National Assembly - 01 September 2009
TUESDAY, 1 SEPTEMBER 2009 __
PROCEEDINGS OF THE NATIONAL ASSEMBLY
____
The House met at 14:01.
The Deputy Speaker took the Chair and requested members to observe a moment of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.
NOTICES OF MOTION
Mr J SCHMIDT: Madam Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move:
That the House debates the influence that the latest price increases of electricity tariffs as well as the expected future increases will have on the economy of South Africa and the inflation targets of Government, and possible solutions.
Mr P F SMITH: Madam Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the IFP:
That the House debates the need to introduce legislation preventing the Government before an election from using its position of incumbency to support the ruling party in a manner that unfairly prejudices other parties competing for electoral support.
Ms D ROBINSON: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:
That the House debates the adoption of SA Sign Language as the twelfth official language of South Africa and as an official matric subject.
Mr M WATERS: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:
That the House debates, in the light of Foetal Alcohol Day on 9 September 2009, the high prevalence of Foetal Alcohol Syndrome in South Africa and actions that can be taken to reduce this scourge.
Mr L RAMATLAKANE: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of Cope:
That the House debates the taxi industry’s resistance to the implementation of the Bus Rapid Transport, BRT, system and the implication thereof for the success of the 2010 World Cup. Mr A C STEYN: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:
That the House debates the decision of the national Department of Human Settlements to replace the waiting list system for qualifying beneficiaries of RDP subsidised housing with a central housing demand database.
Dr W G JAMES: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move:
That the House debates the funding formula for institutions of higher education.
70TH ANNIVERSARY OF WORLD WAR II
(Draft Resolution)
Mr M J ELLIS: Madam Deputy Speaker, I move without notice:
That the House –
1) notes that today is the 70th anniversary of the outbreak of World
War II;
2) recognises that the lessons learnt from this tragic chapter in
world history should not be forgotten; and
3) calls on all Members and the entire South African nation to
remember the millions of victims of this cataclysmic event and that
we recommit ourselves as a nation to the values of peace, human
rights and equality enshrined in our Constitution.
Agreed to.
21ST SUMMER DEAF OLYMPICS
(Draft Resolution)
Mr M J ELLIS: Madam Deputy Speaker, I move without notice:
That the House –
1) notes that the 21st Summer Deaf Olympics start on 5 September 2009
in Taipei, Taiwan;
2) further notes that the South African team consisting of 38 of our
best deaf athletes will be taking part in five of the seventeen
sports played at the games;
3) extends our devoted support to the team;
4) wishes them the best of luck; and
5) trusts that they will carry forth the momentum created by our
athletes in Berlin, and bring the medals home as they have done so
many times before.
Agreed to.
SPRINGBOKS DEFEAT THE WALLABIES IN PERTH
(Draft Resolution)
Mr M J ELLIS: Madam Deputy Speaker, I move without notice:
That the House –
1) notes that the Springboks emphatically defeated the Wallabies by 32-
25 at the Subioaco Oval in Perth on Saturday;
2) further notes that Jaque Fourie, Springbok scrumhalf, was awarded
the title ``Man of the Match‘’ during this, his 50th cap as a
Springbok;
3) congratulates captain John Smith and his team on yet another
sterling performance;
4) wishes them well for their preparations for and their next game
against the Wallabies in Brisbane on Saturday; and
5) trusts that they will do us proud, and bring the Tri-Nations cup
back to where it belongs once more.
Agreed to.
AMBER-JAY VAN ROOYEN AWARDED THE UNESCO FELLINI MEDAL FOR HER FILM “COMING HOME”
(Draft Resolution)
Mr M J ELLIS: Madam Deputy Speaker, I move without notice:
That the House –
1) notes that 14-year-old Amber-Jay van Rooyen of the Treverton
Preparatory School and College in Mooi River was recently awarded
the UNESCO Fellini Medal for her film “Coming Home”;
2) further notes that this film also won accolades at the
international Children’s Film Festival in Italy, the Durban
International Film Festival, as well as the SABC’s “Camera, Lights,
Action” competition;
3) congratulates her on these remarkable achievements; and
4) wishes her well in her career as a proudly South African filmmaker.
Agreed to.
PASSING AWAY OF MRS LANGA
(Draft Resolution)
Ms J D KILIAN: Madam Deputy Speaker, I move without notice:
That the House expresses its sincere condolences in the bereavement of Chief Justice Pius Langa and his family on the passing away of Mrs Langa after a long illness.
Agreed to.
CONGRATULATIONS TO POLICE ON THEIR RECOVERY OF BABY SNATCHED FROM TYGERBERG HOSPITAL
(Draft Resolution) Ms J D KILIAN: Madam Deputy Speaker, I move without notice:
That the House congratulates the Police who, in co-operation with the Mfuleni community, did hard investigative work which made it possible for baby Simamkele, who was snatched from the Tygerberg Hospital almost three weeks ago, to be recovered unharmed, and re-united with his family.
Agreed to.
IMPLEMENTATION OF PROVISIONS IN RULES FOR FIRST READING DEBATES ON BILLS INTRODUCED IN THE ASSEMBLY
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Madam Deputy Speaker, I move the draft resolution printed in my name on the Order Paper, as follows:
That the House resolves to implement the provisions in the Rules for First Reading debates on Bills introduced in the Assembly, except money Bills, in accordance with the following guidelines and notwithstanding any Rules to the contrary, and, that the guidelines be referred to the National Assembly Rules Committee with a view to adjusting the Rules, if necessary: (1) A First Reading debate may be conducted on Bills introduced in the Assembly.
(2) There shall be no speakers’ list for a First Reading debate.
(3) The Member in charge of a Bill, be it a Minister, a Member or a representative of a portfolio committee, must be allocated fifteen minutes to make an introductory speech on the background to, reasons for and objects of the Bill, and to reply to the debate.
(4) In the case of a Bill introduced by the Executive, a Deputy Minister may participate in the First Reading debate on behalf of a Minister.
(5) Members may speak on the Bill for no longer than three minutes each.
(6) With the exception of the member in charge of the Bill, or a Deputy Minister participating on behalf of the Minister, a member granted an opportunity to speak will not be given a second opportunity in the same debate.
7) Members intending to participate in the debate must press the “to
speak” button on their desks.
8) Decisions regarding the scheduling of First Reading debates are
taken by the Programme Committee.
9) If a Bill is introduced in the Assembly during a non-plenary
period, it may be scheduled for a First Reading debate as soon as
possible upon the resumption of plenaries.
10) Once the speeches have been made, a Bill is regarded as having
been read a first time.
11) No amendment to a Bill is allowed on its First Reading and no
decisions will be taken by the House after a First Reading debate.
Agreed to.
AMENDMENT OF ASSEMBLY RULE 109
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Madam Deputy Speaker, I move the draft resolution printed in my name on the Order Paper, as follows:
That the House resolves to amend Assembly Rule 109, specifically, Subrules (1) and (2), to read as follows: (1) Questions for oral reply by Ministers must be dealt with in accordance with a clustered system of government portfolios, as determined by the Chief Whips’ Forum from time to time, after consultation with the Leader of Government Business, and published in the Announcements, Tablings and Committee Reports.
2) The clusters rotate on a weekly basis, so that questions relating
to each cluster are answered in succession in accordance with the
agreed system (this rule remains subject to Subrules (3) and (4)).
Agreed to.
CONSTITUTIONAL RIGHT TO PROTEST
(Member’s Statement)
Mr H P MALULEKA (ANC): Madam Deputy Speaker, section 17 of the Constitution of the Republic of South Africa, Act 108 of 1996, says the following with regard to protest:
Everyone has the right, peacefully and unarmed, to assemble, to demonstrate, to picket and to present petitions.
This is a right enshrined in our Constitution and many South African patriots laid down their lives in order for all of us to be able to enjoy it. However, the recent developments regarding protests that have taken place in our country are in direct contravention of this noble section of our Constitution.
The ANC upholds the right of every citizen to protest for whatever reason. However, this right cannot be exercised at the expense of law-abiding citizens who have an equal right to safety. The ANC welcomes the decision taken by our government on Wednesday, 26 August 2009.
The Cabinet pronounced that law-enforcement agencies will not hesitate to take strong actions against those taxi operators who have threatened to disrupt with acts of violence the implementation of the Bus Rapid Transit system. It further said that threats of violence and actual violent conduct are viewed in a serious light and will not be tolerated.
The ANC calls on all our people to condemn in the strongest possible terms any unruly element which seeks to exploit the genuine concerns of our people to meet their own selfish ends. I thank you.
EXCESSIVE EXPENDITURE ON MOTOR VEHICLES BY SENIOR POLITICIANS
(Member’s Statement) Mr A C STEYN (DA): Madam Deputy Speaker, over the last number of weeks the excessive expenditure by some ANC Ministers, Premiers and MECs across the country on, particularly, vehicles, for use in execution of their duties, has led to outrage by the general public.
By contrast, the DA in the Western Cape provincial government has led by example. The Premier and MECs are using vehicles available from the government garage. In addition, the DA has put forward some austerity measures for consideration by the President, and launched a Wasteful Expenditure Monitor on 26 July.
I am therefore pleased to acknowledge that the DA’s oversight role in this regard and public pressure on such a wasteful expenditure has resulted in the cancellation of two new vehicles, a Mercedes Benz and a BMW, by the Deputy Minister of Human Settlements, the hon Z A Kota-Fredericks. She has instead chosen to retain the vehicles used by the previous Minister, Minister Sisulu.
In addition, the Minister of Human Settlements, Minister Sexwale, has chosen not to purchase any new vehicle, but to use his personal transport, and, to date, he has not submitted a claim for the official use of such transport. Naturally, not all Ministers are in the fortunate position to do this. However, both Ministers must be commended for heading the call to contain unnecessary and extravagant spending in the current economic climate. I call on other members of the executive to follow their example. Thank you. CLASHES BETWEEN SANDF AND POLICE
(Member’s Statement)
Mr L RAMATLAKANE (COPE): Madam Deputy Speaker, the recent events of the SANDF soldiers protesting, striking and rampaging through the Union Buildings, are a matter of great concern to the public, and should be to the members of this House.
