National Council of Provinces - 21 October 2004
THURSDAY, 21 OCTOBER 2004 __
PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
____
The Council met at 14:04.
The Deputy Chairperson took the Chair and requested members to observe a moment of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.
TERRIBLE CONDITIONS EXPERIENCED BY THE ELDERLY AT PENSION PAY-OUT POINTS
(Draft Resolution)
Rev E ADOLPH: Deputy Chairperson, I move without notice:
That the Council-
1) notes with profound concern that the Independent Democrats discovered
during their national campaign the terribly humiliating conditions
experienced by pensioners, and especially the elderly during pay-
outs; (2) recognises that we should not abuse elderly people by means of a
single or repeated act or a lack of action that causes harm or
distress to any older person – an older person’s rights, enshrined in
Chapter 2 of the Constitution should not be violated;
(3) further notes and recognises that it is our obligation to support and care for the elderly people;
(4) believes that the elderly should be treated with respect and that their dignity should be uplifted;
(5) notes that in the Eastern Cape pensioners sleep at pay-out points the night before pay-outs in order to get a place in the queue;
(6) believes it is unacceptable that due to their age and poor health they have to stand in long queues, and notes that some are even brought to the pay-out points in wheelbarrows while others are being carried by young people;
(7) further notes that there is an urgent need for the Department of Social Development to move speedily and to include banks and other financial institutions as key partners in the distribution of pensions and social grants; and
(8) believes that-
(a) the Government has a constitutional obligation to see to the
humane and effective distribution of pensions, but it cannot be
left to the government alone; and
(b) it is the responsibility of every South African, including
members of this House, to ensure that our elderly receive their
pensions and social grants in a dignified manner as enshrined in
our Constitution.
Motion agreed to in accordance with section 65 of the Constitution.
Mr M A SULLIMAN: Chairperson, I just want to clarify whether we are dealing with notices of motion or with motions without notice first.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Nobody moved a motion. We are now dealing with motions without notice.
CONGRATULATIONS TO SHERRY CHEN
(Draft Resolution)
Mr A WATSON: Chair, I move without notice:
That the Council- (1) notes that the hon member Sherry Chen of the Democratic Alliance was awarded one of the Top Ten Global Chinese Business Women’s Award in 2001 by the Taiwanese Business Chamber;
(2) further notes with pride that she was again honoured with this outstanding distinction for 2004; and
(3) therefore joins the DA in congratulating her on this outstanding achievement and wishes her well in her future endeavours.
Motion agreed to in accordance with section 65 of the Constitution.
THE IMPORTANCE OF TOURISM TO SOUTH AFRICA’S ECONOMY
(Draft Resolution)
Mr J O TLHAGALE: Chairperson, I move without notice:
That the Council-
(1) notes with appreciation that according to a Business Day news report-
a) tourism has achieved the status of new gold for South
Africa’s economy; and
b) that the foreign exchange proceeds from this industry are now
higher than the receipts from gold exports, reflecting the
growing importance of this industry to South Africa’s
economy; and
1) calls on this House to congratulate the relevant Ministers, past and
present, and all those people who are associated with this
department for the sterling work they are doing.
Motion agreed to in accordance with section 65 of the Constitution.
VISIT TO KWAZULU-NATAL BY THE QUEEN MARY 2
(Draft Resolution)
Mrs J N VILAKAZI: Deputy Chairperson, I move without notice:
That the Council-
1) congratulates KwaZulu-Natal, which will be visited by the Queen Mary
2, the greatest ocean liner of our time during her 2005-2006 voyage;
(2) acknowledges that the Queen Mary 2 has been described, in the Zululand Observer of 17 September 2004, as the largest, longest, tallest, widest, grandest and most expensive ocean liner ever seen;
(3) notes with pleasure that Esther Currie of Amalfi Travel Promotions has confirmed that the port of Richards Bay is being considered as a stopover because the harbour is big enough to allow the massive ship entry;
(4) therefore congratulates the port of Richards Bay on hosting such a huge, famous and enormous ocean liner – this will definitely boost the economy of KwaZulu-Natal.
Motion agreed to in accordance with section 65 of the Constitution.
NATIONAL ENERGY REGULATOR BILL
(Consideration of Bill and of Report of Select Committee on Economic and Foreign Affairs thereon)
The DEPUTY MINISTER OF MINERALS AND ENERGY: Chairperson, I present to you the National Energy Regulator Bill, which seeks to establish a single national energy regulator to undertake the economic regulation of the electricity, gas and petroleum pipeline sectors. The three industries addressed in this Bill are currently scheduled to be regulated by three regulators.
The electricity industry is currently regulated by the Electricity Act of 1987, as amended. The National Electricity Regulator has been established and is actively addressing the regulation of the Electricity Regulator from its offices in Pretoria.
The piped-gas industry is scheduled to be regulated by the Gas Act of 2001. Although the Gas Act was promulgated during 2001, it has not yet been operationalised. This Act is supported by the Gas Regulator Levies Act that was promulgated during 2002.
The Gas Regulator, as defined in the Gas Act, has also been given the authority to administer the government or Sasol agreement regarding the 865km-long natural gas transmission pipeline from the Temane and Pande gas fields in Mozambique to Secunda in South Africa. The natural gas from Mozambique started flowing to South Africa officially as at 26 March 2004.
