National Assembly - 02 November 2006
THURSDAY, 2 NOVEMBER 2006 __
PROCEEDINGS OF THE NATIONAL ASSEMBLY
____
The House met at 14:03.
The Speaker took the Chair and requested members to observe a moment of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.
NOTICES OF MOTION
Mr M RAMGOBIN: Thank you, Madam Chair. I shall move at the next sitting day of the House:
That the House debate the significance of the challenges in relation to the impending changes in the leadership of the United Nations Organisation and South Africa’s election to the Security Council, as it is of historical significance to the contribution we can make as a country toward peaceful co-existence and the developmental agenda of the developing world.
Mnr S E OPPERMAN: Speaker, ek gee hiermee kennis dat ek van voorneme is om die volgende voorstel te doen:
Dat die Raad die volgende onderwerp bespreek: Bruinmense - identiteit en identifisering. (Translation of Afrikaans notice of motion follows.)
[Mr S E OPPERMAN: Speaker, I give notice that I shall move the following motion:
That the House discuss the following subject: Brown people – identity and identification.
Mrs L E YENGENI: Thank you, Madam Chair. I give notice that I shall move:
That this House debate the following subject: Given the importance of the local sphere of government, a review of the progress the nation has made with the building of the necessary institutions and capacity, resource allocation, promotion of participatory democracy and the resultant impact on the quality of life of South Africans.
Mrs C DUDLEY: Thank you, Madam Speaker. I give notice that I shall move on behalf of the ACDP:
That the House debate the escalation of violence in schools, the reasons and the response by government and stakeholders.
Ms H WEBER: Thank you, Madam Speaker. I hereby give notice that I shall move:
That the House –
1) congratulates the South African Autism Association on winning the
bid to host the International Autism Association Conference; and
2) considers what steps should be taken in treating autism and
accommodating autistic children in the education system.
OLIVER REGINALD TAMBO’S BIRTHDAY
(Member’s Statement)
Mr E MTSHALI (ANC): Madam Speaker, while Oliver Reginald Tambo lived, there were many who did not understand the unwavering humanism of the cause to which he dedicated his whole life. They were blind to what he did to ensure that his movement, the ANC, and his people remained forever loyal to their humanist calling.
A week ago, our people and our country gathered at what used to be known as the Johannesburg International Airport to witness the name changing to Oliver Reginald Tambo International Airport. They gathered to celebrate his birthday and pay tribute to a rare human being, and to recite a humble prayer of thanks that even as it battled to extricate itself from centuries of conflicts and a seemingly intractable crisis our nation produced a son, Oliver Tambo, on whom it could in the end and without hesitation bestow the title, the liberator.
In challenging times such as these, the ANC believes that we should search the annals of all human wisdom through all time, to discover the lodestar that would guide us on our way as we strive to do what no others in our country have ever done before. I thank you. [Applause.]
NO INCREASE IN SECOND DEFINED BENEFIT FUND
(Member’s Statement)
Mnr K J MINNIE (DA): Agb Speaker, die agb Minister van Openbare Ondernemings het onlangs erken dat die ANC-regering nie beplan om fondse wat deur die Transnet Tweede Vastevoordeelfonds, wat na bewering as gevolg van ’n geknoeide aandeleruiling in 2001 verloor is, terug te betaal nie. Minister Erwin bly dit miskyk dat die fonds verswak is as ’n direkte gevolg van dié gewraakte ruiltransaksie. Gevolglik, het die 100 000 lede van die Tweede Vastevoordeelfonds, waarvan baie se inkomste reeds laag was, oor die laaste vyf jaar geen verhogings bo die statutêre 2% waarvoor daar in die Transnetpensioenwet voorsiening gemaak is, ontvang nie. Dit terwyl ander staatspensioenfondse jaarliks tot 8% verhoging kry. (Translation of Afrikaans paragraph follows.)
[Mr K J MINNIE (DA): Hon Speaker, the hon Minister of Public Enterprises has recently admitted that the ANC government does not intend to pay back the funds which were lost by the Transnet Second Defined Benefit Fund, allegedly as a result of a botched share exchange in 2001. Minister Erwin continues to ignore the fact that the fund was weakened as a direct result of this objectionable swap transaction. Consequently, the 100 000 members of the Second Defined Benefit Fund, many of whom already had a low income, did not receive any increases above the statutory 2% for which provision is made in the Transnet Pension Act in the past five years. This while other state pension funds receive an up to 8% increase annually.]
Government, as the underwriter of the Second Defined Benefit Fund, has a moral and ethical obligation to ensure that the income levels of the pensioners are restored to real pre-2001 levels and that the pensioners are reimbursed for the shortfall that has developed since 2001. I thank you. [Applause.]
PLANS TO BUILD LEGISLATIVE COMPLEX IN PIETERMARITZBURG
(Member’s Statement)
Mr M B SKOSANA (IFP): Madam Speaker, the recent decision by the cabinet of KwaZulu-Natal to approve plans to build a new legislative complex in Pietermaritzburg at a cost of R280 million flies in the face of the very principles of distributive economic justice projected in the Minister of Finance’s Medium-Term Budget Policy Statement of October 2006.
The decision also contradicts the protocols on rural development announced by President Mbeki in May 2004. The decision, which is pro-rural poverty and underdevelopment, further weakens and delegitimises public safety as it will in reality impoverish further the rural population while it resurrects the colonial relics and buffer zones, disallowing the necessary integration and development of the first and second economies.
It is also political bigotry and a gross distortion of historical facts to keep associating Ulundi with apartheid, particularly at the time when a significant portion of the provincial and national public service is currently residing in and operating from predemocracy buildings and structures.
A government development plan that expediently concentrates the resources of the nation around the already developed centres does so at the expense of the underdeveloped periphery and therefore sharpens the urban rural disequilibrium. Thank you.
LOCAL GOVERNMENT SETA
(Member’s Statement)
Ms L M MASHIANE (ANC): Madam Speaker, the ANC congratulates the local government Seta on the good news it presented on Tuesday, 24 October 2006, to the Joint Sitting of the Portfolio Committee on Provincial and Local Government and the Select Committee on Provincial and Local Government.
The local government Seta announced its achievements for the financial year under review, 2005-06, as having achieved and exceeded its target as agreed upon with the Department of Labour, resulting in a 111% achievement and thus making the Seta the best performing one within the government’s Seta cluster 5.
The highlights of the local government Seta are: training of 3 505 community development workers; training of 13 390 learners on adult basic education and training; as well as training of 2 100 municipal technicians on the Expanded Public Works Programme in collaboration with the Department of Public Works. These achievements are indicative of a turnaround strategy, development and implementation of the local government Seta, which is poised to become the first amongst all in skills development and promoting a better life for all. I thank you. [Applause.]
IDENTITY THEFT
(Member’s Statement)
Mr G T MADIKIZA (UDM): Madam Speaker, hon members, the UDM is outraged by the continuing high levels of corruption that are prevalent in the Department of Home Affairs. The latest example of exactly how far corruption has spread was demonstrated by the investigative reporters of Special Assignment.
The widespread perpetration of identity theft is one of the central pillars in the strategy of large international and national organised crime syndicates. It is this devious subversion of the citizenship documentation managed by Home Affairs that provides these organised criminal networks with the false identities and documents they require to travel and commit their crimes, such as money laundering and even human trafficking, without fear of being caught and identified.
Identity theft and the failure of Home Affairs to deal with it is therefore a major contributor to the crime problem in this country. A few years ago a Minister, responding to a parliamentary question, avoided the question and simply stated that there was no such crime as identity theft on South Africa’s Statute Book. Meanwhile the department continues to perform dismally in the eyes of the public, the Auditor-General and anybody that cares to look.
When will the government admit that there is an overwhelming and immediate need to drastically reform the Department of Home Affairs, starting with a major clearing-out of every devious, corrupt and lazy official? I thank you.
MR MOADIRA NEW MUNICIPAL MANAGER OF MATLOSANA
(Member’s Statement)
Mnr P J GROENEWALD (VF Plus): Geagte Speaker, die munisipaliteit van Matlosana, wat die plekke Klerksdorp, Orkney, Stilfontein en Hartbeesfontein insluit, het sopas ’n nuwe munisipale bestuurder aangestel. Hulle het mnr Matsediso Moadira aangestel. Hierdie munisipale bestuurder, soos ander munisipale bestuurders, verdien ’n salaris gelykstaande aan dié van ’n nasionale Minister – selfs meer as wat die agb Minister van Finansies verdien.
Mnr Moadira was die munisipale bestuurder van die Moqhako Munisipaliteit. Hierdie munisipaliteit het mnr Moadira egter geskors weens sekere bevindinge in die Mojavu-verslag. Hierdie verslag het bevind dat mnr Moadira hom skuldig gemaak het aan die aangaan van vrugtelose uitgawes en het aanbeveel dat dissiplinêre stappe teen hom geneem word. Volgens die verslag het mnr Moadira ook afdelingshoofde aangestel met kriminele rekords sonder magtiging van die raad.