Given the power of the Minister of Defence and Military Veterans, these events are as a result of her failure to act in line with regulations governing defence and be more sensitive to the issue raised by the soldiers.
Nonetheless, her failure is no excuse for the ill-discipline displayed by the soldiers who were tasked with protecting our Constitution and the people of South Africa.
The silence of the commander in chief of defence, President Jacob Zuma, is of concern. We want to hear from the commander in chief in this regard. Cope calls on the President and the Minister to meet with these soldiers and settle the issues that they have raised. We call on the soldiers to maintain the highest discipline.
GENDER DISCRIMINATION
(Member’s Statement)
Ms H H MALGAS (ANC): Deputy Speaker, it is for the first time that I am speaking in the national Parliament, but I am used to speaking wherever I go to.
This statement is on gender discrimination. Our struggle for national liberation has evolved to appreciate the real and potential role of women, and their liberation from patriarchy was and still is an integral part of this new democracy. The ANC was formed and evolved as part of progressive forces across the globe in the fight against colonialism, racism, poverty, underdevelopment and gender oppression.
However, recent developments, particularly in the province of the Western Cape, are bent on reversing the gains that the women of our country have made over the past few years. Immediately after the April general elections, the DA-led provincial government appointed males only to the provincial cabinet. [Applause.]
The Speaker of the DA-led Cape Town City Council recently made comments to the effect that female councillors had to cover up so that their male colleagues were not led into temptation. This comment by the council Speaker and the appointment of an all-male provincial cabinet, in many respects, is evocative of the situation of previous eras of patriarchal relations of power. Thank you. [Time expired.]
INTERVENTION IN ZIMBABWE BY PRESIDENT ZUMA’S
(Member’s Statement)
The HOUSE CHAIRPERSON (Mr M B Skosana) (IFP): Madam Deputy Speaker, the IFP commends President Jacob Zuma for the frank intervention in Zimbabwe. We also commend President Zuma for impressing on the three political parties involved in the SADC agreement on the unity government in Zimbabwe the urgency of a political settlement which these parties were responsible for establishing. It is not the fault of the leadership of the MDC that the Western governments are reluctant at this juncture to assist in the recovery of the ailing Zimbabwean economy and the lifting of sanctions against Zanu PF leadership, as we are made to believe.
The fact of the matter is that there are conditions which the unity government and, in particular, the leadership of ZANU-PF must attempt to satisfy. It is reported that the President of the USA, Barrack Obama, was willing to help Zimbabwe’s long-suffering people but not by empowering the forces of oppression - that was in the Cape Argus today. It is obvious that the US and other western governments insist on good governance and respect for human rights in Zimbabwe as one other condition. It is in the interest of successful regional economic integration and development that South Africa should continue to engage without pause all the leaders in Zimbabwe to promote, among other things, the imperative of involving the Zimbabwean civil society in the constitution-making process. An all-inclusive political dispensation is important to bring peace, stability, co-operation and development to Zimbabwe. I thank you. [Time expired.]
CONSUMER DEBT
(Member’s Statement)
Mr N M KGANYAGO (UDM): Madam Deputy Speaker, the UDM notes with dismay the latest reports on current consumer debt. It is reported that the National Credit Regulator has pegged the figure of consumers who are currently receiving debt counselling at almost 100 000.
Their collective debt totals R20 million, more than half of which relates to mortgages. It means that tens of thousands of households are in deep financial trouble and may lose their homes. What is of even greater concern is that there are predictions that the number of consumers under debt review may expand to 150 000 by the end of this year since an average of 10 000 applications are made every month.
The current court backlog due to legislative uncertainty has created a further problem which we hope will now begin to be resolved after the recent Pretoria High Court ruling on the matter. It is incumbent, though, on this House and the executive urgently to clear up any confusion and uncertainty that remain in the National Credit Act. In the meantime it is our duty as representatives of the people to raise public awareness about responsible financial behaviour. In this regard all of us should live and work in such a manner that we refrain from extravagance and conspicuous consumption. I thank you.
RURAL DEVELOPMENT, PARTICULARLY IN MUXIYANI VILLAGE IN GREATER GIYANI
MUNICIPALITY
(Member’s Statement)
Mr M E NCHABELENG (ANC): Madam Deputy Speaker, today South Africa has a caring government with housing system programme for the poor. With clinics being built close to where people live, households being connected to water and electricity, more people having access to telecommunications, over 400 families living in Muxiyani in the Greater Giyani Municipality will no longer be expected to travel long distances to fetch wood in order to cook.
Thanks to the electricity switched on in the village, the important turning point in the lives of the Muxiyani villagers is that 417 households will have electricity for the first time, with government spending almost R4 million to make this possible. As the ANC, we have known for a long time that the biggest casualties of lack of access to electricity in particular, are women, children, people with disabilities and pensioners.
The ANC considers rural development to be a central pillar in our struggle against unemployment, poverty and inequality. I thank you. [Applause.]
FURTHER EDUCATION AND TRAINING
(Member’s Statement)
Dr W G JAMES (DA): Madam Deputy Speaker, highly successful countries in the knowledge economy have up to 60% of the 18-to 24-year-olds participating in the college and university sector. In the case of Korea, it is 91%. The South African figure for 2007 is 16%. A desire in the short term on the part of our government is to get it beyond 20%.
About 2,8 million potential students in the age range of 18 to 24 are neither studying nor employed, and are not disabled. Of these, roughly 700 000 with Grade 12 are not studying, are unemployed and are not disabled. Of these collectively, approximately 1 million students can go into the college sector or what is often referred to as a further education and training sector. If that were to happen, our participation in the knowledge economy and in the university sector would improve radically.
If there was quality in the system, the contribution of the sector to our knowledge economy would vastly improve. There is a ready college level market on the supply side and the question is whether the further education and training colleges can respond quickly enough to absorb the students. [Applause.]
OUTSIDE INFLUENCES UNDERMINING SOUTH AFRICAN SOVEREIGNTY
(Member’s Statement)
Mrs C DUDLEY (ACDP): Madam Deputy Speaker, the ACDP is concerned about the undermining of the sovereignty of South Africa by outside interference. A monitoring committee in the UN has issued a document, General Comment No 20, demanding changes to our state’s Constitution laws and policy documents.
These are infringements of our democratic right to govern ourselves and have our children taught according to a South African curriculum. This infamous GC/20 instruction could be used to impose limitations on anything from sporting disciplines to family interactions and all religious people as it seeks to remove individual freedom.
It is the Netherlands government’s interference in our school system which seeks to instil in our children a theory - not a scientific law, a theory - and one which breaks four of science’s immutable laws of the universe, as a truth. They are investing R160 million in promoting the theory of evolution of which the world renowned scientist, Dr Colin Patterson, head of palaeontology at the British museum, states that there was not one such fossil for which one could make a watertight argument. It is for this nonviable premise that the Dutch seek to brainwash our children.
The ACDP condemns these incidents of outside interference in the strongest possible terms. We are particularly concerned for the SADC community and urge its leaders and our government not to give way by complying with any UN instruction that demands altering the country’s Constitution or to accept foreign grants that seek to promote teaching our children untruths. [Applause.]
THREE NEW SAPS EMERGENCY CALL CENTRES IN MPUMALANGA
(Member’s Statement)
Mr G D SCHNEEMANN (ANC): Deputy Speaker, the ANC proceeds from the premise that a better life for all also means an improvement in the safety and security of our citizens where they live and work. The Department of Police is setting up three new emergency call centres in Mpumalanga to improve the security of our citizens who live in that part of the country.
The new centres are aimed at improving efficiency and ensuring a quick response and dispatching of police officers to where they are needed. All three centres will run 24 hours a day and will be managed by dedicated and highly trained staff.
The ANC, working together with our people, will persist in ensuring that the fight against crime is intensified through the introduction of measures that will assist in reducing current levels of crime. I thank you. [Applause.]
NEW HEAD OF THE SOUTH AFRICAN NATIONAL AIDS COUNCIL
(Member’s Statement)
Mr M WATERS (DA): Deputy Speaker, the DA wishes to congratulate Dr Nono Simelela who takes over on her new appointment as head of the South African National Aids Council today. So far, we believe that she will bring new life to this largely ineffective body and be allowed to play a forceful role in our national aids campaign.
Dr Simelela was the first South African black woman to qualify as a specialist obstetrician and gynaecologist. She eventually rose to the position of Chief Director of the national HIV/Aids and TB programme in
- There she fought a desperate and isolated battle to lift former Health Minister, Manto Tshabalala-Msimang’s blanket of Aids denialism.
The fact that a national treatment programme eventually came into existence was partly due to the vigorous campaigns of the DA, the TAC and others, but also to Dr Simelela’s hard work and commitment when all the odds were against her. Thank you. [Applause.]
CONDEMNATION OF JULIUS MALEMA’S STATEMENT ON RAPE
(Member’s Statement)
Ms S P RWEXANA (COPE): Madam Deputy Speaker, Cope’s women’s forum condemns the statement made yesterday by the ANC Youth League President, Julius Malema, that he will not apologise to the complainant for the public statement he made about a rape case even if he is found guilty by the Equity Court.
We live in a country that has one of the highest rates of crime, rape and abuse against women. In South Africa most women are still trapped in abusive relationships. They have little or no say in matters relating to their sexuality and are victims of violence, rape, unwanted pregnancies, HIV and Aids. Therefore, we believe that statements which are damning, discriminatory and all aimed at reinforcing the strong stereotypes about women should not be tolerated.
The Congress of the People’s women’s forum denounces all forms of sexual violence and discrimination against women. We envisage a society where women will be able to walk freely in the streets with dignity and without fear. We, therefore, call upon all responsible organisations and free- thinking citizens to unite and condemn the statement made by Julius Malema.
Let us support and build solidarity for all women who are victims of any form of oppression. The Minister of Women, Children and People with Disability should inform the public and this House … [Time expired.] [Applause.]
