Hon Deputy Speaker, Deputy President, Ministers, Deputy Ministers, Members of Parliament and everyone here,it is a privilege to deliver a presentation in support of the Electronic Communications Amendment Bill.
As the ANC we have taken a keen interest in this piece of legislation, because we believe that it will further strengthen our mode of service delivery and improve the quality of life through information and communications technology, which includes the postal services.
The ANC has presided over a growing information and communications technology, ICT, market. The telecommunications market accounts for a contribution of over 3,7% to the gross domestic product, GDP, which is up from 2,8% in 2008. As we speak, South Africa is the 15th largest telecommunications market in the world. Therefore, we have to ensure that this growth is quickly translated into service delivery and the prosperity of our citizens.
The Electronic Communications Amendment Bill deals, amongst other things, with the issues of broadband, and the definition and establishment of the council that will advise the Minister in terms of policy development. As you know, broadband has become a priority project of our country.
Amendments in section 3 deals with the right of the Minister to give policy direction to both the Independent Communications Authority of South Africa, Icasa, and the Universal Service and Access Agency of South Africa, Usaasa. It is an important intervention, because government policy should indeed not be ignored by the regulator or agency. The Act provides required safeguards to ensure that Icasa's independence is not interfered with.
The Bill seeks, amongst other things, to amend section 73 to broaden the scope of the e-rate, which means a 50% discount to entities in terms of connectivity. We are extending the e-rate from only public schools to private schools and also to all health institutions that are established or defined in terms of the National Health Act. Of course, we are also extending the e-rate to universities throughout the country, which we think is a key intervention in order to ensure that South African students in particular are able to have access to ICT facilities.
Clause 42 seeks to provide for an exemption for community broadcasting service licensees from contributing to the Universal Service and Access Fund. Indeed, this has been an unintended consequence in terms of the legislation whereby we created community broadcasting, while at the same time required them to pay into the Universal Service and Access Fund. This amendment will go a long way in ensuring that we cure that defect.
It is important to recall that during the presentation of the Icasa Amendment Bill to this House on 7 November last week, we presented a legislative amendment which is not a stand-alone amendment, but one that works in tandem with this forward-looking Bill presented to you today for your consideration. I am asking this House to approve the report on this Bill. However, the ANC is grateful to the industry and all interested stakeholders that contributed inputs to enrich this process. We salute all of you.
I further wish to express our appreciation to the former Minister and the current Minister and Deputy Minister for their able leadership, guidance and support since the commencement of the process. A special thanks to the director-general and team of the Department of Communications for their contribution, as well as the state law advisers, legal services, contact advisor, committee secretaries, committee assistant and all those who supported the committee during this time.
I must also extend my appreciation to the members of the DA for their extensive engagement on this Bill. Having said so, I hope you are not going to be reshuffled, so that you can continue doing your sterling work in the committee. I thank you. [Applause.]
There was no debate.
Declarations of vote:
Hon colleagues, that the Department of Communications wants to have more control over the ICT sector is no secret. Its attempt last year to impose new draconian laws and create entities that would give it the controlling heights of this dynamic and innovative sector was rightly nipped in the bud. The offending parts of the first draft of the Electronic Communications Amendment Bill were excised. They were referred to the ICT policy review panel that is under way, but they may yet reappear in the Green Paper due for release for public comment later this year.
The amendments before this House today include an ominous new clause which states that Icasa must submit to the Minister a draft of regulations 30 days before their publication, but it does not give him or her the power to intervene or approve the regulations. This is a step that is dangerously close to the old Telecommunications Act that gave the Minister the right to approve regulations.
Icasa can maintain its independence if the letter of the law is strictly applied here. Some of the amendments before us today will help Icasa fast- track its efforts to reduce the cost of communication. The establishment of the National Broadband Council to advise the Minister on broadband policy and implementation should help escalate the roll-out of communications infrastructure and reduce the application bottlenecks in all spheres of government.
However, attempts by the DA to ensure that the Ministry includes representatives from the private sector as well as government in this council was rejected by the ANC members of the portfolio committee. As it stands today, the Minister may appoint people from the private sector, but is under no obligation to do so. This is a mistake, because it is well known that government does not employ the most informed and agile minds in the ICT sector.
The planning and roll-out of communications infrastructure in South Africa needs the best visionary brains behind it if we are to gain any traction in the world ICT rankings and compete effectively in international markets. I urge the Minister of Communications in this and the next Parliament to ensure that the best ICT skills that the country has to offer are included in this council.