The petroleum pipeline industry is scheduled to be regulated by the Petroleum Pipelines Act of 2003. Although the Petroleum Pipelines Act was promulgated during 2003, it has not yet been operationalised.
With the establishment of these regulators, the Cabinet was concerned about the possible proliferation of regulators and the commensurate rise in cost to the industries and the country.
Therefore, Cabinet, at its meeting of 30 April 2002, determined that the Cabinet approve a multisector regulator as follows: amend the National Electricity Regulator Act of 1987, the Gas Act and the Petroleum Pipelines Bill to provide for the same persons to be appointed to all three boards. A single regulator for these three industries would have inherent synergies that would increase efficiencies.
My department undertook a study to ascertain how best to give effect to the Cabinet’s decision. Subsequently, the draft Energy Regulator Bill was written. In December 2003, Cabinet approved that the Energy Regulator Bill be submitted directly to Parliament for consideration. It was not sent for public comment, as the Bill was merely an amalgamation of other pieces of legislation.
A single energy regulator has a number of advantages. It limits the proliferation of state entities. It capitalises on synergies and efficiencies that are possible by including three functions in one body, for instance one administration overhead will be the result. It facilitates the equal treatment of competing energy carriers, for instance gas and electricity. It enables cost savings by eliminating duplicate services, such as administration, and it makes the best of the shortage of regulatory skills.
The National Energy Regulator Bill establishes a single energy regulator for the electricity, piped-gas and petroleum pipeline industries; and repeals only those sections of the Electricity Act, the Gas Act and the Petroleum Pipelines Act that pertain to the establishment of the associated regulators or authorities.
This Bill also amends these three pieces of legislation to redefine their respective associated regulators or authorities to mean the National Energy Regulator, as established by this Bill. Other sections of the Electricity Act, the Gas Act and the Petroleum Pipelines Act essentially remain unchanged to establish a National Energy Regulator for the regulation of the electricity, piped-gas and petroleum pipelines industries.
The Bill does not address how the Regulator will undertake its functions. Those aspects are already part of the existing electricity, gas and petroleum pipelines regulations that will not be repealed.
Chapter 1 of the Bill addresses the objectives of the Bill and establishes the Regulator. The National Energy Regulator is scheduled to undertake the functions of the Gas Regulator and the Petroleum Pipelines Regulatory Authority from 1 April 2005. The energy regulator is scheduled to undertake the functions of the national electricity regulator from some date after 1 June 2005, as determined by the Minister by notice in the Gazette.
The energy regulator shall comprise four part-time members and five full- time members. The full-time members shall consist of the chief executive officer, a specialist in electricity, a specialist in gas and a specialist in petroleum pipelines. The terms of office of the full-time members shall be five years and the terms of office of the part-time members shall be four years.
Chapter 2 of the Bill addresses the establishment of the Regulator as a juristic person. It also deals with the following: functions of the Regulator; composition of the Regulator; vacation of office; meetings and duties; decisions; personnel; and funds accounting and reporting. The funds of the Energy Regulator will remain the same as those that pertain to the current provisions for electricity, gas and petroleum pipelines. However, these funds shall be ring-fenced for use by the particular industries from which they were derived. The National Energy Regulator shall be subject to the Public Finance Management Act and audited by the Auditor-General.
Chapter 3 of the Bill addresses general provisions. The Energy Regulator will take on the staff, including the CEO, of the Electricity Regulator. These will be transferred to the Energy Regulator. The schedule repeals and amends the Electricity Act, the Gas Act and the Petroleum Pipelines Act to redefine the Regulator.
The National Energy Regulator is scheduled to use the infrastructure created by the National Electricity Regulator, and will expand that infrastructure to undertake the gas and petroleum pipelines regulation functions as appropriate.
At an appropriate time in the future, it is anticipated that the Energy Regulator, as defined in this Bill, will take on the functions of regulating the petroleum products industry. At that time it is anticipated that a new Act will be written to encompass the regulation of the electricity, piped-gas, petroleum pipelines and petroleum products industries under the single Regulator in order to replace the separate Acts that pertain to these regulatory functions.
As stated earlier, the National Energy Regulator Bill was not published for public comment, as it is merely an amalgamation of certain sections of existing legislation. These pieces of legislation had previously undergone rigorous public consultation as appropriate.
However, the National Energy Regulator Bill was thoroughly perused by the parliamentary Portfolio Committee on Minerals and Energy who heard written and oral submissions from Eskom, BHP Billiton, Shell, the National Electricity Regulator, the Chamber of Mines, Sasol, Sacob, the Energy- Intensive Users Group and Sapia.
During the discussions by the parliamentary portfolio committee, the rights of individuals were also addressed and appropriate provisions were included to facilitate the participation of individual persons to be aware of and participate in the deliberations of the energy regulator. For example, the National Energy Regulator must make rules concerning the manner in which notices of meetings to be held and the business to be conducted are brought to the attention of the public.
