National Assembly - 07 June 2002
FRIDAY, 7 JUNE 2002 __
PROCEEDINGS OF THE NATIONAL ASSEMBLY
____
The House met at 09:02.
The Chairperson of Committees 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 R P Z VAN DEN HEEVER: Chairperson, I shall move on behalf of the ANC:
That the House -
(1) notes that the DA is now calling for elections in the Western Cape, in the wake of allegations of corruption bedevilling this party following the revelations by the German fugitive, Jurgen Harksen;
(2) further notes that the UDM and the ACDP are reported to be supporting the call for fresh elections;
(3) believes that the call for new elections is a ploy by the Democratic Party to divert public interest from its inability to deal with corruption within its ranks;
(4) expresses concern at the deafening silence of the UDM and ACDP in condemning corruption within the DA and
(5) calls on the DP/DA to deal effectively with allegations of corruption within its ranks.
[Applause.]
Mnr A J BOTHA: Mnr die Voorsitter, hiermee gee ek kennis dat ek namens die DP by die volgende sitting van die Huis sal voorstel:
Dat die Huis -
(1) die Metro Polisie van Kaapstad gelukwens met die prestasies wat hulle bereik het met die bekamping van misdaad in die kort tydjie wat hulle bestaan;
(2) die DA gelukwens met die implementering van hierdie beleid van munisipale polisiëring wat die lewensgehalte van inwoners verbeter en investering en werkskepping aanmoedig; en (3) die ANC, in veral die geteisterde Johannesburg, aanmoedig om van die DA leiding te neem in hierdie verband sodat ook die inwoners van Johannesburg die vrugte mag pluk van goeie regering. (Translation of Afrikaans motion follows.)
[Mr A J BOTHA: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DP: That the House -
(1) congratulates the Metro Police of Cape Town on their achievements in the fight against crime during their short existence;
(2) lates the Democratic Alliance on the implementation of this municipal policing policy which has improved the quality of life of inhabitants and encouraged investment and job creation; and
(3) encourages the ANC, especially in the afflicted Johannesburg, to follow the lead of the Democratic Alliance in this regard, so that the residents of Johannesburg may reap the benefits of good governing.]
Mr B M DOUGLAS: Chairperson, I shall move on behalf of the IFP at the next sitting of the House:
That the House -
1) notes with regret and concern remarks made by the MEC for education
in the Western Cape, Mr André Gaum, in the Cape Times of today,
referring to recalcitrant teachers and those objecting to sign
attendance registers as miscreants ... [Interjections.]
Yes miscreants - the Bosman Afrikaans-Eng dictionary explains the
word ``miscreant'' as ``laag, ongelowig, ellendig''.
(2) urges the Minister to withdraw this unfortunate and deplorable description of professional people and to apologise to them forthwith and without delay; and
(3) further encourages teachers to be punctual, accountable and conscientious in the noble task bestowed upon them.
Mr D S MAIMANE: Chairperson, I shall move on behalf of the ANC:
That the House - (1) notes that former President Nelson Mandela will be awarded the Franklin Delano Rooseveldt Freedom Medal in recognition of his contribution to the freedom of speech and religion;
(2) believes that former President Nelson Mandela, his comrades, the ANC and the people of South Africa made a significant contribution in the struggle for the realisation of the freedom of speech and religion; and
(3) congratulates former President Nelson Mandela on receiving this award.
[Applause.]
Mnr J SCHIPPERS: Voorsitter, hiermee gee ek kennis dat ek namens die Nuwe NP by die volgende sitting van die Huis sal voorstel:
Dat die Huis -
(1) kennis neem dat polisiemoorde vir die eerste vyf maande van 2002 met 31% afgeneem het, vergeleke met dieselfde tydperk verlede jaar;
(2) verder kennis neem dat die uitspraak verblydend is, want-
(a) tussen 1994 en 1999 is ongeveer 1 411 polisiebeamptes, met ander
woorde sowat 235 polisielede per jaar, vermoor, terwyl lande
soos Nieu-Seeland en Australië minder as vyf polisiemoorde per
jaar het; en
(b) dit dui daarop dat die spesiale direktoraat wat binne die SAPD
se misdaadvoorkomingsafdeling tot stand gebring is, se maatreëls
vir die voorkoming van polisiemoorde en -aanvalle vrugte afwerp;
(3) ‘n beroep doen op die Minister van Veiligheid en Sekuriteit, asook die polisiekommissaris, om voort te gaan met hulle pro-aktiewe optrede om die veiligheid van ons polisiebeamptes te verseker; en
4) vra dat die swaarste strawwe vir diegene wat hulle aan sulke
lafhartige optrede skuldig maak, opgelê moet word. (Translation of Afrikaans notice of motion follows.)
[Mr J SCHIPPERS: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the New NP:
That the House -
(1) notes that police murders for the first 5 months of 2002 declined by 31% compared with the same period last year;
(2) further notes that this finding is heartening, because -
(a) between 1994 and 1999 approximately 1 411 police officials, in
other words about 235 police members per annum, were murdered,
while countries like New Zealand and Australia have fewer than 5
police murders per annum; and
(b) this indicates that the measures by the special directorate
established within the SAPS's crime prevention section on the
prevention of police murders and attacks are bearing fruit;
(3) appeals to the Minister of Safety and Security, as well as the police commissioner, to continue with their proactive actions to ensure the safety of our police officials; and
(4) requests that the heaviest sentences be imposed on those who are guilty of such cowardly action.]
Mr D G MKONO: Chairperson, I shall move on behalf of the UDM at the next sitting of this House:
That the House -
(1) notes that the Department of Social Development will pay half a billion rands in backpay to more than 350 000 beneficiaries in the Eastern Cape over the next four months;
(2) further notes that this will at long last address the concerns of hundreds of thousands of beneficiaries of pensions and social grants, some of whom have been neglected since 1998;
(3) acknowledges that the administrative problems and sloppy legislation
that led to beneficiaries being neglected was indeed, as described by
a judge gibberish'' andmeaningless’’;
(4) calls on the Government to improve delivery of constitutionally guaranteed services, and to avoid the unseemly and wasteful occurrence of being taken to court by desperate people to enforce their rights. Ms N M TSHEOLE: Chairperson, I shall move on behalf of the ANC:
That the House -
(1) notes that the Cabinet endorsed a new agreement for the Southern African Customs Union, SACU, last week;
(2) further notes that this new agreement will bring SACU in line with other multilateral organisations like the European Union as well as the World Trade Organisation;
(3) believes that the signing of this agreement reflects the commitment of the ANC-led Government to strengthen co-operation with Southern African countries for economic development and prosperity, and to move back the frontiers of poverty in the region; and
(4) welcomes the endorsement of a new agreement for the Southern African Customs Union by the democratic Government. [Applause.]
Mnr J P I BLANCHÉ: Mnr die Voorsitter, hiermee gee ek kennis dat ek namens die FA by die volgende sitting van die Huis sal voorstel:
Dat die Huis -
(1) kennis neem dat die Minister van Onderwys se oogmerk is om toegang tot Suid-Afrika se tersiêre inrigtings te verhoog ten einde koste- effektief te raak met die belastingbetalers se geld;
(2) nogtans bekommerd is en kennis neem dat daar onvoldoende aandag gegee is aan die belange van die onderskeie taalgroepe wat deur hierdie inrigtings bedien moet word;
(3) voel dat die Suid-Afrikaanse taalgroepe, soos Afrikaans en die tale van swart bevolkingsgroepe, daardeur benadeel sal word, en dat ons dus nie sal voldoen aan die belofte vervat in die Suid-Afrikaanse Grondwet nie; en
(4) derhalwe die Minister versoek om wyd te raadpleeg alvorens hy hierdie beleid implementeer. (Translation of Afrikaans notice of motion follows.)
[Mr J P I BLANCHÉ: Mr Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the FA:
That the House -
(1) notes that the Minister of Education’s objective is to increase access to South Africa’s tertiary institutions in order to become cost-effective with the taxpayers’ funds;
(2) is nevertheless concerned and notes that insufficient attention has been given to the interests of the respective language groups which have to be serviced by these institutions;
(3) feels that the South African language groups like Afrikaans and the languages of the black population groups will be disadvantaged in this way and that we will therefore not fulfil the promise contained in the South African Constitution; and
(4) consequently requests the Minister to consult broadly before he implements this policy.]
Dr S E M PHEKO: Mr Chairman, I give notice that I shall at the next sitting day of the House move:
That the House -
(1) notes -
(a) that the PAC is deeply concerned about the introduction of the
first genetically engineered staple crop to our country;
(b) that this is making our people the guinea pig in a dietary
experiment of unprecedented proportions, as consumers will eat
untested and unlabelled staple crop;
(c) that the PAC holds that the introduction of the first
genetically engineered staple crop will benefit only the GE
industry and not the poor consumers who may ultimately suffer
serious and incurable diseases; and
(d) that food solutions in our country as elsewhere in the world lie
in creating sustainable agricultural and economic development;
and
(2) therefore supports a five-year freeze on the production of all genetically modified food until scientifically tested and certified safe.
Mrs B M NTULI: Chairperson, I shall move on behalf of the ANC:
That the House -
(1) notes that the conference of parties to the Convention on International Trade in Endangered Species of Wild Fauna and Flora, CITES, will take place in Santiago in November 2002;
(2) further notes that the ANC-led Government intends to request the uplisting of the endangered Cape Parrot to appendix 1 of the Convention, which would mean that no commercial trade in the species will be allowed; and
(3) applauds the intention of the South African Government to request CITES to grant abalone Appendix 3 status of the Convention, that will force compliance by all signatory countries to CITES to prevent and restrict any further exploitation of this valuable environmental asset internationally. [Applause.]
Mr R JANKIELSOHN: Chairperson, I hereby give notice:
That the House -
(1) notes -
(a) that the Basotho National Party have not yet accepted the
results of the election in Lesotho;
(b) that Lesotho is experiencing chronic food insecurity and famine;
(c) that the possibility of political instability due to these
factors has an impact on cross-border crime;
(d) that the SAPS do not have the capacity to adequately deal with
this problem; and
(e) that the Minister of Defence wants to withdraw South African
troops protecting South African citizens on the border with
Lesotho while deploying troops in Burundi to protect VIP's; and
(2) calls on the Government to ensure that all possible steps are taken to protect South Africans and their property first before deploying troops abroad.
Mrs L R MBUYAZI: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the IFP:
That the House -
(1) congratulates the Nelson Mandela Metropole, Eastern Cape, for being the cleanest metropolitan area, Newcastle, in KZN as the cleanest transitional council and the Klein Karoo in the Western Cape for being the cleanest district council in the ``Cleanest Town Campaign’’ launched by the Department of Environmental Affairs and Tourism;
(2) realises that each of these councils have received a R1 million as a prize and thus compliments the Department of Environmental Affairs for initiating this campaign;
(3) wishes these councils well as they contemplate on how they will spend such a prize on improving the lives of the people they serve; and
(4) requests all other towns to emulate these councils in order to protect the environment, and thus improve the health of their people. [Applause.]
Mrs M S MAINE: Chairperson, I shall move on behalf of the ANC:
That the House -
(1) notes the plea of Ms Reneilwe Kaelo, a ten-year-old girl from Mailakgang Primary School in Mafikeng, North West, to world governments attending the World Summit on Sustainable Development in Johannesburg later this year about her serious concerns on environmental matters such as air pollution and the implementation of waste control methods for reduction of waste through recycling and reuse;
(2) congratulates Ms Reneilwe on attending the International Children’s Conference on behalf of South Africa in Canada recently; and
(3) congratulates the youth of South Africa on the important role they are playing in the protection of our environment for future generations through their dedication, persistence and leadership. [Applause.]
Mnr A Z A VAN JAARSVELD: Voorsitter, hiermee gee ek kennis dat ek namens die Nuwe NP by die volgende sitting van die Huis sal voorstel:
Dat die Huis -
(1) met kommer kennis neem dat sowat vyf miljoen kinders landwyd honger ly, omdat hulle nie geregistreer is nie, en derhalwe nie toegang kan kry tot ‘n maandelikse toelaag nie;
(2) verder kennis neem dat hierdie onaanvaarbare situasie veroorsaak word deur administratiewe struikelblokke en ‘n gebrek aan interdepartementele samewerking;
(3) ‘n beroep doen op die Departemente Maatskaplike Ontwikkeling, Staatsdiens en Administrasie, asook Binnelandse Sake, om ‘n gekoördineerde poging aan te wend om hierdie probleem aan te pak, en om ‘n taakgroep saam te stel wat spesifiek sal fokus op die registrasie van kinders om die verkryging van hierdie toelae te bespoedig; en (4) glo dit is ‘n skande dat so baie van Suid-Afrika se kinders honger ly - ‘n bord kos is ‘n reg en nie ‘n voorreg nie. (Translation of Afrikaans notice of motion follows.)
[Mr A Z A van JAARSVELD: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the New NP:
That the House -
(1) notes with concern that nearly 5 million children throughout the country are starving, because they have not been registered and consequently cannot gain access to a monthly grant;
(2) further notes that this unacceptable situation is being caused by administrative impediments and a lack of interdepartmental co- operation;
(3) appeals to the Departments of Social Development, for the Public Service and Administration and also of Home Affairs to make a co- ordinated effort in addressing this problem, and to put together a task team which will focus in particular on the registration of children in order to expedite their obtaining this grant; and
(4) believes it to be a disgrace that so many of South Africa’s children are starving - a plate of food is a right and not a privilege.]
Mr S ABRAM: Chairperson, I give notice that I shall move at the next sitting of the House:
That the House -
(1) notes the acute shortage of water and the deplorable state of infrastructure in the Sekhukhune area, which impacts negatively on delivery of essential life-saving services to the Saint Ritah and Jane Furse Hospitals; (2) also notes that public buildings such as the multipurpose centres are inadequately resourced and ill-equipped; and
(3) calls on the Government to implement evaluation and monitoring mechanisms to ensure delivery by third tier authorities, thereby assuring a quality life for all. [Applause.]
Mr K MOONSAMY: Chair, I give notice that on the next sitting day shall move on behalf of the ANC:
That the House -
(1) notes statements by the Minister of Education, the hon Kader Asmal, that ``the Government may have to resort to a quota system if higher education institution do not meet their targets for admission of black students’’;
(2) believes that this statement is a reflection of the slow pace of transformation in historically white institutions of higher education, especially on their admission policies and the composition of their student body; and
(3) calls on the historically white institutions to accelerate the pace of transformation to enable them to reflect the population demography of South Africa. [Applause.]
NATIONAL ASSEMBLY GROUP ON AFRICAN UNION TO CONFER WITH NCOP WORKING GROUP
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I move without notice:
That the House, subject to the concurrence of the National Council of Provinces, resolves that the National Assembly Working Group on the African Union confer with the National Council of Provinces Working Group on the African Union. Agreed to.
CONGRATULATIONS TO SPRINGBOK RUGBY TEAM
(Draft Resolution)
Mr D H M GIBSON: Chairperson, I move without notice:
That the House -
(1) congratulates Bob Skinstad on his reappointment as captain of the Springboks, and all of his team members on their selection to play for our country; and
(2) wishes them every success in the test against Wales on Saturday.
Agreed to.
GOOD WISHES TO BAFANA BAFANA
(Draft Resolution) Mr M J ELLIS: Chairperson, I move without notice:
That the House -
(1) sends its support and best wishes to Bafana Bafana in their crucial World Cup match against Slovenia on Saturday; and
(2) assures each member of the team that our nation is with them as they take the field.
Agreed to.
SUSPENSION OF RULE 253(1)
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I move draft resolution printed in my name on the Order Paper, as follows:
That Rule 253(1) be suspended for the purposes of conducting the Second Reading debates on the following Bills: (a) Constitution of the Republic of South Africa Amendment Bill [B 16 - 2002] (National Assembly - sec 74);
(b) Constitution of the Republic of South Africa Second Amendment Bill [B 17 - 2002] (National Assembly - sec 74);
(c) Local Government: Municipal Structures Amendment Bill [B 22 - 2002] (National Assembly - sec 75);
(d) International Criminal Court Bill [B 42 - 2001] (National Assembly - sec 75); and
(e) Insolvency Amendment Bill [B 14 - 2002] (National Assembly - sec 75).
Agreed to.
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON COMMUNICATIONS ON
ELECTRONIC COMMUNICATIONS AND TRANSACTIONS BILL
Report adopted without debate.
ELECTRONIC COMMUNICATIONS AND TRANSACTIONS BILL
(Second Reading debate)
The MINISTER OF COMMUNICATIONS: Mr Chairman, honourable House, today marks the dawn of a new epoch that will be characterised by the legal use of electronic communication and transactions by South Africans from different walks of life. Because of the complicated nature of the subject matter of this Bill and the divergent views on the issue, the process took a different route to the normal. Instead of formulating a draft policy, various stakeholders were involved in the drafting of a discussion document, which was formally launched to obtain further input, which then informed the Green Paper.
This paper was followed by an e-law conference held in April 2001, because we recognised that this Bill was introducing a new area of jurisprudence to which the legal fraternity had to be exposed and educated about. After the e-law conference, a committee of stakeholders presented the outcome of the conference to the Minister. Based on the recommendations received from the conference, we then drafted the Bill.
To ensure that those traditionally excluded from drafting laws were involved and that policy would find expression in our legislation, we selected a group of black men and women lawyers to join the legal drafting team, thus empowering them, not only with skills and understanding of legal drafting, but also with the ability to understand the content and the challenges of electronic communication and transactions.
The Portfolio Committee on Communications held public consultations last month. Fifty-nine submissions were received from local business, labour and community organisations, international investors and foreign governments. Five student interns, three women and two men, assisted in analysing these submissions. The experience gained by these interns, not only in terms of this work, but also in terms of experiencing parliamentary processes and dealing with parliamentarians, has been an eye-opener for all of them. I believe that they are sitting in the gallery over there. Maybe they will show themselves.
I wish to acknowledge them and thank them for the good work they willingly and faithfully did. I think when we see such young people with that kind of enthusiasm, we know that South Africa can be proud of our youth. [Applause.]
Through these consultations and the rigorous exchange of views with various stakeholders, we succeeded in drafting this Bill, which all South Africans can be proud of.
The debate on the Bill also took place in the media, with various commentators, editors and journalists raising a wide range of issues for consideration. In some of these media reports, the main contention seems to have been that the private sector expressed reservations with regard to the powers of the Minister, as outlined in the Bill. Today I wish to assure all South Africans that there is no intention whatsoever to control the use of electronic commerce in the country, as only the issues pertaining to security and the promotion of universal service have been delegated to the Minister.
While the nature of e-government and e-commerce requires flexible legislation, we believe that it is the responsibility of the government of the day to ensure that transactions are conducted in a secure environment. At the same time, Government has an inalienable mandate to create the necessary conditions for the majority of our citizens, particularly the most disadvantaged, to participate in e-government and e-commerce.
On the current debate on our proposal for the establishment of a domain name agency, I wish to indicate that the involvement of all stakeholders in the control and the management of country domain names is something that is being considered across the globe. It is not unique to South Africa.
The sometimes hysterical and irrational debate on the issue of the domain name, and especially Mr Lawrie’s outbursts, are indicative of mindsets that have not yet come to terms with the democratic Government in existence today, especially because it is representative of the majority of our population. Why else would someone who is rational suggest that the proposition we made to appoint a board through a public process is flawed and believe that his self-appointment is better, on the basis of no facts whatsoever, than the appointment of a board by a Minister representing the Government elected by the majority of South Africans? [Applause.]
This lack of rationality is even more puzzling given the fact that the Internet Corporation for Assigned Names and Numbers, ICANN, which is a global agency responsible for the management of the world’s domain names, has been calling for a new public-private partnership. Its president, Stuart Lynn, said in his report:
Experience has shown that the influence, authority and close co-operation of government is essential to accomplish ICANN’s mission.
I can only ask Mr Lawrie and some of his supporters - I can hear some of them towards my left here: Where have you been? Wake up, the Internet world is reforming!
The ICANN President’s Report further acknowledges that governments play a unique role in representing the broad public interests of their populations. So far, ICANN’s existing structures have not engaged the attention, commitment and support of governments to the necessary degree.
The experience of many developing countries is that preparations for international negotiations by developed countries these days see national delegations with representation from both government and the private sector. This is necessary because treaty making, trade and standard setting agreements are entered into by governments, and not by the private sector. And that is the reason we have moved this way.
As John Okpaku says:
The state, therefore, acts as a diplomat, advocate, protector and defender, while the corporate acts as an operator, a researcher and implementer.
We need each other. There is no doubt about that!
This democratic state is ready and able to rise to the challenge, ensuring that top-level domain names can be delivered by ICANN, which wants to meet two main mandates by assuring DNAs interoperability and stability; and secondly, delegating through a framework of responsible agreements nontechnical policy matters to politically accountable local, meaning national organisations, wherever feasible.
Therefore, in line with this thinking from ICANN, we have proposed that we ensure the effective management of the country’s domain names by establishing a section 21 domain name agency. A board of directors comprising representatives of various stakeholders - Government, the private sector, academia, the community, etc - will be appointed to oversee the work of the agency.
As South Africans we must, therefore, consider ourselves fortunate because we have been able to proactively develop an inclusive mechanism for the domain name governance as outlined in the Bill.
Access to markets is a priority area for Nepad, as is also ICT. This Bill will, therefore, clearly help to speed up this access if we implement access to ICT infrastructure as outlined in our telecoms policy. Other key areas of the Bill include the maximisation of benefits through the participation of empowerment groups and small, medium and micro enterprises. SMMEs will be able to forge global relationships with trading partners anywhere in the world. It is our responsibility, all of us in this House, to inform and educate our constituencies about the advantages of ICTs as a tool for development and e-commerce as a means of access to markets.
The Bill allows for various mechanisms, including the national e-strategy, that must be implemented to promote effective participation in e-commerce by people from disadvantaged communities. For the e-commerce legislation to make impact of sustainable economic growth, all South Africans should become active participants in electronic communication and transactions.
Legal certainty is given by the Bill by ensuring that electronic communication and transactions are recognised by the law. With a legal certainty that the Bill creates, we expect an unprecedented growth in electronic commerce transactions.
The establishment of the accreditation authority will deal with the design and development of procedures, systems and standards to be utilised in accreditation. These will include accreditation criteria, expected service levels, monitoring, audits, suspension and revocation of accreditation, feedback systems and administration, etc.
The establishment of a cryptography register, which is an automated computer system that will allow providers to register their cryptographic technology, is also included in this Bill. Law enforcement to prevent cyber offences through the appointment of cyber inspectors is catered for. For the first time, we will have dedicated people to monitor our electronic systems against criminal activities.
The SA Post Office has been identified as the preferred authentication provider, because of its infrastructure and extensive work. We have already embarked on mechanisms to improve the effective and efficient management of the Post Office.
In order for us to reap the benefits being brought about by the Electronic Communication and Transactions Bill, I invite all hon members to accept it, thereby paving the way for the President to use an electronic signature to sign this law into effect. This will be a historic event indeed. I will see hon members in cyberspace. [Applause.]
Ms M SMUTS: Mr Chairperson, the hon the Minister once said something charming about South Africa and the Internet. She said that if we did not join the dot-com revolution we would be dot dead.
Only this Monday she was hosting an ICT summit in Johannesburg aimed at expanding the economy. But on the same day in Cape Town, the ANC put through a Bill which fails to avert the danger of losing South Africa’s major connection to the Internet on which most of the e-commerce and electronic communications depend, in the first place.
It would be fruitless to discuss the few sound chapters in the Bill, while this question remains unresolved. The sheer schizophrenic unreality of legislating for something that one is killing off in the same Bill is quite unparalleled in my parliamentary experience.
Now, I wish to put the following question to the hon the Minister because, in theory and in convention, she carries the political accountability for the policy and the law that she tables. Is it the Minister or her director- general who wants to nationalise the domain name authority? Who has landed us in this spectacular situation where the vast majority of Internet connections into and inside South Africa could shut down? Because under ICANN rules, the administrator and the Internet-user community must agree before redelegation of the country-code top-level domain and its subdomains to a new administrator can occur.
