National Council of Provinces - 28 May 2003
WEDNESDAY, 28 MAY 2003 __
PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
____
The Council met at 15:05.
The Deputy Chairperson took the Chair and requested members to observe a moment of silence for prayers or meditation.
NOTICES OF MOTION
Mr K D S DURR: Chair, I hereby give notice that I shall move at the next sitting of the House:
That the Council -
(1) notes that -
(a) inflation in Zimbabwe has soared to 269%, and is expected
to reach 500% by Christmas;
(b) the effect, inter alia, is that a single onion now costs
Zim$250 and a single tomato, or a cheap toilet roll, more than
Zim$100 making life impossible for starving pensioners in
particular, and the public generally;
(c) recent academic research shows that the failure in
Zimbabwe has had a negative impact of more than 1% on South
Africa's economy, costing some 70 000 jobs here; and
(d) Zimbabweans are now in the majority in certain areas in
the provinces of Limpopo and Mpumalanga in South Africa which
are within 100 km from the border with Zimbabwe; and
(2) calls upon the South African Government, before Zimbabwe
descends into complete chaos, to make it obvious, loud and clear,
that as a matter of urgency, President Mugabe must step aside and
allow properly supervised fresh elections, leading to the
reconstruction of Zimbabwe.
FIRST BLACK AFRICAN TO CONQUER MOUNT EVEREST
(Draft Resolution)
Mr N M RAJU: Chair, I move without notice:
That the Council -
(1) notes -
(a) with unadulterated joy that on the 50th anniversary of the
conquest of Mount Everest by Sherpa Tensing and Edmund
Hillary, a Mpumalangan Game Ranger, Sibusiso Vilane, became
the first Black African to repeat the feat and scale the
summit of the highest mountain peak in the world; and
(b) that Mr Vilane was part of an international team, comprising
eight members from the UK, the Netherlands, the United States,
Canada, Norway and Mexico;
(2) believes that all South Africans, indeed all Africa, rejoice with Vilane and his family on the victorious achievement of this singular honour; (3) further notes that Mr Sibusiso Vilane steps up the podium to receive the nation’s applause and becomes yet another African role model for the youth to admire and emulate;
(4) however, also notes, with sadness and disappointment, the news of the flight to Swaziland of Vilane’s wife and children because his house at Bungani Lodge, Mpumalanga, has been burnt down, allegedly by neighbours jealous of his newfound fame, causing damage worth R10 000; and
(5) condemns such a mindless act of meanness and madness by the alleged perpetrators.
The CHIEF WHIP OF THE COUNCIL: I would recommend that we move the following amendment:
That the following paragraph be added after paragraph (3):
(4) wishes to support the words of our President, namely that all Africans stand 8 832 metres tall;
Amendment agreed to in accordance with section 65 of the Constitution.
Motion, as amended, agreed to in accordance with section 65 of the Constitution, namely:
That the Council -
(1) notes -
(a) with unadulterated joy that on the 50th anniversary of the
conquest of Mount Everest by Sherpa Tensing and Edmund
Hillary, a Mpumalangan Game Ranger, Sibusiso Vilane, became
the first Black African to repeat the feat and scale the
summit of the highest mountain peak in the world; and
(b) that Mr Vilane was part of an international team, comprising
eight members from the UK, the Netherlands, the United States,
Canada, Norway and Mexico;
(2) believes that all South Africans, indeed all Africa, rejoice with Vilane and his family on the victorious achievement of this singular honour;
(3) further notes that Mr Sibusiso Vilane steps up the podium to receive the nation’s applause, and becomes yet another African role model for the youth to admire and emulate;
(4) wishes to support the words of our President, namely that all Africans stand 8 832 metres tall;
(5) however, also notes, with sadness and disappointment, the news of the flight to Swaziland of Vilane’s wife and children because his house at Bungani Lodge, Mpumalanga, has been burnt down, allegedly by neighbours jealous of his new-found fame, causing damage worth R10 000; and
(6) condemns such a mindless act of meanness and madness by the alleged perpetrators.
KILLING OF MOTORISTS BY CAR HIJACKERS IN MITCHELLS PLAIN
(Draft Resolution)
Mr M I MAKOELA: Chairperson, I move without notice:
That the Council -
(1) condemns the senseless killing of motorists by car hijackers in Mitchells Plain;
(2) notes that the murder of the latest victim by car hijackers, Mr Togeed Jacobs, comes barely a month after comrade Reggie Oliphant’s death at the hands of car hijackers;
(3) offers its sincere condolences to all victims of violence and crime;
(4) assures the family that the hand of justice will ease their pain; and
(5) calls upon the communities of Mitchells Plain and elsewhere to co- operate with the police by identifying these murderers, so as to ensure that the law takes its appropriate course. Motion agreed to in accordance with section 65 of the Constitution.
Mr M A SULLIMAN: Chairperson, I had a motion similar to the one Mr Raju has just moved.
MIRACLE BABY BORN AT GROOTE SCHUUR HOSPITAL
(Draft Resolution)
Mrs J N VILAKAZI: Chairperson, I move without notice:
That the Council -
(1) notes and commends the Groote Schuur hospital doctors for the successful delivery of a baby girl named Nonhlanhla, who was born out of her mother’s uterus last Tuesday;
(2) further notes that extra-uterine pregnancies carried to term are so rare that this one is the 15th documented case worldwide, and only the 4th lucky one to survive;
(3) pays tribute to Dr Bruce Howard, the specialist in the gynaecology and obstetrics ward and a team of various specialists and doctors who worked together to perform such an outstanding Caesarean section delivery; and
(4) further congratulates the mother and the family for this miracle baby of the century, who has stunned not only doctors but also the country as a whole.
Motion agreed to in accordance with section 65 of the Constitution.
NONCOMPLIANCE WITH HIGH COURT ORDER REGARDING RWANDAN REFUGEES
(Draft Resolution)
Ms L JACOBUS: Chair, I move without notice:
That the Council -
(1) notes with concern that according to the Sunday Times article over the weekend, there has been non-compliance with the Durban High Court judgment ordering both the Minister of Home Affairs and the acting Director-General Mr Lambinon to issue two Ruwandan refugees with refugee identity cards;
(2) notes further that South Africa is a signatory to the United Nations Convention Relating to the Status of Refugees and the Protocol, which was signed on 14 September 1995, which requires that we offer asylum and protection to neighbours fleeing the ravages of war and degradation;
(3) expresses dissatisfaction with the abnormally high number of court challenges that face the department of Home Affairs, particularly with regard to our treatment of foreigners coming to our country; and
(4) appeals to the department of Home Affairs to double its efforts to apply the laws in accordance with our Constitution and in compliance with the applicable international instruments.
Motion agreed to in accordance with section 65 of the Constitution. EMPATHY WITH THE PEOPLE OF ALGERIA FOLLOWING AN EARTHQUAKE
(Draft Resolution)
Mr T RALANE: Chair, I move without notice:
That the Council -
(1) empathises with the people of Algeria in their time of grief and sorrow, resulting from the earthquake in which 2 200 people were killed last week;
(2) notes that yesterday morning another tremor was experienced in that country;
(3) offers its sincere condolences to the families of all the victims of the earthquake; and
(4) welcomes the support by all South Africans from the army, business and rescue services.
Motion agreed to in accordance with section 65 of the Constitution.
LANGUAGE POLICY FOR PARLIAMENT
(Draft Resolution)
Mnr A E VAN NIEKERK: Voorsitter, ek stel sonder kennisgewing voor:
Dat die Raad -
(1) kennis neem van -
(a) die positiewe standpunt wat al die partye teenwoordig in die
Gesamentlike Reëlskomitee ingeneem het oor die noodsaaklikheid
van 'n taalbeleid vir die Parlement, en wel in die lig van die
Nasionale Plan en Raamwerk vir Tale wat deur die Kabinet
aanvaar is;
(b) die waarde wat hierdie Raad toevoeg en die erkenning wat die
Raad ontvang vir die leidende rol wat gespeel word ten opsigte
van die bevordering van veeltaligheid in die Parlement en in
die algemeen; en
(c) die popularisering van vier belangrike wetsontwerpe deur die
Parlement in die vorm van elektroniese en gedrukte kopieë vir
omvattende verspreiding; en
(2) van mening is dat -
(a) dié stap geskiedkundig is en die koers aandui aangesien die vier
dokumente in al elf amptelike tale beskikbaar is - dit is 'n
eerste vir die Parlement; en
(b) dit 'n aanduiding is dat die Parlement nie 'n behoefte het om
enige amptelike taal in die Parlement af te skaal nie, maar
eerder om alle amptelike tale tot hulle reg te laat kom. (Translation of Afrikaans draft resolution follows.)
Mr A E van Niekerk moved without notice:
That the Council -
(1) notes -
(a) the positive position taken by all the parties present in the
Joint Rules Committee regarding the necessity of a language
policy for Parliament and in fact in the light of the National
Languages Plan and Framework, that has been adopted by the
Cabinet;
(b) the value that this Council adds and the acknowledgement that
the Council receives for the leading role that is being played
with regard to the promotion of multilingualism in Parliament
and in general; and
(c) the popularising of four important Bills by Parliament in the
form of electronic and printed copies for comprehensive
distribution; and
(2) is of the opinion that -
(a) this step is historic and leads the way as the four documents
are available in all eleven languages - this is a first for
Parliament; and
(b) this is an indication that Parliament does not have the need to
scale down any official language in Parliament, but rather to
allow all official languages to come into their own.
Motion agreed to in accordance with section 65 of the Constitution.
PRECEDENCE TO SECOND ORDER ON ORDER PAPER
(Draft Resolution)
The CHIEF WHIP OF THE COUNCIL: Chairperson, I move without notice that Order No 2 on the Order Paper be given preference to Order No 1. I have duly consulted with the party-political Whips. I have also conferred with the hon the Minister of Trade and Industry who has no objection to such a request. Thank you.
Motion agreed to in accordance with section 65 of the Constitution.
EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS BILL
(Consideration of Bill and of Report thereon)
The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Hon members, before we proceed, please note that we are in receipt of correspondence from the Minister of Finance, indicating that the following textual corrections should be made to the Bill as printed: One, that the word “or” in clause 10(1)(b)3 on page 9, line 33, be replaced by the word “and”. Two, that the words “failed to confirm” in clause 10(1)(c) on page 9, line 34, be replaced by the word “confirm”. I now call upon the hon Taabe to address the House.
The CHIEF WHIP OF THE COUNCIL: Chairperson, the hon member was not aware of the fact that the orders would be changed, but he will be here within a second or two.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Is there somebody ready to make a statement on that Bill other than Mr Taabe, so that we can proceed?
The CHIEF WHIP OF THE COUNCIL: Deputy Chairperson, the intention of the amended legislation is to give consideration to indemnity for those people who had taken money abroad prior to 1994 - large investments that were made by persons of South African origin. This legislation enables the persons, upon making appropriate declarations and disclosures that such moneys have been taken abroad, to bring such moneys back into the country. A fine or a levy, in the form of 5% of such moneys, would be imposed on people who wish to return or bring back the money into the country of origin, that is South Africa. In the event of such a citizen wishing to retain investment abroad, an amount of 10% would be levied on the investment.
The nature of the piece of legislation is such that it also makes provision for a disclosure of assets and these assets could also be valued. In other words, if they are not in liquid form - that is, it is a house or a building that has been acquired abroad - then assessment would be made of the value of any improvement, and the levy would be imposed accordingly.
May I add that the select committee, when it considered the piece of legislation, was in receipt of the textual corrections that were proposed by the Speaker in the National Assembly, and they had due regard to the matter when they supported the Bill. I have also drawn the attention of the various party-political Whips to the nature of the textual corrections that have been made, and I thank them for their understanding and their support. I have done my best, considering that I haven’t even served on the committee to be able to deal with the piece of legislation, which I have hardly scrutinised or perused. [Laughter.] Thank you. [Applause.]
Debate concluded.
Declarations of vote:
Mr K D S DURR: Chairperson, as the Minister knows, over the past years in the committee and in this House, I’ve been recommending the exchange control amnesty, and thus it would be churlish of me not to thank the Minister and his department for this Bill and for the work done. I think it is well-crafted and I agree with everything that the Chief Whip so well put.
However, there is a problem with clause 11 of this Bill, which I will ask the Minister to please give attention to. The Chief Whip mentioned a few principles regarding this Bill, and some of them are: One, a fresh start for all taxpayers, which coincides roughly with our new worldwide taxing provisions; two, allowing people to legalise their investments in tax affairs, which has the benefit of bringing those tax investments into the tax net.
However, there is another principle, one of consistency. A person who has invested, say, £30 000 in bonds or equities will pay, say, £3 000 or £1 500 to regularise their affairs. A person who, on the other hand, has put £30 000 into a property of, say, £300 000 with the £275 000 mortgage, would have to pay £30 000 pounds on the whole value of his investment to achieve the same objective. How will that person raise an additional £30 000?
I think it is something we need to look at, because I believe the net effect will be that people will simply not disclose because they can’t. They won’t be able to raise the total amount of the value of the money that they had taken offshore. The fiscus will be the loser in that the rental income for tax purposes will not come into the net in the future. The main loser will be the person who will continue with his illegal tax stature.
Simply, we support the Bill. We support the measure, and it is a good measure. We ask the Minister to look at that. Maybe he can deal with it in the regulations. I thank you.
Ms C BOTHA: Chairperson, the DA supports this Bill in principle. But, and the Minister is well aware, we consider it to be crafted in such a fashion that it won’t achieve its aim as well as it may have. Therefore, we abstain. Thank you.
Bill, with textual corrections, agreed to in accordance with section 75 of the Constitution (Democratic Alliance abstaining).
APPROPRIATION BILL
(Policy Debate)
Vote No 32 - Trade and Industry:
The MINISTER OF TRADE AND INDUSTRY: Chairperson, MECs, hon members and ladies and gentlemen, last year we presented the budget of the DTI in a manner that was specific to the NCOP, as part of our effort to make co- operative governance a reality. This was successful and we are going to repeat it again today.
The provinces will focus on the developments in their provincial economies, the Deputy Minister will focus on the DTI group of agencies in the provinces and I will deal with some of the challenges that we face in co- operative governance, making it a constitutional ideal and transforming it into an operational reality.
Our biggest challenge as a government remains addressing the inequitable distribution of and access to economic power and resources. Co-operative governance is an important instrument to address these inequalities. Co- operative governance, which is enshrined in Chapter 3 of the Constitution, enables effective delivery of services and achievement of Government’s strategic objectives through integrated planning and budgeting processes across all three spheres of government.
You will note that I said “spheres” and not “tiers”. Quite clearly, the term “tiers” has far too much of a hierachical tone to it, and ``hierarchy’’ does not reflect the spirit of co-operative governance. The developmental challenges that confront us as a country require a far more equal and co-operative relationship between the different spheres of government. This is what we, in the Department of Trade and Industry, and our counterparts at provincial and local government levels, are trying to achieve.
We have mastered the art, I believe, of constructive and productive interactions. Through fora such as provincial heads of department meetings, MinMecs and our annual provincial lekgotla, we have created a solid foundation for effective engagements with provinces. To take this interaction to a higher level, the DTI has introduced new mechanisms of working with the provinces and local government through clustering of provinces rather than visiting each province on a monthly basis. I am pleased to report that the executive board of the DTI had the first provincial visit of this nature last week, which proved, I believe, to be a success.
At local government level, the DTI has structured interaction through the SA Cities Network, an initiative spearheaded by the Department of Provincial and Local Government. Some of the people who attend the SA Cities Network and who attended our provincial lekgotla last year now attend provincial HOD meetings.
As part of strengthening relations with local government, I had a second very successful meeting with executive mayors in December 2002. We are thinking through how we extend this interaction to the rest of local government, and in this regard we would like to work more closely with Salga, the SA Local Government Association.
For us co-operative governance has become a reality. The coherence and alignment that we have between talking about over the past few years is now more concretised. National, provincial and local government, I believe, now talk the same language. We share a common vision of the economy. As Government we are all working towards an adaptive economy characterised by growth, employment and equity, built on a full potential of all persons, communities and, I stress, geographic areas. We have achieved agreement on how to attain that vision by the year 2014.
Over the past 12 months we have come together as national Government, provinces and cities to deliberate on Government’s economic vision, the Microeconomic Reform Strategy and the DTI’s Integrated Manufacturing Strategy, or IMS. The IMS, which was released a year ago, emphasises the need for strong partnership between all spheres of government.
The implementation of the IMS requires customised sector programmes. Working closely with provinces is essential, as industrial promotion and trade promotion are concurrent responsibilities between national and provincial governments. We have taken many steps to localise the Integrated Manufacturing Strategy, including making presentations to provinces and cities. Provinces have since initiated reviews of their own industrial strategies, and we welcome the alignment that has emerged between the IMS and the provincial strategies, particularly the prioritisation of sectors. I would, of course, urge hon members to have a close look at the exhibits outside, where, I think, you will see some very fascinating enterprises beginning to form, which are the embodiment of the Integrated Manufacturing Strategy.
There has also been extensive interaction with metros on the IMS. The SA Cities Network has held workshops on localising the IMS, and we welcome the research that is being conducted by cities to identify their competitive potential.
Local economic development and provincial growth and development strategies are focused on developing sustainable competitive advantages. These strategies reflect an abandoning of the traditional and less productive approach of attracting investment through competing on packages of susbsidies, free land, cheap infrastructure and services that have led mostly to a race to the bottom for municipalities through eroding their revenue base and constraining the provision of basic services to their communities.
A shared vision is, however, only the starting point. We need to find ways of translating this vision into tangible programmes that will make our vision a reality and bring fundamental change in the quality of life of our people.
But, where does responsibility for actual delivery lie? There is no straightforward answer to this question. To state that national Government is responsible for policy and that provinces and local governments are responsible for implementation, is overly simplistic. Economic citizens require a package of services which include elements such as land zoning, environmental impact assessments, investment incentives, market access, company registration and information on business opportunities.
Each sphere of government has a role to play in delivering this bouquet of services. We need to work together closely to ensure efficiency and responsiveness in providing these services. An investor from Germany or an entrepreneur from Kimberley does not really care which part of government is responsible for what; he or she sees only one government. We need to work on joint delivery strategies.
There are many important areas where we as national, provincial and local government are working together as partners. The Deputy Minister will address the initiatives taken by members of the DTI group to ensure that service delivery occurs throughout South Africa’s provinces.
Logistics infrastructure is at present a matter of critical concern with regard to the competitiveness of our economy, and we are working on this matter with KwaZulu-Natal and Gauteng provinces. During our provincial cluster meeting last week, we spent two days discussing logistics infrastructure. We visited Durban and had a presentation by the Port Authority, followed by a site visit to the City Deep Container Terminal the next day.
Industrial Development Zones are an embodiment of co-operative governance between the three spheres of government. These industrial estates, linked to international ports or airports, leverage investment in export-oriented industries and are attracting sufficient foreign direct investment to stimulate both local and regional growth. The designated IDZs are progressing, and we are learning valuable lessons as this programme is rolled out. This will inform our thinking about any future IDZs, such as the investment requirements in infrastructure and appropriate financing mechanisms and institutional arrangements for those IDZs.
A significant investment incentive has been the Strategic Investment Programme. This programme seeks to raise levels of private sector investment in innovative, profitable and wealth-creating business enterprises in South Africa, while simultaneously creating job opportunities within the industrial sector. Ten projects have been approved thus far, attracting investment of R2,97 billion. The provinces where these SIPs are located are Gauteng, KwaZulu-Natal, Mpumalanga, the Western Cape and the Eastern Cape. So we are beginning to get a spread of these critical projects.