The National Energy Regulator is scheduled to be established early in 2005. For the first couple of months the National Energy Regulator will undertake only gas and petroleum pipeline regulatory functions. This will enable the Regulator to focus on the multitude of tasks that it will encounter as it initiates the creation of these new regulatory functions. Thereafter, the Regulator will take on the electricity regulation function.
The purpose of this Bill is to streamline energy regulation and to capitalise on the inherent efficiencies that can be realised by a single Regulator. Through this approach the provision of energy, essential for economic growth, personal development and poverty alleviation, will be facilitated.
Remembering that the energy industry accounts for approximately 15% of the gross domestic product, this is an important piece of legislation to ensure that the energy industry is aligned to national strategy and priorities. I commend this Bill to the House. [Applause.]
Ms N D NTWANAMBI: Deputy Chair, Deputy Minister, officials from the Department of Minerals and Energy and members, a good thing about this Bill is that if the Deputy Minister has spoken, we have all spoken. Another thing I have noted is that even those who did not participate in the committee are going to participate in the House today.
Today we are here to vote on the Bill. Other than grammatical amendments and insertions, the Bill was agreed to by the committee. The committee has also noted that the Bill is of a technical nature. It proposes combining three regulators into a single one. When we agreed to the Bill, we looked at the costs that would be cut. There will be more savings as a result of there being one Energy Regulator.
The Bill does not intend scrapping any existing Acts, but looks at what is good for the country. It also amends the Electricity, Gas and Petroleum Acts to redefine the associated regulators or authorities. Other areas in these Acts remain the same, as the Deputy Minister has said.
We agreed to the Bill for reasons of efficiency. The current Electricity Regulator’s term expires at the end of May 2005. The gas transmission pipeline from Mozambique to South Africa has been completed, and the agreements between government and Sasol need to be administered by a gas regulator. In order to fulfil Cabinet’s decision, the National Energy Regulator Bill will therefore create this one regulatory body.
As recommended by the Select Committee on Economic and Foreign Affairs, we propose that the House vote in favour of the Bill. Thank you very much. [Applause.]
Mr A WATSON: Chair, may I, just at the outset, point out to the previous speaker that the Bills passed by this House and Parliament in general are not just for those who attend the meetings, but for the population of South Africa as a whole. The one thing I do have to agree with her though is that after the Minister has spoken, there is very little else to say. However, hon Chair, if you will allow me, I will have to repeat some of the items already mentioned.
The National Energy Regulator Bill intends to put legislation in place to regulate three of the most important energy sources - the electricity, piped-gas and petroleum pipeline industries - by establishing a welcomed National Energy Regulator at a date to be determined by the President.
It is clear from the briefings by the Department of Minerals and Energy and from documentation that South Africa, and therefore also a considerable portion of Southern Africa, can expect severe shortages in electricity supply from as early as 2007. The recommissioning of mothballed power stations like Kamden, Grootvlei and Komati – coal power stations in Mpumalanga – will in the short term relieve some of the pressure and demand for electricity supply, and this is also welcomed as a positive contribution to the economy of Mpumalanga.
However, the high economic growth goals set for South Africa will result in an increased reliance on other alternative energy sources in the long term, and their effective co-ordination will be imperative for the sustainable growth of the economy.
It is welcomed that the synergy required for future planning and co- ordination of available energy sources is, to a certain extent, also addressed by the Bill. Although other energy legislation, such as the Gas Act and the Petroleum Pipelines Act, as was mentioned, provide for regulatory authorities, no such regulators have been established to date.
The reasons given for these failures relate to a lack of available skills in the regulatory environment, the duplication of costs and other policy considerations. The establishment of the National Energy Regulator must therefore be welcomed.
Whilst members of the proposed energy regulator are to be appointed by the Minister by notice in the Government Gazette, calling for nominations from members of the public, it is most gratifying to note that no person may be appointed as a member of the Energy Regulator if that person has, within a period of 10 years immediately before the date of the proposed appointment, been convicted of an offence involving dishonesty, or has served a sentence of imprisonment without the option of a fine for any other offence.
This clause is supported wholeheartedly, as any individual would be precluded from being appointed if he or she has been convicted of any offence relating to dishonesty within a period of 10 years, even though such offence may have no connection to matters related to the proposed regulator.
The designation of three full-time members by the Minister, each one to be primarily responsible for each of the three identified industries, namely electricity regulation, piped-gas regulation and petroleum pipeline regulation, will ensure accountability in respect of each of those.
It is hoped that the National Energy Regulator will exercise its functions as an independent body. This will be strengthened by the fact that whilst appeals against decisions of the Electricity Regulator were, in the past, directed to the Minister, appeals against the Energy Regulator will, in future, have to be directed to the High Court of this country.
Lastly, it is welcomed that meetings of the Energy Regulator will generally be open to the public unless a valid reason exists for doing otherwise. This will ensure transparency and public scrutiny. The DA therefore supports the Bill and the consequent establishment of a National Energy Regulator. I thank you. [Applause.]
The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Hon members, the following member is going to deliver his maiden speech. Please don’t disturb the member. It’s his maiden speech; listen carefully.
Mr M J SIBIYA: Hon Chairperson, Madam Deputy Minister, departmental officials, colleagues, comrades, ladies and gentlemen, I have now come to know that I am delivering my maiden speech. And “maiden speech” has now become a new term in my vocabulary as an MP.