Did the Minister know the following things: That Mr Mike Lawrie set up the ``za’’ namespace in 1990, and has run it on his own for no gain whatsoever; that in 1998, at his request, the Internet society set up a committee to start drafting proposals for a new and more inclusive administration; that the director-general was invited to join, and apparently accepted; that the director-general did not attend a single meeting, nor send an alternative during the three years of drafting; and that the director-general, instead of joining the new section 21 company, namespace, which was being created, drew up in an allegedly secretive fashion, a proposal for a R24 million body? That attempt was abandoned after an outcry.
I presume the hon the Minister does know about the next grab, Chapter 10 of this Bill, which simply nationalises domain-name administration. Why would anyone, at a time when Government claims to be liberalising telecoms, want to nationalise a function which is simply a kind of cyber version of an old fashioned telephone exchange? This is a question to which we could get no rational answer.
There is only one possible answer, and that is empire-building and a mindset bent on control, which, I must say, is all the more worrying because the Bill here reveals so much, let us call it, fascination with security and intelligence matters which are beyond this Ministry’s ambit. [Interjections.]
Now, no international equivalent could be found for the declaration and control of private databases. Does the hon the Minister really think that her department can tell the JSE and its linked London counterpart how to manage their databases, to secure the integrity of their data, and what access she will allow? Does she really think that?
No international equivalent could be found either for the director- general’s new cyber inspectors, flashing certificates as they surf the web for wickedness and auditing other people’s databases for compliance with the Minister’s standards and prohibitions. And as they issue orders to cryptography and authentication providers, who must now register, two other empires are created for the department.
The compromise of a panel to appoint the board is nonsense in a section 21 company. It is nonsense that regulations have to be written at all, let alone with ministerial approval. But the biggest nonsense of all is the allegation made, first by the director-general and then by Minister Essop Pahad, that Mr Lawrie wants to control the domain-name authority on his own. The exact opposite is true: Government expropriated the existing administrator and the proof is here for all to see, in Bill 8 of 2002 as tabled. [Applause.]
Mr N N KEKANA: Chairperson, I think I could just leave my speech and react to what Ms Smuts said. This is information fantastic of the first order. In the first place, for the record, Name Space is not a section 21 company. It is not registered. She knows it very well, yet she is misinforming the whole country. It is not. [Interjections.]
Secondly, this is not nationalisation. We are freeing the Internet control from an individual. We are talking about an individual here. On Wednesday, the Business Report published a beautiful picture of this relaxed hon member, Dene Smuts, and I am sure that she was very pleased with it. It was one of those official portraits that she had sent to the newspapers. I have served with her for eight years in this portfolio committee, but let me assure the House that her calm and collected portrait is by no means a reflection of her conduct in the committee. Recently she has become - and she said it now - the self-proclaimed spokesperson of Mr Mike Lawrie, the current dot ``za’’ administrator. However, she has done his cause no justice, as her recent utterances are merely indicative of the magnitude of the DP’s crisis, which is even affecting her participation in the committee. Her conduct and irrationality here are one good example. If her conduct is anything to go by, then liberalism in this country should be ashamed to be associated with the DP. [Interjections.]
Is it not puzzling that the DP will not only side with, but also encourage somebody to threaten the entire country by pulling the plug on the Internet? And this simply because of a difference of approach on administration of a domain name, which is not even their property to start with. Given the DP’s record of inconsistency, perhaps these days they are contemplating changing from liberalism to anarchism, for Ms Smuts to act as the spokesperson of Mr Lawrie is enough to convince everyone and every Internet user that the South African domain name should be freed from the political influence of the DP. [Interjections.] This becomes even more necessary after the intelligence scandal in the Western Cape. It is clear that the liberalism of the DP is being radically unmasked for what it is: shallow, conservative, reactionary and racist. [Applause.] The DP’s position in our committee and the behaviour of their spokesperson demonstrate that they have very little interest in the growth of the Internet in the country. They have no interest whatsoever in what the Bill states in its objectives, namely the promotion of universal access, primarily to underserviced areas. The Internet cannot belong to a single person. It is a national asset which every South African who wishes to, should be able to access.
The Bill before the House seeks to free the Internet from being the sole domain of an individual with such heavy political backing. Let us pause for a second. Let us not allow the DP to detract from the contribution of our own South African Internet pioneers, ie Mr Lawrie and others, by making this issue a political hot potato.
Indeed, we want to take this opportunity to state for the record that Mr
Lawrie has made a contribution as an administrator of the za'' name
space. We hope that when he retires or by own admission, ends his career,
he will leave behind a legacy. He should not only hand over the
administration of dotza’’ but also allow the next generation to benefit
from the wealth of his experience. We are keenly aware of his voluntarism
and recognise his participation as the administrator of the ``za’’ domain.
We would like to thank him for this. [Applause.]
The Bill endorses some of the issues that he and others have raised in the public submissions, namely that not more than one person should be involved in the decision as to how to deal with the various``za’’ issues; that accountability to Internet users in the country is important; and that the free flow of ideas of experts in the field of domain administration, including a dispute resolution mechanism, should be found. These issues are all addressed in the Bill.
Contrary to the DP’s propaganda carried by some newspapers, the final version of this Bill is a product of extensive consultation between our committee and the domain name representatives that stayed throughout, and we would like to thank them for being there all along until midnight on Monday. The Internet is an interconnected system of networks which connects computers in homes and offices in what Negroponte termed ``virtual reality’’. It belongs to all citizens of the world. It also belongs to the public and the private sector in our country, which represent a vast percentage of our citizenry. As the ANC, this is our point of departure.
This Bill recognises the need for public-private partnership in encouraging the growth of the Internet. This principle was brought to light by ICANN, when it confessed that the original concept of conferring Internet naming and address allocation to a purely private sector body based on consensus and consent has been shown to be impractical.
We have amended the Bill to chart a middle road between two extreme positions, perhaps, neither of which on its own serves the best interests of the internet. It is clear that it would not be advisable to have what is called a traditional government approach or, on the other hand, a purely private-sector-driven model of domain naming and allocation.
The traditional Internet community must admit that the escalation of the internet challenges both the management and co-ordination style of the traditional Internet brotherhood located at different tertiary institutions. Worldwide there are disputes and a huge demand for the domain names by different sectors such as business, culture and community groups. There are millions of South Africans who would love to have their names, culture and other personal identities registered by the domain administrator.
But where will they find this administrator? Will the current administrator be capable of coping with such a demand and resolve any dispute which might arise? A Business Day editorial even declared, and I quote: ``Control of domain names cannot belong to a selected group of people who happen to be largely white.’’ We concur with this observation.
Change is imperative. We need a well-balanced public-private partnership. We need a stable, representative and democratic model of domain naming and allocation in our region. The Bill introduces what we believe to be the best model - a sector-driven model - a public-private partnership. Our South African model takes into account the need for minimal regulation that will not stifle creativity and innovation, whilst at the same time being responsive to the demands of society.
The growth of the Internet is important for our economy and the realisation of our national goals. A speedy allocation of addresses to users across South Africa will not only empower people, but also increase business opportunities for the private sector. It was recently reported that the growth of the Internet drove the South African online shopping industry to about R162 million. This is a mere 0,08% retail market share of R188 billion and demonstrates a huge potential for growth. According to World Wide Worx, there are about 215 online traders active in South Africa, and this figure is set to rise.
This Bill certainly creates a secure enabling environment for online transactions. Furthermore, the increased competition in the provision of telecommunication services is ultimately set to drive down telephony costs, which will, in turn increase online activity.
It appears to be widely accepted that internet growth in the country has slowed down since the dotcom bubble burst. I will argue, however, that this is is not entirely accurate. Over the past eight years Government has been working steadily to create an enabling environment in communities, schools and tertiary institutions. Consider for a moment the roll-out of Public Internet Terminals in communities, which provide free e-mail and Internet services, the roll-out of computers, as well as connect schools and tertiary institutions to the internet.
Statistically, any service or product which relies on a mainly white high- income group is bound to reach saturation, sooner rather than later. Just like in the advertising industry, the online trader and the traditional Internet community in our country must understand that growth and business lie in understanding the culture and social pattern of the majority of South Africans, who happen to constitute more than 90% of the population, the black people of this country.
Statistics of both Statistics SA and SAARF show that there is a significant increase in spending power and disposable income of black people. The more telephone connection we have, the more we improve the standard of living of all South Africans and the more people have disposable income, the more people will have access to the Internet. Hence there is a direct link between telephone connections, the standard of living and Internet density. Every citizen, when connected, requires a high level of online security and trust to feel confident about conducting … e-business.
We need legal certainty. We need to inspire public confidence and trust in the electronic communication and transaction. We need to encourage trade and business. We need to ensure the realisation of e-government, that, indeed, Government departments provide service online. It is our responsibility to provide protection for consumers and to guarantee the privacy of critical data held by all kinds of institutions.
Allow me to ask hon members one or two questions: How secure are their medical records held by medical aid providers? How secure is their personal information held by Government institutions and many other service providers?
We are all accustomed to a paper environment where private files gather dust perhaps in a room under lock and key. Similarly, the network and on- line environment requires its own lock and key. This Bill provides that on- line lock and key.
The clause dealing with critical databases gives the Minister the responsibility of prescribing minimum standards in the general management of, access to, and transfer and control of critical databases. Information held by critical databases must be under software-enabled lock and key. It would be irresponsible for Government to allow a state of on-line anarchy and legal uncertainty to continue.
With regard to the registration of critical databases, the committee amended the Bill to guarantee that the contents of critical databases shall not be contained in the register, nor shall such information be made public. The protection, management and control of critical databases will improve public confidence in the Internet and on-line services. In all the pieces of legislation we pass, we are wary of stifling innovation.
In order for us to travel in the fast lane of the information superhighway, we will need to get past the entry barriers, cross the digital divide and encourage as many South Africans as possible to connect to the Internet.
There is a natural suspicion of anything new and unknown. Do members remember when ATM cards were first introduced? There was a great deal of suspicion and discomfort on the part of banking clients. They only felt comfortable with and confident about the paper-based bankbooks, but today things are different. Essentially, we have thus moved from a paper and human teller, from a card and electronic agent called an ATM to, currently, on-line banking. Today it is estimated that there are at least 400 000 South Africans using on-line banking.
Telkom has to address the issue of the low bandwidth because there are increasingly more complaints about the limited size of the telecom path.
I would like to take this opportunity to welcome the out-of-court settlement of the tariff dispute between Telkom and the regulator, Icasa. This Bill before Parliament today is a historic piece of legislation. It will begin to make sense of the cyberworld, the world of the Internet, and, once it is signed into law all South Africans will benefit from this Bill. This Bill will make us engage globalisation and take advantage of the benefits of a connected world of computers.
I would like to thank members of the committee, the state law advisers, the committee section and the department for working tirelessly to pass this piece of legislation. We would also like to thank the many stakeholders for making submissions to the committee. We received many written submissions from a wide range of Internet users, from the JSE to the credit bureau, to the banking councils and even from the US government and the British Chamber of Commerce.
Finally, we value the contribution of the industry. Their well-considered presentations, which helped to improve the Bill, have made our work very easy. And, of course, I would like to call on the traditional Internet community in our country to accept the Bill as a framework from which all other laws will be drafted and passed. We have a piece of legislation that will ensure legal recognition and the functional equivalence between electronic and paper transaction. We support this Bill. [Applause.]
Ms S C VOS: Chairperson and colleagues, one of the many wonderful aspects of our new democracy is the public participation encouraged in the drafting process of our legislation. This speech is dedicated to Jason Nichols, B Sc computing science, who took the trouble to e-mail the communication’s committee with his views about this Bill, which he had clearly read. He said in part, and I quote:
Last time I checked, we had a free and fair democratic country. I think that this Bill makes it communistic. In Zim they are taking over land illegally. In South Africa they are taking over computer real estate. He continued …
Whether it is virtual or real it is the same concept. Data is data. It is zeros and ones. What order they are in has no meaning until you take it up on a contextual level. I think that the Government is naive in thinking that they will ever police such a Bill.
The good news for Mr Nichols is that the Bill we have before us today is a very much improved version and, yet again, the committee worked day and night to forge page after page of constructive amendments.
To say that tensions ran high at times, is to say the least. And once again I must thank our chairperson, Mr Nat Kekana, because he was exemplary in his attempts to be inclusive and to allow a multiplicity of voices and opinions to be heard. [Applause.]
Of course, the final product will probably still not meet with Mr Nichols’ approval, because we also have our problems with it. The IFP agrees with him that such is the speed of technological invasion today that sections will, indeed, as he has predicted, be almost impossible to enforce. In this regard, as he pointed out, the chapter on cryptography providers is problematic. This comment - about the takeover of computer real estate, as he put it - was no doubt in reference to the Government’s initial attempt to nationalise the dot-``za’’ name space domain name administration.
The compromise is now a public-private partnership, which is the best deal we could strike, given the department’s determination - which we understand
- that its governance must be more representative. The message to pale, white, male computer technogigs who currently dominate the ICT sector is to make new friends and to share their expertise fast.
Any piece of legislation is the sum of its parts, yet again the IFP finds itself in a situation of having to say yes, we will support the Bill. But public submissions to the committee this time weigh in just under 45kg, according to my bathroom scale. So the Telecommunications Amendment Bill, now an Act, is still way in the lead in the ``I have a sore neck from logging documents’’ department.
The telecoms gurus may well have the urge at the moment in the sheer volume of their contributions to the communications committee in past years, but I have a feeling that the passage of this Bill has, if nothing else, made the ICT sector wake up and realise the value of them ensuring hands-on involvement in parliamentary processes.
The intellectual weight and depth of their contributions were quite staggering and if anything, were proof of the critical socioeconomic role of this sector in the world today. The time, thought, and expertise, let alone the consultancy fees placed at our disposal, played a crucial role in our deliberations.
As enabling legislation, this Bill, by its very nature, is highly technical and wide ranging. There were times in these past weeks when some of us felt that we were studying advance mathematics. We were in the world of algorithms and advanced electronic signatures and cryptography. We were also in a world of cyber crime and cyber cops being given police powers, as well as critical data base protection in the name of national security and the socioeconomic wellbeing of South African citizens.
The IFP is concerned that issues of national security and policing do not belong in legislation emanating from the Department of Communications. We have yet to understand why these powers have been relinquished by the relevant line Ministries in this regard. With regard to the protection of critical databases, the IFP is relieved that its proposed amendment to protect the content from the state’s intrusion -initially rejected and then accepted - has to a degree cured this chapter of its unconstitutionality, although we would not be surprised if in the future the private sector seeks jurisprudence on the issue.
This Bill’s attempts to give legal recognition and functional equivalence between electronic and paper-based transactions will no doubt keep some lawyers in profitable work for years to come. We have taken our first step into a whole new realm of law and the devil, as always, is in the detail. However, the need for facilitation and regulation of electronic communications and for consumer protection in this regard is a given. There is no doubt that in the years to come this Bill, soon to be an Act, will be amended time and time again. We now await the department’s development of a national e-strategy provided for in this legislation, and another likely and lively interaction with Mr Nichols and our fellow citizens. [Applause.]
Mrs W S NEWHOUDT-DRUCHEN: Chairperson, hon members, before I begin I would like to thank the Department of Communications for the work that they have done regarding this Bill and the industry people for all their inputs. We have before us an historic Bill, the Electronic Communications and Transactions Bill.
The Portfolio Committee on Communications has held public hearings, debated and amended this Bill. There were even heated discussions and threats to switch off the Internet and e-mail system of South Africa. As a frequent e- mail and Internet user, I hope this will not happen, because it will not be beneficial for South Africa and South Africans.
We cannot have one person controlling the Internet interests of South Africa for himself. What is important to South Africa is that more and more of our people have access to the Internet, and therefore have access to global information.
I will therefore focus my speech on e-government and consumer protection. Today we are living in the information age. This has brought about many changes, such as how we do business, how we communicate and how we obtain information.
This is also changing the Government and how Government relates to people. What do we find when we go into a government department? Long queues, having to wait for hours, plenty of forms to fill in, which still need to be processed, and then we still have to wait for the outcome of that application.
So many of our people have to travel long distances only to obtain application forms, for example when applying for an ID document. E- government is user friendly. It provides a user-friendly link to Government websites where information of general interest can be accessed.
Departments at all levels will be able to convey essential information to the public electronically. Instant on-line information on all aspects of regulations, legislation, welfare, support grants and rebates can be available. Forms normally obtained in long queues can be obtained and completed on screen and printed, or completed later and returned by post.
E-government is when information communication technologies are used so that Government can interact and do business with citizens and businesses. However, it is also about how Government organises itself, its administration, rules, regulations and frameworks, in order to carry out service delivery, co-ordinate communication and integrate processes within itself.
Why e-government? E-government can serve the people by providing easier access to public information and services. New technologies will enable people to provide more information and make Government transactions when and where it suits them - offer a wider choice of service channels, more personal services and prove services based on the needs of the people, rather than on administrative convenience. E-government will now be geared towards the convenience of the people and not the convenience of the staff.
To be able to receive e-government there needs to be a transformation of Government into an information-age government. For this to happen, a range of new frameworks and strategies across Government will need to be developed.
A few examples of this are the following: a knowledge-based workplace where public servants at all levels must be info-communication literate to make sure that service delivery is easy; change management, meaning that employers need to change their attitudes and they must understand what e- government is all about; the upgrading of e-government, IT structures and systems; and, the roll-out of key Government infrastructure, to name but a few.
However, how can this be so readily available to people in the rural areas? We already have MPCC with computers and schools will be receiving computers via the Departments of Education and Communications. We also have the Post Office, mentioned in the Bill as the preferred authentication service provider. The Post Office now has what we call PITs, Public Information Terminals. Our people can easily access these terminals to obtain easy access to electronic information and documents.
Let me go on to consumer protection. When we go to the shop we buy something we like. We like it because we can examine it physically and be able to look at it. We then pay for the purchase and receive a receipt. We have approximately 14 days to return the purchase with the receipt if we do not like what we have bought. All this is done on paper, physically. Consumers who buy things are generally protected by law. We have consumer watchdogs and organisations.
Yet consumers who do business electronically did not have this kind of protection before. Internationally, people are doing business over the Internet, including South Africa. There is a huge potential for growth doing businesses online, so e-customers must feel secure when doing transactions online.
This Bill, among other things, provide e-customers with protection when they do business online. Why is consumer protection so important? Shopping on the electronic marketplace is something that is available, accessible and convenient 24 hours. There are unlimited choices. It also gives established suppliers and new entrepreneurs low-cost access to a virtually unlimited customer base. There may be many benefits, but the challenge is to make sure that the virtual marketplace is a safe and secure one to buy goods, obtain services and access electronic information.
We as customers must be able to feel confident that the goods and services offered online are fairly represented. We must also be able to feel that the supplier from whom one is buying - many of whom are located in another part of the world - will deliver the goods in a timely manner, and are not involved in an illegal business practice such as fraud and deception. Consumers must be protected against these dangers. When we buy online we must know where and who the suppliers are. Customers have a right to full information about the supplier, such as the full name and the legal status, physical address, telephone number, website, e-mail address and whether the supplier is a member of an accredited board. This Bill makes provision for this. Consumer confidence also means that consumers must have access to fair and effective changes if they are not satisfied with some part of the transaction. As e-customers, this Bill makes provision for customers to make sure that they make good purchases and enables them to return the goods if they are not happy with them, following a cooling-off period. It also makes sure that there is strong and effective customer protection in an online environment and gets rid of the need for a long and arduous litigation process. Alternative easy-to-use mechanisms for customer dispute resolutions for redress and enforcement are required.
Just as we receive junk mail in our post boxes, so can we also receive junk mail online, known as spam. This Bill also protects e-customers against spam if they do not want it. Anyone wanting to make a complaint can take the complaints to the customer affairs committee, if they are not happy.
The ANC Government is at work to make a better, easier and accessible life for all our people. Let us support this Bill. [Applause.]
Mnr J J DOWRY: Mnr die Voorsitter en agb Minister, die groei in elektroniese handel het ‘n innoverende mark geskep sonder konvensionele reëls, maar met talle uitdagings. Die wetsontwerp is dus opgestel ter erkenning van die groot behoefte aan wetgewing om e-handel te reguleer in dié hoogs tegniese bedryf. Daarby het ons met die wetsontwerp oor elektroniese handel en transaksies elektroniese handel omvangryk gehanteer. Die wetgewing verseker ook nou wetlike erkenning en funksionele gelykheid tussen elektroniese en papiergebaseerde transaksies.
Dit is te verstane dat bestaande wetgewing, veral met betrekking tot die geldigheid van transaksies, in ‘n groot mate verouderd geraak het en dus die verwesenliking van e-handel se voordele kan benadeel en belemmer. In soverre die wetsontwerp dié struikelblokke verwyder en bestaande wetgewing tot op datum bring sodat die geldigheid en afdwingbaarheid van digitale kontrakte en transaksies verseker word, sal dit sy doel bereik en is dit lofwaardig. Ten spyte hiervan is die bedryf onrustig oor verskeie aspekte in die wetsontwerp. (Translation of Afrikaans paragraphs follows.)
[Mr J J DOWRY: Mr Chairperson and hon Minister, the growth in electronic commerce has created an innovative market without conventional rules, but with numerous challenges. The Bill has thus been drafted in recognition of the great need for legislation to regulate e-commerce in this highly technical industry. In addition to that we have dealt comprehensively with electronic commerce in the legislation on electronic commerce and transactions. The legislation now also ensures statutory recognition and functional equality between electronic and paper-based transactions.
It is understandable that the existing legislation, particularly with regard to the validity of transactions, has become antiquated to a great extent and therefore could disadvantage and hamper the realisation of e- commerce’s benefits. In as much as the Bill will remove these obstacles and bring existing legislation up to date so that the validity and enforceability of digital contracts and transactions are ensured, it will reach its objective and it is praiseworthy. In spite of this, the industry is uneasy about various aspects of the Bill.]
The New NP agrees with some of the submissions which say that the Bill is overambitious and overprescriptive, and raises the real danger that it will create new obstacles to frustrate its own aims. The Bill gives a very wide range of functions and powers within the exclusive domain of the Minister and the Department of Communications.
The New NP believes that these functions and powers should have been shared by a greater variety of stakeholders from the private sector. However, the composition of the panel who will advise the Minister on which members to appoint to the board and the board itself should go a long way in achieving this goal. We agree with the Cape Telecommunication Users’ Forum that the chapter on cryptography providers seeks to impose conditions on service providers who might be located anywhere in the world. This could lead to many global e- commerce entities that will simply refuse to do business with South Africans, resulting in tragic consequences.
Dit is jammer dat ons nie meer veranderings aan Hoofstuk IX, wat handel oor kritieke databasisse, kon aanbring nie. Die Nuwe NP is van mening dat hier te maklik op die privaatheid van individue en maatskappye inbreuk gemaak kan word. Die besluit oor wat kritieke databasisse is, berus by die Minister en die departement, en ons is van mening dat hulle daardie magte slegs ten opsigte van die staat se databasisse moet kan gebruik.
Die komitee het egter ‘n amendement in klousule 55 aangebring wat dit nou verbode maak om die inhoud van dié databasisse bekend te maak. Ons is bewus van die nasionale sekuriteit wat baie maklik deur die Internet in die gedrang gebring kan word, en verstaan heeltemal as die Regering voorsorgmaatreëls wil tref om die veiligheid en sekuriteit van die nasie te beskerm.
Die wetsontwerp maak in Hoofstuk XII ook voorsiening vir kuberinspekteurs wat moet kyk na internetoortredings. Ons is van mening dat dié hoofstuk weggelaat kon wees, aangesien die Nasionale Intelligensie-agentskap, die SAPD en die Skerpioene genoegsaam toegerus is om dié taak uit te voer.
