TUESDAY, 11 JUNE 2002 __

          PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
                                ____

The Council met at 14:02.

The Deputy Chairperson took the Chair and requested members to observe a moment of silence for prayers or meditation.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS - see col 000.

QUESTIONS AND REPLIES - see that book.

                       STATEMENT OF CONDOLENCE

                      (The late Mr P R Mokaba)

The CHIEF WHIP OF THE COUNCIL: Chairperson, may I say the following in relation to the comrade whom we have just lost. Comrade Peter Mokaba was born in 1959 in Mankweng in the Limpopo province. He was an activist from a very early age and was active in initiating boycotts at schools, to the extent that in his youth he already had to seek shelter in the mountains in order to avoid arrest.

In 1977 he was captured and charged for public violence. There were 28 state witnesses who refused to testify against him and he was subsequently acquitted. He was banned from entering schools or being enrolled at a school - I know Comrade Kader would be interested to hear this - but, this notwithstanding, he continued to study and passed his matric. At the time of his death he was busy with his studies, trying to complete a second master’s degree.

In 1982 Comrade Peter was sentenced on a charge of arms possession and sent to Robben Island, where he spent a year. His conviction and sentence were set aside and he was subsequently released. He was always a loyal and dedicated member of the ANC, a powerful orator, a person who had the courage of his convictions and a person who worked very hard for the liberation of the people in this country and the continent. Comrade Peter Mokaba will be missed.

I do have a formal motion which I will put to the House after the other political parties have had an opportunity to speak on this matter.

Mr N M RAJU: Chairperson, the death of any man brings sadness and grief to family and friends. But the death of a young man standing on the threshold of a promising political life, as did the late hon Peter Mokaba, leaves a void in the lives of those closely associated with him.

My party’s profound condolences go to his family, but more especially we sympathise with the political party he belonged to. The blow to the ANC is immense, considering the fact that the late Peter Mokaba was a charismatic public representative and a high-profile member of the party’s NEC. No party young in government wishes to lose a dynamic young member from its ranks.

We join the Chief Whip in paying tribute to the late Peter Mokaba and in expressing condolences to family, friends and the ANC.

Mr A E VAN NIEKERK: Chairperson, the New NP wants to move that the Council notes with sadness and deep regret the sudden passing away of member of Parliament Peter Mokaba and notes further the great contribution he made to our democracy. We wish to convey our sincere condolences to his family and the ANC in this, their hour of bereavement.

Mr M J BHENGU: Chairperson, in Zulu there is a saying: Ukufa kuyisela ngoba kudla silaza kudle fumuka. Sithi-ke kuyisela ukufa nxa kusithathela iqhawe lethu ebeliselisha kangaka. [Death is a thief as it stole our hero who was still young.]

We mourn the death of this son of the soil, a hero and a cadre, a comrade in arms. Peter Mokaba was indeed a revolutionary dedicated to the complete emancipation of his people. He was a leader who was honest, frank and open. He was a leader who spoke his mind. He had the ability to stand his ground and defend himself. His death was a huge loss, not only to his family and his political party, but also to the entire nation, particularly at this tender age.

To his family, political party and friends we say: Akwehli lungehlanga. Mabalale ngenxeba bonke. [What has happened can never be changed. Everyone must be consoled.]

Mr R M NYAKANE: Chairperson, on behalf of the UDM I hereby express my condolences following the untimely death of Comrade Peter Mokaba. We, the people of the Northern Province in particular, have lost a great deal and his deeds have left a challenge amongst us, especially the youth. He was a young person who sacrificed his academic career as well as his life for the liberation of the oppressed majority in South Africa.

He was involved in the liberation struggle as early as 1976, during the youth riots in Soweto, and could not proceed with his law degree at Turfloop, given the anarchical management of the black universities by the apartheid government at the time. Those who went to Turfloop will recall how the army and the police used to harass our students there.

We extend our sympathy and condolences to his parents, brothers and sisters and thank the family for their contribution to the role played by their son towards the advent of democracy in South Africa.

Mr J O TLHAGALE: Chairperson, hon Ministers, hon Deputy President, colleagues, it was with the greatest shock that we heard of the untimely death of Comrade Peter Mokaba, who passed away over the weekend. I did not know him personally, but I knew him at a distance as an outspoken and forthright person who believed in what he believed. I knew him as a person who could say what he wanted to say regardless of who else said what.

I wish to extend the condolences of the UCDP to his family circle as well as to our friends in the ANC.

Mr K D S DURR: Chairperson, on behalf of the ACDP, may I say that it is always sad when a young, attractive and promising life ends prematurely. I personally had some contact with Mr Mokaba. I remember one occasion when he came over to London while I was ambassador there. The newspaper said that the young lion was coming to roar in London. I arranged a lunch for him with all the editors of the television stations and major newspapers, and Mr Mokaba could not have been more charming and engaging. The next day the headline in the Financial Times was: ``And the lion came and lay down with the lamb,’’ the lamb being me. So there we are!

He was an attractive young man and we associate ourselves fully with the remarks of the Chief Whip and our hon colleagues. Our hearts and prayers go out to the Mokaba family, particularly to his parents and children.

Debate concluded.

                        MOTION OF CONDOLENCE

                      (The late Mr P R Mokaba)

The CHIEF WHIP OF THE COUNCIL: Chairperson, I note that the hon Van Niekerk put forward a motion. May I, with the permission of this House, amend my motion to incorporate the elements raised in the hon Van Niekerk’s motion. I see that I do have the hon member’s permission.

I move without notice:

That the Council -

(1) notes with shock and profound sadness the untimely death of the honourable Peter Ramoshoane Mokaba, who passed away on 9 June 2002;

(2) recognises that Peter Mokaba was a South African patriot who, throughout his life, demonstrated a profound commitment to the liberation of the people of our country and the continent of Africa; (3) remembers him as a principled person who had the courage of his convictions;

(4) recalls that, as president of the South African Youth Congress and the African National Congress Youth League and a member of the National Executive Committee of the African National Congress he was a robust, fearless, loyal and dedicated cadre who lived by the words, “rather die next to the enemy than let him pass”;

(5) acknowledges the dynamic contribution that the honourable Mokaba made to Parliament since the election of the first democratic Parliament in 1994, during which time he served as Deputy Minister of Environmental Affairs and Tourism and as Chairperson of the Ad Hoc Committee on Powers and Privileges of Parliament, in which positions he served with dedication;

(6) believes that he leaves a legacy that epitomises heroism and dedicated service and that his untimely death has robbed South Africa of a great son who at his tender age still had a tremendous contribution to make to the reconstruction and development of our nation; and

(7) expresses its condolences to the entire Mokaba family.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M L Mushwana): In conclusion, on behalf of the presiding officers, I want to echo the sentiments expressed by members in this honourable House and associate us with the motion moved by the Chief Whip. I undertake to make sure that the sentiments and motion are transmitted to the Mokaba family in due course. I now call upon hon members to stand and observe a moment of silence for the late hon Peter Mokaba.

Motion agreed to in accordance with section 65 of the Constitution, all members standing.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M L Mushwana): Before proceeding with questions, we will deal with the first motion on the Order Paper as printed in the name of the Chief Whip, as it is a matter of urgency.

                    SUSPENSION OF JOINT RULE 154

                         (Draft Resolution)

The CHIEF WHIP OF THE COUNCIL: Chairperson, I move the motion printed in my name on the Order Paper, as follows:

That the Council, following joint briefings and deliberations, agrees to suspend Joint Rule 154 in respect of the Loss or Retention of Membership of National and Provincial Legislatures Bill [B 25 - 2002] (National Assembly - sec 76).

Motion agreed to in accordance with section 65 of the Constitution (KwaZulu- Natal abstaining).

                          NOTICE OF MOTION

Mr K D S DURR: Chairman, I give notice that I shall move at the next sitting of the House:

That the Council -

(1) notes that -

   (a)  the United States government has announced  that  1  April  2002
       marks the date when Russia successfully completed her transition
       from a socialist/communist economy to  a  market  economy,  thus
       confirming  a  similar  announcement  a  fortnight  ago  by  the
       European Union; and


   (b)  the news has been welcomed by Russia as a sign of acceptance  by
       the world's financial community that  it  is  ready  to  welcome
       Russia into the  World  Trade  Organisation  and  that  it  will
       provide a further boost for much-needed additional investment in
       order to spur on the fast-growing Russian economy;

(2) notes this historic event and milestone in the steady recovery of Russia from the horrors of the revolution in 1917, and from the failed and bloody system of communism that engulfed and subjected them;

(3) congratulates President Putin and the great Russian people for their huge achievement of reconstruction and reconciliation and wishes them God’s richest blessings for a successful, free and peaceful future; and

(4) calls on South Africa and the world to learn from the lessons of history.

      FIRST-YEAR STUDENT WINS NATIONAL AWARD FOR CLOTHES DESIGN

                         (Draft Resolution)

Ms C S BOTHA: Mnr die Voorsitter, ek stel voor sonder kennisgewing: [I move without notice:]

That the Council -

(1) notes that -

   (a)  Ms Lerato Mgorosi, a first-year student  at  the  Victoria  Toma
       School for Design in Bloemfontein, won a national award for  the
       design of the clothes of the volunteers during the Conference on
       Sustainable Development in Johannesburg later this year;


   (b)  the judges of this competition said her  design  was  practical,
       colourful and ideal for volunteers who will have  to  work  long
       hours and will have to walk a lot; and


   (c)  morwetsana enwa o bontsha le ho pakahatsa hape hore  ho  sebetsa
       ka boitelo le ho nahana hantle ha batjha ba Afrika Borwa, ba  ka
       fihlella phethahatso ya ditoro tsa bona; [this  young  lady  has
       shown and proven that our South African  youth  can  make  their
       dreams become  a  reality  through  hard  work,  commitment  and
       focus;] and

(2) congratulates this young Free State student and encourages other young people to follow her example.

Motion agreed to in accordance with section 65 of the Constitution.

                      TRAGIC ACCIDENT IN HARARE

                         (Draft Resolution)

Mr M A SULLIMAN: Chairperson, I move without notice:

That the Council -

(1) notes with shock the horrible accident in Masvingo outside Harare in which 36 Zimbabwean students tragically lost their lives;

(2) expresses its condolences with the families of the victims in their sad bereavement; and

(3) wishes those injured a speedy recovery.

Motion agreed to in accordance with section 65 of the Constitution.

        OUTSTANDING ATHLETIC PERFORMANCE BY YOUTH FROM UMTATA

                         (Draft Resolution)

Ms E C GOUWS: Chairperson, I move without notice:

That the Council -

(1) takes cognisance of the outstanding performance of a 17-year-old boy from rural Umtata in the Eastern Cape who without -

   (a)  proper training;


   (b)  running gear;


   (c)  the advantage of being on a nutritional diet; or


   (d)  previous experience of competing internationally,


       won the gold medal in the 3 000 metres at an  athletics  meeting
       in Paris; and

(2) notes that this outstanding achievement shows the vast talent that we still need to develop in our country.

Motion agreed to in accordance with section 65 of the Constitution.

            SENEGAL'S ACHIEVEMENT IN THE SOCCER WORLD CUP

                         (Draft Resolution)

Mr G A LUCAS: Chairperson, I move without notice:

That the Council -

(1) notes that Senegal has become the first African country to make it through to the second round of the soccer World Cup;

(2) further notes that this achievement is even more remarkable given the fact that this is their first World Cup finals and that they played in the same group as the current world and European champions, France;

(3) congratulates Senegal on this magnificent achievement;

(4) expresses its hope that their achievement will inspire our very own Bafana Bafana for their crucial encounter with Spain, as well as Cameroon; and

(5) notes that Africa’s time has come.

Motion agreed to in accordance with section 65 of the Constitution.

                          WORLD FOOD SUMMIT

                         (Draft Resolution)

Mr D M KGWARE: Chairperson, I move without notice:

That the Council -

(1) notes that -

   (a)  President Thabo Mbeki yesterday delivered a keynote  address  to
       delegates at the World Food Summit in Rome;


   (b)  the summit and the  New  Partnership  For  Africa's  Development
       (Nepad) will focus on reviewing advances  made  since  the  1996
       World Food Summit, outlining the measures leaders  now  envisage
       as well as the mobilisation of the requisite political will  and
       resources to move forward at an accelerated pace to achieve  the
       1996 targets; and


   (c)  South Africa  will  also  report  on  progress  and  provide  an
       assessment and a way forward out of the current  food  situation
       in the African region; and

(2) reiterates our President’s commitment to work tirelessly in the fight against poverty.

Motion agreed to in accordance with section 65 of the Constitution.

         PRONOUNCEMENT BY NEW NATIONAL PARTY LEADER ON NEPAD

                         (Draft Resolution)

Mr J HORNE: Chairperson, I move without notice:

That the Council notes what was said about the New Partnership for Africa’s Development (Nepad) by the leader of the New National Party, Marthinus van Schalkwyk, when he addressed a meeting of the International Democratic Union in Washington DC on 10 June 2002, namely that -

(1) Nepad is a signal from Africa to the rest of the world about African optimism; and

(2) it is critically important for our friends, especially in America, Europe and all around the world, to support this important African initiative.

Motion agreed to in accordance with section 65 of the Constitution.

                     LEAVE OF ABSENCE TO MEMBER

                         (Draft Resolution)

Mr M A SULLIMAN: Chairperson, in the absence of the Chief Whip I would like to move the motion printed in his name on the Order Paper as follows:

That leave of absence be granted to Mr B Willem for the period 10 May 2002 to 31 August 2002. Motion agreed to in accordance with section 65 of the Constitution.

PARLIAMENTARY ROLE IN ADDRESSING THE CRITICAL TASKS FOR THE SUCCESSFUL ACHIEVEMENT OF AFRICAN UNITY AND DEVELOPMENT

                      (Subject for Discussion)

The DEPUTY MINISTER OF FOREIGN AFFAIRS: Chairperson, hon members, I thank you for the opportunity to discuss this very important issue. Ninety-six years ago the founding father of the ANC, Pixley Seme, speaking in New York, said:

The brighter day is rising upon Africa … Yes, the regeneration of Africa belongs to this new and powerful period. The regeneration of Africa means that a new and unique civilisation is soon to be added to the world.

Sadly, the vision that Pixley Seme expounded did not materialise. We are all acutely conscious of the systematic impoverishment of our continent caused by slavery, colonialism, the Cold War, neocolonialism, the weaknesses of the political and economic policies of many of our countries and the nature of the world economic system.

The stark reality today is that despite the great potential our continent has, we are still one of the poorest continents in the world. Let us look at some of the facts. The number of Africa’s poor has grown relentlessly and Africa’s share of the world’s absolute poor increased from 25% to 30% in the 1990s. Africa’s share of world trade has plummeted since 1960. It now accounts for less than 2% of world trade and, if South Africa is taken out of the equation, the figure for the rest of Africa is much lower. Africa is the only region to have seen investments and savings decline after 1970. The savings rates in many African countries are the lowest in the world.

In 1997, Africa’s debt was estimated to be $159 billion and by 1999 this increased to $201 billion. We are faced with the reality that outstanding external debts in many African countries exceed the entire GDP of those countries, and debt service requirements exceed 25% of total export earnings. Overseas development assistance has dropped more than one fifth in real terms since 1992.

Despite the fact that many of our countries have taken steps to create a climate conducive to direct foreign investment, the reality is that very little foreign direct investment has flowed sufficiently to Africa.

Diseases such as HIV/Aids, malaria and tuberculosis continue to have serious negative consequences on our continent. Power consumption per person is the lowest in the world. Tokyo has more telephones than the whole of Africa. Less than half of 1% of all Africans have used the internet.

Surely we cannot continue with this order of things. Surely Africa with its potential deserves better and our leaders must respond to the challenge that African people are posing to us. We want to believe that the New Partnership for Africa’s Development, Nepad, is our response to this stark reality.

Nepad is a holistic integrated sustainable development initiative for the economic and social development of Africa. It is a pledge by African leaders based on a common vision and a firm and shared conviction that they have a pressing duty to the African people to eradicate poverty and to place our countries, both individually and collectively, on a path of sustainable growth and development and at the same time participate actively in the world economy and body politic.

The initiative, which is an African initiative, is anchored on our determination to extricate ourselves and the continent from the malaise of underdevelopment and exclusion in a globalising world. It is an African call for a new relationship of constructive partnership between Africa and the international community to overcome the development chasm that I have just referred to. The partnership is to be founded on a realisation of common interest, obligations and commitments and on benefit and equality between Africa and the rest of the world.

It is clear that we will succeed in achieving our objectives if we draw the necessary conclusions from our past experiences, utilise all our available resources and forge partnerships that are mutually beneficial. It is clear too that Nepad is seeking fundamental transformation regarding political and economic governance. Given the realities of our continent, we have no illusions about the difficulties and indeed opposition from vested interests that we will face in implementing the objectives of Nepad. However, we must stress that Nepad is about genuine partnership and not paternalism, as happened during the earlier period. We also start from an understanding that Nepad is not an event but a process.

We are happy to note that support for Nepad has come from many quarters: the G8, the Nordic countries, the United Nations, China and countries in Latin America. We also believe that Nepad in the end will succeed if there is partnership between government and civil society, because without this partnership Nepad will not be able to achieve the lofty ideals that it is putting forward.

I am happy to note that just last week there was a very successful World Economic Forum meeting in Durban which concentrated on Nepad. There were 750 delegates representing 42 countries, and it was very encouraging to note that many of the top companies in the world and in South Africa signed a petition, a declaration, in support of Nepad. I am also happy to note that many of the top leaders of big business, internally and externally, have indicated that they see Africa as a wonderful opportunity to start a new relationship based on a programme determined by Africans and not by others at the expense of our own interests and priorities.

I want to say that the Nepad heads of state and government implementation committee is meeting in Rome today. The implementation committee is composed of three states from each of the five OAU regions. It includes South Africa, Botswana, Mozambique, Ethiopia, Mauritius, Rwanda, Nigeria, Senegal, Mali, Cameroon, Gabon, the Republic of the Congo, Egypt, Algeria and Tunisia.

The purpose of the meeting will be to finalise the detailed programme of action of the Nepad. Detailed and concrete documents have been developed over the last 18 months for consideration by the heads of state in each of the priority areas of the Nepad, constituting the first phase of the implementation of the Nepad.

Furthermore, the meeting will be utilised to prepare for the interaction with the G8 meeting that will take place in Kananaskis in Canada on 27 June, where the G8 African action plan will also be discussed. We welcome the G8 action plan but we believe that they have left out certain important aspects, such as market access, infrastructure development and the whole issue of cancelling the debt of the mostly highly indebted poor countries.

This meeting will also prepare for the African Union summit that will take place in Durban, South Africa, on 8-10 July and the World Summit on Sustainable Development, which will take place in Johannesburg, South Africa, at the end of August.