It is a great privilege and an honour for me to address this House. As has already been said, and alluded to by our Deputy Minister, in April 2002 our government decided that electricity, piped-gas and petroleum pipeline regulators be encompassed within a single Energy Regulator. Before going any further, perhaps it would serve the purpose as well to begin to ask a question as to what functions will definitely be served by this Energy Regulator we are talking about.
As envisaged by our government, the National Energy Regulator will have to ensure the following: that hydrocarbon gas, usually propane or butane, is kept under pressure; that if a licensee contravenes or fails to comply with a condition of a licence or any provision of the Gas Act, he or she is served a notice directing that compliance be effected within a reasonable period; and that maximum prices for distributors, reticulators and all classes of consumers will have to be approved.
The National Energy Regulator will ensure that it issues licences for the construction, conversion and operation of petroleum pipelines, loading and storage facilities; it will ensure that it undertakes investigations and enquiry into the activities of licensees; it will issue licences for the generation, provision and, within the area determined by it, distribution of electricity; it will also have to collect the necessary information from role-players as well as consumers; and, it will ensure that inspections of the equipment and licensees are performed.
Perhaps, it would also be a good question to ask what we expect the composition of the National Energy Regulator we are talking about to be like. The following points give some insight into that. Firstly, as alluded to by our hon Deputy Minister, it will have to consist of four full-time and five part-time members. Secondly, one full-time member will have to serve as the chief executive officer. Thirdly, one part-time member will also have to serve as the chairperson and another part-time member will serve as a deputy chairperson. A full-time member, again as alluded to by our Deputy Minister, will have a five-year term of office, while the part–timer will have four years as his or her term of office.
Now, regarding all that has been said, wouldn’t you agree that that indeed confirms our government’s envisaged purpose that the National Energy Regulator will, if established, improve efficiency in the energy industry? And, on the basis of that, the ANC unreservedly supports the Bill and therefore proposes that this House as well unreservedly votes for the Bill. Thank you. [Applause.]
The DEPUTY CHAIPERSON OF THE NCOP (Mr M J Mahlangu): Well done! You have heard the House complimenting you on your maiden speech, Mr Sibiya.
Mr K SINCLAIR: Hon Deputy Chairperson, hon Deputy Minister, colleagues, although the National Energy Regulatory Bill is of a technical nature, it’s important to look at the broad implications of the objectives of this Bill today. In doing so, it’s important to add value to what our hon President of our country once said. President Mbeki said, and I quote:
When something goes wrong in Somalia, the residents of Mississippi
don’t say something has gone wrong in Somalia, but they say something
has gone wrong in Africa. And when somebody steals the presidency in
Togo, they don’t say somebody has stolen the presidency in Togo, they
say the Africans have done it yet again.
In debating the necessity of this Bill today, it is therefore important to realise that this Bill is not just about South Africa, but it is also about our neighbours, the rest of SADC and Africa. It’s indeed part of the reawakening of Africa, the African Renaissance in practice.
With business, manufacturing and building contractors’ confidence improving all the time - and it stands at an average of over 70 index points per 100
- all these activities need energy and resources. It is therefore necessary that we, as South Africans, have an effective and efficient regulatory body. It is important that the end consumer, be it South Africa, Zimbabwe or Mozambique, benefit from this Bill. Because of that, the NNP supports this Bill. I thank you. [Applause.]
Ms M P THEMBA: Hon Deputy Chairperson, hon Deputy Minister, colleagues, ladies and gentlemen, the major objective of integrated development is to improve service delivery by cutting down on the detail associated with many public entities. It is our belief as the ANC that having one regulator, which caters for electricity, piped-gas and petroleum pipelines, will yield effectiveness and efficiency in energy delivery and the delivery of basic needs to the people. This confirms the ANC-led government’s commitment to delivery.
Since energy plays a critical role in the life of our people, it is necessary that energy is managed orderly and that security of supply is ensured, in line with the White Paper on Energy. The White Paper sets out policy objectives that the National Energy Regulator will fulfil, which are to increase access to affordable energy service; improve energy governance; stimulate economic development; diversify energy supply; and manage energy- related impacts.
This Bill comes at a time when the Department of Minerals and Energy has acknowledged that we should expect electricity shortages from 2007 owing to the increasing demand for electricity. This will increase reliance on other possible energy sources in future, and the Energy Regulator will play a crucial role in co-ordinating the available energy sources to ensure that they do, in some respects, meet the energy requirements in the country. The Energy Regulator has to ensure, through the issuing of licences, that there is stability in energy supply.
Close to my heart is the positive impact of the gas pipeline from Mozambique to my constituency in Mpumalanga. The Energy Regulator will carry the function of gas regulator and administer the Sasol agreement regarding the importation of gas from Mozambique, something my colleagues and the Deputy Minister have already alluded to.
The project has created a range of significant new investments. It has led to the creation of a number of economic activities along the Mozambique pipeline and has improved the lives of communities in the area. It has, in particular, facilitated industrial development along the route of the pipeline through Mpumalanga and Gauteng. Through the Mozambique gas pipeline project, the South African government has fulfilled its commitment to regional development. At the same time, this will ensure a constant supply of natural gas to the country.