MATERNAL, CHILD AND WOMEN'S HEALTH SUMMIT IN BOKSBURG
(Member’s Statement)
Dr S M PILLAY (ANC): Madam Deputy Speaker, The Freedom Charter commits the ANC to provide a preventative health scheme run by the state. It further commits the ANC to provide free medical care, hospitalisation for all, with special care for mothers and young children. On Tuesday 25 August this year, health workers gathered at the summit in Johannesburg to discuss women’s health with an emphasis on maternal and child health. The objective of the summit was to obtain consensus among health professionals on key bottlenecks that need to be overcome to improve healthcare; to obtain consensus on how to achieve the health-related Millennium Development Goals; and to agree on steps that need to be taken urgently to address the challenges we face to improve the health care we provide to the population, and thus provide hope that the health system can be strengthened in such a way that people would receive the type of health care they deserve when they are most vulnerable.
The hon Minister, Dr Motsoaledi, addressed the summit and reminded health care workers and professionals that their profession was a calling that demanded, passion, compassion, as well as dedication and that they should treat all people with love, honour and dignity. He further called on health workers and professionals to abide by this calling and to treat all patients with the dignity that they deserve.
In line with our Freedom Charter, improving the quality of health care is an integral part of the implementation of the National Health Insurance that we propose. In our divided and inequitable society, universal coverage is part of our mandate to bring about redistributive justice and to build a better life for all, and not just a particular few. Together we can do more! Thank you. [Applause.]
POOR SERVICE BY HOME AFFAIRS LEADS TO SUICIDE INCIDENT
(Member’s Statement)
Ms H N MAKHUBA (IFP): Hon Deputy Speaker, it is a right of all South Africans to have access to all types of enabling documents. All citizens are equally entitled to the rights, privileges and benefits of citizenship, as stated in our Constitution.
It is, therefore, shocking to hear about Sikhumbuzo Mhlongo, who committed suicide as he was denied the right to an ID by one of the Home Affairs officials. The IFP is encouraged by the swift action of the hon Minister of Home Affairs.
We hope that the country is moving away from the era of denial of existing problems in our system of governance. These incidents highlight an existing problem regarding the attitude of most of our public servants, who have a mentality that they are not serving, but doing South African citizens a favour.
The IFP applauds the Minister and calls upon all political parties to work together to stamp out the culture of corruption, entitlement and self- enrichment among most public servants, because their actions compromise government delivery. We convey our condolences to the Mhlongo family. I thank you. [Applause.]
COMPETITION AMENDMENT BILL SIGNED INTO LAW
(Member’s Statement)
Mrs P DE LILLE: Madam Deputy Speaker, I want to commend President Jacob Zuma for signing the Competition Amendment Bill into law, because now South Africa is in line with international standards. In a country where millions of our people live in dire poverty we, as lawmakers, cannot allow some businesses to prey on their vulnerability. It was because of this concern that the ID, two years ago, submitted the Private Member’s Bill to Parliament.
There has been much talk about the constitutionality of the Bill, with some saying that the President must take the Bill to the Constitutional Court. That is not the job of the President. Now that the Bill has been signed into law, any business can contest it in the Constitutional Court.
This is A defining moment in our battle to hold company directors criminally liable for anticompetitive behaviour. It marks the beginning of a new era of business accountability, and there is no reason why businesses and their directors should be left out of our national project to create a law-abiding society.
Over the past few years, directors of some of the biggest staple food suppliers have shown contempt for the ordinary consumer and the ID sincerely hopes that the amended Act will provide some justice and act as a deterrent. Thank you. [Applause.]
FURTHER EDUCATION AND TRAINING
OUTSIDE INFLUENCES UNDERMINING SOVEREIGNTY OF SOUTH AFRICA
(Minister’s Response)
The MINISTER OF HIGHER EDUCATION AND TRAINING: Madam Deputy Speaker, I’d like to respond to two matters, and one was raised by the hon Wilmot James. We do agree with him that, indeed, we have a big challenge in this country in terms of absorbing the millions of students aged between 18 to 24 who are neither at work nor in any education institution, nor in training, and who do not have any form of disability.
Our department has already made a very strong commitment to the prioritisation of expanding and building the capacity of Further Education and Training colleges.
However, this is building upon what the department has already done in terms of a three-year commitment to the recapitalisation of FETs between the years 2007 and 2009. It is also because of this that Cabinet took a decision that FET colleges must become a national responsibility, but, at the same time, without abandoning their responsibility to respond to regional and local needs. To this effect, the department has established a transition oversight committee to oversee the transfer of responsibility from the provincial to the national Department of Higher Education and Training, as well as six technical committees that have provincial representation.
We hope that the DA, as it recognises the challenges, will play a constructive role in supporting this effort of having at least a million students in FET colleges by 2014.
On the second matter, I’d like also briefly to say to the ACDP, that we don’t think it is very helpful to try and push us towards committing to teaching things about evolution because the ACDP’s stance, basically, wants us to teach our children against evolution in a manner that actually mimicks the right-wing church movement in the United States.
If we are to deal with this matter, we must open our children to all sorts of point of views, whether it’s evolution or other points of view, in a manner that is progressive and in line with our commitment to widening the horizons of our children rather than locking them into very narrow, right- wing religious discourses. Ngiyabonga. [Thank you.] [Applause.]
CONSTITUTIONAL RIGHT TO PROTEST
CLASHES BETWEEN SANDF AND POLICE
EXCESSIVE EXPENDITURE ON MOTOR VEHICLES BY SENIOR POLITICIANS
CONSUMER DEBT
(Minister’s Response)
The MINISTER OF SCIENCE AND TECHNOLOGY: Madam Deputy Speaker, the executive would agree with those hon members who have referred to the constitutional right of all South Africans to demonstrate and protest in a peaceful manner, and we believe it is the responsibility of both Parliament and the executive to uphold this right.
We do, however, agree with the expressions of concern at what we saw at the demonstration outside the Union Buildings by members of the SANDF last week, and I’m sure all hon members would agree that no person serving in the security services of our country should conduct themselves in that way. No one would support such conduct. Therefore it is vital that the Minister of Defence does indicate in very clear terms the expectations of our government and the people of our country with respect to the security services and their conduct in South Africa. They are charged both with upholding and respecting our Constitution and ensuring a safe environment for all in our country, and this is what Minister Sisulu is seeking to uphold in the steps that she has taken in the past few days.
With respect to the statement by the DA concerning expenditure on vehicles by members of the national executive, I think Cabinet has issued a statement in this regard and indicated, emanating both from the President and the entire Cabinet, that all of us must take steps to ensure that we spend national resources judiciously.
The statement also included an indication that no Minister had breached any of the rules related to the purchasing of official vehicles. [Interjections.] I think that is important. [Interjections.] No, no, no! And in fact this is something that the DA chooses to ignore, just as they wish to ignore the ANC’s statement about the gender neglect of appointing competent women in the DA to the government of the Western Cape. [Applause.]
We would indeed say that we expect women to continue to express disquiet and concern at this apparent statement that there are no talented women in the provincial legislature who are representatives of the DA. This is a most worrying statement to be made by any person living in South Africa today, and we hope that the DA will follow the example of the ANC and ensure that women enjoy equal opportunity for positions of leadership in South Africa. [Applause.]
Finally, Madam Deputy Speaker, we would certainly agree with the hon member of the UDM that more must be done to encourage our people to save. All of us, as members of Parliament, must do more to encourage saving and the reduction of debt, and to ensure that we have information programmes in our constituency offices so that the people of our country do understand how they can avoid getting themselves into a situation where they can no longer cope with debt.
We certainly will intensify the efforts of government at ensuring that we begin to provide solutions that address the absence of jobs for all our people, as my colleague Minister Nzimande has indicated. We will do this by addressing the matter of skills, but also by intensifying our action toward implementing our industrial development action plan, which seeks to build new industries and strengthen our productivity in terms of job creation and economic activity in areas currently neglected in the economy of South Africa. Thank you, Madam Deputy Speaker.
POOR SERVICE BY HOME AFFAIRS LEADS TO SUICIDE INCIDENT
(Minister’s Response)
The DEPUTY MINISTER OF HOME AFFAIRS: Thank you, hon Deputy Speaker. I want to thank the hon member from the IFP for the very constructive statement she made about the unfortunate incident at the Pinetown Home Affairs office. Indeed, we immediately dispatched a team of senior officials yesterday who are investigating this matter. We have instructed these officials to provide us with a report by Friday this week so that we can take drastic measures. I think the officials of the department involved in that brutality will learn a good lesson and that others who are also involved in such activities will also learn a good lesson. We are going to take drastic measures to ensure that such incidents do not recur in our department. Thank you very much. [Applause.]
COMPETITION AMENDMENT BILL SIGNED INTO LAW
(Minister’s Response)
The DEPUTY MINISTER OF TRADE AND INDUSTRY (Ms B M Ntuli): Thank you very much, Deputy Speaker. I want to agree with the hon member Patricia de Lille. Indeed the Bill that has now been signed into law will assist the Competition Commission to do its work better and smarter.
Many business managers are aware that there is collusion in their businesses, but they turn a blind eye because they know that no one will hold them accountable. This law is going to assist us in this regard. Thank you very much, hon member. [Applause.]
TAXATION LAWS AMENDMENT BILL
(Introduction)
The MINISTER OF FINANCE: Deputy Speaker, colleagues, Ministers and Deputy Ministers, hon members and young South Africans who are in the gallery, it gives me great pleasure to introduce the Taxation Laws Amendment Bill of
- These Bills contain tax proposals announced in the February 2009 Budget Speech by the previous Minister of Finance, and elaborated on in the 2009 Budget Review which he tabled during that speech.
For technical reasons, the amendments are split into two Bills - a money Bill, under section 77 of the Constitution, and an ordinary Bill, under section 75 of the Constitution.
Given the 2009 general elections and the subsequent convening of the fourth democratically elected Parliament, we decided to introduce only one set of taxation amendments this year. There will therefore be no Revenue Laws Amendment Bills in 2009. It is our view that we should, in future, continue to strive towards having only one set of major Taxation Amendment Bills each year, to allow more time for consultation and the preparation of these Bills.
Let me take a moment to speak briefly about where tax and the global economic crisis fit in with each other. The global crisis continues to weigh heavily on economies around the world, including our own. Budget deficits like our own have soared to unprecedented heights as tax revenue has fallen sharply.