We are working with each province to develop and grow priority sectors such as: agroprocessing in Limpopo and Mpumalanga; clothing and textiles in KZN; pharmaceuticals in the Free State; the film industry in the Western Cape; call centres in Gauteng; autos in the Eastern Cape; and mining in the Northern Cape and North West. These are some examples of concrete projects currently taking place. Closer collaboration between our investment promotion agencies is also essential in this regard.
Enterprise development remains an important area of co-operation across all three spheres of government. In order for our economy to grow in a manner that will create decent work for entrants into the labour market, it is necessary that new enterprises are created and that existing ones become more competitive. The Manufacturing Advisory Centres are a very successful example of what we can do together to support small manufacturing enterprises, and this is the reason we have more than tripled their budget in this financial year. If you look outside, in particular at the Gauteng exhibit, you will see some of the planning and designing work of GauMac (Gauteng Manufacturing Advice Centre). All provinces are beginning to use this facility more and more.
We need to work together to implement Government’s broad-based black economic empowerment strategy. We need to support the development of co- operatives, and we need to work together to carry out this important function. The select committee has highlighted co-operatives as an issue that is important to them and the DTI will be sharing its draft co- operatives development strategy with provinces at our next MinMec in July.
At a local level, the relationship between cities and provinces presents a particular challenge to co-operative governance. Cities have considerable resources and represent 80% of South Africa’s manufacturing activity. This is a global trend, yet huge disparities exist within cities. I think here of Sandton and Alexandra, or of Camps Bay and Khayelitsha. In Tshwane we have an urban core, surrounded by an inner periphery where 40% of the population lives, but contributes 91% of the economic output. There is an outer periphery in the North West, which is home to 60% of the population, but only contributes 9% to the economic output.
It is important to maximise the opportunities for economic growth and social development that are offered by these emerging global city regions. The advantages have to be developed in a manner that will ensure a more equitable spread of resources and wealth. It is our collective responsibility to make this happen.
Let me say that we are slightly concerned at the proliferation of development agencies. At the last count we had 54 such agencies, reporting to one or other department or city. I think we will need to do a little bit of streamlining in this area.
Another major challenge that confronts us in our pursuit of co-operative governance lies within the domain of regulation. The regulation of the liquor and gambling industries, as well as consumer protection, are concurrent responsibilities between national, provincial and, in some dimensions, local government. Over the past nine years we have vigorously debated the question of where the national responsibility of ensuring common standards and promoting alignment behind national policies begins and where it ends.
In the areas of gambling and liquor, it is recognised by both national and provincial governments that effective regulation is critical to ensuring that proper control over the industry is exercised in order to limit the potential social costs in the form of problem gambling and drinking and to maximise the benefits that can be derived from these industries in the form of economic empowerment, employment creation, revenue generation and infrastructure development.
Concurrent jurisdiction has the potential to result in less effective control over a regulated industry, owing to inconsistency in legislation and uneven enforcement across provinces, creating regulatory gaps that can be exploited by the industry.
The impact of uneven enforcement capacity across provinces can also be demonstrated in the area of consumer protection. A lengthy process was adopted by the national and provincial governments in 1996 for provinces to adopt legislation similar to the National Consumer Affairs Act. Most legislation was successfully harmonised, owing to the constructive relationship between national and provincial governments. However, provincial laws make provision for consumer courts, which are tribunal-like structures that assist with the resolution of complaints about local or provincial businesses. But, to date only three consumer courts are operational.
A similar situation is expected to occur in respect of liquor legislation once the new Liquor Bill has been adopted by both Houses of Parliament. Unless there are provincial laws in place, or default legislation as was proposed, it is conceivable that the new Liquor Bill will be in place long before all provincial laws are passed, creating the potential for regulatory gaps.
In the area of gambling, the differences in legislation and administrative processes between provinces are particularly pronounced in respect of horse racing. Here the licensing processes, licensing costs, levels of taxation and types of bets allowed vary between provinces, creating confusion in the industry. In addition, the type and level of inspection provided for in the different pieces of legislation varies, resulting in uneven degrees of enforcement and control across provinces.
Thus concurrent jurisdiction brings with it a number of regulatory challenges, ranging from the need for more effective co-ordination, and the need to harmonise legislation and administrative processes, to the need for the elimination of duplication, as well as the need for consistent and even enforcement action across provincial boundaries.
It requires a very strong relationship between national and provincial governments that is based on the common goal of upholding the public interest. It means that both Houses of Parliament, the portfolio and select committees in particular, must play an active role in monitoring and oversight to ensure that some of the problems outlined above do not occur.
The DTI will soon submit a new Gambling Bill to this Council that will seek to clarify some of the challenges and areas of concern outlined above. The Liquor Bill similarly seeks to clarify the relationship between national and provincial governments. However, here the role of national Government is clearly limited by the Constitution and the Constitutional Court judgment. The role of the select committee in ensuring that some of the concerns raised at the recent public hearings on the Liquor Bill, with respect to the challenge of formalising the illegal operators and a consistent approach across provinces, is, therefore, critical. I would submit that we are going to have a busy second half of the year in which the NCOP, in this economic area, will have to play a very critical role indeed.
As we work towards a common set of objectives, synchronise our programmes and adapt our legislation, efficient information-sharing becomes imperative. We have made progress in this regard through our regular meetings, but we need to find more innovative ways of sharing information on investment projects in provinces and cities, upcoming investment and trade missions, developments in market access or trade negotiations, and even changes in personnel within our departments.
The development of a management information system, to underpin and facilitate co-operative governance for economic growth and development, must be a priority for our departments over the next 12 months.
As the DTI, we need to be able to reflect on your provincial efforts and achievements at national Cabinet meetings, particularly the six-monthly Cabinet makgotla. We welcome the participation of some of the provincial heads of department in the economic and employment cluster. This is useful, and we enjoin more provinces to follow their lead. This is quite an interesting development, where the national clusters have participants from the provinces.
Another information challenge relates to statistics and data on provincial and local economies. This is something that many of our provincial colleagues have raised with the DTI. Within the DTI we are currently upgrading our own capacity for statistical analysis, and we need to work together to develop a more comprehensive statistical picture of South Africa’s economic landscape. Again, this should be a priority as we move forward.
I hope that I have illustrated the extent to which DTI values the importance of co-operative governance. It is core to our manner of functioning. For us co-operative governance is not limited to interaction between the three constitutional spheres of government alone, but includes our relationship with this legislature.
I would like to take this opportunity to thank members of the select committee for their continued hard work. Under their new chairperson, who, I think, has taken over extremely well, they have interrogated Vote No 32 and the DTI’s Medium-Term Strategy Framework.
I would also like to thank my colleagues in the provinces for their ongoing co-operation and willingness to work together, and I believe that we are truly building “Team DTI”. My thanks to Deputy Minister Hendricks, who deserves recognition today for her tireless efforts, as do the director- general and his dedicated staff in the DTI.
Before I conclude, I want to do a little bit of marketing for the DTI’s new information centre across the road, on the 6th floor of 120 Plein Street. I urge members to make full use of this resource. I am going to embarrass all of you fairly soon by naming the people who have been there. [Interjections.] As regards those who have not been there, I shall write a note to their constituencies saying that they are not interested in economic development.
So with that bit of threatening marketing, the DTI’s budget of R2,6 billion, as presented before this Council today, represents a large investment by the state in our country’s economic growth and development. By working more closely together, building on the solid foundation that we have put in place, we can leverage a much greater return on this investment. This is the essence of co-operative governance. I thank you. [Applause.]
Mna B J TOLO: Mohlomphegi Modulasetulo, Tona le Letsogo la gagwe, maloko ao a hlomphegago a Ngwako le ao a tswago diporofenseng, molaodi-phetisi wa kgoro le batlhomphegi ka moka bao ba lego mo lehono, ke leboga sebaka seo ke se filwego go lahlela la bosuana poledisanong ya lehono.
O tlo lemoga, Modulasetulo, gore poledisano ya lehono e botlhokwa kudu ka baka la gore e thintha maphelo a batho ba Afrika-Borwa ka moka ga bona; e sa tlogele motho: Ntle le ekonomi ga go bophelo! (Translation of Sepedi paragraph follows.)
[Hon Chairperson, hon Minister and Deputy Minister, hon members in the House and those from the provinces, the director-general of the department an all the honoured guests who are here today, I want to express appreciation for the time afforded me to convey my humble opinion on today’s discussion.
You will realise, Chairperson, that today’s discussion is very important, because it concerns the lives of South Africans in general, without exception. Without economy there is no life.]
On 27 April 1994, millions of our people - black and white - went to the polls to choose a party or an organisation to entrust with the task of reconstructing this country after many years of apartheid colonialism. A big majority of our people elected the ANC as a suitable organisation to fulfil this mammoth task. That mandate was renewed in 1999. That is the organisation I am mandated to speak for this afternoon.
Since that day, when the ANC was elected, this organisation, through Government, has never looked back. Since 1994 millions of people, some of whom had till then shared water with animals, now have clean water. The question of water supply may be taken for granted by some of us who, on waking up from youth’s ignorance, found themselves with tapped water. That is not the case for many of our people out there, especially in the rural areas.
Between 1994 and 2002 more than 3 million South African households were electrified. Some of these people never dreamt of having electricity in their homes in their lifetime. None other than an ANC-led Government could have made this possible.
The commitment of Government to overcoming the legacy of homelessness cannot be questioned by anybody. We have put a roof over the heads of more than a million families in the period under review.
We did not only roll back the frontiers of poverty, to use the President’s words, but as a country we managed to occupy our rightful place in Africa and indeed amongst communities of nations in the globalising world. All these have been realised because our economy has been resilient when other economies in the world were not able to withstand external shocks. In 1994 we inherited an economy which was stagnant and near collapse. We managed to turn it around and put it on a profound footing towards sustainable growth and development, thanks, among other things, to the leadership of Minister Alec Erwin and his deputy in the Department of Trade and Industry. The department has put its finger in the pie by understanding and focusing on the real needs of South Africans, which form the basis of the drive towards equity and sustainable development in the economy.
It is no secret that prior to 1994 economic empowerment and real participation in the economy depended on the colour of one’s skin and one’s gender. It meant, therefore, that one’s specific genetic material was indeed a key to one’s prosperity or lack thereof. It is for this reason that the department strives to realise black economic empowerment. We can report that only yesterday, our committee was briefed by the department on the BEE strategy. And, of course, we can also report that a Black Economic Empowerment Bill is already in Parliament and we will bring it to this House soon.
Both the strategy and the Bill prove in no uncertain terms the commitment of the department and indeed of the Government to realising equity within the economy. These structural inequalities in the economy are a fetter to further future development of our economy, and we have to get rid of them if we are serious about real sustainable growth and development.
When we compare our economy with others of more or less the same size, we realise that ours has seriously improved in its global competitiveness in the past years and it is poised to improve further in the near future. Manufacturing is said to be growing at a high rate. It has exceeded even mining in its importance. This high growth rate was given impetus by the automobile industry, which has grown tenfold in the year 2002.
According to the Bureau for Economic Research, the manufacturing industry grew by over 8% in 2002. And the fact that the manufacturing industry is export-orientated is a plus for our economy.
The department has facilitated trade agreements with several countries on different continents. Trade with Africa alone in the year under review has grown by 24%, which is good for Nepad. This, however, cannot be enough as we must strive to continuously expand our economy if we are serious about addressing the problems that face our people, such as lack of sustainable jobs.
The Department of Trade and Industry has a very broad mandate, which includes the following: acceleration of economic growth, creation of new employment opportunities and reduction of economic inequalities.
It is for this reason that the department has established and enlisted the services of a number of institutions that are collectively called Council of Trade and Industry Institutions - COTI Institutions for short. Although the majority of these institutions are, in our view, doing an invaluable job, especially in the field of SMMEs, there are a few, such as Khula, which we think are not up to scratch with their mandates and, therefore, need to be re-evaluated. I think one of the committee members will at a later stage talk at length about this.
The procurement policy of the department is very, very clear, as it seeks to redress the imbalances of the past. This policy, in the spirit of co- operative governance, must inevitably flow to the provinces and local authorities. The problem is that certain local authorities are not following this good policy. Is there anything that can be done to compel all Government structures in all spheres - I’m also using “spheres”, Chairperson - of government to follow this good example? Is there anything that we can do to see to it that the good policies that are formulated by this department cascade to the lower levels?
When the Minister addressed this House last year on his Budget Vote, he spoke at length about the role of provincial and local governments in relation to expanding the economy of our country. He spoke about the need for provincial governments to align their provincial economic strategies with IDPs. Now that some MECs and special delegates are here today, we hope to hear how they’ve managed to align their plans with the local authorities’ plans to realise greater acceleration in the growth of provincial economies. We hope to hear how provinces stimulate local economic development so that these local authorities can indeed be developmental in their nature.
We must also indicate that there is uneven development in respect of our provinces. More often than not, real economic growth seems to take place in the already developed provinces such as Gauteng. Perhaps they have more affinity with investments. The rural provinces find it difficult to attract investments. Our wish is to see more equitable economic development in all our provinces.
We think there is a need to be biased in favour of rural provinces in attracting investments. These provinces mainly produce raw materials. We call upon them to redouble their efforts in seeing to it that they add value to these raw materials. Beneficiation of raw materials will undoubtedly expand the provincial economies, thus creating the much-needed jobs.
This department is clearly creating policies that enable and will enable the economy to grow and to expand the market for our products and services, both internally and externally. We commend this department for always exploring new ways to grow the economy and to set up new people in business. We are convinced, as a committee, that this department has its priorities right and that its budget and all its subprogrammes are geared towards the realisation of their policies and priorities.
In conclusion, we want to congratulate the department for establishing an information centre - the Minister has already talked about that - which is second to none in Government so far. That centre is here in Cape Town.
Only yesterday, the Chairperson of the NCOP was talking about the possibility of using videoconferences in the NCOP, for instance with provinces. We can report here today that as a committee, we have already had several videoconferences with that department, using the very facilities that they have. We can report that it is an exciting experience.
Our committee supports this Budget Vote unreservedly. [Applause.]
The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Order! Hon members, I’ve been informed by the Whip in charge of the speakers’ list that the slot for speaker No 14 will be taken by speaker No 3 and that of speaker No 3 by speaker No 4, in that order. I will, therefore, call upon the hon T A Mufamadi, MEC for finance and economic affairs, Limpopo province, to address the House.
Mr T A MUFAMADI (Northern Province): Hon Chairperson, hon Minister, hon Deputy Minister, special delegates and permanent delegates to the NCOP, colleagues, MECs and friends, perhaps I should start off by saying that the previous speaker has actually represented rural provinces very well. Ke laka leo hon Tolo [I agree with you hon Tolo].
I think the majority of us will recall that Limpopo as a province started in the gutters of hopelessness and despair, epitomised by four dysfunctional Bantustan administrations. Despite these difficulties, we chose to focus and reach for the stars and refused to give in to hopelessness. Alone, we confronted difficult issues of rural economic development, with a very poor social and economic fiscal infrastructure.
In the quest for socioeconomic development, as a government and other stakeholders, we adopted the growth and development strategy to align ourselves with the National Growth and Development Strategy. We did so in 1999.
One of the three objectives of the provincial growth and development strategy is the facilitation of economic growth that generates employment. The other pillars are the maintenance of infrastructure and the building of the administration.
In the year 2000 our economy as a province, for the first time in our history, experienced growth in employment. This positive outcome was preceded by the growth of the economy at an above-average rate over a period of five years, and increased investment in the mining, agricultural, trade and tourism sectors.
All this started with the vision to grow the provincial economy to become the major contributor to the national wealth by the year 2020. It is still our hope, our wish and our dream that by the year 2020 we will be a major national contributor to the national economy. Our vision is supported by the mission to create and sustain an environment conducive to economic growth, social justice and equity for all.
The provincial GDP was estimated at R14 billion in 1994, to which the community and social sectors contributed 32%. This was the second smallest economy in the country. During the year 2001 Statistics SA reported the highest economic growth rate of 6,3% in Limpopo. Therefore we became the fastest-growing economy in the country. In fact, Limpopo’s economy grew to R64 billion, which was more than four times its original size in 1994.
It is important to note that the manufacturing industry increased from R1,83 billion in 1999 to R2,75 billion in 2001, which is a growth rate of about 50%. The wholesale, retail trade, and hotel and restaurant services doubled in 1995 from R4,2 billion to R8,5 billion in 2001. Capital investment of R4,3 billion, R5,2 billion and R6 billion occurred during the years 1998-99 and 1999-2000 respectively. The leading sectors in capital investment were mining at R6,5 billion, community and social services at R2,5 billion and the trade sector at R2,2 billion.
The key focus areas in the acceleration of our economy in order to create sustainable jobs are agriculture, manufacturing and tourism. The growth rates in both manufacturing and tourism industries no doubt have positive implications for job creation.
I need to mention at this point in time that to align ourselves with the National Growth and Development Strategy, we have set aside an amount of R20 million for irrigation schemes, to make sure that communities in the far-flung areas of our provinces and our country are able to participate in the mainstream economy.
We have also set aside R30 million in the current financial year for the sustenance of existing and the formation of new co-operatives. We have already started discussions with our colleagues in the Northern Cape about the Kalahari project, with the intention of ensuring that we also begin to organise communities, particularly local communities, to be the real beneficiaries of this project. We envisage the project to also take the form of a co-operative.
We want to place on record here that before 1994, unemployment levels in the province were growing at the rate of 16% per annum. By 1999, the rate had decreased by 10%. In the year 2000 the Limpopo province realised a net growth in employment, estimated at 1%. So we have completely turned the corner.
We could share more, time permitting. But, in conclusion, we want to say that as a way forward, in order to optimise job creation as the provincial government, we will be spending much more effort and concentrating on growing the agricultural and agroprocessing clusters, the tourism and construction industries as well as the development of the mining industry. We, therefore, welcome the step and the initiative by the Department of Trade and Industry to encourage co-operative governance between and amongst all spheres of government, particularly provincial and local governments, in and around areas of investment initiatives and investment promotion.
We think it is important that the national department continues to support spatial initiatives as envisaged and started by provincial governments. We also want to take this opportunity to thank DTI, under the leadership of the current director-general, because this department has indeed become a national department. It is not only visible, but we have started to feel and touch it on the ground.
I am speaking on behalf of ordinary citizens of our province in this regard, that ordinary emerging black entrepreneurs, those who fall under the category of and qualify for black economic empowerment programmes, have begun to benefit directly from the programmes of DTI. We also support your programmes, hon Minister, particularly around the liquor industry, because we believe that they are not only in the interest of the industry itself, but also in the interest of those who had been historically marginalised from the mainstream economy. So we are part and parcel of your initiatives and as a province we support you fully in so far as they are concerned.
Lastly, we would like to thank and really congratulate the Deputy Minister for being a champion of black economic empowerment and SMME programmes in our country. Thank you very much. [Applause.]
Mr E RASOOL (Western Cape): Chairperson, Minister, Deputy Minister, fellow MECs, colleagues and friends, I want to say that we are benefiting tremendously from the spirit of co-operative governance that exists, particularly between DTI and the provinces. I think that it helps us even further to drive that spirit of co-operative governance down to the local government level.
Already, I think that we have followed some examples, brought together some of the mayors of the Western Cape and the Exco members charged with economic development, and started to put certain milestones in place. All this narrows down to a microlevel intervention in the economy, with each acting within their particular capacity to maximise the resources. I think that is the right spirit. As the Minister says, it is not simply about who does policy and who does implementation. I think that there is such an interwoven approach to it that we have got to remain in touch and informed all the time.
