monitoring exercise. The priority status of each of these sites will depend on the severity of the non-compliance as well as the impact that is being caused thereby to the environment. The action taken may range from immediately closing down operations to implementing measures to ensure environmental protection.

(3) Yes, permitted or licenced landfill sites (legal) are being monitored. There are two monitoring regimes used, the first being a self-monitoring requirement wherein the Permit Holder is required to contract an independent third party auditor to carry out the monitoring and forward the outcomes to this Department. The audit findings are also presented to Community Monitoring Committees meetings which are attended by this Department, Provincial Department of Environmental Affairs and Department of Water and Sanitation. All these requirements/conditions are specified in waste permits/ licences issued by DEA and Provincial Departments of Environmental Affairs to the Waste Disposal facilities.

The second monitoring regime is a compliance monitoring carried out by the competent authorities, such as DEA, DWS and Provincial Departments of Environmental Affairs, that issues the Waste Management Licences. Landfill sites are prioritized for inspections at the beginning of each financial year and compliance inspection are then conducted on the prioritized sites.

Reply received: October 2014

PARLIAMENTARY QUESTION NO 1632

DATE OF PUBLICATION: 19 SEPTEMBER 2014

Mr P G Atkinson (DA) to ask the Minister of Economic Development:

(a) Which posts in his department are vacant in the (i) highly skilled, (ii) highly skilled supervision and (iii) senior and top management levels and (b) in each case, what has been the duration of the vacancy? NW1993E

REPLY

I bring to the attention of the Honourable Member the following reply provided to Parliamentary Question 36 of 2014 published in June 2014:

"During 2013, I commenced a process of review of the organizational structure of the Department, in view inter alia of

a) the new responsibilities that was given to EDD to provide extensive technical support to the PICC

b) the experience of the Department in providing oversight to DFIs as well as the trade administration and competition authorities

c) the completion of the initial work on and adoption thereof by Cabinet of the New Growth Path during 2010, the adoption by Cabinet of the National Development Plan and the National Infrastructure Plan and the further annual elaboration of the Industrial Policy Action Plan, all of which impact on the work of the Department

d) the need to ensure that the new Medium Term Strategic Framework of the fifth Administration is properly implemented through a new Annual Performance Plan, Strategic Plan, Budget Structure and organizational structure.

The organizational review would seek to consolidate the number of Chief Directorates, reduce the number of managers and improve the number of specialists with high-level skills and ensure that the necessary capacity exists to take forward the work of the Department.

I took into account that the Department was able, successfully as reported in the 2012/13 Annual Report, to secure short-term staffing resources on a dedicated basis from public agencies for some of its work at no cost to the Department.

I therefore requested the Department to only fill those posts which were essential for the completion of the work of the 4th Administration and for which no alternative arrangements were in place.

Accordingly, not every post was advertised. A recruitment process is in place in respect of four posts at Chief Director level. A further ten senior posts in the Department have been identified to be filled subject to the outcome of the organizational review.

I note that the new Annual Performance Plan of the Department was tabled in parliament on 27 June 2014 and is the first step in the organizational review.

In order to ensure that competent persons are recruited, the Department is securing the services of an executive search company to widen the pool of potential candidates."

I reported on the review of the organizational structure of the Department during the presentation of the EDD Annual Report on 14 October 2014 to the Portfolio Committee of Economic Development. Additional details on the vacancies are contained in the Annual Report of the Department.

Reply received: October 2014

PARLIAMENTARY QUESTION NO 1596

DATE OF PUBLICATION: 19 September 2014

Mr W M Madisha (Cope) to ask the Minister of Economic Development

Whether he has taken note of the World Economic Forum's latest rankings which was released on Wednesday 3 September 2014 and which showed that, according to its Global Competitiveness Report, South Africa had slipped three places to 56th among 144 countries; if not, what is the position in this regard; if so, what remedial measures is he planning to take to improve (a) the quality of productivity and (b) skill acquisition? NW1713E

REPLY:

The Global Competitiveness Report relies to a significant extent on a survey of the views of business people to construct its ratings of countries. In the case of the 2014 Report, its sample for South Africa combined 45 survey responses from 2012 with 47 from 2013.

In the Survey, South Africa ranks at number 56, while China is higher at 28 and Brazil and India are lower, at 57 and 71 respectively.

In terms of the specific issues raised in the question, the main strategies to improve productivity are investment in infrastructure, education and skills; targeted support for new activities notably under the Industrial Policy Action Plan; and maintaining a counter-cyclical macro-economic stance.

My Department is responsible in particular for supporting the Presidential Infrastructure Coordinating Commission in ensuring that public investment provides the greatest possible stimulus to productive investment overall, as required by the Medium Term Strategic Framework and the Infrastructure Development Act.

Through facilitation of the Basic Education and Skills Accords, we have sought to ensure that economic stakeholders cooperate and engage more effectively on building a skills base to improve economic performance, support FET colleges and develop opportunities for young people. In addition, the National infrastructure Plan provides for a massive increase in the capacity of our education system, including new schools being built, two new universities and 12 new FET campuses under construction or planned as well as substantial improvements in existing facilities.

Reply received: October 2014

PARLIAMENTARY QUESTION NO 1509

DATE OF PUBLICATION: 12 September 2014

Mr T R Majola (DA) to ask the Minister of Economic Development:

Whether (a) his department and/or (b) any entities reporting to him sponsored political party (i) advertisements, (ii) events and/or (iii) paraphernalia in the (aa) 2011-12, (bb) 2012-13 and (cc) 2013-14 financial years; if so, (aaa) for which political party and (bbb) what was the monetary value of the sponsorship in each case? NW1878E

REPLY:

The Economic Development Department and the entities reporting to me in my capacity as Minister, did not sponsor any political party for (i) advertisement, (ii) events and (ii) paraphernalia in the (aa) 2011/12 and (bb) 2012/13 financial years.