As it stands today, South Africa is about R22 billion to R23 billion short of its current revenue target. Employment levels are falling in almost every country, including our own.
The 2009 Taxation Laws Amendment Bill contains tax measures announced in the 2009 Budget that, together with other aspects of the fiscal framework, provide support to the domestic economy through this extraordinary period in our history. This, if you like, is South Africa’s own stimulus package, which predated the crisis hitting our own economy. We had hoped at that time that South Africa would escape the economic crisis or, certainly, the worst of it, but although the economy continues to grow, it did so and does so at a slower pace than during the boom.
The first contraction in our economy was seen in the final quarter of 2008, when it contracted by 1,8%. Larger contractions have since been seen. These contractions have also been seen in other emerging market economies such as South Korea, Mexico and Thailand.
In South Africa we have responded by choosing to sustain growth in infrastructure spending, to support well-targeted industrial development programmes, to broaden social security benefits and to continue to invest in education, health and other public services. To put it more simply, despite the fact that we have falling revenues in South Africa, government has decided not to cut, but rather to borrow in a prudent way in order to meet our expenditure requirements. [Applause.]
Currently, our budget deficit estimate for 2009-10 stands at 3,8%, but when we deliver the Medium-Term Budget Policy Statement to you later in October, it certainly won’t be at the same level. Public sector borrowing requirements have increased sharply in line with the decisions that we have made and reflect our intention to ensure that we can maintain our current levels of expenditure.
The global downturn has been worse than we expected, and South Africa is now, as we all know, in recession for the first time in over 17 years. While there are indications that the South African economy might have reached the bottom of this sharp downturn, the road to recovery will be slow and it will be gradual.
Hon members might not have become familiar with the Vs, the Ws, the Us and the Ls. These are all the indicators that are used world-wide to begin to speculate on how this growth will pattern out and what form it will actually take. More recently, where there has been a recession, there has been talk of a W-shaped growth, where we see a slight improvement, but we then see another drop before there is an eventual improvement for the next few years. Therefore, the W has now become a lot more popular, if you like, in terms of what people or economists envisage over the next few years.
The past year has shown us that capitalism is prone to periods of excess and exuberance. One of the ongoing tasks of this administration is to ensure that the poor and vulnerable are protected from the effects of these boom-bust cycles. It is the poor and the vulnerable, who constitute the majority in every society, who suffer the most when bankers and others begin to take risks and engage in all sorts of creativity of the wrong sort at the wrong time.
It is in the rising numbers of unemployed that we observe the very real human cost of this economic crisis. In South Africa employment levels have fallen by 3,5%. In other words, approximately half-a-million working South Africans, who were in jobs a year ago, are no longer in jobs, and they and their families face the consequences of that.
Measures like the proposed training lay-off scheme that we have taken as government, provide a layer of protection for workers and give firms an alternative to retrenchments during the recession. The Expanded Public Works Programme, led by Minister Doidge, should help to provide additional job opportunities. For some economies, such as in Europe, wage moderation and firm-level flexibility have helped to keep people in jobs rather than out of jobs. Going forward, our economic growth path has to be a more labour absorbing one. Reducing unemployment is our single biggest priority in the decade ahead. For us to succeed here, we need a radical departure from business as usual. I hope that the House will engage with us as Ministers on how we should visualise the Business Unusual, if you like.
The public sector needs to create many more jobs, mainly through its infrastructure programme and through the delivery of labour intensive services, such as early childhood education and home-based care. The broader South African economy needs to become more competitive in its ability to grow exports to finance the consumption and investment needs of our domestic economy.
The world economy, as I have said earlier, is on the cusp of recovery, but it may be a weak one and, to be quite honest, no economist can tell us today whether there is a recovery on the way and, if so, whether it is a genuine or sustainable recovery. As South Africans, we need to find a sustainable path to renewal and economic development. There has been robust spending for many years by government in support of the broader renewal of our economy, community, public services and infrastructure. We need to ensure, as we are currently doing, that our economy is able to sustain that kind of spending.
A challenge for ourselves is to ensure the effectiveness of the services we provide and the efficiency in the expenditure that we incur. Our health, education, transportation, safety and security systems must help to solve the tough challenges faced every day by ordinary South Africans.
Over the next few years, we face the difficult challenge of doing more and better, but without additional resources. This will require a change in our leadership style, in organisational culture and in the structures of accountability in the public service.
President Zuma has taken the lead in calling for more effective service delivery and better performance by government institutions. It is up to all of us also to rise to this challenge.
Let me now turn – in that overall context of reduced revenue- sustaining current levels of expenditure – to how the 2009 Taxation Laws Amendment Bill begins to address some of the issues related also to revenue.
These laws deal with wide-ranging amendments to various pieces of tax legislation, including the Income Tax Act, the Value Added Tax Act, the Customs and Excise Duty Act and the Estate Duty Act. Some of the amendments that will be formally enacted in terms of these Bills have already taken effect, such as the increases in excise duties. So you now pay more for your cigarettes and alcohol than you did prior to the Budget! The fuel levies have also gone up, and the revised personal income tax tables for 2009-10 have also been implemented.
What are the changes that these Bills introduce for individuals that are in place already? For individuals, the most important amendment was the adjustment to the personal income tax thresholds, which resulted in tax relief for individuals estimated at R13,5 billion. We seem to have forgotten that this was our early stimulus to the economy because it was a huge risk to give a R13,5 billion tax cut at a time when revenue itself was looking very uncertain. I am sure that this tax relief for taxpayers has played an important role in helping South African citizens.
Other important amendments relate to the taxation of lump sum withdrawals from retirement savings before retirement and on retrenchment, especially in the current economic environment. A significant simplification of the tax treatment of lump sum payments from retirement savings upon retirement and preretirement lump sum withdrawals will be implemented as from this year. Without boring you with details, in essence there is a more gradual stepping up of the taxation that one is due for upon retirement and upon receiving lump sum payments which will very favorably look at the kind of pressure South Africans face. There are a whole lot of rules in the legislation which help us to govern this process.
Given the concerns about the plight of workers that are losing their jobs in the current environment and as part of the measures agreed on through the Nedlac process to alleviate the impact of the current economic crisis, the draft Bills propose that withdrawal from retirement funds on retrenchment will qualify for a R300 000 exemption, which is the same as that for retirement.
So until this change in the law comes about, retirement and retrenchment will still be treated on a different tax basis - retirement more favorably and retrenchment less favorably. These measures ensure that in the current economic climate, both of these phenomena are dealt with in the same way.
The second major progressive step for individual taxpayers is the amendment to the Estate Duty Act, which seeks to assist middle-income families and broaden the tax relief that some taxpayers could only access through advice from expensive tax planning experts. This amendment will allow the R3,5 million deduction for estate duty purposes to automatically roll over from the first deceased spouse to a surviving spouse or spouses.
The surviving spouse or spouses will therefore have access to a deduction of up to R7 million on the second spouse’s death. What this means is that we don’t have to get into very complex trusts and other forms of structures in order to benefit from estate duty provisions that will now be in our law. In order to improve the equity of the income tax system - and this is the third element - and to broaden the tax base, which is very important in our current climate, the tax treatment of travel allowances will be reformed. The deemed kilometre method for deducting travel expenses will be repealed with effect from 1 March 2010.
In essence, for many years, South Africans who did not use their vehicles for business purposes pretended that they used them for business purposes and derived tax benefits and deductions as a result. What this change will do is to take away that perverse incentive, and those who want the benefit of tax allowances for genuine business use of their vehicles will be required to maintain a logbook of the business kilometres they have travelled, pretty much like many members do. The pay as you earn, Paye, system for the travel/car allowances will be adjusted so that 80% of this allowance will be subject to Paye. The current level is 60%. I can inform the House that this is one of the more abused allowances in the tax system. By covering this loophole, there is going to be huge benefits in increasing the tax base.
What are the implications of the changes we suggest for the business community? In terms of business taxation, the focus of the Bills is on further refinements to the proposed dividends tax that will replace the secondary tax on companies, the tax relief for certified emissions reduction, CER, and the proposed tax incentives for energy efficiency savings by businesses.
Here we are sending an important message as South Africans to both ourselves and the international community that the tax system will begin to incentivise the right kind of emission behavior and disincentivise the wrong kind of emission behavior.
The Bills also refine tax incentives for venture capital companies - which is a serious deficiency in our system - and provide another opportunity for taxpayers to unwind legal entities that were set up to “house” residential properties to minimise certain taxes. You can see that we are very generous people. People have actually been mischievous in trying to place their properties in particular kinds of structures, which when they are unwound should actually be taxed.
But we are now saying we will give them a further break if they unwind those complex structures so that they can come into the normalcy of the tax system without incurring any penalties or any taxation. Perhaps, Mr Ellis, this is the wrong time for us to be generous.
On the tax administrative side, the provisional tax payment system is being more closely tailored to meet the expectations of different categories of taxpayers. An important element of this Bill is also the learnership tax incentive. This incentive to encourage employers to up-skill their employees through registered learnerships or apprenticeships is being streamlined and further enhanced. If an employee successfully completes a 12-month learnership, his or her employer will be able to claim an additional deduction of R60 000. This will result in a tax relief of R16 800 per employee for an employer registered as a company.
Where an employee successfully completes a three-year apprenticeship, the employer will be able to claim an additional allowance of R180 000 at the end of the third year, resulting in tax relief of R50 400 per employee. This again, in the context of the recession and the employment climate we have today, is yet another incentive for employers in South Africa to walk the extra mile with government in order better to prepare our workforce for better employment opportunities.
The sale of CERs, also known as carbon emission reduction credits will be exempt from income tax - yet another break for business.
The provisional tax system was tightened in 2008 to do away with the so- called “basic amount” and requires 80% accuracy in respect of the second provisional payment when compared to the final assessed tax due. This set of amendments and the one included in this Bill arise from the fact that many businesses gain from the provisional tax system.
They pay a minimal amount initially and wait for Sars to follow up, and if they don’t, they eventually pay a reduced amount. A new regime has been put in place to discourage this kind of behavior, but at the same time it recognises the difficulties that smaller businesses have faced as a result of the initial amendment. The subsequent amendment will now differentiate between small and large business taxpayers, but yet ensure that the system is fair.