President Mbeki, in his state of the nation address in February 2002, said, and I quote:

We shall continue to challenge a pessimism that expects Africa to fail in any of its endeavours, and the undeclared doctrine of collective punishment against all Africans that seems to come into effect when one or some among our leaders stumble.

President Mbeki was putting emphasis on what I believe is fundamental to our new partnership with the rest of the world. We will not accept conditionalities based on wrongdoings or problems in one country or another. Nepad must be supported on the basis of what it is putting forward and of its interests, mutually beneficial for Africa and the rest of the world.

I want to believe that we do not need to be taught about democracy. Indeed, the Nepad implementation committee summit meeting in Abuja adopted, as early as March 2002, a draft report on good governance and democracy as well as an African peer review mechanism. The draft report on good governance and democracy spells out in detail commitments and obligations such as the strengthening of the democratic process, the promotion of good governance, the protection of human rights, press freedom and enhancing institutional capacity.

New initiatives worth underscoring are the proposal to establish a portfolio in the AU of a commissioner to be responsible for democracy, human rights and good governance, and proposals to expand the OAU position on unconstitutional changes of government to include dealing with patently undemocratic and unconstitutional behaviour as well as gross violations of human rights by governments in power. It includes proposals for strengthening the commission and the court on human and people’s rights.

The African peer review mechanism that we are proposing has as its purpose to ensure that African ownership of its development agenda is controlled by Africa. Its purpose is to identify, evaluate and disseminate best practice; to monitor progress towards agreed goals; to use peer review to enhance adoption and implementation of best practice; and to identify deficiencies and capacity gaps and recommend approaches to addressing these issues.

From what I have said, I hope it is clear that Africa is committed to consolidating and expanding democracy and human rights protection on our continent. But it is a programme that must be run by Africans based on our programme that we ourselves have determined. In terms of economic and corporate governance, excellent proposals are being made, such as a code of good practice on transparency in monetary and financial policies, a code of good practice on fiscal transparency and best practice for budgetary transparency. It is clear, therefore, that we as Africans will now determine how we interact with developed and developing countries on the basis of priorities identified by ourselves.

On the basis of what I have said, the year 2001 is one of the most important in the history of South Africa’s foreign policy, and indeed for the whole of Africa. Future generations will look back on this year as one of the defining moments in Africa’s history. At the heart of the continental effort is the need to position our continent structurally to face the new challenges, to take advantage of the opportunities brought by the changing political and economic environment and to prevent the further marginalisation of Africa.

Nepad is the programme for economic and social development. However, for Nepad to succeed, we need strong and appropriate institutions. The OAU has played a very important role since its founding 39 years ago. When it was founded, the founding fathers said that the purpose of the OAU should be to promote the unity and solidarity of the African states and to intensify co- operation and efforts to achieve a better life for the people of Africa. Clearly, since the OAU’s founding in 1963, it has played an invaluable role in ending colonialism and the system of apartheid. However, today the challenge is more economic, and therefore we have to transform the OAU into a new structure, and that new structure is the African Union.

I believe that the African Union will deepen unity and deal comprehensively with political and economic matters affecting the continent. The establishment of the AU represents a continuation of the Pan-African movement, which is aimed at consolidating the unity of African states. The Constitutive Act of the African Union commits the OAU and all of us, among other things, to promoting sustainable economic development; to face the difficult challenges of the often marginalising forces of globalisation; to promoting popular participation and building partnerships between government and all sectors of civil society, in particular women and youth; to promoting and protect democracy, good governance and the rule of law; and to promoting and protecting human and people’s rights. Indeed, the NCOP and the National Assembly must play a leading role in ensuring that the lofty ideals of the Constitutive Act do become a reality and do not remain mere words on paper. An important element of achieving sustainable development and ending poverty on our continent is conflict resolution. I am happy to say that both within the proposed new structures of the AU and in SADC, new institutions have been proposed which will now set up an AU peace and security council, consisting of 15 heads of state who will meet at head of state level, ministerial level and ambassadorial level. I believe that this will make a fundamental impact on our attempts to prevent conflicts and, where conflicts happen, to prevent their escalating.

There is also an idea to set up a council of the wise, and I am not saying that this House alone should look at that. All South Africans should look at whom we should suggest to serve on a council of the wise.

I am happy that we will host the inaugural of AU summit in South Africa in July 2002. This will be a very important moment for us because the way in which the AU functions in the first year will determine whether the lofty ideals that I have referred to become a continuing reality on our continent.

Let me now turn to the subject matter in a different context. What is the parliamentary role in addressing the critical tasks for the successful achievement of African unity and development? It is clear from what I have said that no plans for the development of Africa and for the African Renaissance can succeed if there is no partnership between government and civil society. The hon members of this House, as elected representatives of our people, must ensure that they interact with all sectors of our society, to get them to understand not only the importance of Nepad and the OAU, but also how they are going to contribute to making Nepad a success. Our whole commitment to working harder in the context of Africa, and indeed specifically in the context of Southern Africa, becomes very important. I hope that the NCOP will play a major role in interacting with civil society, including the very important private sector and trade unions, and will ensure that the reality of Nepad and the AU is understood by all. Hon members are, of course, going to be participating in the Pan-African Parliament, which has been classified as a political and democratic institution which will represent the peoples of all African states. Its members will symbolise the democratic will of all the peoples of our continent. As stated in the Constitutive Act of the African Union, the parliament should ensure the full participation of African peoples in the development and economic integration of the continent. Each member state will be represented by five parliamentarians, two of whom will have to be female, being representative of the political spectrum of that member state.

As such, the Pan-African Parliament has a role to play in the creation and the maintenance of political and social stability, strong support for democratic ideals, macroeconomic stability, respect for the rule of law, respect for gender equality and, finally, efficient, competitive and supportive infrastructure. This makes it clear that the NCOP cannot just be a spectator while the process unfolds. It has to become an important player in the whole process that the South African Parliament is going to undertake in terms of the role of parliamentarians in the next few years.

Hon members are aware of the fourth report of the South African parliamentary working group on the African Union, which has made specific suggestions on how parliamentarians can contribute. I hope that the NCOP will not be left out of this process and will play a major role in the African parliamentary process and the parliamentary working group on the African Union.

In conclusion, let me quote President Luthuli, who said, as early as 1961:

Let me invite Africa to cast her eyes beyond the past and to some extent the present, with their woes and tribulations, trials and failures, and some successes, and see herself an emerging continent, bursting to freedom through the shell of centuries of selfdom.

I want to believe that, given the circumstances now, internationally and nationally, we can confidently proclaim the 21st century the African century. We do so because there is a new generation of African leaders who are willing to accept their responsibilities and leadership role to struggle for and to achieve our African revival. The long walk to peace and prosperity in Africa has commenced with the first major steps, Nepad and the AU. I hope and pray that the NCOP will play a very important role in this process. [Applause.]

Nkk J N VILAKAZI: Sihlalo ohloniphekileyo, isihloko esikhuluma ngaso namhlanje kulo Mkhandlu kaZwelonke wePhalamende leNingizimu Afrika ubaluleke ngendlela emangalisayo kithina sonke ma-Afrika.

Okokuqala ngifisa ukubonga uMongameli weNingizimu Afrika esibona ekukhuthalele ukuhlanganisa i-Afrika yonke jikelele, kwezomnotho nentuthuko. Lokhu kuzofezwa ubumbano lwamazwe ase-Afrika athandayo ukungena kulo mbhidlango nakuleli zinga le-African Union.

Siyazi sonke ukuthi lapha ezweni lethu kukhona izigaba zomphakathi ezehlukene. Kukhona abacebe kakhulu futhi abaphucuzeke kakhulu kwezemfundo, osolwazi nosozimali izigwili uqobo lwazo, kube khona futhi abanothile kakhulu ngolwazi nabaziholela kahle kanye nabahlezi kahle, abangaswele lutho noma-ke bengezona izinjinga. Kukhona futhi labo abathwele nzima kodwa bebe bekwazi ukusebenza bondle imindeni kodwa abangacebile, abazabalaza kanzima empilweni yabo, kube khona abanhlwempu abangasebenzi nabampofu. Imindeni yabo ivamisa ukuba nezimpawu ezingezinhle. Abantwana abakhuli kahle, imiqondo yabo kayinothi kahle iyakhubazeka kuye ngezinga le ndlala abasuke bebhekene nalo, abanye baphathwe izifo ezinhlobonhlobo. Abanye babo bayafa kulobu buphofu babazali babo.

Izinga lobuphofu lehlukene e-Afrika. Siyezwa emisakazweni futhi sibone nakomabonakude abantu nezingane bebhuqabhuqwa yindlala nezifo okwenziwa ukuhlupheka.

Ingculazi ifike yona yavala ngehlahla, ikakhulu endlaleni iyashanela nje. Yingakho-ke uMongameli wethu simshayela ihlombe ngokugqugquzela kwakhe ubumbano lwama-Afrika ekukhuliseni umnotho nentuthuko i-Afrika yonke jikelele. Sibonga nabanye omongameli kwezinye izizwe e-Afrika abazinikele ekubambisaneni noMongameli wethu ekugcwaliseni leli phupho lobumbano. (Translation of Zulu paragraphs follows.)

[Mrs J N VILAKAZI: Chairperson, the topic we are discussing in this NCOP of South Africa is very important to all of us in Africa.

Firstly, we would like to thank the President of South Africa, who is trying diligently to unite the whole of Africa in the economic and developmental spheres. This will be fulfilled by the unity of African countries that want to be part of this, at this level of African Union.

We all know that here in our country we have different classes. There are those who are highly educated, they have money and they are very rich. We also have those who are rich in knowledge and who earn good salaries. These people live well, although they are not rich. We also have those who are heavily burdened, but able to support their families, although they are not rich. These people struggle hard in life. We also have those who are poor and unemployed. Usually their families display bad characteristics. Their children do not grow up well, their minds are not well nourished or they are paralysed, depending on the level of poverty which their families are facing. Some suffer from different illnesses, while others die because their parents are poor.

There are different levels of poverty in Africa. We hear on the radio and we see on television people and children who suffer from starvation and diseases caused by hunger.

Aids has come to finish it off, especially in poor communities it kills everything. That is why we applaud our President for promoting African unity and also for promoting wealth and development in the whole of Africa. We also thank presidents of other African countries who are dedicated to working together with our President in fulfilling the dream of unity.]

Nksz B N DLULANE: Mhlali-ngaphambili, ndiphakamisa isilungiso: ilusizi into yokuba kungabikho mntu utolikayo xa sithetha iilwimi zethu. [Ms B N DLULANE: Chairperson, I am raising a point of order: It is sad not to have interpretation when we speak our languages.]

The DEPUTY CHAIRPERSON OF COMMITTEES: I thank the hon member for pointing that out, although it is not a point of order. We will look into it. The hon member Mrs Vilakazi may proceed.

Nkk J N VILAKAZI: Ukuze lo mbhidlango ube impumelelo, kubalulekile ukuthi kulolongwe ikomiti elihamba phambili kulo mbhidlango kanye nawo wonke amakomiti akhethiweyo ukuhola lo mbhidlango. Amakomiti kudingeke azi lezi zindawo ezikulo mbhidlango ngokuthi ahlangane nazo kuxoxiswane, kudingidwe izinkinga ukuze kuvezwe amasu namatulo azokwenza lolu bumbano lube nenzuzo kuze kuthi nalabo abangangenile embhidlangweni bazimisele ukungena ukuze i- Afrika yonke igcine isikwazi ukuzikhulisela umnotho, igcine seyithuthukile jikelele.

Ibhange lomhlaba i-IMF sonke siyawazi umsebenzi wayo, siyowazi kangcono uma sekukhona lolu bumbano. Ukujikeleza kula mazwe kuyosiza amakomiti aqondene nokuthola ulwazi olungasiza ekuhlelweni nasekwenzeni amalungiselelo namasu okulungisa izimo ngendlela efaneleyo. Okunye okubalulekile okudinga amakomiti akwenze ukuvikela ukuthula. [Kwaphela isikhathi.] (Translation of Zulu paragraphs follows.)

[Mrs J N VILAKAZI: For this campaign to succeed, it is important to train a committee that will lead other elected committees, and also this campaign. The committees should know the countries that are taking part in this campaign. They should visit them so that they can discuss things and find solutions to problems, come up with a solution that will make this unity a profitable experience. That will attract even those who did not join the unity so that the whole of Africa will be able to develop its economy, and eventually become a developed continent.

We all know the function of the IMF, but we will know it better once we have unity. By visiting these countries the committees will be able to acquire knowledge that can help in making preparations and developing strategies to do things in the appropriate manner.

Another important thing that committees need to do is defend peace. [Time expired.]]

Ms Q D MAHLANGU: Chairperson, Ms Dlulane was highlighting an important point. Other members did not hear what Mrs Vilakazi was saying. There is no interpreting for people who speak African languages.

The DEPUTY CHAIRPERSON OF COMMITTEES: The point has definitely been taken and I have passed on the message to the Secretary to look into that.

Ms M P THEMBA: Chairperson, hon members, ladies and gentlemen, while Nepad is a pledge by African leaders to place their countries, both individually and collectively, on a path of sustainable growth and development and to participate actively in the world economy, the role and task of the African Parliament and the African Union are not clear.

The need for African unity and an African Parliament is indispensable for the continent’s economic development. Whilst globalisation has increased the cost of Africa’s ability to compete, we in the ANC hold the view that managed integration presents the best prospect for future economic prosperity and poverty reduction. We are not unmindful that greater integration has also led to further marginalisation of our continent.

The ANC has expressed its views on this subject well in Umrabulo No 5 of

1. ANC MP Rob Davies explained that the ANC had taken a policy decision to engage proactively with globalisation and to look for the beneficial reinsertion of our continent as presenting both opportunities and threats, while recognising that we have strengths and weaknesses in engaging with globalisation. The contention of my presentation before this House is that only a highly unified African Union and parliament can negotiate this beneficial insertion of our continent into the global economy.

The question members of this House may pose is: Why is there a need for an African Union or parliament? The ministerial declaration adopted at the World Trade Organisation in November last year is of major significance for developing countries in general and for this continent in particular.

In agricultural trade, for example, subsidies on agricultural products produced in developed countries are now estimated to be worth more than two thirds of the Gross National Product of Africa. Moreover, instead of declining in importance, these subsidies have been growing in significance.

For developing countries, and our continent in particular, the most critical question is trade and the removal of barriers to access markets in developed countries in products where our continent is competitive or could become so.

Only a sophisticated and unified continent can negotiate an improvement in terms of trade in global fora such as the World Trade Organisation. A single lobby group for this continent would have more muscle and be in a better position to improve its bargaining power when negotiating with the developed countries.

A single African Union would increase the possibility of some reforms in the global trading system, potentially to the benefit of the developing countries.

Only large and powerful lobby groups such as the African Union would have the capacity in international fora to address the distortion in world commodity markets that are created by high tariffs and subsidies in developed economies.

An African Parliament or Union would be taken more seriously in global negotiations on trade. Currently, the demands of developing countries to rebalance a fundamentally inequitable global trading system are not hegemonic in shaping the negotiation process at the WTO. Only large and powerful lobby groups such as the African Union or Parliament can state our case.

We are witnessing a change in the terrain of our struggle. Our continent shall overcome. [Applause.]

The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Regarding the concern that there was no interpreting service, the Secretary and the Table staff have assured me that the matter is receiving attention.

Ms C S BOTHA: Chairperson and hon Deputy Minister, the desire for African unity has a long-standing history which can be traced to the continental revolt against colonialism. It culminated at the end of the previous century in South Africa becoming truly independent.

It is thus an indigenous perspective, reflecting a very particular economic, political, social and cultural integration between the states and peoples of our continent. Peace, security and political co-operation will lie at its heart, but it is economic integration which will be the true heartbeat of a lasting and successful union. This was even basic to the Cape to Cairo vision of the archcolonialist Cecil Rhodes. It will remain the top priority for Parliament to address.

A growing democratic culture is seen to underpin economic reform. While parliamentary democracy is not enough to deliver economic development, it does, however, offer mechanisms which are adapted to peaceful and sustainable, albeit gradual, development.

The desire for unity is not unique to latter-day Africa. Numerous international examples exist, such as the USA, the Chinese, the USSR, now departed, our own federal state, and the United Kingdom. All these unification processes came about, not peacefully, but as a result of force. The EU is an exception, and the reason for this contrahistorical process will no doubt be found in those overarching economic advantages that have made the union irresistible, despite numerous nationalistic objections.

Individual parliaments had to exhibit leadership and vision to achieve admission to and compliance with these unions. These parliaments were able to convince their voters of the desirability to be judged by norms and institutions which may be different from their own domestic traditions.

Nepad’s emphasis on good political and economic governance, including plans to develop a peer review mechanism, are among the features that have attracted the interest of the international community. The decision of the Commonwealth, including Presidents Mbeki and Obasanjo, to suspend Zimbabwe from the councils of the Commonwealth is a good example of what African leaders and parliaments will be required to do if they are serious about achieving unity and development in the interests of the continent as a whole. Parliaments will also have to prioritise not only the moral questions, but the critical issues which will be at the basis of successful co-operation, including the achievement of stringent debt ratios, customs agreements, labour standards, standardisation of produce, improved infrastructure, etc.

With South Africa being by far the most advanced economy on the continent, it will be easy for us to dominate the rest of the continent on every level. The challenge Parliament faces is to find compromises which will work for South Africa, but also, as has been said, for Mali or Burkina Faso.

Parliaments must accommodate the need for a differentiated approach to address existing inequalities. Parliaments have also been given the authority by the electorate to set the rules for the orderly management of society and to hold governments accountable for delivering.

As elected people, we must ensure that the Government uses its resources to inform our constituencies about the purpose and benefits of unity across our borders. Otherwise, there will be no such thing as a pro-people parliament nor commitment to further ideals such as the African Union.

In considering the role of Parliament, it is also essential to address the role of opposition. The effect of opposition criticism is to correlate government policy and public opinion on issues which have direct bearing on the life and welfare of the people. On the issue of African unity and advancement, the hon Colin Eglin had this to say:

The challenge facing Africa in the new millennium is a socioeconomic challenge of development, so that poverty can be rolled back, so that the countries and peoples of Africa can play a more meaningful part in shaping and sharing in the world economy.

As part of the African political landscape, we want to play our proper and meaningful role.

Lastly, it is probably going to take two generations or more before we begin to function as a union. Let us take that time to get it right. [Applause.]

Mr K D S DURR: Chairperson, the first imperative of our parliamentary role is for us to be the successful and effective Parliament that indeed we are, fulfilling the custodianship of the constitutional values we swear to uphold in their entirety and without compromise. In other words, we are a role model, a society with principles and values worth emulating. Parliament should be seen in Africa and the world to be the carrier and guarantor of human rights and responsibilities that is responsive and sensitive to the rights and interests of minorities and majorities alike.