The Bill before us today mainly addresses issues of synchronicity and definitions to bring the administration and regulation of electronic communication into line with other legislation. It also attempts to correct some of the dysfunctionality in governance of the entities reporting to the department. But the changes brought about by this amending Bill are not a silver bullet for the institutional dysfunction that continues to exist in the sector.
It is hoped that the policy review process will recommend far-reaching ideas that bring regulated coherence, administrative efficiency and vigour to the sector in order to stimulate innovation in competition in products and services worldwide, and to effectively deliver services to all South Africans. [Applause.]
Deputy Speaker, we have actually jumped the gun a little in tabling the amending Bill before the House today, before the comprehensive ICT policy review process gets under way.
The Minister appointed an ICT sector team to review the regulatory framework of this entire sector, but since this team will only reply and table their final report within the next two to three years, this Bill is necessary to adjust some of the provisions of the Electronic Communications Act. That was the rationale given to the committee and it is on that basis that we participated.
Where serious efforts were made by members of all parties in the committee's detailed deliberation phase to thoroughly assess the amendments and its likely implications, it is indeed regrettable that this very important amending Bill was only introduced in the last months of the Fourth Parliament and that there was great pressure by the executive on us as a portfolio committee to put the Bill through the processes.
The late submission is clearly the result of the protracted instability that existed in the office of the former Minister of Communications, and it is a pity that the relevant Cabinet cluster did not identify the detrimental impact of the political stalemate more than a year ago. It was detrimental not only for the sector, but also broadly for economic development and job creation in our country. An early alert could have prompted the President to make his political intervention much earlier and Parliament could have dealt with these very important Bills much earlier.
Where does this leave Parliament? Whereas Parliament will adopt the amending Bill today, because it is a unanimous recommendation by the committee, it should continue to be vigilant about the very important and constitutionally enshrined role of the communications regulator, Icasa.
As I indicated last week, Icasa is the successor in law of the Independent Broadcasting Authority, which is a Chapter 9 institution. The executive cannot usurp spectrum management and other functions of an independent regulator in going forward.
Firstly, the fact is that no legislative amendment can transform an inefficient entity. It is ultimately only an appropriately qualified and experienced council, in the case of Icasa, and executive staff members rather than political deployees that can turn such institutions around.
Secondly, it is important that committee deliberations on legislation should follow the Rules of Parliament. These processes are important. The courts have in the past made rulings in favour of private institutions, and we cannot allow that to proceed. Thank you. [Time expired.]
Deputy Speaker, the ANC-led government has placed a high priority on reforming the business environment because of its significant influence on the levels of private-sector development and, therefore, on long-term economic growth and poverty reduction.
Having said so, let me remind the House that when the ANC won the first democratic election in 1994, we inherited a number of sectors that lacked structural legislative frameworks. The strategic direction of the ICT and postal sectors remained unco-ordinated and fragmented. For example, state- owned companies such as Telkom and Sentech continue to play the role of referee and player at the same time.
In 1996 the ANC-led government provided much needed leadership in the ICT sector by introducing the progressive legislative frameworks in areas of broadcasting, telecommunications and e-commerce. It is important to note that this process also refers back to the the fact that the ANC-led government has at all times ensured that citizens, industry, labour, academics and government itself are taken along during the development of such an important legislative framework.
In the absence of a leadership that is without a vision, policies are unlikely to deliver. This is not the case with the ANC. We continue to observe the global changes in the ICT and postal sectors. Some of the changes encourage South Africa to adapt and ensure that we remain aligned and relevant to the prospective investor expectations and, most importantly, to develop legislative frameworks that will advance people's lives and ultimately alleviate poverty.
Change is necessary and healthy to ensure alignment, amongst others. There have been a number of changes in our government framework, but some provisions of the Act remain out of line. Without a doubt, matters relating to ICT and ICT policy deserve comprehensive examination and discussion in South Africa. The process of developing the ICT framework will continue.
Thank you for the opportunity to lead such a stimulating and challenging review process. I would like to pay tribute to members of the portfolio committee and all other stakeholders whose commitment, contribution, professionalism and support made it possible for us to undertake an exercise of this nature in a tight timeframe. The ANC supports and endorses the amendment of the Electronic Communications Act, as presented. Thank you. [Applause.]
Bill read a second time.