Dit gebeur toenemend dat topamptenare wanpraktyke pleeg en dissiplinêr en selfs krimineel vervolg behoort te word, maar wat dan net herontplooi word sonder enige verantwoording en aanspreeklikheid vir hul wandade. Die belastingbetaler moet egter die prys betaal deurdat onbevoegdheid swak dienslewering skep.
Die VF Plus doen ’n beroep op die agb Minister om ter wille van skoon administrasie en goeie dienslewering in te gryp en topamptenare te ontslaan weens wanpraktyke en nie net te herontplooi om die wandade op ’n ander plek te gaan pleeg nie. Ek dank u. (Translation of Afrikaans member’s statement follows.)
[Mr P J GROENEWALD (FF Plus): Hon Speaker, the Matlosana Municipality, which includes the areas of Klerksdorp, Orkney, Stilfontein and Hartbeesfontein, has just appointed a new municipal manager. They appointed Mr Matsediso Moadira. This municipal manager, like other municipal managers, earns a salary equal to that of a national Minister – even more than what the hon Minister of Finance earns.
Mr Moadira was the municipal manager of the Moqhako Municipality. However, this municipality suspended Mr Moadira as a result of certain findings by the Mojavu report. This report found that Mr Moadira was guilty of incurring unnecessary expenditures and recommended that disciplinary steps be taken against him. According to the report, Mr Moadira also appointed department heads with criminal records without authorisation from the council.
It happens increasingly that top officials are found guilty of malpractice, which should be followed by disciplinary action and even criminal prosecution, but they are just redeployed without accounting and answering for their misdemeanours. The taxpayer must, however, pay the price, because incompetence creates poor service delivery.
The FF Plus appeals to the hon Minister to intervene for the sake of a clean administration and good service delivery and to dismiss top officials because of malpractices and not just to redeploy them in order for them to engage in these malpractices elsewhere. I thank you.]
EMPOWERMENT OF WOMEN
(Member’s Statement)
Mrs X C MAKASI (ANC): Madam Speaker, the ANC-led government recognises that there is a need for consistent action to empower women, particularly rural women, with information on policies and legislation with regard to their empowerment.
We have much to celebrate in terms of our Constitution and the laws we pass in this House. However, we still face major challenges to translate these provisions of the Constitution into a living reality during our age of hope, especially in terms of the women in our society.
We have to recognise that the goal of developing our nation remains extremely constrained as long as women are not able to find their rightful space in our society. The sustainable development of this nation is not possible without the full and meaningful participation of women. The ANC urges our people in different places of work and our private homes to remain steadfastly focused on women during this period of the 16 days of activism and beyond. I thank you.
COMBATING VIOLENT CRIME AGAINST WOMEN AND CHILDREN
(Member’s Statement)
Ms M M MDLALOSE (Nadeco): Madam Speaker, looking at the levels of violent crime within our schools and in general, we as Nadeco are saying that 16 days are insufficient to combat crimes against women and children in a country such as South Africa that is caught in an age of nihilism. It is crucial for us to extend the cause of the campaign by incorporating it into our daily lives in order to see visible change.
Let us assume a meaningful role in this cause by implementing mechanisms that will contribute positively towards the wellbeing of women and children that have fallen victim to violent crimes. I thank you.
PLANS FOR ECOLOGICAL SECURITY
(Member’s Statement)
Moulana M R SAYEDALI-SHAH (DA): Madam Speaker, when we speak of defending our national security, most of us hearing this phrase think of military defence or preserving law and order. But, in an age of environmental crisis caused by global warming and climate change, the concept of national security must also change. Ecological and environmental problems can easily become a serious threat to our national security.
The DA therefore calls on government and the people of South Africa to strive for a safer and healthier environment. We also call on government to seriously implement plans for our ecological security.
If the environment is destroyed, so too are our prospects of survival and there will be little use then of talking about security when no amount of weapons, tanks or submarines will avail us. Thank you.
TRAPPED MINEWORKERS
(Member’s Statement)
Mr G LEKGETHO (ANC): Together with the working class movement of our country the ANC has created conditions that promote a democratic work environment guaranteeing a living wage, multiskilling of workers as well as a civilised working class.
The recent mine accident atTauTona goldmine near Carltonville, which claimed the lives of Abiel Kgwadi Nteko from Lesotho, Jam Arkilo Shambani and Daniel Sitwe of Mozambique, Jeremiah Songezo Dubeni of Mqanduli and Wandile Mgwenye of Mount Frere, is a grim reminder of the danger our mineworkers face on a daily basis.
The mining magnates have a duty to observe and implement safety regulations as well as emergency measures that ensure that workers are never sent into unsafe conditions underground. We welcome the efforts by AngloGold that called for a review of its entire mining strategy in the area concerned.
The ANC calls for an urgent review of shaft pillar methods used in the mining operations of our country. I thank you.
DEATH OF JOURNALIST ALF RIES
(Member’s Statement)
Mnr J H VAN DER MERWE (IVP): Agb Speaker, ek bring hulde aan die nagedagtenis van die legendariese joernalis Alf Ries, wat verlede week oorlede is. Ek rig hierdie huldeblyk eintlik aan die media, omdat Alf Ries die suksespad aangedui het wat joernaliste moet volg om hier by die Parlement suksesvol te wees.
Alf het sowat 30 jaar lank hier by die Parlement gewerk vir Die Burger. Hy was as joernalis hoogs suksesvol. Hy het talle “scoops” geskryf. Hy was die doyen van die media en hy het ’n besondere vertrouensverhouding gehad met menige parlementslede. Sy uitstaande eienskap was dat hy vertrou kon word met die grootste geheime. Die begraafplaas van joernaliste bevat menige grafte van koerantmanne wat nie hulle bekke kon hou nie.
Alf se tweede eienskap was dat hy professioneel te alle tye op die hoogte van alles was wat hier by die Parlement gebeur het. Dit het lang werksure ingehou. Alf was ’n aangename mens. Hy was nie opdringerig nie. Hy was nie grootbek nie. Hy was nie geheimsinnig nie, maar net doodgewone Alf Ries. Hedendaagse joernaliste sal self groot sukses behaal as hulle soos Alf Ries vertroue kweek, op die hoogte van sake bly en nederig sal wees. Ons eer en groet Alf Ries. [Applous.] (Translation of Afrikaans member’s statement follows.)
[Mr J H VAN DER MERWE (IFP): Hon Speaker, I pay tribute to the memory of the legendary journalist Alf Ries, who passed away last week. I am, in fact, directing this tribute at the media, because Alf Ries showed journalists the road that they should follow in order to be successful here at Parliament.
Alf worked for Die Burger here at Parliament for almost 30 years. As a journalist he was extremely successful. He wrote many scoops. He was the doyen of the media and he had an exceptional relationship based on trust with many Members of Parliament. His outstanding characteristic was that he could be trusted with the biggest of secrets. The cemetery for journalists has many graves of newspaper men who could not keep their mouths shut.
Alf’s second characteristic was that he was professionally well-informed at all times as to what was happening here at Parliament. This entailed long working hours. Alf was a pleasant person. He was not intrusive. He did not have a big mouth. He was not secretive, just plain ordinary Alf Ries.
Present-day journalists will themselves attain huge success if they, like Alf Ries, instill confidence and remain well-informed and humble. We honour and greet Alf Ries. [Applause.]]
TRADE AND INDUSTRY AWARENESS CAMPAIGN
(Member’s Statement)
Mr M JOHNSON (ANC): The community of Toise, an area near Stutterheim in the Eastern Cape, had an opportunity to host an awareness campaign in July sponsored by the Department of Trade and Industry. The theme of the campaign was: “The right to access to redress“. They focused on ways and means to reach out to the second economy in active participation in the areas of integrated energy provision, renewal energy sources as well as grid electricity provision.
Noting that this community is one of the poverty-stricken centres in our rural settlements, the ANC appreciates such an awareness campaign and we also hope that beyond the campaign there will be practical steps towards the realisation of the intended objectives to ensure access to economic redress and the betterment of lives of not only the Stutterheim community, but all poverty-stricken settlements in the county. Thank you.
MAYOR OF TSHWANE
(Member’s Statement)
Dr S M VAN DYK (DA): Agb Speaker, die voormalige uitvoerende burgemeester van die Tshwane-metroraad, vader Mkhatshwa, het reeds die trekpas van die ANC gekry deurdat hy na die plaaslike verkiesing vanjaar deur mev Gwen Ramokgope as die nuwe burgemeester van die Tshwane-metroraad vervang is. Sy is skaars agt maande in die stoel, maar te oordeel aan die publieke misnoeë met haar swak gemeenskapsdienslewering het sy reeds klaaglik misluk vanweë die onaanvaarbare administrasie en beleidsuitvoering van haar burgemeesterskomitee en bestuurskorps.