I think that the Western Cape joined the growth and development strategy family fairly late, but we are driven by the desire to make sure that we catch up and that in catching up, we do not learn from our own mistakes, but from the mistakes of others.
When we put together the provincial budget earlier this year, we introduced the concept of Ikapa Elihlumayo, literally meaning “the growing and developing Cape”. That is what we are holding out, not as a complete product of the growth and development strategy, but as something to focus the debate on. It is also something that we are hoping, during the growth and development summit in the Western Cape later this year, to build enough consensus and strategies on, and add enough substance to is bare bones. We see the concept of Ikapa Elihlumayo (The Growing Cape) as a key mechanism to fulfilling not only the growth potential of the province, but also to sharing the wealth that exists within this province. This is our contribution to the Minister’s vision for 2014 for the economy of the country, and we are hoping that we will be able to do that.
It is very clear Ikapa Elihlumayo underpins the kind of equity outcomes that are required to overcome the disparities that the Minister has spoken about. A BEE conference that the Western Cape convened last week had a tremendous impact, I think, particularly on emerging business people, entrepreneurs - black, white, disabled, women, small, and of all sizes.
I think that we have been able to develop a consensus that for us the equity outcomes that we need to develop are around, essentially employment for our people; empowerment through spreading of ownership within the economy; SMME development as a key driver of our way forward; but also the notion of geographical equality, because our spatial inheritance from apartheid is such that we have dormitory townships next to thriving, viable economic communities.
Therefore, I think that what we are trying do with Ikapa Elihlumayo is to use the spirit of co-operative governance to build on our macroeconomic stability and achievements; to make a transition, very quickly, to a microeconomic reform strategy; to adopt the Integrated Manufacturing Strategy and to drive growth with an equity programme as we go forward.
We are also very conscious of the very great emphasis that you have put on doing so in the real economy and not necessarily within the imagined one; not chasing growth sectors in other provinces but basing it on our own strengths and our own potential within the Western Cape. For example, regarding tourism, we’ve invested public money in the construction of the Cape Town International Convention Centre that will open later, and that will add to the number of leisure and ecotourists that come here.
The number of business tourists will increase with the number of those that come for conferences, conventions and incentives. We think that the Cape Town International Convention Centre is already, before it is opened, before its first function, fulfilling the promise of bringing a very high yield, great turnover of convention-going tourists into the Western Cape. I think that we are basing our growth on those kind of strengths. [Interjections.]
I think the economy is so important that I would not want to join in cheap point scoring. I think that what we also need to say is that there are very important sectors within the Western Cape. Some remain, unfortunately, at the primary level. For example, we need to look at agriculture, fishing, forestry, and to turn them, through beneficiation, adopting elements of the Integrated Manufacturing Strategy through beneficiation, and push them into the secondary sphere of our economy. That way we will avert the many eyes that look at the sea, at packaging and processing, those kind of things, and sending beneficiated products out of the country. The same applies to agriculture, fruit and vegetables.
I think that we need to consolidate some of our sectors. We need to shore them up and to turn them around. I am thinking of clothing and textiles in particular. Since we had this debate last year, I think we have entered into very good co-operation with the SA Clothing and Textile Workers’ Union. We have been able to bring in some of the key bosses in the industry and agreed on the basic strategies to start protecting the industry, not through protective mechanisms, but through the developing of niche products for niche markets, positioning ourselves for agreements which have been made, such as the EU agreements, etc. I think those are the kind of issues that we need to get involved in.
I think that part of the growth sector has been the tertiary sector, particularly our ICT hub, business processing, a little bit of advance on the call centre industry and the financial services sector. However, they all require relatively high levels of skills and I think that is where we have been caught out in the Western Cape, and we are beginning to understand the need to invest significantly and quickly in our human resource development strategy. And so Ikapa Elihlumayo needs to be underpinned by that kind of human resource development plan, and I think that we are getting there.
There are some difficulties at the moment emerging as a result of the strengthening of the rand. Those who placed massive orders last year when the rand was relatively weak have had those orders cancelled. This has had an impact on jobs, and on products not going out. I think that we are trying to work with some of these industries to make sure that we save as much as possible of the situation and that things look up.
I would want to say that one of the key challenges that we are facing as a provincial government relates to the tools we have in order to drive growth with equity and to the leverages we have to achieve equity in particular. And if we were to look at it, the space that we have to manoeuvre within our budget is probably related to the investment we make in infrastructure.
In addition to infrastructure, the other sector that we invest heavily in in the Western Cape is education; R5 billion, and we believe that so far neither of them has given us value for money or has positioned us to achieve the kinds of objectives that we need to achieve.
I think that Ikapa Elihlumayo as a strategy is about how we start shifting infrastructure development in the kind of strategic ways that Stellenbosch has directed us. How do we start the process of turnaround within the schooling system to develop the kinds of skills that we need to develop? Those are the kinds of issues that we are very busy with. We realise the importance of the confidence that government generates where it actually gets involved. I think that we have been amazed at the way in which we’ve taken hold of some of the issues involved in the film sector. The idea that we support the notion of a film city or a film studio within the Western Cape has had the effect that a phenomenal number of people and consortiums have come together in order to bid for partnership with the government. They use the confidence generated by the presence of government to turn an industry that is sprawling all over the streets of Cape Town into one that has direction. This way you can sort out the empowerment and equity objectives and get them into a new phase of growth.
I think that we are beginning to understand how government at a provincial level needs to use its tools. We have a very important public-private partnership agreement that we have just signed with a consortium around Chapman’s Peak, which will be a boost for the tourism industry. I think it has enormous short-term job implications. It opens up one of the most scenic routes to tourists and I think that the specific mechanism of driving a public-private partnership is beginning to yield the kind of fruits we want. I want to end off by saying that at the end of the day, what the BEE conference discovered was that the opportunities are beginning to open up. Government legislation and mechanisms, such as score cards and all those kinds of things, are beginning to create the opportunities for our people. What we lack amongst those that have been historically disadvantaged is the notion of driving entrepreneurship, the notion of real enterprise development amongst people. That is where we have decided that we need to intervene to create an enabling environment for real enterprise development and for entrepreneurship development if our people are going to benefit from the opportunities which the economy is beginning to open up for everyone.
Thank you very much. [Applause.]
Mr A E DE WET (Eastern Cape): Deputy Chair, hon Minister and hon Deputy Minister, MECs, hon members, first, let me apologise for the absence of our MEC, the hon Enoch Godongwana. He is, unfortunately, engaged in an East London IDZ (industrial development zone) investment seminar and has asked me to stand in for him. It is with pleasure that I present his speech on his behalf. In the Eastern Cape we share the view that the South African economy is rooted in every village and town and in every city and province of the country. The challenge of changing the economic landscape of the country is, perhaps, nowhere more imperative than in the Eastern Cape. Historic distortions and inequities run deep in our province and leave trails of poverty, exclusion and unemployment in rural areas and also in our urban areas.
Bringing about a new economic geography is, indeed a fundamental challenge, and we dare not waver with respect to this responsibility. The provincial growth and development plan and the research and development work undertaken by the Eastern Cape Development Corporation have charted the way forward.
The imperative to focus attention on the development of the former Bantustan areas of our province forms the basis for planning and searching for solutions, but we remain acutely aware of the critical importance of the two major urban agglomerations in the province. The Buffalo City and Nelson Mandela urban areas are the engines that drive the provincial economy.
The challenge is to ensure that the benefits of urban ecomomic growth are extended to rural hinterland through productive forward and backward linkages that will stimulate primary production in agriculture, forestry, mining and fishing. The key lies in establishing value-added and job- creating processes, such as beneficiating and agribusiness enterprises.
The two industrial development zones in the Eastern Cape represent prime opportunities for building a sound basis for the development of manufacturing that is supported by the three spheres of government. The role of Government in this respect is to invest in critical infrastructure that provides an operating environment, which will attract and keep sustainable private-sector investment.
We have also ensured that the IDZ developments plan for and implement clear linkages with the undertakings of the urban renewal programme in the Motherwell and Mdantsane areas of Port Elizabeth and East London respectively. Equally important is to ensure that developments in the IDZs are extended to small business entrepreneurs, and that the principles of black economic empowerment are overtly adopted as points of departure. The Buffalo City Municipality and the Nelson Mandela Metro are part of the SA Cities Network. Whilst we understand that the process is still in an early stage, we look forward to reaping the benefits of this association, particularly in terms of understanding how large cities work, how their transportation systems are integrated and how their finance systems can be managed. Of principal concern in this respect, is coming to grips with the challenges of forging unified cities out of the legacy of separate development that has torn our cities apart into artificial group areas, which continue to affect city forms and flows.
Promoting food security through agricultural programmes is a major consideration in the Eastern Cape, and these programmes have been established through extensive investments in the Integrated Sustainable Rural Development Programme (ISRDP), which is focused on four nodal district municipality areas in the north and eastern regions of the province. These developments depend on the extent to which we can craft real co-operative governance among the national, provincial and local spheres of government, the national and provincial public entities, and the private sector. We are under no illusion about the physical and financial dimensions of the challenges that are involved. We believe that we have the necessary instruments to meet these challenges. The municipal integrated development plans are the key building blocks for ensuring that our development endeavours are rooted in the needs of the people. Aligning the strategic plans and budgets of the provincial government with IDP plans and budgets lies at the core of this approach. This is the most fundamental challenge of co-operative governance, not only between Government departments, but more importantly between provincial government departments and the district, local and metro municipalities.
We are aware of the growing relationships between the DTI and the provincial government’s department of economic affairs, and between the Department of Environmental Affairs and Tourism and the environment and tourism divisions of that department. However, we depend on access to information and well-judged policy formulation to guide and sustain the provincial economy, and we look forward to further consolidating those relationships in the pursuit of sustainable socioeconomic development in the Eastern Cape.
The Eastern Cape is poised to realise manufacturing development and export- related growth and employment. We will secure the key objectives of the Integrated Sustainable Rural Development Programme, and the urban renewal programme, and we will address poverty and unemployment amongst the majority of our people. We are proudly South African, and we will succeed.
However, there is another dimension that affects our future development, and that is how we as South Africans project ourselves both within South Africa and abroad. We are often our own worst enemy, projecting a negative image of our country. There are still people that don’t understand that if they highlight crime as the major problem of South Africa, they can’t expect foreign investors to think otherwise. Is it worth the cheap political points, sending that message out to the world, when we can deal with these problems internally ourselves?
So, too, does the Eastern Cape suffer from certain perceptions. It seems that our image of being the poorest province, where everything that can go wrong does go wrong, clouds the reality. I would like to inform this House today that with the Coega and the East London IDZ having moved to implementation at a rapid pace, the Eastern Cape’s contribution to the country’s GDP will increase dramatically. I want to say, “Ilanga liphumile eMpuma Koloni” - the sun is shining on the Eastern Cape.
We thank the hon Minister, the hon Deputy Minister and the Department of Trade and Industry for their contribution. I repeat: We are proudly the Eastern Cape, we are proudly South African, and we will succeed. Thank you. [Applause.]
Mr H J BEKKER (KwaZulu-Natal): Mr Chairman, it is a particular privilege for me to again address this Trade and Industry debate, although it is the first time that I’ve done so in this august House. But I think having been involved with trade and industry since 1994 has been a long spell.
An export-driven economy that emphasises the manufacturing industry is what this country needs in order to create essential and sustainable job opportunities.
Today we are indeed grateful that your efforts have paid off, and please accept our appreciation and congratulations for steering our economic ship in the right direction. The economic growth that is required for South Africa in order to sustain the population growth is dependent on the investment climate in our country. Massive international investment as well as internal investment, particularly in the industry and in tourism, is what we require, and economists and politicians must get off their backsides and take up their respective responsibilities.
All of us know that there are no longer international restrictions to foreign investment in South Africa and that investors are looking at us favourably and with sympathy. Unfortunately, several of them shop around in South Africa with their notebooks, whilst keeping their chequebooks safely locked away, mostly because of fear regarding the safety and protection of their capital investment. The greatest deterrent to real investment in South Africa is what is perceived by them - and I say specifically perceived by them - as violence, criminality, and uncertainty. The Zimbabwean situation is still a scare crow, chasing away investments, which also has major implications for South Africa.
The question that should be asked is: What are we doing to address these issues and what are we as politicians doing in order to give the international community the necessary assurance that we are indeed committed to stamping out violence, criminality and uncertainty?
Regarding the taxi recapitalisation programme, we wish the Minister and his colleague from transport all the best. They will need all our support in the months to come. The Taxi Recapitalisation Programme must ensure that the basic ownership of taxis would remain with small enterprises and individuals, whilst caution must be taken that newly established groups and big business do not take over or compete with this multifaceted, small business enterprise.
Substantial industrial development and job creation may occur with such a recapitalisation project, with the many benefits that such an upgrading project would have for the South African economy. It is, therefore, important that South Africa create and promote an acceptable Taxi Recapitalisation Programme.
However, in KwaZulu-Natal we also realised that any scheme introduced without proper and appropriate law enforcement will never be successful. In the long term, it is imperative that the interests and concerns of stakeholders in the taxi industry, particularly the safety of commuters, are taken into consideration. Obviously, Government should give attention and consideration to the concerns of all the relevant stakeholders, but the safety of the commuters must be our top priority.
In KwaZulu-Natal tourism is playing a major role in the creation of job opportunities. We are proud that KwaZulu-Natal has two world heritage sites. We are also proud of the other heritage sites in South Africa. A question arises: Should it be the provinces that promote these sites or should it be done at national level? My feeling is that this should be a joint effort and jointly, as national Government and the provinces, we should make a very special effort because I think that we still lack quite a lot of expertise in promoting our world heritage sites.
Furthermore, in KwaZulu-Natal we have cultural and traditional splendour. I even read the other day that the area where one can go for extreme adventure is the Arabi Gorge, which is the highest in the world. For anyone who is prepared to go and swing over the Arabi Gorge, that is now possible. These are the types of things that bring us into the international arena. The other aspect concerns the industrial development zones mentioned by the Minister. Richards Bay, of course, and the Empangeni area are two of these areas that have been acted upon. But we should also look at where the planned King Shaka Airport and the Dube Port are to be situated. Similarly, the Durban port area, which is fairly dilapidated, does offer fantastic opportunities as an industrial development area.
Of course, the Minister and I have had a discussion on that before and we did not agree on my particular personal feeling, namely that we should look at export processing zones, with the possibility of special tax concessions in those particular areas. In that way, I believe, an area such as Richards Bay in particular, could indeed become a gateway to Africa and that we can look at it as a Hong Kong of the future.
Just another interesting aspect - has anybody thought about how much tonnage is being transported back to Mpumalanga with the coal trains? I do not think that one single ton is being returned. It is all empty trucks. I don’t think it takes an extreme genius or an engineering genius to find a crane to lift containers. Our destination should be Africa, it would help the situation.
If one could have a situation in which one could have an inland port, particularly towards the Mpumalanga area where the coalfields are, and from there through central Africa and the eastern side of Africa.
If one were to focus on something which is not as positive, the Minister mentioned that he has made a call on the port of Durban as well. I think the overcongestion at Durban port is of great concern. The question arises as to what is the real cause of this particular aspect is it infrastructure, or is it a matter of low productivity?
And if one would look at the output figures of Antwerp and international standards applied at ports, then the performance of Durban harbour in particular - I think this is also true of other ports in South Africa - is way, way below what should actually be the norm over there. It is no use that one invests so heavily in trying to improve infrastructure if one’s workforce is not prepared to work on it.
A shocking finding came to my attention the other day that the total output per worker since the negotiations started about a year ago has actually deteriorated instead of improving. So, therefore, one has got to look at these issues very seriously and then also consider the aspect of the privatisation of ports. Once we get there, one could get the international know-how involved.
But, should that be the case, then one can also look at the other ports, and we wish Nqurha well in this regard. It is not that one wants to get into competition with other ports around the country, but I think that as industrialists we must, at the end, look at comparative advantages; where can you benefit the most? If one can achieve that, then one must have a level playing field. One must bear in mind that in South Africa certain things are definitely skewed, for instance, our electricity rates, which would be the same in Cape Town as in Mpumalanga itself.
Now, obviously one cannot … one has got to aim for some kind of a balance in this respect. But if one looks at the total aspect, Mpumalanga has been burdened with toxic waste, with everything related to this, but they are not getting any benefits from this. I just give this as an example. [Interjections.]
The CHAIRPERSON OF COMMITTEES: Order! Hon member, your speaking time has expired.
Mr H J BEKKER: The KwaZulu-Natal contingent will definitely support the Budget Vote. I thank you. [Applause.]
Ms M D RAMODIBE: Chair of Committees, hon Minister, hon members, DG, special delegates and colleagues, in 1994 we elected South Africa’s first democratic Government with a mandate, as enshrined in the Constitution, to redress the inequalities of the past and its political, social and economic imbalances. The historical imbalances left the majority of South Africans disempowered by denying them the right to develop. Transformation from colonialism to freedom has political, social and economic implications.
When you live in a state of poverty you are subjected to all forms of unpleasant conditions. Firstly, your mind cannot function properly, which means then that your ability to learn becomes weakened. An inferior education system has devastating effects on skills, particularly technical and scientific skills. This also prevented blacks from taking part in modernising industrial and commercial economy.
Allow me to quote Adam Smith in his 1776 edition: “No society can surely be flourishing and happy, of which the greater part of its members are poor and miserable.”
In his January 8 statement, the President of the country, Comrade Thabo Mbeki, said that in pushing back the frontiers of poverty, an important task is to formulate an elaborate economic transformation charter to accelerate the process of black economic empowerment for the deracialisation of our economy as a matter of urgency. We would like to commend the Minister of Trade and Industry, together with his department, for having embarked upon comprehensive programmes to provide a legislative framework for the transformation of our economy.
I have a few examples of pieces of legislation that helped deracialise the South African economy and lay the foundation for broad-based black economic empowerment: Restitution of Land Rights Act, Preferential Procurement Policy Framework Act, National Empowerment Fund Act, Employment Equity Act and the Competition Act.
The tendering process is made more accessible to black people. Although made accessible to blacks, one is still not convinced that fronting does not take place. Lack of financial resources will always inhibit the capacity of our people to access these opportunities. Whether the intended objective to reach the real targeted group is realised, is doubtful.
The Competition Act is about increasing the number of historically disadvantaged persons with an ownership stake in the economy.
The National Empowerment Fund is a trust that holds equity stakes in state- owned enterprises and other private enterprises on behalf of historically disadvantaged persons. The Finance Minister has set aside R10 billion over a five-year period and this will be channelled through the National Empowerment Fund.
Indeed, it is true that black economic empowerment is not a new phenomenon. However, the definition was too narrow and limited. What was needed was a comprehensive black economic empowerment strategy that draws together the various elements of Government’s transformation programmes in a more coherent and focused way. All South African individuals and enterprises will benefit from a more equitable economy, reducing income inequalities so that the majority of South Africans, particularly blacks, can contribute to economic growth. Underdeveloped people cannot contribute to economic growth.
Black economic empowerment also takes into account the principle of good governance, which ensures high standards of co-operative governance, equality and transparency. We hope that with the introduction in Parliament of the Broad-based Black Economic Empowerment Bill for the promotion of black empowerment, we will be able to interact and influence the Bill.
To measure progress, Government will use a score card. This will provide a framework against which to benchmark the black economic empowerment process and other sectors. Licensing is guaranteed to engage a regulated economic activity, for instance fishing. Priority must also be given to women because if you empower a man you empower an individual, but if you empower a woman you empower a nation. [Interjections.]