Die feit dat die hele Hoofstuk X, wat handel oor die web-adresse wat op ``.za’’ eindig, heeltemal deur ‘n nuwe hoofstuk vervang is, dui op die Regering se erns daarmee dat e-handel in Suid-Afrika moet werk. Kragtens die wysiging sal die Regering nou nie meer die enigste aandeelhouer wees in ‘n maatskappy wat dié adresse reël nie, maar sal dit nou ‘n vennootskap met die private sektor vorm. Dit kom dus daarop neer dat die bedryf homself reguleer met die instemming van die Minister. Dié positiewe verwikkeling word deur die Nuwe NP verwelkom. (Translation of Afrikaans paragraphs follows.) [It’s a pity that we could not make more changes to Chapter IX, which deals with critical databases. The New NP is of the opinion that here the privacy of individuals and companies can too easily be violated. The decision as to what critical databases are, rests with the Minister and the department, and we are of the opinion that they should only be able to use those powers with regard to the state’s databases.
However, the committee made an amendment in clause 55 which now prohibits the publication of the contents of these databases. We are aware of the national security which can very easily be jeopardised by the Internet, and understand completely if the Government wants to take precautions to protect the safety and security of the nation.
In Chapter XII the Bill also makes provision for cyber inspectors who have to look at Internet offences. We are of the opinion that this chapter could have been left out, as the National Intelligence Agency, the SAPS and the Scorpions are adequately equipped to execute this task.
The fact that Chapter X, which deals with web addresses ending in “.za”, was entirely replaced with a new chapter, indicates the Government’s seriousness about the fact that e-commerce in South Africa must work. In terms of the amendment, the Government will now no longer be the only shareholder in a company which regulates these addresses, but will now form a partnership with the private sector. This therefore amounts to the industry regulating itself with the approval of the Minister. This positive development is welcomed by the New NP.]
Having mentioned a few areas of criticism, we must point out that the Bill contains numerous positive elements. The aim of the Bill, ie to enable and facilitate electronic transactions in the public interest, is wholeheartedly supported by the New NP. Electronic transactions offer a multitude of benefits to small business and consumers, such as access to the global marketplace for goods and services, speed and efficiency of transactions, low transaction costs, the ability of the consumer to look out for the best quality goods and services at the lowest costs regardless of the location of the supplier and the possibility of increased security and consumer protection.
It is important that these benefits should be available to all South Africans and not only to a privileged few. It is, therefore, pleasing to note that this Bill contains the concept of making available the benefits of Internet connectivity to the South African population at large.
The New NP also welcomes the fact that the SA Post Office is named as the preferred service provider for the Government, and that it will enjoy this privilege for the first three years. Sapo has, over the years, built up the necessary infrastructure, and will therefore be in a position be provide much-needed service in almost all corners of the country. Previously disadvantaged people in the rural areas will have immediate access to a service provider to share in the benefits of e-commerce. In conclusion, I would like to express my appreciation to the chairperson of the Portfolio Committee on Communications for the manner in which he conducted the proceedings of this committee. Open and extensive debates on the issues were allowed, and it was really a pleasure to be part of making history in South Africa.
The New NP supports this Bill. [Applause.]
Mr S ABRAM: Chairperson, I want to follow on the speech made by the hon Mr Dowry by also paying tribute to the chairperson of the communications committee who, under the most trying circumstances, did his utmost to try and obtain the maximum degree of consensus in seeing this Bill and steering it through. I can assure this House that I was not part of all the burning of the midnight oil. At my age, I get into bed early in winter.
I am deviating from my prepared speech, because I need to react to two statements which I heard here this morning, which really shocked me. A statement was made by the hon Smuts that the Bill contains security and intelligence considerations, which are beyond the ambit of this particular department. The other statement was by the hon Vos that security and intelligence do not belong to this department.
I believe that the security and the integrity of this country is not only the responsibility of our security forces and intelligence agencies, but that it is the responsibility of every government department in totality. [Applause.] The attacks that can come through the electronic media can be extremely devastating. There is the spectre of cyberterrorism, terrorism through electronic sources which can destabilise any country and even our financial situations.
Whether it is a police function or not, legislation must see to it that it provides the necessary safeguards. I want to congratulate the director- general and the Department of Communications for having taken account of those threats. [Applause.] I would like to remind the hon Smuts that somebody who is the patriarch of the DP, the US President, George Bush, whom I do not trust … [Applause] … has said the following, and they should take heed of that. He said that the biggest threat to the United States is through electronic means, and that it is also a threat to the developed world.
I am reminded here that the police must see to it that they have sufficient intelligence. I would like to remind the hon member that R30 billion spent on intelligence in the United States did not prevent the disaster that took place on September 11. One can spend as much money as one likes on police intelligence, but if it does not become a national effort and the concern, not only of every department, but of every citizen in this country, we will, unfortunately, get nowhere. [Applause.]
I am disappointed that a party which professes to put the integrity of the state at a very high premium has very little regard for the security and intelligence considerations which are contained in this Bill, and they need to be. [Applause.]
Unfortunately, I did not realise that it takes almost four minutes to respond to some ludicrous statements. [Laughter.] I will not be able to proceed any further.
In conclusion, I do not believe that this legislation …
Mr M J ELLIS: [Inaudible.]
Mr S ABRAM: I want to tell the hon Ellis that that is exactly the mentality of the DP, where they believe that the dark-skinned former coolie cannot think. That is the problem with them. [Applause.] [Laughter.] [Interjections.]
The CHAIRPERSON OF COMMITTEES: Order!
Mr R J HEINE: Chairperson, is it correct for that member to say to another member ``jou moer’’? [Laughter.]
The CHAIRPERSON OF COMMITTEES: Order! Hon Abram, if you did say that, could you withdraw?
Mr S ABRAM: May I address the Chair? When that hon member created certain circumstances in this House, trying to claim that I as a dark-skinned person cannot think, I said what I said.
Mr M J ELLIS: Mr Chairman, on a point of order: …
The CHAIRPERSON OF COMMITTEES: Order! Mr Abram, I asked you not to make a statement, but to simply withdraw if you did say that.
Mr S ABRAM: Chairperson, out of respect for the Chair and this House, I will withdraw. [Applause.]
Mr L M GREEN: Chairperson, hon Ministers and members, we have all come to realise that electronic communication and e-strategy is a national priority. The electronic village is an interconnected system linking persons and organisations together through computers worldwide. The age of information is the wave of the present and the future.
Government has recently learned that information is not an authoritative right of the state, but is an expression of universal freedom. Chapter 10 in this Bill has, through its recent passage, been a lesson about the nature and scope of the limits of government.
It would have been a travesty of justice should the Minister have had the powers of approval over the annual business plan of the board, as was originally proposed in clause 62. Fortunately, the relevant parts were removed. It would have been an incomprehensible, bureaucratic maze should the state have had control over the domain name authority. Reason has prevailed and the compromise, as proposed in clause 60, should be given a fair trial period.
We accept that the Internet is a national asset, and that domain-name control should not be in the hands of one person, but should be in the hands of a section 21 company representing the broad sectors of our society, as contemplated in clause 60 of this Bill. The ACDP accepts the compromise of a public-private partnership to control domain names in South Africa. The ACDP is of the opinion that it is the responsibility of all members of society to contribute to an e-strategy, irrespective of where their focus and interest may be. For instance the interest of private business would be to develop an e-commerce strategy, where necessary. Government’s interest, on the other hand, would lie within an e-government strategy.
The ACDP believes that South Africa is a country that should stand for rigorous economic activity, and for respected, limited government, especially in areas where it has a meaningful role to play. The ACDP is, therefore, happy about the changes effected to the Bill and hopes that our country will rise up to the occasion to compete with the best in the world. [Applause.]
Mr M K LEKGORO: Chairperson, it was clear to me throughout our deliberations on the Bill at committee level that the main issues of contention were issues of ownership and up to what point a national asset should remain in private hands.
Traditionally on such matters the DP would argue that we should leave national assets exclusively in private hands. Let Government not have anything to do with regulating such areas, they would say; inspection will give Government too much powers, so let it be done under the ordinary laws of the country.
As all parties tried to find agreement on the Bill, this was the kind of right-wing knee-jerk reaction that the committee was subjected to from the DP throughout our deliberations on the Bill.
In deciding on the domain name authority, there were three choices. One was to let the status quo prevail, leave it in private hands and let them arrogate themselves the right to represent the public interest. The second was to take the original suggestion in the Bill that the state be the only member and shareholder of the authority. The third choice, which the ANC opted for, was that the present authority, the community that uses the Internet and the state become the new authority of the ``za’’ domain name.
The president of the Internet Corporation for Assigned Names and Numbers, Icann, M Stuart Lynn correctly argues that ``technical managers should stick to what they know and do best, and leave to other organisations what they in turn do best’’. It would be refusing to bend to reason not to recognise that a government plays an important role in representing the broad public interest of its people. If our intention is to roll out Internet access to our public institutions and citizens in our communities on a significant scale as we envisage, then we cannot ignore the involvement of government.
If an institution like Icann itself, after experience, concedes that the government is an important partner in the survival of the Internet, why would we want to move in the opposite direction? Let us in our outlook not be moved by the desire to stay with the old and fear for the new.
We are of the opinion that the route we took in the Bill by establishing a section 21 company and constituting a board for the company is the most accommmodating way of establishing a domain name authority for our country. The Bill provides that the Minister put up a panel of five persons who interview nominees and recommend names to the Minister.
There was insistence from the opposition that we instruct the Minister as to whom to put on the panel. Guess whom they wanted in the panel! They wanted the panel to consist of the very people they would like to see on the board. That meant they had to be on the panel and select themselves onto the board. Now, this is mind-boggling to every democrat.
However, we insisted that the Minister appoint five persons who command public respect for their fair-mindedness, wisdom and understanding of issues concerning the Internet, culture, language, academia and business. We consciously crafted the Bill to enable the panel, when constituting the board, to draw from communities that would have a significant stake in matters relating to the Internet, including the present Domain Name Authority. The intention is to broaden the authority, make it more representative and allow government intervention. Now, to label this communistic nationalisation is but to shun reason.
Originally, the Bill had given the power to the Minister to make regulations regarding the Domain Name Authority, demonstrating our will to put up a board with meaningful responsibility. The Bill that is before Parliament gives the board that responsibility with the approval of the Minister.
It is our considered opinion that the chapter on cyber inspection is a necessary one in the Bill. Cyber crime is a reality. It is in the interest of promoting electronic transactions to prevent unauthorised access to data and to prevent interception of or interference with data. To argue that these crimes should only be dealt with under the cyber unit in the SA Police Service is to negate the options Parliament took in other pieces of legislation.
To enable the department to directly deal with areas of its competence in the cyberworld, we should allow them the right, in law, to take direct charge of inspection. This has been the trend that Parliament took, for instance, with labour inspectors in the Department of Labour and immigration officers in the Department of Home Affairs. Perhaps, a further issue that the department should consider is how to enable whistle-blowers who wish to report unlawful activity to safely channel information without fear of being exposed.
Finally, I wish to emphasise to the department that the success of this law will always be judged against the will of Government and the ability to integrate the previously disadvantaged sectors of our community into the world of electronic transactions. [Applause.] Dr S E M PHEKO: Mr Chairman, the PAC supports the Electronic Communications and Transactions Bill. Its purpose is to provide for the facilitation and regulation of electronic communications and transactions. It promotes universal access to electronic communications and transactions by SMMEs to prevent abuse of information systems. It is a sophisticated legislation for the twenty-first century.
The definitions of various terms in clause 1 are very helpful for clearer understanding, interpretation and application of the Bill. The Bill has important objects which are stated in clause 2. Clause 11(1) states that:
Information is not without legal force and effect merely on the grounds that it is wholly or partly in the form of a data message.
What about requirements of signature in a legal document? Clause 13(1) says that:
Where the signature of a person is required by law and such law does not specify the type of signature, that requirement in relation to a data message is met only if an advanced electronic signature is used.
Clause 14(1) recognises that where a law requires information to be presented or retained in its original form, that requirement is met by a data message.
The Bill provides for admissibility of evidential weight of database, notarisation, acknowledgement and certification by data message. That admissibility includes oaths. This Bill solves a number of legal problems which would slow the pace of legal business demanded by the fast pace of the twenty-first century. For instance, clause 17 provides for a legal document to be produced by means of a data message.
The PAC thinks that this is an excellent piece of legislation. It makes modern business easier and is in accord with the fast world of modern technology. The Bill protects consumers’ personal information and critical database.
The PAC supports this Bill. [Applause.]
Mr V C GORE: Chairperson, whether South Africa or the ANC is a willing participant or not, this country will become an active member of the knowledge and information economy. The success or failure of the Bill will be determined by whether a South African Internet user has the confidence and necessary protection to conclude a transaction or an agreement online.
Chapter III goes a long way towards achieving this, but the rest of the Bill can, at best, be described as misdirected; at worst, as expropriation and even unconstitutional. The ANC is fast becoming like the National Party of old. [Interjections.] They have learnt well from their previous masters. Afrikaner nationalism of yesteryear is now African nationalism of today, as the ANC tries to take control of anything and everything at any price.
Only one other government has had the audacity to believe it has the right or the ability to control the Internet. The net result was that Zimbabwe was disconnected from the Worldwide Web for four days. Imagine if the same fate befell South Africa. The hon the President would not be able to surf the Internet in search of dissident HIV/Aids views. How can this Government even contemplate that it has the necessary skills to run over 120 000 domains, service millions of users, when it cannot even control two simple domains - gov.za and parliament.gov.za.
The Internet is a complex interconnected web of PCs, routers and servers. It represents the closest to an ideal democracy; a bottom-up hierarchical structure where individuals vote directly for themselves, and provides unparalleled freedom of expression. Perhaps this is exactly why the ANC is so fearful and would like to destroy it.
I have taken the liberty of obtaining the e-mail addresses of the hon the President of South Africa - president@po.gov.za; the Speaker of the National Assembly - ancmp@ANC.org.za, and the Chairperson of the NCOP - npandor@parliament.gov.za. I ask all Internet users within South Africa and beyond to petition the South African Government to come to its senses before South Africa no longer has the use of the Internet. [Interjections.]
I have to report to this House a very disturbing trend. Despite claims of consultation with role-players and stakeholders and weeks of public hearings when the tough got going, the ANC got tougher and once again showed its true tyrannical colours. Without discussion, important clauses were simply glossed over, and bulldozed through by the ruling party. Excuses by the ANC members were that they had not read the clauses; that the Bill had to be rushed so that the World Cup soccer could be watched and, of course, the inevitable well-worn race card was pulled out more than once. When confronted on serious issues, the ANC played the player and not the ball. Every member of this Parliament has a sacred and constitutional obligation to pass good legislation. From what I witnessed over the last few days, I am concerned that we will ever live up to this responsibility.
Underpinning all e-commerce is the infrastructure that carries the messages. South Africa has to ensure that the cost of communicating is kept to a minimum, that communication is efficient and reliable and that every South African has access to communication. The Government is failing dismally in this regard.
Telkom has disconnected hundreds of thousands of telephones and the cost for data services is a hundred times more in South Africa than in other countries. If the benefits of this Bill, badly constructed as it is, are to be truly realised, this Government must concentrate less on expropriation, and more on provision of affordable lines, hardware and software to the people in communities that are so desperately crying out for the Internet.
The DA will do everything in its power to see that all South Africans are heard in this regard. [Applause.] [Interjections.]
Mr M A MAZIYA: Madam Speaker, Ministers, members and the department, it is very disappointing to listen to some members, especially those one would regard as people who are knowledgeable, confusing the world. [Interjections.] It is also disappointing to listen to the DP speakers address the House. [Interjections.]
I want to concentrate on my speech, because if I start concentrating on their wrong information, I will waste my time. [Interjections.] The DP is continuing to blackmail this country and the people of South Africa by denying them access to their rights under the pretence that the ANC is coming with wrong laws. I want to tell hon members today that if they listen to the DP, they will get lost.
It was good for us to fight for the liberation of this country. For many years those who could not write were expected either to put a cross or a thumb print on a piece of paper. But today, thanks to the ANC, all that will be history. I must confess that it was not an easy road, but the road to electronic mail or electronic data interchange will now be recognised as legal evidence in court.
The process of encoding and decoding a secret number seeks to install security in the exchange of electronic messages on a computer network. Cyber law is an exciting experience. It is a major milestone for our country. This law will give recognition to electronic evidence in theory. An electronic data message will now be equivalent to paper evidence, as long as their content is similar. However, everybody - business and consumers - will need to be convinced that that is so.
One area where it will have a significant impact, is in cost savings. Huge potential exists in reducing cost related to unnecessary travelling. Many believe that everything is electronic when it comes to electronic funds transfer. In reality, this is not the case. A consumer wishing to transfer R50 000 safely and efficiently walks into a bank and writes his or her request on a paper form. He or she then receives a paper copy of the money order. The bank needs to gain authorisation from a senior staff member if the sum of money is high, and this must be done on paper.
After the bank keys in the details on a computer, it also has to send transfer details on paper, possibly via a motorcycle messenger, for clearance. The whole process involves paper from start to end. In an ideal world, paper would be kept to a minimum.
This new piece of legislation is going to be a relief to many; anyone who breaks the law will be punished. Data protection, electronic communications, funds transfer and universal access: these are what we want, and without the able leadership of the ANC we would not have reached this point.
This legislation is going to empower and protect people in the digital age. Data protection law, for example, gives one rights over one’s own data. A good example is a subscriber who discloses his personal data in return for a free service provided on the internet. One will even have the right to alter one’s personal data or withdraw one’s records from the company’s website.
Electronic transaction legislation will help define the rights, obligations and responsibilities of the bank and the sender and the receiver in money transfers. We have narrowed the digital divide by introducing universal services. Most people know what a computer is and what the Internet is. Now they must know what electronic communications and transactions are. This legislation will help strengthen the way we work and live in an increasingly sophisticated society - a society in which there is ever growing importance attached to communication security.
All of us want to maintain internal control that ensures the integrity of information and security of our assets. Techniques use some form of public key encryption along with private key. No doubt members will agree with me that since the ANC came to power, the speed of improving the lives of our people has been truly amazing. The opposition have used every possible trick to slow us down without succeeding.
I want to touch on two key areas in the new legislation. The areas that I would like to deal with briefly are crytography and authentication service providers.
Crytography was first controlled in the USA by a set of regulations called Itar. It was designed to control military matters. It is now under the control of the department of commerce. These methods of communicating are unfortunately far less readable.
The new regulations promulgated in 1997 in Canada appear to have expanded rather than contracted the control over cryptography in Canada. Before exporting cryptography one must first check with one’s legal counsel.
In the UK all cryptography service providers must register with the secretary of state. The secretary of state shall keep and maintain a register of approved providers of cryptography support services, with names and addresses and the services they provide. Members of the public are allowed to inspect the contents of the register.
Now what are cryptography service providers? They are the key to this legislation. The tool used to read digital communications is provided by cryptography service provider. It is like when one comes home and cannot enter because one does not know what happened to the keys. One does not want to break a window or the door, there is no one else who has a key and the spare key is inside the house. One calls a registered locksmith to come and unlock the door. Interestingly, all of us are in a sense, unregistered cryptography service providers ourselves. If I asked around the Chamber, I would find that all of us must have opened our cars without breaking a window or lock whilst the door was locked.
My comrades and those who were involved in underground work were provided with a sketch to assist us in identifying the spot where the arms cache was hidden. This is an interesting tool. In those days the sketch would be the key to open the hidden place. Anyone who picked up the sketch would not have understood or known what it meant.
Given our understanding of this tool, the Director-General of the Department of Communications must register every cryptography service provider, no matter how big or small it may be. If members had noted, in the United Kingdom it is the Secretary of State who has to show the way on how the tool should be handled. The tool is so important that they do not want to take any risks. We have done a proper study on this matter and we will not apologise to anyone.
This cryptography is used by authentication service providers. It is the right of individuals to use the services of accredited authentication service providers. Government departments must use accredited authentication service providers. What is the authentication service providers? In the olden days when one went to the old - or even to the present - Home Affairs, one was given a piece of paper where one had to fill one’s details in. This piece of paper was then taken to another counter where a check would be conducted on a computer to determine whether one’s details corresponded with those on the computer’s database. If not, one would then be registered in the computer. A piece of paper would then be handed out and then a comparison would be made. In other words an authentication would be made.
Today, a copy of one’s identity document would be made. However, before the copy is recognised, one must go to the police station or a commissioner of oaths to compare the copy with the original identity document. A confirmation would then be made that it is a reflection of one’s identity document.
The authentication service provider would be the person who will be using the tool from the cryptography service provider to certify if the electronic inscription in a form of an advanced signature and so on, is correct and belongs to Mr Maziya. This is an interesting world indeed. Let us thank the ANC.
The reason one would find authentication service providers who are not registered is that the people who supply the tool to certify will always tell or give a list of people who have bought this tool. Cryptography service providers are expected to take the particulars of all who come and buy the tool from them and they must keep records for security purposes. [Time expired.]
The MINISTER OF COMMUNICATIONS: Madam Speaker, I would like to take this opportunity to thank many of the parties, especially those who quite clearly have large historically disadvantaged members. What they have done is to put their country and their people before individual private power and privilege. For that support, I wish to thank them very much. [Applause.]
The hon Dene Smuts has said that the director-general of my department has not been attending Icann meetings. I will give evidence to the contrary. We have had young people, black people in particular, men and women who have gone with him so that they could understand what the struggle was all about. We will win this struggle because it is also an international one, not just a local one.
I would like to thank the chairperson of this committee for his able skills in manoeuvring this Bill through the parliamentary process. It was the protection of the disadvantaged, in particular, that he always had as his concern. I would specifically like to thank all members of the committee, especially those of the study group coming from the ANC, for engaging us and emancipating themselves, because they made sure that they knew what this Bill was all about and we listened to them today.
This could only happen in a party like the ANC, which has always said that it is important to engage people and for them to take responsibility for their own empowerment. Therefore, as they moved, we clearly heard them here.
When I met them in 1999, all of them were shocked by the document that we presented on electronic commerce. Today, they eloquently spoke about it, knowledgeable in defence of their country and in defence of their people, and I say it could happen nowhere else, except in the ANC. [Applause.] That is our tradition by which we must live.
Clearly, as I see it, not only within that ANC, it is quite evident, as Mr Kadar Asmal said yesterday, that we are advancing. I repeat what the hon Rajbally once said: Siyaya phambili! [We are going forward!] I will see hon members in cyberspace. [Applause.]
Debate concluded.
The DEPUTY SPEAKER: Order! Are there any objections to the Bill being read a second time? I hear an objection from the DP’s side. The objection of the DP will be recorded. Mr M J ELLIS: Madam Speaker, I was actually waiting for you to put the question to the House, but you did not seem to want to do that.
The DEPUTY SPEAKER: I was not aware, hon member, that you would like me to
put the question. I will now do so. Those in favour of the Bill being read
a second time will say aye''. Those against will sayno’’. I think the
ayes have it.
Bill read a second time (Democratic Party dissenting and Afrikaner Eenheidsbeweging abstaining).
APPROPRIATION BILL
Debate on Vote No 32 - Transport:
The MINISTER OF TRANSPORT: Madam Speaker, hon members and the many friends of the transport fraternity who are in the House this morning, the function of transport is to move people and goods from one point to another safely, predictably, efficiently and at reasonable cost. For millions who travel to and from work daily, transport is a basic need. It also plays a crucial role in the economic growth and development of our country. It is a facilitator, enabler and catalyst. It is described as an input sector, like energy and communications, serving the growth sectors such as tourism, manufacturing and agriculture.
Transport, therefore, serves a social and economic purpose. But because of our inherited legacy of huge spatial distortions and large areas of underdevelopment, especially in the rural areas stretching across the country, even the economic purpose serves a social function.
That social function has to do with the constitutional imperatives of dignity and equality. Our Constitution contains the promise of dignity and equality, but it is not a self-fulfilling promise. South Africa has to achieve dignity and equality in the daily lives of South Africans amongst others by taking forward the South African revolution, which is to effect fundamental social and economic transformation and to create a better life for all.