The Bills also clarify provisions in respect of the principle of “pay now, argue later”. There has been much mischief and misinformation on this issue. I hope the revised legislation provides for clarity and fairness in this regard in accordance with existing case law and international experience.
What has tax got to do with recession? I want to make a simple point before I conclude. Government has become the guarantor of last resort all over the world. Had it not been for government in the US, for example, General Motors could have been completely bust. Had it not been for government in Germany, Opel would not be available for sale and secured in the way it has been. Similarly, government in South Africa has played an important role, either in infrastructure expenditure, the tax cuts we have given to individuals or in other provisions we have co-developed with labour and business. The importance of this Bill and its provisions is to secure the tax system to ensure that government still collects adequate amounts of revenue so that it can play this defensive role on behalf of society and ensure that South African business and the economy remain competitive.
Notwithstanding this objective, we regrettably find that there are still South Africans who don’t understand the current context or the current role that government has to play. They will take every advantage, both in South Africa and elsewhere in the world, to gain from the tax system. Currently, two senior Sars officials are participating in a global forum on this particular topic in Mexico, where tax administrations and treasuries are looking at various ways of firstly understanding the behaviour of taxpayers during climates like the current one and, secondly, sharing experiences on how we combat tax leakage from our systems.
In the South African system, domestic VAT remains a concern. Our VAT refund levels have been quiet, and there is a steady growth in the number of returns that have not been filed by businesses or that have been filed without payment. Taxpayers in South Africa will say they filed their return for VAT, but if they owe R10 000, they will hold the cheque back until Sars knocks on their door, and then they will pay their R10 000. They will use the R10 000 as a cash-flow mechanism during the period they are actually waiting for Sars.
All I want to do is take this opportunity to advise businesses that we will all be shooting ourselves in the foot by encouraging or engaging in this kind of behaviour, which is ultimately neither helpful to you or to the economy.
I would like to thank the chairman of the standing committee, Mr Mufamadi, for his leadership, and the members of the Standing Committee on Finance for their constructive role in processing this Bill. I hereby table the Taxation Laws Amendment Bill of 2009. Thank you very much. [Applause.]
Bill referred to Standing Committee on Finance for consideration and report.
CONSIDERATION OF LIST OF CANDIDATES RECOMMENDED FOR APPOINTMENT TO COUNCIL OF THE INDEPENDENT COMMUNICATIONS AUTHORITY OF SOUTH AFRICA
Mr I VADI: I am pleased to Table the report on the filling of the vacancy in the Council of the Independent Communications Authority of South Africa, Icasa. As the term of office of Mr Mthobeli Zokwe was terminated in June this year, the Portfolio Committee on Communications invited the public to nominate suitable candidates for the post. The committee received 86 nominations from the public. It eventually decided on interviewing nine candidates. Unfortunately, two candidates withdrew at the last minute.
Having conducted the interviews, two weeks ago, the Committee reports unanimously that the following two candidates, Mr Khulile Boqwana and Mr William Stucke be recommended to the Minister of Communications for appointment to the Council of Icasa. Of course, the Minister will have to decide on either one of the two candidates and refer the matter back to the House for a final decision.
Both Mr Boqwana and Mr Stucke are worthy candidates for appointment. Mr Boqwana has a Masters Degree in Business Leadership, a Bachelors Degree in Accounting Science and a Senior Teachers Diploma; Mr Stucke has a BSc Honours in Engineering and is a certified Electrical Engineer.
I wish to mention that the Committee is not satisfied with the overall performance of Icasa councillors – this doesn’t mean that we are going to dissolve the council as we did with the SABC Board, but I think it is a matter of concern that its performance is not up to standard.
The Committee is, continually, receiving negative feedback on administrative efficiencies within Icasa; the failure to process regulatory decisions on the basis of proper and legally defensible procedures; the absence of organisational cohesion between the councillors and the senior executive management; and we are receiving reports of a number of councillors undertaking international trips that have little or no bearing on their core responsibilities.
The Committee has also noted that in terms of section 6(a) of the Icasa Act, the Minister in consultation with the NA must establish a performance management system to monitor and evaluate the performance of Icasa’s chairperson and other councillors.
The performance management system involves certain key performance indicators as a yardstick for measuring the performance of the councillors; setting measurable performance targets; and establishing a procedure to measure and review the performance of each councillor at least once a year.
The evaluation of the performance of the chairperson and the councillors must be conducted by a panel constituted by the Minister in consultation with the NA; and a report by the panel must be submitted to the NA for consideration.
To the best of our knowledge, the former late Minister Ivy Matsepe Cassaburi had not established such a system. Consequently, Icasa councillors have not been fairly and properly evaluated although anecdotal evidence from the public suggests that the situation is less than satisfactory.
The Committee, therefore, in recommending the two candidates for appointment to the Council, urges the Minister to formalise the performance management system as a matter of urgency so that a discernible instrument is available to evaluate and assess the work of the Icasa councillors.
The Committee recommends that the report be approved by the House and the names of Mr Khulile Boqwana and Mr William Stucke are referred to the Minister for consideration. Thank you very much.
There was no debate.
Declaration of vote:
Mr N J VAN DEN BERG (DA): Madam Deputy Speaker, although the DA, with the help of the opposition parties, has reached an agreement on the naming of the two candidates to the Icasa Board, the DA has concerns.
The DA states it clearly that the candidate nominated by the DA, Mr William Stucke, has the ability to spark or uplift Icasa’s day-to-day business. The DA is concerned that Icasa is not doing business according to the law. Icasa has been criticised for continual delays in publishing regulations, drafting ill-thought-out and meaningless regulations, and its inability to keep qualified staff.
Secondly, why is Icasa taking so long to act on the high cost of interconnecting? Icasa needs a board that will ensure that those involved do what is expected of them. For example, Icasa has a database of frequency spectrum allocations, but it refuses permission to allow anyone to see it.
In the interviews of the Portfolio Committee on Communications with the candidates, it was stated that the database contained sensitive state information. However, military-assigned frequencies are more or less the same throughout the world, so there was no secret about that.
What are they really hiding? Why does Minister Siphiwe Nyanda not lower interconnecting fees using the policy directive that is given by the Electronic Communications Act which will effectively force Icasa to lower those fees?
Die onbeholpenheid van Okosa kan die inwerkingstelling na digitale televisie laat struikel. In ’n hofsaak wat op 15 September vanjaar aangehoor word, sê e.tv dat die implimentering van Okosa se regulasies vir Suid-Afrika se digitale oorskakelingsplan gestaak moet word, omdat dit die bedryf te veel geld sal kos.
In die dringende interdikaansoek sê e.tv die volgende, en ek haal aan:
Okosa regulasies word gekenmerk deur, onder meer, proseduriële onregverdigheid, ’n gebrek om relevante inligting in ag te neem, regsfoute, irrasionaliteit en onredelikheid.
(Translation of Afrikaans paragraphs follows.)
[Icasa’s ineptness could be an impediment to the implementation of digital television. In a court case to be heard on 15 September of this year, e.tv is saying that the implementation of Icasa’s regulations concerning South Africa’s conversion plan should be halted, because it will cost the industry too much money.
In the urgent interdict application e.tv says, and I quote:
Icasa’s regulations are characterised by, among others, procedural injustice, failing to take relevant information into account, legal errors, irrationality and unfairness.]
The DA wants Parliament to monitor Icasa … soos ons in Afrikaans sê: met ’n fynkam. [… as we say in Afrikaans: with a fine-tooth comb.]
Icasa cannot be allowed to drag their feet on important issues. I thank you. [Applause.]
Question put: That the following list of candidates be approved for consideration for appointment to the Council of the Independent Communications Authority of South Africa: Khulile Boqwana and Mr William Stucke.
Question agreed to.
The list of candidates accordingly approved.
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON DEFENCE AND MILITARY VETERANS - BUDGET VOTE NO 19
There was no debate.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Madam Deputy Speaker, I move:
That the report be adopted.
Motion agreed to.
Report accordingly adopted. CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON SPORT AND RECREATION - BUDGET VOTE NO 17
There was no debate.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Madam Deputy speaker, I move:
That the report be noted.
Motion agreed to.
Report accordingly noted.
CONSIDERATION OF FIRST REPORT OF JOINT RULES COMMITTEE, 2009
There was no debate.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Madam Deputy Speaker, I move:
That the report be adopted.
Motion agreed to.
Report accordingly adopted.
The House adjourned at 15:16. ____
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
FRIDAY, 28 AUGUST 2009
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
-
Assent by President in respect of Bills
1) Competition Amendment Bill [B 31D – 2008] – Act No 1 of 2009 (assented to and signed by President on 26 August 2009).
2) Films and Publications Amendment Bill [B 27F – 2006] – Act No 3 of 2009 (assented to and signed by President on 26 August 2009).
TABLINGS
National Assembly and National Council of Provinces
-
The Minister of Labour
a) Report and Financial Statements of the Local Government Sector Education and Training Authority (LG-Seta) for 2008-2009, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2008-2009 [RP 97-2009].
b) Report and Financial Statements of the Finance, Accounting, Management Consulting and other Financial Services Sector Education and Training Authority (FASSET) for 2008-2009, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2008-2009 [RP 91-2009].
COMMITTEE REPORTS
National Assembly and National Council of Provinces
- FIRST REPORT OF JOINT RULES COMMITTEE, 2009
The Speaker of the National Assembly and the Chairperson of the National Council of Provinces, as co-chairpersons of the Joint Rules Committee, present the First Report of the Joint Rules Committee, dated 25 June 2009, as follows:
The Joint Rules Committee, having on 18 June 2009 considered the establishment and non-establishment of joint structures, reports as follows: (1) Co-chairpersons for joint committees
The Joint Rules Committee decided that as a general principle joint
committees shall have co-chairpersons.
Recommendation
It is therefore recommended that, where applicable, joint committees
shall have co-chairpersons.
(2) Constitutional Review Committee
The Joint Rules Committee decided that the composition and party
breakdown of the Constitutional Review Committee in regard to the
Assembly component mirror the composition and party breakdown of
portfolio committees as follows: ANC 8; DA 2; Cope 1; IFP 1; and other
parties 2; and that the Council component be constituted as follows:
ANC 6; DA 1; Cope 1 and IFP 1, the party breakdown of the Council
component being subject to review.