Parliament should retain its constructive and critical faculty, without which real improvement in society is not possible. Our parliamentary system is not necessarily for export, but the universal democratic values of free men and women that underpin our Parliament certainly are. We all know that Africa and the world are watching us, so the role model of a successfully functioning parliament is absolutely paramount. If we discard our constitutional values as soon as we cross the Limpopo or enter an Arab tent, we will not be useful to anyone, let alone ourselves.

People must know that when they meet South Africans they are dealing with a fiercely free and independent people. The Government is not Parliament, and vice versa. We in the legislature can play a real role in conflict resolution, reconciliation, election monitoring, capacity-building, mentoring, and generally supporting, understanding and encouraging others on the road to democracy, and learning from them, may I say.

Furthermore, we can give moral support to parliaments to promote their independence from their own executives, for a start. It is not enough for Parliament to be democratic and representative; we also need to be effective custodians of liberty, freedom, oversight and transparency, and the watchdogs of good governance. Around the world and in Africa, Botswana is a good example. The freer societies are, the more successful they are generally. The difficult part is entrenching the values and principles of sustainable and effective democracy. The easy part is erecting buildings and structures, and having media events. The world has seen all that before and they remain very cynical. We must encourage others and reward those that share our values. We must be welcoming to those that do, and reject those governments and parliaments that subvert and violate the values in which we believe, for example, that rogue state, Zimbabwe, that is currently looting its own population.

Corruption is rife in Africa. The test for corruption is not that it occurs and that people are susceptible. The test is: how does parliament and the state act when it does occur, and what is the preventative machinery that is in place? In other words, in the South African Parliament, and parliaments in Africa, crime must not pay.

I am very proud of this Parliament, of what it has achieved and what it can do. I think that we as members of Parliament can play a very real role in reaching out to our brothers and sisters in Africa, and helping in this great enterprise onto which the President has set this nation. [Applause.]

Mr P A MATTHEE: Chairperson, I read in the Volksblad of this morning on the Internet an article by Maretha Maartens in which she says:

Ons het denkers gekry wat met visioenêre denke na die res van Afrika kyk. Hierdie land word gereken as ‘n leier op die gebied van vreedsame onderhandeling en bemiddeling.

Verder sê sy: [She goes on to say:]

Die mense van die land leer mekaar eindelik oor kultuurgrense heen ken. Dag vir dag beweeg ons nou nader na die warm hart van Afrika, wat eintlik tussen mense se ribbes sit.

What I want to say is that when we talk about people and thinkers with vision for Africa, Nepad is a signal from Africa to the rest of the world that the people of Africa have a vision for our continent, and have the pride, potential and the will to kickstart the revival of our continent. But to do so, we need both the material and moral support of America and the G8 countries. The support from big business for Nepad so far has been very encouraging.

The nations of Africa will now be holding their collective breath for a positive outcome from the coming G8 summit in Canada. Nepad is the socioeconomic development blueprint for the AU to implement its objectives. The focus in Nepad is on the role of the heads of state, but yet the tasks listed under Nepad’s democracy and governance initiative are mainly the responsibility of Parliament. The tasks include strengthening political and administrative frameworks and promoting democracy, transparency, accountability, integrity, respect for human rights and the rule of law. The strengthening of parliamentary oversight, participatory decision-making and combating corruption are the priority areas in this regard.

Collective resolve and action among heads of state alone are not going to solve Africa’s problems. They are not, in Maretha Maarten’s words, however good they are, the only visionary thinkers and the only people who have a vision for Africa. Those of us in the legislatures and Parliaments of Africa also have a very significant role to play.

The heads of state alone will not build African unity or democracy, which are necessary conditions for sustainable development. Parliaments need to give serious consideration to the development of a national understanding of the Nepad initiative. Our Constitution and political system in South African require that policy issues be resolved only on the basis of shared participation and responsibility between the legislature and the executive.

Consultation at crucial stages of the Nepad initiative, in order to give the legislature an early opportunity to comment on its content was, unfortunately, somewhat lacking. Parliament must now place greater emphasis on the use of report-backs by the executive to enable it to fulfil its constitutional responsibilities for the review and oversight of Nepad policies and programmes.

There are certain specific issue areas with a role for Parliament in Nepad. Regarding legislative organisation and procedures, we will have to look at our current committee system and see whether that still fits in with what is going to be required of us in playing a constructive role as far as the Nepad initiative is concerned. Mechanisms of good governance include the need to strengthen the democratic process and promote good governance, the observance and protection of human rights and ensuring freedom of the media.

Regarding legislative oversight over multilateral structures, to date there is inadequate information on how Parliament can monitor and evaluate the implementation of Nepad, let alone compliance with its requirements. We will have to investigate this further. We will have to investigate legislative participation in international negotiations. The current practice is that only the executive branch conducts such negotiations and informs Parliament after the fact. But the new era of co-operation between the legislature and the executive requires that the legislature should play a role in these negotiations.

There should be capacity-building for members of Parliament to enable them to play this rightful role and for members of parliament in all the parliaments of Africa to be able to play this role. This includes not only capacity-building in the sense of research, but also as far as the status of members of parliament is concerned vis-à-vis members of the executive and bureaucrats. [Time expired.] [Applause.]

Mr T S SETONA: Chairperson, hon Minister and Deputy Minister, ladies and gentlemen, today we are addressing a very critical subject, in the history of our nation, our people and our county, a subject on which depends the achievement of our vision of African success. This debate takes place at a time when our Government and our movement, the ANC, have declared this month the month of sustainable youth development. It is worth mentioning that 58 years ago it was the generation of young people - the generation of Nelson Mandela, Oliver Thambo, Walter Sisulu and many others - who, in the founding manifesto of the African National Congress Youth League, vowed that Africa’s cause must thrive.

That was a persuasion arising from the founding clarion call of the ANC, as the Deputy Minister mentioned earlier, in 1912 when the ANC, in pursuit of the unity of the subjugated, called for the unity of all the ethnic groups in South Africa. As we are debating this subject today, it is important to locate the role that young people should be playing in the whole issue of the African Renaissance and the New Partnership for Africa’s Development.

I am talking about African unity and development, and in this context we are talking about the critical role that Parliament must play. It is clear, even from the speakers who spoke before me, that consensus is emerging in this House, and I think that this consensus will inform the intellectuals and scholars who are constructing concepts on a daily basis. In the South African context post-1994, the only possible understanding of a parliament is that it is nothing else than a tribunal of the masses of our people.

It is in that context that I want to agree with all the speakers who have spoken before me that there is no way in which Parliament can play a critical role in the development of Africa and its unity without taking into account the aspirations and views of the masses of our people on the ground. Hence a critical role for Parliament and the NCOP in particular is to mobilise the masses of our people behind our vision for Africa’s development. I hope we are all united around that particular idea.

African heads of state and government met in Togo to adopt the Constitutive Act of the African Union. This Act laid the foundation for the creation of the African Union. The decision declaring the establishment of the African Union was adopted in Libya last year. It is this African Union that will replace the existing OAU. Allow me to mention just a few of the African Union’s objectives. Other speakers have already mentioned some.

These include greater African unity and solidarity between African countries and peoples of Africa; the acceleration of the political and socioeconomic integration of the continent; the encouragement of international co-operation; the promotion of peace, security and stability on the continent; the promotion of sustainable development at the economic, social and cultural levels; and the integration of African economies.

I think there is no way in which these ideals can succeed unless we, as representatives of the masses of our people, are able, on an ongoing basis, to interact with our people and involve them in a process that shapes and defines the particular destiny that we want to define.

Our President has been travelling around the world lobbying for international support for Nepad. We are proud to say that this partnership has been welcomed with open arms throughout the world. In fact the success of Nepad is directly dependent on the success of the African Union.

The success of the African Union will ensure that Africa will never again be marginalised economically in a globalising world. We will be a competitive bloc, a bloc that reaps the fruits of globalisation. As it stands, Africa is one of the richest continents in the world, but its economic activity accounts for less than 5% of world output. This does not come without challenges, hence today we are discussing critical tasks for the successful achievement of African unity and development.

To quote our hon President: ``Only strong political structures will be able to mobilise the people across the continent’’. I think the hon Matthee, Kent Durr and Sandra Botha have already mentioned that point. I am happy that today at least there is a convergence of ideas across the party- political spectrum on these critical issues and challenges that are facing our nation.

There is no doubt that the African Union will require leadership, and South Africa has already proved beyond any reasonable doubt that it has the willingness and capacity to provide leadership on that particular front. It is thus important that parliamentarians from throughout the continent engage vigorously, co-operate and work together to ensure that this century does indeed become an African century. This point of departure has to be shared by all of us.

Potential obstacles to an African Union have been raised repeatedly. These include problems of instability and conflict, economic underdevelopment and the HIV/Aids issue. As a young person in this Parliament I want to say that when we talk about this social ill, we should keep in mind that the majority of the people who are at the receiving end of this scourge of a disease are the young people. Other obstacles are the marginalisation of the continent’s rural masses and the violation of human rights.

However, our Africa, as the hon President often says, is an Africa of hope. Uganda has been successful with its HIV/Aids strategy. This is surely a clear sign of hope. The end of the war in Angola was a victorious moment for us as a continent.

The intervention of the South African government in Zimbabwe before and after the presidential elections has been about securing unity and common purpose among Zimbabweans, which is a critical tool for stability and economic prosperity in that country. It is in that context that the policy of our Government and the position that has been articulated by our President on Zimbabwe must be understood. As I listen to members of the opposition I am pleased that day in and day out we are beginning to come closer to one another in terms of appreciating challenges that are facing our country and how we can use our resources, both administrative and political, to assist our neighbours beyond the borders of South Africa.

The hon Kent Durr spoke about corruption being rife in Africa. We do not have to be historians to understand that that is indeed true. We agree with the hon member. But this corruption must be understood in context. It is not something which came after colonialism in many African states. Corruption was inherently part and parcel of the policies of the colonialists when they were dividing our people and creating their own stooges and puppet administrations. It is in that context that we need to understand this corruption.

The point of departure for all of us is not to bemoan all this corruption. It should be about how we unite as a nation, country and people to confront the threat of corruption. Are the old tactics of dealing with corruption still relevant in the current context? Those are the critical questions that we need to confront.

I want to believe that the position that has been adopted by the leading party in this country, the ANC, in dealing with corruption is outstanding, not only within our own country. It is the first ruling party in this country, of course, and among the few in Africa that have been able to deal with corruption in a transparent way. It is the first party in this country to come up with legislation, with Acts of Parliament, that make openness and transparency obligatory even for the members of the executive councils. [Time expired.] [Applause.]

The DEPUTY MINISTER OF FOREIGN AFFAIRS: Chairperson, it has been very encouraging to listen to the inputs made today, because what is clear is that the rampant Afro-pessimism of the past few years is now on the retreat. Even hon members from the opposition are able to discuss this very important issues looking at our weaknesses, but making constructive suggestions on how we move forward and how we deal with the problems. I think that is a remarkable advance. It reflects a political maturity amongst our colleagues on the other side. I think what we need to do is to accept the reality that we do not mind opposition. In fact, we welcome constructive opposition which is geared towards assisting us in dealing with our weaknesses and moving forward.

Therefore, all parliamentarians, not only in Government, but also in opposition, must now begin to see themselves as positive ambassadors for a positive message of South Africa and, indeed, of our continent. I am reminded of a story by Ken Owen published yesterday in the Business Day, in which he reflected on his experience with a top British businessman who came to South Africa. This businessman said that before he came he was briefed by so many people who told him that he was walking into a state of anarchy, a country that was collapsing, in which economic system is bad.

This reminded me of what some of our colleagues said some time ago. The businessman said that when he came here he discovered within two days that those who were briefing him did not know what they were talking about because in South Africa he found a vibrant country. He said that he found an economic system that has been managed excellently, and that the people, despite the problems they had, were committed to findings solutions and becoming a winning nation.

I think we can repeat that experience 101 times - about people abroad being given negative messages based on the assumption, which is always referred to, that nothing good can come out of Africa. So today’s discussion does give me a little hope that we have crossed that rubicon, and that people are now beginning to act as opposition in the interests of the nation as a whole and not just for the sake of opposition. I welcome that.

I think we need to look a little more closely at the suggestions of what the parliamentarians, the legislature and the executive, must do. It has already been 18 months since the President put forward the whole process of the African Union and Nepad, and, in fact, suggested certain things that Parliament must do. The parliamentary working group is a very important instrument for interaction. We must improve the interaction with the legislature and the executive. There is no doubt about that. Some of the suggestions that have been made we must take on board.

Let me end by saying that Nepad will win or fail on the basis of a partnership. The partnerships between governments is inevitable. One must have partnerships with governments. Ultimately the most important thing will be partnerships between governments and civil society, as I mentioned to the very successful meeting with the private sector in Durban, at which so many top members of the private sector had signed this declaration in support of Nepad and partnerships.

We seek partnerships because, indeed, without partnerships Nepad cannot succeed. I hope that parliamentarians in their study groups, in the portfolio committees and in the debates that they organise, will start focusing more sharply on the concrete issues that confront us in implementing Nepad, and really make a positive contribution to help us succeed because, as somebody said, the earlier challenge of the OAU was decolonisation and the fight against apartheid. The challenge now is what Minister Erwin has to lead, the challenge to bring about economic reconstruction and economic development so that we can end the poverty in which the vast majority of our people live.

I thank all hon members. They must become good citizens in the fight against poverty and we hope that together we will succeed. [Applause.]

Debate concluded.

                         APPROPRIATION BILL

                           (Policy debate)

Vote No 31 - Trade and Industry:

The MINISTER OF TRADE AND INDUSTRY: Chairperson, hon members, my colleagues the MECs who are present here, ladies and gentlemen, the chairpersons, and many of the chief executives and top management, not only from the national Department of Trade and Industry, but also from the provinces who are present, today I would like to try something new in this House. This year I would like to present the budget of the Department of Trade and Industry in a manner specific to this Council.

For the first time, the MECs and I, and our respective departments, have worked together to co-ordinate our inputs for today’s Vote. Many of my provincial colleagues are here today, as I have indicated, and will focus on the events in their provinces.

Secondly, in my own address I will focus on our relations with the provinces and what the Department of Trade and Industry and the DTI group do in the provinces. Together we are building a team for the development of our economy. This is co-operative governance in action. I would urge members to make use of the material that we made available today, in particular, the publication on provincial strategies, which hon members should have with them in these little paper - not plastic - bags.

I think this is the first time we have put together a report in a standardised format on all the provinces with the strategies that they are undertaking. I also urge hon members to have a look at the exhibition in the NCOP chambers - the old NCOP chambers - because I think, like last time, when hon members saw satellites, they will now really see some very interesting things such as wine and jewellery from the Free State, our own indigenous silk from the North West, fantastically exciting clothing, paprika and a whole range of other products from the Limpopo province. Hon members will also see, from the Western Cape, the new technology we mentioned last time - the new exhaust systems - and from Gauteng the very exciting projects that they are doing. Each of the provinces’ exhibits, I think, indicate to hon members just how diverse our economy is and what the provinces are doing.

The South African Constitution enjoins us to build an efficient and effective Government that is responsive to the needs of our people. To do this we have to work together with all levels of Government in an integrated approach in order to impact successfully on this economy. Through our experience we have become better at intergovernmental co- operation and have realised that to reach our people, we need decentralisation, combined with co-ordination, co-operation and harmonisation.

We are learning to understand that co-operative governance is intended to be more than simply a constitutional ideal, but a means of enhancing Government service delivery in the context of the political, social and economic realities of all nine of our provinces. I believe that the Department of Trade and Industry has improved the relations with provinces, and we are commencing work with local government. The DTI is committed to continuing to build this interaction as a fundamental strategy to pursue economic strategies that are aimed at overcoming poverty and inequality through sustainable growth and development.

The overarching objective of our Government is to ensure that sustainable development takes place, that employment opportunities are created and that poverty and inequalities in the economy are eradicated. Members will be aware of the Microeconomic Reform Strategy which was announced by the President in 2001. We have made a narrative version of this available, as it is another achievement in our efforts to restructure the economy.

The strategy requires that all spheres of government focus increasingly on microeconomic reform to accelerate economic growth, generate employment, reduce economic inequalities and promote competitiveness. An important new dimension to this strategy is the geographic spread of productive activity and sustainable economic opportunities. This is why the nine provincial growth and development strategies are of such importance.

To build onto this economic action plan, we have published the Integrated Manufacturing Strategy, which is essentially a vision for the manufacturing sector of this country. Joint parliamentary hearings were held a little more than four weeks ago on this strategy. In addition, revised Small Business and Black Economic Empowerment Strategy documents will be released to form part of a wider programme by the DTI to build a sound economy that meet the needs of people in an equitable manner. To this end, we are going to specifically look at alternative types of enterprise, including, as we have indicated, co-operative.

The budget of the DTI increasingly reflects these priorities and the growing alignment between the priorities and activities of the DTI in the provinces. We have specifically set aside funds in our budget for intergovernmental relations to promote this alignment process.

Intergovernmental relations represent an opportunity to effectively utilise state resources and the expertise that resides in the provinces and at local and government level. The DTI has taken a number of initiatives to create a platform for policy dialogue with other spheres of government.

Every six weeks, the DTI’s executive board meets with the heads of departments from the provinces. The director-general chairs these meetings. I also meet regularly with the responsible members in the provincial executive councils to discuss strategic issues that require intergovernmental consultation, co-operation and co-ordination.

In addition, the executive board undertakes provincial visits on a monthly basis at which they meet with the captains of industry, local councillors and the members of provincial legislatures to exchange views and ideas, as well as learn from each other about strategies for economic development and growth in the provinces.

This forms part of a concerted effort from our side to create a platform for effective engagement with the provinces and, on a broader level, to ensure that our policies are moving in the same direction. Our interaction with the provinces creates an opportunity to also assess our performance in service delivery, to set benchmarks and to identify best practices. This interaction informs us of the difficulties and challenges faced by all spheres of government, about achievements that they have made and about delivery challenges. Through this learning process, we also develop better ways of working, better ways of delivering quality services more efficiently and more effectively.

Our Constitution provides for certain responsibilities to be shared concurrently between national and provincial government. These include important public interest issues, such as consumer protection and trade metrology, as well as the regulation of the gambling and liquor industries.

We have spent considerable time over the previous seven years defining the roles and responsibilities of each tier of government in respect of these concurrent powers. This has been an important debate, and what has emerged is a clear division of labour that ensures that efficient and effective customer delivery occurs and that the provisions of our Constitution are upheld.

We recently formulated a new liquor Bill with provinces, and expect to complete amendments to gambling legislation soon. I will shortly be tabling this legislation before Parliament for hon members’ consideration.