In its role of addressing a basic need and as an input sector in our economic growth and development, transport is faced with many challenges. Some have been addressed, like institutional reform, at a number of levels, but others, like putting into a place all the elements of an integrated transport system based on intermodalism, remain with us.
The state, therefore, cannot abdicate its responsibility to ensure that its social and economic vision becomes a reality. In the area of transport, like in other areas of activity, the state must play both a regulatory and interventionist role. It is for this reason that the President has described our state as a developmental state.
At the same time, we bear in mind that we live in a globalised world economic environment in which we need to compete successfully to guarantee our country’s prosperity. Aware of the rules of the game and playing according to the rules, as we were compelled to do to the best of our ability, we at the same time seek to do so in a way which will bring benefits to our people. This is what we are doing in transport, especially in our aviation and maritime sectors.
We know that we will not achieve the ideal integrated transport system based on intermodal rationalisation overnight, but we remain conscious of the fact that we must promote and develop all modes of transport - air, water, land based transport, road and rail, as well as pipelines. If one examines our progress over the past few years, one will see that in promoting one or other mode of transport as well as our infrastructure, we have done so within the framework of our overall vision.
We are also looking at using more effectively available information communication technology and, indeed, modern technology generally, which will help us shorten the period it will take to achieve an ideal integrated transport system and to promote connectivity and interconnectivity. In this context, our airports and seaports are becoming hubs, and an essential component of corridor development. Our road-based transport system relies more and more on developing intermodal interchanges. There are already over 70 such interchanges in the country and more are in the pipeline. Safety and efficiency in all modes have become matters of high priority.
Let us look at the progress we are making towards achieving a rational, intermodal and integrated transport system, and I want to pick on a few elements. Firstly, in the aviation sector, all countries, with few exceptions, have suffered from a decline in that sector as a result of the 11 September 2001 attacks in the United States of America. One of the exceptions is South Africa. After an initial decline, more and more people across the globe began to speak of South Africa as one of the two safest destinations in the world. The result is that airlines have not been able to cope with the demand from Europe and the United Kingdom, as well as other parts of the world during peak times. Flights to South Africa from Europe have increased. There are more frequencies from the United Kingdom, but the planes remain full.
South Africa has moved away from the period of protection and controlling frequencies, and is implementing a policy of allowing airlines to fly to and from South Africa without imposing limits or restrictions on frequencies. There are now more flights across Africa from the Middle East and, hopefully, flights from Asia and South America will increase.
We have intensified safety measures. Our aviation safety and airspace management are in good hands through our civil aviation authority and air traffic navigation service. Representatives of these agencies are here with us today, and I thank them for their contribution.
South Africa subjects itself to Icao audits every two years and we are complying with our international obligations. Our airports, especially Johannesburg, Cape Town and Durban International, have gained world recognition. The Airports Company South Africa has spent in excess of R500 million in capital expenditure on improvements to the terminal capacity, runways and taxiways, roads and parking, safety and security, and bulk infrastructure.
A new terminal that was opened last year, in addition to Cape Town, was Durban International. The improvements and reconfiguration at Durban gives the airport a necessary peak-hour capacity. At the same time, new additional parking bays have been built, frontage roads realigned and drop- off zones improved. Durban will also see the birth of the King Shaka International Airpot in due course. Work on planning the implementation programme has already begun.
At our main international airport, Johannesburg, the new public viewing deck has been completed above the international terminal, giving the general public open views over the operational side of the airport. Work has continued at speed on all the works for the new domestic terminal with a capacity of 10 million passengers a year, which includes not only the terminal, but also the realignment and extensions of the access road system, the new domestic pier, with 8 new loading bridges; the expansion and reconfiguration of the aprons to the south of the new terminal; and the lengthening of the lead-in taxi ways to this area. At the same time, work has commenced on expanding the existing multistorey parkade with the addition of an extra 1 000 parking bays.
At our smaller airports, money has been spent to ensure that facilities can meet the demands of capacity and the ever-increasing improvements in security and safety standards. Signifant work has been done at our Pilanesburg Airport to improve its international status and for the runways to accept larger aircrafts.
Work will commence this year on the improvement and reconfiguration of Port Elizabeth International Airport, giving it a 33% improvement in capacity. At our smaller airports where the current infrastructure is more than adequate to meet the foreseeable capacity demand growth, money is being spent on the upgrading and refurbishing of essential airside facilities and assets such as runways, instrument landing systems, fire engines, security equipment, etc.
I turn to the maritime sector. Conscious of the fact that about 90% of world trade is conducted by sea, South Africa has embarked upon a focused policy of port development. Richard’s Bay, Durban, Coega, Port Elizabeth, Cape Town and Saldanha Bay are destined to play a much greater role in handling our exports and imports. It is, therefore, absolutely imperative that we address logistical problems and ensure that we have effective logistical management in place to promote seamless movement of goods to our ports and move goods from our ports to other destinations across the globe in good time and in a competitive way. We have put into place working groups to address this issue.
South Africa has also adopted a new ports policy in terms of which landlord functions have been separated from port operations. Landlord functions are being performed by the National Ports Authority of South Africa. Operations will see greater participation by the private sector, to enable our ports to cope with the needs of the economy and the increasing business in our ports.
But our seas and ports have to be safe. We must ensure that we prevent pollution and effectively combat it wherever it occurs. This function is shared between our Maritime Safety Authority and the Department of Environmental Affairs and Tourism. The creation of a separate South African Maritime Safety Authority has been a big success.
The big challenge facing Samsa at present relates to fishing vessels’ safety, especially the safety of small vessels. This poses a big challenge, because invariably small vessels do not have adequate equipments on board, there is inadequate training and education, there are often no drills and when crises strike many fishers are lost at sea.
Samsa is currently addressing that problem and is developing a comprehensive programme to promote fishing vessel safety and protect fishers and their families. This will involve a focus on equipment, training, education and counselling, as well as changes in legislation and regulation. Samsa has just embarked upon a process of consultations around these issues.
I will make a copy of the plan of action available to this House before the end of June. That plan of action will be subjected to critical scrutiny and will be implemented in co-operation with all stakeholders. Samsa is immediately commencing with an awareness promotion programme.
With regard to the important issue of road infrastructure, I am happy to say that at all levels of Government there is now a greater focus on road development and maintenance. Everywhere we go there is a demand for roads, especially in our rural areas and local communities. We do have some success stories. Our national roads are generally regarded as amongst the best in the world. The new toll roads are operating well. Provincial roads are not making adequate progress, unfortunately, and as I said, local and rural roads are crying out for attention.
The roads agency-funded toll roads include the N1 South Extension in the Free State, between Kroonstad, Welkom and Bloemfontein, at an investment value of about R180 million. Future projects in this category include N17 East toll road in Gauteng and in Mpumalanga, N4 East below Hans Strijdom is the Gauteng-Mpumalanga border and N1 North Extension in the Limpopo province. Their total investment value is R863 million.
We have previously reported on the Maputo Development Corridor, the N3 toll road and the platinum toll road. These resulted in the creation of 9 858 direct jobs. The platinum toll road covers 380 km, with substantial foreign investment. The question is: What about nontoll roads? The programme of the roads agency allows for a nontoll network of 11 000 km of roads. This would include existing provincial roads.
The roads agency has proposed that we create a strategic road network of 20 000 km which would be our primary road network, optimally managed and maintained to safeguard the economic arteries of our country. It also proposes that about 7 000 km of this network be tolled.
Whilst I generally approve of the Sanral proposal, I believe that we must not rush into further tolling of nontoll roads without making sure that local communities through which the roads run, workers and small entrepreneurs are adequately provided for through total exemptions or in appropriate cases meaningful discounts. I am making an assessment of the impact of tolling on these categories of people and believe that we must refine our strategy to make appropriate provision to prevent hardship.
The infrastructure fund set up by Government will make a contribution to reversing the decline in the state of our local, rural and many provincial roads. Sixty percent of the infrastructure fund goes to provinces. Provinces have set aside money for road development. There are the well- known examples of Gauteng and KwaZulu-Natal, but let me give hon members one example of a province that is often much maligned, and that is the Mpumalanga province.
It is making a valiant effort to build and maintain roads. For the year 2002 to 2003 it allocated R404 million for roads. Upgrading work on six provincial roads was started. This includes 10 km on the first phase of the Allemans Drift to Bloedfontein and Moloto road in two phases of 11 km and 16 km, respectively. A total of 50 km will be reconstructed on the Moloto road in three phases, at a cost of R160 million.
The first 13 km of the Middelburg to Bethel Road is completed, another 35 km will be finished in the 2002-03 financial year. The first 13 km of the Bethel to Hendrina Road was completed in 2001; the last 25 km will be completed in 2002 to 2003. Twenty-seven kilometres of the Brooks to Waverley Road on the Swaziland border has been completed. The Wonderfontein to Carolina Road, Shevem to Manzini Road, Pieterskraal to Waterval Road, Ngodina to Khumbula Road, Roodekraal to Driefontein Road and Karino to Plaston Road are all in the pipeline for upgrading in the year 2002 to
- About R100 million has also been earmarked to reconstruct the White River to Hazyview Road, together with a high-level bridge.
I have given the example of Mpumalanga to give members an idea of the efforts being made by our provinces to ensure that we turnaround the decline which has been taking place on our roads. All the provinces have got programmes of that kind. At a local level, there is also light at the end of the tunnel. The redemarcated local authorities are now all in place. They are less than two years old, but already they have adopted integrated development plans and many of them make provision for roads. They can also call on the new municipal infrastructure fund for support.
We have also asked our roads agency to take responsibility for the roads infrastructure of all 52 international border posts existing between South Africa and our neighbouring states. The extent of construction and repair has been fully worked out. A workplan is in place. We have approached Treasury for the necessary funds. Sanral is geared to commence work on the 52 border posts and we hope to report substantial progress next time around.
Mr G B D McINTOSH: That is good news.
The MINISTER: Thank you. The completion of this programme of work will facilitate speedier movement of people and goods through the border posts. The R200 million awarded for poverty alleviation over two successive financial years has also been well spent on projects in the Eastern Cape, Free State, KwaZulu-Natal, Limpopo and the Western Cape - the focus there has been on rural roads.
Next year South Africa hosts the twenty-second World Roads Congress. Nearly 100 countries and roads agencies will be represented.
With regard to the question of transport as a basic need and social service, to meet the imperative to provide transport as a basic need, a public transport system is essential. To convey millions of people, we have available a commuter train transport service in six metro areas, bus transport and the minibus taxi industry. We have resolved to make train transport safer, more efficient and more attractive in the hope of moving more people to use rail as their preferred mode of transport. We also seek to level the playing fields between road and rail and to provide a system of incentives and disincentives.
In the Spoornet restructuring process we were presented with a number of far-reaching proposals representing a consensus arrived at between labour and Government. The Cabinet, on the basis of the agreement, took a number of decisions. Firstly, Spoornet’s freight businesses - general, freight, Orex and Coalink - will be conducted as one integrated business with loss- making entities integrated into the profit making ones to make one enterprise, though further discussion will take place with regard to Orex.
Institutional rationalisation should take place in relation to SARCC and Metrorail, with appropriate accountability to the relevant Government departments. [Interjections.]
The public passenger services, that is the commuter train services in the six metro areas, will, together with the mainline service, Shosholoza Meyl, be conducted as a single enterprise under one umbrella.
Retrenchments will be properly managed and the parties will work together to look at steps necessary to promote efficiencies at all levels.
The decision by Cabinet made it possible for us to develop a new rail policy and a strategic 10-year railway plan which provide for a complete overhaul of our railway system and services - stations, rolling stock, signalling systems, appropriate training, labour issues such as hours of work and conditions of service, addressing commuter concerns through consultations and communication, safety and security issues and HIV/Aids. These documents, the policy and plan, will be available for parliamentary scrutiny in July 2002.
It is our fervent hope that as a result of this new approach, focusing on a plan to transform the railway system in all its facets, we will win sufficient money from Treasury to support that transformation and also keep existing services going. Currently we face a financial crisis in that unless we are rescued by Treasury and get more funds, over and above the current baseline allocation, Metrorail and SARCC will have to seriously consider closing down some services.
But we have made progress on other fronts: improvement of stations and trains; more intermodal facilities; addressing commuter grievances; the passing of legislation to set up an independent rail safety regulator; the decision by Government to set up a division of the police to provide security at national key points, as well as transport nodes such as stations.
We are also addressing the issue of moving from a system of interim contracts to regulated competition in the bus industry, although there have been some difficulties in that regard.
I turn to the minibus taxi industry, which has been a great success story for the years 2001-02. From current reports received from provinces, indications are that the ``Be Legal’’ campaign yielded very positive results in terms of legalising illegal operations. Six provinces are almost done with the exercise, while three others are nearing completion.
The democratisation process has been a great success, starting at ground level with associations, moving to the higher level with regional and provincial elections and, eventually, national elections in September 2001, which saw the formation of a democratically elected SA National Taxi Council executive committee. The industry is now united more than ever before, and more joint decisions are being taken without much fear of reprisals. There is a dramatic reduction in violence, intimidation, harassment, fights over routes and general lawlessness within the industry.
The recapitalisation programme is now able to proceed. There is one outstanding issue, namely the electronic management system, and there we are talking together with Santaco to ensure that that issue is satisfactorily resolved so that the recapitalisation programme can proceed.
Santaco structures, especially the national executive, must be commended for the way in which it has consolidated the unity of the taxi industry, moved dramatically to reduce violence and successfully to focus on economic empowerment. I want to say ``Well done’’ to Santaco and best wishes. [Applause.] I want the House to know that we have the leadership of the taxi industry sitting with us today … [Applause] … the first time that we have them in such large numbers, and we wish them well.
I turn to the question of road safety. All hon members know of the launch of the Road to Safety Strategy, which has been before this House. Since then we have developed business plans to put into place practical programmes of action, focusing on nine key focus areas, namely of driver fitness; fleet operations management; on vehicle safety; traffic information systems; the Arrive Alive communication; pedestrian safety and education.
The last two are very important. For example, in the Arrive Alive communication greater attention has been given to pedestrian safety. Pedestrian messages will be featured on 370 billboards from June this year. A contract has been negotiated with the Premier soccer leagues to advertise road safety messages on big screens in the bigger soccer stadiums.
We will flight four TV advertisements 40 times, 6 radio advertisements 120 times on 9 national radio stations and 6 print advertisements. We will also flight a five-minute weekly road safety feature on 30 community radio stations until the end of the financial year. In addition, there will be 45 roadshows staged nationwide and 30 special public relations events.
Pedestrian safety and education is very important. The building of 22 junior traffic training centres has already started in eight provinces. Existing and functional road safety community-based structures are undergoing training on road safety matters and more structures will be established in historically disadvantaged communities during the course of the year. There is also the national traffic information call centre and the promotion of professionalism in the traffic fraternity to which we are giving attention.
The ninth area is the fraud and corruption area, together with law enforcement, in which a special focus is given to these matters with, again, great emphasis on overload control in our country.
Rural transport and development remain a big challenge, and a number of steps have been taken to ensure that we promote rural transport as best as we can. Nonmotorised transport plays a very important role in this regard, focusing on animal and human-drawn carts and also on the promotion of the Shova Kalula national bicycle transport strategy.
We also turn to the issue of urban renewal in which a number of projects are taking place in four of the urban renewal nodes, namely Khayelitsha, KwaMashu, Galeshewe and Alexandra. In Khayelitsha we have started a process of extending the commuter rail line by just over four kilometres. The design for the extension of the line and station from Khayelitsha to Baden Powell will be finalised by the end of the year, and consultants for the building of the line and the two stations will be appointed by March 2003. There is also the development of an intermodal facility at KwaMashu, and we are looking at developing a bicycle project at Galashewe.
In so far as transport training is concerned, the transport education and training authority - Teta - is a big success. A number of chambers have been created; namely aerospace, forwarding and clearing, freight handling, maritime, rail, road freight, road passenger, and taxi. Teta has made good progress and we commend this organisation whose representatives are also in the House today.
The last issue I would like to mention is the role of transport in Nepad and in SADC where, again, we are making considerable progress. We are focusing on maritime transport, on aviation, on seamless land-sea-air transport systems and on promoting rail systems integration. In SADC itself, a great deal of harmonisation has taken place in a number of areas.
Let me conclude by extending my appreciation and thanks firstly to my colleague Mr Jeff Radebe, the Minister for Public Enterprises, and his department; to my colleagues the MECs of transport, some of whom are here today, to the chairs, CEOs, boards, management and staff of our agencies, to the Civil Aviation Authority, Acsa, ATNS; the Road Accident Fund; Sanral; the SA Cross-Border Road Transport Agency; Samsa; the SARCC; Spoornet; Metrorail; Transnet, especially to Mr Bongani Khumalo, the chairperson of Transnet, who has taken many initiatives to develop co- operation in the area of transport; to the portfolio committee on transport, especially its chair Jeremy Cronin; to the acting director- general of my department who is here today and his officials in the national Department of Transport; and the Department of Transport generally, I say thank you very much.
I conclude by saying that it has been a hard, but fruitful year. A great deal of work lies ahead and I look forward to co-operation with everyone to promote transport as a basic need and as a social service for our country. [Applause.]
Mr J P CRONIN: Madam Speaker, Minister and hon members, assessing the annual transport budget and carrying out our related oversight functions and responsibilities present some challenges for the portfolio committee. This has to do partly with the fact that more than 90% of the department’s budget, as in recent previous years, is not spent by the department as such, but flows out of the department in a form of transfer payments to provincial governments and to the various public entities that report to the Minister. It can therefore sometimes be a little bit complicated trying to get a handle, as a parliamentary committee, on the transport budget.
However, we would like to thank the Minister and his department, the CEOs and senior management of the SA Railway Commuter Corporation, Intersite.
Mr T D LEE: Madam Speaker, on a point of order: The caption has been removed now, but I noticed that the person speaking was indicated as Mr Farrow from the DP. I just wanted to know when …
The DEPUTY SPEAKER: Order! Yes, could the management please attend to that problem.
Mr J P CRONIN: Madam Speaker, I am sure I will be given injury time for that. [Laughter.] I was saying at the time of the confusion as to my identity that we would like to thank the Minister, his department and the CEOs and senior management of the SA Railway Commuter Corporation, Intersite, the SA National Roads Agency, the Road Accident Fund, the Cross Border Road Transport Agency, Air Traffic Navigation Services, SA Maritime Safety Authority, the Civil Aviation Authority and the Airports Company South Africa - and I hope I have not left out any of them - for the time that they have made with the portfolio committee in a series of hearings that we have had over the last two months, giving us their versions and perspectives on this budget. We have sometimes, from our side, asked - as we must - some robust questions, but we have certainly learned a lot as a committee in the course of these two months.
The overriding impression we have, as the ANC, is that this budget will help to underpin the steady and significant progress that is being made on many fronts, and the Minister has mentioned many of them. Among the notable features of the budget, as far as we are concerned, are a sustained emphasis on rolling out the road-to-safety programme, with the significant allocation to the new Road Traffic Management Corporation to ensure that it gets up and running in the course of this year.
There are very significant transfers to the National Roads Agency, which have been rising from the 1998-99 to 2004-05 financial year by an average of 11,1%, and that is important and significant. We are also pleased to see the significant allocations to policy development for the department. We note, for instance, the nearly R21 million allocated to passenger transport policy development in particular, and we note the department’s commitment to producing a passenger transport policy document by September this year. I would like, later on, to underline just how important we think that is.
Our engagement over the past few weeks with the various public entities that report to the Minister of Transport has also enabled us to get some sense of how these entities are operating and many of them are quite new. Our impression is that many of them are functioning very effectively - the Civil Aviation Authority; Acsa, the airports company; the ATMS; Sanra, the road agency, and probably Samsa. We have also been impressed by the degree of professionalism and passion about rail that we find in the senior management of the SA Rail Commuter Corporation, although there are real challenges on this front, and I want to deal with those in a moment.
We believe that there are some problems in some of these agencies. The Cross Border Road Agency needs special attention. The chairperson of the board was perfectly frank on this score himself. Amongst other things, the cross border agency has been operating without a CEO for an extended period now. The Road Accident Fund has, of course, received a fair amount of publicity in the recent period, and not all of it has been flattering. We do, however, believe that the Road Accident Fund’s problems need to be properly contextualised. There are major structural problems in the fund. Judge Satchwell estimates that around half of the fund’s resources, which are fundamentally intended to compensate victims of road accidents, end up by being preyed to legal and health professionals. The fund has also been preyed upon by fraudsters operating both, from inside of the fund and from outside.
The structure, character and legal framework within which the fund operates all need drastic overhaul, and we look forward, as a committee, to the Road Accident Fund Commission Report, which must now be completed - there has been several delays to its completion - in a matter of weeks.
As a committee we intend to play an active role, perhaps through public hearings and certainly through legislative amendments in the second half of this year.
In the meanwhile, we would like to acknowledge the more proactive and strategic role that the new board, we think, has been playing. We also want to acknowledge the many indications of seriousness and an attempt to get to grips with the challenges that we see from the side of the new CEO and his senior management. There has been a series of arrests of personnel from within the fund over the last several months and this is the result of good work, certainly by the Scorpions, and also by the management itself.
There are many features in this budget that other speakers from the ANC will touch upon. But there is one area that I want to emphasise in particular, and hopefully the DP will too. Some 20% of South Africa’s daily commuters rely on trains. Last year the Rail Commuter Corporation reckoned that there were some 2,2 million passenger journeys per day. I suppose that works out to be about 1 million commuters, give or take every working day in South Africa. This is a very, very significant number of commuters, even though the percentage has been sliding as a result of commuter frustrations, the cutback of some services, delays, unreliability and general fears about safety on trains.
It is Government’s announced intention, which we really welcome, to increase the number of rail commuters, and with good reason. Rail is, in principle, the safest, the most fuel-efficient, and the most environmentally friendly mass transport system. There have been a number of welcome developments over the past period which indicate that there is serious intent to take rail commuting seriously, and to win back a greater number of commuters to this form of travel.
These include, among other things, Cabinet’s recent announcement that it intends to consider, with a sense of urgency, the introduction of transport police. This announcement is very warmly welcomed by the ANC. An effective transport police, with an effective presence on our stations and trains, will go a long way towards improving personal safety on trains. And we hope that the establishment of such a force will happen very soon.
There has been another welcome sign of focus on rail commuting. Intersite, a wholly owned subsidiary of the Rail Commuter Corporation, has over the last several years been busy with a major overhaul of stations. And anyone travelling on the Metro rail system will know that in many cases those old soul-destroying fascist-style station constructions are increasingly a thing of the past. An important, but limited, programme is under way of introducing new coaches. By the end of the year, 200 new coaches will be running on the system, but that is 200 out of a rolling stock of some 4 500 - important, but a small contribution.
The hon Minister has mentioned that as an integral component of the urban renewal programme, the Khayelitsha node of that particular nodal development, will see the extension of some 4 km of the Khayelitsha line. This is the first extension of rail track in our country for many years. We should also not forget the introduction and passage through this House recently of the National Railway Safety Regulator Act.
These and other developments are warmly welcomed, but on their own, individually and severally they do not get to grips with the scale of the challenge that we face in terms of commuter rail. Without other drastic measures they will not reverse what the acting CEO of the Rail Commuter Corporation described with candour as a ``situation of national crisis’’ in commuter rail. [Interjections.] He is quite right. Those were the exact words that he used when he addressed the portfolio committee last week.
Some members might think that CEOs of parastatals like to paint a bleak picture, particularly when it comes to budget debates. But, in this case, I am quite convinced that the main thrust of what we have been told is absolutely right. I think that the financial statistics bear out this case, and I will come to them in a moment.
But one does not just have to listen to the senior management of the Rail Commuter Corporation, or confine one’s attention to financial statistics. The symptoms of quite a serious crisis are all around us and very evident.