Die DA se hoofsweep in die raad, mev Natasha Michael, stel vandag, tydens ’n raadsvergadering ’n mosie van wantroue voor in die burgemeester, Gwen Ramokgope, as gevolg van haar power vertoning. Die media verwys telkens na die toenemende misdaad en afgewaterde Metropolisiedienslewering, ten spyte daarvan dat die burgemeester ’n veiliger Pretoria en omgewing belowe het, terwyl die Tshwane-rekeningstelsel en lisensiekantore ook daagliks agteruitgaan. Ons glo dat dit ’n goeie ding sal wees as burgemeester Gwen Ramokgope by Helen Zille se kantoor in Kaapstad ’n besoek kom aflê, sodat Helen Zille haar waardevolle leiding kan gee en van raad kan bedien oor hoe om ’n stadsraad verantwoodelik te bestuur. Alternatiewelik moet Gwen Ramokgope die eerbare weg volg en bedank.
Die DA waarsku die ANC dat, net soos wat die ANC-burgemeester in Kaapstad vanweë swak dienslewering deur ’n DA-burgemeester vervang is, net so is die Tshwane-metroraad ook vinnig op pad om deur ’n DA-burgemeester vervang te word. Dankie. [Applous.] (Translation of Afrikaans member’s statement follows.)
[Dr S M VAN DYK (DA): Hon Speaker, the former Executive Mayor of the Tshwane Metro Council, Father Mkhatshwa, has already been dismissed by the ANC because he was replaced by Mrs Gwen Ramokgope as the new Mayor of the Tshwane Metro Council after the local elections this year. She is hardly eight months in office but, judging by the public dissatisfaction with her poor service delivery to communities, she has already failed miserably as a result of unacceptable administration and policy implementation by her mayoral committee and management corps.
The DA’s Chief Whip in the council, Mrs Natasha Michael, is instituting a motion of no confidence in the mayor, Gwen Ramokgope, during a council meeting today as a result of her poor performance. Time and time again the media refers to the rampant crime and watered-down service delivery of the Metro Police, despite the fact that the mayor has promised a safer Pretoria and environs, whilst the Tshwane accounting system and licensing offices are also deteriorating daily. We believe that it will be a good thing if Mayor Gwen Ramokgope visits the office of Helen Zille in Cape Town so that Helen Zille can provide her with valuable guidance and advice as to how to manage a city council properly. Alternatively, Gwen Ramokgobe must follow the honourable route and resign.
The DA cautions the ANC that, in the same way as the ANC mayor in Cape Town was replaced by a DA mayor because of poor service delivery, the Tshwane Metro Council is fast on its way to being replaced by a DA mayor. Thank you. [Applause.]]
ELECTIONS IN THE DRC
(Member’s Statement)
Mr M J NENE (ANC): Madam Speaker, with regard to our statement on the DRC elections, the ANC, together with our African brothers and sisters, as well as with humanity at large, is marching to the future’s golden door bearing the records of deeds of favour. A brighter day is rising upon Africa.
The people of the DRC went to polls again last Sunday, 29 October, to elect the President of their choice; a President that will serve the interests of the Congolese people. This election marked the end of 40 years of undemocratic rule in Congo. We are heartened by the commitment made by both candidates – Mr Joseph Kabila and Mr Jean-Pierre Bemba. They have signed an agreement to avoid violence, to respect the outcome of the election and a guarantee of each other’s security, no matter the outcome of the result. Also encouraging was the large voter turnout at the Sunday polls under the relatively peaceful conditions.
The people of Congo are going to taste the elections as we did in 1994. The ANC urges the United States, the African Union and the other multilateral institutions to assist the Congolese in their effort to reconstruct their country. I thank you. [Applause.]
RESOURCE-DIRECTED MANAGEMENT OF WATER QUALITY
(Member’s Statement)
Mr J D ARENDSE (ANC): The ANC welcomes the recent signing of project deliverables for the development of a resource-directed management of water quality between the CSIR and the Department of Water Affairs and Forestry. The resource-directed management of water quality policy documents relates specifically to the management of the use and protection of the water quality component of inland water resources, including surface water sources, ground water, estuaries and wetlands. It also addresses how this resource-directed management of water quality should influence the management of anthropogenic activities that modify the water quality in water resources.
The institutional arrangement will simplify the process of implementing the policy by focusing on institutional and organisational issues in order to clarify roles and responsibilities even more. The use of these management instruments is aimed at assisting regional offices to make the water quality component operational and to assist the department with the evaluation and issuing of licences.
The ANC-led government’s goal continues to be that of correcting a South Africa in which all can experience an improvement in the quality of life. Water is that life. I thank you, Madam Speaker. [Applause.]
NO INCREASE IN SECOND DEFINED BENEFIT FUND
PLANS TO BUILD LEGISLATIVE COMPLEX IN PIETERMARITZBURG
LOCAL GOVERNMENT SETA
MR MOADIRA NEW MUNICIPAL MANAGER OF MATLOSANA
PLANS FOR ECOLOGICAL SECURITY
(Minister’s Responses)
The MINISTER OF FINANCE: Madam Speaker, I would like to respond to a few of these issues. First would be the issue raised by the hon Minnie about the Second Defined Benefit Fund.
If there is no growth in a defined benefit fund, it is because of the structure of the fund. There is no agreement that government is the underwriter. The key issue is trusteeship of pension funds, and government can’t make good where trustees fail in their fundamental responsibility.
The problem of the Second Defined Benefit Fund is that there are no longer any contributions to the fund. So, it then has to live off its investment income only, and that’s a constraint.
I’m saying that I am not aware of any agreement that government should make good on any losses or limited flows that the fund may have.
The second issue is that raised by the hon Skosana about the distributive justice. It is a very difficult issue. Should we not take this Parliament to Aggeneys? The hon member is of course aware where Aggeneys is.
An HON MEMBER: No, he isn’t.
The MINISTER OF FINANCE: He doesn’t know where it is because there is nothing there. You can say: Cape Town has so much, take it to Aggeneys. Then the people of Aggeneys would be happy, and MPs would be unhappy. What would you do in Aggeneys?
So, you can take these kinds of decisions, but there has to be a rational basis. I am sure that the hon Mr Skosana, being as learned as he is, would be aware of many instances where these artificial capital structures don’t actually work, not only in large democratic countries. You can go around these countries and see all of these capitals that were constructed and that are exceedingly difficult to maintain.
You can try and replicate it or repeat it or stretch it for as long as you can. The problem is that there are fundamental issues, and we are not going to resolve things by trying to go into the history of the choice between Pietermaritzburg and Ulundi. The key issue, at the end of the day, if you invest in resources is: What do the numbers tell you? I haven’t heard him on that.
I just want to deal with a few quick issues on local government. Firstly, on the local government sector education and training authority, or Seta, clearly that is a very good report, hon member there.
The question is, however, once we have looked at the numbers and seen the improvements in people going to training, would we have a discussion about the quality of the training? So, I ask, with the same diligence, that those issues be examined because I think it’s fully within the rights and, I daresay, ideas and the responsibilities of parliamentary committees to try and find appropriate measures for the measuring of the output.
The hon Groenewald commented on the travails of, I think you said, Mr Moadira. I will draw that to the attention of the Minister for Provincial and Local Government. But, as we know, national or provincial government doesn’t appoint municipal managers; that’s a local government competence.
The Minister for Provincial and Local Government has issued a set of norms that hopefully would apply. One way in which you can measure the performance is that you don’t keep people in the position because you like them, but because they actually perform and prove their mettle to the local taxpayers who, after all, pay their salaries. That is the matter that we will deal with.
The hon Van Dyk, I don’t know whether it is parliamentary to threaten us like that: “Ons waarsku vandag die ANC.” Now, what is the point of that? [Laughter.] I really don’t know what the point of his intervention is! [Applause.] I nearly fell out of my chair, but I don’t know what the point of it is. I am quaking in my boots!
I think the last issue I would like to touch on relates to the issues on the preservation of the environment, and they come through a variety of ways, raised across the House. I want to recommend to all MPs the recently released report in the name of Sir Nicholas Stern, which draws attention to these issues very sharply because the preservation of what we have and its maintenance for successive generations is part of our collective responsibility. It is not a party-political responsibility; it is part of the collective responsibility of leaders in this country and the world over.
Now, it is a manifest issue. It involves the consciousness that the hon Johnson was talking about - going into the rural communities around Sutherland, into places like Ngwali, and working with communities to identifty alternatives and ensure that they understand their roles.
It also involves doing some of the things that we have done this week to try and deal with those who would poach the last vestiges of our marine heritage. So, it is enforcement and education. It is multifaceted, but I think it only works because we take collective responsibility and act within the letter and the spirit of both national and global decisions on this. I thank you.
TRADE AND INDUSTRY AWARENESS CAMPAIGN
TRAPPED MINEWORKERS
(Minister’s Response)
The DEPUTY MINISTER OF TRADE AND INDUSTRY (Ms E Thabethe): Madam Speaker, I would also like to add, regarding the statement made by hon member Johnson, that we do appreciate, as the Department of Trade and Industry, that we are reaching out to the rural economy, but I also want to say that this is not as she was saying here that we should try to cover all the poverty-stricken settlements in the country.
Yes, as you are surely aware, from 26 to 31 October it was the Imbizo Week focusing on the second economy, but also looking at it within the context of the Accelerated and Shared Growth Initiative for South Africa. From Monday to Tuesday, as the DTI, we were with our agencies again. We were in the Mpumalanga province in the Barberton area, Njindi, and also Amersfoort.