Reply received: October 2014

PARLIAMENTARY QUESTION NO 1479

DATE OF PUBLICATION: 12 September 2014

Ms T Gqada (DA) to ask the Minister of Economic Development:

What is the quantum of funds spent by his department on all advertising for each financial year between 1 April 2010 up to the latest specified date for which information is available? NW1845E

REPLY:

The amount spent by the department on all advertising is as follows:

2010/11

R 277 680.31

2011/12

R 239, 153.60

2012/13

R 543, 136.00

2013/14

R 20 001 540.62

The figures for 2013/14 include the communication plan on Infrastructure on behalf of the PICC.

Reply received: October 2014

PARLIAMENTARY QUESTION NO 1446

DATE OF PUBLICATION: 12 September 2014

Mr D C Ross (DA) to ask the Minister of Economic Development:

(a) Which travel agents has his department used during the period 1 April 2012 up to the latest specified date for which information is available and (b) what is the quantum of funds spent with each of the specified travel agents in the specified period? NW1812E

REPLY:

Travel agents used

Amount spent (in Rand):

2012-2013

Amount spent (in Rand):

2013-2014

GEMINI MOON TRADING

6,395 846.70

115,405.88

TRAVEL WITH FLAIR

1,265 737.69

5,363 345.17

AMERICAN EXPRESS

4,677 846.70

5,462 356.74

PHAKISAWORLD

681,953.02

898,069.82

Reply received: October 2014

PARLIAMENTARY QUESTION NO 1354

DATE OF PUBLICATION: 12 September 2014

Mr I A Pikinini (ANC) to ask the Minister of Economic Development:

Has the Independent Development Corporation (IDC) supported the development of green energy projects; if not, (a) why not and (b) has the mandate of the IDC not been changed to facilitate green industry development; if so, (i) how many projects were developed and (ii) what has been the impact of these projects? NW1702E

REPLY:

I have mandated the Industrial Development Corporation to drive and support green industrial development, because of its positive impact on climate change and the new job opportunities that can be created. The IDC has reported that it approved more than fifty green projects, with funding of more than R14 billion and more than 6700 jobs created or saved. The following projects have been supported by the IDC:

1. Renewable IPP Programme

The IDC has to date approved funding for the following 22 Renewable projects with a total funding of ca R13 billion, of which an amount of ca R4.2 billion has been disbursed to date.

· 13 projects in the Northern Cape with total IDC funding of R11,212,480,160

· 5 Projects in the Eastern Cape with total funding of R1,646,498,113

· 3 projects in the Western Cape with total IDC funding of R436,284,997

· 1 project in North West with total IDC funding of R101,375,473

2. Energy Efficiency

The IDC has to date approved funding for the following 18 Energy Efficiency Projects with a total funding of ca R201 million:

· 8 projects in Gauteng with total funding of R82,792,692

· 5 Projects in the Western Cape with total funding of R14,447,000

· 2 projects in KwaZulu Natal with total funding of R21,876,915

· 2 projects in North West/Free State with total funding of R31,900,000

· 1 project Nationally with total funding of R50,000,000

The above projects utilise either one of the following technologies:

· Roof Top PV (i.e. Micro / Embedded Generation)

· Energy Efficient Lighting (Eskom Rebate Programme)

· Solar Water Heater Roll Outs (Both High Pressure and Low Pressure markets)

· Energy Efficient Lights

· Energy Efficient Refrigeration

· Variable Speed Drives

· Load Controllers and Heat Pumps

· Energy Recovery Turbine (Micro Hydro Generation)

3. Fuel Based Renewable Energy

In South Africa, the IDC has to date approved funding for the following 14 Fuel Based Renewal Energy projects with a total funding of ca R699, 5 million:

· 5 projects in the KwaZulu Natal with total IDC funding of ca R349 million

· 5 projects in Gauteng with total IDC funding of ca R140 million

· 2 projects in Northern Cape with total IDC funding of ca R194 million

· 1 project in Western cape with total IDC funding of ca R10 million

· 1 project in North West with total IDC funding of ca R6 million

Jobs impact of green projects funded by the IDC

IDC funding of the above mentioned projects is expected to create or save a total of 6 709 new jobs opportunities. Because a number of projects are located in poorer provinces and rural areas, they will impact positively on economic development outside the main metros. The IDC has supported community empowerment which will benefit a wider layer of South Africans.

Reply received: September 2014

PARLIAMENTARY QUESTION NO 1183

DATE OF PUBLICATION: 29 August 2014

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

(1) Whether (a) he and (b) the Deputy Minister has each employed a ministerial special advisor; if so,

(2) (a) what is the name of the special advisor, (b) when was the advisor appointed, (c) what are the duties of the advisor, (d) at what post level was the appointment made, (e) what is the salary level of the advisor, (f) what is the duration of the employment contract entered into with the advisor and (g) why was it necessary to appoint the advisor? NW1421E

REPLY

(1) (a) Yes.

(b) No.

(2) (a) Dr Neva Makgetla.

(b) May 2014.

(c) In terms of the Public Service Act (section 12A (1) provides that Special Advisers duties are to:

· advise the Executive Authority on the exercise or performance of the Executive Authority's powers and duties;

· advise the Executive Authority on the development of policy that will promote the relevant departments objectives; and

· perform such other tasks as may be appropriate in respect of the exercise or performance of the Executive Authority's powers and duties.

(d) Post level 15.

(e) Compensation level within the range of post level 15.

(f) The duration is usually in line with the term of office of the Executive Authority.

(g) The appointment is in compliance with the Public Service Act (section 12A (1) which provides for the appointment of Special Advisers to support the Executive Authority as set out in (c) above.