Recruiting black people into management and executive positions underpins economic stability and prosperity and promotes human dignity. Black economic empowerment is cross-cutting and, therefore, impacts on each and every department. It is not the responsibility of Trade and Industry alone, but that of Government as whole. Therefore, there will be a need for interdepartmental work.
I want to conclude by saying that as I have already indicated, transformation has sociopolitical and economic implications. It involves various stakeholders. Government’s intervention here is crucial to addressing the exclusion of the majority of South Africans from participating in the economy. Therefore the ANC supports the budget. I thank you. [Applause.]
The CHAIRPERSON OF COMMITTEES: Order! Thank you very much member Ramodibe. We succeeded in this country by negotiations. We, again, have negotiated with the Free State to give its slot to Mpumalanga. I therefore call upon hon member Mgidi from Mpumalanga to address the House. Mr S G MGIDI (Mpumalanga): Chairperson, thank you very much. This strategy of negotiations has taken our country to where it is today. I have no doubt that it will still take us further. Thank you, Free State.
As Mpumalanga we want to put it upfront, without clustering it with our input, that we support the Budget Vote of the Minister for a very, very simple reason, that since the Minister and his deputy became responsible for this department all policies from year one to date have shown some progressiveness and a need to change things for the better and improving the lot of our people. We want to encourage them to keep it up.
As you would remember, the ANC-led Government, soon after 1994, declared and indeed acted upon its declaration, that our country needed new innovative policy fundamentals. Many sceptics did not believe that the Minister and his colleagues in the Economics Cluster had anything to hold, anything progressive or anything that could take us somewhere. But then what became the result of those policies is that today our country, for the first time in many decades, is among those that boast better management of the economy. There’s no doubt about it. Nobody can question that. Not even those who questioned those policies before.
Again, when our democratic Government pioneered and indeed conceptualised a noble idea of co-operative governance, not many, especially those who don’t believe in innovative ideas, supported this idea. They thought that the intention here was to usurp the powers of the provinces. Indeed, what became of those policies is that our country today is better managed; our economy is even showing positive growth since then. We want to encourage this co-operative governance.
Today those provinces whose delegates spoke before me, KwaZulu-Natal and the Eastern Cape, with which as Mpumalanga we share the characteristic of being very rural in nature, would want to encourage the Minister to stick to the policy of moving towards supporting those rural provinces even more, the way we did with the policies that were never tried before. I think our direction towards these rural areas is going to yield positive results very soon.
Our Government and indeed our provincial government, have shown some commitment, which is unwavering, for the betterment of the life of our people. And as Mpumalanga we are still saying today that we have an objective to free our people from poverty and to free their individual potential to achieve their economic and developmental goals that they have set for themselves.
There’s no doubt that despite the economic achievements that our country has attained over the past nine years of democracy, the baggage of the past regime is still with us. One of our colleagues here said that we are benchmarking our success on somebody else’s blunders, but we are hopeful that following our good policies, soon the baggage of the past will be something that we don’t have time to talk about.
The level of unemployment that we see everyday is still relatively high, and a significant number of our people are still living in abject poverty. Inequalities are still prevalent in our economy, and the economy continues to record a positive but low rate of growth. Evidently, in order for us to reduce these ills, we require policies and strategies that will accelerate economic growth and development, as the Department of Trade and Industry has done.
As a province we have already embarked on a process of reviewing some of our economic strategies with a view to finding innovative ways of enhancing economic growth, small business development and, more importantly, job opportunities. To this end, we have already commissioned two studies, one examining the industrial development strategy and the other looking at the private/public partnership projects in the province.
With regard to industrial development, the studies are sector-focused. As we speak, two sectors have aready been studied, that is the stainless steel and petrochemicals clusters. We are currently busy with agroprocessing. What came out of these studies is that there are opportunities to exploit, but as we all know, the only obstacle is that our people lack the relevant skills to take advantage of these opportunities. Therefore as the provincial government we are currently looking at ways and means of ensuring that we empower our people accordingly.
The study also confirmed that clustering and incubation are some of the best approaches to apply for industrial development. To date the stainless steel incubator in Middelburg has produced 10 emerging entrepreneurs within a period of less than two years, and 10 minicompanies have already been identified around the incubator, creating further opportunities for the previously disadvantaged. The incubation process is also under way at a furniture cluster in White River and in a jewellery cluster in Barberton.
We have also intensified our investment promotions strategy. Just last year we managed new investments to the value of approximately half a billion rand. This figure excludes investment promoted by the private sector. What is also worth noting is that 58% of the investors that I’m talking about are local companies.
Our Small, Medium and Micro Enterprise Strategy is also under review. However, such a review is highly dependent on the national review processes, which are not concluded as yet. However, we welcome the steps taken by the DTI, Khula and Ntsika to ensure that they become more visible in the provinces.
The DTI has established three one-stop SMME delivery stations, including a regional office in the province whose primary aim it is to provide a comprehensive network of services under one roof to the SMMEs and entrepreneurs in general.
Khula has also established three microcredit outlets in the province to assist small businesspeople, especially women entrepreneurs, to access funding. Again, the biggest challenge facing the sector is the lack of business skills on the part of the emerging entrepreneurs. The local business service centres that are supposed to be discharging this responsibility are also under serious financial constraints, and are also probably facing other challenges as well. Most of them in my province are, unfortunately, nonfunctional.
The role of the Setas is not as visible as we would like it to be. If these could be jerked up, we believe that a big difference could be made regarding the issue of skills development.
With regard to export promotion, we have established an export resource network centre whose primary role it is to facilitate the co-ordination of small exporters’ activities; assist emerging exporters on issues such as application for business ventures, claims for EMIA and empowering emerging exporters on export-related issues. Believe me, the existence of this institution has seen a lot of smaller exporters benefiting a great deal already. They managed, among other things, to gain access to new markets, both locally and internationally, and also clinch good deals during exhibition events which take place domestically and internationally.
The issue of black economic empowerment, which many speakers before me have referred to, is very close to the heart of the Mpumalanga government. Looking at our procurement transactions processed during the previous financial year, the tender board awarded, among others, 313 projects to the value of R268,3 million to emerging and established companies. Of the 313 projects 214, to the value of R241,2 million, were awarded to historically disadvantaged individuals. And 46 of these projects, to the tune of R62,4 million, were awarded to companies owned by women. Malibongwe! [Praise!].
Although this is a step in the right direction, we believe that we can still do better. The Preferential Procurement Act requires revision in our view, because it still has provisions that unintentionally limit our people’s ability to access work from the Government. For example, although this Act is biased towards the previously disadvantaged, it does not give room for a geographic spread. Instead you find most of the tenders going to the hands of a few. I think something must be done in this respect.
From 29 to 30 May this year the province will be holding a black economic empowerment conference. The primary objective of this conference will be, among other things, to customise to the province the new broad-based black economic empowerment framework developed by the Department of Trade and Industry and also to try to find innovative ways of accelerating enterprise development within the province … [Time expired.]
Ms B N SONO: Chairperson of Committees, hon Minister, hon DG, to begin with, we note that for this financial year the DTI was voted R2,6 billion, which is quite a sizeable sum. [Interjections.]
I have my mike on.
Because of the past imbalances of apartheid, I’m going to confine myself to the heart of what matters to all of us in Parliament and the sitting, and that is the creation of sustainable jobs, poverty alleviation and food security, according to Programmes 3, 5 and 6 respectively of this Budget Vote.
Two critical policy developments occurred this year, namely the publication of the Integrated Manufacturing Strategy and the introduction of the BEE Bill to Parliament. Black empowerment is an important priority and Government is right in taking it seriously and to demand that the private sector does the same. But high levels of economic mediation remain the exclusive preserve of men. There is an apparent lack of the critical mass of women in the BEE initiative, given the unique position that women occupy in the business nexus. Formal arrangements should be made to bring the input of African women into ongoing empowerment efforts.
Essentially, there are two problems with Government’s drive on the BEE front. One, it concerns itself too much with responding to the past, rather than planning for the future; two, and most importantly, no particular attention is paid to growing entrepreneurs, let alone industrialists of the future; three, there is no concurrent drive to improve job prospects across the board, notably for the poorest, the least skilled and overwhelmingly black, who see the very opposite of empowerment in the form of rising unemployment.
Capturing of new innovations stops with the Companies & Intellectual Property Registration Office, which is doing a sterling job. But, other than that, all the other Council of Trade and Industry Institutions agencies do not fulfil their governmental mandates. The goings-on at the National Empowerment Fund are a case in point.
It is really a pleasure, Mr Minister, to step into a Cipro office. Their service levels are excellent. Because of Cipro’s position in the DTI stable, the DA proposes that legislation along the lines of the USA’s Small Business Regulatory Empowerment Fairness Act be considered and placed particularly with Cipro. The Minister should consider this as part of the ongoing law reform processes that are likely to result in new functions for Cipro.
Again as an ongoing process, monitoring programmes should be instituted with a view to encouraging empowerment companies to employ more workers as a due corresponding obligation. Secondly, this strategy does not lend enough thought to the type of education to pursue to help us domesticate the world of globalisation, considering that the world has moved on to service industries and financial sophistication. Admittedly, there has been shotgun empowerment in the area of microlending, where loans made are for consumption and not for entrepreneurial purposes.
Trade agreements have improved market access and facilitated growth. Exports to the USA under Agoa have risen, most notably in clothing. Clothing and textile are among the highly traded products in the world and, therefore, this makes it a highly competitive sector. The support and protection this sector is enjoying currently makes good economic sense and a policy measure. Many developed countries support their textile and clothing sector and maintain high protection. US duties on clothing range between 18% and 33%. Mauritius applies 80% duty on imported clothing.
Considering the benefits of Agoa and the propensity of this sector to absorb huge labour and the creation of new industries, would it be folly to ask the Minister to consider applying stringent contingency plans against debt-cheap imports, especially from China, or regulating the massive importation into the country of second hand clothing for a measurable time until there has been a creation of more dynamic and productive agricultural and textile industrial sectors which complement each other, and then move on to develop export niches? Hon Rasool did allude to this.
We can look at history and consider how countries such as Germany and the USA industrialised. Domestic industries were developed under conditions of protection from imports.
I now come to international trade administration. We laud the Sacu agreement, but of concern to us is the accelerated pace at which tariffs were lowered to levels far below the levels expected by the WTO. Would the hon Minister again indulge us by giving due consideration to curbing further lowering of tariffs or, alternatively, holding them at their present levels for a considerable time?
The thought of laying the US market open to local business is attractive, but there are concerns that local firms, especially small businesses, lack the skill, production capacity, marketing wherewithal and networks to take full advantage of the opportunities the agreement will present. The private sector is still weak, and its capacity to respond is dependent on the kind of human capital available to it.
We require a very selective programme to buttress our industrial strategy, for example, how does the industrial strategy complement agricultural production, and vice versa? How to …
The CHAIRPERSON OF COMMITTEES: Order! Your time has expired, hon member.
Ms B N SONO: … compliment the Minister for his leadership in the various trade agreements he has …
The CHAIRPERSON OF COMMITTEES: Your time has expired.
The DEPUTY MINISTER OF TRADE AND INDUSTRY: Madam Chairperson, hon Minister, DG, MECs, hon members, as this will be the first time that I’ve had an opportunity to speak in this Council since Mr Tolo’s appointment as Chairperson of the Select Committee on Economic and Foreign Affairs, allow me to congratulate him on his elevation to this important position. We hope that we’ll have as good a relationship with him as we had with the previous chairperson. I hope that he’ll continue to keep the department on its toes and ensure that we deliver on the promises that we are making today.
Nine years after attaining democracy, South Africa finds itself firmly located in the global economy. This is a changing environment with many pressures, and it means that we as a country need to remain competitive and dynamic if we are to be successful. This dynamism applies not only to the business community, but also to the Government and to the institutions that support this community. DTI’s Budget Vote No 32 that we table before you today is reflective of the changes that the DTI and its family of institutions have gone through in order to be dynamic and effective enough to provide leadership to the South African economy so that we are able to achieve our ultimate goals of job creation, economic growth and equality for all South Africans. The DTI budget highlights our need to be a more responsive institution that works with the business community and provides it with the necessary support so that jointly we can tackle the challenges that face us all. This has seen the DTI becoming a more service-oriented institution and gearing its support to the needs of the business community and the economy. The most effective means to reaching our goals is through a number of independently operating entities that are well co-ordinated and receive policy direction from the DTI.
To achieve this, we established a forum in August 2000, called the Council of Trade and Industry Institutions, COTII for short. Through regular quarterly meetings we have been able to develop a common set of performance indicators and to ensure that the activities of these institutions meet the strategic objectives of the DTI.
COTII comprises 21 institutions that deal with most of the needs of South African businesses. These range from institutions that deal with development finance, regulation and what we refer to as “specialised services”. The latter institutions are those that provide support for small businesses, and assist businesses with quality, standards, technology and innovation. This area also has institutions that deal with women in business.
The COTI institutions, as a collective, address the many different areas of support that is required by an enterprise in order for it to grow and become successful. The establishment of the COTII forum has enabled us to take control of our budget and get accountability from these institutions regarding the manner in which the funds are spent and whether these resources are reaching the intended beneficiaries. This forum has also been successful in bringing the COTI institutions closer together so that they achieve greater success in how they assist the economic citizens of our country.
In order to give direction to the economy and provide COTI institutions with a framework in which to operate, we released, as the DTI, our Integrated Manufacturing Strategy last year. Some of the aspects of this strategy are improved market access for South African products in key markets, promotion of beneficiation and value addition so that value is added to the many natural resources that are present in our country, and finding ways to harness the skills and expertise that we have acquired so that we can sell this to other countries.
The IMS identifies the need to capture local knowledge and to use this information to our advantage. It also encourages big corporations and large companies to make greater use of small businesses as well as promote greater integration between the different sectors in our economy so that they add value to each other.
In the Integrated Manufacturing Strategy we have identified specific sectors that need to be promoted as they are both competitive for South Africa and have an international potential. These sectors are clothing and textiles, agroprocessing, metals and minerals, tourism, automotive and transport, crafts, chemical and biotechnology, and knowledge-intensive services.
Black economic empowerment, small business development, increased use of information and communication technology, job creation and, very importantly, a more equitable geographic spread of investment will be addressed in the implementation of this strategy.
The DTI has recognised that the unequal geographic spread of our economy is a negative factor and that long-term structural problems will result if it is not addressed immediately. The DTI is addressing this issue in part through the work of our COTI institutions. It should, therefore, come as no surprise to hon members that a significant portion of the DTI budget, as reflected in Vote No 32, is transferred to these institutions.
The COTI institutions have, in one form or another, a presence in all the provinces of our country, from the remote rural areas of Elim in the Limpopo Province to the Central Business District of Johannesburg. These institutions, as we have heard from other hon members, have started to make an impact on the economic landscape of South Africa. But they have a huge task facing them, with thousands of enterprises and possible entrepreneurs approaching them every day for help.
Some of the examples of the impact of the COTI institutions are as follows. Firstly, starting with Ntsika Enterprise Promotion Agency, this agency has over the past few years established a network of 170 local business service centres across the country that offer business counselling, advice, training and information to Small, Medium and Micro Enterprises. Ntsika also has a successful Tender Advice Centre programme that has been able to facilitate SMMEs winning tenders to the value of R87 million.
Secondly, the Manufacturing Advisory Centre (MAC) programme, which initially started as a programme of Ntsika and assists small and medium enterprises in the manufacturing and value-adding sectors to become world class, has become a successful institution in its own right and has made an impact on the economy by providing support to over 1 400 enterprises. It has assisted those enterprises to create over 1 800 new jobs and ensuring that over 15 000 jobs were sustained through their interventions.
Owing to this success, we see the expansion of the MAC programme to all provinces of South Africa, and in this Vote their budget allocation is being increased from R43 million to R80 million. This increased budget will also go towards the extension of the business referral programme, BRAIN for short, which they run in 415 locations, as well as increased support in the provision of information on franchises and the establishment of one-stop shops for business support services.
Thirdly, Khula Enterprise Finance has been successful in the past year in providing 800 enterprises with R145 million worth of credit guarantees on their loans and providing wholesale loan finance to SMME lending agencies for R77 million. Through these programmes, Khula has contributed significantly to small and medium enterprises’ job creation.
They have also implemented a rural micro enterprise lending programme, which has lent to over 26 000 micro enterprises. And here I’ve noted what Mr Tolo said about the review of Khula, and I’m hoping that the Minister will deal with that when he responds to all the members’ inputs.
Fourthly, we come to the Industrial Development Corporation, IDC, which provides a number of financial products. It has ensured that over 60% of its projects were in rural and peri-urban areas. This runs into billions of rands that are being put into these less developed areas.
Next is the CSIR, which is an agency that conducts multidisciplinary research and technological innovation, and has the mandate to foster industrial and scientific development. It is represented in all provinces of the country, with major laboratories in Gauteng, Western Cape, Eastern Cape and KwaZulu-Natal. This agency has been successful in assisting enterprises with new product development, incubation, and improvements in existing technology. They offer support in a number of sectors, including agroprocessing, arts and crafts, clothing and textiles, infrastructure, tourism, information and communication technology, motor industry and aeronautical industry.
It is interesting to note that the CSIR has been able to use its high- technology facilities in order to develop basic technologies that can be used by rural communities, for example beadwork, manufacturing of silk and commercialising indigenous food products.
Last but not least, we have the SA Bureau of Standards (SABS), which in addition to setting minimum quality standards for most of our manufactured goods, is also a key institution in the accreditation of firms according to international standards, that is the ISO 9 000 or the ISO 14 000.
SABS also played an important role in assisting over 800 small businesses across the country to improve their capabilities by subsidising the costs of their ISO accreditation, product testing and skills training in standardisation and product certification.
There are also efforts to ensure that all COTI institutions have programmes to support women empowerment. In addition to this, there are institutions that are solely focused on the empowerment of women, namely the Technology for Women in Business (TWIB) and the SA Women Entrepreneurs Network (SAWEN).
SAWEN was established to assist aspiring and existing women entrepreneurs in the small business sector to find solutions to the wide range of gender- related obstacles that have an adverse impact on their businesses. This network, which is being set up across the country, will address these constraints by advocating appropriate policy changes, by building capacity and facilitating the access of women to business resources and information. There are still a number of challenges that we face in the effective delivery of services by our COTI institutions. The DTI is acutely aware of these challenges and is continually finding ways to improve the performance of these institutions so that the business community and the citizens of our country are able to benefit from the many services on offer.
To conclude, the vision that we have for the South African economy is to ensure that we are a globally competitive country, where there is greater economic equality and distribution of wealth across the geographical regions of our country. Through the vision provided by the Integrated Manufacturing Strategy, the practical support offered by the DTI and the COTI institutions to all businesses across the country, and with your support for Vote No 32, it will be possible for us to achieve this vision by 2014.
Allow me, before I sit down, to respond to just one issue raised by hon Sono regarding the BEE strategy and the fact that it is not clear on women’s issues. The initiative does provide for women.
In view of the statement by the hon Ramodibe, that if you empower a man, you empower an individual, but that if you empower a woman, you empower a whole nation, we have decided as the Department of Trade and Industry to host a BEE seminar for women that is going to integrate the black economic empowerment strategy and come up with proposals that will be implemented.
Hon members know that the strategy is continually under interrogation, particularly in the area of access to finance. There are task teams that have been put in place, so the door is not closed. Whatever suggestions hon members have are welcomed. The seminar will be held on 13 and 14 June.
I thank you for listening to me. [Applause.]
Ms S WEINBERG (Gauteng): Thank you Chairperson, I rise on behalf of the province of Gauteng in support of the Vote on Trade and Industry.