Those are the rural places that we think also need this type of information, but we are also there with our agencies to make sure that the economic activities that we deal with as the DTI do filter down to those rural places. Also, on 20 November, we will be going back to the Eastern Cape, again with this particular information.
So you were saying here that we should try to do more beyond the campaign, and we should then be able to come up with programmes that will lead to job creation and also to empower people economically. That is exactly what we are doing under the campaign of taking the DTI to the people.
The next statement was on the trapped miners. I do agree with the recommendations that were made here. I also want to say that, as government, we have put forward legislation and regulations to talk to the question of safety and health. We believe that it is also the responsibility of the management and the trade unions to make sure that those structures that are created within nodes do work. Those are the actions that talk to the question of safety. Also, it means that the inspectorates need to beef up in terms of making sure that they do make regular visits and make sure that, yes, there should be profits but they should not be at the expense of the workers.
Workers also need to know what is contained in the nodes, because they have the right also to state to those employers that, if it is dangerous, they can prove that they cannot then go underground and be exposed to dangers.
I do agree with a review of the Sharp Pillar Method system so that we can also try to use new technology which is safe. Thank you, Madam Speaker.
OLIVER REGINALD TAMBO INTERNATIONAL AIRPORT
EMPOWERMENT OF WOMEN
COMBATING VIOLENT CRIME AGAINST WOMEN AND CHILDREN
(Minister’s Response)
The MINISTER OF EDUCATION: Madam Speaker, I am sure every right-thinking South African would agree with the hon member who introduced the statement on the renaming of Johannesburg International Airport to Oliver Reginald Tambo Airport. I think it is a recognition that has been a long time coming. Oliver Tambo, in waging the struggle for freedom in our country and leading it for many decades, sacrificed his life for all South Africans, and not just a few. Therefore, the honour that has been done to his name, to his family and to his abiding memory, I think is a very important step that has been taken to recognise the singular and important role he played as part of that collective leadership of the ANC in leading the struggle for freedom that we now enjoy in South Africa. So, we would support the hon member’s motion in that regard.
Secondly, on the matter of women and their empowerment, this is certainly something that Members of Parliament should be active in. I think that all of us should ensure that women in our society have access to information that empowers them in executing a life that is positive, that exercises and utilises the rights that are available in our society, and that takes advantage of opportunities that are now so widely available to women in our country.
We would certainly agree with Nadeco and suggest to them that they should pay attention to government and statements that are issued from time to time. We would have thought Members of Parliament would be aware that government has said that the campaign on violence is, in fact, a 365-day campaign, and not a 16-day campaign.
The 16-day campaign is an international campaign, and we have agreed that while there is intense attention to issues of violence against women and children in that 16-day period worldwide, as South Africa we must be active throughout the year. Government has made the statements very clearly and we would hope that Members of Parliament, in their constituency offices, are alerted to these issues on a regular basis, and are actively ensuring that they engender community action against violence directed towards women and children, as well as against violence in our schools and all the institutions of our country.
Finally, I think it is important for all of us to say that we welcome the opportunity for democracy that has been taken up by the people of the Democratic Republic of Congo, and we hope that the final result will be one that all the people of the Democratic Republic of Congo will accept and embrace, and that, finally, in that country, there will be democracy of a sustained nature that will support the emergence of true development that will enhance the lives of all the people of the DRC.
IDENTITY THEFT
(Minister’s Response)
The MINISTER OF HOME AFFAIRS: Madam Speaker, I have taken note of the statement made by the hon Madikiza, and I want to say that, obviously what we saw on Special Assignment is not something which makes any of us proud; it is embarrassing.
But I would like to refute and deny the fact that certainly this particular Minister has for the record, at any point, denied that there are problems in the Department of Home Affairs, including identity theft.
But, secondly, I think we have been very transparent about the nature of the problems in the department, including corruption. I want to say that not only have we come out about this particular issue, I think last year we even released statistics of people we have suspended, people we have arrested and people who are being charged in the department, and not only people who are being charged as a result of being exposed for being involved in acts of corruption within the department, but also arrests of agents who continuously linger around the Department of Home Affairs and who are - in the main – former officials of the department who become immigration agents to assist people in engaging in acts of corruption, in assisting people to buy documents from corrupt officials who are still working within the Department of Home Affairs.
Obviously, the challenge for us is to tighten our system in the department. Also, what I think has become very urgent for us is to implement the outstanding one of the four elements of Hanis, the Home Affairs National Identity System, which is the smart card. Obviously our green bar-coded identity document has become contaminated. Obviously, what is needed now is to implement the one outstanding element of our Hanis programme, the smart card. I believe that that is what we need to be focusing on right now. Thank you very much. [Applause.]
REVENUE LAWS AMENDMENT BILL
(Introduction)
The MINISTER OF FINANCE: Madam Speaker, hon members, it gives me great pleasure to introduce the Revenue Laws Amendment Bill of 2006. This Bill completes the legal process which started with the tabling of the Budget on 15 February 2006. The Revenue Laws Amendment Bill primarily contains the fiscal stimulus measures designed to accelerate economic growth, but it also contains ongoing measures to broaden the tax base to ensure that all our citizens pay their fair share of tax. I will close by covering other significant matters involving retirement savings, public benefit organisations and clubs.
In terms of the fiscal stimulus measures, the first issue is the 2010 Fifa World Cup. As you are well aware, government has earmarked R7,8 billion for the construction and upgrading of 10 stadiums for the World Cup as well as a further R6,7 billion to upgrade the surrounding infrastructure, public transport and systems improvement. The Revenue Laws Amendment Bill further adds to preparations for the 2010 World Cup. In particular, the Bill introduces tax amendments that cover South Africa’s commitments to Fifa. These provisions cover both customs as well as other taxes such as income tax and value-added tax.
In terms of the taxes on imports, Fifa-related organisations will receive complete relief. These organisations can import inventory for sale at designated sites such as stadiums. They will also be able to import capital goods consumables and promotional materials directly related to the World Cup, all of which will be free from import taxes. These temporary amendments to tax legislation should assist FIFA and their partners to hold a successful Soccer World Cup on our shores.
In terms of the other taxes, the fiscal measures provide for three sets of relief. Firstly, Fifa and its subsidiaries and its participating national associations, other than Safa, will receive exemption from income tax. These entities will also generally be entitled to VAT refund credit.
Secondly, various Fifa sponsors will receive partial exemption. These sponsors will receive the same tax benefits as the first group, but only to the extent that these sponsors operate in what is known as a “tax-free bubble” created within a stadium or designated site. [Interjections.] We call it a “tax-free bubble” - I am sure somebody wants to be funny about this.
The third area is that Fifa-related foreign individuals will also receive partial exemption, which eliminates South African income tax associated directly with the hosting of the 2010 World Cup.
One item worthy of a separate discussion is the VAT on ticket sales. Tickets and hospitality services including hotel accommodation will remain subject to VAT at the standard rate of 14%. However, some of the VAT revenue collected from the sale of tickets will be made available via the budget of the Department of Sport and Recreation to subsidise ticket prices for some local supporters. [Applause.] If the House had been awake this afternoon I am sure somebody would have said “Well done.”
Secondly, in respect of small business relief, the Bill seeks to unlock ongoing tax hurdles regarding small businesses. One hurdle involves the anti-avoidance regime triggering the “deemed employee treatment”, including the monthly withholding of 34%. While initial legislation was necessary to stop ordinary employers from avoiding monthly PAYE withholding merely by incorporating themselves, the initial regime needs to be relaxed.
A number of small companies have found themselves inadvertently subject to this regime, thereby disrupting the cash flow. For instance, the mere receipt of regular payment could jeopardise the tax status of small business entities, even though many of them strive to obtain regular cash flows for long-term sustainability. Along with a few other less important anti-avoidance measures, this has accordingly been dropped.
Then there is the research and development matter we dealt with during questions a fortnight ago. Economic literature has placed a growing emphasis on knowledge economies and how research and development contributes to microeconomic growth. The Bill, accordingly, promotes research and development of a scientific and a technical nature. Such current research and development expenditure will now be deductible at 150% of actual expenses incurred. Research and development-related capital investment can now be written off over three years at a rate of 50:30:20%.
We’ve dealt with oil and gas. Recent global events have again highlighted the importance of energy resources. South Africa has a long history of tax incentives to attract oil and gas exploration or extraction via private leasing agreements. These incentives, known as the OP 26 agreements, have assisted in attracting oil and gas investments in South Africa’s western and southern coastlines. However, the pending expiry of these agreements has deterred investments as of late. The Bill accordingly renews and modernises key features of the OP 26 in a more transparent and user- friendly form. The new regime also guarantees that these incentives will remain in place over the life of these investments, thereby ensuring fiscal stability.
The Bill then deals with base-broadening measures. Government’s ability to provide tax relief is only possible because of our previous base-broadening efforts through sound tax administration and modernised tax legislation, such as the capital gains tax, amongst other measures.
This year’s amendments contain some key changes with regard to compliance related to large corporate taxpayers. The commissioner has spoken many times about the need for corporate accountability, not only to shareholders but also to the nation at large. Whilst most corporations have taken heed of this corporate responsibility especially in the post-Enron era, some overly aggressive taxpayers and their facilitators remain.