Reply received: September 2014

QUESTION NO 1063

DATE OF PUBLICATION: 22 August 2014

1063. Mr G G Hill-Lewis (DA) to ask the Minister of Economic Development:

(1) How many loans were disbursed by the Small Enterprise Finance Agency (SEFA) via African Bank Investments Limited (ABIL) in the (a) 2012-13 and (b) 2013-14 financial years;

(2) how many of these loans have been classified as (a) good loans and (b) bad loans by the Reserve Bank when ABIL was put under curatorship;

(3) what was SEFA's exposure and potential loss from bad loans in the (a) 2012-13 and (b) 2013-14 financial years? NW1236E

REPLY:

(1) Sefa Direct lending does not have any relationship with African Bank Limited.

(2) Not applicable

(3) Not applicable

Reply received: September 2014

PARLIAMENTARY QUESTION NO 1003

DATE OF PUBLICATION: 22 August 2014

1003. Mr R W T Chance (DA) to ask the Minister of Economic Development:

(1) In the (a) 2012-13 and (b) 2013-14 financial years, what is the (i) number and (ii) value of loans disbursed by the Small Enterprise Finance Agency (SEFA) to small businesses through (aa) direct lending, (bb) financial intermediaries and (cc) micro lending intermediaries;

(2) (a) how many loan applications did the SEFA offices in Gauteng receive in the (i) 2012-13 and (ii) 2013-14 financial years, (b) how many of these applications were approved, (c) what is the rand value of the approved applications and (d) how many of the approved applicants financed in the 2012-13 financial year are still in business? NW1156E

REPLY:

1)

2012/13

2013/14

Loan Programme

Number of Loans Disbursed

Value of the Disbursement

Number of Loans Disbursed

Value of the Disbursement

Direct Lending

119

R 40,665,037

209

R 225,481,828

Financial Intermediaries

1,132

R 285,371,549

587

R 354,005,058

Micro Finance Institutions

27,111

R 173,182,381

45,590

R 228,817,768

Total

28,362

R 499,218,966

46,386

R 808,304,654

2)

Financial Year 2012-13

Applications Received

Applications Approved

Approvals (Rand Value)

No. of businesses still operational

196

90

R49 323 640

85

Financial Year 2013-14

Applications Received

Applications Approved

Approvals (Rand Value)

No. of businesses still operational

259

102

R108 705 763

86

Reply received: September 2014

PARLIAMENTARY QUESTION NO 983

DATE OF PUBLICATION: 22 August 2014

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

(1) Is the Small Enterprise Finance Agency (SEFA) active in the Thembisile Hani Local Municipality; if so, what are the addresses of the SEFA offices serving the area;

(2) in the (a) 2012-13 and (b) 2013-14 financial years (i) how many applications did the specified offices receive, (ii) how many of these applications were approved, (iii) what is the rand value of the approved applications and (iv) how many of the approved applicants are still in business? NW1136E

REPLY:

1) SEFA does not have an office in Thembisile Hani Local Municiplaity. The area is serviced by the sefa Mpumalanga Provincial office in Nelspruit. To ensure that sefa covers an entire province without investing funds in establishing its own offices, Memoranda of Understanding (MOU's) have been signed with both seda and MEGA allowing sefa to use the seda and MEGA branch offices as referral offices.

The addresses of the sefa Mpumalanga office and the seda Nkangala office are as follows:

Sefa Mpumalanga Provincial Office

Unit U5, Nelcity Centre
Cnr Paul Kruger & Samora Machel Drive
Nelspruit
1200

The seda Nkangala Branch Office

23 Cnr Botha Avenue & Rhodes Street

Hi-Tech House

Witbank

1035

2) Below is a table on the applications received for the 2012-13 and 2013-14 Financial years by the sefa Mpumalanga Provincial Office

(a)Financial Year 2012-13

Applications Received

Applications Approved

Approvals

No. of businesses still operational

46

5

R13 472 265

4

(b)Financial Year 2013-14

Applications Received

Applications Approved

Approvals

No. of businesses still operational

98

12

R16 706 926

12

Reply received: September 2014

PARLIAMENTARY QUESTION NO 982

DATE OF PUBLICATION: 22 August 2014

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

(1) Is the Small Enterprise Finance Agency (SEFA) active in the Dr J S Moroka Local Municipality; if so, what are the addresses of the SEFA offices serving the area;

(2) in the (a) 2012-13 and (b) 2013-14 financial years (i) how many applications did the specified offices receive, (ii) how many of these applications were approved, (iii) what is the rand value of the approved applications and (iv) how many of the approved applicants are still in business? NW1135E

REPLY:

1) SEFA does not have an office in Dr. J.S Moroka Local Municipality. The area is serviced by the sefa Mpumalanga Provincial office in Nelspruit. To ensure that sefa covers an entire province without investing funds in establishing its own offices, Memoranda of Understanding (MOU's) have been signed with both seda and MEGA allowing sefa to use the seda and MEGA branch offices as referral offices.

The addresses of the sefa Provincial office and the seda Nkangala Branch office are as follows:

Sefa Mpumalanga Provincial Office

Unit U5, Nelcity Centre,
Cnr Paul Kruger & Samora Machel Drive,
Nelspruit,
1200

The seda Nkangala Branch Office

23 Cnr Botha Avenue & Rhodes Street

Hi-Tech House,

Witbank

1035

2) Below is a table on the applications received for the 2012-13 and 2013-14 Financial years by the sefa Mpumalanga Provincial Office

(a)Financial Year 2012-13

Applications Received

Applications Approved

Approvals

No. of businesses still operational

46

5

R13 472 265

4

(b)Financial Year 2013-14

Applications Received

Applications Approved

Approvals

No. of businesses still operational

98

12

R16 706 926

12

Reply received: August 2014

PARLIAMENTARY QUESTION NO 806

DATE OF PUBLICATION: 25 JULY 2014

Mr P G Atkinson (DA) to ask the Minister of Economic Development:

(1) Whether (a) he, (b) the Deputy Minister, (c) the Director-General or (d) any of his staff (i) attended, (ii) accepted an invitation and/or (iii) received tickets to the 2014 Soccer World Cup in their official capacity; if so, what are the relevant details including the (aa)(aaa) names and (bbb) positions of those who attended and (bb) breakdown of the amounts spent by his department on (aaa) travel, (bbb) accommodation, (ccc) entertainment and (ddd) any further specified expenses;

(2) (a) what is the breakdown of the amount spent by his department on any persons accompanying (i) him, (ii) the Deputy Minister, (iii) the Director-General or (iv) any of his staff to attend the 2014 Soccer World Cup including (aa) travel, (bb) accommodation, (cc) entertainment and (dd) any further costs and (b) in each case, what is the (i) relationship and (ii) reason for accompanying the relevant person? NW893E

REPLY

(1) (a)(b)(c)(d) No

(2) None

Reply received: August 2014

PARLIAMENTARY QUESTION NO 757

DATE OF PUBLICATION: 25 JULY 2014

Mr P G Atkinson (DA) to ask the Minister of Economic Development:

(a) How many (i) judgments and (ii) court orders were made against his department in the (aa) 2010-11, (bb) 2011-12, (cc) 2012-13 and (dd) 2013-14 financial years and (b) in each case, (i) how many of these (aa) were implemented and (bb) await implementation by his department and (ii) what was the nature of the (aa) judgment and/or (bb) court order? NW844E

REPLY

No judgments or court orders have been made against the Economic Development Department.

Reply received: August 2014

PARLIAMENTARY QUESTION NO 617

DATE OF PUBLICATION: 18 JULY 2014

Mr R A Lees (DA) to ask the Minister of Economic Development:

(1) How many (a) international and (b) domestic hotel bookings were made by (i) him, (ii) his predecessors and (iii) departmental officials attending (aa) workshops, (bb) seminars, (cc) oversight visits or (dd) any other relevant meetings of the relevant portfolio committee from 1 April 2013 up to the latest specified date for which information is available;

(2) in respect of each specified booking, what was the (a) date, (b) name of the hotel, (c) number of delegates, (d) cost of the hotel booking for each delegate and (e) the nature of the relevant portfolio business dealt with? NW700E

REPLY

1. The Department made ten international hotel bookings for the period 1 April 2013 to 31 March 2014. Of these, two were for the Minister to attend meetings of the World Economic Forum, three were for a Deputy Minister to attend various official engagements and the remainder was for officials to either attend to international commitments of the state or provide support to the Executive Authorities.

2. The Department's domestic hotel bookings for the period 1 April 2013 to 31 March 2014 for the Minister, Deputy Minister and officials, were for officially-sanctioned travel, which includes attendance in parliament for officials, site visits, or meetings with business or labour.

3. In the period 1 April 2013 to 31 March 2014, the total spending on hotel accommodation was approximately R1 366 257.

Reply received: July 2014

PARLIAMENTARY QUESTION NO 559

DATE OF PUBLICATION: 18 JULY 2014

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

(1) Whether the objective of the memorandum of understanding (MOU) between the Industrial Development Corporation (IDC) and the National Youth Development Agency (NYDA) is to provide funding for operations and projects; if so, (a) what is the quantum of the division and (b) what are the conditions of the specified funding;

(2) whether any of the specified funding is given as a repayable loan; if not, (a) what is the basis and (b) what are the criteria for anything else other than repayable loans;

(3) (a) to what extent are there prescribed rules for lending practices to the NYDA and (b) has the NYDA defaulted on any of their financial commitments to the IDC; if so, what are the details and the magnitude of these defaults;

(4) as a result of the specified MOU, (a) how many sustainable businesses were established, (b) how many new and sustainable jobs have been created and (c) what is the economic impact of the specified MOU on the country's Gross Domestic Product? NW641E

REPLY

(1) The Industrial Development Corporation signed a three-way partnership with the National Youth Development Agency (NYDA) and Small Enterprise Finance Agency (sefa) to provide development funding for youth-owned businesses. The MOU signed was not to provide funding to NYDA operations or its projects. Each institution has its own responsibilities within the partnership. The NYDA will identify and provide business support (mentorship) and the IDC or sefa will provide development funding to these youth entrepreneurs.

(a)The IDC has earmarked R1 billion Grow-E Youth Scheme whilst sefa has set aside R1, 7 billion over three years to support businesses controlled by young entrepreneurs.

(b) The IDC's conditions of the loans include the following: the business must be controlled by youth (35 year anniversary and below at date of application) and the entrepreneur must create a job at a cost of less than R500 000. However normal conditions will apply if the application that does not meet the requirements of the scheme.

(2) In relation to funding NYDA, this question is not applicable and thus

(a) and (b) will equally not be applicable, as there is no funding to NYDA as stated above in (1). Funding to young entrepreneurs is indeed repayable. The IDC or sefa will, in some instances, take equity (i.e. shareholding) in the youth owned companies and will have to sell the shares to get the money back together with the returns.

(3) This question is not applicable in its entirety for reasons explained in 1.

(4) (a) The IDC as a result of the MOU established 11 businesses and sefa (through direct lending activities and its intermediaries) has established 10291 businesses. (b) These businesses are expected to create 447 and 10291 jobs respectively.

(c) The sum approved or disbursed in the period since the announcement of the youth facilities is approximately R300 million for the two entities combined.