The main challenge we have is to raise the levels of investment and employment. This can be best achieved if there is a dynamic synergy among national, provincial and local government planning. Integrated development plans are critically important tools for meeting this challenge. Provinces are addressing the task of aligning these IDPs with their own provincial strategies, and the DTI is working closely with the Department of Provincial and Local Government and is represented on the integrated development plan evaluation committee. This greater degree of co-ordination will ensure that the whole country becomes more enterprise-friendly, attracting higher levels of domestic and foreign investment and generating more small business opportunities and jobs.

Our many comparative advantages need to be better marketed and understood both at home and around the world. This diversity of opportunity is one of South Africa’s greatest assets. Most provinces have established one-stop investment centres to facilitate investments in the regions.

An exiting new development is increased co-operation between provinces. Whilst provinces may compete on the efficiency of service they offer - this is a very healthy form of competition - there is now a greater understanding of the need for and basis of the geographic spread of productive investments. As we refocus our attention on the development of integrated value matrices, linking raw materials, production and logistics, greater co-ordination between provinces is essential. For example, co- operation between Gauteng as a manufacturing hub and KwaZulu-Natal as a logistics gateway is essential to ensure that our goods reach their destinations in the most efficient manner possible.

As a result of our improved interaction with each province and the strides made by provinces in analysing their economies, a more nuanced understanding of the differing comparative advantages of the different provinces has emerged. I will highlight just some of these differences. My colleagues, no doubt, will provide more details on their specific economies.

The provinces of Gauteng, KwaZulu-Natal and the Western Cape contribute more than two-thirds of South Africa’s GDP. These provinces are characterised by a wide variety of activities that include the industrial sector, agriculture, tourism and trade and the financial services sector.

The Western Cape, on the face of it, seems to be dominated by agriculture, but in fact has a very diversified economy with great potential. Its contribution to the GDP of South Africa is the third highest. It is imperative that we achieve some stability of planning in the province, as it would be a mistake to rely on market forces alone. High-value manufacturing needs to be nurtured, and requires both certainty and a more stable planning process. For example, an exciting development in the province is the emergence in South Africa of the first information and communication technology cluster, ICT, that resembles similar clusters, such as the UK’s Silicon Valley in Cambridge.

KwaZulu-Natal, with its key strength in trade and logistics infrastructure, is the second highest contributor to South Africa’s GDP. The port of Durban handles 30 million tons of cargo worth in excess of R100 billion per year. Despite the impressive volume of trade, improving the managerial capacity and efficiency of operations in the port remains a challenge. This is reflected in the small number of containers handled per hour in the port, 17 per hour, while Singapore, for example, handles 85 containers per hour. Because this port plays such a crucial role in our economy it will be the first concession of a container terminal in South Africa.

Our success in growing our exports presents us with new challenges. Durban needs to handle significantly larger volumes of cargo than it has ever done in its history. To do this we must turn to more experienced container terminal operators. It is a matter of urgency, as we cannot afford to slow down our growing imports and exports.

Gauteng is the largest contributor to South Africa’s GDP at 36,5%. [Interjections.] That is history, not work. [Laughter.] The three most important sectors contributing to the GDP are financial and business services, logistics and communication, and mining. The growth and development plans for the province are underpinned by the Blue IQ projects. These consist of 11 different mega projects in economic infrastructure development in the areas of technology, tourism, transport and high value- added direct investment in the next 10 years. The aim is to attract some R100 billion of this direct investment. In excess of R2 billion has already been allocated by the Gauteng provincial government to facilitate these investments. There is a display of them at the NCOP chambers.

Although the platinum province is the third lowest contributor to South Africa’s GDP, the North West is the dominant province in mineral sales. Mining contributes 35,5% to its economy and 17,8% of total employment. Manufacturing is almost exclusively dependent on the performance of a few sectors in which the province enjoys a competitive advantage. These are fabricated metals, food and nonmetallic metals. The platinum SDI can unlock further development. It is on the coast-to-coast highway that links Maputo port in Mozambique to Walvis Bay in Namibia. Around 200 potential project opportunities in tourism, manufacturing, agriculture and mining have been identified.

The Limpopo province has a strong rural bias. Its growth strategy centres on addressing infrastructure backlogs, alleviation of poverty and social development. With the exception of services, the top performing sectors are in the primary sectors, including mining, quarrying, agriculture, forestry and fishing. Underpinning the growth and development strategies in the province are the Phalaborwa SDI and the N1 Corridor, which encompass agro- processing and mining beneficiation activities. Regional economic integration takes the form of the so-called golden horseshoe, which aims to create a single reserve that will arc from the Kruger Park in the east around to Botswana in the west. The culturally and historically significant Mapungubwe site will be included in this development initiative.

In Mpumalanga the Maputo Corridor, which links the province with Gauteng and Maputo in Mozambique, heralds a new era in terms of economic development and growth in that region. As the first international toll road in Africa, the corridor aims to attract investment, unlock local economic potential of the landlocked parts of the country, and thus generate sustainable economic growth that will lead to sustainable good quality jobs. The best performing sectors in the province include mining, manufacturing and services. Tourism and agro-processing are potential growth sectors in this province.

The Northern Cape is an important contributor to South Africa’s primary production and has considerable potential for the beneficiation of these primary commodities. What is also interesting to note is the growth of value-added activities, including game farming. Food production and processing for the local and export markets are growing significantly. Underpinning the growth and development plan of the province are the investment projects that link up with the existing plans of the Namaqualand Development Corridor. The focus is on the beneficiation and export of sea products.

In the context of our Nepad objectives, these four provinces, the North West, Limpopo, Mpumulanga and the Northern Cape, have a very important role to facilitate increased trading links and regional co-operation with our neighbours to the north.

The Free State, best known for its maize production, has in the last decade reduced its dependency on this primary sector, and has become a manufacturing economy. Many people will be surprised to learn that 14% of the province’s manufacturing is classified as high-technology industries, which is the highest percentage of all the provincial economies.

This growth in high-tech industries is significant in the context of the changing contribution of the gold-mining industry to the gross geographical product. The province’s three-tier development strategy centres on competitiveness, empowerment and capacity-building, as well as beneficiation.

The first Industrial Development Zone to be proclaimed in South Africa was Coega in the Eastern Cape and we are confident that this is attracting significant interest from large investors. This province is the hub of South Africa’s auto industry. As the country is improving its export performance in the context of an integrated manufacturing strategy, the province has the potential substantially to increase its contribution to the manufacturing sector. The East London and Coega purpose-built ports will undoubtedly position the Eastern Cape as one of the key competitive areas in South Africa. The challenge of a more equitable distribution of the benefits of these developments into rural areas remains.

At national level, the DTI is improving its efficiencies to ensure that our services and products are widely accessible and that they are delivered faster each day. We have launched the DTI’s customer contact centre about three weeks ago. I would like hon members to note this number, because queries should not be directed to me but to this number please, 0861 843

1. Now, that 843 384'' on a cellphone spellsthe’’ DTI. From now on we are able to quantify the number of calls we receive, what the frequently asked questions are and how long it takes to respond to a query. In addition, we are able to check whether staff members do pick up their phone calls. Some provinces will be launching their own call centres in the next few weeks and I am pleased that we will be able to co-operate with them.

Given the importance of manufacturing, let me pay some attention to the manufacturing advisory centre programme in the provinces. It has produced significant results. Over the past financial year the Manufacturing Advisory Centre programme has increased its presence from two to seven provinces and currently has 16 operational offices across the country. Other targeted support programmes such as the franchise advice and information network will be rolled out in the provinces.

With regard to some success stories, in Mmabatho in the North West a group of sewing women early in 2001 pooled their resources to form Mmabatho Textiles and Printers. The local Brain affiliate - hon members have information on that in their packs - assisted the group to develop a strategy. Today this company has won several tenders worth thousands of rands to supply hospitals and schools in the region with high-quality overalls, dust coats and bed sheets.

In Gauteng, MNH Building Construction, a black-owned building and renovation company, similarly approached Brain and with its help has since won a tender to the value of R2,2 million for renovations to Tembisa Hospital. They approached Khula Credit Guarantee Scheme for assistance at the start of the project and were granted a loan of R1 million. These are some of the success stories that we are increasingly encountering.

A study on the impact of Khula products was conducted recently with a view to improvement. We are also in the process of reviewing the mandate of Khula and the National Empowerment Fund. Our figures show that most Khula Start and Credit Guarantee Schemes are allocated to KwaZulu-Natal, followed by the Northern Province and Mpumalanga. Jobs created by Khula-supported businesses since inception amount to over 700 000 jobs supported.

The IDC has had tremendous success in financing small businesses in various sectors of the economy. Over 70% of all IDC loans in the last financial year were allocated to small manufacturing enterprises. The IDC has an important role in facilitating investment in the provinces, and is financing 100 tourism projects across South Africa. Each province stands to benefit from this R1,2 billion investment in a whole range of tourist infrastructure.

In addition, another major contribution has been investment in beneficiation. Recently, the IDC’s facilitation of the successful restructuring of the steel sector, through the unbundling of Iscor and the formation of Khumba, has provided a boost to the economies of the Northern Cape, the Western Cape and Gauteng.

The CSIR is undertaking work in all provinces. I think one of the most interesting is the beneficiation of natural products into various drugs, and using the products we have for commercial purposes, such as pharmaceuticals and food. The CSIR manages the Technology for Women in Business programme and next weekend we launch the SA Women’s Entrepreneur Network. Both of these impact on all provinces.

Our job would not be fulfilled if we did not empower people in the rural areas. One of the projects set out in my speech, as hon members will see, is a project by the SA Bureau of Standards to upgrade rural schools’ science capacity. These are just some examples of the offerings available to provinces from the various institutions of the DTI.

I believe there are many signs that the fruits of our hard work are beginning to ripen. More than ever, we must combine to take advantage of the positive developments in our economy. The greatly improved working relationships between levels of government must be consolidated even further. What is a matter of great satisfaction to me is that all provinces are brimming with potential. We have no cinderella provinces, despite the historical legacy of uneven development. Each province is very different but, as I have stressed, our diversity is in fact our strength.

I would like to thank my provincial colleagues for their great spirit of co- operation and I congratulate them on a year of very hard work. We are certainly advancing. My thanks to Mosheen Moosa and his committee for their hard work and to this House for its unending interest and attention, combined with a healthy sense of humour and goodwill. The shared vision and concrete endeavours that I have outlined today would not have been achieved without the commitment of key individuals, including the Deputy Minister, whom I would like to wish a speedy recovery, as well as other members of the DTI team and its institutions. [Applause.]

Mr M V MOOSA: Chairperson, hon Minister, my hon colleague Rob Davies from the National Assembly - I am very glad he came to listen to the debate - hon director-general, members of the DTI group of institutions … We have Mr Joe Foster somewhere. Is he still there? I am sure he is nostalgic about not being down here. Hon members will remember that Mr Foster was a member of this House.

This particular debate taking place today is different, and unfortunately I do not know if all of that has been made clear, so I am going to mention just a little of what is happening today. For the first time in the history of the NCOP, we have managed to get all nine provinces to display some of their products and some of their economic activity in Parliament. Hon members are aware of a display that is taking place outside the library in the NCOP foyer. Some announcements were made this morning. I am sure members who heard those announcements would have gone there to have a look at the displays of each province’s economic activities.

I want to thank Seroge Naidoo and members from the DTI who made that display possible. A very special request was made to MECs to participate in this debate through the MinMec process. I thank the hon the Minister for making that request. Unfortunately only four MECs managed to take part in this debate. Hopefully next year we will get all nine MECs. The idea of having a debate such as this is that at least once a year we should have key economic leaders from the different provinces of the country coming together in one place, sharing their ideas, and talking about what they are doing. We know that they do it all the time in MinMec and in meetings, but somewhere along the line, once a year, the public should be able to get a grasp of what is happening regarding economic activities in different parts of the country. It is important that we make this a memorable event once a year.

I want to thank members of provincial departments who have made themselves available to come here to kickstart this process. Hopefully, we will get political heads here next time.

I want to say that it is quite exciting to stand up and participate in the debate at this particular juncture in our history. The Minister wrote an article for the Sunday Times’ Business Times in April 2002, headed ``We are talking about a revolution’’. I do not know how many people saw that article, but I think it is something members would want to read. It starts out by saying that few people now realise quite how severe the crisis facing the South African economy was in the dying years of apartheid. What the new democratic South African Government did in the years following the 1994 elections, was to reverse a strongly ebbing tide of fortune and save South Africa from deindustrialisation. This is not a false statement that is being made. Hon members will remember that by the time we had taken power in 1994, interest rates were rampant, inflation rates were way out of line, productivity was on the decline and a whole range of things were happening that indicated that there was only one way this country was going to go if we did not have a fresh, new and innovative strategy in place.

After 1994, when the new Government came into power, we found that, slowly, through a process of trial and error, we have reached a stage where one is excited to stand up and say that at last at the level of the coalface of the economy, Government, Government leaderships and certainly the DTI, are beginning to grasp the issues and take the bull by the horns and drive it in the right direction. In that sense, I just want to go through a few things that the DTI has done in order to bring about what we are talking about as a revolution, an economic revolution in this country.

To have a successful revolution, we need to have an army of focused, committed and loyal soldiers. We cannot have a revolution without that. The DTI has taken on this challenge remarkably. Over the past three years the DTI has assessed and reassessed every single individual in the department. Every employee has been bedded down with a rigorous set of measurable performance targets, and, where necessary, extensive skills development and training has taken place. [Interjections.]

Hon members can say ``wow’’, but that is probably because they never come to the committee meetings. [Laughter.]

For any revolution to be successful, we need to have a well-oiled organisation that is responsible, responsive and efficient, and is as quick as a flash with responses. Today the Minister announced to this House that a new call centre has been set up in the DTI that will respond to members’ requests in an instant. Members will be sent to the right part of the right department, where the request belongs. Members will not be shunted and pushed around. If the DTI cannot help, one will be told that one will be called back.

This system is in place for big companies who phone in, and for small businessmen from rural areas who call in. The DTI, together with the parliamentary committees, has engineered, re-engineered and tweaked every single aspect of its organisation. Today we have designed a modern first- class DTI, in the form of an accountable corporate structure that is becoming the envy of private companies and public corporations alike. Under the banner of its clarion call ``Sisebenza Sonke’’ [we work together], the DTI has set up a number of enterprises inside its structure which are of a corporate nature.

These enterprises manage a group of approximately 17 companies and institutions that are delivering various services, and are broadly known as the DTI group. People sitting up there are here today to account to the electorate regarding what that DTI group does. The executive management unit of the DTI demands cutting-edge efficiency and delivery from each and every one of these institutions. The tolerance for inefficiency is zero.

Any revolution needs a public face, and the DTI has renovated its existing premises to uphold a progressive image. Today, the DTI has started a trend. If one goes across the road to 120 Plein Street one will see every other government department beginning to do what the DTI has started doing. Its public face says: ``We are professionals and we are here to serve efficiently, quickly, and responsibly.’’ The DTI is at the moment in the process of building supermodern world class premises in Johannesburg to house its operations.

Every aspect of the public face of the DTI has been dealt with. Receptionists and switchboard operators have been told to smile even when they speak on the phone. When the phone rings, they have been instructed to answer the phone on three rings. If that does not happen, there are whole lot of mechanisms set in place to deal with this. No caller must be left shunted from pillar to post in the DTI.

However, no matter how well the DTI does, it cannot do this alone. Provincial Economic Affairs Departments must take a leaf out of this book, and begin to demand the same level of efficiency at provincial level.

Every single one of our 234 local governments must have economic development units that work at the same level of efficiency and delivery. Our processes have to be integrated, as the Minister mentioned in his speech, involving the departments of provincial and local governments. Departments delivering infrastructure such as roads, schools and those things that we need every day for our people, must do this in a way that ensures that economic imperatives in those subregions are met. This is the way to build an economic revolution.

I just want to bring to the attention of the House some things that the DTI has put into effect. Unfortunately, the package did not get to all the members, so we will ensure that we deliver it in their pigeon holes tomorrow. I will just tell members basically what was in that package. In that package was a document called ``Support for Small Business in South Africa’’. We have an organisation in the DTI called Brain, which provides assistance and support for small businesses in every possible manner, with regard to their needs, from financial assistance to support for technology, support for markets and marketing of products, access and knowhow, business plans, and every other thing small businesses need. We have set up an organisation to do this, but the organisation does not exist in a little office somewhere in Pretoria. The Minister has just announced that there are 16 one-stop centres that have been set up throughout the country. If a small business goes to that centre, they will get well-rounded, balanced service from the DTI.

This is the kind of work the DTI is doing and the country needs to know this. Also inside the package were a number of Nemad Trust documents that we delivered to the nine MECs. Four of the MECs have received them, and I am sure they will speak about them. Inside that document there is listed a whole range of accredited organisations that the DTI has established and identified. When I say ``accredited’’ I mean they have been checked out to see whether the quality of their service is acceptable to the DTI.

These organisations have been detailed and they receive support from Government to provide assistance to small business organisations working out there. That is the level and the depth of the revolution that is taking place.

I want to say to the Minister that I have been involved in this complex process of the Mineral and Petroleum Resources Development Bill recently. The opportunity this has given us is to go out into the little towns, and see what is going on with small miners throughout the country. I went out to a little town called Springbok, where we met a lot of small miners, who basically expressed to us their difficulties with regard to mining and related activities.

While I was there, I could not have been better convinced of the appropriateness and correctness of the integrated manufacturing strategy that we put in place. The fact of the matter is that there are small businesses in this country - I only learned this a month ago - that are producing small miners, alluvial and related miners. These small miners are producing 20 000 carats of diamonds per month, they say. I was quite shocked. I almost fell off my chair.

These diamonds, in raw form, are going to the big companies which are marketing them to the foreign market. With this happening one asks the question: Why are Springbok, Kimberley and Kuruman not the diamond capitals of the world? The reason for that is that we have not had some kind of integrated manufacturing and beneficiation strategy in place. We have not had a strategy in place that says that we must inject sufficient and necessary skills into those entrepreneurs who are working hard to run honest businesses in different parts of the country, to enable them to beneficiate their products and to give them the mechanisms so that they can find the markets, at the right prices.

The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Hon member, you have one minute left. Mr M V MOOSA: The point I am making is that the integrated manufacturing strategy clearly is the way to go if we want to beneficiate products. We are finding, for example, that most of the resources that are being mined in this country are being exported, and that we do not have the skills in this country to do the simplest of things, for example, smelting manganese, so that we can beneficiate products in respect of manganese, gold, diamonds, platinum and so forth. An integrated manufacturing strategy can certainly help us do that. I see Alistair Ruiters is smiling. I do not know why he is smiling. Maybe I am saying something right.

These are the experiences that we encounter on the ground when we go out there and see what is going on. It is only a revolution that can meet the challenge facing our people with regard to employment, economic empowerment, and spreading the base of the wealth of our country. The Freedom Charter enjoins us as leaders at national, provincial and local levels to find these entrepreneurs and organisations that need assistance, and to help them with the process of getting there. In conclusion, I am sure the MECs will deal further with some of the issues in the provinces.