Transactions of this nature frequently turn simple finance schemes into complex mountains of paper, filled with excessive legality, all for the purpose of reducing tax liabilities. These schemes cost the fiscus billions in tax revenue, money which can be much better spent for society’s benefit elsewhere.
In the light of the above, government announced its intent to close these schemes through what is known as a revised general anti-avoidance rule. Development of this legislation is nearly two years in the making, after several rounds of consultation. The new legislation seeks to target the most serious elements of these schemes.
The general anti-avoidance rule and reportable arrangements legislation is admittedly contentious, as was the capital gains tax at the time of its introduction - in part, because of its complexity. Unfortunately, complex tax avoidance schemes require complex responses. Government has a choice: It can sit back in the name of legal tradition and let some unscrupulous individuals deprive the fiscus of vast sums of tax revenue, or it take action to ensure that the tax burden is shared equitably and that tax revenues are generated to cater for the needs of society at large. In this case, government clearly must choose the latter.
Then there are a few other issues that are worth mentioning. The first of these is retirement savings. It’s clearly a topical issue and one of the reasons why the hon Karel Minnie raised this earlier as well. National Treasury has taken a two-pronged approach towards promoting retirement savings.
On the one hand, taxation of retirement funds is being gradually reduced with the current rate now sitting at 9% as opposed to 25% just a few years ago; on the other hand, National Treasury has sought to apply regulatory pressure in order to ensure that retirement savings will not be unduly consumed by industry fees. As part of this effort, I entered into a statement of intent with the long-term insurance industry in December 2005, to recover retirement savings lost in fees on both a retroactive and a prospective basis. The amount in question was some R3,6 billion.
As members may well be aware, individuals risk losing all monies previously contributed to retirement funds under the various penalty clauses if they stop making ongoing contributions. The statement of intent seeks to curb this unhealthy practice. The Bill before this House seeks to ensure that recovery of these penalties is not unduly delayed by virtue of withholding taxes, though such payouts remain subject to tax and must be included in individual tax returns.
On the subject of public benefit organisations, government has been engaged in a long-term effort to establish the appropriate tax regimes for public benefit organisations. Public benefit organisations should generally be free from income tax, except to the extent that they engage in commercial businesses that compete with the private sector.
The Bill before this House is designed to further assist public benefit organisations. The Bill eliminates many ongoing restrictions on their investments. Public benefit organisations can now freely invest their funds as desired, as long as these funds do not represent a disguised distribution of profits. Other changes eliminate hurdles facing foreign public benefit organisations seeking to provide assistance to our communities and those within the Southern African region.
Also addressed in this Bill are problems associated with the current dual registration process. Under the present law, public benefit organisations must register with a nonprofit organisation within the Department of Social Development as well as SARS as a precondition for tax exemption. This Bill eliminates the non-profit organisation registration requirement; except that this requirement can request tax exemption to be overturned if a public benefit organisation is convicted of an offence in terms of the Nonprofit Organisations Act.
Lastly, the higher tax rate of 40% for public benefit organisations that are registered as trusts has been remedied. Trading activities of public benefit organisations will now be subject to the company tax rate of 29%.
As I close on this subject, I would like to ask Parliament to be mindful of the valuable contribution of the late Eugene Saldanha on working on tax relief measures for public benefit organisations. I hope our efforts in this area can be a lasting tribute to his work.
Finally, clubs were subject to partial taxation many years ago, but the taxation of clubs was temporarily eliminated as government transitioned its way towards the present system tax regime for public benefit organisations. The current regime provides unfair benefit for clubs, all of which are completely tax-free and are without regulatory restriction. The Bill accordingly seeks to restore the appropriate parity.
Internationally, clubs are entitled to some level of tax exemption because members are merely sharing recreational expenses within a single fund. This sharing could not attract taxation. However, investment income is quite another matter; individuals are not entitled to tax-free investment income merely because that income is consumed for recreational activities, and the same should hold true for clubs.
Other areas of concern are club activities that compete with the private sector and are wholly unrelated to the club’s objects, such as fees from the rental facilities to non-club members. The Bill accordingly seeks to achieve this balance. Membership fees and other club member payments would generally remain free from income tax. Investment and unrelated business income will be taxable. However, investment and unrelated business income will be given some measure of tax relief in order to assist many smaller clubs linked to grass-roots communities as well as to reduce the unnecessary disputes over trivial amounts. The Bill exempts the trading and investment income of a club up to the greater of 5% of its membership fees or R50 000. This exemption is similar to the current exemptions for public benefit organisations.
In conclusion, I would like to thank the chairperson, Nhlanhla Nene, for his leadership, and the members of the Portfolio Committee on Finance for their always constructive role in the process. Our goal is economic growth that benefits all South Africans. That said, I hereby table the Revenue Laws Amendment Bill of 2006. I thank you [Applause.]
Bill referred to the Portfolio Committee on Finance for consideration and report.
SOUTH AFRICAN RED CROSS SOCIETY AND LEGAL PROTECTION OF CERTAIN EMBLEMS BILL
(Second Reading debate)
There was no debate.
Bill read a second time.
IMMIGRATION AMENDMENT BILL
(Second Reading debate)
The MINISTER OF HOME AFFAIRS: Madam Speaker, hon Ministers, Chairperson, members of the portfolio committee and hon members, as you will recall, the Immigration Amendment Act, Act 19 of 2004 was passed by this House in September 2004, and was implemented together with the new comprehensive regulations on 1 July 2005, just over a year ago. As I said at the time, it is our view that the Act provides a workable policy framework for the management and regulation of immigration.
Immigration policy by its very nature is dynamic, and although we realise that frequent changes in policy and legislation take up considerable resources, we nevertheless constantly monitor the extent to which our immigration laws reflect government policy as a whole.
Migration management continues to involve the balancing of different objectives and interests. One of the areas where this balance is required is in acquisition of foreign skills to support our economic objectives. While we need to import certain skills, our commitment to human rights demands demand that foreign workers are not exploited. It is also our policy to protect the South African workforce, and we also look for ways in which skills can be transferred to our own citizens.
This is of course not the sole mandate of the Department of Home Affairs. We are in many cases facilitators of broader government policies aimed at promoting economic growth and a better life for all. Although our policy framework is acceptable, I became aware from discussions with various stakeholders, as well as my own observations, that there have been difficulties in the implementation of the Immigration Amendment Act of 2004 and the new regulations. The implementation issues have been addressed. For instance, the backlog in processing applications for exemptions from the requirements of certain regulations has been eradicated, and a project to eliminate the backlog of permanent residence applications is on track.
Most of the amendments in the Bill I am presenting today deal with technical issues. The amendments have been included to make it easier for our clients to understand the requirements for some of the permits. One substantive amendment is extension for the period for which an intra- company transfer work permit may be issued from the present two-year period to four years. An intra-company transfer work permit is issued to allow foreigners to work in the South African branch, subsidiary or affiliate of the foreign company that employs them abroad.
The permit is characterized by its requirements, being more flexible than the general work permit, which the employee must apply for if he or she wants to remain in South Africa beyond four years. There is no requirement, for example, to advertise or search for a South African citizen or permanent resident who would be able to do the same work. This permit was designed for multinationals to be able to function effectively, and the initial rationale for limiting the permit duration to two years was that this would enable skills transfer.
We have accepted the argument by a number of multinational companies that the two-year limit to the permit is a major obstacle to their operations in South Africa. A common argument is that the duration of typical senior manager’s contract is three to four years, and for them to comply with the requirements of the general work permit after two years is disruptive and unrealistic.
This is not to say, however, that skills transfer is not an important policy objective. A foreigner who has held a work permit for five years and who has an offer for permanent employment may apply for permanent residence. It was for this reason that we did not accede to the request that the period for the intra-company transfer permit be extended to five years. A foreigner wishing to settle in South Africa on a more permanent basis should apply for another appropriate permit.
In order to provide for consistency and clarity, the amendments include definitions of the terms “affiliate”, “branch” and “subsidiary”. The definition of “depart” or “departure” has been amended to clearly indicate that depart or departure means exiting the Republic from a port of entry to another country in compliance with this Act to provide for ships or rigs which leave a port intending to return to the port but not leaving for another country. In the implementation of the Immigration Amendment Act of 2004 and the new regulations, we noted some confusion in relation to the requirements for holders of visitor’s permits who wish to work in South Africa for short periods and who are not required to apply for work permits. These permits are issued for an initial period of up to three months, which may be extended on application to six months. Section 11 has therefore been redrafted to remove any confusion that may have existed.
This section of the Act also provides that a visitor’s permit may be issued for a period of up to three years to academics on sabbaticals, researchers, volunteer and charity workers, and those involved in other prescribed activities who can show that they control available financial resources.