Recommendation
It is therefore recommended that, in order to give effect to the
decision of the Joint Rules Committee, Joint Rule 98(1) be amended by
the deletion of the numbers in bold and insertion of the numbers
underlined:
98(1) The Joint Committee consists of [45] 14 Assembly members and
[24] 9 Council members.
(3) Joint Committee on Ethics and Members’ Interests
The Joint Rules Committee decided that the composition and party
breakdown of the Joint Committee on Ethics and Members’ Interests in
regard to the Assembly component mirror the composition and party
breakdown of portfolio committees as follows: ANC 8; DA 2; Cope 1; IFP
1; and other parties 2; and that the Council component be constituted
as follows: ANC 6; DA 1; Cope 1 and ID 1. The Joint Rules Committee
also decided that the rule dealing with the non-remuneration of the
chairperson and deputy chairperson be deleted.
Recommendations
It is therefore recommended that Joint Rule 122(1) be amended by the
deletion of the number in bold and insertion of the number underlined:
122(1) The Joint Committee consists of [18] 14 Assembly members
and 9 Council members.
It is further recommended that Joint Rule 123(2) dealing with the non-
remuneration of the chairperson and deputy chairperson be deleted.
(4) Joint Monitoring Committee on Improvement of Quality of Life and Status of Women
The Joint Rules Committee decided that since the Assembly had
established the Portfolio Committee on Women, Youth, Children and
People with Disabilities and since the Council had established the
Select Committee on Women, Children and Disabled Persons, Joint Rules
128 to 132 in regard to the Joint Monitoring Committee on Improvement
of Quality of Life and Status of Women were no longer required and
should be deleted.
The Joint Rules Committee further decided that references to the Joint
Monitoring Committee on Improvement of Quality of Life and Status of
Women in Rules 137A to 137F pertaining to the Multiparty Women’s
Caucus should be removed and that the above-mentioned Rules be amended
accordingly by the Joint Subcommittee on Review of the Joint Rules.
Recommendations
It is therefore recommended that –
(a) Joint Rules 128 to 132 be deleted; and
(b) as a result of this deletion, Joint Rules 137A to 137F in
relation to the Multiparty Women’s Caucus be amended accordingly
to remove all references to the Joint Monitoring Committee on
Improvement of Quality of Life and Status of Women and that the
matter of amending the Rules be referred to the Joint
Subcommittee on Review of the Joint Rules for drafting.
(5) Joint Monitoring Committee on Improvement of Quality of Life and Status of Children, Youth and Disabled Persons
The Joint Rules Committee decided that since the Assembly had
established the Portfolio Committee on Women, Youth, Children and
People with Disabilities and since the Council had established the
Select Committee on Women, Children and Disabled Persons, Joint Rules
132A to 132E in regard to the Joint Monitoring Committee on
Improvement of Quality of Life and Status of Children, Youth and
Disabled Persons were no longer required and should be deleted.
Recommendation
It is therefore recommended that Joint Rules 132A to 132E be deleted.
(6) Joint Monitoring Committee on Reconstruction and Development
The Joint Rules Committee decided not to operationalise Joint Rules
133 to 137 in regard to the Joint Monitoring Committee on
Reconstruction and Development, which had not been operationalised in
the Second and Third Parliaments.
Recommendation
It is therefore recommended that Joint Rules 133 to 137 be deleted.
(7) Oversight mechanism of Parliament
The Joint Rules Committee decided that the Joint Rules should be
reviewed in view of the provisions of the Financial Management of
Parliament Act, No 10 of 2009, which require that the composition of
an oversight mechanism of Parliament must be in accordance with the
Joint Rules of Parliament.
Recommendation
It is therefore recommended that the drafting of rules in regard to
the oversight mechanism of Parliament be referred to the Joint
Subcommittee on Review of the Joint Rules for processing. Report to be considered.
M V Sisulu, MP M J Mahlangu, MP Speaker of the National Assembly Chairperson of the NCOP
MONDAY, 31 AUGUST 2009
TABLINGS
National Assembly and National Council of Provinces
- The Speaker and the Chairperson
(a) Report and Financial Statements of the Office of the Public
Protector for 2008-2009, including the Report of the Auditor-
General on the Financial Statements and Performance Information for
2008-2009 [RP 159- 2009].
(b) Report on the Review of the Organisation and Post Establishment
of the Office of the Public Protector during 2008/2009.
- The Minister of Justice and Constitutional Development
(a) Report and Financial Statements of the Legal Aid Board for 2008-
2009, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2008-2009 [RP 112-2009].
- The Minister of Energy
(a) Report and Financial Statements of the South African Diamond
and Precious Metals Regulator for 2008-2009, including the Report
of the Auditor-General on the Financial Statements and Performance
Information for 2008-2009 [RP 132-2009].
(b) Report and Financial Statements of the National Nuclear
Regulator (NNR) for 2008-2009, including the Report of the Auditor-
General on the Financial Statements and Performance Information for
2008-2009 [RP 36-2009].
- The Minister of Trade and Industry
a) Report and Financial Statements of South African Bureau of
Standards (SABS) for 2008-2009, including the Report of the Auditor-
General on the Financial Statements and Performance Information for
2008-2009 [RP 142-2009].
b) Report and Financial Statements of Export Credit Insurance
Corporation of South Africa Limited for 2008-2009, including the
Report of the Independent Auditors on the Financial Statements and
Performance Information for 2008-2009.
(c) Government Notice No 743 published in Government Gazette No
32396 dated 17 July 2009: Standards matters in terms of the
Standards Act, 2008 (Act No 8 of 2008).
(d) Government Notice No 780 published in Government Gazette No
32443 dated 31 July 2009: Standards matters in terms of the
Standards Act, 2008 (Act No 8 of 2008).
e) Government Notice No 782 published in Government Gazette No 32443
dated 31 July 2009: Proposed amendment to the compulsory
specification for motor vehicles of category N1 in terms of the
National Regulator for Compulsory Specifications Act, 2008 (Act No
5 of 2008).
f) Government Notice No 783 published in Government Gazette No 32443
dated 31 July 2009: Proposed amendment to the compulsory
specification for replacement brake lining assemblies for road
vehicles in terms of the National Regulator for Compulsory
Specifications Act, 2008 (Act No 5 of 2008).
g) Government Notice No 784 published in Government Gazette No 32443
dated 31 July 2009: Proposed introduction of a compulsory
specification for single capped fluorescent lamps in terms of the
National Regulator for Compulsory Specifications Act, 2008 (Act No
5 of 2008).
h) Government Notice No 785 published in Government Gazette No 32443
dated 31 July 2009: Proposed introduction of a compulsory
specification for motor vehicles of category L in terms of the
National Regulator for Compulsory Specifications Act, 2008 (Act No
5 of 2008).
i) Government Notice No 786 published in Government Gazette No 32443
dated 31 July 2009: Proposed amendment to the compulsory
specification for motor vehicles of category M1 in terms of the
National Regulator for Compulsory Specifications Act, 2008 (Act No
5 of 2008).
j) Government Notice No 787 published in Government Gazette No 32443
dated 31 July 2009: Correction Notice: Compulsory specification
for lamp controlgear in terms of the National Regulator for
Compulsory Specifications Act, 2008 (Act No 5 of 2008).
k) Government Notice No 788 published in Government Gazette No 32443
dated 31 July 2009: Correction Notice: Compulsory specification
for electrical and electronic apparatus in terms of the National
Regulator for Compulsory Specifications Act, 2008 (Act No 5 of
2008).
l) Government Notice No 810 published in Government Gazette No 32467
dated 31 July 2009: Broad-Based Black Economic Empowerment in terms
of section 14 of the Broad-Based Black Economic Empowerment Act,
2003 (Act No 53 of 2003).
- The Minister of Labour
a) Report and Financial Statements of Department of Labour – Vote 15
for 2008-2009, including the Report of the Auditor-General on the
Financial Statements and Performance Information of Vote 15 for
2008-2009 and the Report of the Auditor-General on the Financial
Statements and Performance Information of the Sheltered Employment
Factories for 2008-2009 [RP 77-2009].
b) Report and Financial Statements of the Compensation Fund for 2008-
2009, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2008-2009 [RP 81-2009].
c) Report and Financial Statements of the Commission for Conciliation,
Mediation and Arbitration (CCMA) for 2008-2009, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2008-2009 [RP 33-2009].
(d) Report and Financial Statements of the National Economic
Development and Labour Council (NEDLAC) for 2008-2009, including
the Report of the Independent Auditors on the Financial Statements
for 2008-2009.
- The Minister of Public Enterprises
a) Report and Financial Statements of Department of Public Enterprises
– Vote 30 for 2008-2009, including the Report of the Auditor-
General on the Financial Statements and Performance Information of
Vote 30 for 2008-2009 [RP 206-2009].
National Assembly
- The Speaker
a) Report and Financial Statements of the Special Investigating Unit
(SIU) for 2008-2009, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2008-2009
[RP 214-2009].
b) Letter from the Minister of Finance dated 28 August 2009, extending
the date on which the relevant parliamentary committees, in terms
of section 4(2) of the Land and Agricultural Development Bank Act
(No 15 of 2002), may nominate candidates for appointment to the
board of the Land Bank to 15 September 2009.
Referred to the Standing Committee on Finance and the Portfolio
Committee on Agriculture, Forestry and Fisheries.
COMMITTEE REPORTS
National Assembly
-
Report of the Portfolio Committee on Energy on its Introductory Content-Based Workshop, 11-13 August 2009
-
Introduction
The Portfolio Committee on Energy in attempting to strengthen its collaboration with the newly formed Department of Energy, its entities and key-role players, held a two-day introductory workshop on 11-13 August
-
The separation of the two Departments (Minerals and Energy) also impacts on the knowledge base of the Members of Parliament to this new Committee. The Committee, in its efforts to enhance Members’ insights into the energy sector, held briefing sessions, introductory yet content-based in nature, which provided the appropriate introduction to key concepts and terminology in the energy sector. The collective of stakeholders, comprising the following contributed to the workshop: • The Department of Energy • Eskom Holdings Ltd • Pebble Bed Modular Reactor (Pty) Ltd (PBMR) • National Energy Regulator of South Africa (NERSA) • PetroSA • Energy Distribution Holdings (EDI) • South Africa Nuclear Energy Corporation (NECSA)
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Objectives of the workshop
The objectives of the workshop encompassed the following:
• To introduce, in general, Members of the Committee to the sector.