Economic growth, which is required for development, is best achieved through the private sector taking advantage of investment and job creation opportunities. Government’s role, therefore, in stimulating economic growth, is to ensure the creation of a fair and efficient environment conducive to business activity.
As the 2003-04 budget acknowledges, attention needs to be paid, therefore, to political and economic stability, supported by macroeconomic stability and policy clarity, rates of economic growth, labour market stability, investment incentives, the tariff regime and the protection of property rights. These factors need to be underpinned by a clear regulatory framework, increased competition, accountability and transparency.
Further, in a globally competitive context, South Africa needs to offer both superior and sustainable returns to investors, while ensuring that the benefits of this investment are equitably shared.
In line with national initiatives, the priorities of the provincial government of Gauteng and its economic policy have identified the following core themes: A shift in focus from macro- to microeconomic issues, with greater stabilisation and fiscal and macroeconomic management. The challenge now is to ensure that the economy operates optimally at the microeconomic level in order for economic opportunities to be taken up fully and equally across the province and in all local authorities.
More vigorous industrial policy needs to provide a clear and strategically informed framework to ensure that the Gauteng province’s growth trajectory is fully transformed and sustained, supporting regional economic growth and development. More vigorous investment promotion is required, and increased infrastructure investment is required to strengthen the viability of economic activities and to increase access to these by all citizens.
A boost to SMME promotion and black economic empowerment (BEE) is critical to ensure that the Gauteng province’s trade and industry activity has the potential to benefit, most widely, South Africans who are historically disadvantaged and disperses these benefits as equitably as possible.
With regard to employment, in 2001 the manufacturing, community and social services sectors employed 38% of those employed in the province. Although originally a mining region, mining accounted for only 2,3%. Growth in employment within the mining sector has declined by 3,7% over the past five years. The government and agriculture sectors respectively account for 6,5% and 1,3% of employment.
These figures emphasise that Gauteng is a distinctly industrial- and business-driven region. Employment in Gauteng, as a province, has fallen on average by 0,2% per annum over the past five years. Sectors that have recorded positive growth in employment during this time were the transport and communications sectors; mostly attributable to the communications sector, the finance and retail trade sectors. Negative growth was recorded for all other major industrial sectors.
Employment in the province as a whole is expected to improve over the next five years, with growth in employment averaging around 3% per annum. Growth in employment will be driven by the manufacturing, transport, communications and finance services sectors.
Growth in employment by the construction sector is expected to improve as well. The largest contributor to employment within the manufacturing sector is in fabricated metals, which is expected to grow at an average rate of 3,6% per annum. If you look at the stand outside, you will see one of the products from one of the small companies in Gauteng, in the fabricated metals industry - very interesting stuff.
Food and food products will also increase by 9,6%. We also have motor vehicles and parts and nonelectrical machinery, in contrast with value- added and investment contributions, emphasising capital intensive nature.
Iron and steel is only the sixth largest contributor to employment. Motor vehicles and parts are expected to grow to become the second largest employer within the manufacturing sector by 2007. This is one of the interventions of the Gauteng government in the motor vehicle spares sector.
When it comes to equity, related to the patterns of discrimination that are evident in the incidence of unemployment, exclusion of black participants in the South African economy is apparent in the ownership of the economy. Although measurements differ, depending on the definition of BEE used, only a few percentage points represent black ownership of the JSE securities exchange. Furthermore, the number of black directors in listed companies has declined between 1996 and 2002.
Something needs to be turned around. Comparative data on unlisted companies is not as readily accessible, but is likely to be similarly affected by the inability of previously disadvantaged South Africans to access the finance and all the skills needed to advance optimally within organisations of their own business operations. This is suggested by the finding that black South Africans defined as African, Indian and coloured, represent no more than 40% of managers, and only slightly more than half of South Africa’s skilled workers - 10 years into our democracy, mind you.
Hence, the empowerment of those who have been previously excluded from the ownership and management of the South African economy is a priority of the Government. It is also a requirement for optimal growth of the economy.
Discrimination has meant that South Africa has one of the greatest levels of income inequality in the world. Empowerment should seek to address, not contribute to this, by spreading its benefits widely, increasing access to basic services, to education, health care and other services required for effective participation in the economy.
SMME support coming from this department is particularly relevant. Definitions of black economic empowerment have mostly described a shift in both the ownership and control of the economy, but have also included initiatives that lead to the improvement in the levels of most South Africans’ quality of life. Hence a range of initiatives, such as the National Empowerment Fund, the Employment Equity Act, etc., work towards rebalancing the incidence of budgetary spending, land reform and support for SMMEs.
The greatest challenge in addressing inequality lies in rural areas, where 70% of South Africans live. Urban poverty is an increasing phenomenon and represents an important challenge to Gauteng in ensuring that industrial and economic activity offers opportunities to all our people. Failing to do so in South Africa’s wealthiest province will result in deepening the already problematic inequality.
The Gauteng provincial government is in the process of developing a vision for 2014 that seeks to build on the work that has been done between 1999 and 2004. The 10-year draft vision of the province seeks to achieve a number of outcomes, with citizenship and democracy deepened and realised.
There are high levels of labour-absorbing economic growth contributing to the development of the province, to the nation and to the continent. There are strong sustainable communities. There is a productive, skilled and healthy populace, and strong levels of governance are in place. These building blocks should guide the 2014 planning process of the Gauteng provincial government.
With those words, I support the Vote. I thank you. [Applause.]
Mr K D S DURR: Chairperson, we in the ACDP support this Vote, because we believe you are an outstanding Minister who has done great work for South Africa. There are a few things, nevertheless, which I believe need to be improved or concentrated upon. One is the whole question of consumer protection, which you also alluded to in your speech. We really need accessible, knowledgeable consumer advice, a cost effective helping hand and strong consumer protection.
Minister, a silent debt crisis is ravaging family life in South Africa. Some 3 000 debt judgments per day are being made with people blacklisted and taken out of the economy. In January alone, over 100 000 debt summonses were issued; 56% more than in 1994. These people, Minister, you will know, physically lose discretion over their income, with garnishee orders and that kind of thing, sometimes for decades. They really become slaves to the court orders. The cost is estimated at R1 billion per month, taking into account direct costs and costs to the economy.
Employees have piled up debt of R15 billion with microlenders, R10 billion with furniture retailers and R18 billion with municipalities. Should the Government not establish a commission of inquiry, or a departmental inquiry, to devise ways and means to stop this rot that affects 120 000 people per annum?
In my view, consumer education and protection needs to be one of the highest priorities of our Government and society. The private sector needs also to understand that they have a vested interest in protecting the consumer from exploitation, and exploitation should be swiftly and effectively dealt with. Business should be warned, and it should be named and shamed.
In the Western Cape we have not got our Consumer Court up and running yet, in order to provide swift and understandable justice to aggrieved parties. We have, however, got premises, but we are still waiting for the Central Evaluation Committee of Finance in the province to fix the remuneration levels so that we can advertise for a retired Judge, magistrate or advocate/attorney with 10 years experience; a kind of a Judge Judy we need here in the Western Cape.
Minister Rasool is sitting right here in front of me. He kindly said that he would expedite the matter and see that it happens swiftly. So, we have an ally here, Minister.
The 20 offices of the Consumer Protector in the Western Cape province continue to do good work, and this year we will embark upon an ambitious training programme for the staff of the advice offices. They will be doing a certificate course in consumer law, in conjunction with the Cape Academy and the National Paralegal Institute, as well as the University of Potchefstroom.
We also need to impart management skills to the voluntary management committees of these advice offices, and we are seeking to do that.
Lastly, may I say that gambling remains a corrosive and corruptive practice that is having … [Time expired.]
Mr M E SURTY: Chairperson, I will in fact, be speaking in my capacity as a designated delegate from the North West province, and proudly so.
May I just, in my capacity as the Chief Whip of the Council, mention or respond to certain issues raised by the hon Minister. Hon Minister, you spoke about the particular role or the specific role of the National Council of Provinces. In fact, we are mindful of our obligation in terms of promoting co-operative governance. We do believe that we can play a specific role, given the asymmetrical development in our country and amongst our provinces, and we could assist in the identification of appropriate development sites for purposes of trade and industry. We also believe that we have an advantage in this country, unlike Australia or Germany for that matter, in that we could develop a cohesive approach in terms of promotion of trade and industry. In the case of Australia and Germany you have a situation in which different states cannot even agree with one another in terms of regulation and transport arrangements, etc. We have that opportunity, and we do believe that this House can play a vital intergovernmental role in terms of trying to achieve the cohesion that you seek.
The Liquor Act would be a good example. Perhaps there was a rationale in using your discretion, but you could have introduced the Act in either of the two Houses. It would have been helpful if you had introduced it in the National Council of Provinces, where you could have obtained a provincial perspective on the challenges facing provinces in terms of that piece of legislation. Having done that, it would then have been debated quite fully in the National Assembly, which would have been informed of the perspective of the provinces. Therefore the other way round might have been more useful and less dilatory.
In passing, I just want to say that we welcome the intention to introduce the gambling legislation in this House, because it certainly gives the provinces an opportunity to be more proactive in this regard.
Having said those few things, we welcome the support of the Ministry and the Department in terms of the exhibition that we have before us and the constant support to the committees of this House. The hon Minister ended his speech with a bit of promotion. May I present mine on behalf of the North West with a statement short, sweet and soothing: “Invest North West”.
May I apologise quite formally to both the hon Minister and the Deputy Minister for the absence of the MEC, who is engaged in a strategy meeting which had been arranged some months ago and of which she is a convenor. However, she has conveyed her best wishes to both of you.
In relation to the state of economic development in the North West, the province has a population of about 3,3 million, of which approximately 60% is rural. During the year 2000, the average per capita income in the province was R9 384 and it grew quite significantly in 2001, to R15 509, reflecting positive economic growth in the province. The provincial GDP reached R57,8 billion in 2001 and the real economic growth ranged between 0,4% and 2,9%.
The prospects for 2003 seem very promising and we do anticipate growth of more than 5% in the North West province. As you all know, perhaps the most important and dominant sector in the North West is the mining sector, given the historical value of gold and platinum, which we are exploiting to the maximum. It contributes between 31% and 33% to the GDP and 23% employment. The hon Minister and the Deputy Minister referred to proper geographic and strategic planning around important resources and resource development for purposes of downstreaming microeconomic activities.
We believe that Rustenburg in itself is perhaps the fastest growing city. It is, in fact, the fastest growing city in the country, and perhaps on the continent. One could say that here is an opportunity for developing initiatives in terms of Small, Medium and Micro Enterprises.
We were a little bit disappointed when we visited the provinces to evaluate Khula, Ntsika and various SMMEs, to find that these agencies were not available in all the important nodal points. But I do believe that that has been addressed and that initiatives that have been taken by the provinces go a long way towards drawing the attention of national Government in terms of support to those particular areas.
There is a syndrome that the hon Minster referred to, the one that seems to persist not only in Rustenburg, but also in Nelspruit and other areas, namely asymmetrical development. You have the same situation in terms of acquisition … There is no land available for development, but you do not find the integration that should occur within those fast-developing nodes, and one really has to address this problem.
One could say that in a way, it would be helpful for the Department of Trade and Industry to examine the IDPs, with particular reference to the LEDs, which are an integral part of the IDPs by statute, and see what kind of plans seem to emerge across the board, among the 284 municipalities, and the kind of advice … Because the level of sophistication in the DTI, in my opinion - and I think that this is shared by all MECs and members who are here - is quite enormous. The department could guide provinces and assist them to develop appropriate initiatives for local economic development, with particular reference to microeconomic development.
The other aspect is the issue agriculture. This year we have very, very good economic indicators in our province. Agriculture contributes quite significantly to our employment, ie 15%. About 40% of the sunflower in South Africa, for example, is produced in the North West province. The province also produces an income of approximately R3 000 per hectare for maize farmers in the maize triangle, the largest portion of which is located in the North West.
We also have land which we will soon have to sell or lend to the Gauteng province, which is in our immediate vicinity. This also brings to mind another important factor, that of horizontal interaction. I think that there is too little of that occurring in terms of the planning strategy.
This kind of horizontal interaction, particularly with the various sectors of manufacturing, is critical and we would encourage provinces, given the fact that MECs and special delegates are here, to look at the matter quite urgently. We believe that whilst we are promoting provincial interest, ultimately we have to ensure that we do so in such a way that we establish a national identity and a national interest in order to eradicate poverty. We should not do so in such a way that we are overcompetitive and, by so doing, destroy the fundamentals of sound economic growth.
In terms of manufacturing, obviously there is an attempt in the province to promote and foster beneficiation, particularly through our mining sector, and we think that that is a very important area. we identified it through the research that has been done. There is a lot of production going on in terms of food and beverages, as well as metal and non-metal products. I am trying to rush because I am trying to finish the scope of my presentation.
In terms of tourism, I think that the North West has done extremely well. We have all heard of Sun City and the Lost City. We have also heard of the conservation parks which, again, are an indicator of the need for horizontal interaction. Not only do our conservation parks straddle provinces, they now straddle states. We think that here is an opportunity for provinces to get together and macromanage very important entities for the creation of job opportunities, etc.
Having said so, we are focusing on this particular area and also establishing downstream economic initiatives through heritage centres, such as in Moruleng, Mogwase and Mapok Ndebele village. These have provided jobs for more than 1 500 people.
In terms of economic development planning in the North West, its industrialisation strategy has been established. There is a corporate entity which has a comprehensive strategy in terms of ensuring that there is both macro- and microeconomic development. It looks closely at the bouquet of agencies that the Minister and Deputy President - Deputy President, my apologies - the Deputy Minister spoke about so eloquently, and which I think is very necessary for the provinces.
The primary objective is to brand the province for investment purposes and to do so as in “Invest North West”, and also to promote South Africa in the process, conscious of the fact that the North West is part of a larger entity and that it has a particular responsibility.
The North West’s strategy - I will call it Nwedes - links the IDPs for integrated implementation. It means that there will be interaction with local government and provinces in terms of the alignment of IDPs and to ensure that there is consultation among the various sectors, for example the agricultural sector, the mining sector, etc, in terms of initiatives undertaken.
For this particular purpose, particular attention has been paid to the spatial development initiatives, and the hon Minister referred to them specifically in his last address to this House, I recollect. We also have the platinum corridor, the treasure route, as well as the western frontier. These are important routes that give us access not only to the hinterland of our province, but also to other states that are prospering, such as Botswana.
We do believe that having developed these corridors, we are seeing the downstreaming of actual economic activity, and new enterprises are emerging along them, which are very promising and which will be monitored very closely by Nwedes. Approximately R2 million has been set aside for this particular purpose.
To come to an area that the hon Minister referred to, and that … [Time expired.] [Applause.]
Dr E A CONROY: Hon Chairperson, Minister Erwin, Deputy Minister Hendricks, MECs and colleagues, in my speech during the Housing debate in this House yesterday, I mentioned that the Government’s first duty to its people is to create and provide the economic and social circumstances which are conducive to satisfying their basic needs, namely, in the first instance, food, and, secondly, roofs over their heads.
I also mentioned that those circumstances do not necessarily mean that Government should provide these needs as such, but that it should create and maintain the climate and circumstances which will or should enable able- bodied men and women to provide for themselves. The country’s economy should, therefore, be of such a nature that it will enable all its inhabitants to maintain a life of dignity. Those comments also apply, even more so, in today’s debate.
Those are only the basics. We, however, all aspire to better life, better and healthier food, better housing, clothing and lifestyle, and better modes of transport. These goals can only be reached with a vibrant economy that ensures optimum employment. That is where the Department of Trade and Industry plays its role of facilitating economic development and growth for South Africa; a role which plans, co-ordinates and manages the activities necessary for a positive impact on the Government’s stated goals of economic growth, employment creation and reduction of economic inequalities.
It would appear that DTI has geared itself over the past few years to do just that, as the real GDP seems to be benefiting from positive input from gross fixed investments, household consumption and Government’s expenditure, supported by a strong trade balance and a positive economic outlook.
We all know and realise that the fruits of economic prosperity cannot remain in the hands of the newly emerged and previously privileged sector of our population, and that is the reason the development and growth of the small business sector is so vitally important. The NNP feels that although much has already been done to develop and empower SMMEs, so much more still remains to be done.
Voorsitter, dit is daarom verblydend om te verneem dat Khula wat duidelik tot nou toe gesukkel het om die mas op te kom, ‘n verandering in strategie in gedagte het, naamlik om direk by die verskaffing van leningskapitaal, in navolging van die vorige kleinsake-ontwikkelingskorporasie, betrokke te raak. (Translation of Afrikaans paragraph follows.)
[Chairperson, therefore it is heartening to note that Khula, which clearly struggled thus far to make it, has a change of strategy in mind, namely to become involved with the provision of loan capital directly, following the example of the former Small Business Development Corporation.]
The indication that the DTI has received a new mandate to develop the co- operative sector is also welcomed. If properly developed and implemented, this can be the platform to launch SMMEs, manufacturing and export into a profitable future. By its very nature, an SMME is small or relatively small and its manufacturing output relatively limited.
In contrast, potential clients in the importing market where South Africa wishes to make an impact normally place much bigger orders than the manufacturing capacity of individual SMMEs can handle. It might, therefore, be appropriate for DTI to investigate the possibility of developing a culture of co-operative export marketing of small- and medium-sized manufacturing enterprises, similar and/or complementary products.
Co-operative export marketing was the theme for a doctoral thesis that was submitted in the early 1980s, and although the international trading and commercial playing field has changed significantly in the more than 20 years since then, the basic principles are still applicable in the present era.
SMMEs still need to cut cost to the bone to survive in the modern, cruel competitive world and cannot waste expensive resources on individual export operations when it can combine its own technical skills and entrepreneurial expertise with those of others who wish to enter the same export market with their similar and complementary products.
Capacity-related export marketing problems can, in other words, be overcome to a great extent by combining their limited spare production capacities, and financial and manpower resources into voluntary export marketing groups.
Voorsitter, ek wil graag van hierdie geleentheid gebruik maak om minister Erwin geluk te wens met die wyse waarop hy hierdie departement bestuur. Hy kan steeds op my en my party se steun staatmaak om die ekonomie so te bestuur dat die beter lewe waarop almal hoop, ‘n werklikheid kan word. Die Nuwe NP steun hierdie begrotingspos. [Applous.] (Translation of Afrikaans paragraph follows.)
[Chairperson, I would like to use this opportunity to congratulate Minister Erwin on the manner in which he manages this department. He can still depend on me and my party’s support in managing the economy in such a way that the better life everyone hopes for can become a reality. The New NP supports this Budget Vote. [Applause.]]
Mr S T BELOT (Free State): Chairperson of Committees, Minister and Deputy Minister, colleagues and hon members, let me start off with the most important thing, that of supporting this Budget Vote, and also thanking the DTI family for the support they give to the provinces.
Mr Minister, this is indeed co-operative governance in action. It is for this reason that we will always support your Budget Vote and also not miss the Minmecs.
Having said that, our econonomic development programme in the Free State province commits to the following: That by 2005 we want to make sure that economic growth rises to 4,5% and that unemployment falls from 34% to 31%. We will, as government, also help to create 34 000 new jobs that will affect 5% of the households in the province.
This we will do by making sure that we strengthen the competitive advantage of the Free State and by promoting the creation and expansion of SMMEs. We will also enhance the livelihood, security and self-reliance of our citizens.
However, I need to hasten to say that the Free State economy is diversifying. The name of the game in the Free State is beneficiation and the prerequisite is forward and backward linkages.