Sections 15 and 27 of the principal Act are amended to substitute the words “financial or capital contribution” for “capitalisation requirements” where they appear. Section 20 of the principal Act is amended to provide the spouse and dependent children who accompany the holder of a retired person’s permit with an appropriate permit, for instance, a study permit for a dependent child. Section 26 is amended to provide that a child of a citizen or permanent resident who is under the age of 21 must apply for confirmation of a permanent resident’s permit within two years of his or her having turned 21. Section 27(a)(ii), which provides for permanent residence permits to foreigners who have certain skills needed by the South African economy, is amended to align the process for determining the list of skills with the process for quota work permit under section 19(1) and, finally, section 8 has been amended to provide for the withdrawal of a permanent residence permit if the holder has been convicted of an offence in terms of the Act in addition to the existing schedule of offences.
The Immigration regulations are just over a year old and, as I indicated above, are reviewed on an ongoing basis as part of the normal monitoring and evaluation of legislation. This Immigration Amendment Bill has been favourably received by most stakeholders and, in general, there is broad consensus that our immigration policy is sufficiently dynamic and flexible to respond to a wide range of policy objectives.
I must thank all members of the Portfolio Committee on Home Affairs for their continued support given to the department, the Deputy Minister and myself during what has been a particularly hectic session for them. It gives me pleasure to submit for consideration to this House the Immigration Amendment Bill of 2006. Enkosi. [Thank you.] [Applause.]
Mrs S V KALYAN: Madam Speaker, the Immigration Amendment Bill of 2006 is the second amendment to the Immigration Act of 2002. The principal Act is seriously flawed, and when the first amendment was passed in 2004, the Minister herself acknowledged that this piece of legislation needed a major overhaul and promised to begin the review process at that time. The portfolio committee has been made to understand that, to date, there has been no movement on the review process and it would appear that this has been abandoned.
What is also quite interesting is that in all the time that the Immigration Amendment Bill and the Civil Union Bill have been before the committee, except for two persons from the department’s legal team, no other Department of Home Affairs’ officials has even deigned to visit the hearings or observe discussion. In the meantime, we sit here with band- aid type amendments done in a piecemeal fashion. This does not augur well for legislation which impacts on the lives of many. Nevertheless, the amendments proposed in respect of increasing the lifespan of intra-company transfer permits from a period of two years to that of four years is, indeed, positive as it ensures continuity and sufficient time for skills transfer to occur in a longer timeframe.
The amendment to section 27 of the principal Act not only liberalises and fast-tracks the entry of much-needed and highly desirable skills, but it also allows for a simplified form of permanent residence permit to be issued to such persons. One point, which emerged during the hearings, is that professional and occupational classes have not been properly consulted and many classes of skills, which should be included, are not. It is hoped that the department will note and act on this. The provision of appropriate permits to the spouse and dependEnt children of the holder of a retired persons permit is welcomed, as is the division of procedures and permits in respect of admissions, residence and departure from the Republic. However, an overhaul of our immigration legislation is very necessary to address the concerns of lower-skilled migrant workers and issues around xenophobia, racial discrimination and human trafficking. The lack of involvement by the officials of the department and the remote- control management style of the Minister of Home Affairs is most likely one of the key reasons for the dismal failure of the department to deliver an effective service.
The recent exposé on Special Assignment of rampant corruption within her department has further entrenched the public notion that the Department of Home Affairs is rotten to the core and the Minister’s silence on the matter is a cause for concern. The DA urges the Minister to release the pause button on her remote and clean up her department. The DA supports the Immigration Amendment Bill. [Applause.]
Mr F BEUKMAN: Chairperson, members of the executive and hon members, thank you for the opportunity to take part in this debate today. On behalf of the ANC we want to declare our support for the Immigration Amendment Bill. I will refer to the comments made by the hon Kalyan.
The Immigration Amendment Bill should be seen in terms of certain specific political and economic goals. In his state of the nation address on 2 February the President of the Republic highlighted two important principles. We should make the necessary interventions with regard to the first economy to accelerate progress towards the achievement of higher levels of economic growth and development of at least 6% a year. We must ensure that the machinery of government discharges its responsibilities effectively and efficiently, honouring the principles of Batho Pele.
In the context of the Immigration Amendment Bill necessary interventions are the operative or descriptive term, and the Minister has put it in the correct context. Although the main objective of the Bill is to define, clarify and effect technical amendments, the four substantial amendments aim to facilitate a better dispensation for skilled individuals who want to reside in South Africa for set periods to contribute to skills transfer and economic growth.
In an ever-changing global environment in the competition for scarce skills between the North, the South and intra-South, governments must play a proactive role to ensure that legislative and regulative frameworks respond to skills challenges, and that is what the Minister and the department are doing.
On a macro level, we as the legislature should take note of the following. Migration specialists estimate that some 61 million people from developing nations in the South now make their home in another developing country. That’s nearly a third of the total of 191 million global migrants and the same share as the 62 million who have moved from poor to wealthy nations, for example from South to North. An additional 53 million migrated between developed nations, while 14 million went from rich to poor countries.
The mentioned reality should not be underestimated. It therefore means that the formal rules of migration should not be left unattended. Government departments should intervene when circumstances change, and the Department of Home Affairs acted appropriately. The Minister, the department and her legal team should be commended for taking this initiative.
To illustrate the amendments, I’ll use a few practical examples, and the Minister referred to that with regard to work permits, visitor permits, foreign spouses and intercompany transfers. Let’s take an example: Mr Fernandes, who is employed by Venezuela Oil, with no subsidiary in South Africa, would be able to provide expert services in South Africa for a period of three years while in possession of a visitor’s permit.
If his spouse, Mrs Fernandes, who is a civil engineer, accompanies him to South Africa she would be able to obtain authorisation to work on a visitor’s permit to provide expert services. This provision will significantly enhance South Africa’s ability to attract and retain skilled foreign workers. Skills transfer will therefore also be promoted.
The Minister referred to the question of intercompany transfer. The portfolio committee received a variety of submissions on the said clause from PricewaterhouseCoopers, Business Unity SA, Cosatu, the NUM and the Law Society of SA. There were different views on this matter, some arguing for the status quo and others for a period of five years.
The ANC supports the view of the department and the Minister that the four- year period balances the need for scarce skills on the one hand, while also recognising the need for local skills development and transfer on the other.
The Minister has already referred to the retired person’s permit. In terms of the professional and occupational permits, this makes provision for applicants within specific professional categories within the specific occupational clause, such as medical professionals or engineers, for example. The said amendment helps to liberalise and fast-track the entry of needed and highly desirable skills, and allows for a simplified form of permanent residence for such persons.
The ANC supports the clause that makes provision for the withdrawal of a permanent residence permit if the holder thereof has been convicted of an offence in terms of this Bill.
Now to come back to the speech of the member of the DA, the aim of the amending Bill is not a major review of the current legislation. The Bill responds to the present and immediate challenges facing the migrating skills environment.
Some stakeholders have asked for a comprehensive review of the Act in terms of policy and operation. We from the side of the ANC recognise the need for a broad discussion with regard to the international and regional instruments that impact on South Africa’s migration legislation.
Hierdie prerogatief val egter binne die uitvoerende gesag en die portefeuljekomitee sal te eniger tyd enige inisiatief van die Minister of die departement in die toekoms fasiliteer, en ons is gereed om dit te doen indien dit nodig is. (Translation of Afrikaans paragraph follows.)
[However, this prerogative falls within the executive power and the portfolio committee will at any time in the future facilitate any initiative from the Minister or the department, and we are prepared to do it if it is necessary.]
At the launch of Jipsa on 27 March 2006 the Deputy President said the following:
The most fatal constraint to shared growth is skills, and it should be noted that skills are not just one of the constraints facing Asgisa but a … fatal constraint. That fact should be admitted with emphasis. We have to overcome the shortage of suitable skilled labour if our dreams for this economy are to be realised; the task is huge.
The Deputy President indicated a vast array of steps and measures to address the problem. She also said the following:
The Department of Home Affairs and the joint task team must look at facilitating the importation of scarce and priority skills to assist us to meet our short- to medium-term skills demand.
Dit is juis wat die Minister en die departement onderneem en hopelik verstaan die DA dat dit ’n inkrementele proses is. Soos die ekonomiese realiteite verander, soos bepaalde vaardighede nodig is, moet die regering aanpassings maak. Uiteraard, as daar sekere tekorte in bepaalde sektore is, sal die departement en die Minister daaraan aandag skenk en die ANC sal dit in die portefeuljekomitee bespreek. Die ANC steun hierdie wetsontwerp. [Applous.]] (Translation of Afrikaans paragraph follows.) [This is exactly what the Minister and the department undertake and hopefully the DA understands that this is an incremental process. As the economic realities change, as specific skills are needed, so government must make adjustments. If there are certain shortages in specific sectors, the department and the Minister will naturally pay attention to this and the ANC will discuss it in the portfolio committee. The ANC supports this Bill. [Applause.]]
Mrs I MARS: Madam speaker, hon Minister of Home Affairs and colleagues, it becomes necessary from time to time to review legislation in order to meet new or revised requirements. This is the case with the Immigration Amendment Bill before us today. The proposed amendments have been discussed with a wide range of stakeholders, and give effect to government’s promise to liberalise the permit regime for foreigners with scarce skills.