• To enhance members’ understanding of the operations of the newly
formed Department and strengthen the oversight capacity of the
Committee to deal with matters in this regard.
• To hear the Department of Energy on it Strategic Plan (2009-10/2011-
12)
• To assess the progress made, as well as challenges facing the energy
sector in the country.
- Summary of submissions
3.1 Briefing by the Department of Energy on its Strategic Plan 2009- 10/2011-12
The Department of Energy briefed the Committee on its Strategic Plan 2009- 10/2011-12 as tabled in Parliament, and referred to the Committee.
The Committee expressed its concern over the Department’s presentation, which the Members felt did not provide enough information on the Strategic Plan. There were further concerns with what the Members of the Committee saw as conflicting information, when the Department gave a briefing on the progress made with the setting up of the new Department of Energy. According to the presentation, the new Department will only become fully operational in March 2010. The Committee had previously been informed (Budget Vote briefings 2009) that this would happen no later than August 2009.
The Department was instructed to come back to Parliament on 26 August 2009 to brief the Committee on the Strategic Plan 2009-10/2011-12, as well as to provide clearer information on the restructuring. The Chairperson of the Portfolio Committee would raise this issue with the Minister of Energy.
3.2 Electricity Distribution Industry Holdings
3.2.1 Profile (Summary)
EDI Holding is fully-owned by the state. It was established in 2003 to restructure the electricity distribution industry in South Africa. The main object of the company is to restructure the electricity distribution industry and invest into financially viable independent Regional Electricity Distributors (REDs) in the country, in accordance with national government policy so as to ensure a more effective and efficient electricity distribution industry capable of providing affordable and accessible electricity to consumers. As at 2008, the revenue of the company stood at R42 billion, with 9.2 million customers, and a staff complement of 31 000. The presentation included the introduction of the company’s Board of Directors, as well as its Executive Committee.
3.2.2 Challenges facing the EDI The Committee was told of some of the challenges facing the EDI, which include:
• The current industry structure is highly inefficient owing to
fragmentation.
• There is an inequitable treatment of consumers across the country,
with over 2000 tariffs, which vary significantly.
• The inconsistent electrification performance.
• The slow and inconsistent roll-out of Free Basic Electricity (FBE).
• There is a worrying shortage of staff and skills.
• The electricity distribution grid has been put under pressure by lack
of investment and recapitalization of its ageing infrastructure.
3.2.3 RED Creation Progress (Highlights)
In October 2006, Cabinet approved the following:
• That a roadmap will be put in place to move from the current scenario
into the future industry scenario.
• That electricity distribution industry restructuring legislation will
be developed;
• A national electricity pricing system will be developed; and
• 148 (out of 187) municipalities have to-date signed the Accession to
Cooperative Agreement.
3.2.4 Legislative Update
A Parliamentary process to consider the Constitution Seventeenth Amendment Bill is imminent. The proposed Bill seeks to amend section 156 of the Constitution by inserting a new subsection in terms of which national legislation may be passed to further regulate the executive authority of municipalities in respect of local government matters listed in Part B of Schedule 4 and Part B of Schedule 5 of the Constitution. 3.2.5 Plans for immediate future
Plans for the immediate future comprise the following:
• Continuing to work with the Portfolio Committee on Energy to create an
enabling restructuring environment.
• To significantly improve the state of municipal readiness.
• Develop and refine solutions for stakeholder concerns on the basis of
which negotiations can be entered into and concluded.
• Continued stakeholder engagement to ensure that the restructuring
process is accelerated.
3.3 National Energy Regulator of South Africa (NERSA)
3.3.1 Profile (Summary)
The National Energy Regulator of South Africa was established on 1 October 2005 in terms of the National Energy Regulator Act (Act No. 40 of 2004) to regulate the electricity, piped-gas and petroleum pipelines industries. Its mandatory intent includes the implementation of energy legislation, regulations and implementation of rules efficiently and effectively. It is expected to proactively take necessary regulatory actions in anticipation of and in response to the changing circumstances in the energy industry.
NERSA has nine Regulator Members, five of which are appointed on a full- time basis and four on a part-time basis. These appointments are made by the Minister of Energy. It has nine subcommittees. The staff complement currently stands at one hundred and sixty eight (168). 3.3.2 Reflections on progress made in the last five years
Over the past five years, NERSA has made some progress in the three industries it regulates, and has grown as an organisation. The following are some of the highlights:
• The approval of the Renewable Energy Feed-In Tariffs (RETIF) and
guidelines.
• Completion of the licensing of the existing facilities in the piped-
gas and petroleum industries.
• The approval of the piped-gas Tariff Guidelines.
• The approval of the future Petroline tariffs for five years.
• As an organisation, the successful transition from the National
Electricity Regulator (NER) to National Energy Regulator (NERSA)
remains a landmark achievement.
3.3.3 Challenges
The organisation has faced some challenges in the three regulated industries. These include;
• Security of supply (electricity).
• Ensuring affordability of electricity to the indigent through Free
Basic Electricity and inclining block tariffs.
• The regulation of piped gas activities not specifically catered for in
the Gas Act
• The cost of investing in the gas industry.
• Security of supply of petroleum to the inland stream.
• Some of the processes are dependent on other role players and
therefore outside of the organisation’s control. For example, the
legislative process around the restructuring of the Electricity
Distribution Industry has not been completed, just as the Electricity
Regulation Act has not been promulgated.
• As an organisation, the recruitment and retention of staff remain
challenges.
3.3.4 Plans for the future
Some of NERSA’s plans (across all regulated industries) for the future comprise the following;
• The inclusion of Independent Power Producers.
• Finalisation of the restructuring of the EDI.
• Increasing the capacity from Renewable Energy sources.
• Licensing frameworks for CNG, LNG and other activities new to the
South African gas market.
• Monitoring the construction of large new infrastructure for Security
of Supply concerns.
• As an organisation, NERSA plans to revise and strengthen the
implementation of policies relating to recruitment, development,
retention and deployment of its human resources.
• Increasing NERSA’s profile for the benefit of the industry and its
customers.
3.4 Eskom Holdings Limited
3.4.1 Profile (Summary)
Eskom’s core business involves generation, trading, transporting and retail of electricity in South Africa, within the Southern African Development Community (SADC) countries and in the rest of African countries that are connected to the South African power grid.
Eskom is one of the top thirteen utilities in the world by generation capacity and among the top nine by sales. It generates approximately 95 % of electricity used in South Africa and 45% of electricity used in Africa. Its total assets are currently worth R171 181 million. The staff complement at Eskom stands at 35 404.
3.4.2 Special Highlights: Plans for the 2010 FIFA Soccer World Cup
The key installations for the 2010 FIFA World Cup lie within the host cities and are supported by the municipalities. As part of the strategy for this event, a dedicated executive focusing on 2010 has been formed. The Eskom 2010MW project has been launched, with a dedicated team consisting of subject matter and operational specialists put in place.
3.4.3 Progress made; and challenges faced
• 168 538 new connections were done in 2007/08.
• More than 3.6 million households electrified since 1991.
• To date, up to 98% of municipalities are active participants in the
Free Basic Electricity Roll-out strategy.
• Amongst the challenges over the years have been persistent policy
indecisions on new build for generation, ineffective industry
planning, and inefficient operational risk management and contingency
planning.
• These all resulted in a low reserve margin, an unstable grid and
inevitably, the power cuts experienced in recent times.
The industry has witnessed a fundamental shift in capacity the past few years, from abundant and cheap electricity to a constrained reserve margin and increasing cost.
3.4.4 Build Programme
Eskom’s Build Programme will seek to provide power to all of South Africa, create jobs in the total value chain, play a role as a major economic stimulus and ensure adequate power for the future. There are indications that it will be the most ambitious infrastructure investment the country has ever undertaken.
3.4.4.1 Funding Requirements
A review of the funding model is required to address the shortfall needed to fund the capital programme. The new plant is to be funded from retained earnings, new equity and borrowings. A significant shortfall on funding the capital programme exists (R248 billion required).
3.4.4.2 Key conclusions
Eskom submitted that they believe there is emerging consensus that the new build programme should continue. The platform for a funding model to be developed should be created, so as to achieve success. This will be a success as Eskom will work with all stakeholders to resolve the funding model.
3.5 PetroSA
3.5.1 Profile (Summary)
The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd (PetroSA) is South Africa’s national oil company. Operating in eight African countries, it produces diesel, gasoline, kerosene and specialty products. It also produces 5 % of South Africa’s fuel needs.
Its focus is on assisting Government meet security of supply, as well as facilitating skills development in the energy sector.
PetroSA was formed in 2002 from a merger of Mossgas (Pty) Limited, Soekor E & P (Pty) Limited, and parts of the Strategic Fuel Fund Association. It currently employs 1800 people.
3.5.2 Current challenges
Amongst the number of challenges the company faces, are:
• The current global recession
• Declining feedstock reserves
• Oil price fluctuations
• Low funding availability
3.5.3 Future Plans
3.5.3.1 Vision 2020
PetroSA plans to be a sustainable, fully integrated, commercially competitive national oil company supplying at least 25% of South Africa’s national liquid fuel needs by the year 2020.
Vision 2020 involves a portfolio of projects that aim at ensuring sustainability of current operations, security of supply through growth, and working towards industry transformation.
3.5.3.2 Some highlights on the key strategic focus areas
• Sustainability Initiatives – Project Jabulani
• Growth Initiatives – Project Umthombo [a 400kbbl/d refinery that will
help meet the growing South African demand till 2021].