The Free State, through its participation in a number of exhibitions, has given substantial exposure to the Virginia Jewellery School located at the Virginia Jewellery Manufacturing hub. They were also part of the department’s tender at Saitex 2002. Only two provinces were selected to exhibit at the International Investment Forum hosted by the President of South Africa, President Thabo Mbeki. The Free State was one of the provinces requested to exhibit the activities of the jewellery school. The significance of the jewellery school is that it serves as a tool to develop and unleash the creativity, especially of our youth.
I could also say that a Canadian company, South Africa Royal Manufacturers, which is established in the goldfields, is currently championing the jewellery manufacturing activities in Virginia. This company has now grown to provide employment to over 1 000 people, mainly women. I am expecting women to clap hands. [Laughter.] [Applause.]
As a result of our recent trip to Uganda, we have registered interest from the Ugandan government to send their students to the Free State province to be trained at the jewellery school. The Free State, through its implementation arm, the Free State Development Corporation, has been instrumental in the refurbishment of factories in the former Thaba Nchu area of Bophuthatswana. Here a meat processing plant, Sky Country, has been set up and has attracted 300 additional jobs. This project represents a total investment of R3,8 million. We are also in the process of refurbishing the remaining factories as we find new tenants.
As part of the efforts to develop human resources and increase the tourism market share and investment to the economy, we have facilitated the training and accreditation of 14 tour guides from disadvantaged backgrounds, as well as 14 young people from accross the province. Eight assessors were accredited through the Tourism Hospitality, Education and Training Authority. The Free State government has also facilitated training for 10 PDIs and B & B owners. We have identified tourism as one of our economic niches.
We are aware that financing is the big challenge in the area of economic activity and economic growth. We have, therefore, consciously embarked on loan financing to the amount of R122,85 million, which has been approved by our implementing agency, the Development Corporation. Of this amount, 90,46% was allocated to PDI businesses with a view to promoting black economic empowerment. As a result, approximately 3 600 jobs were created. As part of the broader objective of pushing back the frontiers of poverty, government will pay special attention in this financial year to black economic empowerment.
We have succeeded in opening the following factories in the wealth- depressed area of Thabo Mafutsanyana, formerly known as Qwaqwa. We have the Emaleni Enterprises and Tereen Trading, to mention just two, and they have both created about 1 300 jobs.
With regard to foreign direct investment, we have achieved something to the tune of R213 million, which has been attracted to the Harrismith area which is also in the Qwaqwa area. This will eventually create 2 000 jobs over a period of three years. We are currently negotiating three new investments, which is a direct result of investment in the textile mill. This will ultimately also be located in this area of Qwaqwa. I want to repeat, for emphasis, that Qwaqwa is a former homeland which needs our special attention.
New investments have also been secured for the Xhariep District in the southern Free State, which used to be endowed with diamonds, which are now depleted. It has a game meat processing plant as well as a bottling plant, and we believe that the local community will be afforded a 33% share in the whole stake.
I am glad to report that the Free State government’s efforts in terms of trade promotion are reaping positive results. In brief, I could share the following progress: Free State exports have increased from approximately R974 million in 1999 to approximately R1,334 billion in 2000, representing an increase of 37%. In 2002 exports declined slightly to approximately R1,303 billion. Exports contribute approximately 3% to the Free State’s GDP.
Our export-promotion programme has targeted Africa as an important trading and investment partner. We have in the past few months successfully invested in promotion efforts both in Uganda and in Kenya. We intend to sign trade and co-operative agreements with these two countries.
We are certain that the Free State has made a gateway to the eastern and central African markets, to showcase our products. We will be signing a memorandum of understanding with the Bei province in Angola and accelerate our investment promotion in West Africa. Mr Minister, Africa, in the spirit of Nepad, has become our biggest market these days.
Special emphasis is now placed on strengthening the capacity of our regions. We have opened regional offices, with a view to bringing the services closer to the people. The DTI has participated well by assisting us in opening these offices, and I want to thank your team, Mr Minister.
Amongst other things, it is important to mention, as the Deputy Minister did in her speech, that the Free State Manufacturing Advice Centre, which is part of Namac, is going to open two other offices in the Free State, one in Bloemfontein and the other in Welkom. We have set aside R2,75 million to make this possible.
In the Welkom area, the Machabeng Industrial Development Centre aims to assist with business skills and SMME development. We are pleased to have established one of the first industrial parks in the province with a budget of almost half a million rand. We have put money aside for the reactivation of another entrepreneurial centre in Botshabelo. Botshabelo was one area that was a dumping groung during the time of apartheid.
A black economic empowerment symposium will be hosted by the Free State government so as to fast-track the process of absorbing black economic enterprises into the mainstream of the economy, which in turn will assist us in our overall objective of pushing back the frontiers of poverty. We are emphasising the promotion of local economic development, that is, building on the strengths and harnessing the weaknesses that prevail among our communities in the Free State.
It is a fact that most new businesses in the community are formed by local entrepreneurs. Furthermore, most new jobs result from local business expansions and start-ups, and not so much from businesses moving to a community from elsewhere. These facts indicate that the development and nurturing of locally based businesses should be a significant part of a local development strategy. [Time expired.] [Applause.]
Mr T MAKWEYA (Northern Cape): Hon Chair, it gives me great pleasure, as I stand before you today, to observe that South Africa continues inexorably towards normalisation and towards the eradication of the apartheid legacy.
Economic transformation continues apace and we are currently enjoying unprecedented levels of stability in our macroeconomy. I think it is safe to say that the last vestiges of the apartheid siege economy have been superseded by a new South African economy that is increasingly globally competitive and resilient, in the face of some of the negative economic effects being experienced in other parts of the world. I would like to thank the hon the Minister and his team for a job well done.
Significantly, macroeconomic stability has facilitated the parallel pursuit of other transformatory programmes at national level, such as broad-based black economic empowerment, which continues to gather momentum, and the transformation of the minerals industry through the implementation of the provisions of the Mineral and Petroleum Resources Development Act.
Moreover, and of particular relevance to our provincial colleagues and me, it also provides us with a platform from which to implement accelerated programmes intended to promote economic growth and development at provincial and local government levels.
However, we have to recognise that the spectre of unemployment and poverty looms large. While we can claim to have implemented a range of programmes and measures targeted at poverty alleviation, in the final analysis job creation is the best means to this end. The promotion of economic growth and development, therefore, remains one of the short-, medium- and long- term priorities of local, provincial as well as national governments.
We must be mindful of the fact that our hard-won democracy will only be truly entrenched when the majority of South Africans are free from the yoke of poverty, visited upon them by the unemployment and economic marginalisation that is perhaps the enduring apartheid legacy. In the Northern Cape province we explicitly recognised the interrelatedness of the performance of our economy and the socioeconomic conditions under which large parts of our population live. We also understand that our best efforts at job creation, investment promotion, SMME development, black economic empowerment and even social development will come to nought unless we and our partners in development can succeed in putting our provincial economy back on a positive growth path. Consequently, the promotion of economic growth and development remains a central challenge of a government that aspires to achieve a better life for all.
You may well ask what then are the prospects for growth and development in the Northern Cape, and what is being done to realise those prospects? Firstly, while we may aspire to a diversified and growing economy that makes an increased contribution to the GDP, we need first to build on the fact that we enjoy a comparative and competitive economic advantage in natural resource-based industries such as mining and agriculture.
Firstly, all indications are that in the short to medium term there will be growth in mining, agriculture, tourism and in new industries such as mariculture and game farming, which will provide the basis for new sustainable livelihood in the Northern Cape.
Secondly, from what has been an extensive and ongoing research, we have identified a significant number of project-level economic growth opportunities that could provide the impetus for new growth and development. Some of these projects will require that the public sector take a leading role, and in others that it look to partnering the private sector as a lead agent or developer. Pure private sector projects, of course, remain the domain of the private sector, but we believe that we can facilitate some of these by providing appropriate public sector resource- support measures.
As the Minister has said, each province and each municipality needs to identify its own economic potential. I believe that we also need to be clear about what the functional economic relationships are between these municipalities, and, for that matter, among provinces, so that we can exploit synergies and avoid unnecessary duplication and competition.
In the Northern Cape, we are convinced by our research that the provincial economy can sustain increased levels of economic activity. Admittedly, much of that growth potential is in the primary sector, and that is because it is in this sector that we still find our comparative and competitive advantage. For now, we will, therefore, be focusing on our natural resource- based industries as a source of new economic growth and development, although we must continue to promote the value-added processing of our raw material output, where this is possible.
The province remains heavily dependent upon the mineral and agricultural sectors as a source of livelihood for our people. We believe that in the mineral sector, Government’s success in achieving consensus with the mining industry on the Mineral and Petroleum Resources Development Act as well as the Mining Charter, stands the province in good stead with regard to the future of this sector.
We are very excited by the opportunities that now present themselves, in particular, the possibility that now exists for the mineral resources of the Northern Cape to be employed to the greater advantage of the people of our province. We are busy exploiting the synergies between mining, mineral beneficiation, SMME development, black economic empowerment and regional economic development. To do so successfully, we need an even greater commitment to co-operative governance.
When all is said and done, minerals and energy is not, strictly speaking, a provincial competency. We, therefore, need to work closer with the Department of Minerals and Energy, the Department of Trade and Industry, Mintek, the Industrial Development Corporation and other national level agencies to ensure that many of the opportunities for growth and development in the mining and minerals industry are realised by the people of the Northern Cape, especially in the Kgalagadi ISRDS Node, where mineral development could be central to reducing the incidence of rural poverty.
Just yesterday, the hon Minister of Minerals and Energy was in our province and endorsed our efforts at establishing a provincial preferential procurement initiative with the mining companies operating in the Northern Cape. We also had the opportunity to present to them our value-adding strategy for this sector. In agriculture, the other leg on which the Northern Cape provincial economy stands, there are also very good prospects for growth and development, particularly in the areas under irrigation along the Vaal and Orange rivers, where new water rights and the more efficient utilisation of water should result in growth in primary production. Not only do certain subsectors continue to grow significantly, but a series of public sector- led projects are adding impetus to growth in this sector.
Once again, though we need to strengthen the process of business development amongst the emerging commercial farmers, who by and large can be classified as SMMEs, the provincial department of economic affairs and tourism, together with the Department of Trade and Industry and its parastatals, must play a more proactive role in this area, in partnership with the Department of Agriculture, of course.
Once again, the trick is in finding the means by which co-operative governance between local, provincial and national level jurisdictions can be brought to bear to more effectively facilitate project development in agriculture, where the need for transformation is so great, much in the same way that access to the mining industry has been opened up through the Minerals Charter. There is a need for us to examine how agriculture can be opened up to allow for more rapid development of black commercial farmers in primary production diversification, as well as for the accelerated development of agroprocessing.
Growth in new sectors such as mariculture and tourism is also likely to be an important source of new growth and development in our province. Mariculture displays enormous potential for growth along the Northern Cape province’s Namaqualand coast, particularly where it involves the cultivation of high-value species for export. Favourable biological conditions, excellent shore-based infrastructure, the presence of a number of pioneering private sector mariculturists and a strong research and development base offer an ideal environment for investment and growth in this industry.
For some time now, the provincial department of economic affairs and tourism has been researching the prospects for growth in this sector, and has now identified a portfolio of projects for which investment partners are being actively solicited. Key amongst these is a flagship Namaqualand Maricultural Industrial Park, which entails the development of a clustered set of complementary maricultural activities sharing common infrastructure and technical and business development support services, borne aside within the Richtersveld municipal area.
In our estimation this project, together with the portfolio of related maricultural projects with a captital development cost of R150 million, could create between 500 and 700 jobs over the next three years. To some of you that may not sound like very much, but in the impoverished and small coastal communities of Namaqualand, this is very significant, particularly in the light of the impending downscaling and closure of the diamond mines over the medium to long term. The Northern Cape provincial government will, therefore, be actively promoting this sector in the foreseeable future.
However, yet again, we will forge more effective relationships with the Department of Environmental Affairs and Tourism’s Marine and Coastal Management, the Department of Science and Technology, and, naturally, the Department of Trade and Industry, if we are to be able to realise the commercial potential of the maricultural opportunities that exist in our province. [Time expired.] [Applause.]
Mr T S SETONA: Madam Chairperson of Committees, hon Minister, hon Deputy Minister, hon members, distinguished special delegates from our provinces, I am highly privileged to be participating in this policy debate this afternoon on behalf of the ANC, because of its special significance in our historic task to push back the frontiers of poverty.
You will agree that the history of the ANC, which I am privileged to represent today, cannot be written outside the context of the ceaseless effort of the masses of our people to break the shackles of colonialism in all its ramifications. In my mind, this debate occupies special significance in the tapestry of our history, because it closes a chapter in the decade of our freedom since the 27 April 1994 democratic breakthrough.
It is, therefore, fitting that as we enter this debate, we do so with a great sense of celebration of the many successes we have attained in the past nine years of democracy in destroying the barriers to economic participation and ownership on the one hand, and in appreciation of the daunting challenges that lie ahead of us in our ongoing task to push back the frontiers of poverty, on the other.
Without sounding like a prisoner of the imaginations of history, allow me to begin by making the statement that the economic management of this country prior to 27 April 1994 was not only tailored to marginalise and exploit the oppressed and colonised majority, but more fundamentally to plunder our economy. It is primarily because of this that today we are faced with huge disparities between the haves and have-nots, and a huge deficit in our balance of payments.
Certainly, the Department of Trade and Industry wouldn’t have achieved what we will highlight today, as has been highlighted by all speakers that have spoken before me, had it not undergone fundamental restructuring that has repositioned it to be a player in a globally competitive economy. The restructuring process of the DTI was, amongst other things, aimed at eradicating overlaps and duplications of agencies and institutions; creating certainty and clarity in terms of the mandate of each agency/institution; enhancing equitable geographic spread in their outreach, as well as access to their services; focus and greater accountability.
This process of restructuring culminated in the establishment of the Council of Trade and Industry Institutions, which aligned and focused various agencies behind the Microeconomic Reform Strategy, Integrated Manufacturing Strategy and the DTI’s overall strategic objectives, as both the Minister and the Deputy Minister highlighted earlier on.
With this new organisational regime of the DTI, Parliament is now in a position to call each and every agency to account for its specific mandate, thus enhancing the oversight role and function of Parliament. On the basis of this, there is moral and political justification for all of us supporting the increased allocation for institutional support to the Department of Trade and Industry. And I hope that all of us, across the political spectrum, do so.
We thank the Minister and his department for the hard work done and for the visionary leadership provided to our country and our Government in particular, to turn our economy around from virtual collapse.
In appraising the extent to which the DTI has risen to the task of pushing back the frontiers of poverty, we must do so within the context of its core strategic goals, namely accelerating economic growth, creating new employment opportunities and, lastly, achieving economic equity.
In view of the goal of accelerating economic growth, no one can deny that our economy has witnessed an upward growth of 3,5% in the past financial year, amidst volatile global financial markets. Over and above the growth in the economy, we have also witnessed a greater degree of stability in our economy, which attests to stability in our policies. We have refused, as the ANC-led Government, to pander to populist choices in our economic reform and management.
The creation of new employment opportunities is also key to the DTI’s strategic goals and, of course, derives from the core policy mandate of the Reconstruction and Development Programme. The key challenge facing this country, which is also the mother of many social ills that we can talk about, such as HIV/Aids, alcohol abuse and many others, is the question of joblessness and the deep structural economic inequity.
Before one can even begin to elaborate on these challenges, one ought to acknowledge that at the heart of this problem is the distorted skills base of our country, which is not up to scratch to confront the technological and entrepreneurial challenges confronting our economy.
The Sector Education and Training Authorities will go a long way towards skilling and capacitating our labour force to meet the challenges of our time. We can, however, not be complacent now that we have these SETAs. The key challenge is for us as public representatives to, from time to time, assess the extent to which we are constantly monitoring the performance of these structures, in particular the SETAs.
One should highlight that in the past five years the Industrial Development Corporation has facilitated the creation of more than 70 000 jobs, approved projects responsible for generating more than R20 billion in export earnings per annum, facilitated investments worth more than R21 billion in South Africa and supported black economic empowerment through the provision of loan finance, to the value of R1,4 billion, to enterprises belonging to previously disadvantaged groups.
The Companies and Intellectual Property Registration Office has succeeded in facilitating the registration of more than 100 000 close corporations in a single year, thus improving efficiency in the delivery capacity of the DTI. This is contrary to the reading by hon Sono, who said that Cipro has not lived up to its expectations.
I will not have said anything in this debate, more so as I’m speaking on behalf of the ANC, which represents the future of this country and the hope of our masses, if I don’t talk about the future of this country, which is in the hands of the youth, in relation to economic mainstreaming, participation and empowerment.
The Minister will agree with me that no one but the ANC can provide solutions to the problems of this country. And as a young person, I want to speak on behalf of this sector and say that according to the year 2000 report of the Community Agency for Social Enquiry, 62% of our economically active young people in South Africa are unemployed. Their prospects of securing employment in either the formal or the informal sector are dwindling each year.
The same report goes further to say that 70% of … [Interjections.]
The CHAIRPERSON OF COMMITTEES: Mr Setona, there’s a point of order.
Ms B N SONO: Thank you, Chair. I’d like to correct a misnomer …
The CHAIRPERSON OF COMMITTEES: Is that a question or a point of order? [Interjections.] No, this is not the time for corrections, member Sono.
Mr Setona, can you continue?
Mr T S SETONA: Chairperson, I was making the point that the same report goes further to say that 70% of our young people prefer to be self- employed, as opposed to being job-seekers. Now, Mr Minister, the key question is: To what extent has the DTI in particular established bias and focus in terms of this particular sector? I am not raising this question in opposition to the question that was raised earlier by the hon Ramodibe from Gauteng, who is also my colleague in the ANC. I agree with her that when you empower women, you empower the nation. [Interjections.] But at the same time, we also need to take that slogan further and say that when you empower the young people, you are actually building the future. Without the empowerment of young people, there’s no future for this country. [Interjections.] [Time expired.] [Applause.]
The MINISTER OF TRADE AND INDUSTRY: Chairperson, members of the House, my colleagues from the provinces, I think we’ve been privileged today, as we’ve been before in the NCOP, to have a picture of South Africa painted with regard to what’s happening in the different provinces at local government level. It seems to me that it’s an immensely positive picture.
If I think back to a few years ago, to similar debates, I detect a completely different feel, spirit and atmosphere; far greater confidence in what the provinces can achieve, and I do truly believe that we’re beginning to see the fruits of a great deal of hard work that has been carried out by everybody. Let me deal very quickly with some of the specific matters that have been raised and a few general points. I will try to be under 15 minutes, because I’ve noticed, Madam Chair, that when you look at people, it’s dangerous. [Laughter.]
I would urge us to reflect on Khula. I think there has been an expectation that it can do everything; it can’t. I think it has done a lot. But, it is correct, we are reviewing whether we should not allow Khula in certain areas to do more retail financing, because, remember, it is itself not a direct financier; it finances through others, and I think this is not often well-understood. We will do it carefully in a manner that tries to bring about some of these collaborative efforts within the DTI family of institutions.
On procurement, we will attempt, through the DTI, to monitor the BEE components of procurement so that we get a more standardised approach throughout the public sector.
With regard to spatial initiatives and SDIs, I think we’re pleased with the way the provinces have assumed greater responsibility for these, but are prepared and will begin looking again at some of these aspects that are important. With regard to the hon member Bekker and the taxi recap, this is a complex project and we need all the help we can get. I think it’s crucial. Remember that its original purpose was designed to improve the quality of the taxi fleet and, therefore, its safety for passengers. And I think this is crucial. That fleet is getting older and there is no way that we can avoid the taxi recap project. So any discussion by anybody that we shouldn’t do it, or anything like that, is absolutely wrong. That it should remain largely in the hands of smaller operators, I think is a good direction we should be taking.