Some of the conditions to take into consideration in the issuing of licences are as follows: creating employment opportunities and developing business, especially business by black people; ensuring countrywide availability of energy; and promoting access to affordable energy sources for low-income consumers for household use. For example, in terms of the Petroleum Pipelines Act, the regulator has to promote equitable access to petroleum pipelines, loading facilities and the storage of petroleum, as well as to promote companies owned or controlled by historically disadvantaged South Africans by means of licence conditions.
The conditions set for licence applications are promoting the historically disadvantaged in the energy industry, and ensuring that companies applying for licences show their commitment to black economic empowerment. By these kinds of provisions, the department shows its commitment to transformation, ensuring that people who were denied opportunities in the past are given a chance in the new dispensation.
The ANC appreciates the fact that the Bill does address the issue of representation in the membership of the Energy Regulator. The Bill requires the Minister, when appointing members of the Energy Regulator, to make sure that they are collectively broadly representative of South African society as a whole. This means that the Minister must take into consideration race, gender, youth and people with disabilities when appointing members of the Energy Regulator.
We are confident, as the ANC, that the Minister will be able to select suitable people from disadvantaged groups, particularly women and people with disabilities. In addition, proper regard has been given to the interests of the public. The Bill requires that members of the Energy Regulator always act in the public interest and that its decisions are in the public interest at all times.
The other important feature of the Bill is that it has a provision that requires the Minister to gazette an invitation to members of the public to nominate people for membership, from whom she will appoint members. The department should be applauded for ensuring that the public is involved in the processes of the Energy Regulator and that the public interest is at the centre of its decisions.
The ANC supports this Bill wholeheartedly, and we believe in an integrated approach in the delivery of energy. I thank you, Chair. [Applause.]
The DEPUTY MINISTER OF MINERALS AND ENERGY: Thank you, Chairperson. I must commend you on this podium as it’s very gender sensitive, and I will recommend it to our Speaker.
First of all, let me thank the members, led by the chairperson of the select committee, Ms Ntwanambi, for supporting this Bill and ensuring that we all participate in this process. Indeed, as several members have indicated, this process will assist government to cut costs and ensure that we share the scarce skills that we have in the energy sector. This will indeed be an independent and accountable regulator that should protect the rights of the people of South Africa.
As Ms Themba has indicated, it will indeed highlight the opportunities opened up by energy distribution for economic development, especially to those who were previously disadvantaged – in our rural areas - and to women in particular. I also want to say thank you for the maiden speech; it was quite powerful. This is why we as women need the women’s caucuses, because men are always ready. We also need to prepare ourselves.
I also want to thank Mr Watson for the support from the DA. His concern about the energy resources diminishing by 2007 has indeed been taken care of. We have been meeting as SADC Ministers of energy. The next meeting is actually taking place in Johannesburg, starting this evening. When I leave here I will be going to the meeting, where the Minister is already preparing an address on the diminishing energy resources in the SADC region. All the Ministers are here in South Africa to discuss this issue.
One of the strategies we are looking at is to put together all our resources, including hydroelectricity - coal resources and whatever other resources - that will help us generate enough power to avoid the scarcity and the power breakdowns that we will be facing from 2007 onwards.
We have also identified a number of projects because, as Mr Sinclair said, this is not just a South African issue. There will be Nepad programmes. For instance, we are already discussing with the Minister from the DRC, who is also in Johannesburg for the meeting, building a huge project at Grand Inga. As you know, the Congo River is the biggest river in Africa, and we can draw hydroelectricity and generate energy from this river. This will not just be for SADC or Africa. That source can actually generate 50 000 megawatts of energy and can exceed 100 000 megawatts, depending on the situation, whether there are droughts and so on.
Therefore we hope that the Ministers will be signing a memorandum tomorrow that will then begin the process of setting up this Wesco project. We call it the Western Corridor Project, because it is on the Western corridor of the SADC region.
So out of that we will be able to generate that much energy. We have the possibility of not just distributing it in Africa - lighting up Africa - but also of selling to parts of Europe and to the Middle East. So that is one area in which we are working together as Ministers in the energy sector, although there other projects, in the coal sector for instance. We have agreed as a region that we will share the power that will be generated from whatever country has power stations ready by 2007.
I also welcome all the comments. I will indeed pass on all the concerns that were raised to the Minister. I want to reassure members that this regulator, this body, will be as accountable and as independent as the Bill dictates.
I want to close by emphasising that it is indeed only the ANC government that will ensure an efficient cost-saving and cost-effective programme, as we have done in the past 10 years. This government is the best manager of the economy of South Africa and it has proved its record from time immemorial. We have never had such a good government, such a good manager of the economy in this country. This government continues to focus on poverty alleviation and job creation. Once again, I want to thank the members.
Kuyacaca ukuba yiNdlu yeeNgwevu le. Asibe sixhwitha-xhwithana ngezinto ezingenamsebenzi. [It is clear that this is indeed the NCOP. We do not squabble about petty things.] I thank you. [Applause.]
Debate concluded.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Thank you, Deputy Minister, for your response to the debate. I could see that the podium fitted your height very well. However, I noticed that Mr Sinclair battled terribly when he stood there, because he is much taller than the podium. Perhaps we will have to adjust it for him. It’s gender sensitive.