Dr E A CONROY: Chairperson, Minister Erwin, MECs and colleagues, it is my honour to address this House in the budget debate on the Trade and Industry Vote on behalf of the province of Gauteng. The Gauteng Department of Finance and Economic Affairs recently undertook a process of strategic introspection, with the purpose of delivering on its provincial priorities, which in turn gave rise to a revised vision, namely the provision of excellence in financial management, and the optimisation of its contribution in the creation of an enabling environment for economic growth.

As far as the economic component is concerned, the driving force towards this vision is, in the first instance, the achievement of economic growth and development through investment in strategic economic infrastructure that boosts the competitive advantages of key sectors of the economy; increased trade and investment; and contributing to an ethical business and regulatory environment. Secondly, we strive towards an output-driven, ethical and people-centred administration which reflects the demographics of our province.

The Gauteng budget breakdown reflects the importance placed on achieving economic growth and development. No less that 84% of the budget is allocated to growing the provincial economy. In terms of the Government’s financial system classification, the capital allocation of the budget constitutes 75%. Gauteng remains committed to growing the provincial economy and these allocations are proof of our sincerity.

The strength of the Gauteng economy can also be seen by its sectoral contributions to the gross domestic product. The finance and business services contributes 50%, transport 44,2%, construction 39,3%, trade 39,2%, manufacturing 34,7% and community services 31%. The Gauteng economy employs 32% of the people in formal employment, and with the exception of the agricultural and mining sectors, the province is the leader in sectoral employment. Of people employed in the financial and business services sector, 51,6% are employed in Gauteng, with 42% in transport and 35,2% in the manufacturing sector. It is therefore clear that the Gauteng economy contributes more than one third of the national GDP.

The year 2001, which was the first year of implementation of Blue IQ, delivered a rich harvest of accomplishments. The Gauteng Provincial Government demonstrated its commitment to public-private partnerships in an inaugural ``Blue IQ Means Business’’ week which aimed at exploring common areas of interest with the private sector. The public’s positive response to the launch of Blue IQ projects, such as the Mary Fitzgerald Square and the Nelson Mandela Bridge in Newtown, also encouraged our provincial government to the extent that 2002 will equally pose challenges for Blue IQ.

The Gauteng government has accelerated its campaign to raise awareness of business opportunities within its projects in the current financial year. Expected highlights of the year are the completion of the Metro mall and trading facility in July, together with the Turbine Hall development in Newtown and the turning of the first sod at the site of the Innovation Hub in Tshwane. The Gauteng provincial government is committed to excellence through skills development and the training of our citizens and has, through its Automotive Industry Development Centre, signed a R12 million agreement with four Gauteng-based tertiary institutions.

The Alternative Information and Development Centre, AIDC, aims to improve capacity in technical skills training, automotive engineering and managerial skills in the automotive industry. It has begun to reap substantial rewards and has begun to establish its credibility in the automotive industry. Over 3 000 students have already completed courses at these institutions.

I hope members will allow me to boast a little at this point. Hon members might have read in the press that the BMW factory at Rosslyn near Pretoria is now building BMWs of a higher quality than the mother factory in Germany, and even of a higher quality compared with other luxury cars from the original plants in Germany and Scandinavia. This is not propaganda thought up in Johannesburg, but is the outcome of a research project by the influential J D Powers and Associates of America. This is indeed not only a feather in the cap of Gauteng-based industry, but also an indication of what South African industry is capable of.

The influence of the Blue IQ portfolio of projects has begun to impact on the Gauteng economy. The May 2002 issue of the Nedcor property finance report has acknowledged the role of the Blue IQ projects on the property markets. It mentions that growing public-sector investment is adding a new dimension to the property market and that 2002 is expected to be a year of significant public-sector investment with positive spin-offs for the property market in general.

It is clear that the investments of the Gauteng provincial government are having the desired impact as private-sector investments are being mobilised to take advantage of the opportunities created.

Increased investment has been identified as the cornerstone of economic development in Gauteng. In 2000-01 the Gauteng Economic Development Agency, or Geda, facilitated investments to the value of R610 million and the creation of 1 710 primary jobs. This figure does not include secondary or downstream jobs. The ultimate objective of Geda is to increase its contribution towards the growth of the Gauteng economy and to indirectly improve the growth prospects of the South African economy.

The Gauteng Manufacturing Advisory Centre, or Gaumac, has been fully established as a section 21 company to service small and medium manufacturing enterprises in Gauteng and was successfully launched in Sedibeng, Ekurhuleni and the West Rand with operational centres in Vanderbijlpark, Germiston and Klerksdorp.

The impact of Gaumac will be evaluated on the basis of SMMEs contacted with whom working relationships ensued, the value of projects awarded and jobs sustained and facilitated. It has set an annual target of 300 projects valued at R4,5 million and aims at sustaining 3 750 jobs and facilitating 600 new employment opportunities. Based on its performance thus far, we are confident that Gaumac will meet and even exceed its targets. It has emerged that so far Gaumac has managed to sustain 1 401 jobs through its involvement with SMMEs.

The highlight of the previous year as far as consumer affairs is concerned was the launch of the consumer office on wheels, an initiative which came into being in the spirit of Batho Pele - the spirit of taking service delivery to the people.

In conclusion, the call of ``a better life for all’’ is not just a slogan in Gauteng. It has become a way of living for the Gauteng provincial government, also as far as sustainable economic development is concerned. We support the Budget Vote on Trade and Industry. [Applause.]

Ms M I MODISELLE (North West): Chairperson, hon Minister, hon members, ladies and gentlemen, I thank you, Chairperson, for the opportunity to address your august House on the occasion of the DTI’s Budget Vote. I congratulate the Minister on his dynamic speech and concept for today’s debate. Because of time constraints I am going to exclude about six pages of my prepared speech which merely elaborate on background information and go straight to the state of the real provincial economy of the North West.

Let me start with sectoral performance. The main sectors driving the economy of the province are mining, agriculture, tourism and manufacturing. The mining industry, which comprises 87 mines, contributes 44% to the provincial economy and employs some 100 027 workers. Agriculture contributes 13% of the provincial economy, producing 30% of the nation’s maize. Other produce includes citrus, sunflowers, tobacco, cotton, wheat and livestock. About 10% of the national tourism income is generated by the North West province.

The economic activity of the province is not, however, evenly spread. The major concentration of economic activity is in the Rustenburg, Brits, Hartebeespoort Dam, Klerksdorp, Potchefstroom and Orkney areas. These areas are dominated by the mining industry, manufacturing and tourism. The rest of the province is dominated by arable and livestock agriculture. The Bophirima region is the most economically depressed and underdeveloped part of the province.

The integrated economic and industrialisation development plan, the draft North West economic and industrialisation plan, has been completed. Consultation was undertaken with various stakeholders such as provincial and national departments, local authorities, labour and the private sector. Inputs are still awaited from the integrated development plans of local authorities that are still under preparation.

Once this process is completed, the plan will be submitted to the executive council. Thereafter it will be distributed to stakeholders. This plan is designed to be a blueprint which is expected to direct all economic activities of all agents in the provincial economy.

Employment trends in the province mirror those at national level. Although output in most sectors has improved, in particular traditional sectors such as mining, agriculture and manufacturing, employment opportunities have decreased. However, we have an increase in the employment in the tertiary sector - that is, trade, business and financial services. The share of unskilled labour as a percentage of total employment is rapidly declining. In addition, the use of technology is deepening, even in traditional manufacturing sectors. This calls for new measures to combat the social problems of unemployment.

In terms of job creation we are exploring both the short-term and medium- term opportunities in the delivery of infrastructure investment projects, and we are also targeting a range of appropriate industries in agroprocessing, tourism and mineral beneficiation. Our job creation projects, such as the craft planet and fashion project in Mabopane, Brits and surrounding areas, are targeted at women, youth and the disabled. This will enable us to bring people who have been marginalised into mainstream economic activity, at the same time building capacity and improving the skills of our people.

Our attention is also focused on SMME development. We have developed SMME linkage programmes in most parts of the region to instil an enterprising culture amongst the people. The incubation of small businesses, microtechnology development and business management training and facilitation are some of the areas of small business support and development. Some of the very recent highlights of these initiatives include the fact that 47 small businesses have so far been incubated, 406 people trained and 659 sustainable jobs created.

Other flagship projects that are community-based, with a total value of R13,5 million, have been highly successful, and it is our aim to continue to build on these achievements. We have built partnerships and continue to work very closely with the other stakeholders who provide SMME support services. We are very pleased with the tremendous success that our Westmac, a manufacturing advisory council affiliate in the province, has achieved. Our concerted efforts to provide high-quality services to enable small enterprises to become competitive and join the mainstream economy are beginning to bear fruit.

I am pleased to announce that the tourism entrepreneur of the year award presented in London in November 2001 was given to the first and only black- owned safari operator in the North West. Mr Donald Marobi, a budding entrepreneur, sold everything he owned to start this business. Through our procurement initiatives, we have been able, in collaboration with other service provider institutions and big businesses, to ensure that small enterprises that are operating formally benefited from tenders to the value of R98 million.

In terms of the future development of the SMMEs we are looking into aligning SMME development programmes with local economic development initiatives at district and local municipality level. Small businesses are based in communities, and the first point of contact is with the municipalities. We are therefore very keen to capacitate local authorities in dealing with SMME matters.

It is very clear to us that we need to improve the level of domestic and foreign direct investment. Although investment levels have been steady, the launch of Invest North West little over a year ago will add momentum to investment promotion activities in the province. I am pleased to announce that during the two-day international investment conference held late last year, Invest North West found investment opportunities to the tune of R1 billion. The investments will flow into mining, agriculture, manufacturing and tourism industries over the next three years and are expected to create some 4 000 sustainable jobs in the region.

We are focusing on small, medium and micro mining operations to benefit the previously disadvantaged communities as well as to create more job opportunities for every rand invested. We have identified four main infrastructure projects that are aimed at encouraging the international competitiveness of our manufacturing sector and generate sustainable economic growth, development and employment creation in the long term. These include the Platinum SDI, the N12 and Western Frontier corridors and the Maputo-N4 corridor development linkage.

In terms of the Platinum SDI, we are conducting research and prefeasibility studies for scoped projects. The Mafikeng-Vryburg corridor will focus on agriculture and tourism as lead sectors, whilst the N12 corridor will focus on mining as a lead sector with downstream activities such as jewellery design. An application has been submitted to the Department of Trade and Industry to have an area around the Mafikeng airport declared an industrial development zone. A section 21 company has already been established to drive this project. Let me turn to the challenges we face. The level of unemployment in our province is unacceptably high. There is a marked decrease in the level of manufacturing and industrial activities. The rate of development in rural areas is still very low. Physical and economic infrastructure is, in some cases, also deteriorating. The HIV/Aids disease is beginning to make an impact on the economy. On the operational side there is also much room for improvement. Our budget has to be policy-driven. We need to reposition ourselves as a leader in economic development and industrialisation and, at the same time, build capacity to deliver services.

On co-operative governance, we are determined to utilise any opportunity to advance our relations with all economic role-players and to be able to identify synergies and leverage resources to deliver more services in a momentous way.

In developing strategies we take cognisance of the overall economic framework and try to align these strategies with the economic priorities of the state. We therefore need to deepen our relationships with all government structures to ensure policy coherence.

I would like to conclude by saying that my department is committed to ensuring that we put the North West province on a high-growth path and that we achieve results that impact positively on ordinary people: that jobs are created, that social delivery is fast-tracked and that we tackle issues of HIV and Aids.

In some respects, this province has performed well. We have developed a detailed growth and development strategy. We continue to seek innovative and new ways of doing business, of ensuring that we are able to create an economy that meets the needs of our people.

We continue to forge lasting partnerships with stakeholders and partners to create an environment that is conducive to economic development to improving and the living standards of the majority of the people. [Time expired.] [Applause.]

Mr S T BELOT (Free State): Chairperson, hon Minister, colleagues, ladies and gentlemen, today we are part of co-operative governance in action. Today we are involved in the real economy, as explained in the hon the Minister’s Budget speech before the National Assembly a few weeks ago. The Free State province is making strides in its effort to develop its economy and economic activities. Indeed, there is a definite change in the structure of the Free State economy, essentially from a primarily dependent economy to a manufacturing, export-orientated economy.

The Free State these days is less dependent on agriculture and mining than a few years ago. Instead, the manufacturing and service sectors are beginning to play a greater role in the provincial economy. For example, the Free State gross geographic product amounted to approximately R33,4 billion in 2001, which represents a 5,8% contribution to the South African economy. I could say that projections for the Free State GGP indicate an increase for the rest of the MTEF period and we expect to do well. The progress in the above regard has to be built upon and further expanded, and all the strategies that we have put in place are aimed at achieving exactly that.

It is also worth mentioning that Free State exporters are doing exceedingly well in the international trading arena. The Free State’s major exports are chemicals, fruit and vegetables, machinery and equipment, manufactured goods and mineral products. It is my department’s intention, therefore, to give special attention to trade development as we would like to see more companies exporting.

Our strategy for economic growth and job creation entails a three-tier process which basically involves the beneficiation of our natural resources, which receives our undivided attention. In this whole process of adding value, we believe and we say that we need to empower and capacitate our people to become involved in manufacturing ventures. Furthermore, as we progress on the learning curve, we know that we have to compete in the global market. We know, whilst we participate in this economic activity, that we do this in a particular context of globalisation. This strategy is also underpinned by two important principles, namely industry clustering to avoid fragmented development and utilising the opportunities provided by forward and backward linkages of our existing and new economic ventures.

From this perspective, the challenge we face now is to ensure that the achievements that have been made so far, as well as future achievements, can be extended to eliminate poverty and improve equity in our province, given the status and the levels of poverty there. We therefore believe that the benefits of higher economic growth should be shared by more people, and we make sure that this happens. The vicious circle whereby the inequality between the poor and rich gets bigger has been broken. People are given the opportunity to participate in the mainstream economy and do take advantage of the benefits. How do we do this? Perhaps I need to share that with this House. Without being overly interventionist, the Free State government facilitates a process whereby SMMEs become able to, and do, take up economic opportunities. A key to this is that economic opportunities presented by forward and backward linkages are turned into viable and sustainable business ventures. This leads to lower business risks and can enhance the success rate of newly established SMME businesses.

However, all those who participate in business are made aware of the reality that they should be prepared to share in the risks involved. It is common knowledge that emerging businesses are shy to accept the reality that when one gets involved in business there is a level of risk that one must be prepared to take. However, aftercare is also very important and we do provide this, to ensure the sustainability and success of the SMMEs. For this to happen, one needs effective business support, both financial and nonfinancial.

As part of our new approach to economic development, the Free State government is implementing a regional focus strategy in terms of which we have established regional offices. These regional offices, with SMME and tourism development advisers, operate in a co-ordinated manner with all development agencies so as to accelerate SMME and tourism development. This implies that district municipalities and development agencies such as Khula and Ntsika all link up with the regional offices in order to provide a proper service to the people at grass-roots level.

A concerted effort is also being made to co-ordinate SMME support activities amongst the different departments within the province, to ensure that job creation efforts are maximised. The Free State government also initiated a consultative process throughout the province, so as to capture the expectations of SMMEs and deal with aspects such as affirmative procurement which involve our black economic empowerment programme.

As a follow-up to the latter, a database is being established, indicating the type of business activity, ownership, size, skills pools and capacity of SMMEs in the province as well as the support they require from Government. As part of the new approach to SMME development, agreements are entered into with SMME service providers to perform certain functions which fall outside the capabilities of the Free State government or the department. Funding is provided in accordance with the PFMA regulations.

We have also taken note of the service provided by MAC, the manufacturing advice centre. The Free State is not yet part of this programme, but urgent attention is being given to it. A Brain office has been established in Bloemfontein which provides business and referral services to SMMEs. There is, however, a need to spend more time in marketing the services of this organisation, so that more SMMEs can be made aware of it. We are working hard on this matter.

Access to finance is one of the most significant hampering factors in the SMME sector that we have observed. Hence the fact that we welcome the process that the Minister and the DTI have initiated of reviewing the mandate of Khula and the NEF, which will lead to an integrated financial support service that meets the needs of the SMMEs. Rural development is of crucial importance to us in the Free State as the larger part of the province is rural. It is important in our struggle against poverty and unemployment. For example, the Thabo Mofutsanyana region and the Xhariep district have the biggest concentration of the Free State’s rural population. In the Thabo Mofutsanyana district, which includes the former homeland of Qwaqwa, we are busy with efforts to develop the potential the region has in the agroindustry. Hon members will recall that this is the district that has one of the developmental nodes as announced by the President.

This potential growth is achieved through, amongst other things, exposing commercial and emerging farmers to opportunities for adding value to traditional agricultural products such as fruit juices, canned fruit and vegetables. New crops such as herbs and essential oils are also involved in our programme.

Various interesting projects are currently being explored in the Xhariep region, namely the possibility of the cultivation of spirulina as well as the production of natural rubber. I could add here that as members go to the exhibition stand, they will perhaps have an opportunity to taste the Free State wine. I know that it will surprise many members to hear that the Free State is also in the business of producing wine.

As I move towards concluding, I wish to say that we thank the Minister and his team for the manner in which they have led the provinces in getting our economic activities co-ordinated in a very healthy, competitive and supportive manner. We do believe that the active involvement of the provinces in all matters of economic development is vital, otherwise the strategy that has been put in place will be doomed. Continued communication and support between national and provincial government should be maintained at all times. It is for that reason that we welcome and support this initiative.

The important role that local government has played …

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M L Mushwana): Order! Hon member, I know you promised us wine, but your time has expired. [Laughter.] [Applause.]

Mr N M RAJU: Chairperson, hon Minister, hon MECs, hon colleagues, I deliver this speech on behalf of my colleague Mr Wikus Theron, who is away on parliamentary duties in Botswana.

The Department of Trade and Industry gets a Budget Vote of almost R2,5 billion to enhance the South African economy and make it internationally more competitive. The main aims of the Department of Trade and Industry include: firstly, to create conditions to encourage investment; secondly, to help South African exports; and thirdly to regulate the South African market place.

In order to achieve the above-mentioned objectives, the department is divided into six divisions with the following allocations: administration - 7% or R169,5 million; international trade development - 3% or R65,9 million, enterprise and industry development - 33% or R815,1 million; consumer and corporate regulation - 5% or R134,1 million; the Enterprise Organisation - 34% or R840,1 million; and Trade and Investment South Africa

• 18% or R443 million.

It can be seen from the above that a lot of money is spent on the different divisions of the department, but the question that must be answered is whether this spending has the desired outcomes to promote the South African economy sufficiently. To be able to answer this, we will have to analyse the operation’s divisions very closely.