The current age of rolling stock - the coaches - is 27 to 28 years. Some are as old as 50 years and are still in operation. I believe the international average mean failure time on motorised coaches is some 600 days. So after about 600 days one can expect to have to send in a motorised coach for repair and maintenance. In South Africa, it is now down to 35 days - the average time within which a motorised coach has to be sent in for repairs.
As a result, one can imagine there are delays; coaches are often uncomfortable and overcrowded; there is unreliability of services; and there is deepening commuter frustration. This, sadly, and often unacceptably but factually, has resulted in frustration sometimes being expressed in the form of burning coaches, even the destruction through arson, of Pretoria station, unacceptable but symptomatic of a very real problem.
There is also, as the Minister knows all too well, the legal action brought against a couple of Government departments ie Metrorail and the SA Rail Commuter Corporation by victims and/or families and friends of victims of violence on trains here in the Western Cape. There is also the impending Western Cape Cosatu strike action, protesting against violence on trains, as well as the unreliability and inadequacy of services. Generally, there is a steady drift away from train commuting by thousands of former loyal commuters, despite the fact that trains are cheaper and often more convenient, at least in principle.
Often some of the frustrations and anger is directed, perhaps understandably, against the immediate perceived source of frustration, eg against a local Metrorail manager, for cutting back services, and so on. No doubt, there are issues that need to be addressed at this level. Management needs to be improved, where possible. The streamlining, certainly, of institutional arrangements needs urgent address. In particular - and the Minister has mentioned this - we need to look at the awkward anomaly of a rail commuter corporation answerable to the Department of Transport, which just acts as the principle conduit for the funding of something else, Metrorail, which falls under the Department of Public Enterprises, and the unification of these entities with Shosholoza Meyl. In respect of all of these things we must proceed with a much greater sense of urgency to address. These will make a contribution, but on their own they do not get to the heart of the crisis.
There is only so much that can be achieved through cost-cutting measures, the rationalisation of staff and the streamlining of services. Over the last several years a lot of this has been done already. Indeed, I think there has been a cutting down to the bone. Many of the problems and frustrations experienced by commuters are the direct result of desperate attempts to stretch a very thin budget.
At the heart of the problem is a massive and sustained underfunding of the commuter rail sector. The problem goes back more than 15 years. The old SATS used to run commuter train services, and they used the umbrella of SATS to cross subsidise to the tune of about R1 billion every year, the recapitalisation of commuter rail. In 1985, for whatever reason - perhaps it had to do with P W Botha’s growing cost of his total strategy - suddenly, this R1 billion a year, which was cross subsidised into recapitilasation of commuter rail, was abolished. So from one year to the next a R1 billion spent was just abolished and went down to zero.
Even worse, after the 1990 Succession Act - the act which transformed SATS into Transnet and created a series of independent corporations, including the SA Rail Commuter Corporation the F W De Klerk government completely forgot to put the entire Rail Commuter Corporation on the budget entirely. There was no budget allocated for this entity, and as a result the rail commuter corporation was allowed to borrow externally, R2 billion worth of money. That borrowing has also been part of the picture of the crisis and the rail commuter corporation has been saddled with the burden of paying off this debt of R2 billion.
In 2000 we passed legislation in this House which enabled the Treasury to take over this debt, and that has helped. But the funding for commuter rail, specifically capital funding, remains desperately inadequate. The total allocation to the rail commuter corporation was R1,37 billion in the 2001-02 financial year, which actually represented a net reduction of 0,4%, a decline over the previous year. In this year’s budget the total allocation is R 1,39 billion, which is a mere 1,5% increase over last year and is not remotely in line with inflation.
According to to the rail commuter corporation the current levels of capital investment in commuter rail will see the complete collapse of this system within 15 years’ time. One million commuters will be without rail transport within 15 years. In fact, the decline will be so steep that they will have abandoned the rail system by the fifth, sixth and seventh year.
Dynamic growth in the sector requires sustained annual capital investment. We are not talking about money for more staff and employees, particularly; we are talking about capital investment in commuter rail. It will involve, unquestionably, a large amount of money.
There are numerous, we know, legitimate demands on our budget. We cannot do everything. Maybe health is more important than transport; maybe education is more important. But, as the ANC and the ANC-led Government, over the coming year and before the next budget we need to make a responsible policy choice. Do we, or can we remain committed to our progressive policy objectives of a dynamic and growing rail commuter system which provides affordable, safe and efficient commuting to hundreds of thousands of South Africans or is this simply not affordable? In which case, if it is not affordable, then we need to develop some alternatives and say that this is the bullet that we have to bite.
I do not think that we can continue to do important but partial things, ie introducing a transport piece here, refurbishing stations there, extending the Khayelisha line or introducing 200 new coaches, if at the end of the day the whole thing is just going to grind to a halt. The important piecemeal transformations will have simply flattered to deceive.
For all these reasons we look forward to the new rail policy and the strategic 10-year railway plan that the Minister has mentioned. We will really support the Minister in his drive for the enhanced prioritisation of transport in the budget, in particular commuter transport.
Therefore, in concluding, while dreaming of, if indeed not agitating for bigger and better budgets in the future, the ANC, of course, supports the Transport Budget Vote for the 2002-03 financial year. [Applause.]
Mr S B FARROW: Madam Speaker, Minister, I must agree with a lot of what the hon Jeremy Cronin has talked about, in particular the fact that the Minister’s budget is totally underfinanced. The Minister is on record in stating that transport is a basic necessity for sustainable social and economic development, and an enabler in addressing poverty and development needs, particularly in rural areas. I cannot agree more with the hon the Minister.
However, the question arises whether the 2002-03 budget actually addresses this statement. I just want to start off with a few issues, because I do not have all that much time. I think I must turn my attention to my favourite hobby horse, the RAF. Ever since I have been in Parliament, I have raised the issue of the mismanagement of this fund, a fund which absorbs some R2 billion of taxpayers’ money through the fuel levy. For the past two years the fund’s annual expenditure has exceeded its income and it is technically insolvent. Drawdowns now have to take place on reserves to meet the shortfalls, over the last two years, of about R7 million.
The fund has 3 000 claims in the pipeline that still need settlement, and this amounts to approximately 11 000 people. Yet, despite a major increase in staff over the past year and the new IT systems being installed, the cost of administration increased nearly threefold since 1997, whilst the claims paid out only doubled as of 30 April 2001.
The fund has been dogged with problems and controversy over the years, with adverse press reports pronouncing large-scale fraud, high cost salaries, expensive symposiums and Christmas parties, extravagant offices and furnishings, massive retrenchment payments to incompetent staff and the new offices at Menlyn with their first floor of executives which still was not able to accommodate the present staff complement. As a result, low staff morale and a high staff turnover, computer downtime and board members with a conflict of interests, to name but a few, continue. A forensic audit, which cost nearly R5 million, revealed and confirmed what we already knew.
Out of this came a string of remedial measures which have been partly implemented to a limited success, coupled with proposals for 12 legislative amendments to the Road Accident Fund Act. This is despite the fact that the Judge Satchwell, as a parallel initiative, has undertaken a commission of enquiry into the fund, with a view to making recommendations to the President on affordability and sustainability of the fund in respect of compensation to accident victims.
Yet, since the commission’s gazetting in October 1998, we still await this report. In the interim, the people for which the fund should be benefiting most, the accident victims, most of them the poorest of our community, suffer. And it is estimated that current claims could take three to four years to meet. Many of these claims could become proscribed by law if not dealt with within the three years from lodgement.
The Minister should do himself a favour by trying to phone the RAF offices one day to make an enquiry, or even better, visit their offices and try to get access to one of the claim supervisors, to see what response the public gets from their enquiries and he will know what I am talking about.
I know that great efforts have been made to improve and stabilise the situation at the fund, but despite numerous investigations and commissions in an attempt to rectify its financial and management crisis since the mid 1980s, we are no nearer to a resolution. The RAF must be seen as a business and not just a milking cow. Again I stress the need for sound business principles to be applied, in order to decrease the massive outflows taking place from the fund.
The recent adverts in the press for the new appointments of an IT chief architect and other key posts baffles me. Considering that recommendations as to its future structuring and the composition of the Fund has still not been finalised, I call upon the Minister to bring swift finality to the inquiry before it is too late and, if necessary, to put a moratorium on any new appointments.
I would like to turn my attention to roads. The question still to be answered is how affordable and sustainable the new taxis will be considering the massive backlog in regard to road infrastructure, which has now escalated to such an extent that it contributes to 15% of road deaths. If the roads are not repaired to acceptable standards, we will also be serving a death warrant to the new taxi fleets and the commuters using them, when one considers that 69% of our provincial roads are classified as being in poor to fair condition. I must say that Sanra is doing an excellent job on our national roads. I suggest that, in future, if any funding is allocated to provinces, it should be ring-fenced for specific and conditional use for road maintenance.
As far as the issue of the infrastructural fund is concerned, which the Minister mentioned, I would support any means to get more money from that R6 billion that is earmarked for infrastructure and job opportunities into the hands of Sanra. We would support Sanra taking over the maintenance of all provincial roads providing that a dedicated transport fund is established. Further, if the transportation of goods and people by rail is to become the favoured option, then the rail network needs to become more efficient and better able to compete with road transportation. At the moment, this is not the case, and this is having a serious impact on our country’s import and export competitiveness and the economy as a whole.
Finally, my learned colleague the hon Jannie Slabbert consistently repeats in our portfolio committee meetings, that one cannot have too many bulls in the ring! The DP believes that the Minster should try and resolve the issue of the two Ministers running the rail networks. We believe that the Minister should call a workshop of all transport stakeholders, particularly the private sector, in regard to the road versus rail debate. [Applause.]
Moh H F MALEBANA: Modulasetulo, mahu le dikgobalo, tobo ya dithoto, tshenyego ya ditsela le dikoloi di tliša matshwenyego kudu mo nageng ya rena ya Afrika Borwa. Go hloka maikarabelo, kgotlelelo le tlhompho ga badiriši ba tsela ke tlhobaboroko e kgolo go malapa ao a ikhwetšago e le batšwasehlabelo, ditšhuana le bahlologadi.
Tshelo ya molao le go hloka tsebo e kaone ya maleba ya tirišo ya tsela e emišitše tona ya dinamelwa, Comrade Dullah Omar le ba kgoro ya gagwe ka maoto. Lenaneo le le kgontšha tšwelopele ya polokego, tsenelelo le go beana le dinaga tša ka ntle go tša diphofo, dikepe le dinamelwa tša mebileng le ditimeleng, le gona go godiša polokego yeo e tšweletšego ka ditseleng. Ke ka fao lehono ke ratago go bolela ka tša taolo le polokego. (Translation of Sepedi paragraphs follows.)
[Ms H F MALEBANA: Chairperson, deaths and accidents, loss of property and destruction of roads and vehicles bring untold hardships in our country. Lack of responsibility, patience and respect by road users is a nagging nightmare to families that find themselves as victims.
Disrespect for the law and lack of the necessary knowledge about the use of roads made the hon the Minister of Transport, Comrade Dullah Omar, and his department take certain steps. This programme ensures that there is safety in aviation and that South Africa is on a par with international countries’ standards on aviation, maritime and road transport, and sustains that safety on our roads. That is why I would like to speak about road safety management.]
To have safety on the road, the ANC realises that we need this strategy. Lack of education and training in traffic rules and signs has led to many people getting injured or killed on our roads, which leads to a serious economic burden as it is the direct cause of accidents resulting in death or injury and costs our country a huge amount of money.
Ka lebaka la melao ya kgethologanyo ya maloba, setšhaba se ile sa ikhwetša se lahlelwa kgole le mešomo le moo ba ka hwetšago tsa go iphediša. Ba be ba sepela lebaka le le telele, ba tsoga mašego ka dinamelwa tša bohle tšeo di sego tša lokelwa go ba tseleng. Setšhaba se be se se na le ka moo se ka ntšhago dingongorego goba ka mokgwa woo ba kgotsofetšego ka gona. Ditefelo le tšona di be di le godimo moo ba bego ba gapeletšaga go fulela ganong. (Translation of Sepedi paragraph follows.)
[Because of the past apartheid laws, many of our communities were put very far from their workplaces. They were forced to wake up early, to walk long distances and to travel by public transport that was not roadworthy. Our communities did not have any avenue through which they could speak of their tribulations, or even about how they were happy about some services. Prices were very high, to such an extent that they were forced to live from hand to mouth.] The RDP document says:
A transport policy must promote co-ordination of safe, affordable public transport as a social service, and promote road safety.
It goes on to say:
South Africa has the worst road safety record in the world. Central Government funds allocated to ameliorate this situation via education, enforcement and engineering have been negligent.
Road safety must be given the priority it deserves. Transport authorities must be charged with the task of reducing accidents, and must be given funds to achieve that goal.
Ke tsopola seo tokomane ye e se bolelago, e lego tlhohlo go Lefapa la tša Dinamelwa, ka ge maemo a ditsela, dinamelwa le badiriši di mpefala, kudukudu kua dinagamagaeng, moo go felago go e ba le go tšwa taolong ka nako ya dipula. Se ga se re gore mmušo wa ANC o a palelwa. (Translation of Sepedi paragraph follows.)
[I am just quoting from this document which, I believe, will encourage the Department of Transport to do something, primarily because the state of our roads, the transport system itself and road users is deteriorating, especially in rural areas, where the situation becomes worse in the rainy season. However, this does not mean that the ANC-led Government cannot deliver.]
The launching of the Road to Safety Strategy, 2001-2005 in November last year by the Deputy President, Comrade Jacob Zuma and the Minister, Comrade Dullar Omar, gave South Africans hope. It marked a recognition of ensuring that our roads are protected, and our people and property are safe. This was done after a project initiated by the department in collaboration with the provinces, and it is a more detailed implementation plan of road traffic management co-operation. It focuses on the approach to address problems in the system and identify factors that would result in a safer road environment, that is improved road conditions, improved law compliance and enforcement, and increased public awareness.
The RTMC’s responsibility is to ensure also that vehicle registration, traffic information system, public communication and law enforcement are abided by. The focus area of the RTMC is the driver’s fitness to drive. This, if taken into consideration, will reduce the poor competency of the licensed drivers caused by fraud and corruption within the licensing system and collusion by some driving schools with examiners; drivers’ licence testing centres that are not consistent or compliant; lack of capacity by the inspectorate to carry out frequent inspections; inadequate annual inspections to address fraudulent practices; and the lack of powers to cancel or suspend the registration of examiners or testing stations.
The second area of focus is vehicle fitness. Here the vision is to ensure that the testing stations are of an acceptable level of safety and legality, and that they abide by the code of practice for testing stations.
Fraud and corruption have been allowed to flourish and law enforcement rendered ineffective.
With regard to pedestrians’ safety and the Letsema campaign, …
… dinyakišišo le dipalopalo di laetša gore palo e ntši ya basepelakamaoto bao ba hlokofalago goba go gobala mebileng e hlolwa ke dinotagi, go hloka tsebo ya melao ya tsela, maemo a mabe a tsela, go se bonagale bošego ga basepelakamaoto le basepelakadipaesekela, dipaesekela tšeo di sa lokelago tsela, le go hlokega ga tsela ya basepelakamaoto. Mo go nyakega gore re šomišane le setšhaba, kudukudu bao ba lego dinagamagaeng, e le maiteko a go humana mekgwa ya go fediša mahu a basepelakamaoto mebileng.
Thuto le tlhahlo di ka thuša bašomiši ba tsela gore ba obamele melao, kudu bao ba dulago mesasaneng le bao ba dulago magaeng. Se ke maikarabelo a mang le mang go bona gore o tšea karolo mo go lekeng go tliša tsebo le tlhompho ya melao ya tsela. Lefaphao la tša Dinamelwa e ka thuša ka go thuša mebušo ya selegae le diprofense ka go ba le makgotla ao a ka šomanago le go sedimoša le go tsebiša setšhaba ka bohlokwa bja tšhomišo ya tsela le dinotagi. (Translation of Sepedi paragraphs follows.)
[… statistics show that the main causes of pedestrian deaths or accidents on the roads are alcohol and drug abuse, a lack of knowledge about road signs, the poor state of our roads, poor visibility of pedestrians and cyclists, bicycles that are not roadworthy, and the unavailability of pedestrian ways. We need to work together with the community, especially those in rural areas, in an effort to curb pedestrian death tolls on our roads.
Education and training can help road users, especially those who are staying in shacks and rural areas, to obey the rules. It is everyone’s responsibility to ensure that other people know and obey the rules of the road. The Department of Transport can help provincial and local governments in setting up councils that will deal with enlightening and educating the public about the relationship between alcohol and drug abuse, and using the road.]
The interprovincial traffic policing conference of the 17 to 23 February in Limpopo resolved to identify and fight corruption among officers and the people who corrupt them. They are to ensure that they implement the Batho Pele principle. The setting up of a unit to undertake continuous investigations will be a long-term solution.
The Arrive Alive road safety campaign is designed to instil a culture of safe traffic participation and address the underlying causes of road accidents in South Africa.
Arrive Alive has started to show significantly better results. Arrive Alive campaigns should be inculcated as part of the wellbeing of road users so that they become a year-round campaign.
The overriding aim of the Road Traffic Management Corporation is to overcome the fragmentation of traffic management functions across provincial and local jurisdictions.
Regarding fleet operation management, professional drivers carry greater responsibility than other drivers on the road. That is why there is a need to ensure that they be subject to strict licensing requirements so that they are able to monitor vehicle safety from time to time and to measure fatigue. Here I am talking about a requirement for regulation and self regulation that should be included in the code of practise.
On the subject of rail, transport is seen as a means of mobility and access for customers in meeting socioeconomic needs. Harmonisation of the system is needed. The railway safety regulator is for developing and monitoring rail safety policy and approving rail safety regulations. The Minister has to make regulations with a direct or indirect bearing on railway safety and on the obligation to adhere to the safety standards that must be imposed for all road users.
Tona, se se ra go e re swanetše re leke bjalo ka maAfrika Borwa gore batho ba borena ba tsebe gore gonwa wa tsena ka mo koloing go hlola mahu, sego a batho bao ba lego ka mo koloing fela, efela le go batho bao ba bego ba itshepelela ba se na le molato. [Legowa.] [I would like to tell the hon the Minister that we have to try, as South Africans, to ensure that fellow South Africans know that drinking and driving cause deaths, not only of people who are occupants of vehicles involved in such accidents, but of poor and innocent pedestrians. [Applause.]]
Mr J H SLABBERT: Chairperson, hon Minister, it is a great honour for me today to participate in my eighth Transport Budget Vote debate. Since 1994 the Transport portfolio has undergone many changes, including a change of Minister, but we got a good Minister in 1999. Most of the changes and legislative policy have been to the benefit of South Africa although some mistakes have been made on the way. [Interjections.] Will that hon member please keep quiet?
Modern developing economies require the smooth and efficient functioning of a number of sectors to achieve sustainable economic growth. In South Africa’s case resource-based industries, manufacturing and financial goods and services come to people’s minds immediately, but what about transport? I have always felt that the contribution of transport to South Africa’s economic success has been underestimated.
Our economy is resource-based, with manufacturing an important player, but it is our infrastructural position that allows us to move manufactured goods and commodities to markets both domestic and international. Roads, railways, ports and airlinks play a vital role in our economic machine. Amongst other things, our infrastructural position gives us a competitive advantage in Africa, among emerging markets and, in some cases, even among First World markets in areas such as vehicle manufacturing for export purposes.
Given the economic importance of transport, I therefore find it astonishing that the one thing that has not changed since 1994 is the fact that the Transport portfolio is still seen by many, including some hon members of this House - I do not see them here now - as a Mickey Mouse portfolio. As a result, Transport is not accorded its rightful place in Government’s lists of spending priorities.
The IFP will support the Transport Budget Vote, but we do so with certain reservations. It would be easy to spend all my allotted time criticising the financial details of the Transport budget, but I am not going to do that and waste my time. I would rather highlight transport-related concerns.
My only direct comment about the budget of the Department of Transport is that the allocated funding has yet again fallen far short of the expectations and requirements of the transport reality in South Africa. The Minister of Finance is also not here today. It never fails to amaze me that such a crucial portfolio for economic success receives only 1,8% of the overall national budget. Compare that with the 13% received by Defence and Safety and Security together.
The first transport concern that I would like to highlight deals with the safety of rail passengers. Over the last few years passengers have been the victims of train accidents and an explosion of crime, especially on urban commuter trains. The crime situation has become so serious that a group of commuters in the Western Cape decided to take the matter to court. Even Cosatu is prepared to go as far as to call a strike in order to protect commuters.
I have always felt that the disbanding of the old railway police was a serious mistake. But, I am grateful that plans are now being made to rectify that mistake. The reintroduction of a dedicated protection unit for railway commuters is surely a step in the right direction. However, this unit will fail in its duties if it is not properly funded and given the necessary resources. We simply must ensure that this unit is properly staffed with enough trained personnel and has sufficient equipment. If this is not going to be the case, it would be unfair, unrealistic and a dream to expect passengers to regain their faith in the rail commuter system. The same applies to the health and safety of passengers and their right not to be subjected to hazardous travelling conditions. In this regard, one can only hope that the soon to be established national railway safety regulator will strictly enforce safety guidelines for our passenger rail services.
I am also concerned about the instances of fraud and corruption which emanate from the activities of the Road Accident Fund. It appears to me that virtually every new day brings with it more stories of road accident victims receiving the short end of the stick through the unethical behaviour of legal practitioners and corruption in the RAF itself.
Surely, the time has come for the Road Accident Fund of 1996 to be comprehensively overhauled to address the problems once and for all. The IFP calls on the hon the Minister of Transport to table an amending Bill in Parliament as soon as possible. Road accident victims deserve an appropriate and swift compensation for their injuries, not further victimisation by a system that appears to be falling apart.
While we are on road traffic matters, I want to raise a concern about tinted windows in motor vehicles. The regulations made in terms of the National Road Traffic Act of 1996 state very clearly that windows may not be tinted to such an extent that visibility into or from a motor vehicle is reduced in any direction.
Mr M J ELLIS: [Inaudible.]
Mr J H SLABBERT: That member does not have a motor car. So, he would not know. This regulation came into force on 1 January 2000 but it appears to me that it is being ignored by South African vehicle owners. Very often I see vehicles with windows that are tinted almost black. I, certainly, am not able to see the occupants and I have to wonder whether they can see the road or other motorists. My point is that heavily tinted windows are dangerous and they can very easily conceal persons with criminal intent. I want to, therefore, call on traffic authorities all over South Africa to strictly enforce the regulations regarding tinted windows. I believe that there is little point in having the necessary regulations in place if they are not going to be enforced although I know that law enforcement on the roads is a problem.
I noticed in the budget documentation that more money has been allocated for road construction and rehabilitation. I welcome this increase because some of our roads are in a state of disrepair. Although I welcome the increase in funding for road repairs and rehabilitation, I sincerely hope that the money will be spent where it matters - and that is on the roads.
I have, earlier, underlined the importance of the transport portfolio to our national economy. I am therefore very concerned because of the problems being experienced at the container terminal in Durban harbour. Over the last year or so, delays in handling cargo containers and the resulting backlogs have cost the economy dearly. Recently, it became public knowledge that major shipping lines are bypassing Durban and offloading their cargo at other South African ports because of the chaotic situation in Durban.
Clearly, this situation must be addressed urgently. A possible solution that has been proposed is to concession the operation of the container terminal to private companies. The IFP supports that proposal if it would lead to more efficient container handling and because of the resultant economic benefits. We, therefore, urge the hon the Minister to thoroughly investigate the concessioning proposal and to make a decision that will be in South Africa’s best economic interest.
I would like to conclude by thanking the hon the Minister of Transport and his department for their efforts over the past year. I particularly want to thank the Minister for always having an open-door policy, and his willingness to tackle difficult problems. I also want to thank the chairperson of the portfolio committee, Mr Jeremy Cronin, and each and everyone of my colleagues in the committee for the open and co-operative spirit that has always prevailed in our meetings.