With regard to the World Heritage Sites that you referred to in KZN, but also elsewhere in South Africa, I am pleased to say that we have a very good working relationship with the Department of Environmental Affair and Tourism, both at provincial level and nationally. We, of course, as you know, have joint projects with them in the sponsorship of the tourism sector through the manufacturing development programme that the DTI runs.
On the question of export processing zones as traditionally known, we’re not going to go into those zones. I think that for South Africa it would be viewed somewhat askance by many others if we went into that area. So the industrial development zones are our version of how we would attract investment into these sophisticated and complex industries that are more orientated towards exports.
On the issue of ports, I made comments the other day that there are many things that we will address with them. One thing I would urge, though, and as a result of my own department’s visit to Durban port, we must be very careful of comparisons. You can’t compare a transshipment port like Singapore’s handling of containers with that of an entry port like Durban’s, or an export port. So we need common comparators, and when you do that - when you bring in common comparators - it is not that we’re that far off. I think we mustn’t sell ourselves short.
Our harbour systems are not that bad at all. We do have to improve certain efficiency areas, and there are many problems that we’re beginning to sort out - I’m pleased to say - with the shipping lines, which already are beginning to improve the through-flow of the ports. But it is an area that we’re working on as national Government.
I think the point that was made by the hon Sono about Cipro was a positive point. However, we can’t move other programmes into Cipro. I think it’s done remarkably well. But I think a close look at the DTI agencies, all of them, will see an improvement. We have the ability, for example, to monitor the call centre and see who is calling in. Cipro is far and away the most common destination for incoming calls to the call centre. Thousands and thousands of them are coming in every day. We find a good response by our agencies to the call centre. So I think we are seeing a general rise in efficiency.
Very quickly, regarding clothing, let me say that we have antidumping provisions and we will only use antidumping provisions. We have a very strict policy on not importing second-hand clothing. Yet many of you in this House keep coming to us and saying we should import second-hand clothing. It’s wrong; we can’t do that. We will only allow clothing to come in under the strictest supervision for genuine hardship cases. Otherwise we’re going to destroy our industry.
So I would urge you, colleagues, and all over; it makes no sense for South Africa to import second-hand equipment. There are very isolated areas where we do it, such as importing tyres for retreading only under strict supervision. We’re prepared to import machinery and equipment under strict supervision. You can’t import second-hand motor cars. We’re not going to destroy our industry with second-hand motor cars, unless it’s your personal vehicle or a vintage vehicle.
So I would urge you to support me on this issue of preventing the importation of second-hand products of any type into South Africa, other than those very exceptional and limited examples that I’ve given.
On consumer protection, hon member Durr, I’m pleased you raised it. I think this is an important area. In the national DTI we have begun, I think, to do excellent work in restructuring our division called Consumer and Corporate Regulatory Division. We will be much more active in this arena, but I think that all provinces must pay it due attention.
Without a culture of consumer protection, without a system where consumers can come and lodge their complaints, you will get the sort of indebtedness that you have. And you’ll get all sorts of other problems that emerge. So I would urge all of you, members as well, to put this at the forefront of your minds. Consumer protection is very important for our economy. It helps keep the economy quality-conscious and safety-conscious. It also prevents abuse of poor peoples and peoples in dire straits by unscrupulous operators.
I really thank the hon member Surty, as the Chief Whip, for his contribution. I think, colleagues in this House, we’re now beginning to understand, as our democracy matures, just what role the NCOP does play in the economy. And you’re absolutely right, hon member, the NCOP plays a very, very important role in the economy. And we will strengthen our links with you.
It is your job to see that within the constitutional construct of co- operative governance, which is a fundamentally important construct - it’s almost unique to us - we still do keep coherence in our economy. And I think this is a very important role and we will work with the hon member Tolo, as the chairperson, to strengthen your hand on this matter. It’s very important and we will introduce legislation here first. I think that’s a very good suggestion which we are, as you know, taking up.
On co-operatives and exports, hon member Conroy, I think you’re quite right. I was very interested to see if you watched one of the displays out there. The marketing companies or trading companies for crafts are proving to be more and more important. And those can easily be co-operatives. But people don’t have the skill in co-operatives, and those are some of the things we’ll be looking at at DTI, namely how do you train people to run co- operatives? It’s not easy; it’s difficult.
I thank you for the comments on the DTI restructure, hon member Setona, as well as on the youth. The issue of youth employment is really quite crucial. We started in the information and communication technology sector; the ICT Development Council started a youth internship programme. If my memory serves me correctly, we started with 50 youngsters. Some had degrees, some were straight out of school and had never worked before. We put them through a one-year course on information and communication technology, computer use, networking, and setting up LANs, using the Cisco training courses for things like that. All of them are now employed, half of them in management. These were all youngsters under twenty-five.
We are now expanding that programme this year. The DG’s just informed me … Oh, he’s run away. The DG informed me that we may have to fund it because there was such a demand for this programme that we could have trained 900 people this year. There were 60 companies that wanted to participate. As you’ve seen from my recent visit in the US, there is this question of business processing call centres. I think you’re going to see and we’ll put a lot of effort into employing young people who are good with languages, and we’ll train them on computers. And we’re going flat-out to try and support and develop youth employment programmes. I think it’s crucial.
Some very quick general comments, Madam Chair. You’re looking at me and I’m getting nervous. I welcome the provincial BEE conferences. Well done! This is important. This policy must be well-understood by everybody because, as we said in that strategy - remember what we said? - this is actually a strategy for growth and development. It’s not a strategy to move something from here to there. So the only way we can make it a strategy for growth and development is if the provinces become active in it and tell people about what it is.
With regard to women, let me just assure you that in the DTI I’m a minority and I know my place, but we are fundamentally committed to supporting women in business because we would be stupid not to. This is the majority of our population. You can’t have an economy that’s growing, where there’s development taking place, if women are not absolutely fully participant in that economy.
We cannot tolerate any form of discrimination against women if we want this economy to provide a better life for all. And I think all of us should be absolutely crystal clear on that. These efforts to involve the youth and women are not just because I’m scared of Lindi; I’m scared of all the women sitting up there. They’re powerful at DTI. I’m committed to supporting women in business because I know that South Africa has to have such a programme if we’re going to have an economy that provides a better life for all.
Let me also just urge you, colleagues - we gave you a small pack of material - to look at it. There’s a lot of interesting material in that. I’m very proud of the DTI publishing programme. This is a youngster. He’s a poet in his own right. Under the new Deputy Director-General of Marketing, Manana Moroko, we are beginning to publish interesting and important documentation. I would urge you to read it.
I would urge you, as I said before, to use the information centre. I think it’s wrong and would be very bad and remiss of you not to use that centre, because you’ve got to go and advise your constituencies. How can you do it if you don’t have the information? I think it’s crucial.
I just want you to look at those displays out there. I get so excited. This is fantastic stuff you’re seeing out there. These are all new enterprises that are starting out. Look how sophisticated they are. Thabo, you spoke a little bit about it, but look at that goat meat out there. Let’s call it “kid meat”, or whatever you want to call it, but it’s fantastic. This is a whole new industry we’re starting.
If you look at the natural silk that I talked about before, it’s a whole new industry. Go and look at KZN’s exhibit, look right at the bottom - I’m not sure why they put it there - but there’s umuthi (medicine) and nice things packaged and checked with the University of Natal. Now, to think this economy’s not exciting! It’s exciting. Things are really happening out there.
My thanks to the marketing team under Manana Moroko. And thanks to the provinces for putting up this display because what we’re starting to show the world is that this is what South Africa can do.
Finally, once again, comrades, I am privileged and honoured to be a Minister in charge of a department the majority of whose staff, no matter their race or creed - and we’re very representative - or sex, are young people. And these young people are as professional as anyone else in the world. That’s what gives me excitement, hope and pride about this great country. Thank you, Madam Chair. [Applause.]
The CHAIRPERSON OF COMMITTEES: Hon Minister and Deputy Minister, may I take this opportunity, on behalf of this House - I think my colleagues will agree with me - to add to their words by saying: When you empower a woman, you empower the nation; when you empower the youth, you empower the future; when you empower this House, you empower nine provinces, including the local government sphere. Therefore we want to thank you very much.
I was very excited when I saw the stall of Gauteng outside. I became very inspired and said: If we can produce this in Gauteng, we can do it as a country. Thank you very much, once more. [Applause.]
Debate concluded.
THE RIGHT OF CHILDREN TO BE PROTECTED FROM MALTREATMENT, NEGLECT, ABUSE AND DEGRADATION
(Subject for Discussion)
Ms M P THEMBA: Make Sihlalo lohlon, malunga eMkhandlu weTifundza, kuyinjabulo kimi kutsi ngitfole lelitfuba … [Kuhlaba lulwimi.] [Madam Chairperson, hon members of the NCOP, it is a pleasure for me to have this opportunity … [Interjections.]]
The CHAIRPERSON OF COMMITTEES: Order! Hon members, can we give the hon member a chance. Hon member Botha, can we give the hon member a chance, please.
Nkst M P THEMBA: Sihlalo, laba lababanga umsindvo ngulaba labangabanakekeli bantfwana ngobe kube bayabanakekela bantfwana ngabe banginiketa tindlebe. [Kuhlaba lulwimi.] Kubalulekile kakhulu kutsi imiphakatsi lesihlala kuyo yati kutsi uMtsetfosisekelo ugunyata kuvikeleka ekuhlukunyetweni kwebantfwana nekunganakekelwa kanye nekugagadlelwa.
Sikhuluma ngebantfwana, ngetimbali lesitiletse lapha kulomhlaba lekufanele sitinisele ngemanti, siteluse. (Translation of Siswati paragraphs follows.)
[Ms M P THEMBA: Chairperson, those that are making noise are the people who do not care about children, because if they were concerned about children they would be lending me an ear. [Interjections.] It is very important that the communities amongst whom we live know very well that the Constitution authorises the protection of children against abuse and sexual molestation.
We are talking about children here, flowers that we brought to this world, whom we should nurture and care for.]
The Constitution is also very specific on how we should protect our children. It states in unambiguous terms, in section 28, that children have the right to a name and a nationality from birth; to family care or parental care, or to appropriate alternative care when removed from the family environment; to basic nutrition, shelter, basic health care services and social services; to be protected from maltreatment, neglect, abuse or degradation; to be protected from exploitative labour practices; not to be required or permitted to perform work or provide services that are inappropriate for a person of that child’s age; or place at risk the child’s wellbeing, education, physical or mental health or spiritual, moral or social development.
It is therefore incumbent upon every single one of us in this Chamber, in our communities and in the world at large, to expose the exploitation of children, bring to light those desperately in need and protect those who are vulnerable to mental, physical and emotional abuse. We have tried, as constituency-based representatives of the people, to fill in with details the policies outlined in our Constitution through the passage of transformative legislation, keeping in mind the paramount importance of the interests of children.
We need only to look at the White Paper on Social Welfare, which takes cognisance of the fact that the wellbeing of children depends on a nurturing and secure family environment that can ensure their safety, survival, development and protection. The White Paper encapsulates the need for children to have families and a supportive environment in which limits on behaviour can be set, and the physical and spiritual environment is conducive to children’s development so that they can flourish and reach their maximum potential, as is their right.
Children’s rights are, therefore, protected in specific ways through many pieces of South African legislation across various departments, and by virtue of our ratification of various international instruments such as the African Charter on the Rights and Welfare of the Child, the United Nations Convention on the Rights of the Child, the Convention Concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, etc. The list is endless. I hope that we have all these things in our constituency offices.
Through our own continuous analysis of the status of our children, we have recognised that there is widespread poverty among families, and, therefore, by implication, our children are impoverished as well. An estimated 11 million children younger than eighteen years were living in poverty last year, according to a study by the Children’s Institute of the University of Cape Town. The university contended that poverty, child abuse and violence, and HIV/Aids were the major challenges facing children in South Africa.
We have recognised too that fundamental to our children’s development is their need for food. The Human Rights Commission, in its 4th Economic and Social Rights Report, outlines this need in the following way:
Food for human beings is like fuel is to cars. It is needed for human survival. It gives strength to move, the ability to think, warms the body and above all, keeps the body system working. Malnutrition on the other hand, affects people for life by causing underdevelopment of brain cells, growth retardation and susceptibility to infectious diseases.
The most encouraging aspect about our Government’s response with regard to the protection of the rights of children is that it is never static. It constantly evolves and improves as we are confronted with each new challenge that the reality of living throws at us.
In his recent Budget Speech, the Minister of Finance underscored the recognition of this need to improve the conditions in which children live by announcing that the programme of child support grants will be expanded. Children from seven to eight years old will be included in the grant system from April this year; nine- and ten-year-olds will be accommodated next year, and eleven and twelve-year-olds will be accommodated in 2005.
The Department of Social Development, apart from issuing the child support grants to alleviate poverty, is developing a computerised child protection register to fight child abuse and neglect, along with improvements in the SAPS crime administration system, to enable four departments to check children and assist in the monitoring of their cases. We could go on and on listing the various programmes. We are deeply aware that despite our legislative framework giving protection to children in their homes, they are still vulnerable to external factors, such as gangsterism.
Ngiyetsemba sitawubambisana sibomake nabobabe ekunakekelweni kwebantfwana, singayekeleli kubomake kuphela kube ngabo lebema embili. Ngiyetsemba kutsi nabobabe kufanele behambe embili ekubambisaneni nabomake. Ngiyabonga. [Tandla.] (Translation of Siswati paragraph follows.)
[I hope that there will be co-operation between mothers and fathers regarding the issue of caring for and protecting our children. We should not just leave everything to the mothers in this regard. I believe that fathers should also take their place alongside and work hand in hand with mothers. I thank you. [Applause.]]
Mrs A M VERSFELD: Thank you, Chairperson. Chairperson, serious efforts are needed to redress the relative lack of child-specific data on the betterment of children in the course of development in general. If we seek to improve the wellbeing of children by implementing the most effective policies and services, we need to develop appropriate measures to monitor the state of children.
The Government ratified the United Nations Convention on the Rights of the Child in 1995, and children’s rights are entrenched in the South African Constitution. This is most welcome.
Although the United Nations Convention on the Rights of the Child stipulates the reporting structures and obligations of nations to the United Nations committee, thus far the information contained in the first follow-up report to the United Nations lacked reliable data. The monitoring and evaluation of the above-mentioned should be based on well-defined indicators of what civil society and Government perceive to be important.
The DA is very thankful for the increases in child-support, foster care and care-dependent grants, and takes note that more than 1,4 million children under the age of six received social grants, and over 2,2 million children in September 2002. However, we are very concerned about the insufficient subsidies for welfare organisations. The DA also recognises the most fundamental right of the child, namely the right to life and good health. Therefore we cannot understand why the Government is still reluctant to give antiretroviral treatment to pregnant mothers infected with Aids. [Interjections.]
The incidence of child abuse and violence is on the increase and the SAPS Child Protection Unit is totally, totally underfunded, and the lack of manpower and resources is having a negative effect on the prosecution of perpetrators.
Wat vir my baie ontstellend is en wat daagliks voorkom, is die vernedering van ons skoolgaande kinders wanneer teen hulle gediskrimineer word oor wat hulle ouers gedoen het of versuim het om te doen, soos in die geval van as hulle nie die skoolgeld betaal nie. Die kinders word dikwels gestraf deur nie rapporte aan hulle uit te reik nie, of hulle word voor hulle klasmaats verneder deur te sê dat hulle ouers geld skuld. Ek glo ook daar sal ons as ouers moet optree teen skole wat dit wel doen. (Translation of Afrikaans paragraph follows.)
[What is very upsetting to me and occurs on a daily basis is the humiliation of our school-going children when they are being discriminated against because of what their parents have done or neglected to do, as in the case of their not paying school fees. The children are often punished by not issuing their reports to them or they are humiliated in front of their classmates by saying that their parents owe money. I also believe that in such cases we, as parents, will have to take action against those schools that are indeed doing it.]
Finally, the DA appreciates that not only Government is responsible for the welfare of our children. All of us should strive to give our children the best opportunities, because our children are our investment in the future. I thank you. [Applause.]
Mnr F ADAMS: Voorsitter, kindertyd is ‘n kleinood en ‘n reg. Jong mense wat in armoede leef, word daagliks deur kragte aangeval wat alle onskuld en plesier van hulle wegruk. Dwelms, siektes, geweld, haweloosheid, verkragtings en stelsels wat hulle en hulle families keer op keer in die steek laat, het permanente en ernstige nagevolge, nie net vir arm kinders en die mense wat vir hulle omgee nie, maar vir al ons gemeenskappe en hierdie land.
Kinders ly die meeste en ook die ernstigste as gevolg van elke euwel wat elke individu bedreig. Kindermishandeling bly steeds ‘n belangrike openbare kwessie. Dit is ‘n nasionale en wêreldwye probleem. Dit het ‘n invloed op kinders in elke gemeenskap.
Voorsitter, dit is tragies, maar geen kind word vrygeskeld van mishandeling nie, soos ons sien in ‘n berig in vanoggend se Die Burger: “Elf miljoen kinders in Suid-Afrika leef in armoede.”
Voorsitter, een kind wat mishandel word, is een te veel. Die NNP glo dat kindermishandeling- en verwaarlosing in alle segmente van ons samelewing voorkom, maar die risikofaktore is groter in families en gemeenskappe waar ouers alkohol en dwelms misbruik, geïsoleer is van hul families en gemeenskappe, probleme het om hul woede of stres te beheer, nie belangstel in die kernkoestering of veiligheid van hul kinders nie.
Ons het almal ‘n rol om te speel om sterker gemeenskappe te bou waarin families en kinders gewaardeer en ondersteun word. Dit is in hierdie tipe gemeenskappe waar kinders die veiligste is teen mishandeling en verwaarlosing. Ons moet uitreik na kinders en ouers in ons gemeenskappe. Ons moet gemeenskapkoalisies begin om kindermishandeling- en verwaarlosing te voorkom. Rapporteer gevalle waar mishandeling of verwaarlosing vermoed word.
Ons as lede van die Parlement moet ons kiesers aanmoedig om gevalle waar mishandeling of verwaarlosing vermoed word of waar dit voorkom aan te meld. Ons moet aanhou om dit aan te meld totdat iets gedoen word. Ons moet ‘n ondersteuningsnetwerk bou deur betrokke te raak by ons gemeenskappe.
Voorkomende maatreëls moet op familiesterkte gebou word. Deur voorkomende aktiwiteite in ons gemeenskappe wat gedryf word deur gemeenskapsgebaseerde organisasies, geloofgebaseerde organisasies en vrywilligers, sal baie families die ondersteuning kry wat hulle nodig het om bymekaar te bly en in hulle huise en gemeenskappe vir hulle kinders te sorg.
Voorkomende optrede help ouers om hulle ouervaardighede te ontwikkel, die voordele van nie-gewelddadige dissiplinetegnieke te verstaan en hulle kind se emosionele, fisieke en ander ontwikkelingsbehoeftes te verstaan en daarin te voorsien. Voorkomingsprogramme kan ook ouers en kinders help om ander behoeftes te identifiseer wat hulle mag hê en hulp aan te bied om daardie addisionele ondersteuning te kry. Potensiële belanghebbendes in voorkomingspogings sluit opvoeders, wetstoepassingsbeamptes, gesondheid- en maatskaplike ontwikkelingswerkers, alle staatsdepartemente, gemeenskapsleiers, godsdiensleiers, ouers, parlementslede, raadslede en besigheidsleiers in. Deur gemeenskapsondersteuning te mobiliseer kan gehelp word om te bou aan ‘n algemene bewustheid en besorgdheid om formele voorkomingsprogramme te ontwikkel wat daarop gemik is om kinders veilig en families sterk te maak.