In the trade category, two divisions could be analysed to judge their influences or outputs. Firstly, the international trade development division is aimed at creating conditions conducive to South African exports by negotiating international trade agreements. An amount of R65,9 million will be spent on this division with its five subdivisions, namely bilateral agreements, regional trade block agreements, multilateral agreements, international trade development, trade policy and analysis.

It is worth mentioning that the old Board on Tariffs and Trade will be replaced by the new Commission for International Trade Administration. This will be our independent regulatory agency, and obviously a lot of work is needed here to free up international trade by breaking down the tariff barriers.

Secondly, the R443,6 million trade and investment programme has two main elements, namely investment promotion and export promotion. In these two areas, the DTI is doing critically important work in the South African economy, which should be expanded. Investment South Africa boasts that they delivered R4,6 billion in foreign direct investment, or FDI, which is commendable. But, as we all know, South Africa needs much more FDI, and great strides must be made in this critical area of our economy.

Under the broad category of industry, two of the DTI’s projects could be included, namely enterprise and industry development, and enterprise organisation. Enterprise and industry development is getting a budget of R815 million. The programme of this division includes competitiveness, enterprise development and black economic empowerment. As we all know, black economic empowerment is a top priority for the DTI. Great strides have been made here, but we ask: Why is it so quiet regarding the taxi recapitalisation project at the moment? We can only hope that great improvements will follow soon in this critical area for millions of commuters in our country.

On enterprise and industry development we can only say that a lot of work is waiting, and we need this development urgently to create jobs to remedy the very high unemployment rate in the country. Enterprise organisation receives the biggest allocation of all the DTI programmes. The amount of R840 million provides incentives and support to sustainable enterprises.

We are very grateful that the DTI is in the process of reviewing these incentives and has already replaced some of the old schemes. In the past, most of the emphasis was on manufacturing enterprises, but recently other industries such as aquaculture, tourism, agroprocessing, high-value agricultural products and biotechnology are also targeted.

The SMME sector is also getting much more attention and investment, as well as black economic empowerment and enhancing the role of women entrepreneurs. We applaud these developments and hope that bigger investment will follow in these critical areas of the South African economy.

The consumer and corporate regulation division only gets 5% or R134,1 million from the budget. However, it has a very important task to fulfil, such as the regulation of the liquor, gambling and lottery industries, as well as commercial, competition and consumer protection policies in the interests of both producers and consumers. [Time expired.] [Applause.]

Ms N P NKONYENI (KwaZulu-Natal): Chairperson, hon Minister of Trade and Industry, hon MECs, hon members of this House and delegates from other provinces, it gives me great pleasure to be afforded this opportunity to remind the South African nation of one of the clauses of the ANC’s Freedom Charter, which provides that, and I quote: ``The people shall share in the country’s wealth’’. The hon the Minister’s mandate is to ensure that the people of South Africa are sharing equally the wealth accumulated through the hard labour performed by the inhabitants of this state in order to enhance the means of production.

The aim of this department fascinates me. Its aim is to manage and facilitate access to sustainable economic activity and employment for all employable South Africans through higher levels of investment, etc. I can proudly mention that the department is somehow achieving its goals, as I read recently in the media that the number of foreign consumers who purchase South African goods is increasing. Of course, that is good for our country.

This department will never be able to pursue and achieve its goals all by itself. That is why the noble decision was taken by our capable and rational Cabinet Ministers, led by our hon President Thabo Mbeki, to cluster departments so as to promote the integration of government departments, thereby also promoting and enhancing good governance.

It is exciting to learn that our hon President is determined to ensure that Government will increasingly focus on microeconomic reform in order to address burning economic and social issues. It is also exciting to note that a range of input sectors have been identified, particularly energy, telecommunications and transport, where costs need to be brought into line with global prices in order to enhance the competitiveness of enterprises.

I would like to concur with the Minister that there are priority sectors which have a high potential for growth and employment, such as agriculture, tourism, information and communication technology, and cultural industries. Export sectors such as clothing and textiles, automotive components, agroprocessing, metals and beneficiated minerals are also important.

I have scrutinised and analysed this budget and I am wondering how much effort was expended by the department to ensure that it is not gender- blind. No budget is gender-neutral. It is either gender-sensitive or gender- blind. The hon the Minister’s department has six programmes, as is clearly stipulated. They are administration, international trade development, enterprise and industry development, consumer and corporate regulation, enterprise organisation, which promotes domestic and foreign fixed investment, and Trade and Investment South Africa. Can the hon the Minister convince South African women that all these programmes will benefit them, improve their economic status and enhance gender equality? But anyway, I have learnt from the Minister’s budget speech that he is doing something to enhance and promote gender equality in his department.

Women will never be apologetic when raising these issues. I always quote the slogan of the DPSA, which says, ``Nothing about us without us’’. I am here representing South African women, so I will always articulate gender- related issues on their behalf. I congratulate the Minister for initiating programmes which aim at managing technology for women in business.

Ake ngicele kulo mNyango kaNgqongqoshe ohloniphekile, uMnu Alec Erwin, ukuthi ake ukuqaphele okwenzayo kulolu hlelo olungaphansi kwe-consumer and corporate regulations oluqondene nokuqaphela ukuqondiswa komhlahlandlela wezokugembula, ukudayiswa kotshwala kanye neLotto. Kumanje nje, ngoMgqibelo wokuqala enyangeni kaJulayi, sizobona izinsizwa nezintokazi zivunele ziconsa ngenhloso yokuyozibonela amahhashi etshakadula eGreyville, eThekwini. Abantu abampisholo njengami, abakavulelwa amathuba okubamba iqhaza kule mboni. Ngithi umhlonishwa uNgqongqoshe ake aziphe ithuba, acubungule lolu daba.

Ngijabule kakhulu ukuzwa ukuthi uthe umhlonishwa uNgqongqoshe bayalucubungula udaba lweNtsika neKhula ngoba lusikhalisa kakhulu. Akubonakali kahle hle ukuthi kwenziwani. Okunye okujabulisayo ukuthi kucutshungulwa indlela yokubambisana phakathi kukaHulumeni omkhulu, ohulumeni bezifundazwe kanye nomasipala ukuze kunqandwe ukuhluthahluthana, lapho omunye ekhomba khona omunye esweni omunye ebe evikela iso lakhe.

Ngiyamhalalisela uNgqongqoshe kwisabiwomali somNyango wakhe aphathiswe wona. Akusheshi-ke nokho ukubonakala komkhiqizo kodwa igalelo lakhe seliyabonakala, ikakhulukazi ngokuba khona kwezinhlelo ezifana no-Brain. (Translation of Zulu paragraphs follows.)

[I would like to ask the Ministry of the hon Alec Erwin to be careful of what it is doing in this programme that falls under consumer and corporate regulations, since it is responsible for regulating gambling, selling of alcohol and the Lotto. On Saturday in July we will see well-dressed ladies and gentlemen attending the horse race in Greyville, Durban. Black people like myself have not been given opportunities to take part in this industry. Therefore, I would like to ask the hon Minister that he should give himself a chance to look at this issue.

I am happy to hear that the hon Minister said they were solving the issue of Ntsika and Khula because it worries us greatly. We do not see what is being done. What pleases me also is that they are looking at the way in which the national Government can co-operate with provincial and municipal governments to solve conflict in cases where they blame one another.

I would like to congratulate the Minister on the budget given to his department. The product is not readily visible, but his efforts can be seen, especially with regard to the establishment of programmes like Brain.]

I come from a province which is the second highest contributor to South Africa’s GDP. So, I would urge the Minister to see to it that there is adequate ploughing back to the people of that province. Let sustainable jobs be created. I am from a province that is capable of hosting international conventions. I come from a province with tourist attractions, greenery and oceans, and where the Lobombo SDI has been initiated. Ngiqhamuka kwelikamoba nobhanana. [I come from the land of bananas and sugarcane.] I am from the kingdom of the Zulus, where cultural events such as reed dances, umkhosi wokweshwama [first crops ceremony] and other cultural activities attract national and international communities.

KwaZulu-Natal, with its capable MEC, hon Michael Mabuyakhulu, ensures that previously disadvantaged communities benefit from SMME programmes. He ensures that Batho Pele principles are adhered to by all departmental officials.

Having said all that, allow me to congratulate the Minister for the well- articulated budget speech and let me support the budget. [Applause.] [Interjections.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M L Mushwana): Order! Can you stop your Mbongeni Ngema? Mr J I MABENA (Mpumalanga): Chairperson, hon Minister, colleagues, MECs and hon members of this House, there is no doubt that our national economy has shown signs of great improvement and is very resilient. This has been brought about by the difficult policy choices that we made in an attempt to place our economy on a sustainable growth path.

I must say that I agree fully with Minister Erwin that the economy we have today is fundamentally and irreversibly different from that which we inherited in 1994. The same can be said of the provincial economy of our own province and the number of flaws and weaknesses we inherited, key amongst which was the income leakage that was caused by the fact that we were not adding value to our raw materials in the province.

Globalisation is one of the major challenges we face and will continue to face to an increasing degree during this decade. We are now confronted with what is normally termed a new economy, which is adding more pressure on our society as proficiency in information and communications technology becomes a prerequisite in building a dynamic and adaptive economy. It is heartening to know, as the Deputy President explained earlier on this afternoon, that our human resource development strategy is geared towards the creation of this proficiency, especially among the young people of this country.

We are encouraged that the department, in line with the theme of this year’s Budget of reducing poverty, inequality and vulnerability, decided to direct a big chunk of their resources to the most vulnerable sector of our society. As the provincial government we are still convinced that it is through the promotion and development of the SMME sector that our people, the previously disadvantaged, will be able to participate in the economic mainstream.

We must find solutions to some of the most challenging obstacles still faced by the SMME sector, including access to finance, which remains the mother of all problems facing this important sector of the economy. We must find ways of supporting especially the high-capital risk phase in SMME development, the preproduction phase, especially when it comes to the development of the manufacturing sector. We have, as Mpumalanga, set in place a number of institutions, key amongst which is the Mpumalanga Economic Empowerment Corporation.

Jointly with the Italian governmment, through Unops, we are setting up what we call the Nkomasi Economic Development Agency in one of our poor regions, which will be an economic development agency that will also offer a credit facility. At the end of last year, as the provincial government, we took a decision to spend R114 million from own revenue to capitalise some of these institutions. The Mpumalanga Training Trust has also embarked on a major training programme linked to our Operation Sivuselela Ezorhwebo, which is aimed at training emerging entrepreneurs but also offers funding through the Mpumalanga Economic Empowerment Corporation.

I believe that the further strengthening of local business service centres and strong monitoring of accounting systems is also an area that needs special attention. We hope that the intended positive steps to be taken by the DTI relating to institutions such as Khula and Ntsika will be able to consolidate the achievements attained so far and also expand economic opportunities for SMMEs. We have six accredited local business service centres, but, of course they need to be strengthened, as I said, in terms of monitoring and accounting systems.

One also wishes to welcome the effective and efficient systems that the department has put in place to ensure that it operates faster, smarter and quicker in delivering services, particularly with regard to the registration of companies or close corporations at the Companies and Intellectual Property Office. We really appreciate the positive turnaround and the positive developments in this important area of work.

One wishes to commend the department for putting more emphasis on the development of the survivalist sector, a sector that consumes a large proportion of the budget, especially in the rural provinces such as ours. One hopes that the DTI’s plans to hive the funding of this sector’s enterprises off to a new fund will not only help Khula to refocus its activities but also assist Government and other stakeholders to pay more attention to the development of this sector if enterprises from the disadvantaged communities are to make a meaningful contribution towards economic growth and job creation.

In the provinces more assistance and information sharing between the DTI and other stakeholders will be required as the different economic strategies are rolled out. We have to come to grips with strategies such as the Micro-economic Reform Strategy and Integrated Manufacturing Strategy. I want to emphasise the question of improved co-ordination between the three spheres of government, especially as far as investment promotion is concerned. It is important for us to co-ordinate because we seem to be sending the wrong signals outside in terms of our own economic plan. The Department of Provincial and Local Government organises trips, mainly to China, with all the mayors participating. When they come back we find that they have promised an auto plant, when actually, in terms of the strategy of the country, maybe the auto industry should rather be developed in the Eastern Cape or Gauteng.

That interaction is very important, all the more so because there are professional conference attendees in some of these countries. I always say that if we all put our collections of business cards on the table, we would find that we have spoken to the same person, especially in some of the countries in the Far East. I am just emphasising the question of investment co-ordination because it creates a lot of expectations. Mayors come back and announce very big projects with thousands of jobs. They raise false expectations. I am emphasising the point of intergovernment co-ordination. I could not agree more with the Minister on the need to focus our efforts on how to further exploit our endowments and comparative advantage in sectors like agriculture and mining.

In agriculture investigations have revealed that there are many products that can be produced from sugar cane beyond sucrose and molasses in terms of vitamins and assets that are important in other industries. Some of our provinces have dimension stones like Belfast black granite or the granite that is currently shipped out of the country for beneficiation elsewhere. Where value addition does not take place locally, the products, which are household furniture made of granite, are very expensive and beyond the reach not only of ordinary people, but even of many members of this House, and yet we have the best quality granites.

So our province’s industrial development strategy to deal with these weaknesses of income linkage, caused by the fact that we do not add value in our province, puts a lot of emphasis on manufacturing. We have established industrial clusters. We have an industrial cluster approach. We have the world’s fifth-largest stainless steel producer, Columbus, located in our province, but as a province we have said that it is not enough for us to go abroad and boast that we have the world’s fifth largest stainless steel plant. Through this stainless steel and this cluster approach we managed to set up a stainless steel incubator. We know what we can produce in terms of hollowware and some of the products that we can produce from stainless steel.

When we go out we set up projects that promote beneficiation. In terms of agro industry we have an agro food and an agro nonfood cluster. We produce a lot of subtropical fruits. We produce sugar, maize, sunflowers and soya beans, and of late we have produced the Pink Lady apples that are very popular in Europe and reach the European market two weeks earlier than those from the Western Cape. I am not saying this to spite my colleagues from the Western Cape. We will co-operate, as the Minister said.

We are in the process of setting up a packhouse because there is an abnormal situation. We have a packhouse, we grow the fruit in the orchards but we pack it in Bethlehem in the Free State and export through Cape Town, which is a three-and-a-half day turnaround. But if we had the packhouse in Ermelo, about 20 km from the orchards, and exported through Maputo, if the harbour development continues, there would be a quick turnaround.

We have an agro nonfood cluster which focuses on wool. We produce 6 million kilograms of wool, 4 million of which is quality wool, but it is washed in Durban and its value addition is done in the Eastern Cape. Then it comes back to Mpumalanga, to the wool textile facilities in Standerton. But in co- operation with the Eastern Cape government, we have set up a small wool cluster in that area. In the Ermelo area, because of the reliance on minerals and energy, when power stations closed down a lot of mines collapsed. The biggest employer today is the Government. We are also looking at the petrochemical cluster, because we have Sasol 2 and 3. There are enormous opportunities for value addition to many of the feedstocks from the coal-to-oil process in terms of polymers and the polypropylene for domestic plastic products and toys. We are investigating these opportunities. Through the Department For International Development we have managed to secure funds. There is a thorough investigation looking at both the stainless steel cluster and the petrochemical clusters and what it is that we can produce from the 120 or so petrochemical feedstocks from Sasol.

We have a tourism growth plan that has divided our province into seven regions for industrial, adventure, agro, cultural, heritage and sports tourism. We do have tourism cluster.

When coming to the challenges, we sit with these areas that suffered as a result of policy decisions that we took, especially when we restructured the energy sector. They became ghost towns. We are grappling with this and looking at what is possible. But one is confident, and we believe that it is only countries or economies that add value to their raw materials that can benefit. One major challenge is the development of medium-size companies, and we are, as the provincial government, determined to fund this process.

I think the DTI entrepreneurial training initiative must be welcomed as the development of an entrepreneurial culture together with the funding of the high-capital-risk phase is important, not only in SMME development, but even more so in building joint venture capacity among local businesses. We have discovered as we promote investment that there is a lot of capacity for joint ventures at local level.

When we investigated we discovered that unless we support the high-capital- risk phase, followed by the entrepreneurial culture development, we will not be in a position to encourage those businesspeople. This entrepreneurial training is important and will have a positive impact as the train moves across the country. It is an initiative that must be welcomed.

I would like to support what the Minister said, that partnerships and collective action are the only mechanisms capable of taking us forward in the long term. Our new economic path requires new ways of organising. It requires knowledge networks, the sharing of best practice and the diffusion of new technologies amongst enterprises.

In conclusion, I believe that if we really build these partnerships and take collective action, we will be in a position to answer the central question President Mbeki referred to in the state of the nation address around the impact our programmes have in lifting the intolerable burden of poverty and underdevelopment from the shoulders of the masses of our people. [Applause.]]

Mr K D S DURR: Mr Chairman, may I thank the Minister and his department for the new format and for the new presentation. I think it will also encourage economic activity at provincial level and give new meaning to the whole question of concurrent jurisdiction. We thank the Minister for the fact that it is more understandable.

I can also see, bearing in mind that the lead times are long in the Minister’s business, that many of the programmes which the DTI started a few years ago have managed to come through. Congratulations on that. Unhappily, time will not allow me to touch on too many things, but I will touch on one thing that my party feels quite strongly about, although it is perhaps not the a popular thing to talk about, and that is gambling.

My party is totally against gambling. We voted against all the legislation when came through, and we are still against it. We asked the question: How does one transform a society that demands that decadence be tolerated even if it is flaunted in the way that we flaunt it? We have so much to be grateful for in our society, but the key question remains: Are we as a nation turning the tide against the current moral disintegration and the sense of hopelessness that goes with it, which is contributed to, in our view, by gambling?

I do not want to dwell upon the merits of it now, but simply ask the Minister the question: Does he think that the public are getting value for money? I am asking this question against the background of the investigation that the Minister is currently conducting into the gambling industry. I think the Minister mentioned that he was looking at the legislation. I would like to ask the people in this House, just as an experiment, how many millions they think it takes to regulate the gambling industry in South Africa - R10 million, R20 million, R30 million or R40 million. [Interjections.]

We have 10 gambling boards in South Africa run by 10 chairmen with 10 CEOs and staffed by 274 officials spending R121 470 000 per annum to regulate an industry which is failing to deliver taxes in any significant way. An industry which has brought huge social costs and human misery and very little public benefit, an industry which has diverted income from more productive avenues of expenditure such as food, education, housing, clothing and looking after families, wives and children, to self-indulgence and deviant behaviour. We have an industry which has, in my view, a bloated and overinflated bureaucracy regulating gambling.

I choose these words carefully because I am not trying to be funny about this. I honestly do not know if, with regard to the motor industry, which is a brilliant industry because it is doing so well, one spends R121 million regulating it. I do not think one does. I will look at the figures

• but I do not think one does - or anywhere near that amount. I know that we must be careful of decentralisation that goes beserk in our country. To have these nine or ten bodies regulating this industry …!