Bill, subject to proposed amendments, agreed to in accordance with section 75 of the Constitution.
GENEVA ACT OF THE HAGUE AGREEMENT CONCERNING THE INTERNATIONAL REGISTRATION OF INDUSTRIAL DESIGNS
(Consideration of Report of Select Committee on Economic and Foreign
Affairs)
Mr D D GAMEDE: Hon Deputy Chairperson, hon members, ladies and gentlemen, firstly, I would like to make a point of correction. I see here on our screens it is written as “The Geneva Act of Heritage”. It should be “The Geneva Act of the Hague”. That should be corrected.
In this country we have seen many practical examples of how important taking ownership of our intellectual property is. As evidenced by last year’s SABS-designed prototype awards, South African innovators are developing products that have the potential to make an impact locally and internationally. It is important that we, as elected representatives of all South Africans, put in place systems which promote and foster all talents in this country.
The ANC has long held the belief that when this government enters into international agreements, it must do so in an effort to fight poverty and build the economic prospects of South Africa and Africa as a whole.
The Hague system concerning the international deposits of industrial designs aims to facilitate the establishment and maintenance of design protection through a single international deposit or registration simultaneously in all member countries designated by the applicants.
This means that when a design is registered in a specific member country and that registration is deposited at the World Intellectual Property Organisation by that member country, for example, South Africa, using the Hague system, that design is immediately registered and so protected in all other member countries. Thus, instead of having to go from one country to another to register the industrial design, the applicant can simply indicate on one particular form the member states for which he or she seeks protection.
On a micro level there are several advantages of joining the Hague system. The most obvious one is that it offers a more effective and quicker registration and protection of rights by offering a single registration process for a number of designated countries. The ANC has always maintained that the degree of protection accorded to intellectual property rights must be consistent with the optimum requirements of our economic policy.
This therefore means that since our continued economic development demands that our people be encouraged to exercise their ingenuity and entrepreneurship, we in government must put systems in place that encourage greater activity in intellectual property and generate fee income to member states.
One thing I am very certain of is that joining the Hague system could have an enormous impact on the local jewel economies in South Africa. It will have obvious benefits for those people already in the first economy, as they are normally already conversant with these kinds of systems.
The potential for moving people from the second to the first economy should, however, not be underestimated. There are a number of historically disadvantaged entrepreneurs and industrial designers currently trapped in the second economy who may have access to even greater markets through this system. Such access may be translated into increased investment in their products and more income-earning opportunities opening up for these people.
The value of recognising and protecting indigenous intellectual property was proven by the plight of the San people here in our country. The medicinal uses of their Hoodia cactus, an indigenous plant, have been handed down from generation to generation. Its capacity to stave off hunger and thirst has proved invaluable to the San hunters who have to spend days without food or water on the arid plains of the Kgalagadi.
The potential of the plant as a cure for obesity was recognised by the British firm Phytopharm, which patented the plant’s appetite-suppressing ability and sold the rights to the pharmaceutical giant Pfizer for US$30 million. However, Phytopharm initially cut the San tribe out of the deal, mistakenly claiming that they had died out.
Now, of great interest is that after two years of legal wrangling all the parties have finally agreed to a deal that will recognise the San people’s ancient knowledge of the Hoodia’s properties. Once it is signed, the agreement will represent a milestone in the long-running controversy that has surrounded the commercial exploitation of medicinal plants that have been used by indigenous tribes since prehistory. This will not always happen, however, if our people are not informed about their rights and the opportunities that are opening up to them every day.
I urge all of us to spread the message throughout our constituencies and to inform people that these income and wealth-creating avenues, which used to be the preserve of a select few, are now available to all the people of South Africa thanks to the ANC-led government.
For all the reasons mentioned herein and their potential to improve the lives of our people, the ANC supports the acceptance and the committee supports the acceptance of the Hague Agreement of 1960 and the Geneva Act of 1999 for International Deposits.
Ekugcineni sihlalo, uHulumeni oholwa nguKhongolose usaqhubeka nokwenza izinguquko ukuze izimpilo zabantu bonke zibe ngcono, sikwazi ukulwa nendlala, sidale namathuba emisebenzi.
Lesi sivumelwano sizofeza lezi zinjongo. U-ANC naleli komidi bayakuxhasa ukusayinwa kwalesi sivumelwano. Siyabonga. [Ihlombe.] (Translation of isiZulu paragraphs follows.)
[In conclusion, Chairperson, the ANC-led government is still continuing to make changes so as to create a better life for all people, so that we can fight poverty, and create job opportunities.
This agreement will accomplish these aims. The ANC and this committee support the ratification of this agreement. We thank you. [Applause.]]
Debate concluded.
The CHAIRPERSON OF COMMITTEES: Thank you, hon member. That concludes the debate. I shall now put the question, and the question is that the report be adopted. As the decision is dealt with in terms of section 65 of the Constitution, I shall first ascertain whether all delegation heads are present in the Chamber to cast their provinces’ votes. Are all delegation heads present? Yes.