3.6 South African Nuclear Energy Corporation (NECSA)
3.6.1 Profile (Summary)
A level 3 BBBEE contributor, NECSA has a total staff complement of 1870. The Nuclear Energy Policy of South Africa mandates NECSA to, amongst other responsibilities, promote nuclear energy as an important electricity supply option, creation of framework for utilization of nuclear energy, contribution to the country’s social and economic growth, reduction of greenhouse gas emissions as well as building the uranium value chain.
3.6.2 Strategy • NECSA is currently in discussions with existing enrichment companies to examine the feasibility of establishing a plant in the country as a joint venture with the corporation. • The Energy Policy directs NECSA to embark on a programme to achieve local conversion, enrichment and fuel capabilities, to ensure security of supply. • Value addition to uranium.
Costs
• Centrifuge enrichment plant (3 MSWU per annum) R15 billion.
Construction time; 5 years.
• Conversion plant (6000 tpa) R2 billion. Construction time; 2 years.
• Fuel fabrication plant (1000 tpa) R 2 billion. Construction time; 3
years.
3.6.3 Some key new projects
• National Nuclear Manufacturing Centre aims to facilitate industrial
localization in Eskom nuclear new build.
• Nuclear Skills Development Centre provides training to NECSA,
stakeholders and contractors in the nuclear and energy fields.
• The Nuclear Technologies in Medicine and the Bioscience Initiative
(NTeMBI) seeks to facilitate innovative application of nuclear
technologies in medicine and the biosciences through research capacity
development and knowledge transfer.
• There is a proposed NECSA Visitor Centre Plan (2008-2011), which will
offer a nuclear science education exhibition and more.
3.7 Pebble Bed Modular Reactor (Pty) Limited (PBMR) 3.7.1 Profile (Summary)
The PBMR was established in 1999 with the intention to develop and market small-scale, high temperature reactors both locally and internationally. When Eskom stopped funding the company in 2003, the government took over the responsibility in 2004. Government holds 83% of the shares at PBMR.
3.7.2 Some challenges: Lessons were learnt
• Up until recently, there had been a lack of coordinated planning and
understanding of which infrastructure was needed for a nuclear build
programme, which created unrealistic expectations on schedule.
• No maturity or readiness of national environment to host a nuclear
build programme, with the Department of Energy’s implementation of the
SA nuclear policy only coming in June 2009.
• There is a need to learn from international programmes, in Europe and
the United States – consortium approach.
• There is also a need to clearly define roles and responsibilities
between departments and role players.
• Regulatory and legal frameworks must be strengthened.
3.7.3 New PBMR strategies
• Change in product configuration – process heat and electricity
generation.
• Nuclear Licensing – new process for South Africa, agreed with the
National Nuclear Regulator.
• The company is now positioned to be South Africa’s Nuclear Engineering
Design Authority.
• Necsa is now involved in a joint venture with the other role-players
to operate fuel plant at Pelindaba.
• A Customer Consortium with PetroSA, Sasol, BHP Billiton, Anglo,
ArcelorMittal and Royal Bafokeng established.
- Overview of outcomes
4.1 Department of Energy
• The Committee expressly voiced its concern that the Department had
made a briefing that was not noteworthy.
• The seemingly conflicting information (to what was told to the
Committee on 9 and 10 July 2009) on the progress made in setting up
the new Department of Energy also troubled the Committee.
• The Department was then requested to come back with a new presentation
on the week of 24-28 August 2009.
• The Department must brief the Committee (during the month of
September) on the Regulations on LP Gas, published for comment in
2007. This process has taken too long, and serious efforts must be
made to promulgate the regulation soon.
4.2 EDI Holdings
• The company continues to engage the private sector on the concept of
Independent Power Producers.
• A skills development forum within the distribution industry will be
established in order to consolidate strategies for the recruiting,
retaining and mentoring of employees. A skills Indaba with the
Parliamentary Portfolio Committee will be considered so as to seek
solutions on these challenges.
• Municipalities and current distributors remain responsible to revamp
the ageing infrastructure. They should be held to account, as some do
pass the buck and shift this responsibility.
• The legislative process about to begin, that of the [Seventeenth]
constitutional amendment, will ensure that the implementation of the
REDs takes off in earnest.
• The lack of gender parity on the Board of the organisation was of
concern to the Members. The Chairperson of the Portfolio Committee
will engage the relevant people, whilst the Chairperson of the Board
was requested to discuss this with the Minister of Energy.
4.3 Nersa
• There is plenty of room for improvement as far as information
dissemination strategies employed by Nersa are concerned. More must be
done to ensure that advertisements calling for public comments on
tariff applications reach as many people as possible, especially those
outside of metropolitan areas and the poor.
• There remains a persistent perception that what Eskom requests in
tariff increment is always granted by the regulator without vigorous
and well informed enquiry.
• The draft Regulation on LP Gas was published for public comments in
2007, and awaits promulgation. See instruction to the Department of
Energy under 4.1
• The Committee still reserves the right to hear the public views on
tariff hikes before or after applications are brought to the
regulator. The Committee can do this without interfering with the work
or mandate of the regulator.
• The Committee would consider hosting a lecture, or a series of these,
on transformative practices in the electricity industry, for the
benefit of Members.
4.4 Eskom
• Members expressed concerns on a number of issues regarding Eskom, from
the cost containment strategies (e.g. short term use of coal) to
moneys owed to Eskom by other countries connected to the South African
grid.
• Eskom’s representative was tasked with taking the questions back to
Eskom management. The Committee resolved to invite Eskom back to
Parliament for further engagement on these and other issues.
4.5 PetroSA
• Project Umthombo will create jobs in the Eastern Cape, but will
benefit other regions as the company will scout for skills.
• The project will contribute about R1.5 billion in company taxes,
annually, an obvious benefit for the country’s economy.
• The recent much publicised issue surrounding PetroSA’s Risk Manager is
before the courts. His utterances in the media are however,
regrettable.
4.6 Necsa
The Committee will consider the joint invitation from Necsa and the PBMR to visit the working sites, for Members to understand the operations of the two organisations. 4.7 PBMR
The Committee will in the near future invite the PBMR to brief it further on its operations. The Committee will also consider the joint invitation from Necsa and the PBMR to visit the working sites, for Members to understand the operations of the two organisations.
- Strategic Oversight Focus Areas (Committee) – 5- year period
• To promote the design and implementation of broad based sector or
industry empowerment programmes with clearly defined targets based on
agreements between stakeholders.
• Assess the impact of the Energy Efficiency Strategy of 2005.
• Restructuring the fragmented electricity distribution industry.
• Achieving universal access to electricity.
• Monitor progress on the utilization of LPG.
• Assessing the extent of investment and progress on the utilization of
clean energy sources.
• Facilitate the review of the Energy Policy.
• Assess the extent of transformation in the nuclear industry.
• Assess the safety levels of electrical installations.
• Private sector participation in the electricity industry (Independent
Power Producers).
• Monitor the implementation of the Energy Act, 2008.
• Engage stakeholders on investments in clean technology (curbing carbon
emissions).
• Assess Nuclear Policy.
- Conclusion
The Committee will continue to invite the entities to engage them on the issues raised as well as others. Visits to some of these entities will be conducted. The Committee declared the workshop a great success.
TUESDAY, 1 SEPTEMBER 2009
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
- Draft Bills submitted in terms of Joint Rule 159
(1) Taxation Laws Second Amendment Bill, 2009, submitted by the
Minister of Finance. Referred to the Standing Committee on Finance
and the Select Committee on Finance.
- Introduction of Bills
(1) The Minister of Finance
(a) Taxation Laws Amendment Bill [B 10 – 2009] (National
Assembly – proposed sec 77)
Introduction in the National Assembly (proposed sec 77) and
referral to the Standing Committee on Finance of the National
Assembly, as well as referral to the Joint Tagging Mechanism
(JTM) for classification in terms of Joint Rule 160, on 1
September 2009.
In terms of Joint Rule 154 written views on the classification
of the Bill may be submitted to the JTM within three
parliamentary working days.
(b) Taxation Laws Second Amendment Bill [B 11 – 2009]
(National Assembly – proposed sec 75) [Explanatory summary of
Bill and prior notice of its introduction published in
Government Gazette No 32527 of 27 August 2009].
Introduction in the National Assembly (proposed sec 75) and
referral to the Standing Committee on Finance of the National
Assembly, as well as referral to the Joint Tagging Mechanism
(JTM) for classification in terms of Joint Rule 160, on 1
September 2009.
In terms of Joint Rule 154 written views on the classification
of the Bill may be submitted to the JTM within three
parliamentary working days.
TABLINGS
National Assembly and National Council of Provinces
1. The Speaker and the Chairperson
(a) Report and Financial Statements of Parliament of the Republic
of South Africa, Vote 2, for 2008-2009, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2008-2009.
-
The Minister of Labour a) Report and Financial Statements of the Unemployment Insurance Fund (UIF) for 2008-2009, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2008-2009 [RP 82-2009].
b) Report and Financial Statements of the Forest Industries Sector Education and Training Authority (FIETA) for 2008-2009, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2008-2009 [RP 93-2009].
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The Minister of Trade and Industry
a) Report and Financial Statements of the National Credit Regulator (NCR) for 2008-2009, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2008-2009 [RP 154-2009].
(b) Report and Financial Statements of the Industrial Development Corporation of South Africa Limited (IDC) for 2008-2009, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2008-2009.
(c) Report and Financial Statements of the National Lotteries Board for 2008-2009, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2008-2009.
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The Minister of Human Settlements (a) Report and Financial Statements of the Rural Housing Loan Fund (RHLF) for 2008-2009, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2008-2009.
(b) Report and Financial Statements of the Social Housing
Foundation (SHF) for 2008-2009, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information for 2008-2009.
(c) Annual Review of the National Urban Reconstruction and Housing
Agency (NURCHA) for 2008-2009.
- The Minister in The Presidency (Mr O C Chabane)
(a) Report and Financial Statements of the Media Development and
Diversity Agency (MDDA) for 2008-2009, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2008-2009.
National Assembly
-
The Speaker
(a) Report and Financial Statements of the Public Service Commission (PSC) – Vote 9 for 2008-2009, including the Report of the Auditor- General on the Financial Statements and Performance Information of Vote 9 for 2008-2009 [RP 195-2009].