This will assist in alleviating the current scarce skills shortage in South Africa. Among other benefits, it will enable foreign companies involved in preparation for the 2010 World Cup to transfer highly skilled staff to local companies with immediate effect for a period of four years instead of the current two years. Hopefully skills transfer will take place as a result of the extension of time.
A further improvement is proposed for retired persons legally residing in South Africa. They will now be able to be issued with appropriate permits for spouses and dependent children. This is very necessary to allow legal retirees to have a normal family life. Finally, the amendment proposed to include cross-border and transit permits as temporary residence permits is a tool that is very welcome.
The fact that sanctions are now applicable to anyone convicted of an offence under the Act by withdrawing their permanent resident’s permit, I think, is very desirable. The IFP says these amendments are welcome and supports the Immigration Amendment Bill. Thank you. [Applause.]]
Mr H B CUPIDO: Chairperson, the ACDP supports the Immigration Amendment Bill as it helps to fast-track the entry of much-needed and highly desired skilled persons, and allows for a simplified form of permanent residence permit for such persons.
It is generally accepted that South Africa has a huge shortage of skills and we have embarked upon extensive infrastructure spending in the run-up to the 2010 Soccer World Cup. It becomes all the more necessary to simplify entrance requirements for such skilled persons.
Most commercial and private interests have been calling for an extension of the validity of intra-company work permit. The extension of this period to four years is therefore to be welcomed. The amendments relating to the issuing of an appropriate permit to the spouses and dependent children accompanying the holder of a retired person’s permit is to be welcomed. We also support the withdrawal of the permanent residence permit if the holder thereof has been convicted of an offence in terms of the Act. The decision should, as indicated by the Law Society of South Africa, be subject to appeal or review in terms of section 8, as this decision will have major implications for the affected persons who can include minor children. [Time expired.]
Mr I S MFUNDISI: Chairperson and hon members, there is debate that says, at present, to put up a business in South Africa is as good as trying to get a camel to go through the eye of a needle. The Bill we are debating seeks to put paid to such complaints by lowering the flag a bit without opening the sluice gates. There are checks and balances woven into the Bill, such as that, if an investor fails to prove that he has sufficient financial or capital contribution for the business, the director-general may decide not to issue or extend the permit, and that if he is convicted of any crime he forgoes the privilege.
The Bill seeks to assist foreign captains of industry by extending their residence permits from two years to four years. This is a liberal increase by 100%. One wonders if they can increase the emoluments of the employees in similar fashion.
The kind-heartedness of South Africans is further displayed by providing for the children of any retiree to accompany him or her when he comes to settle in this country. Bagaetsho, re rata batho – sithanda abantu. [Fellow people, we love people.] This country loves people and accepts all people of goodwill. The UCDP supports the Bill.
Dr S E M PHEKO: Madam Chairperson, the PAC supports the Immigration Amendment Bill, although it seems that immigration law in this country must undergo a more fundamental change, including demanding reciprocity, especially in dealing with western countries. They often make things difficult for our citizens with regard to visas. Some of these countries do not always treat our citizens with respect.
Nevertheless, the PAC welcomes this Bill whose objective, inter alia, seeks to include cross-border and transit permits. The Bill also seeks to provide for the issuing of an appropriate permit to the spouse and dependent children accompanying the holder of a retired person’s permit. The definition of words such as “affiliate, depart or departure, status and subsidiary” is helpful. The PAC supports this Bill. Thank you, Madam Chairperson.
Ms S RAJBALLY: Chairperson, South Africa has become home to a number of refugees and illegal immigrants that have found varying ways to abuse our system and gain access to government funding as well as South African residence.
The report on Special Assignment earlier this week has clearly indicated just how easy it is to gain access to legal documentation that makes you a South African citizen. However, corruption has been noted from the attack on legal immigrants by police officers, who wrongfully detain and threaten legal immigrants and refugees, and demand bribes. The state needs to place measures aimed at dealing with the immigrants’ situation in South Africa in order to end corruption.
Further, the recent spate of attacks and killings of Somalis who reside in South Africa is despicable. We call on the public to abandon xenophobia and acknowledge the assistance we received from our neighbours during the apartheid era. We have a duty on ourselves as an African state to welcome these refugees who now need help.
Our greatest influx of illegal immigrants to South Africa is from Zimbabwe and Mozambique. As of the past year, those visiting …
The HOUSE CHAIRPERSON (Ms C-S Botha): Hon member, your time has expired.
Ms S RAJBALLY: The MF supports the Bill.
The MINISTER OF HOME AFFAIRS: Deputy Chair, hon members, thank you for your comments and support for this amending Bill. Yes, we have committed ourselves to reviewing and overhauling the immigration policy of this country. However, as I indicated earlier, we started implementing the Immigration Act just over a year ago. I’m sure that between that time and now you couldn’t have expected us to have been able to start reviewing the immigration policy.
Nonetheless, we have been receptive of the views of the people who have been knocking at our door to raise concerns about this particular issue of intracompany work permits, hence this amendment. So sometimes, indeed, it becomes necessary to use band-aid. That is the reason we have band-aid: You have to use it sometimes. [Interjections.]
An HON MEMBER: It is a very small strip.
The MINISTER OF HOME AFFAIRS: It is a small strip, alright, and it is likely to come off, but I suspect this one will work this time around. So, yes, this Minister is holding a remote control, and when you are on pause, it shows that you are in control. Well, I hope that at some point this Minister will be able to take her finger off the pause button, but at least she does have the remote control to show that she’s in control, in spite of whatever problems there may be. I believe that together we can deal with those problems.
Hon members, I want to thank you for supporting this amending Bill. And I hope that at the time when we all take the decision to begin the process of review, all of us will be ready with our comments so that we can all start moving forward without any delays.
And I want to thank, through you, all the stakeholders who have made themselves available through their comments, their letters and their submissions to the portfolio committee and to us on this particular matter. Thank you very much. [Applause.]
Debate concluded.
Bill read a second time.
INTERNATIONAL STUDY TOUR TO BRASILIA AND SÃO PAOLO
(Consideration of Report of Portfolio Committee thereon)
Mr L ZITA: Madam Chair, on 15 November 2005 the Portfolio Committee on Environmental Affairs and Tourism took a decision to undertake an international study tour to Brazil, during the first term of this year’s parliamentary period. The intention was to go and learn about Brazil’s environmental policies that are most relevant to South Africa.
Due to our local government elections the study tour took place during the constituency period from 14 to 25 April 2006. The visit aimed to look at environmental and biodiversity programmes, the management of marine and coastal development, mechanisms and strategies on climate change and air pollution prevention, the implementation of the Kyoto Protocol, the implementation of waste management policies and programmes, ecotourism and sustainable development, as well as oversight of the Brazilian parliament on matters related to the environment and tourism.
We met with the acting head of the South African mission in Brazil, the executive secretary of the Ministry of Environmental Affairs, and visited the national parks, the Institute of the Environment and of Natural Recycled Resources, the national centre for prevention of and the centre to fight forest fires, the centre for remote censoring, and the national centre for research, as well as the centre for the protection and handling of caves. We also undertook visits and tours through the cities and informal settlements.
Brazil has addressed environmental issues over the past three decades. Its first institutional landmark occurred in 1973 when Brazil created its first environmental management body within the presidency of the country. After the period of military rule, attempts were made to draw progressive organs of civil society into the formulation of environmental policy. In pursuit of the sustainable use of forests and to combat public land deforestation, a law for public forest management was sanctioned on 30 March 2006. It establishes rules for sustainable use of public forests and creates a national fund for forest development. It identifies three forms of public forest management for sustainable production: the creation of protected areas for sustainable use, such as the national forests; the destination for community use of extractive reserves and forest concession contracts based on public processes with payment for the exploration of forest products and services.
The Brazilian government has established 11 centres for agrobiodiversity management, which has benefited 5 000 family farmers settled by land reform and the training of farmers and technicians on sustainable use of agrobiodiversity. Concerns about the release of genetically modified organisms into the environment has lead to the holding of four capacity- building workshops on GMO biosafety, involving approximately 200 inspectors, researchers, teachers and farmers. Some of the major biodiversity programmes include the review of official lists and the launching of a book on endangered Brazilian fauna, which consists of 663 species. Brazil organises symposia on alien invasive species, which had the participation of several countries to look at the management of aquatic biodiversity, the collection of data on the current status of biomes and the launching of the first edition of the atlas on coral reefs in Brazilian protected areas.
In order to reduce the biodiversity loss, the Minister responsible for the environment has established a national plan for protected areas. The main objective of this plan is to establish by 2015 a broad system of protected areas, which are ecologically representative and are effectively managed, so as to ensure access as well as fair and equitable share of costs and benefits stemming from conservation measures.
Its main goal is to maintain a focus on national systems of protected areas, indigenous lands and lands of the descendants of former slaves, as well as the creation and consultation of areas with international recognition, such biosphere reserves and the international world heritage sites. Throughout the country, the government is protecting more than 15 million hectares of public land through designating them as protected areas.
The government has also invested in a number of projects, such as clean-up technology, deforestation, marine and coastal management, biodiversity conservation and management, environmental quality and territorial management. The co-operation of the national congress, the water resource council and the Brazilian government have over the past three years led to the promulgation of rules, resolutions and laws that established a new regulatory framework and procedures to regulate the activities that endanger the environment.