Some progress has been made in the transport portfolio, but I want to reiterate an earlier statement that the transport portfolio will not benefit South Africa as much as it potentially can until Government decides to allocate funding to it that is commensurate with the role it plays in our national economy. [Applause.]
The DEPUTY CHAIRPERSON OF COMMITTEES: Hon member, in your long list of thank yous, you did not thank the hon Ellis. I hope you do so in … [Laughter.]
Mrs N D MBOMBO: Mr Chairperson, hon members and fellow comrades, I am going to speak on road to rail.
This department is the most important one. I can proudly say that it is the mother of all the departments that we have. Everyone, even the most arrogant and most negative howlers, is here because of transport. The policies of the apartheid system moved poor people away from job opportunities and access to amenities. We in the ANC are correcting that.
The role of public transport is to cater for all - scholars, pensioners, the lame and the sick. Let us view our transport in a serious light. We should work together and commend each other rather than compete.
The funding is not enough. Approximately 60 000% more funding must be made available for this department. Where is the Minister? There he is. [Interjections.]
Public transport is a social service which must be economically viable and must ensure accountability so that people have control of what is provided. We must move people to where transport is, next to the railway lines so that they do not have to walk long distances to catch a train. Road to rail is not the answer, as I have said. They must coexist as our rail system covers only parts of the country. For instance, there is no train that runs back to Sandton, so buses and taxis ferry passengers from the train to such places.
Stations must be upgraded and have a parking lot so that people can drive into the station, park their cars and get into the train. The same story applies when they go back home.
The old structures must not be left to rot, but being renovated. This is not to say that nothing is happening. Intersite is charged with the responsibility of upgrading and maintaining station infrastructure. As a portfolio committee, we visited the stations that have been upgraded. We were very impressed. Some of the commuters we spoke to were very positive about the improvements that have been made. Whilst we are aware that this is an ongoing programme, we encourage Intersite to speed up this programme, so that all commuters can use stations that are clean, modern and neat for the comfort and safety of the commuters. Yes, rail is cheaper than road, but the latter is much faster.
As regards safety, we welcome the appointment of a new police division, as announced by the Minister. The introduction of police at stations for the safety of passengers must be improved, and the new division of the police must be properly and adequately trained to deal with issues of crowd control and all other train-related issues such as staff riding, which was a hobby in the old days, but in the process left people limbless, whilst others lost their lives.
As the ANC, we believe that this improvement will make the railway more attractive to those who use it. Road transport must be actively policed and the weighing of road vehicles must take place regularly throughout the country. Rural roads must also be on Minmecs’ agenda at every meeting.
We must also look at the old rail carriers that stand on our railway lines which are closed down. We have to establish whether there is a need to reopen them, or whether they can play a role to revive the economy of our rural communities.
Transport is a basic need for millions of our country folk. It must remain a state responsibility. As we are looking towards the World Summit on Sustainable Development, we must also have sustainable transport. There must be life after the WSSD for this department.
Reliable transport promotes economic growth. There should be no rush and pushing, which can result in the nasty scenes we have just witnessed. The Minister and his department should treat this as a matter of urgency.
Comrade Minister is one of the most recognised persons in the country. Even children know him. Sometimes they think he lives in Maputo, KwaZulu-Natal or wherever. Members should ask themselves why this is so.
Mr M J ELLIS: Do they like him too? Mrs N D MBOMBO: Yes! They sometimes romantically call him ``Prince Omar’’. [Laughter.] [Applause.]
To boost tourism, let us revisit those places we used to visit by coal
trains, the tshuku tshuku'' orkhutshu khutshu’’ as they were called by
the locals. This is all the more reason for this department to be taken
seriously.
We are calling on communities and passengers not to vandalise the trains. It is not cost-effective and is retrogressive. The stealing of cables and other wires must be punishable. Another important issue is that of the farmers. Let us remember that our farmers depend on transport to get their produce to the market, and the public depends on transport to get their wares to all corners of the country.
Regarding the World Summit on Sustainable Development, let us give earth a chance through transport that minimises pollution, offers possibilities for safe and affordable transport, and can lay the basis for sustainable growth and development. Let us celebrate what we have achieved these past eight years and look forward to the future, because the Minister is still going to be around for some time.
Mr M J ELLIS: Not too long, I presume.
Mrs N D MBOMBO: No, no. The Minister can rely on our committee. We do things together, and agree to disagree. There is no bickering, no howling. We do not have daydreamers there who dream about ``hey diddle diddle, the cat and the fiddle’’ or about cows jumping over the moon and dogs laughing. All that kind of nonsense. We do not have such people in this portfolio committee. [Interjections.]
We all know that we do not represent our jackets, but our people. Together we are moving South Africa in the right direction for our own good, to enable each and every one to taste the better life. We have no time for dreaming about dachshunds, 101 Dalmatians, bulldogs and all the other things that bark. We do not have such dreams. [Interjections.]
The DEPUTY CHAIRPERSON OF COMMITTEES: There is no barking allowed, please. [Laughter.]
Mrs N D MBOMBO: We do not have cats playing the fiddle: Miaow, miaow. We do not have that kind of a thing. [Interjections.] Yes, it is boring. We have a new slogan, which is: ``People, Planet Prosperity’’. The priorities of that slogan are food, water and transport again.
May I take these few minutes to thank people involved with the Transport portfolio, not forgetting our secretary, Mercy; our chit-chat Whip, Patricia Coetzee; our committee secretary, Nosipho; Nomsa and all our colleagues; our chairperson, Jeremy Cronin, who is always there for us; and finally the Minister for being the Minister of this lovely, lovely department. As the ANC we support this Vote. [Applause.]
The DEPUTY CHAIRPERSON OF COMMITTEES: Thank you, hon member. I see that you even have railway lines on the back of your cloak.
Dr W A ODENDAAL: Mnr die Voorsitter, dit is vir my aangenaam om te volg op die gemoedelike agb lid Mbombo en ek wil graag haar tema opvolg, naamlik dat ons in Suid-Afrika moet poog om die publiek te leer om meer van ons spoornetwerk gebruik te maak en minder afhanklik te wees van ons padnetwerk. Dit is ‘n baie belangrike onderwerp.
Ek wil ook die Minister bedank dat hy sy toespraak vooraf aan ons beskikbaar gestel het. Ek waardeer dit. Dit sorg daarvoor dat ons ‘n debat kan voer, in plaas daarvan dat ons steriele toesprake hier aflees; en ek bedank hom werklik daarvoor dat hy dit vandag kon doen.
Die dag breek vir ekonomiese ontwikkeling in Suid-Afrika, want dit is die eerste keer in 20 jaar dat daar van ‘n Minister van Vervoer die boodskap uitgesaai word dat hy werklik omgee en die regering werklik omgee vir die vervoernetwerk in Suid-Afrika. Dit is die basis waarop ekonomiese groei en welvaartskepping in die toekoms sal plaasvind.
Ek mag ‘n paar besware hê en ons mag nog ‘n paar probleme sien, maar ons sal graag met die Minister daaroor praat. Dit is nie meer nodig dat ons net negatief moet wees oor vervoer in Suid-Afrika, en so ook oor alles in Suid- Afrika nie. Kom ons probeer om positief te wees en om sekere voorstelle te maak, wat Suid-Afrika kan laat werk, asook Afrika kan laat werk.
Eerstens, baie dankie aan die Minister vir die aankondiging wat hy gemaak het oor die Vrystaat en die belangrike hoofpad van Kroonstad oor Welkom na Bloemfontein toe. Dit sal werklik die swaar verkeerslas oor die Winburg- Ventersburgpad verlig en baie veiliger maak vir motoriste. Dit is so dat die publiek, of dit nou passasiers is en of dit nou persone is wat goedere vervoer, al hoe meer verkies om van die padnetwerk in Suid-Afrika gebruik te maak en minder van die spoortnetwerk, omdat daar oor die afgelope 20 jaar - en die agb Cronin is korrek, ook onder die vorige bewind - nie genoeg aandag gegee is aan die onderhoud en die uitbreiding van veral die spoortnetwerkstelsel. Maar dit het sedert 1994 voortgeduur tot vandag toe, dat daar tekens is dat groter aandag gegee gaan word om die spoornetwerk te verbeter.
Daar moet ‘n rede wees waarom die publiek hulle rug keer op die spoorweë - hetsy as pendelaars of as diegene wat op ander maniere van die spoorweë gebruik maak. Die spoortnetwerk het so ver agteruit gegaan, en so ‘n agterstand opgebou dat dit onbruikbaar geraak het. Maar laat ons met mekaar eerlik wees, daar is ook ‘n bestuursprobleem. Daar is nie goeie dienste nie. Daar word eenvoudig nie goeie diens gelewer aan die publiek nie. Dit is waarom hulle verkies om eerder van vragmotors gebruik te maak om hul goedere te vervoer. Daarom bepleit ek dit by die agb Minister en ek het waardering vir die beplanning wat hy bekend gemaak het, om die finansiëring te doen vir wat nodig is om veral die spoornetwerk te herstel.
Maar ek is bevrees dat dit wat die Minister gesê het en die beplanning wat deur die Minister van Openbare Ondernemings bekend gemaak is om geld beskikbaar te kry - byvoorbeeld die konsolidasie van Coalink, om kruissubsidering toe te pas binne die spoorweë, eenvoudig nie genoeg sal wees nie. Daarom pleit ek dat die Minister ‘n verdere privatisering van Transnet moet oorweeg, veral vir die ekstra kapitaal in die stelsel wat so broodnodig is nie.
Mnr Cronin skud sy kop heen en weer, want hy hou daarvan dat al die inisiatief in die hande van die regering moet wees. Laat die privaatsektor ook inisiatief wees, want dan sal dit met Suid-Afrika beter gaan. Dit is nie net ter wille van die kapitaalinspuiting wat ek verdere privatisering bepleit nie, dit is ook ter wille van beter bestuur wat sal inkom van die privaatsektor af.
Ek sê nie die Regering moet alle inisiatief uit hul hande laat gaan nie. Die Regering moet die beherende aandeel en die besluitnemende aandeel in die hande van die regering bly hou, want dit is die regering se verantwoordelikheid om toe te sien dat daar ‘n ordentlike vervoernetwerk in die land is.
Privatisering sal egter nie genoeg wees om in die kapitaalprys te voorsien nie. Daar sal ‘n herprioritisering in die begroting moet kom. Die adjunkminister het reeds op Woensdag tydens Vraetyd reeds daarna verwys dat die Regering besig is om sy prioriteite te herrangskik, veral wat die begroting betref en dat ons vorentoe sal kan sien, dat meer geld veral ten opsigte van kapitaal van die regering se kant af sal kom.
Ons moet ook nie dink dat ‘n spoornetwerkstelsel of ‘n padnetwerkstelsel net die huidige generasie se verantwoordelikheid is nie. Dit kan oor meer as een generasie versprei word. Daarom wil ek voorstel dat ons ook nuwe uitgifte van staatseffekte moet oorweeg, om die kapitaal te bekom om ons land se vervoerstelsel reg te ruk, soos wat hy behoort te wees.
Dit laat my met net een minuut oor. Ek is spyt dat die agb Minister nie na die padongelukfonds in meer detail verwys het nie, want werklikwaar, daar gaan dinge baie sleg. Voor Scopa is daar getuig, en die Ouditeur-generaal het ook verslag gelewer, dat die padongelukfonds bankrot is en dat hy elke jaar agteruitgaan. Nieteenstaande die feit dat die personeel van 300 tot 1 000 vermeerder is, gaan dit nog steeds agteruit.
Daar is alreeds begin om die Skerpioene in te roep, daar is reeds buitestaanders aangestel om die dienste te lewer, en daar is ‘n gedeeltelike privatisering van die ondersoeke na korrupsie en bedrog. As dit aanhou slegter gaan elke jaar, wat moet ons dan doen? Natuurlik moet ons dan ook na die administrasie en die finansiële bestuur van die fonds kyk.
Ek wil voorstel - en mnr Cronin gaan weer sy kop skud - dat ons die administrasie en die finansiële bestuur van die padongelukfonds privatiseer. Laat ons kundigheid inkry om daardie fonds ordentlik te bestuur. Die raad moet bestaan en moet sorg dat beleid uitgevoer word. As daar nie kundigheid is nie, moet ons dit van buite af inkry. Motoriste is keelvol om aan te hou om heffings te betaal op brandstof en hulle sien eenvoudig net hoe daardie geld gesteel word. Daar sal ‘n weerstand kom en daarom pleit ek ook vir privatisering van die fonds. [Applous.] (Translation of Afrikaans paragraphs follows.)
[Dr W A ODENDAAL: Mr Chairperson, it is a pleasure for me to follow on the jovial hon member Mbombo and I would like to follow on her theme, namely that we in South Africa should endeavour to teach the public to make more use of our rail network and be less dependent upon our road network. This is a very important topic.
I would also like to thank the Minister for making his speech available to us beforehand. I appreciate this. This enables us to have a debate instead of us delivering sterile speeches here; and I thank him sincerely that he could do this today.
The day is dawning for economic development in South Africa, because it is the first time in twenty years that a Minister of Transport disseminates the message that he really cares and that the government really cares about the transport network in South Africa. This is the basis upon which economic growth and the creation of wealth will take place in the future.
I may have a few objections and we may still see a few problems, but we would like to speak to the Minister about that. It is not really necessary that we should be negative about transport in South Africa and so also about everything else in South Africa. Let us try and be positive and make certain proposals which could make South Africa work, as well as Africa.
Firstly, our thanks to the Minister for the announcement he made about the Free State and the important main road from Kroonstad across Welkom to Bloemfontein. This will really ease the heavy traffic across the Winburg- Ventersburg road and make it a lot safer for motorists. It is a fact that the public, whether they are passengers and whether it is persons transporting goods, prefers to use the road network in South Africa more and more and to make less use of the rail network, because over the past twenty years - and the hon Cronin is correct, also under the previous government - not enough attention was given to the maintenance and the extension of especially the rail network system. But this has continued since 1994 to the present day, that there are signs that greater attention will be given to improve the rail network.
There must be a reason why the public is turning its back on the railway - whether as commuters or as people who use the railway in other ways. The rail network has deteriorated to such an extent and has built up such a backlog that it has become unusable. But let us be honest with one another, there is also a management problem. There are no good services. Simply no good service is delivered to the public. This is why they rather prefer to use trucks to transport their goods. I am therefore pleading this to the hon Minister and I have appreciation for the planning that he has announced to make finance available for what is necessary to repair especially the rail network.
But I am afraid that what the Minister said and the planning announced by the Minister of Public Enterprises to make money available - for example the consolidation of Coalink to apply cross subsidisation within the railway will simply not be enough. For this reason I am pleading that the Minister should consider a further privatisation of Transnet especially for the extra capital in the system that is so essential.
Mr Cronin is shaking his head, because he likes the idea that all the initiative should be in the hands of the Government. Allow the private sector to also take initiative, because then it will fare better with South Africa. It is not merely for the sake of capital injection that I am pleading further privatisation, but also for the sake of better management which will come in from the private sector.
I am not saying that the Government should allow all the initiative to go out of their hands. The Government should retain the controlling and decision-making shares in the hands of the Government, because it is the responsibility of the Government to see that there is a proper transport network in the country.
Privatisation, however, will not be enough to provide for the capital price. We will need a repriotisation in the budget. During question time on Wednesday the Deputy Minister referred to the fact that the Government is rearranging its priorities, especially with regard to the budget and that we will see in future that more money will be coming from Government side especially in terms of capital.
We should also not think that a rail network system or a road network system is the responsibility of the present generation only. This can be spread across more than one generation. For this reason I want to propose that we also consider new issue of state stocks, to get the capital to get our country’s transport system in order, as it should be.
This leaves me with only one minute. It is a pity that the hon Minister did not go into more detail when he referred to the Road Accident Fund, because things are really going poorly there. Scopa received testimony, and the Auditor-General has also delivered a report, that the Road Accident Fund is bankrupt and that it is deteriorating every year. Notwithstanding the fact that the personnel of 300 were increased to 1 000 and it is still deteriorating.
The Scorpions were already called in, outsiders were already appointed to render services, and there is a partial privatisation of the investigations into corruption and fraud. If it continues to worsen every year what should we do then? Surely we should then also look at the administration and the financial management of the fund.
I want to make a suggestion - and Mr Cronin is going to shake his head again - that we privatise the administration and the financial management of the Road Accident Fund. Let us get expertise in to manage that fund properly. The board should exist and see that policy is implemented. If we do not have the expertise we should get this from the outside. Motorists are fed up of having to pay levies on fuel and they simply see how that money is being stolen. We will get resistance and I am therefore pleading for the privatisation of the fund. [Applause.]]
Mr T ABRAHAMS: Chairperson, first of all allow me to apologise on behalf of Mr Mkono, who is our UDM representative on the Transport Committee. He is unavoidably absent. It does give me the opportunity, though, to speak on a subject I am very much interested in. The Ministry has a hard-working Minister and an efficient chairman, even though he does not like privatisation. But there are dedicated officials in the department who can be trusted to do the best they can.
The Budget Vote on transport must aim to be a manifestation of the department’s primary goal, which it states as being to facilitate the provision of an affordable, safe and sustainable national transport system which is responsive, accountable and transparent to all key stakeholders.
This noble goal has, in the past year, been put to the test on various occasions. There have been successes, such as the Drive Alive campaign, for which the Minister must receive credit. Unfortunately, there have been failures when transport for the people of South Africa has been neither affordable nor safe. The spate of deadly train accidents in the past year bears testimony to this.
As for being responsive, accountable and transparent, the incidents of commuter violence that have occurred have raised serious questions about the interface between commuters and the service providers. We must condemn public violence of this nature that costs the taxpayer million of rands and places lives in danger and disrupts services. We cannot deny that in any group of people, there will always be those who see violence as the only solution, but, at the same time, we cannot write these occurrences off as spontaneous outbursts of mass irrationality.
Surely there is a deep well of frustration and anger with late, irregular or shoddy service, not to speak of the robbery and violence that commuters experience on trains. The department ignores this at its own peril. We are not merely dealing here with a faceless mob, but with people, mostly very poor, who depend on public transport to get to jobs in time - jobs which they will lose if trains continually delay their timeous arrival at work. These people have children who go hungry if they lose their jobs. That is mainly why regrettable instances of public violence have occurred. The announced establishment of a specific police unit is a long called-for step and a very welcome one.
In the light of the above, the UDM welcomes the increasing trend towards expenditure on infrastructure in this Vote, especially the additional R140 million for rail infrastructure. We call on the Minister to ensure that these increases translate into real and tangible differences for the millions of people who depend on rail transport. More importantly, we call on the Minister of Finance to wake up to the need to look again at the vital and immediate need to substantially increase the Transport Budget.
The continuing woes of the SA Rail Commuter Corporation remain cause for concern. We appreciate that the department has intervened, and we can only express the hope that these interventions will result in the massive debts and staggering infrastructure backlogs being addressed in a sustainable fashion.
The Minister of Transport has, along with the Minister for Public Enterprises, presided over a sector with problematic corporate governance issues. The Anglo saga of last year, which I see in today’s Mail & Guardian is still haunting us, as well as the recent issues around the suspended CEO of Spoornet, are examples of this. Continuing revelations of corruption and abuse involving the Road Accident Fund also fall into this category. [Time expired.] Mrs M P COETZEE-KASPER: Chairperson, hon Minister Prince Omar, members of the ANC on my right and members on my left, I believe that I can fly …
… want almal van ons wat hier sit, maak gebruik van vliegtuie. [… because all of us sitting here make use of aeroplanes.]
Our role as the Portfolio Committee on Transport is one of oversight of the Department of Transport and its activities. The budget is one of the things that we are obliged to interrogate -how much money is allocated and how it is spent. Is it spent on projects which seek to reverse the legacy of apartheid? Is it addressing the issues which are relevant in our society today? I will therefore use this opportunity to set out the issues which I think we as the portfolio committee will be looking at during the course of the year.
As the portfolio committee, we agreed that we should debate this topic thoroughly, examine our realities as a nation, raise issues without prejudice or fear and come up with solutions that can be implemented. There should be timeframes for funding, where applicable. Contributions must be positive.
The policy framework is the White Paper on National Transport Policy: Moving South Africa. The body of law that we have at the moment, including our regulatory framework, must be examined and contributions must include proposals for corrective measures where necessary.
President Mbeki reminded us that we shared a common identity as compatriots in this country. At one point the President said to us that ultimately we share a common destiny, not only as human beings but also as Africans. President Mbeki has consistently pursued an agenda that has sought to unite us as South Africans and Africans towards a future that is bright for all of us and when he declared that ``Africa’s time has come’’, we all cheered. This year, on the occasion of addressing us as a nation, the President reminded us all of how far we have come as a nation. The legacy of apartheid is still upon us. Our first responsibility in this regard is the need for us to recognise the reality that, as a people, we do share this common legacy. Secondly, we had to make the determination that this was a legacy we did not desire and were therefore committed to eradicate.
This immediately brought into sharp focus the concepts of co-operation, nation-building and of cultivating genuine partnerships in whatever form these may take. It says to us as compatriots that hatred must end. Racism, racial discrimination, xenophobia and all related intolerances must be replaced by the establishment of a truly nonracial country.
What is our role as transport service providers in all these cases? Minister Omar is also concerned about the following: safety on planes, ships and all modes of transport; transport as a catalyst for the promotion of economic development and growth in our region and in our continent; law enforcement and compliance; infrastructure development or upgrading; education and training; skills transfer; integrated and proper planning process, and the impact of HIV/Aids in our sector and our region.
Our sector was identified as one of the high-risk sectors when one speaks of HIV/Aids. This syndrome depends on the mobility of people to spread. Wherever we go, we take our sexual organs with us and quite frankly, as human beings, it appears we have kept our sexual organs very busy indeed. We will not reap the benefits of freedom if we do not, as human beings, exercise some restraint in this area.
On a more serious note, as a sector do we see ourselves as affected by this epidemic? What is the economic impact of this syndrome on our companies? How many of us are infected by HIV/Aids? What is our response, as a sector, to the infrastructure related to care and support systems for ourselves, our employees and also our children?
Again, there are just a few issues that we want to flag for this House to consider. Another important issue is one which deals with regulated competition between all modes of public passenger transport for Nepad.
My eerste rede is nie net gemik op Suid-Afrika alleen nie, maar die hele kontinent van Afrika. Ons President is op die regte spoor deur Nepad te stig. Die Yamoussoukro-besluit was daarop gebaseer om alle Afrika-lande te verenig ter uitbreiding van die ekonomie, deur vervoermarkte te verstewig. Dit is gebaseer op werkversekering, in veilige lugruin en gesamentlike eienaarskap.
Teen hierdie agtergrond gesien, moet ons die volgende bereik: Effektiewe, eweredige vervoer en kommunikasie, wat ‘n voorwaarde is vir elke ontwikkelings proses, die globalisering van dienste en van magspelers deur tegnologie, ontwikkeling en marktebeweging wat die geskiktheid van lugverkeer, die hantering van die natuur in die SAOG-lande uitdaag, die ondersteunende skeep- en lugvaartinfrastruktuur binne ons lugvaartsisteem wat sy perke bereik en, vir sover dit veiligheid betref, al hoe sneller, die punt van uitputting bereik. Daar is ook ‘n tekort aan mensekennis en -krag op die gebied van burgerlugvaart en skeepvaart. Gesien teen die agtergrond van die ooreenkoms wat op 12 Julie 2000 in Togo aanvaar is, sit ons nog met wetsontwerpe van 1944 en 1979, wat gelei het tot die stigting van die SASAR in 1958. Hierdie wetsontwerp bepaal dat hy moet optree as die relevante liggaam namens die Departement van Vervoer aangaande maritieme en aeronautiese reddingsoperateurs.