Reply received: August 2014

PARLIAMENTARY QUESTION NO 516

Interdepartmental Transfer from Finance: 6 August 2014

516. Dr D T George (DA) to ask the Minister of Economic Development: [Interdepartmental transfer from Finance on 06 August 2014]

With regard to the development of the Mamba cement factory in Limpopo, (a) what were the (i) reasons and (ii) legal basis for the import duties being waived on machinery imported for the initial construction of the factory and for its later cement production activities and (b) what was the (i) loss to the fiscus as a result of this waiver and (ii) National Treasury's role in this development? NW598E

REPLY:

A similar question was put to the Minister of Trade and Industry on the Mamba Cement Factory.

Please find the attached response as submitted by the Minister of Trade and Industry, to which I am not able to add any further information.

THE NATIONAL ASSEMBLY

QUESTION FOR WRITTEN REPLY

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

With regard to the development of the Mamba cement factory in Limpopo, (a) what were the (i) reasons and (ii) legal basis for the import duties being waived on machinery imported for the initial construction of the factory and for its later cement production activities, (b) what were the (i) reasons and (ii) legal basis for workers from other countries being allowed into South Africa to work on the construction of this factory, (c) how many permanent jobs for South African citizens will be created in this factory, (d) how does this transaction fit within his department's (i) industrialisation and (ii) localisation policies and (e) what was his department's role in this development? NW596E

Reply

(a)(i) ITAC did not provide any waivers on import duties on machinery or any other products to Mamba cement, as ITAC did not receive any request by Mamba for the duty-free importation of plant or machinery used for the construction of the cement factory in Limpopo.

(a)(ii) Rebates of duties are specifically in terms of rebate items 490.40 and 490.90 of Schedule 4 of the Customs & Excise Act, 91 of 1964 which provides for a full rebate of duty on temporary importation of machinery or plant (excluding tower cranes) for use on contract in civil engineering or construction work.

(b) The issuing of work permits and company transfers is the responsibility of the Department of Home Affairs.Kindly refer this question to Department of Home Affairs official responsible for this project – Mr Ben Makhalemele Ben.Makhalemele@dha.gov.za, Tel: 072 891 3263.

(c) According to the information received from Mamba Cement (Pty) Ltd, 196 permanent jobs will be created. During the construction phase 513 temporary jobs will be created.

(d) The Mamba cement project will lead to economic development in Limpopo and it will spur economic growth in the surrounding areas that can lead to the creation of a number of direct and indirect jobs. South Africa's infrastructure spend will require inputs such as cement in large quantities. In order for companies to participate in these projects they need to localise their production. The localisation of productive capacity leads to the transfer of technology, efficiency, competition which lowers prices and job creation. Industrialisation characterised by the manufacturing of value added products forms the foundation of the departments Industrial Policy Action Plan (IPAP).

(e) The Department of Trade and Industry through its Trade and Investment South Africa (TISA) division is responsible for the facilitation of foreign direct investment into South Africa. Mamba cement is one of the projects that were facilitated through the involvement of TISA.

Reply received: August 2014

PARLIAMENTARY QUESTION NO 455

DATE OF PUBLICATION: 4 JULY 2014

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

(a) How many green projects have been funded by the Industrial Development Corporation (IDC) since the release of the New Growth Path in November 2010, (b) what is the geographic spread of all IDC funded green projects and (c)(i) what total funding has been provided by the IDC for each green project and (ii) what is the cumulative total of all green project funding since 2010? NW538E

REPLY:

The IDC has funded 54 green projects in solar, wind and other renewable sources and green technology, with a value of over R14billion. Details are as follows:

1. Renewable IPP Programme

The IDC has to date approved funding for the following 22 Renewable projects with a total funding of ca R13 billion, of which an amount of ca R4.2 billion has been disbursed to date.

· 13 projects in the Northern Cape with total IDC funding of R11,212,480,160

· 5 Projects in the Eastern Cape with total funding of R1,646,498,113

· 3 projects in the Western Cape with total IDC funding of R436,284,997

· 1 project in North West with total IDC funding of R101,375,473

2. Energy Efficiency

The IDC has to date approved funding for the following 18 Energy Efficiency Projects with a total funding of ca R201 million:

· 8 projects in Gauteng with total funding of R82,792,692

· 5 Projects in the Western Cape with total funding of R14,447,000

· 2 projects in KwaZulu Natal with total funding of R21,876,915

· 2 projects in North West/Free State with total funding of R31,900,000

· 1 project Nationally with total funding of R50,000,000

The above projects utilise either one of the following technologies:

· Roof Top PV (i.e. Micro / Embedded Generation)

· Energy Efficient Lighting (Eskom Rebate Programme)

· Solar Water Heater Roll Outs (Both High Pressure and Low Pressure markets)

· Energy Efficient Lights

· Energy Efficient Refrigeration

· Variable Speed Drives

· Load Controllers and Heat Pumps

· Energy Recovery Turbine (Micro Hydro Generation)

3. Fuel Based Renewable Energy

In South Africa, the IDC has to date approved funding for the following 14 Fuel Based Renewal Energy projects with a total funding of R699, 5 million:

· 5 projects in the KwaZulu Natal with total IDC funding of R349 million

· 5 projects in Gauteng with total IDC funding of R140 million

· 2 projects in Northern Cape with total IDC funding of R194 million

· 1 project in Western cape with total IDC funding of R10 million

· 1 project in North West with total IDC funding of R6 million

Reply received: April 2014

PARLIAMENTARY QUESTION NO 340

DATE OF PUBLICATION: 14 MARCH 2014

Mr A P van der Westhuizen (DA) to ask the Minister of Economic Development:

With regard to his reply to question 18 for oral reply on 6 March 2014, (a) by whom was the regulatory impact assessment (RIA) conducted and (b) if he will make a copy of the RIA available? NW393E

REPLY:

The assessment was conducted by the Policy Branch of the Department following consultation with social partners and other government departments. A revised assessment is being prepared by the Department to include assessment of the impact of the changes made to the Bill during the parliamentary process and will be published on the Department's website in due course.