In accordance with Rule 71, I shall first allow provinces the opportunity to make their declarations of vote if they so wish. We shall now proceed to the voting on the question. I shall do this in alphabetical order per province. Delegation heads must please indicate to the Chair whether they vote in favour of or against, or abstain from voting. I will start with the Eastern Cape.
Ms B N DLULANE: Enkosi, Sihlalo, i-Eastern Cape iyaxhasa. [Thank you, Chairperson, the Eastern Cape supports.]
The CHAIRPERSON OF COMMITTEES: Free State?
Mrs S E MABE: Freistata e a dumela. [Free State agrees.]
The CHAIRPERSON OF COMMITTEES: Gauteng?
Mr E M SOGONI: I-Gauteng iyavuma, Sihlalo. [Gauteng supports, Chair.]
The CHAIRPERSON OF COMMITTEES: KwaZulu-Natal?
Mr Z C NTULI: IKwaZulu-Natali iyavumelana. [KwaZulu-Natal supports.]
The CHAIRPERSON OF COMMITTEES: Limpopo?
Ms H F MATLANYANE: Limpopo e dumelana le yona. [Limpopo supports.]
The CHAIRPERSON OF COMMITTEES: Mpumalanga?
Ms M P THEMBA: Mpumalanga e tlatsa go menagane. [Gauteng supports completely.]
The CHAIRPERSON OF COMMITTEES: Northern Cape?
Mr M A SULLIMAN: Northern Cape supports.
The CHAIRPERSON OF COMMITTEES: North West?
Mr Z S KOLWENI: Ke a rona. [It accepts.]
The CHAIRPERSON OF COMMITTEES: Western Cape?
Mr F ADAMS: Wes-Kaap steun. [The Western Cape supports.]
The CHAIRPERSON OF COMMITTEES: Thank you, hon members. All provinces voted in favour. I therefore declare the report adopted.
Report accordingly adopted in accordance with section 65 of the Constitution.
PROTOCOL RELATING TO THE MADRID AGREEMENT CONCERNING THE INTERNATIONAL REGISTRATION OF TRADEMARKS
(Consideration of Report of Select Committee on Economic and Foreign
Affairs)
Mrs S E MABE: Hon Chairperson, hon members, Deputy Minister in absentia, ladies and gentlemen, Madam Chairperson, as you are all aware we are living in a global economy, and for South Africa to participate meaningfully in this global economy the government needs to put mechanisms in place which will facilitate entry into operation in this global market. The international instrument we are debating here today represents a pillar of the ANC-led government’s efforts to ensure that South Africans play a meaningful role in the global economy.
The Madrid protocol seeks to facilitate the international registration, maintenance and renewal of trademarks. This will be a change from previous periods in which people had to go to different countries to register their patents in all the countries where they wanted to be protected. Under the Madrid protocol, once registration has occurred in South Africa, the product will be protected in all the other member states party to the protocol. This will apply even though the applicant need only comply with the applicable South African laws.
As South Africans we have already shown tremendous ingenuity, which is evidenced by the fact that the Companies and Intellectual Property Registration Office currently receives 26 000 applications per year.
I am confident that we will see a significant increase in this figure if designers are allowed to register in more than one country by means of a single process. Such a surge in trademark activity will also be aided by the fact that the Madrid protocol is less rigid than other international instruments, which makes complying with it much less onerous. For example, it offers a choice of languages that can be used instead of only French. A small step, yes, but we are working on integrating the languages of Africa into the global world.
The Madrid protocol also allows 18 months for processing applications, which is longer than other international instruments, for example the Madrid agreement. It allows 12 months for processing applications, which is six months less than the protocol. All the above combines to create an environment conducive to an increase in monetary benefits for the country and in the activities of trademarks and design, it improves cost-effectiveness, and provides for quicker registration and protection of rights in member states through a single and, hopefully, simplified registration process.
As was reported in the ANC Today, our electronic newsletter which is available weekly, the ANC in government remains committed to encouraging investment, economic growth and job creation. However, we are also committed to ensuring that the benefits of our emancipation reach those who were marginalised under the regime. Promoting the dignity of all South Africans demands that this ANC-led government continues to make targeted interventions in the second economy.
The ANC has promised our people that one of those interventions will focus on entrepreneurial training. It is important that our people are made aware of the economic opportunities of the globalising world and the global economy.
In conclusion, the Cabinet has expressed the view that the instruments do not conflict with the Constitution of South Africa, Act 108 1996, nor with intellectual property legislation.
In terms of section 231(2) of the Constitution, the NCOP has been requested to ratify the accession to the Madrid system. Therefore, I move for the adoption of the Madrid protocol by the House. Thank you, Chair. [Applause.]
Debate concluded.
The CHAIRPERSON OF COMMITTEES: Thank you, hon member. That concludes the debate. I shall now put the question and the question is that the report be adopted. As the decision is dealt with in terms of section 65 of the Constitution, I shall first ascertain whether all delegation heads are present in the Chamber to cast their provinces’ votes. Are all delegation heads present? Yes.
In accordance with Rule 71, I shall first allow provinces the opportunity to make their declarations of vote if they so wish. We shall now proceed to voting on the question. I shall do this in alphabetical order per province. Delegation heads must please indicate to the Chair whether they vote in favour of or against, or abstain from voting. I shall start with the Eastern Cape.