Die Nuwe Nasionale Party sien in hierdie pynlike realiteite ‘n oproep om tot aksie oor te gaan namens hierdie land se mees kwesbare, mees stemlose, mees waardevolle inwoners. Dit is waarom die Nuwe Nasionale Party glo dat aktiewe deelname deur die gemeenskap ‘n sleutel is tot die sukses van enige voorkoming. Vrede in die gemeenskap hang af van vrede in die familie. Laat elkeen hier en elkeen wat na die debat luister of kyk nou ‘n besluit neem om ‘n voorbeeld te stel, Voorsitter. Ek dank u. [Applous.] (Translation of Afrikaans speech follows.)
[Mr F ADAMS: Chairperson, childhood is a gem and a right. Every day young people who live in poverty are under attack from forces that snatch all innocence and pleasure away from them. Drugs, illnesses, violence, homelessness, rape and systems which repeatedly fail them and their families, have permanent and serious consequences, not only for indigent children and those who care for them, but for all our communities and this country.
Children suffer the most, and more severely, as a result of every ill which is a menace to every individual. Child abuse still remains an important public matter. It is a national and world-wide problem. It affects children in every community.
Chairperson, it is tragic, but no child is exempted from abuse, as we have seen in an article in Die Burger this morning: ``Elf miljoen kinders in Suid-Afrika leef in armoede.’’ Chairperson, one abused child is one too many. The New NP believes that child abuse and neglect happen in all walks of life in our society, but the risk factors are even greater in families and communities where parents abuse alcohol and drugs, are isolated from their families and communities, have difficulties to control anger and stress, and show no interest in the core nurturing or safety of their children.
We all have a role to play in building stronger communities where families and children are valued and supported. It is in this kind of community where children are the most secure against abuse and neglect. We should reach out to children and parents in our communities. We should establish coalitions in our communities to prevent child abuse and neglect. Report suspected cases of abuse or neglect.
We as members of Parliament should encourage our voters to report cases where abuse or neglect is suspected or where it occurs. We should report it continually until such time as something is done. We should build a support network by getting involved in our communities.
Preventative measures should be based on the strength of the family. Through preventative activities in our communities - spearheaded by community-based organisations, religious-based organisations and volunteers
- many families will get the support that they need to stay together and provide for their children in their homes and communities.
Preventative action helps parents to develop their parenting skills, understand the advantages of non-violent techniques of discipline, and to understand and provide for their child’s emotional, physical and other developmental needs. Preventative programmes can also help parents and children to identify other needs they might have, and offer assistance to get that additional support. Potential parties who are interested in preventative efforts include educators, law enforcement officials, health and social development workers, all state departments, community leaders, religious leaders, parents, members of Parliament, council members and business leaders. Mobilising the support of the community can help to build a general awareness and concern for developing formal preventative programmes which are aimed at keeping children safe and strengthening families. In these painful realities the New NP perceives a call for action on behalf of the most vulnerable, most voiceless, most valued citizens of this country. This is why the New NP believes that active participation by communities is a key to the success of any prevention.
Peace in the community depends on peace in the home. Let everyone here, and everyone listening to or watching the debate, decide to set an example at once, Chairperson. I thank you. [Applause.]]
Nkk J N VILAKAZI: Sihlalo ohloniphekileyo neNdlu yonke, isihloko esisidingidayo namhlanje futhi esibaluleke ngendlela eyisimanga kumuntu nomuntu emphakathini jikelele nasezweni lonke sithi: ilungelo lokuvikela abantwana bakhuseleke ekuhlukunyezweni, ukunganakekelwa nokwehliswa isithunzi. Umntwana uyimbali yesizwe. Umntwana uyisithombo esikhuluyo esidinga ukunakekelwa kahle ukuze sithele kahle. Umntwana uzalwa emsulwa engqondweni nasemzimbeni, engazi lutho oluhle nolubi. Baye bathi abanye ingqondo yakhe isuke iyi-tabula rasa. Umzali uyamkhulisa, amondle futhi amnakekele ukuze lapho esemdala alingise umzali wakhe.
Uma ekhule kahle wabukela konke ukwenza, wayalwa, wafundiswa, wezwa,
ekugcineni uyaye athi umzali, Halala! Ukuzala ukuzelula amathambo''.
Umphakathi uthi wona,Uyadela umfazi owazalayo.’’ Kodwa, uma kungahambi
kahle umzali uyaye adumale angaphatheki kahle. Angiphathi-ke khona uma
ingane iyihlongandlebe kuthiwa, ``Akazalanga lo mama wabola amathumbu.’’
Nakhu okufanele sikuqikelele njengabazali. Okokuqala, ukutshala uthando ukuze umntwana abe nothando. Okwesibili, ukunakekela ngokudla, izembatho, nekhaya elifudumele yikhona naye ezokhula enze njalo emndenini wakhe. Ukusizana okunhlobonhlobo, uthando omunye nomunye, ukuhlonipha abanye abantu nokunye nokunye yikhona okunomphumela omuhle kumntwana okhulayo.
Namhlanje sikhala ngobugebengu obunhlobonhlobo obuvela ikakhulu kulabo abangakhulanga kahle. Abanye beswela ukunakekelwa, ukufunda, amakhaya kanti abanye bahlukumezeka emakhaya baqoma ukuyohlala ezitaladini futhi bagcina sebebizwa ngama-street children futhi abanye bajoyina ebugebengwini kanjalo kanjalo. (Translation of isiZulu paragraphs follows.)
[Mrs J N VILAKAZI: Hon Chairperson and the House at large, the subject being discussed today is very important to individuals throughout society and the whole country. It is about the right of children to be protected from abuse, neglect and dehumanisation. Children are the flowers of the nation, they are budding plants which need nurturing so that they can flourish properly. At birth babies are pure in mind and body, they have no idea of good or bad. Some people describe that mind as tabula rasa. The parent nurtures and feeds the child so that it can be like her when it grows up.
If the child has grown up accordingly, observed the right conduct, took
good advice, learned the correct things and listened to elders, the parent
says: Hurrah! It pays to have a child.'' The community says: Happy are
the women who bear children.’’ However, if things do not go the right way,
the parent feels disappointed and upset. It is even worse when the child is
mischievous, and people say: ``This woman did not give birth, she had her
womb contaminated’’.
As parents, this is what we must observe. Firstly, we must plant the seed of love in the children so that they also acquire love. Secondly, we must provide food, clothing, and a warm home so that the child can learn to do the same for his family once he becomes an adult. Assisting one another in different ways, loving one another and respecting other people are the actions which yield good results in a child as he grows up.
Today we complain about different kinds of crimes committed mostly by those children who did not have a proper upbringing. Some did not receive proper care, education and homes, while others were abused at home and eventually decided to become street children, some of whom were introduced to crime and other bad things.]
If we talk about the rights of children and their protection from abuse, maltreatment, neglect and degradation, the issue of street children is still a sore to the eye because they are exposed daily to this cluster of problems which needs to be addressed as a priority, especially here, where we are, in the city of Cape Town.
Isihloko sanamuhla siyinselelo kuthina sonke bazali. Asibe neso elibukhali lapho sihlezi khona. UHulumeni akakwazi ukuzibonela okwenzekayo ezindaweni zonke. Yithina okufanele simazise uma kukhona okungahambi kahle futhi kudinga isandla somthetho.
Eshowe, KwaZulu-Natali, kula masonto edlulile unina ujikijele ingane yakhe elolini enkulu ihamba yafa khona lapho. Unina wengane ubengaphilile kahle engqondweni kodwa ehlala nengane encane ebihlukumezeka usuku nosuku - bebuka njalo abantu.
Kukhona izingane ezingayi esikoleni umzali enawo amandla okuzifundisa umphakathi usabe ukuyobika lokho eminyangweni efanele. Abanye abazali banolaka abalukhiphela ezinganeni ngesibhaxu. Leyo ngane izokhula ibe ngumhlukumezi osatshwayo endaweni.
Abantwana bethu badinga ukunakekelwa nokuvikelwa. Bayizimpiko zethu zokundiza, bayikusasa lethu, ngakho kufanele sibakhulise ngendlela efaneleyo.
IPHINI LIKASIHLALO WAMAKOMIDI: Isikhathi sakho sesiphelile.
Nkk J N VILAKAZI: Ngiyabonga yize noma ngingasaqedanga kahle. [Ihlombe.] (Translation of isiZulu paragraphs follows.) [Today’s topic is a challenge to all of us as parents. We must be alert where we are. The Government cannot see what happens everywhere. We are the ones who should inform it when we see things that are not right, and about those things that require the attention of the legal system.
In Eshowe, KwaZulu-Natal, in the past few weeks a mother threw her baby in front of a moving lorry and it died on the spot. This mother was not mentally sound, but she was staying with a small baby day by day, and people were just watching.
There are children whose parents have the capacity to send them to school, yet those children are not attending school. Community members are not bold enough to go and report such things to the relevant government departments. Some parents have a violent temper and they take their anger out on the children. Such a child will grow up into a feared abuser in that area.
Our children need care and protection. They are the wings for us to fly with. They are our future and that is why we have to bring them up properly.
The DEPUTY CHAIRPERSON OF COMMITTEES: Your time has expired.
Mrs J N VILAKAZI: Thank you, although I could not finish properly. [Applause.]]
Nksz N C KONDLO: Sihlalo, ndiza kumgqibezelela umam’ uVilakazi. Sihlalo, malungu abekekileyo ale Ndlu, le ngxoxo iqhubeka ntsuku-ntathu phambi kokuba sifike kuSuku lweHlabathi laBantwana, umhla wokuqala kweyeSilimela kulo sikuwo unyaka. Sikwiveki yeenkqubo ezijongene nokhuseleko lwabantwana (child protection week).
Ngenxa yeemeko zokuhlala ezizalwa yimeko yocalucalulo esisuka kuyo, abantwana beli lizwe basenezivubeko, kwaye basengamaxhoba empatho-mbi yoluntu jikelele eMzantsi Afrika. Uninzi lwabantwana beli lizwe bahlala, kwaye bakhula phantsi kwemeko yentlupheko. Ikomiti ebe iphanda nzulu ngenkqubo yokhuseleko (the Comprehensive Social Security Committee) iveze into yokuba izigidi ezili-11 zabantwana baseMzantsi Afrika, ukususela kozalwayo ukuya koneminyaka elishumi elinesibhozo, baphila ngaphantsi kwesixa-mali esingama-200 eerandi. Omnye kwabathathu abantwana abahlala ezifama uyasebenza. Iimeko abasebenza phantsi kwazo zinobungozi. Bambi abahlawulwa nangaloo msebenzi bawenzayo kakade. Bamalunga namawaka angama- 840 abantwana abaziinkedama ngenxa yesifo uGawulayo, kwaye uninzi lwezi nkedama aluxhamli nakweziphi na iinkqubo zikaRhulumente ezijongene nokuhlangabezana nale ngxaki.
Le nto isixelela ukuba uninzi lwezi nkedama luzifumana lunoxanduva lokuba ngabazali lona ngokwalo. Isithathu ekhulwini samakhaya angasenabazali ngenxa yeSifo uGawulayo nentsholongwane yaso siphethwe ngabantwana. La manani asibonisa mhlophe ukuba sele ingxamele ukuba sisiqhelo ukuba amakhaya ajongwe ngabantwana ngenxa yeSifo uGawulayo.
Ngenxa yokuba abantwana kufanele benze imisebenzi yobuntu obudala ukujongana neemfuno zekhaya, baphulukana nobuntwana babo, ibenze ke loo nto babe ngamaxhoba okuxhatshazwa ngesondo, kananjalo baxhatshazwe ngamandla abo. Bambi baba ngamaxhoba obundlobongela, njengoko sizibonile iingxelo zaseNtshona Koloni, apho abantwana bachatshazelwe ligazi bengenatyala. Bathathu kwisihlanu abantwana abaxhatshazwa ngokwesondo eMzantsi Afrika. Bambi basezintolongweni.
Oku kubonisa mhlophe umceli-ngeni esijongene nawo siluluntu, singuRhulumente, singamalungu amele abantu. URhulumente we-ANC uyenzile imithetho ejongene nokuqinisekisa ukuba abantwana baxhamla amalungelo abo njengoko uMgaqo-siseko weli lizwe usitsho xa sisiya phaya kwiSahluko sesi-2, kulaa ntloko yama-28 ethi, “AmaLungelo aBantwana”.
Ukunyuswa kweminyaka yabantwana abafumana izibonelelo zenkamnkam [child support grant] ukusuka kwiminyaka esixhenxe ukuya kwelishumi elinesine, ngokwezigaba, yenye yezinto ezibonakalisa iinkqubo zikaRhulumente ezijongene namalungelo abantwana. Sithetha nje, zizigidi ezi-2,5 zabantwana abafumana izibonelelo zenkamnkam. Mhlawumbi eli nani sele landile kuba la manani akhutshwe nokuphela konyaka-mali, ekupheleni kukaMatshi. Ngabantwana abayileyo phaya kuma-570 abaxhamla kwinkqubo yonakekelo kuba bengamaxhoba eSifo uGawulayo neNtsholongwane yaso. Lingatshona, Sihlalo, liphinde liphume ilanga, xa sinokubala yonke imigaqo-nkqubo esekwe nguRhulumente ukuzama ukuhlangabezana namalungelo abantwana.
Kambe ndifuna ukulungisa into encinci, eye ithande ukuvela kubantu abathanda ukwenza okugwenxa. Ukunyuka kwamanani angeengxelo zabantwana abaxhatshazwayo akubonakalisi kunyuka kwezi zenzo, koko kubonakalisa ukunyuka kweqondo lokuchazwa kwezenzo zoxhaphazo, zodlwengulo nazo zonke ezinye iindlela zokuthotywa kwesidima sabantwana kwabasemagunyeni. Ke, masingabi nempazamo yokucinga ukuba la manani anyuka ngenxa yobukho borhulumente wedemokhrasi esiphila phantsi kwakhe. (Translation of isiXhosa paragraphs follows.)
[Ms N C KONDLO: Chair, I am going to finish for Mother Vilakazi. Chair, hon members of this House, this debate is taking place three days before we get to the World Children’s Day, on 1 June this year. We are in Child Protection Week.
Because of the conditions we live in that arise from the discriminatory conditions that we come from, the children of this country are still traumatised and are still victims of abuse by people in general in South Africa. The majority of children in this country live and are growing up in conditions of hardship. The Comprehensive Social Security Committee revealed that 11 million South African children, from birth up to 18 years of age, live on less than R200. One in every three farm children is employed. Their conditions of employment are hazardous. Some are not even remunerated for the work they do. There are about 840 000 children orphaned by Aids and the majority of these orphans don’t even enjoy benefits in any one of Government’s programmes intended to combat this problem.
This tells us that most of these orphans find themselves having the responsibility of being parents. Three percent of homes which no longer have parents because of HIV and Aids are child-headed ones. These figures clearly tell us that child-headed homes, because of Aids, are rapidly becoming the norm.
Because of the fact that children have to do work that is normally done by adults, they lose their childhood, which exposes them to being victims of sexual abuse and abuse in terms of their labour. Others become victims of violence, as we have seen in reports of the Western Cape, where innocent children were affected. Three out of every ten children are sexually abused in South Africa. Some are in prison.
This clearly shows us the challenge we are facing as a community, as Government and as representatives of the people. The ANC Government has made laws that ensure that children enjoy their rights, as stated in Chapter 2, section 28, “Children’s Rights” in the Constitution of this country.
Raising the age limit of children who receive the child support grant from age 7 to age 14 in phases is one of the things that illustrate Government’s programmes that cater for children. As we speak 2,5 million children receive the child support grant. This number may have increased because these statistics were given in March, at the end of the financial year. Approximately 570 children are in the child care programme because they are victims of HIV and Aids. We can count until sunset and again at sunrise all the policies put in place by Government in order to cater for the rights of children.
However, I want to correct something minor that is inclined to manifest itself in people who like doing things that are wrong. The increase in the child abuse statistics is not an indication of a rise in these acts, but it indicates a rise in the rate at which the authorities are exposing incidents of abuse, rape and all other manners of lowering the dignity of children. So let us not be mistaken by thinking that these statistics are increasing, because there is a democratic Government under which we are living.] It is only the reporting that has increased, precisely because of the opportunities created by the democratic Government led by the ANC.
Xa ndiza kuhlala phantsi, okokuqala ndifuna ukuhlaba ikhwelo kweliya Sebe lezoPhuhliso loLuntu, lokuba lizame ukuqukumbela laa Mthetho uSayilwayo ujongene nabantwana (the integrated child care Bill), onjongo zawo zikukudibanisa yonke imithetho ethe saa kumasebe ngamasebe anjongo ikukulungisa nokujongana neengxaki zabantwana, ukuze sibe nomthetho omnye, ophantsi kwesebe elinye.
Okwesibini, linga eliya Sebe lezoBulungisa lingaqinisa apha ekuvuleni iinkundla zamatyala ezijongene ngqo nokuxoxa amatyala anjongo zikukulungiselela nokubonelela abantwana abaxhatshazwayo.
Kwakhona, ndifuna ukushiya la mazwi athethwe ngabantwana malunga namava abo ngendlala. Uthi umntwana ophuma phaya KwaZulu-Natal, kweyona ndawo ithwaxwa yindlala, eMsinga, xa ethetha ngamava akhe ngendlala, ndimcaphule:
It is very hard to go to someone else and ask: ``Please, can you give me some mielie meal?’’ The hunger hurts, but you have another pain, inside, of having to ask for food.
Owesibini umntwana, xa ndimcaphula, uthi malunga namava akhe okuba yinkedama emva kokushiywa ngumzali wakhe ngenxa yeSifo uGawulayo neNtsholongwane yaso:
My mother was very sick when she died. I’ve been worried since my mother died. I do not cry anymore. But I find it difficult to sleep at night.
Ngamava lawo abantwana baseMzantsi Afrika esijongene nabo. Uxanduva lwethu ke ngoko singamalungu ale Ndlu, singabantu abamele abantu, kukuba siqinisekise ukuba abantwana bayazixhamla zonke iinkqubo zikaRhulumente ezijongene namalungelo abo. Ndiyabulela. [Kwaqhwatywa.] (Translation of isiXhosa paragraphs follows.)
[As I am about to sit down, I firstly want to call on the Department of Social Services to try and wind up the Bill that makes provision for children, ie the Integrated Child Card Bill, which intends to co-ordinate all the laws that are scattered in various departments and which aim to address and cater for the problems of children so that we have one law under one department.
Secondly, my wish is that the Department of Justice strengthens its efforts to introduce courts of law specifically meant to hear cases that aim to address the plight of abused children and provide for them. I also want to use these words which were uttered by children about their experience of hunger. A child from eMsinga in KwaZulu-Natal, an area most struck by hunger, said, and I quote:
It is very hard to go to someone else and ask: “Please, can you give me some mealie meal?” The hunger hurts, but you have another pain inside, of having to ask for food.
A second child said, and I qoute what she said about her experience of being an orphan after her parents had passed away due to HIV and Aids:
My mother was very sick when she died. I’ve been worried since my mother died. I do not cry anymore. But I find it difficult to sleep at night.
Those are the experiences of the children of South Africa that we are facing. As members of this House and as representatives of the people, our responsibility therefore, is to ensure that children take advantage of all the Government programmes that relate to their rights. Thank you. [Applause.]]
Debate concluded.
Council adjourned at 18:55.