For one thing, one has a Minister, a chairman and a CEO earning about R1 million and one has two staff. How does one explain the chairman of the Western Cape Gambling Board getting paid a R681 909 payment per annum? He has a CEO who is earning over R400 000 - so the two of them earn over R1 million. They have 27 people, I think, on their staff, and they are regulating two or three casinos, which are run by big public companies that are perfectly capable of regulating them themselves.

How does one explain that the chairman in the Western Cape earns R681 000 - I am serious when I say this - while the chairman in Gauteng earns R12 000? He is doing the same job; a much bigger job probably. [Interjections.] [Time expired.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M L Mushwana): Order! Let us call on the hon member Rasool. Maybe he has been convinced about gambling. [Interjections.]

Mr E RASOOL (Western Cape): Chairperson, I am one of the newest members to this particular kind of debate, so I come here with a lot more trepidation. I was trying to use the latest device that was invented in our province, and that is to delegate my ceremonial and public duties to someone else while I sit in my office. [Laughter.] But I am told that I need to have earned some Deutschmarks in order to qualify for that privilege. [Laughter.] Now I have not done that. So I have to deliver a very imperfect contribution to this debate.

However, I would like Mr Durr to bring that speech to the provincial legislature, because I think it certainly merits quite a bit of discussion in order for us to look at some of the figures and the needs that he raises. I want to treat that fairly seriously and ask that he bring this to the provincial legislature.

I would like to congratulate the Minister on the kind of format that he has brought to this discussion and also for the work generally that the DTI has been doing - the intensive focus on microeconomic reform. I think that on the back of successful macroeconomic policies, we can push that forward and deal with the need to grow the economy, to grow job creation, to decrease economic inequalities and to improve our competitiveness.

I also think that the integrated manufacturing strategy the Minister brought to this debate is clearly needed. I think the country and certainly our province are ready for this strategy. I would also like to welcome the very practical co-operation that he brings to the discussions around how we take forward the economy among the different provinces and different spheres of government.

I would like to add immediately that under the ANC and the New NP government in the Western Cape, we cease to be simply competitive with the other provinces and begin to understand the need to co-operate with other provinces and other spheres of government. If there is any immediate visible change in what we bring as a new Government to this debate, it is a spirit of co-operation and a matching of the different advantages that we have to those others may have in other provinces, and the hope that the national Government can be brought into this.

I would want to say that the Western Cape is characterised by a range of economic activities with no single industrial sector dominating the region and the economy. I am glad that the Minister has made the point that agriculture, manufacturing, trade, tourism and financial services are but some of these activities.

The diversity of the Western Cape industrial structure, I think, has much to do with its distance from Gauteng. So one does not have sectors such as the ICT sector - the information and communication technology sector - naturally gravitating towards Gauteng’s strong economy, but being able to settle here.

I also want to say that the Western Cape department of economic development has identified sectors that we specifically want to target and improve upon in terms of the competitiveness of those sectors. These sectors include agribusiness, clothing and textiles, furniture, biotechnology, ICT and metal fabrication. We think that those are the sectors which we could be developing even further, and developing - if we were to do that - what one calls the potential of the Western Cape.

We also understand that we have to do this within a strategic framework in which the human resource capacity of the province must be developed. If we are going to develop that potential we cannot have a situation in which, for example, the majority of our students do not even meet a maths and science teacher as they go through primary and secondary school. Therefore there must be a human resource plan on the table for that.

I think we must understand that we have to gear up our economy towards trade and, particularly, export, and get ourselves export ready, otherwise we will not be seizing the various opportunities which are opening up.

We understand that this must be within a strategic framework in which the SMME sector is actively developed and not left behind. We also understand, and want to put on the agenda here, that black economic empowerment has to become central to whatever we do, because while the Western Cape has great potential and great economic growth potential, it also has the greatest discrepancy between the highest income earners and the lowest income earners. So unless we make black economic empowerment central to our agenda, we are not going to bring our province into harmony with itself.

The main objectives of our framework are to rapidly evolve a knowledge- based economy in the Western Cape for industries to become innovative, productive and able to compete internationally, and also to deliver a quality of life for all in our province and in our country.

This emphasis on a knowledge-based economy that we want to develop with a human resource plan, will hopefully result in the nurturing of the high- value manufacturing capacity that the Minister spoke about in his speech. For example, we see the clothing and textile industry, which employs about 170 000 people and any number of people up to 50 000 in the informal clothing sector through the CMT - the cut, make and trim groups - as the single biggest and most significant industrial source of employment in the Western Cape.

We believe if we were to add design to this industry - with that aspect of the knowledge economy - we would be to capture niche markets and offer unique products in a more competitive environment. So those are the kinds of things that we are challenged by.

We look, for example, to the port of Cape Town, which plays a considerable role in the regional economy. Now even though the port has many inefficiencies, it is one of the largest deep-water harbours in Africa able to handle the largest container vessels afloat and, as a wide-mouth port, it can handle extraordinary vessels, such as the steady flow of oil rigs which use our port for maintenance and repair.

The port of Cape Town also has a sophisticated ship repair centre which brings in approximately R500 million to the Cape economy. Now, how do we position this port to become the major service port for the burgeoning oil industry along Africa’s west coast and dovetail that with the R6 billion Kudu megaprojects which pipe gas from the west coast through to the rest of the Western Cape. Those are the kinds of challenges that we are faced with.

Similarly, the Cape Town International Convention Centre, which is a R600 million investment, helps us in part to overcome the seasonality of the Western Cape’s tourism industry by growing the exhibition and conference potential of the Western Cape and bringing in people all year round. Those are some of the issues that we are speaking about.

I also want to say that we are desperately keen to overcome spacial inequity, particularly in Cape Town and in the Western Cape as a whole. We see a concentration of development along the northwest corridor, which has traditionally been the better off corridor of the Western Cape along the N1. This is where one finds the largest concentration of privileged people living.

We need to shift the axis of that infrastructural investment to also take cognisance of the needs of those on the southeast sector. So, for example, we are looking at expansions around the airport which take us into that southeast corridor. The development of the first phase of the 650 hectares of land surrounding the aviation infrastructure has already begun in this regard.

We are looking at the Khayelitsha business centre, which is at an advanced stage, to combine commercial, administrative, recreational, light industrial and transport-focused investments on the vast vacant area east of the Khayelitsha station. The search for private-public partnerships to co-fund that is under way.

We could combine that, for example, with plans to develop the Mitchells Plain industrial park. There we have a R500 million industrial park located to the north of the major retail centre. This provides opportunities for the development of both retail and light industrial activities.

This industrial park is ideally situated to service Philippi, Khayelitsha and Mitchells Plain. If we were to combine these and fast-track their development for the next two years, a major economic contribution would be made to the urban renewal node that was announced by the President. This is not just a simple concentration of houses and social infrastructure, but also, together with the Khayelitsha business district, a major economic investment.

In similar vein, I want to speak about the Philippi business developments and the Wetton-Landsdowne corridor to the southeast of Cape Town. There are plans for a R1 billion commercial and office investment package, which includes a wholesale and fresh produce market, a new railway station, a bus terminus at Stock Road, a 200-bed hospital, community facilities and the expansion of Philippi industria. The total package, spread over five to eight years, could add up to more than R3 billion. Those would become significant things we do.

Similarly, a new plant for the manufacturer of refrigerator stainless steel containers is to be built in the Cape winelands town, Paarl, which again starts to shift where we allocate that kind of infrastructure, and this will cater for both local and foreign markets. The total cost of the project will be in the region of R200 million, and 40% of this has already been secured.

So, unlike our colleagues in Gauteng who are able to put a lot of money on top with their Blue IQ, I think we are far more challenged to find how we spend money in our existing infrastructure budgets in the Western Cape in order to make progress in this, and we are desperately challenged to find the kind of public-private partnerships that are able to drive these things forward.

So we are having to fast-track a lot of the changes in priorities that we have had to make in the past six months and that we will continue to make. But, I think, we are challenged by the kind of frameworks set by the DTI nationally. Increasingly, from the Western Cape, we will come to the party, but we just need to match two things, and they are how we continue to exploit the great potential that we have in the Western Cape while, at the same time, spreading the base of ownership of the provincial economy. If we can get those kinds of things right, then we will start to play catch-up much faster than was the case before. I thank the House for the opportunity to put these ideas to the Minister. [Applause.]

Dr E A CONROY: Mnr die Voorsitter, Minister Erwin, lede van uitvoerende rade en kollegas, die Departement van Handel en Nywerheid het onlangs ‘n belangrike besprekingsdokument vrygestel oor versnelde groei en ontwikkeling en die bydrae van ‘n geïntegreerde vervaardigingstrategie. Hierdie dokument kan na my mening met reg as een van die waardevoller bydraes tot die denke en toepassing van ‘n strategie oor nywerheidsontwikkeling van die afgelope dekade beskou word.

Ek wil graag kortliks na ‘n paar punte daarin verwys. Die kern van ‘n vervaardigingstrategie is om die bestaande nywerheidstruktuur as basis te neem en die implikasies daarvan vir moontlike toekomstige ontwikkeling van die ekonomie te ontleed. Dit moet die keuses aandui en die prioriteite van die hoofareas vir optrede deur die Regering bepaal.

Die Suid-Afrikaanse nywerheidswese beskik weliswaar oor gesofistikeerde produksietegnieke en hoogs ontwikkelde swaarnywerhede, maar het in die laaste dekade nie daarin geslaag om noemenswaardige nuwe werkgeleenthede te skep nie, wat daarop neerkom dat vele bedrywe in oorlewingsaktiwiteite betrokke is.

Die uitdagings en dringendheid ten opsigte van die ontwikkeling van ‘n vervaardigingstrategie moet dus nie onderskat word nie. Die algemene konsensus is dat die departement se beleidsdokument ‘n belangrike voorwaartse stap in dié rigting is. Dit blyk ook uit die identifisering van die hoofuitdagings en prioriteite, en die noodsaaklikheid om van makro- ekonomiese stabiliteit na mikro-ekonomiese aksie oor te skakel.

Die mikro-ekonomiese hervormingstrategie se visie vir die jaar 2014 is vir ‘n gestruktureerde en aanpasbare ekonomie wat gekarakteriseer word deur groei, indiensneming en ekwiteit, en wat gebaseer is op die volle potensiaal van alle persone, gemeenskappe en geografiese areas. As sulks is die geïntegreerde vervaardigingstrategie ‘n belangrike fondament waarop ‘n kollektiewe benadering ten opsigte van die indiensnemingsdoelwitte en ‘n breër en billiker groei gebou kan word. (Translation of Afrikaans paragraphs follows.)

[Dr E A CONROY: Mr Chairperson, Minister Erwin, members of executive councils and colleagues, the Department of Trade and Industry recently released an important discussion document on accelerated growth and development and the contribution of an integrated manufacturing strategy. In my opinion, this document can rightly be viewed as one of the more valuable contributions to the thinking on and application of a strategy on industrial development of the past decade.

I would like to refer briefly to a few points in it. The essence of a manufacturing strategy is to take the existing industrial structure as a basis and to analyse the implications thereof for possible future development of the economy. It must indicate the choices and determine the priorities of the primary areas for action by the Government.

South African industry certainly has sophisticated production techniques and highly developed heavy industries, but in the last decade it has not succeeded in creating significant new job opportunities, which means that many industries are involved in activities for survival.

The challenges and urgency with regard to the development of the manufacturing strategy must therefore not be underestimated. The general consensus is that the department’s policy document is an important step forward in this direction. This is also apparent from the identification of the primary challenges and priorities, and the necessity to move from macroeconomic stability to microeconomic action.

The microeconomic reform strategy’s vision for the year 2014 is for a structured and adjusted economy which is characterised by growth, employment and equity, and which is based on the full potential of all people, communities and geographic areas. As such the integrated manufacturing strategy is an important foundation on which a collective approach with regard to the employment objectives and broader and more reasonable growth can be built.]

The requirements to realise this vision include a geographical spread of social and productive investment; an integrated manufacturing economy capable of high degrees of value added; an extensive ICT and logistics system capable of speed and flexibility; a high degree of knowledge and technology capacity; skilled, informed and adaptable citizens; and an efficient, strong and responsive state structure.

The key themes raised in the document were, inter alia, manufacturing strategy, industrial policy and industrial strategy; the role of the state from dialogue to collective action; exports and trade liberalisation; investment patterns and foreign direct investments; pricing of inputs and input parity pricing - in short, an impressive list of very important topics and aspects.

Hierdie dokument is ongetwyfeld ‘n groot stap in die rigting van die ontwikkeling van ‘n toepaslike nywerheidsbeleid waarmee die ekonomie gereoriënteer kan word, sodat die doelstellings van ‘n breëbasis groei en werkskepping bereik kan word. Ek wil graag die Departement van Handel en Nywerheid gelukwens daarmee.

Die Nuwe NP steun hierdie begrotingspos. [Applous.] (Translation of Afrikaans paragraphs follows.)

[This document is undoubtedly a big step in the direction of the development of an applicable industrial policy with which the economy can be reoriented, so that the objectives of broad-base growth and job creation can be achieved. I would like to congratulate the Department of Trade and Industry on it.

The New NP supports this Vote. [Applause.]]

The MINISTER OF TRADE AND INDUSTRY: Chairperson, I will not keep hon members long because we know that Cape Town benefits by getting food from all over South Africa and having some wonderful restaurants. I am sure there are many hon members here do not want to hear much of what I have to say. But let me comment very briefly on certain points some hon members made and thank others for the contributions that they have made.

Very briefly, just to indicate, the new DTI campus and building will be located in Pretoria and not, as Mr Moosa said, in Johannesburg, but it is an exciting project. It is, to the best of my knowledge, the largest full- service provision of public-private partnership that is being launched in South Africa and we will announce the preferred bidder very soon.

With regard to the beneficiation strategy that Mr Moosa raised, I would urge all provinces to look at this very closely and I will touch on some other points that people have made. We really need to get in and look carefully at what can be done. In the Northern Cape, as I mentioned, I think some exciting new developments will take place as a result of the unbungling and streamlining of the iron ore and other mineral deposits. From there, too, we can begin beneficiating far more of the products that are developed. As we have seen in the exhibit, in the Free State jewellery is now made by the design school in Virginia. I think this shows that if we can encourage in each of the provinces design and small-scale manufacturing, using the manufacturing advice centres, then instead of just exporting the raw product, one can export some very exciting modern products indeed. I think this is crucial.

I just want to make an additional point here about the Free State. One of the interesting things is that recently, in the last two years, we have done a lot of work to encourage pharmaceutical trials. We have done this because it also brings technology and will allow us to develop more advanced technology as a platform for our own production processes. Hon members will be pleased to know that the Free State is one of the key areas, both for its science base and for its access to facilities. I think this is another example of how the Free State will begin changing towards advanced manufacturing.

Hon members did not make mention of the highly successful exports that are now coming out of the Eastern Free State. What I think is good, and what I would encourage other provinces to think about, is a reward for exporters in the province. I think all provinces should give some serious thought to that. I think the national export awards are doing very well indeed, but let us at provincial level also encourage our exporters, and maybe even our technology people, to feel that they have made a great contribution.

I was asked about the taxi recapitalisation. This is proving to be a very difficult project indeed. I think it is clear that we need a vehicle that replaces the current; even the new Toyota vehicle ultimately needs certain changes to it. It is an improvement, but needs changes. Our difficulty is reaching proper agreement with the industry. The critical aspect of this industry is that the fleet must be properly maintained for the volumes of passengers carried, for the routes and for the speed at which our infrastructure allows people to travel. Fundamentally important to the whole success of this project is correct and affordable maintenance of the fleet. Otherwise it becomes unsafe and very difficult to recapitalise. So, we are trying to liaise further with the departments. It is a project we must proceed with, but I must be honest with the House, it is giving us a lot of difficulties.

The hon member Nkonyeni spoke of gender and I am glad she did. I think this is crucial. We have done a number of things in the DTI which I think are very good advances. Certainly, we are beginning to change quite significantly in the gender composition of our management and of our staff. We have introduced three projects, two that are moving and one that will come in soon, which are very specifically related to gender and that is the Technology for Women in Business programme. It is an exciting project and I think it has done very well. As I indicated, we will launch the South African Women Entrepreneurs Network next weekend. That network is really a challenge to women. We are asking women to network, to use whatever we can help them with in the DTI but to use each other to advance. I think it is an exciting idea and I am confident that it will be a success. But we will urge hon member Nkonyeni to become one of the members of that network because with her passion I think she will help a lot.

I listened carefully to some of the things hon member Nkonyeni mentioned around gambling and other issues and I would just like to inform her that MEC Mabuyakhulu and myself and members of my department met with his majesty King Zwelithini because we think he can play a role in many of the cultural and agricultural dimensions. It was a very constructive meeting indeed.

As always, MEC Mabena’s knowledge of his economy and region is very important and very insightful for all of us. Regarding access to finance, the main thing we will be doing is not to create some new miracle drug or miracle mechanism of giving it, but we have realised that we need to co- ordinate the DTI’s financial activities more effectively, and that is really what we are working towards, so we can leverage different aspects of our financial support. We think that that will also be a little more successful than we have been able to be up to now.

But I think we often lose sight of just how much has been achieved, both by the manufacturing development programme and the Kuhla guarantee scheme. I think we were expecting that there would be rapid changes in small and medium enterprises overnight. It will not happen. I really think our successes have been quite considerable, but there is more we need to do.

The micro financing initiative is the third project in relation to women. Micro financing is one of our three major initiatives in the department, which we hope to get launched later this year.

Hon member Durr raised gambling. I respect that his party is opposed to gambling. Our Government, as hon members know, has taken a clear strategic position that this industry will exist, but that it is going to be tightly regulated. We have been discussing with the provinces how we can improve on this, in harmonisation with them, and I think we are getting close to certain important amendments to the Act, not to its basic structure, but to its operational dimensions, to give us greater co-ordination and harmonisation between national and provincial governments. The question of whether in fact the regulatory structure is too expensive is one that, as MEC Rasool indicated, is worthy of analysis. I think that the provinces must look at it.

At the national level I am confident that we are getting value for money through the National Gambling Board. We have members of the board here. But I am very confident that we are getting value for money there. I think they do a great job. But each province must look at what it is that they are doing and must ensure that their regulatory structure is giving value for money. That is not a national responsibility; it is a provincial responsibility.

Finally, in relation to MEC Rasool’s points, I think that he has made some very interesting points. Let me just refer to a recent analysis my chief economist’s office has been doing on this. It is quite an interesting point in some ways. In 1993 the total employment in textile, clothing and leather goods in South Africa was 225 772 people. That is a significant industry. In 2001 the total employment in this industry was 206 920. That is a drop of just under 20 000. Now, I put it to hon members, that when one compares that to what is happening in other economies in Europe and elsewhere, this industry has not collapsed at all. That is what is crucial. In fact, despite the job losses, I am quite convinced that this is a growth industry.