Reply received: July 2014

PARLIAMENTARY QUESTION NO 339

DATE OF PUBLICATION: 27 JUNE 2014

Mr A R McLoughlin (DA) to ask the Minister of Economic Development:

(1) What are the details of all flowers purchased by his department for each year between 1 April 2009 up to the latest specified date for which information is available;

(2) what are the details of (a)(i) the address and (ii) the name of the office where the specified flowers were displayed, (b) for whose benefit were the flowers purchased and (c) what was the purchase value of the flowers for each office where it was displayed;

(3) in respect of flowers purchased for individuals, (a) what is the (i) name and (ii) relationship of the person to (aa) him and (bb) the Ministry and (b) what is the cost of each purchase;

(4) what are the details of any (a) contractual arrangements and (b) plans to purchase flowers in the future? NW420E

REPLY

The Economic Development Department purchased flowers on the following instances:

2009/10: No expenditure incurred on flowers

2010/11: No expenditure incurred on flowers

2011/12: No expenditure incurred on flowers

2012/13: Purchased flowers amounting to R13 717.49 for EDD Annual Conference, sefa launch, condolence flowers to bereaved families and for hospitalised EDD staff members.

2013/14: Purchased flowers amounting to R4 050.05 for the Youth Employment Accord launch, condolence flowers to bereaved families and for hospitalised EDD staff members.

The Economic Development Department has no contractual arrangements for flowers. These are only purchased when the need arise, following normal procurement processes.

Reply received: July 2014

PARLIAMENTARY QUESTION NO 306

DATE OF PUBLICATION: 27 JUNE 2014

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

(1) What are the details of office furniture ordered and or purchased for the use of him and/or his staff since 1 May 2014;

(2) in respect of each piece of furniture, (a) what is the description, (b) what is the breakdown of the costs, (c) where will each piece of furniture be used and (d) who will use each piece of furniture;

(3) what are the details of furniture disposed of;

(4) in respect of each piece of furniture disposed of, (a) what is the description, (b) original purchase costs and (c) on what date was it purchased;

(5) (a) how was this furniture disposed of, (b) what disposal method was used, (c) what is the name and contact details of person/s to whom it was disposed and (d) at what price was it disposed of? NW386E

REPLY

No furniture was ordered or purchased by the Department or Ministry since 1 May 2014.

Reply received: July 2014

PARLIAMENTARY QUESTION NO 272

DATE OF PUBLICATION: 27 JUNE 2014

Mr A R McLoughlin (DA) to ask the Minister of Economic Development:

(1) What are the details of motor vehicles ordered and/or purchased for his use since May 2014;

(2) (a) what is the (i) make, (ii) model, (iii) total cost and (iv) breakdown of the cost of each motor vehicle and (b) where will each motor vehicle normally be stationed? NW351E

REPLY

I have not ordered or purchased any vehicles since May 2014.

Reply received: March 2014

PARLIAMENTARY QUESTION NO: 178

DATE OF PUBLICATION: 21 FEBRUARY 2014

Mr A P van der Westhuizen (DA) to ask the Minister of Economic Development:

(1) Whether any steps have been taken to integrate the work of his department with the local economic development desks at local government level; if not, why not; if so, what are the relevant details;

(2) what support, if any, is envisaged to strengthen the functioning of local economic development initiatives at local government level in the future;

(3) have these plans been reflected in any of his department's strategic planning documents; if not, why not; if so, in which documents? NW184E

REPLY

EDD partners with the Departments of Trade and Industry (the dti) and Cooperative Governance and Traditional Affairs (COGTA) and the South African Local Government Association (SALGA) to strengthen the functioning of local economic development initiatives at local government. Institutional mechanisms to accelerate and integrate the implementation of local economic development with provincial and national initiatives. Further, the department will be assisting with the development of economic, spatial plans and also reviewing such plans where applicable and providing feedback to the relevant institutions.

In addition, the Department liaises with SIP coordinators to involve local government in the National Infrastructure Plan and to align local economic development efforts to the Strategic Integrated Projects (SIPs).

The IDC works with local economic development desks where applicable.

The review process of the seven general key performance indicators for local government which requires alignment to national economic policies was actioned during the third quarter of this financial year (2013/14). Further consultation with COGTA on the review of 2013-2018 national frameworks for local economic development (LED) is underway.

The plans to improve integration of local economic development initiative have been incorporated into the department's annual performance plan for the 2014/15 financial year. This is reflected in the following key performance indicators:

- number of economic development plans completed;

- number of spatial economic plans produced and or reviewed per year; and

- Provincial economic development plans and actions reviewed and feedback provided.

Reply received: March 2014

PARLIAMENTARY QUESTION NO 176 of 2014

DATE OF PUBLICATION: 21 FEBRUARY 2014

Mr A P van der Westhuizen (DA) to ask the Minister of Economic Development:

(1) (a) What are the benchmarks or minimum standards set in terms of the support given to small enterprises by the Small Enterprise Finance Agency (SEFA) for the 2013-14 financial year and (b) how is the organisation tracking in this regard;

(2) (a) whether he is satisfied with the current level of support given by SEFA to small enterprises; if not, what is being done to ensure greater support to small enterprises? NW182E

REPLY

The Small Enterprise Finance Agency (sefa) compiles, on an annual basis, a corporate plan. The corporate plan is compiled in fulfilment of the provisions of Section 52 of the Public Finance Management Act (PFMA), Act 1 of 1999 as amended; Treasury Regulations 29.1.3 requirements; and the December 2009 National Treasury practice note anchoring Section 52 of the PFMA. The practice note requires that Schedule 2 and 3B Public Entities submit a corporate plan which should, as a minimum, include the following:

· Strategic objectives and outcomes;

· Key Performance Indicators (KPIs);

· Governance structures;

· Financial Plan (covering the next 5 years);

· Capital Expenditure Plan (covering the next 5 years);

· Borrowing Programme (covering the next 5 years);

· Risk Management Plan; and

· Materiality and Significance Framework.

