Chairperson, state-owned companies are strategic instruments for the industrial policy and core players in the New Growth Path. Infrastructure-related state-owned enterprises, SOEs, such as Transnet and Eskom are in a powerful position to drive growth in the economy of the country. Key sectors of the economy are completely dependent on the availability of infrastructure capacity for their existence and growth.
The Portfolio Committee on Public Enterprises, in line with the department, has a vision to recognise the intrinsic link between the investment of the SOEs and the growth thereof with their customers and suppliers. Procurement policies of the SOEs are meant to promote and support local enterprises and industries in order to expand the country's manufacturing base that will boost exports.
Parliament, this time around, has taken these SOEs towards a paradigm that is not restricted to narrow balance sheet exercises, but to a paradigm that is based on optimising the overall impact of the SOEs on the economy and society at large. During the year under review, challenges faced by the SOEs ranged from the regulatory environment to funding and this made it impossible for SOEs to deliver on their public mandate.
Infranco needs to be mentioned in this regard. It had no licence and found it fairly difficult to play its communication role. Eskom in turn is faced with a much more intricate problem of illegal connections and copper theft. As Parliament we believe that Eskom can do more in developing rural areas through its rural electrification programme.
The Transnet freight rail division will need to expand its infrastructure capacity to increase freight volumes on rail to reduce the number of trucks on the roads. This will reduce road maintenance costs, traffic congestion and accidents that are caused by trucks on the road.
The focus of the committee for the 2011 financial year has been that of job creation and skills development. While we have observed with delight that these SOEs employed efforts to comply with the Employment Equity Act prescripts, we want to further employ them as we did in our interactions to recruit young people both from urban and rural areas so that they can be trained in engineering and scarce skills areas. People with disabilities should not be left out in the process. Together we can do more. I table this report before this august House for adoption. I thank you. [Applause.]
There was no debate.
House Chairperson, I move:
That the report be adopted.
Motion agreed to.
Report accordingly adopted.