Ms B N DLULANE: Sivumelana nayo. [We agree with it.]
The CHAIRPERSON OF COMMITTEES: Free State?
Ms S E MABE: Re a dumela. [We agree.]
The CHAIRPERSON OF COMMITTEES: Gauteng?
Mr E M SOGONI: Siyavuma. [We agree.]
The CHAIRPERSON OF COMMITTEES: KwaZulu-Natal?
Ms Z C NTULI: IKwaZulu-Natali iyavuma. [KwaZulu-Natal agrees.]
The CHAIRPERSON OF COMMITTEES: Limpopo?
Mr H F MATLANYANE: Limpopo agrees.
The CHAIRPERSON OF COMMITTEES: Mpumalanga?
Ms M P TEMBA: IMpumalanga iyasekela. [Mpumalanga supports.]
The CHAIRPERSON OF COMMITTEES: Northern Cape?
Mr M A SULLIMAN: Iyavuma. [It agrees.]
The CHAIRPERSON OF COMMITTEES: North West?
Mr Z S KolwenI: Ke a rona. [It agrees.]
The CHAIRPERSON OF COMMITTEES: Western Cape?
Mr F Adams: Wes-Kaap steun. [The Western Cape supports.]
Report accordingly adopted in accordance with section 65 of the Constitution.
The Council adjourned at 15:10.
__________
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
WEDNESDAY, 20 OCTOBER 2004
ANNOUNCEMENTS
National Assembly and National Council of Provinces
- Assent by President in respect of Bills
(1) Companies Amendment Bill [B 10D - 2004] - Act No 20 of 2004
(assented to and signed by President on 15 October 2004).
National Council of Provinces
- Messages from National Assembly to National Council of Provinces in respect of Bills passed by Assembly and transmitted to Council
(1) Bill passed by National Assembly on 20 October 2004 and
transmitted for concurrence:
(i) Securities Services Bill [B 19B - 2004] (National Assembly
- sec 75)
The Bill has been referred to the Select Committee on Finance of
the National Council of Provinces.
TABLINGS
National Assembly and National Council of Provinces
- The Minister of Foreign Affairs
Report and Financial Statements of Vote 3 - Department of Foreign
Affairs for 2003-2004, including the Report of the Auditor-General on
the Financial Statements of Vote 3 for 2003-2004 [RP 203-2004].
- The Minister of Trade and Industry
(a) Annual Report of the Council for the Non-Proliferation of
Weapons of Mass Destruction for 2002-2003.
(b) Report and Financial Statements of the National Empowerment Fund
for 2003-2004, including the Report of the Independent Auditors on
the Financial Statements 2003-2004.
(c) Report and Financial Statements of the Support Programme for
Industrial Innovation (SPII) for 2003-2004, including the Report
of the Independent Auditors on the Financial Statements 2003-2004.
(d) Report and Financial Statements of Technology for Women in
Business (TWIB) for 2003-2004.
THURSDAY, 21 OCTOBER 2004
ANNOUNCEMENTS
National Assembly and National Council of Provinces
- Bill passed by Houses - to be submitted to President for assent
(1) Bill passed by National Council of Provinces on 21 October 2004:
(i) National Payment System Amendment Bill [B 14D - 2004]
(National Assembly - sec 75)
National Council of Provinces
-
Messages from National Assembly to National Council of Provinces in respect of Bills passed by Assembly and transmitted to Council (1) Bill passed by National Assembly on 19 October 2004 and transmitted for concurrence:
(i) Petroleum Products Amendment Bill [B 16 - 2004] (National Assembly - sec 75)
The Bill has been referred to the Select Committee on Economic and Foreign Affairs of the National Council of Provinces.
TABLINGS
National Council of Provinces
- The Chairperson
Statement from the Acting MEC for Local Government, Housing and
Traditional Affairs in KwaZulu-Natal regarding the allegations of the
fraud and corruption occurring within the Matatiele Municipality,
KwaZulu-Natal in terms of section 106(3) of the Local Government:
Municipal Systems Act, 2000 (Act No 32 of 2000).
The statement is referred to the Select Committee on Local Government
and Administration.
COMMITTEE REPORTS
National Council of Provinces
-
Report of the Select Committee on Land and Environmental Affairs on the National Environmental Management: Air Quality Bill [B 62D - 2003] (National Council of Provinces - sec 76), dated 20 October 2004:
The Select Committee on Land and Environmental Affairs, having considered the subject of the National Environmental Management: Air Quality Bill [B 62D - 2003] (National Council of Provinces - sec 76), amended by the National Assembly and referred to the Committee, reports that it has agreed to the Bill.
-
Report of the Select Committee on Land and Environmental Affairs on the National Environmental Management: Protected Areas Amendment Bill [B 2B - 2004] (National Assembly - sec 75), dated 20 October 2004:
The Select Committee on Land and Environmental Affairs, having considered the subject of the National Environmental Management: Protected Areas Amendment Bill [B 2B - 2004] (National Assembly - sec 75), amended by the National Assembly and referred to the Committee, reports that it has agreed to the Bill.
CREDA PLEASE INSERT REPORT - Insert No 3 from “ATC1021e”