The 2013/14 Corporate Plan identified the following sefa corporate targets and support to small, medium and micro enterprises:

Performance Indicator

Benchmark

Achievement of Benchmark (Feb 2014) per Sefa Report

Approvals

R815m

R686.9m

Disbursements

R737m

R318m

Number of SMMEs financed

15 219

52 905

Number of jobs created

18 311

69 360

Facilities disbursed to Youth-owned enterprises

30%

57% of target

Facilities disbursed to priority rural provinces

45%

129% of target

Facilities disbursed to women-owned businesses

40%

103% of target

Facilities disbursed to black owned enterprises

70%

129% of target

Facilities disbursed under R250k to end-users

40%

157% of target

The sefa corporate targets are being reviewed and monitored via:

· Monthly and quarterly sefa reports submitted to the Economic Development Department via sefa's shareholder (Industrial Development Corporation)

· Quarterly meetings with the Economic Development Department chaired by the Director General

Between 2009 and 2012 (4 years), sefa's predecessors, the South African Micro Finance Apex Fund (samaf) and Khula, approved a combined value of R831.1 million. Since sefa's establishment two years ago it has already exceeded this level of approvals in approving R1 290 million in finance to SMMEs. This is 55% more in the value of loans approved in 2 years than in the combined sum for the previous four years.

Sefa has improved its approval rate substantially, and has made strides with

a number of developmental goals.

I have requested Sefa to improve its monitoring of the performance of enterprises receiving loans and in particular to speed up disbursements of funds and take steps to lower the cost of lending that intermediaries charge to small businesses.

Reply received: July 2014

PARLIAMENTARY QUESTION NO 181

DATE OF PUBLICATION: 17 JUNE 2014

Adv H C Schmidt (DA) to ask the Minister of Economic Development:

(1) What are the details of all the costs of the maintenance of the pot plants in his (a) departmental offices and (b) official residence (i) in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12, (dd) 2012-13 and (ee) 2013-14 financial years and (ii) since 1 April 2014;

(2) in respect of the pot plant maintenance, (a) what is the (i) address and (ii) name of the office where they were/are displayed, (b) for whose benefit are these pot plants, (c) what was/is the value of maintenance for each office and (d) what are the details of any contracts and/or plans for the maintenance of these pot plants in the future? NW230E

REPLY:

The maintenance and cost of pot plants at the offices of the Economic Development Department in Cape Town and Pretoria are the responsibility of the Department of Public Works and the Department of Trade and Industry respectively and no details are available to EDD. The Department does not pay for pot plants in the official residence for the periods referred to.

Reply received: July 2014

PARLIAMENTARY QUESTION NO 147

DATE OF PUBLICATION: 17 JUNE 2014

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

(1) What are the details of all expenditure that was found to have been (a) irregular and (b) wasteful in his department for each year from 1 April 2009 up to the latest specified date for which information is available;

(2) in respect of each such finding of (a) irregular and (b) wasteful expenditure, (i) what (aa) is the description thereof, (bb) is the value thereof and (cc) action has been taken against the persons accountable for such expenditure and (ii) how much thereof (aa) has been recovered and (bb) from whom? NW160E

REPLY:

The Annual Reports of the Department contains details on irregular and wasteful expenditure using the classification of the Accountant General.

For the period under review, details of such expenditure are set out on the following pages of the Annual Reports:

Financial Year-2010/11 pages 107 -108

Financial Year-2011/12 page 114

Financial Year- 2012/13 pages 129-130

The 2013/14 financial year expenditure is currently being audited and will be reflected in the 2013/14 annual report which will be tabled in accordance with parliamentary rules.

Wasteful expenditure: one instance was recorded where a previous Deputy Minister was obliged to cancel a flight abroad as a result of a change in the official state visit programme for the country concerned, resulting in an expenditure of R27 383.50. The Accounting Officer regarded the expenditure as unavoidable and thus no further steps were taken.

Irregular expenditure refers to instances where expenditure was incurred without full compliance with the necessary documentation or procedures, but where the underlying activity may be either valid and legitimate or potentially improper.

They include:

(a) Supply-chain management issues involving R 54 000.00.

This involved the procurement of a legal expert without the necessary tax clearance certificate being available. The Department confirms that the service was rendered. The Department has put measures in place to avoid a recurrence.

(b) HR laws and regulations involving R 6 902.00

This involved staffing rules where staff performed overtime without necessary pre-approval. The Department has put measures in place to avoid a recurrence.

Reply received: July 2014

PARLIAMENTARY QUESTION NO 115

DATE OF PUBLICATION: 17 JUNE 2014

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

(1) What are the details of official credit cards issued to (a) him and/or (b) his staff;

(2) in respect of each credit card, (a) what is the (i) name and (ii) organogram position of the user, (b) what is the (i) maximum permissible value of each purchase and (ii) total credit limit of the card, (c) what are the details of permissible purchases for which the credit cards may be used and (d) may alcoholic beverages be purchased;

(3) in respect of purchases made with each credit card during the period 8 May 2014 and/or thereafter up to the latest specified date for which information is available, (a) what is the (i) name and (ii) organogram position of the user, (b) what is the (i) value of each purchase made, (ii) what are the details of each item purchased and (iii) for what purpose was each purchase made and (c) were any alcoholic beverages purchased; if so, (i) what are the (aa) details and (bb) value of these purchases and (ii) for what purpose was each purchase made? NW125E

REPLY

No official credit cards have been issued or are in use in the Ministry or Department.