We went to the Chapada dos Veadeiros National Park, located 260 km from Brasilia. We observed a dynamic partnership between the park and the communities adjacent to it. The park has no accommodation facilities and all visitors have to stay in well-maintained facilities that are owned by the community. Most of the staff of the park is also drawn from the community. The second on-site visit was conducted on Brasilia’s national park. This park was created in November 1969 by a federal decree. Its purpose is the protection of wild areas of biological, scenic, cultural, educational and recreational relevance. In spite of being an urban park and being subject to severe pressure by human action, the park houses animals and plants typical of the Brazilian savannah, such as anteaters, tapirs, men-wolves, foxes, wild cats and jaguars.
With regard to the environmental management, we visited the Brazilian Institute of Environmental and Renewable Natural Research. This institute is responsible for the licensing of large potential projects, nuclear activities and the exploration of deep-water petroleum and gas. Through its scientific and technological innovations, the institute has developed and updated a system of reading georeference data on the Amazon forest. This technological innovation has enabled the institute to identify with precision, deforested areas and to assess the incidences of fire, deforestation, irregular mining activities and erosion. The institute has established 21 specialised centres to carry out studies, technical and scientific research, and to provide information on public policies.
We visited specialised centres in the areas of environmental information, marine and estuarial fishing, forest management, remote sensing, prevention and control of forest fires, that all rely on the scientific efforts of nationally and internationally renowned researchers. We also visited the national centre for the prevention and fight against forest fires, the centre for orchids, ornamental, medicinal and aromatic plants, the national centre of research, protection and handling of caves and the laboratory of forest products.
Some of the environmental management institutions were visited to see the use of research findings to develop strategies related forest fire fighting and control, developing guidelines for environmental licensing for petroleum exploration activities, environmental impact studies on infrastructural projects, the development of information systems on environmental licensing, which works through the Internet, thus improving the administration and transparency of the process.
On 24 April 2006 the delegation had a city tour in Sao Paolo, the third largest city in the world, with 16 million inhabitants. The main objective of the tour was to look at the dynamics of urbanisation, informal settlement and traffic congestions and controls. We also had an opportunity to visit and observe places of tourist attraction, such as the municipal market, the theatre and the metropolitan cathedral. We drove through poor and underdeveloped areas on the outskirts of Sao Paolo, as well as the Avenida Paulista, the heart of the city during peak hours to experience traffic congestion.
The downside of the trip was on logistics. The programme was only received when the delegation arrived in Brasilia. As a result, no additions or changes could be made to it. We could not see some of the places such as Corituba, a well-known place on sustainable management, which we wanted to see. The programme only covered three days due to the difficulty of arranging appointments during the week, cut short by the Easter Monday and the Brazilian national holiday on 21 April.
Some of the recommendations that we would like to present to the House are amended. We would like to recommend that the Department of Environmental Affairs and Tourism must, in the coming period, come and brief the committee on the India-Brazil-South Africa agreement and progress made with respect to projects on environmental affairs and tourism.
The Department of Foreign Affairs must, in future, ensure that proper systems are put in place to facilitate the co-ordination of international visits in accordance with the objectives of the Parliamentary committee. In future, the Office of the Mission should advise the Parliamentary portfolio committees not to proceed with an envisaged study tour if all the logistical arrangements in terms of the objectives of the trip have not been properly arranged. The portfolio committee represents this report to the House for adoption. Thank you. [Applause.]
Ms E NGALEKA: On behalf of the Chief Whip of the Majority Party, I move:
That the Report be adopted, with the recommendations substituted as follows:
Having undertaken an international study tour to Brazil, the Committee
recommends as follows:
(a) The Department of Environmental Affairs and Tourism is requested
to, in the near future, brief the committee on India-Brazil and
South Africa Agreement and progress made in respect of the
project on environment and tourism;
(b) The Department of Foreign Affairs should in future ensure that
proper systems are put in place to facilitate coordination of
international visits in accordance with the objectives of the
Parliamentary committee; and
(c) The Office of the Mission should, in future, advise
Parliamentary committees on programmes for envisaged study tours
and in respect of all logistical arrangements in terms of the
objectives of the Parliamentary committee.
Motion agreed to.
Report, as amended, accordingly adopted.
CONSIDERATION OF FIRST REPORT OF RULES COMMITTEE OF NATIONAL ASSEMBLY, 2006
There was no debate.
Ms E NGALEKA: Chairperson, on behalf of the Chief Whip of the Majority Party I move:
That the report be adopted.
Motion agreed to.
Report accordingly adopted.
The House adjourned at 15:43.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
-
Assent by President in respect of Bills
1) Older Persons Bill [B 68F – 2003] – Act No 13 of 2006 (assented to and signed by President on 29 October 2006).
-
Introduction of Bills
(1) The Minister of Finance
a) Revenue Laws Amendment Bill [B 33 – 2006] (National Assembly –
proposed sec 77)
b) Revenue Laws Second Amendment Bill [B 34 – 2006] (National
Assembly – proposed sec 75) [Explanatory summary of Bill and
prior notice of its introduction published in Government
Gazette No 29340 of 31 October 2006.]
Introduction and referral to the Portfolio Committee on Finance of
the National Assembly, as well as referral to the Joint Tagging
Mechanism (JTM) for classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of
the Bills may be submitted to the JTM within three parliamentary
working days.
- Draft Bills submitted in terms of Joint Rule 159
(1) Revenue Laws Second Amendment Bill, 2006, submitted by the
Minister of Finance.
TABLINGS
National Assembly
-
The Minister of Finance
(a) Explanatory Memorandum on the Revenue Laws Amendment Bill, 2006 [B33 – 2006] (WP 2 – 2006).
-
The Minister of Water Affairs and Forestry a) Agreement between the Republic of Botswana, the Republic of Mozambique, the Republic of South Africa and the Republic of Zimbabwe, tabled in terms of section 231(2) of the Constitution, 1996.
b) Explanatory Memorandum to the Agreement.
National Assembly
-
The Speaker
a) Letter from the Minister of Arts and Culture to the Speaker of the National Assembly, in terms of section 65(2)(a) of the Public Finance Management Act, 1999 (Act No 1 of 1999), explaining the delay in the tabling of the Annual Reports of the Robben Island Museum and the Playhouse Company for 2005-2006:
EXPLANATION FOR THE LATE TABLING OF ARTS, CULTURE, AMD HERITAGE INSTITUTIONS’ ANNUAL REPORTS IN ACCORDANCE WITH SECTION 65(2)(a) OF THE PUBLIC FINANCE MANAGEMENT ACT, NO 1 OF 1999: In terms of section 65(1)(a) of the above-mentioned Act the annual reports and financial statements, and the audit reports on those statements, of the Arts, Culture and Heritage Institutions listed below were tabled late or have not been tabled. The following are reasons for late tabling of reports or for reports which have not yet been submitted: 1. The tabling of the Annual Report of the Robben Island Museum has been delayed to due an erratum in the foreword to the Annual Report. Tabling of the Annual Report is now eminent. 2. The Annual Report of the Playhouse Company was received timeously but was delayed because of an administrative error and miscommunication at the Cape Town office. The Annual Report was tabled on 16 October 2006. Yours sincerely Z Pallo Jordan Minister of Arts and Cultureb) Letter dated 31 October 2006 from the Minister of Transport to the Speaker of the National Assembly, in terms of section 65(2)(a) of the Public Finance Management Act, 1999 (Act No 1 of 1999), explaining the delay in the tabling of the Annual Reports of the Road Traffic Management Corporation and the Urban Transport Fund for 2005-2006:
WRITTEN EXPLANATION ON THE LATE SUBMISSION AND TABLING OF THE ANNUAL REPORT AND FINANCIAL STATEMENTS OF THE ROAD TRAFFIC MANAGEMENT CORPORATION AND THE URBAN TRANSPORT FUND FOR THE YEAR ENDED 31 MARCH 2006: I write to inform Parliament that in terms of section 65(1)(a) of the Public Finance Management Act, 1999 (Act No 1 of 1999), as amended (PFMA), I was unfortunately not able to table the following Annual Reports and audited Financial Statements for the year ended 31 March 2006. The written explanations in terms of sub-section (2)(a) of the PFMA for late tabling of the Reports are:- ROAD TRAFFIC MANAGEMENT CORPORATION The Road Traffic Management Corporation started its effective operations from October 2005 after staff members were seconded from the Department of Transport. The Corporation’s Annual Report and Financial Statements for 2003/04 and 2004/05 have previously not been submitted and the Entity thought it appropriate to submit all the Reports, including the 2005/06 Annual Report at the same time. Collation of information, drafting and vetting of these Reports for the three financial years unfortunately resulted in the late submission. URBAN TRANSPORT FUND (UTF) An unforeseen systems failure resulted in the late submission of the Urban Transport Fund’s Financial Statements and the delay in the auditing of the Financial Statements. I have instructed the Department of Transport to ensure that the outstanding Reports are tabled as soon as possible. I trust this will be in order. Kind regards MR J T RADEBE, MP MINISTER OF TRANSPORT