As ons kyk, is ons Burgerlugvaartowerheid betroubaar in die internasionale arena er dit geld ook vir Samsa, maar daar is nog groot probleme aangaande opleiding, transformasie, geslag en die boweral ‘n tekort aan mensekrag. Bogenoemde word gekniehalter deur die klein begroting vir alle vervoerbelange. Ons sal moet druk uitoefen op die Minister van Finansies - ongelukkig is hy nie hier nie - om te kyk na die belangrikheid van die rol wat vervoer speel, nie net binne Suid-Afrika nie, maar in al oor die Afrikalande.
Vervoer is die kruks vir ekonomiese en sosiale verbetering. Om by ‘n skool uit te kom, moet ‘n pad gemaak word, hetsy ‘n grond- of teerpad. Om produkte uit te voer, moet daar voorsiening gemaak word vir veilige vertrek en aankoms. Het sy oos, wes, suid of noord, in die lug of op die waters vir alle Ministers binne of buite, ingesluit die President lugvervoer, moet so veilig wees dat hulle kan terugreis na hul bestemming en familie.
Vervoer op see is net so belangrik. Visserbote verongeluk en die bemanning verdwyn as daar nie genoeg reddingsoperasies is nie. Hoeveel kinders is daar sonder ‘n pa? Vroue sonder ‘n man? Gesinne sonder ‘n inkomste? Net verlede week het een van ons sporthelde en die vlugbemanning verongeluk. As ons dit kan verhelp, moet dit die laaste drie mans wees. Ons het geld nodig vir die opleiding van vroue, veral die skoolverlaters. Transformasie wat gepaard gaan met kennis vir opleiding is nodig. Ons het vrouens nodig vir bote, sowel as by die bemanningspunte van veiligheidsbeheer.
Graag bedank ons mnr Trevor Abrahams en mnr Dumisane Mtuli vir hul wonderlike toewyding sonder dat hulle genoeg geld het. Ons bedank ook die NSRI. Hier wil ek dit op rekord stel dat alle Ministers, asook alle LPs, ‘n bydrae moet lewer vir minstens twee jaar, wat dan R200 per maand sal beloop, aan die NSRI. Hierdie manne en vroue doen vrywillige reddingswerk sedert die totstandkoming van die instituut.
Ten slotte wil ons net dankie sê aan Sasar, Sanra, ACSA en alle instansies binne die vervoerbedyf vir hul toewyding en verdraagsaamheid.
Welkom aan mnr Philip Taaibosch van Bronville in die Vrystaat. [Applous.] (Translation of Afrikaans paragraphs follows.)
[My first reason is not aimed at South Africa alone, but at the whole continent of Africa. Our President was on the right track in establishing Nepad. The Yamoussoukro decision was based on the idea of uniting all countries in Africa to extend the economy, by strengthening the transport markets. This is based on job security, a safe airspace and joint ownership.
Against this background we must achieve the following: effective, proportionate transport and communication, which is a precondition for every development process, globalisation of services and power players through technology, development and market movement, which challenges the effectiveness of air traffic, the handling of nature in the SADC countries, the supporting maritime and aviation infrastructure within our aviation system, which is reaching its limits and is ever more, rapidly approaching the point of exhaustion as far as safety is concerned.
There is also a shortage of human knowledge and manpower within the civil aviation and maritime sphere. Against the background of the agreement adopted on 12 July 2000 in Togo, we are still left with Bills of 1944 and 1979, which led to the establishment of SASAR in 1958. This Bill stipulates that it should act as the relevant body on behalf of the Department of Transport with regard to maritime and aeronautical search and rescue operators.
If we look at it, our CAA is reliable in the international arena, and so is Samsa, but there are still great problems with regard to training, transformation, gender and, most of all, a shortage of manpower. The above is exacerbated by the small budget for all transport interests. We will have to bring pressure to bear on the Minister of Finance - unfortunately he is not present - to look at the important role transport plays, not only within South Africa, but in all African countries.
Transport is the crux of economic and social improvement. In order to get to a school a road must be made, be it a gravel road or a tarred road. To export products, provision must be made for safe departure and arrival. Regardless of whether it is east, west, south or north, in the air or at sea, for all Ministers out there or in here, including the President, air travel should be so safe that they can travel back to their destinations and families. Transport at sea is equally important. Fishing boats have accidents and their crews disappear if adequate rescue operations cannot take place. How many children are there without a father? Women without a husband? Families without an income? Only last week one of our sporting heroes and the flight crew died in an accident. If we can help it, these should be the last three men. We need money for the training of women, especially school-leavers. Transformation accompanied by knowledge for training is needed. We need women for boats, as well as at the points of safety control.
We would like to thank Mr Trevor Abrahams and Mr Dumisane Mtuli for their wonderful dedication in the face of insufficient funds. We also thank the NSRI. I want to place it on record here that all Ministers, as well as all MPs, should make a contribution, for at least two years, of R200 per month to the NSRI. These men and women have been doing voluntary rescue work since the establishment of the institute.
Finally we want to thank Sasar, Sanra, ACSA and all institutions in the transport industry for their dedication and tolerance.
I also want to welcome Mr Phillip Taaibosch of Bronville in the Free State. [Applause.]]
Ms M A SEECO: Modulasetilo, bua le yone mokgweetsi, goroga o tshela. Lobelo
lo a bolaya. Tsotlhe tse re ka di fitlhelela fela fa re agile ditsela tsa
mo metseng, tota ditsela ka kakaretso, re dirisa Letsema. [Chairperson,
Talk to it'',Arrive Alive’’ and ``Speed kills’’. We can achieve all
these only if we construct roads in rural areas, and roads in general,
through Letsema.]
The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Hon member, I think you did not give any prior notice that you will speak in Setswana. Therefore, there is no interpreting service. You may continue, but there is no interpreting service.
Ms M A SEECO: The Arrive Alive campaign is a year-round, 24-hour per day campaign. Seventy percent of road deaths are unacceptable. Factors which have exaggerated the problem in South Africa are the lack of infrastructure. South African road accidents cost approximately R14 billion a year to the economy. We appeal to the road users, both motorists and pedestrians, to travel slowly and exercise restraint when on the roads.
The budget allocation of the Department of Transport for the year 2002-03 financial year amounts to R5,3 billion. It represents a 6,8% increase. Transport, as a service provider, should create jobs for all South Africans. Transport creates access to all services required on a daily basis. Immediate action needs to be taken to address transport safety challenges in the transport industry and infrastructure between rural and urban areas.
In South Africa, transport lacks integration, acceptable safety standards and sustainability. However, the budget creates hope towards addressing the challenges facing the transport sector in South Africa. We support the budget. [Time expired.] [Applause.]
Miss S RAJBALLY: Chairperson, hon Minister, one of the speakers could not see the Minister because he is not wearing the attractive outfit he had on last week!
This is one department that the MF believes has more than just two eyes. Its concerns and duties rest over such a broad spectrum that its success deserves applause. Transport covers our roads, sky and even our sea.
We have seen the problems encountered by the department, for example cable theft, escalating accidents, taxi wars, road safety and travelling costs. However, we are assured that the public is pleased by the 13c reduction in fuel price and looks forward to or would appreciate a further reduction.
The MF admires the department’s work of not just making travelling safer, but also promoting a new-generation means of commuting, clearly keeping an eye on South Africa’s present and future transportation needs.
It has been noted that traffic patrol officers have been increased on our roads, creating a positive pressure on drivers to abide by the road regulations. This in turn promotes safe roads for all. Another notable shift would be to work on the roads at night rather than during the day. This will certainly steer away traffic congestion.
The MF is, however, concerned about the high numbers of fatal accidents. What is even more tragic is that these statistics have not really diminished. The figures provided by the department during the year 2000 show that fatal accidents in all provinces amounted to 1 068. In December 2001 the figure was a frightful 8 478. Statistics for the following year are not as yet available. The majority of these accidents were reported from the following provinces: Gauteng, Western Cape, KwaZulu-Natal, and the Free State.
However, it is more mind-boggling to note that the majority of crashes are unreported. The MF is seriously concerned by this and seeks the department’s earnest co-operation in reducing the potential of these accidents. The main contributory factors to these statistics are speeding, fatigue, poor visibility and, of course, alcohol in terms of overturned vehicles. Unsafe overtaking, poor visibility and fatigue contributed to head-on collisions. Other accidents were as a result of incidents involving pedestrians.
The initiative to make transport safer and more efficient is a duty …
The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Hon member, your time has expired.
Miss S RAJBALLY: We support the Budget Vote. [Applause.]
Mr S PILLAY: Mr Chairperson, if rail is to become a preferred passenger commuter service, then passenger using such service must be given reassurances of their safety and timeous arrival. A very high crime rate on the trains, coupled with a number of serious accidents, has caused major economic and social problems. Commuters sometimes do not have any transport options other than rail and it is unacceptable that they continue to arrive late for work through no fault of their own.
Cable theft and systematic breakdowns are major causes of this phenomenon. This is having a major impact on the economy of our country through lost time and production and commuters are now venting their frustrations by burning our limited coaches and infrastructure. This sort of behaviour has to be curtailed and the reintroduction of a dedicated railway police will help in preventing such incidents.
I will comment on road safety in general and commend the Minister and his department for the publication, The Road to Safety 2001-2005. It has been extensively researched through an intensive process of public and stakeholder participation and has clearly identified critical areas of road safety, the road environment and the road user. Many of the initiatives proposed will lead to strengthening of legislative and regulatory measures in order to make our roads safer and in so doing, reduce the unacceptably high fatality rate.
Before this can become a reality, the problem of visible policing and capacity needs to be addressed. It is presently estimated that an additional 8000 traffic police need to be employed to cater for the present road users - a cost to the economy of approximately R14 billion per year. The Arrive Alive campaign had limited success in reducing road carnage and the recent Easter statistics prove this. The Minister has a massive task and only by ensuring that his provincial counterparts have the capacity to fulfil this plan of enforcing the law will he succeed in any way.
Among other matters that the Minister needs to give attention to is defective equipment at certain airports. This is a matter of great concern. Another glaring need is that the security staff needs to be trained to act professionally, within the Constitution. Numerous complaints have been made about security staff at the Cape Town International Airport, as reported in the media.
The SA Rail Commuter Corporation is in dire need of proper financing and the current budget does not meaningfully deal with this. It is my obligation to tell the hon the Minister forthrightly that he needs to remedy that matter. It must be done without delay. Unless he does that, we will need to deal with more rail accidents. In short, the acting CEO of the SARCC stated that he is facing a national crisis and unless adequate resources are provided, we would have to deal with a catastrophe that might be too ghastly to bear.
Another matter that has frankly become ridiculous is that of Santaco and who manages the electron management system. Because of that, five other Ministers are brought into the process. When will this matter be resolved?
A lady in Mitchells Plain had this to say about the Road Accident Fund: I was involved in a car accident as a result of which both my legs had to be amputated. I claimed from the RAF. I was awarded some money and I received R15 000. I cannot work anymore. What will I do when this money is finished?
What is the RAF doing? The Minister of Finance must be told in very clear terms that the budget is inadequate to effectively manage the problems that both my colleague and I have outlined. I do appreciate that the Minister has a very difficult task. However, he is the Minister of Transport and he should deal with these matters as they are his responsibility. The DP wants a fully functional and integrated transport system and if the Minister is willing to deal with these matters, he has our full support. [Interjections.]
Salaries of traffic officers need to be improved. The Civil Aviation Authority is starting to come into its own; however, much work needs to be done. We already have five Ministers involved in transport, yet it would make more sense to have one Minister responsible for transport, so that lines of accountability can be clear and decision-making streamlined. Now transport is a minefield. [Time expired.][Applause.]
Mr N E MAGUBANE: Chairperson, hon Minister of Transport, colleagues, my speech will be on recapitalisation.
The history of the South African minibus taxi industry has been characterised by many problems, such as violence, poor service to commuters and lack of professionalism. The lack of regulation, effective operating licensing procedures and minimum standards of operation are some of the problems highlighting the fragmentation of the minibus taxi industry.
The need to transform the taxi industry was identified as one of the Department of Transport’s priorities. Since 1994 the Government has been in consultation with the taxi industry in order to transform the industry to achieve a legitimate, safe, viable, reliable and sustainable public transport system. The taxi recapitalisation process has raised a lot of debate among stakeholders about the costs-versus-benefits of the process. Against this background, this paper outlines developments in the taxi recapitalisation process.
The minibus taxi industry is fragmented and has a number of problems. The taxi industry has been functioning without any formalisation and regulation for many years. As a result, there has been a lack of control of minimum standards among operators fighting over lucrative routes.
Poor commuter service, overloading, speeding and unroadworthy vehicles that often cause fatal accidents, as well as the lack of training for taxi operators about customer service, are common characteristics of the taxi industry.
Presently there are about 126 000 minibus taxis, many of which are in over nine years in age. As a result, the majority of these taxis are in a poor condition, which causes a serious safety hazard.
This situation requires remedy, particularly when taking into account that nationally about 65% of commuters use minibus taxis on a daily basis. Recapitalisation is Government’s strategy to transform the industry by means of a registration, formalisation and regulatory process.
Furthermore, the taxi industry’s restructuring process was initiated as a response to problems confronting the industry. The problems of the taxi industry developed to a situation where there was a high rate of loss of life and a general disrespect for law and order. This situation often led to commuters being victims of violence.
In 1994, when the democratic Government came to power, operators called for Government’s intervention on matters such as subsidies, fuel and soaring vehicle prices. Commuters also called for Government intervention to enforce minimum safety standards and regulation of operators.
In 1995 a national task team was set up. The N333 was made of representatives of the taxi industry, drivers, civic organisations, trade unions and Government. In 1996 the N333 adopted a set of final recommendations. The following were the major recommendations: One, the industry had to be organised on a democratic basis; two, the industry had to be formalised; three, illegal operators had to be given a chance to be legal - a very important point; four, the industry had to be properly regulated and there had to be effective law enforcement; five, economic empowerment projects had to be implemented; six, the concerns of drivers had to be addressed.
Implementation of these recommendations formed the basis of the transformation of the minibus taxi industry. A memorandum of understanding between Government and the leaders of the taxi industry was entered into to implement the National Taxi Task Team, NTTT, recommendations. After the formation of the NTTT and the signing of a memorandum of understanding, processes to democratise and formalise the industry followed. As a result, the SA National Taxi Council, Santaco, was eventually formed in 1998. The formation of Santaco was a significant achievement in democratising the taxi industry through a legitimate structure.
One of the weaknesses of the taxi industry is the lack of professionalism and knowledge of customer-care principles among operators. In many respects, this is attributed to the fact that taxi operators lack formal training in managing their businesses and commuters in a professional manner.
As part of the recapitalisation process, the Government, in consultation with the taxi operators, identified the need to formalise the industry in order to achieve service of high standards.
On Sunday 14 July 1996, the first minibus taxi training pilot project was launched in Durban as per recommendation of the NTTT. The course was designed for taxi drivers, operators and association officials accredited by the Department of Labour. The course entailed training in leadership skills, business skills and defensive driving skills. Certificates were presented to the participants. This indicated the positive response and commitment of the industry and Government to transforming the taxi industry into a safe, organised and viable industry. According to the Department of Transport, the course will be initiated in due course in other provinces.
The operation of illegal minibus taxis does not only pose a safety hazard, but it also leads to the fragmentation and chaos in the industry. It is for this reason that the Government identified the need to ensure that minibus- taxi operators were legal operators who complied with the minimum standards, as required by the legislation.
On 15 March 2001, the Be Legal'' campaign was launched. The aim of the
campaign was to provide an opportunity for illegal minibus operators to
apply for operating licences in terms of the National Land Transport
Transition Act, Act 22 0f 2000. As at March 2001, there were approximately
36 000 illegal minibus taxis in the country. The aim of theBe Legal’’
campaign was to initiate a process of subjecting the taxi industry to
regulation and effective law enforcement.
The objectives of the ``Be Legal’’ campaign were the following: to create an opportunity for qualifying minibus-taxi operators to be legalised; to create a positive climate for the formalisation and democratisation of the taxi industry; to create positive conditions for the smooth implementation of the taxi recapitalisation plan; and to create positive conditions for the economic empowerment of the taxi industry and rationalisation of public transport operations.
The campaign was on for a period of seven months, from 15 March 2000. During this process, the Minister and the MECs interacted with the public, particularly drivers, operators and commuters. As a mechanism supportive of the creation of a climate conducive to the campaign, ineligible taxi operators were exempted from prosecution and the impounding of their vehicles, only being liable for the offence of operating a taxi without a valid permit. Applicants had to complete a special application form. These forms and information sheets were available at the transport board, provincial taxi offices of the registrar of the points as determined by the province. Special arrangements were also made to supply the forms at municipal offices. In order to give the stakeholders enough time, the campaign continued until the end of April 2002.
According to the Minister of Transport, after the illegal campaign there will be zero tolerance for operating without licences. This is intended to ensure that all taxi operators are regulated to achieve a safe, reliable and sustainable public transport system. In consultation with the taxi industry the Government set the criteria for legislation of taxi industry.
The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Hon member your time has expired.
Mr N E MAGUBANE: The ANC supports the Budget Vote. [Applause.] The DEPUTY CHAIRPERSON OF COMMITTEES: Order! The hon the Minister of Transport, with the additional titles that were conferred on him by two hon members. [Laughter.]
The MINISTER OF TRANSPORT: Chairperson, allow me first to thank all those who participated in this debate. I think that the contributions have been of a high order and I have been particularly impressed by the inputs which were made dealing with the current problems, and the appeal that we must all work together to resolve those problems.
I am not going to respond to each of the contributors individually. What I want to do is to refer to some of the issues which have been raised during the discussions. The first is the issue of the funding of the Department of Transport. A number of hon members referred to this particular issue as a big problem, i.e that the department is underfunded and therefore we are unable to fulfil our mandate. I want to say to members that I have never used the underfunding as an excuse. I did not want to make a scapegoat of the lack of funding or the inadequate funding which we have, even though it is true, because I believe that all departments complain about their resources and their funding. Everyone wants more money: education, health, water, sanitation, there is a cry for money at many levels. I think that we should fight for more funding.
I have drawn attention to our problem in rail and the fact that if we are not assisted we would have to reduce services. The same applies to our bus services. In our baseline budgetary allocation inadequate provision was made for escalation costs and this is an issue that we have drawn attention to for some time, but unfortunately without success. So the issue of funding is a big problem. We need to continue talking about it and, of course, I will agitate for more money.
However, just in terms of the figures, this year for example, our total budget is R5,045 billion and of that, R4,7 billion consist of transfer payments. That means that the department is then left with R284 million to deal with its other requirements. The budget for the 2002-03 financial year is R5,3 billion, of which R5 billion is transferred to the other agencies, who have to perform certain functions. So it is a problem and we need to talk about it.
At the same time, I believe that we must do what we can within the limited framework of our budget. I think that at many levels there has been some progress, and I have reported on some of this this morning. But if one looks at rail for example, which is an issue which is very big and a number of speakers have referred to it, there has been progress. At many stations there has been an improvement despite the lack of funding. Hon members have referred to this way - for instance, the new coaches which we are seeing on our railway lines.
Then there is an issue that very few people often refer to. At stations all over our country there are hawkers, people who fall in what one can refer to as the survivalist sector. What we have said with regard to that sector is that they should not be driven off our stations. Yes, they should not be on our stations because that poses a safety risk, but provision should be made for them. Now what one finds at many stations is that special provision has been made for informal traders. Many of them are flourishing, they are moving into the formal sector. So we are making a contribution towards economic activity amongst our people all over our country.
If one goes to Mamelodi Gardens, or to Cape Town station or to Mowbray station one will find that adequate provision has been made for them. I mentioned interchanges. If one goes out this door and goes to Cape Town station, one will see an interchange which is very well managed. Those who participate in transport - taxis, buses, train operators and those responsible for security and those responsible for management - work together in that they have a committee and they manage the interchange. I see some of the representatives of the interchange here today. I want to compliment them on this. If one goes to Mowbray station or Maitland station one will find exactly the same thing. There is a new management coming up at our transport interchanges which is laying the basis for the future intermodal approach which is so important to us.
Our signalling systems are being improved. The CEO of the SA Rail Commuter Corporation has drawn attention to many problems, and yet he and his team have taken steps to ensure that with the limited funding that they have there is a programme to improve the signalling systems. So one will find that there is a reasonable amount of improvement despite the problems that we have with funding.
Secondly, regarding the Road Accident Fund, one must not make reference to Christmas parties and wastage when there is no evidence of such things. People make wild allegations, but there is no evidence of that. As the hon Cronin has pointed out, the chair, the CEO and management today have played a big role in attempting to bring under control the problems which exist in the Road Accident Fund.
Clearly, we cannot take basic steps; we cannot take big steps now when, in fact, the commission on the Road Accident Fund has not yet reported. We hope that the commission will report soon. We will consider the recommendations of the commission, and then see what steps have to be taken to transform the Road Accident Fund, as is required.
Thirdly, I want to speak about the taxi industry. Some reference has been made to it. I want to actually salute the industry. If one looks at the progress that that industry has made over the last couple of years, then one can only describe it as phenomenal.
I am very happy that the president of the SA National Taxi Council is here personally today, Mr Thomas Muofhe, with his executive. The Western Cape leadership is here [Applause]. I must say to hon members that they went out of their way to be here. He comes from the Limpopo province - and is here today because he considers this important.
When we had our Arrive Alive road safety campaign over the Christmas holidays, he accompanied us to some of the sites where we were. When taxis were stopped he went to speak to the taxi drivers. His colleagues did the same and interacted with them to persuade them to act in a particular way.
They have gone all over the country to reverse the culture of violence which has been besetting the taxi industry. They have been promoting road safety campaigns and insisting that taxis must be fit to be on the road. So they have been playing a very positive role in this. [Applause.]
In our recapitalisation programme we have the full support of Santaco. In fact, at the conference in September they initiated and unanimously passed a resolution supporting Government’s recapitalisation programme. We meet regularly to talk about recapitalisation programme. The last issue we are talking about now is the electronic management system. There are some very useful proposals which are on the table. Some of them have emanated from Santaco. There is a wonderful proposal from them which we are considering at present. We will be meeting them, to resolve that issue, and the recapitalisation programme will proceed speedily.
With regard to the NSRI, I want to thank the hon Coetzee-Kasper for making the point that it performs a wonderful role and deserves our support. I myself have attended many of their events and I can say to members that the volunteers who provide free services in their own time to the public at great risk to themselves, is a wonderful thing to see. So I think it is very important to give them our support.
There are a number of other matters which have been raised. What I will do is to get a record of proceedings, Hansard, as I normally do each year, and then respond to hon members with regard to the many issues that they have raised, but for which there is no time to respond now. [Applause.]
The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Thank you, hon Minister. I am quite certain that members will appreciate your response to the concerns that they have raised.
Debate concluded.
The House adjourned at 13:16. ____
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
ANNOUNCEMENTS:
National Assembly and National Council of Provinces:
- The Speaker and the Chairperson:
(1) The Joint Tagging Mechanism (JTM) on 6 June 2002 in terms of
Joint Rule 160(6), classified the following Bill as a section 76
Bill:
(i) Disaster Management Bill [B 21 - 2002] (National Assembly
- sec 76).
(2) The Minister for Justice and Constitutional Development
submitted the Wysigingswetsontwerp op die Grondwet van die
Republiek van Suid-Afrika [W 16 - 2002] (National Assembly - sec
74) and the Tweede Wysigingswetsontwerp op die Grondwet van die
Republiek van Suid-Afrika [W 17 - 2002] (National Assembly - sec
74) to the Speaker and the Chairperson on 7 June 2002. This is the
official translations of the Constitution of the Republic of South
Africa Amendment Bill [B 16 - 2002] (National Assembly - sec 74)
and the Constitution of the Republic of South Africa Second
Amendment Bill [B 17 - 2002] (National Assembly - sec 74), which
were introduced in the National Assembly by the Minister on 19
April 2002.
(3) The Minister for Provincial and Local Government submitted the
Wysigingswetsontwerp op Plaaslike Regering: Munisipale Strukture
[W 22 - 2002] (National Assembly - sec 75) to the Speaker and the
Chairperson on 7 June 2002. This is the official translation of
the Local Government: Municipal Structures Amendment Bill [B 22 -
2002] (National Assembly - sec 75), which was introduced in the
National Assembly by the Minister on 15 May 2002.