When one takes into account that Lesotho, in 18 months, employed 15 000 people in new investments, then we can turn this industry around. It is really up to each of the provinces that have the capacity to begin to turn it around. I am sure members have recently seen the mohair advertising campaign on TV and in the press. Now, that comes from a cluster study we had done, similar to the one that MEC Mabena was talking about. It is really up to the provinces to get out there and move, and I once again draw to hon members’ attention an immensely exciting project that they saw there from the North West. That is wonderful quality stuff. That is South African indigenous soap. There are many other things. We are beginning to revive the flax industry in South Africa. We are starting with projects. It is up to us to get out and move.

This is really my appeal to hon members of this House, that they have to be ambassadors in their provinces and towns. There is absolutely no excuse with regard to information, be it from the Brain network, be it from the call centre we have given them. If we negotiate more space on the sixth floor, which we are trying to do, later this year we will put in a fully equipped knowledge centre where one can go and look at this.

But really, hon members have to get out. The economy of their towns and provinces is in their hands, not in the national hands. They can do it; they can help people. I think it would be inexcusable for any member of Parliament or of the provincial legislature, or even for that matter a local government councillor, not to have all this information at their fingertips. They have to have it. There is no reason why they cannot have it. It is there for them to get because every one of the hon members in this House can certainly get access to a computer. That they can do!

I would really appeal to hon members: we must get out there and do things. We will produce - I am not sure the director-general and his team know this

• this report annually, with the debate that we have in the NCOP, so that we can start measuring. For the National Assembly debate we produced the report on the real economy, and I think it was a very useful report. It contained information that had not been put together before. We will do the same for the provinces, working with them, to give a picture of how their provincial economies are changing.

I think members know from many years’ experience now that I am an optimist, but I am an optimist who works very, very hard to make sure my optimism comes to fruition. One thing I am very confident about, is that we are no longer just sailing on the optimism of the intellect driving this thing forward. This economy is starting to break through its structural problems. No longer is it possible for leaders, be they political or economic or union leaders, to say the economy cannot change. It has changed! Now, hon members’ responsibility is to get out there and lead the change. We no longer have excuses. This economy and the provinces in this country have immense potential. Hon members must lead that potential. [Applause.]

Debate concluded.

      CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE -

              RSA/SEYCHELLES DOUBLE TAXATION AGREEMENT

Order disposed of without debate.

Question put: That the Report be adopted.

IN FAVOUR OF: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Mpumalanga, Northern Cape, Northern Province, North West, Western Cape.

Report accordingly adopted in accordance with section 65 of the Constitution.

The Council adjourned at 19:04. ____

            ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

                         FRIDAY, 7 JUNE 2002

ANNOUNCEMENTS:

National Assembly and National Council of Provinces:

1. 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 Council of Provinces:

1. The Chairperson:

 (1)    Bill passed by National Council of Provinces on 6 June 2002:  To
     be submitted to President of the Republic for assent:


     (i)     Media Development and Diversity Agency Bill [B 2B  -  2002]
          (National Assembly - sec 75).


 (2)    Message from National Assembly to National Council of Provinces:


     Bill passed by National Assembly on 7  June  2002  and  transmitted
     for concurrence:


     (i)     Electronic Communications and Transactions  Bill  [B  8B  -
          2002] (National Assembly - sec 75).


     The Bill has been referred to the Select Committee  on  Labour  and
     Public Enterprises of the National Council of Provinces.

COMMITTEE REPORTS:

National Council of Provinces:

1. Report of the Select Committee on Local Government and Administration on the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities Bill [B 62B - 2001] (National Assembly - sec 75), dated 5 June 2002: The Select Committee on Local Government and Administration, having considered the subject of the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities Bill [B 62B - 2001] (National Assembly - sec 75), referred to it, reports that it has agreed to the Bill.

 The Committee further reports that the  following  amendments  formally
 proposed by New National Party were rejected:


 CLAUSE 5


 1.     On page 4, in line 10, after "matter" to insert:


     and required  response  from  such  authority  or  organ  of  state
     dealing with the substance of the matter


     CLAUSE 5


 1.     On page 5, after line 13, to add:
       (4)(a)      If within a reasonable time after the Commission has
                   published a finding that  a  language,  religious  or
                   cultural right of a community has been violated or  a
                   policy or practice has been  violated,  and  adequate
                   and appropriate action has not, in the opinion of the
                   Commission, been taken thereon, the Commission may -
                   (i)    submit  its  findings  to  the   Parliamentary
                           Committees responsible for matters concerning
                           this Act for consideration and the taking  of
                           appropriate steps to secure  compliance  with
                           the Commission's findings;
                   (ii)  refer the matter to -
                           (aa)     the Public Protector,  if  the  non-
                                   compliance  with  the   Commission's
                                   findings relates to any  impropriety
                                   on the part of  an  official  or  an
                                   organ of state;
                           (bb)      the  South  African  Human   Rights
                                   Commission -
                   *     if the  non-compliance  with  the  Commission's
                       findings involves the violation of a human  right
                       as  protected  in  terms  of  Chapter  2  of  the
                       Constitution; or
                   *     if there are reasonable grounds to believe that
                       the complainant has been threatened,  intimidated
                       or discriminated against due  to  involvement  in
                       lodging  a  complaint,   a   finding   or   other
                       involvement in an investigation under this Act.
                   (iii) in consultation with the complainant, apply  to
                           a Court for an appropriate remedy,  including
                           -
                    (aa)      an interim order;
                    (bb) a declaratory order;
                    (cc) an interlocutory order or interdict;
                    (dd) an order for the payment of any damages;
                    (ee) an order  for  the  implementation  of  special
                           measures to address the situation  complained
                           of;
                    (ff) an order to comply with any provision  of  this
                           Act, or a published  finding,  recommendation
                           or decision of the Commission;
                    (gg) an order that an appropriate amount must be set
                           aside  for  the  realisation   of   language,
                           religious   or   cultural   rights   of   the
                           complainant.


             (b)   Where the  Commission  is  of  the  opinion  that  an
                   official, an organ of state or an institution has -
                   (i)   willfully disregarded or acted in  contempt  of
                        the findings or decisions of the Commission; or
                   (ii)    frustrated   the   timeous   and    effective
                        implementation of the findings or decisions  of
                        the Commission; or
                   (iii)failed to give adequate  reasons  for  the  non-
                        compliance  or  timeous  compliance  with   the
                        Commission's findings or decisions,it may apply
                        to the Court for  an  order  of  costs  in  its
                        favour.
     CLAUSE 11


 1.     On page 6, after line 42, to insert:


     (d)     submit the relevant names of the selected  persons  to  the
          relevant Parliamentary Committees together  with  reasons  why
          they were selected, for response;


     CLAUSE 26


 1.     On page 9, after line 49, to add:


     (h)     a multi-party delegation from  the  relevant  Parliamentary
          Committees.
 The New National Party supported the  Bill,  with  strong  reservations
 about the lack of enforcement power of the Commission, and it regretted
 the fact that the Committee took a final decision on political  grounds
 and not on objective grounds, so as to strengthen the Bill and to  give
 effect to the  spirit  of  the  South  African  Constitution.  The  New
 National Party further regrets that a request to  accept  the  proposed
 amendments and thus cause the Bill to be referred back to the  National
 Assembly for reconsideration, was refused.


 The Democratic Party supported the Bill, with  reservations  on  Clause
 12(3).

                        MONDAY, 10 JUNE 2002

ANNOUNCEMENTS:

National Assembly and National Council of Provinces:

1. The Speaker and the Chairperson: (1) The Joint Tagging Mechanism (JTM) on 10 June 2002 in terms of Joint Rule 160(6), classified the following Bill as a section 76 Bill:

   (i) Loss or Retention of Membership of National and Provincial Legislatures Bill [B 25 - 2002] (National Assembly - sec 76).

National Council of Provinces:

1. The Chairperson:

 The following papers have been tabled  and  are  now  referred  to  the
 relevant committees as mentioned below:


 (1)    The following papers are referred to  the  Select  Committee  on
     Land and Environmental Affairs for consideration and report:


     (a)      The  Convention  for  the   Protection,   Management   and
          Development of Marine and  Coastal  Environment  of  the  East
          African Region and  Related  Protocols  (Nairobi  Convention),
          tabled in terms of section 231(2) of the Constitution, 1996.


     (b)     Explanatory Memorandum to the Convention.


     (c)     The Convention  for  Co-operation  in  the  Protection  and
          Development of the Marine and Coastal Environment of the  West
          and Central African  Region  and  Related  Protocols  (Abidjan
          Convention),  tabled  in  terms  of  section  231(2)  of   the
          Constitution, 1996.


     (d)     Explanatory Memorandum to the Convention.


 (2)    The following paper is  referred  to  the  Select  Committee  on
     Labour and Public Enterprises:


     Annual  Report  and  Financial  Statements  of   the   Unemployment
     Insurance Fund for 2000,  including  the  Report  of  the  Auditor-
     General on the Financial Statements for the year ended 31  December
     2000 [RP 207-2001].

1. The Chairperson:

 Message from National Assembly to National Council of Provinces:


 Bill passed by National Assembly on 10 June 2002  and  transmitted  for
 concurrence:


 (a)    Planning Profession Amendment Bill  [B  76B  -  2001)  (National
     Assembly - sec 75).


     The Bill has been referred to the  Select  Committee  on  Land  and
     Environmental Affairs of the National Council of Provinces.

TABLINGS:

National Assembly and National Council of Provinces:

Papers:

1. The Minister of Education:

 (a)    Revised  National  Curriculum  Statement  Grades  R-9  (Schools)
     Policy 2002 (Overview Document).


 (b)    Revised  National  Curriculum  Statement  Grades  R-9  (Schools)
     Policy 2002 (Learning Area Statements).


 (c)    Annual Report and Financial  Statements  of  the  South  African
     Council for Educators for 2001.

                        TUESDAY, 11 JUNE 2002

ANNOUNCEMENTS:

National Assembly and National Council of Provinces:

1. The Speaker and the Chairperson:

 (1)    The Subcommittee of the Joint Programme  Committee  on  11  June
     2002 took a decision, in accordance with Joint  Rule  216(2),  that
     the Constitution of the Republic of South Africa  Second  Amendment
     Bill  [B  17B  -  2002]  (National  Assembly  -  sec   74),   Local
     Government: Municipal Structures Amendment  Bill  [B  22B  -  2002]
     (National Assembly - sec 75) and Loss or  Retention  of  Membership
     of  National  and  Provincial  Legislatures  Bill  [B  25  -  2002]
     (National Assembly - sec 76) be fast-tracked by,  where  necessary,
     shortening any period within which  any  step  in  the  legislative
     process relating to the Bill must be completed, in  order  to  make
     it possible for the Bill to be passed by Tuesday 18 June 2002.


     In terms of Joint Rule 216(4) this decision must be tabled in  both
     Houses for ratification.

National Council of Provinces:

1. The Chairperson:

 (1)    Message from National Assembly to National Council of Provinces:


     Bills passed by National Assembly on 11 June 2002  and  transmitted
     for concurrence:


     (i)      Constitution  of  the  Republic  of  South  Africa  Second
             Amendment Bill [B 17B - 2002] (National Assembly - sec  74)
             (referred  to  the  Select  Committee   on   Security   and
             Constitutional Affairs).


     (ii)     Insolvency  Amendment  Bill  [B  14B  -  2002]   (National
             Assembly - sec 75) (referred to  the  Select  Committee  on
             Security and Constitutional Affairs).


     (iii)   Loss or Retention of Membership of National and  Provincial
             Legislatures Bill [B 25 - 2002] (National  Assembly  -  sec
             76) (referred to  the  Select  Committee  on  Security  and
             Constitutional Affairs).


     (iv)     Reinstatement  of  Enrolment  of  Certain  Deceased  Legal
             Practitioners Bill [B 6B - 2002] (National Assembly  –  sec
             75) (referred to  the  Select  Committee  on  Security  and
             Constitutional Affairs).


     (v)     Implementation of the Rome  Statute  of  the  International
             Criminal Court Bill [B 42B - 2001] (National Assembly - sec
             75) (referred to  the  Select  Committee  on  Security  and
             Constitutional Affairs).


     (vi)    Local Government: Municipal Structures  Amendment  Bill  [B
             22B - 2002] (National Assembly - sec 75) (referred  to  the
             Select Committee on Local Government and Administration).

1. The Chairperson:

 The following papers have been tabled  and  are  now  referred  to  the
 relevant committees as mentioned below:


 (1)    The following papers are referred to  the  Select  Committee  on
     Labour and Public Enterprises:


     (a)     Annual Report and Financial Statements of the  Compensation
          Commissioner for 1999-2000 [RP 208-2001].


     (b)     Annual Report and  Financial  Statements  of  the  National
          Skills Fund for 2000-2001, including the Report of the Auditor-
          General on the Financial Statements for 2000-2001.


     (c)     Annual Report and Financial Statements of the  Compensation
          Fund for 2000-2001,  including  the  Report  of  the  Auditor-
          General on the Financial  Statements  for  2000-2001  [RP  72-
          2002].


 (2)    The following papers are referred to  the  Select  Committee  on
     Finance:


     (a)     Annual  Report  and  Financial  Statements  of  the  Public
          Investment Commissioners for 2000-2001, including  the  Report
          of the Auditor-General on the Financial Statements  for  2000-
          2001 [RP 50-2002].


     (b)     General Notice No 662 published in  Government  Gazette  No
          23383 dated 30 April  2002,  Statement  of  the  National  and
          Provincial  Government's  Revenue,  Expenditure  and  National
          Borrowing as at 31 March 2002, in terms of section 32  of  the
          Public Finance Management Act, 1999 (Act 1 of 1999).


 (3)    The following paper is  referred  to  the  Select  Committee  on
     Education and Recreation:


     Annual  Report  and  Financial  Statements  of  the  National  Arts
     Council for 2000-2001, including the Report of the  Auditor-General
     on the Financial Statements for 2000-2001.


 (4)    The following paper is  referred  to  the  Select  Committee  on
     Public Services:


     (a)     Air  Services  Agreement  between  the  Government  of  the
          Republic of South Africa and the Government of the Republic of
          Mozambique,  tabled  in  terms  of  section  231(3)   of   the
          Constitution, 1996.


     (b)     Explanatory Memorandum to the Agreement. TABLINGS:

National Assembly and National Council of Provinces:

Papers:

1. The Minister for Justice and Constitutional Development:

 (a)    Proclamation No R 32 published in Government  Gazette  No  23364
     dated 26 April  2002,  Commencement  of  the  Constitution  of  the
     Republic of South Africa Second Amendment Act, 2001 (Act No  61  of
     2001).


 (b)    Proclamation No R 33 published in Government  Gazette  No  23373
     dated 1 May 2002, Commencement of sections 1(b) and 2 of the  Legal
     Aid Amendment Act, 1996 (Act No 20 of 1996).


 (c)    Proclamation No R 34 published in Government  Gazette  No  23381
     dated 3 May 2002, Commencement of  section  16(4)  of  the  Judges'
     Remuneration and Conditions of Employment Act, 2001 (Act No  47  of
     2001), made in terms of section 18(2) of the Act.


 (d)    Proclamation No R 35 published in Government  Gazette  No  23384
     dated 6 May 2002, Commencement of the Criminal Procedure  Amendment
     Act, 1996 (Act No 86 of 1996).

1. The Minister for Agriculture and Land Affairs:

 Annual Report and Financial Statements of the Land Bank  for  the  year
 ended 31 December 2001.

COMMITTEE REPORTS:

National Council of Provinces:

1. Report of the Select Committee on Social Services on the Probation Services Amendment Bill [B 18B - 2002] (National Assembly - sec 75), dated 7 June 2002: The Select Committee on Social Services, having considered the subject of the Probation Services Amendment Bill [B 18B - 2002] (National Assembly - sec 75), referred to it, reports the Bill with proposed amendments, as follows:

   CLAUSE 1

   1. On page 2, in line 13, to omit “2” and to substitute “4A”.

   2. On page 4, from line 12, to omit the definition of “house arrest”.

   3. On page 4, after line 19, to add:

      (e) by the substitution for the definition of “supervision” of the following definition: “–`supervision’ means supervision of [a] an accused, convicted or sentenced person by a probation officer [by virtue] in terms of the provisions of any law;”.

          CLAUSE 3
      

   4. On page 4, in line 48, to omit “mandatory”.

   CLAUSE 4

   Clause rejected.

   NEW CLAUSE

   1. That the following be a new Clause:

      Insertion of section 4A in Act 116 of 1991

      4.     The following  section  is  hereby  inserted  in  the
             principal Act after section 4:
      
      
      "Appointment and duties of assistant probation officers
      
      
        4A.  (1)   The  Minister  may  appoint  as  many  suitable
                  persons as he or  she  may  deem  necessary  as
                  assistant probation  officers  to  perform  the
                  duties imposed by or  under  this  Act  or  any
                  other law on an assistant probation officer.
              (2)  The duties of an  assistant  probation  officer
                  shall include-
                  (a)     the   monitoring   of   persons   under
                        supervision;
                  (b)   family finding;
                  (c)    the   gathering   of   information   for
                        assessment by the probation officer; and
                  (d)   assisting a probation officer with his or
                        her duties.".
      NEW CLAUSE
      

   2. That the following be a new Clause:

      Insertion of section 4B in Act 116 of 1991

      5.     The following  section  is  hereby  inserted  in  the
             principal Act after section 4A:
      
      
      "Assessment of arrested children
      
      
        4B.  Every child who  is  alleged  to  have  committed  an
             offence and who has been arrested shall  as  soon  as
             may be reasonably possible after his or her arrest be
             assessed by a probation officer."
        CLAUSE 7
      

   3. On page 6, in line 23, after “2002” to insert:

      , and comes into operation on a date determined by the President by proclamation in the Gazette

      LONG TITLE

   4. On page 1, in the fourth line, to omit “mandatory”.

2. Report of the Select Committee on Social Services on the Health Donations Fund Act Repeal Bill [B 20 - 2002] (National Assembly - sec 75), dated 11 June 2002:

   The Select Committee on Social Services, having considered the subject of the Health Donations Fund Act Repeal Bill [B 20 - 2002] (National Assembly - sec 75), referred to it, reports that it has agreed to the Bill.

3. Report of the Select Committee on Land and Environmental Affairs on the KwaZulu Cane Growers’ Association Act Repeal Bill [B 48B - 2001] (National Assembly - sec 75), dated 11 June 2002:

   The Select Committee on Land and Environmental Affairs, having considered the subject of the KwaZulu Cane Growers’ Association Act Repeal Bill [B 48B - 2001] (National Assembly - sec 75), referred to it, reports that it has agreed to the Bill.