Reply received: July 2014

PARLIAMENTARY QUESTION NO 82

DATE OF PUBLICATION: 17 JUNE 2014

Mr A G Whitfield (DA) to ask the Minister of Economic Development:

(1) How many (a) international and (b) domestic flights were undertaken by (i) him and (ii) his predecessors using (aa) aircraft operated by the military, (bb) aircraft chartered by the military or (cc) commercial aircraft during the period 1 April 2013 up to the latest specified date for which information is available;

(2) in respect of each specified flight, what was the (a)(i) date and (ii) place of (aa) departure and (bb) arrival and (b)(i) total cost and (ii) breakdown of such costs? NW90E

REPLY:

During the period under review, the Department did not incur an expense for any aircraft operated or chartered by the military because its work requirements during the period did not necessitate it.

Commercial air-travel is undertaken to allow the Minister to attend to work in parliament in Cape Town as well as the Department offices in Pretoria, to facilitate travel of the Minister to public engagements across the country, to hold meetings with social partners and to attend to official commitments abroad.

During the period from 1 April 2013, one trip was taken abroad, to Switzerland to attend the annual meeting of the World Economic Forum (WEF) at a cost of R62 887.

In the same period to 31 March 2014, the Minister undertook 67 domestic flights for which the Department paid, with airfare costs of R 412 051.

Reply received: March 2014

QUESTION NO 62

DATE OF PUBLICATION: 14 February 2014

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

1) How much does his department plan to spend on (a) advertising, (b) communication and (c) marketing between 1 January 2014 and 30 April 2014 (i) in total and (ii) as a breakdown of the amount;

2) What mediums is his department going to use in each case and (b) who is the service provider to be used;

3) What is the main message that his department plans to communicate during this time? NW63E

REPLY

(1) In the 2013/14 financial year the Economic Development Department was

voted R31 133 979 by parliament for Communications and Marketing. Most of its budget is utilised in communicating the outcome of government's work, with particular emphasis being placed on its infrastructure rollout. Detailed breakdowns will be available after the audit of expenditure has been completed.

(2) & (3)

(a) Both electronic and print media are utilised.

(b) The media and print houses are largely contracted directly via Brand SA. The Economic Development Department's communication focuses on the national infrastructure planning and implementation. It will also contribute towards government's broader communication on the 20 year celebration of democracy.

Reply received: July 2014

PARLIAMENTARY QUESTION NO 37

DATE OF PUBLICATION: 17 JUNE 2014

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

(a) With the creation of the new Ministry of Small Business Development, (i) which functions will be transferred from hid department to the Department of Small Business Development and (ii) why and (b) will any other functions be transferred to his department from the Department of Trade and Industry and/or other departments; if so, (aa) why and (bb) what would be the benefits of transferring these function? NW42E

REPLY:

The establishment of the new Ministry of Small Business Development is a key step in ensuring that expanded attention and support is given to the development of small businesses in South Africa. Since its establishment, EDD has been working closely with the new Ministry of Small Business Development and continues to work closely with the Department of Trade and Industry.

Should the work focus of the new Ministry result in realignment of specific functions in the next financial year in respect of any of the named Departments, an announcement will be made.

Reply received: July 2014

PARLIAMENTARY QUESTION NO 36

DATE OF PUBLICATION: 17 JUNE 2014

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

(a) Which posts are still vacant in his department, specifically in the senior management structure; (b) what are the reasons for these posts remaining vacant and (c) what steps has he taken to fill these posts with competent persons? NW41E

REPLY

During 2013, I commenced a process of review of the organizational structure of the Department, in view inter alia of

a) the new responsibilities that was given to EDD to provide extensive technical support to the PICC

b) the experience of the Department in providing oversight to DFIs as well as the trade administration and competition authorities

c) the completion of the initial work on and adoption thereof by Cabinet of the New Growth Path during 2010, the adoption by Cabinet of the National Development Plan and the National Infrastructure Plan and the further annual elaboration of the Industrial Policy Action Plan, all of which impact on the work of the Department

d) the need to ensure that the new Medium Term Strategic Framework of the fifth Administration is properly implemented through a new Annual Performance Plan, Strategic Plan, Budget Structure and organizational structure.

The organizational review would seek to consolidate the number of Chief Directorates, reduce the number of managers and improve the number of specialists with high-level skills and ensure that the necessary capacity exists to take forward the work of the Department.

I took into account that the Department was able, successfully as reported in the 2012/13 Annual Report, to secure short-term staffing resources on a dedicated basis from public agencies for some of its work at no cost to the Department.

I therefore requested the Department to only fill those posts which were essential for the completion of the work of the 4th Administration and for which no alternative arrangements were in place.

Accordingly, not every post was advertised. A recruitment process is in place in respect of four posts at Chief Director level. A further ten senior posts in the Department have been identified to be filled subject to the outcome of the organizational review.

I note that the new Annual Performance Plan of the Department was tabled in parliament on 27 June 2014 and is the first step in the organizational review.

In order to ensure that competent persons are recruited, the Department is securing the services of an executive search company to widen the pool of potential candidates.

Reply received: July 2014

PARLIAMENTARY QUESTION NO 34 of 2014

DATE OF PUBLICATION: 17 JUNE 2014

Mr A P van der Westhuizen (DA) to ask the Minister of Economic Development:

(a) Why were the envisaged (i) Competition Amendment Bill and (ii) the International Trade and Administration Amendment Bill not tabled in the Fourth Parliament and (b) what is the current status of these envisaged pieces of legislation? NW39E

REPLY:

Additional work was required on both areas of policy to ensure that the Bills, when tabled in parliament, properly addresses the issues that the executive seek parliament to consider and address, that no unnecessary regulatory burdens are introduced in the process and that the experience of government in the implementation of policy frameworks are adequately taken into account. It is envisaged that Bills addressing both competition and trade administration issues will accordingly be tabled in parliament during 2015.