National Assembly:
- The Speaker:
The following papers have been tabled and are now referred to the
relevant committees as mentioned below:
(1) The following paper is referred to the Portfolio Committee on
Public Service and Administration, the Portfolio Committee on
Justice and Constitutional Development and the Portfolio Committee
on Safety and Security:
A review of South Africa's National Anti-Corruption Agencies,
Public Service Commission [RP 216-2002].
(2) The following paper is referred to the Portfolio Committee on
Public Service and Administration:
Ethics Survey for 2001 - Ethics in Practice, Public Service
Commission.
COMMITTEE REPORTS:
National Assembly:
- Report of the Portfolio Committee on Justice and Constitutional Development on the International Criminal Court Bill [B 42 - 2001] (National Assembly - sec 75), dated 7 June 2002:
The Portfolio Committee on Justice and Constitutional Development,
having considered the subject of the International Criminal Court Bill
[B 42 - 2001] (National Assembly - sec 75), referred to it and
classified by the Joint Tagging Mechanism as a section 75 Bill,
presents the Implementation of the Rome Statute of the International
Criminal Court Bill [B 42B - 2001] (National Assembly - sec 75), and
endorses the classification of the Bill as a section 75 Bill.
The Committee wishes to report further, as follows:
1. Territorial jurisdiction of South African courts
(a) Clause 4 of the International Criminal Court Bill deals
with the jurisdiction of South African courts in respect of
the crimes of genocide, crimes against humanity and war crimes
which are created in the proposed legislation. Clause 4(3)
more specifically sets out the circumstances in which the
South African courts will have jurisdiction to hear cases
against persons who are alleged to have committed one of the
crimes in question if the crimes are alleged to have been
committed outside the territory of the Republic, namely -
* if the perpetrator is a South African citizen;
* if the perpetrator is not a South African citizen but is
ordinarily resident in the Republic;
* if the perpetrator is present in the Republic after the
commission of the crime; and
* if the perpetrator has committed a crime against a South
African citizen or against a person who is ordinarily
resident in the Republic.
(b) The approach adopted in the Bill by giving South African
courts extended jurisdiction to deal with crimes which were
committed outside the territory of the Republic is similar to
the Canadian legislation, among others, dealing with the
International Criminal Court.
(c) It is understood that Belgium is the only country which,
to date, has gone even beyond what South Africa and Canada
have done in respect of jurisdiction, namely by giving the
Belgian courts universal jurisdiction to deal with
prosecutions instituted against persons who are alleged to
have committed one of the above crimes. This, in effect, means
that the Belgian courts can deal with cases in which the
crimes in question have been committed by any person anywhere
in the world.
(d) The Committee expressed the view that the possibility of
giving the South African courts universal jurisdiction to deal
with the prosecutions under discussion, should be explored. It
consequently requested the Department of Justice and
Constitutional Development to -
(i) undertake the necessary research in this regard, taking
all the implications of such an approach into
consideration, particularly those of a financial nature
and the difficulties which may arise as a result of
competing requests from different countries; and
(ii) report back to the Committee within six months after
the adoption of this Report by the National Assembly.
2. Enforcement of sentences of imprisonment in South African
prisons
(a) Article 103 of the Statute envisages States indicating
their willingness to accept sentenced prisoners to serve their
terms of imprisonment in their prisons. States which are
willing to accept such sentenced prisoners will be placed on a
list by the Court. At the time of indicating their willingness
to accept sentenced prisoners, States are given the
opportunity to spell out conditions pertaining to such
acceptance. The Court will thereafter, in individual cases,
designate particular States on the list for purposes of
referring sentenced prisoners to serve their sentences. In
order to give effect to this arrangement in the Statute,
Clauses 31 and 32 of the Bill, in brief, provide for the
following:
(i) The Cabinet member responsible for correctional services
must, in consultation with the Cabinet and with the
approval of Parliament, decide, as soon as is
practicable, whether South Africa should be placed on
the list of States willing to accept sentenced
prisoners and determine the conditions pertaining to
such acceptance.
(ii) This decision must be submitted to the Court.
(iii) Similar procedures apply in the event of South Africa
wishing to revoke or vary such an acceptance.
(iv) Once South Africa has been placed on the above-
mentioned list, the Court can designate South Africa as
a State to accept a particular prisoner in a particular
case for purposes of serving a sentence of
imprisonment. This designation is referred, via the
Central Authority, to the Cabinet member responsible
for correctional services, who is given a discretion
whether to accept the designation in question or not.
(v) The Court must be informed as soon as possible
whether the designation is accepted or not.
(vi) A warrant of detention issued by the Court in
respect of a person referred to South Africa for
purposes of serving a sentence of imprisonment is deemed
to be a valid warrant for the purposes of section 6 of
the Correctional Services Act, 1998.
(b) The Committee requests the Cabinet member responsible for
correctional services to initiate an investigation, as soon as
possible, into the possibility of placing South Africa on the
list of States willing to accept sentenced prisoners for
purposes of serving their sentences of imprisonment in South
African prisons and, if so accepting, to determine the
conditions pertaining to such acceptance, as contemplated in
Clauses 31 and 32 of the Bill and, in the process thereof, to
consider all possible implications thereof, particularly those
of a financial nature.
3. Commencement of Bill
The Rome Statute of the International Criminal Court is scheduled
to commence on 1 July 2002. With this in mind, Clause 5(2) of the
Bill provides that no prosecution may be instituted against a
person accused of having committed a crime if the crime in
question is alleged to have been committed before the commencement
of the Statute. The Committee requests the Department of Justice
and Constitutional Development to make every effort to ensure that
the proposed legislation can be put into operation on or before 1
July 2002, also ensuring that the required subordinate legislation
is prepared and promulgated timeously.
Report to be considered.
- Report of the Portfolio Committee on Justice and Constitutional Development on the Insolvency Amendment Bill [B 14 - 2002] (National Assembly - sec 75), dated 7 June 2002:
The Portfolio Committee on Justice and Constitutional Development,
having considered the subject of the Insolvency Amendment Bill [B 14 -
2002] (National Assembly - sec 75), referred to it and classified by
the Joint Tagging Mechanism as a section 75 Bill, reports the Bill with
amendments [B 14A - 2002], and endorses the classification of the Bill
as a section 75 Bill.
The Committee wishes to report further, as follows:
1. During its deliberations on the Bill, the Committee's attention
was drawn to the NEDLAC Report on the Labour Law Amendment Bills
(September 2001) and the fact that amendments to sections 4, 9, 11
and 136 of the Insolvency Act, 1936 (Act No. 24 of 1936), agreed
upon at NEDLAC, were not included in the Bill. These provisions
deal with notice to trade unions and employees of applications for
the sequestration of an employer's estate, service of court orders
on trade unions and employees and the creation of an offence for
failure to give certain notices.
2. According to the memorandum on the objects of the Bill, the
proposed amendments to these provisions require amendments to
other legislation, such as the Companies Act, 1973 (Act No. 61 of
1973), and the Close Corporations Act, 1984 (Act No. 69 of 1984).
The Committee has not taken a stand on this issue, but if this
view were accepted as correct, it would follow that amendments to
the Insolvency Act, 1936, only would apply to the insolvency of
individual debtors and not to corporate debtors. A large
percentage of cases where the problems aimed to be remedied by
these amendments occur, are cases of corporate insolvent debtors.
3. The Committee's attention was drawn to the fact that proposed
uniform legislation that deals with corporate and individual
insolvencies is under consideration by the Department of Justice
and Constitutional Development. The proposed legislation emanates
from reports by the South African Law Commission and the Standing
Advisory Committee on Company Law.
4. The Bill now under consideration by the Committee proposes
amendments to sections 38 and 98A of the Insolvency Act, 1936.
These sections apply to the insolvency of individual debtors as
well as to companies and close corporations that are wound up
because of insolvency. The main objects of the Bill are to further
regulate the effect of sequestration on employment contracts and
the claims for severance and retrenchment pay. The Committee is of
the view that the Bill is not the appropriate mechanism to deal
with notice to trade unions and employees of applications for the
sequestration of an employer's estate, service of court orders on
trade unions and employees and the creation of an offence for
failure to give certain notices. Interested parties have not had
an opportunity to make submissions to the Committee on these
matters and the Committee has not taken any position on the
acceptability of these provisions.
5. The Committee recommends that the Minister for Justice and
Constitutional Development be approached to request his Department
to consider the inclusion of the proposals dealing with notice to
trade unions and employees of applications for the sequestration
of an employer's estate, service of court orders on trade unions
and employees and the creation of an offence for failure to give
certain notices in the proposed uniform legislation that deals
with corporate and individual insolvencies.
Report to be considered.
- Third Report of the Standing Committee on Public Accounts, dated 16 May 2002:
The Standing Committee on Public Accounts, having heard evidence in
August last year from the new Commissioner of Correctional Services and
the former acting Commissioner, now the chief financial officer, on the
Report of the Auditor-General for the 1999-2000 financial year [RP117-
00], and also having considered information received subsequent to the
hearing, dated 25 October 2001, as well as written responses from the
Commissioner to questions from the Committee arising from its review of
the Auditor-General's Report on the financial statements for the 2000-
2001 financial year [RP 148-01], dated 25 January 2002, and further
responses dated 9 May 2002, reports as follows:
A. Recruitment and training
The Committee is concerned about the following factors related to
human resources that are negatively impacting on the capacity of
the Department to deliver correctional services to the prison
population of South Africa:
1. A lack of capacity to train the annual intakes of the
Department.
2. Poor planning and administration associated with the
utilisation of training facilities.
3. Poor planning in terms of training curricula and equipment.
4. Inadequate screening by the Department of new recruits,
resulting in the subsequent discovery of recruits with
fraudulent qualifications or criminal records.
The Committee has noted the attempts to more effectively manage
recruitment and screening processes, as well as to better plan the
academic calendar and improve the training curricula. The
Committee expects to see substantial progress reported in this
regard in the annual reports in respect of the 2001-02 financial
year. The Committee recommends that the Portfolio Committee on
Correctional Services also note the matters raised and evaluate
whether progress is made with respect to each of the areas of
concern. It is also recommended that the Department demonstrate to
the Committee and the Portfolio Committee on Correctional Services
the manner in which it effectively measures the total cost of
training and how it determines the value gained from such an
investment in training.
B. Jackson State University Scholarship Programme
The Committee welcomes the termination of this Programme (with
unjustifiably high costs to the taxpayer). The Committee
recommends that the Department in future not only ensure that
South African tertiary institutions are used for similar types of
training, but also that participants in such programmes are
contractually bound to the Department for at least as long as they
have been assisted to study.
C. Computer audit
The Committee noted with concern the weaknesses with regard to the
general controls within the Admission and Release System, the
Pharmaceutical System at the Department's head office and the
Pretoria management area, and the application controls within the
Provisioning Administration System. It is especially concerned at
the lack of a separation of duties and the associated risk of
fraud. The undertaking by the Department that the matter was
receiving urgent attention, was therefore welcomed. The Committee
recommends that the Auditor-General evaluate the progress made
during the 2001-02 audit.
D. Internal control environment and risk management
1. The Committee noted that once again the Auditor-General
reported a variety of symptoms of poor internal control, the
following being examples:
(a) Insufficient debtor management and debt recovery.
(b) Poor checking of source documents at head office and poor
batch control at various provincial offices.
(c) Inadequate certification of payrolls.
(d) Poor control of UIF payments and recording of
contributions.
(e) Incomplete reconciliations between the computerised
financial management and personnel and salary systems.
(f) The Committee was informed of the Department's intention
to address each of the findings of the external auditors,
as well as the internal auditors, at the highest
management level.
The Committee was further informed of disciplinary action
taken against a number of officials who had not complied with
control procedures. The Department also undertook that in
future steps would be taken in every case of failure to comply
with requirements of the Public Finance Management Act (the
PFMA). In this regard, the Committee wishes to remind the
Commissioner of his obligations in terms of section 81 of the
PFMA, as well as the responsibilities of other officials in
terms of section 45 of that Act.
The Committee recommends that -
(i) the Commissioner report to the National Assembly on the
success of Operation Vukuza in each of the respective
provinces, and on how any deficiencies identified had
been addressed.
(ii) the Commissioner indicate progress made with the
capacitation of the internal audit unit, as well as any
arrangements made for outsourcing.
(iii) the Commissioner include the Audit Committee report
to the House on the responsiveness by the Department's
management to internal findings as well as the Audit
Committee's recommendations regarding stricter
monitoring mechanisms and the application of
disciplinary procedures.
The Committee further recommends that in his report for 2001-
02 the Auditor-General specifically report on:
(iv) whether reliance could be placed on the work of the
Department's internal auditors, and if not, indicate the
main reasons for the non-reliance; and
(v) the responsiveness by the Department's management to
the findings in his latest report.
2. The Committee was provided with information on the latest risk
assessment exercise carried out by the Department. A list of
the main areas of risk identified, was provided, as well as
the measures, which at face value seemed to address each of
the risk areas. In view of the various financial management
problems reported by the Auditor-General, the Committee is
deeply concerned that proper management of the financial
resources of the Department was not identified as one of the
priority risk areas.
The Committee recommends that the Commissioner -
(a) prioritise risk management and ensure that progress made
in respect to each of the areas in terms of planned
deadlines is monitored at least on a bimonthly basis, and
that effective corrective measures are taken where
required
(b) provide impetus to certain of the risk management plans,
e.g. drafting of the proposal on the development of human
resources strategies, and the development of the inmate
tracking system, so that finalisation of the actions be
achieved sooner rather than later
(c) regard financial management as one of the priority risk
areas
(d) provide each of 10 main risk areas a target date for
finalisation of the corrective action.
E. Vehicle management
The Committee is concerned at the management weaknesses with
respect to government transport. It noted that the logistics
directorate would be conducting a detailed analysis and inspection
at 50 management areas during the coming year in order to deal
with weaknesses more proactively.
The Committee recommends that the Commissioner report on the
results of the inspections and any corrective actions taken, the
extent and outcomes of any disciplinary actions instituted against
any staff members, and the completeness currently of the register
of unauthorised drivers.
F. Stock and equipment
The Committee has taken note of the barcoding system which had
been implemented at national Head Office and of the fact that it
will be rolled out to all the provinces.
The Committee recommends that -
1. the Commissioner indicate the status of implementation of the
barcoding system in each of the respective provinces
2. the effectiveness of the barcoding system throughout the
Department be evaluated and reported on by the Auditor-General
in the 2001-02 audit report.
G. Merit awards and members' qualifications
The Committee noted the evidence in the Commissioner's
correspondence of 25 January 2002 that no merit awards were paid
without proper approval per a departmental merit list as source
document.
The Committee recommends that the Commissioner provide the House
with -
1. a proper report on all cases investigated by the departmental
task team appointed to investigate all cases of possible
irregular merit awards in respect of the 1999-00 financial
year
2. the results of the work carried out by the special task teams
established in the various provinces to investigate possible
fraudulent qualifications
3. the results of the recovery actions as a result of incorrect
payment of merit awards planned for finalisation by 28 August
2002
4. information as to whether the qualifications of all staff
members have been verified.
H. Personnel Salary Administration System
The Committee was informed that the Department had implemented a
new Persal function which will meet all the Department's needs,
including reliable information on staff members on suspension.
The Committee recommends that the Auditor-General review and
report on the effectiveness of the enhanced Persal system during
the 2001-02 audit.
I. Medical Fringe Benefits
1. The Committee was informed that the Department may be liable
for an amount of approximately R48,5 million to the SA Revenue
Services in respect of outstanding PAYE. The Committee further
noted that in January 2002 the matter had not been resolved,
despite it having been raised in August 2000 already.
(a) The Committee therefore recommends that both the SARS and
the Department ensure that the matter be immediately
resolved and the outcome be reported to the House within
two months of the date of adoption of this Report by the
National Assembly.
(b) The Committee further recommends that the SARS, in
consultation with the National Treasury, consider issuing
appropriate guidelines to all public sector departments
at national and provincial level regarding PAYE
obligations in respect of all benefits or perks received
from the employer with respect to, for example, free
medical aid, free or subsidised housing, or other
allowances to ensure compliance with the income tax
legislation in all cases.
1. Medical Services (MEDCOR)
The Committee noted that finality has not been reached with
respect to the new administrator of the departmental medical
scheme.
The Committee recommends that the matter be finalised as a
matter of urgency and progress be reported on to the House
within two months of the adoption of this Report by the
National Assembly.
J. Unauthorised expenditure
1. Par 2.2.1(a), [RP 117-00] (1999-00 financial year)
The Auditor-General reported that expenditure totalling R534
486,93 incurred during various financial years was regarded as
unauthorised in terms of section 33 of the Exchequer Act, 1975
(Act No. 66 of 1975), and comprised the following:
(a) Development and provision of computer-based assessment
instrument, R107 713,08
The Department engaged a consultant from a university
through a tender to lead a research and development
project. Due to a lack of appropriate co-ordination and a
misunderstanding over the tasks and responsibilities of
various partner directorates in the Department,
additional professional expertise was utilised. The
authorised tender amount was consequently overspent by
more than 100% without prior approval form the State
Tender Board. The State Tender Board was approached for
ex post facto approval on 26 July 1999, but approval was
not granted and the said amount is regarded as
unauthorised.
The Committee was informed that no action was taken
against the staff responsible, on the grounds that they
were no longer in the service of the Department.
The Committee recommends that the Parliamentary Law
Advisers be requested to advise on the feasibility of the
accounting officer attempting to recover any possible
loss to the State, in order for the Committee to consider
validation of the unauthorised expenditure.
(b) Maintenance contract, R243 577,94 (R1,367,22 in 1999-00)
During the previous financial year payments amounting to
R1 367 225 relating to a maintenance contract were made
after the contract had expired and without the approval
of the State Tender board. During the year under review
additional unauthorised expenditure of R243 577,94 was
incurred in this regard. As in the previous year, the
State Tender Board was approached for ex post facto
approval, but approval was not granted and the said
amount was regarded as unauthorised by the Auditor-
General.
The Committee was informed that after a departmental
enquiry, disciplinary action was taken against two of the
three officials responsible. The Committee was also
informed that an enhanced contract management policy has
been implemented under the direction of the Good
Governance Chief Directorate, but that full
implementation could not be confirmed.
In view of the aforementioned action taken, the Committee
recommends that -
* the Auditor-General evaluate the effectiveness of
the contract management policy
* the Portfolio Committee on Correctional Services be
requested to monitor the implementation of the
procurement and provisioning system of the
Department, in the light of the requirements of
section 38(1)(iii) of the PFMA
* the unauthorised expenditure in respect of both
financial years is approved by the National Assembly.
(c) Appointment of board of inquiry: Pollsmoor management
area, R183 195,91
The Minister of Correctional Services ruled that a board
of inquiry had to be appointed to investigate the
violence at the Pollsmoor management area in 1997. The
total cost of the investigation exceeded the authorised
amount in terms of the prescribed State Tender Board
regulations. The State Tender Board did not grant ex post
facto approval, and the amount of R183 195,91 was
therefore regarded as unauthorised.
The Committee was informed that no action was taken
against the staff member responsible on the grounds that
he or she was no longer in the service of the Department.
The Committee recommends that the Parliamentary Law
Advisers be requested to advise on the feasibility of the
accounting officer attempting to recover any possible
loss to the State, in order for the Committee to consider
validation of the unauthorised expenditure.
2. Par 3.6, p 130 [RP148-01] (2000-01) (see 25/1/02, p 17 & 18
In his Report on the 2000-01 financial year the Auditor-
General reported expenditure totaling R773 873,11 incurred
during various financial years as unauthorised in terms of
section 33 of the repealed Exchequer Act, 1975 (Act No. 66 of
1975), comprising the following:
(a) Strategic planning sessions, R723 873,11
The Auditor-General performed a forensic audit regarding
expenditure relating to certain strategic planning
sessions, and a final report was submitted to the
Department on 14 February 2001. According to the forensic
report, there were severe restrictions on the
investigation, as many documents including timesheets and
invoices were not available. According to the report
unauthorised expenditure incurred with regard to
strategic planning services and travelling expenditure
relating thereto for the period 1 June 1992 to 31 may
1995, amounted to R508 666,19 and R215 206,92,
respectively.
The Committee was informed that no action was taken
against the staff member responsible on the grounds that
he or she was no longer in the service of the Department.
The Committee recommends that the Parliamentary Law
Advisers be requested to advise on the feasibility of the
accounting officer attempting to recover any possible
loss to the State.
(b) Psychological counselling of members: Pietermaritzburg
management area, R50 000
During a visit to the Pietermaritzburg prison the former
Minister of Correctional Services ordered that the prison
be closed down and its members and prisoners transferred.
Members at the prison vowed to oppose an order to close
down the prison. Relationships were tense and mass action
was threatening. Since actions by the Department to
defuse the situation did not yield positive results, the
provincial commissioner in KwaZulu-Natal made an
application to head office to obtain the services of two
external psychologists to attend to the problem. Due to a
dire need for assistance to defuse the tense situation,
the correct procedure for urgent cases was not followed.
The State Tender Board was approached for ex post facto
approval on 17 and 30 March 2000, but approval was not
granted and the said amount is regarded as unauthorised.
The Committee was informed that disciplinary action had
been taken against the official responsible, and that
provisioning administration officers are now trained
regarding procedures in cases of urgency.
In view of the above actions taken, the Committee
recommends that the unauthorised expenditure in question
be authorised by Parliament, but that the accounting
officer ensure that in future unauthorised and irregular
expenditure are correctly disclosed in the financial
statements.
3. The Committee further recommends that the Commissioner ensure
that in future -
(a) upon the resignation or retirement of staff members from
the Department, any related potential or pending
enquiries or disciplinary actions are appropriately
resolved
(b) all unauthorised, irregular or fruitless and wasteful
expenditure be properly recorded in the accounts of the
Departments and accurately disclosed in the financial
statements to the National Assembly.
4. Unauthorised expenditure of R29 253 730 (1998-99)
Having considered further information submitted to it by the
former acting Commissioner during 2001, the Committee
recommends as follows:
(a) With regard to the unauthorised medical expenditure
totalling R27 429 482 relating to a contract for medical
aid administration without the appropriate tender
procedures having been followed, the Committee has been
informed that a proper service was rendered to the
Department and that no one had unduly benefitted. The
Committee therefore recommends that the amount be
authorised by the National Assembly.
(b) This Committee cannot condone the payment of awards of
R109 293 to the former Commissioner in the circumstances
in which it had taken place. The Committee has further
been informed that an amount of R60 111 was recovered
from the former Commissioner. The Committee recommends
that the Accounting Officer initiate the necessary steps
to recover any part of the amount in question that may
still be outstanding from the relevant beneficiary. The
Committee further recommends that the matter be resolved
as far as possible within the next six months and that
the outcome be reported to the National Assembly.
(c) Unauthorised expenditure totalling R347 730 was incurred,
which related to repairs and maintenance as well as
capital improvements amounting to R147 591 and R200 139
for the 1996-97 and 1997-98 financial years,
respectively, before proper transfer of the property to
the State. As a service was rendered to the Department
and no one had unduly benefitted, the Committee
recommends that the amount be authorised by the National
Assembly.
K. Computer audit
The Committee was informed of a number of control deficiencies
with regard to the Department's provisioning administration
system, as well as corrective measures taken by the Department in
response to the weaknesses identified by the Auditor-General.
The Committee recommends that the Auditor-General review the
effectiveness of the corrective measures during the next computer
audit planned for the Department of Correctional Services.
L. Housing guarantees
The Committee heard evidence that the Department was pursuing
legal action where possible to recover debt to the State with
respect to housing guarantees.
The Committee strongly encourages the Commissioner to continue
with legal actions and to explore every possible avenue aimed at
limiting the loss to the State before considering writing off any
of these debts.
Report to be considered.