House Chair, I think that hon Fubbs is confused. This is Parliament and not Disney World. [Applause.] Let me just spell out where we stand on this issue. The DA supports the Broad-Based Black Economic Empowerment Amendment Bill. [Applause.] This Bill has a potential to promote redress, decrease inequality, promote economic growth and job creation. This is in line with our belief that reconciliation, redress, diversity and delivery are the most appropriate measures to redress the injustices of apartheid.
The Bill before us amends the Broad-Based Black Economic Empowerment, BBBEE, Act of 2003 - the original Act - in the main to do three very important things: firstly, to affirm compliance, which is to criminalise what is known as fronting; secondly, to set down incentive schemes to support compliant enterprises; and thirdly, to establish a commission to scrutinise and monitor compliance.
During the committee stage the DA put a number of proposals to the committee that were duly accepted: firstly, that the commission has the resources to be fully capable of dealing with queries; secondly, that the commission only investigates cases if there is demonstrable cause; thirdly, that the companies listed on the Johannesburg Stock Exchange be required only to provide compliance information and not to be burdened with capricious requests for additional irrelevant data; and lastly, that the appointment of the head of the commission is the joint responsibility of the DTI, the Minister and Parliament.
Let me just say to hon Fubbs that we also proposed to use the definition of "disadvantaged" and not to have this government get into the business of defining race. The apartheid government defined race. We don't think that we should define race, but we lost that battle. There is no backtracking here. We think that what is required is to move towards the definition of "disadvantaged".
Let me just add that we will be seeking last-minute changes, as you know, to ensure that due process and fair procedure are adhered to when it comes to the cancellation of contracts.
Colleagues, the further challenge that you must appreciate beyond this Bill is to ensure that the scorecard, a very important vehicle, firstly, drives genuine broad-based empowerment and prevents the re-empowerment of the already enriched and empowered; secondly, includes self-defined employment equity target compliance; and finally, is nonracial when it comes to enterprise development, education, training and corporate social investments. The scores generated by the application of the scorecard become the basis of the BBBEE compliance and not simply the historical identity of the owner. What matters in this scheme of things is whether empowerment is spread far and wide in the company, the sector and in the economy as a whole. Too often, as we know, the well-connected elite have enriched themselves in the name of black economic empowerment, BEE.
Let me also say that in the DA's plan for growth and jobs, we made the following additional proposals: firstly, to reduce the cost associated with complying with empowerment regulations for small qualifying enterprises by introducing an audit every second year rather than every year; secondly, to introduce an employee bonus scheme for unlisted firms that replicate existing share incentives as we have for listed entities; thirdly, to declare 50% of the value of shares awarded to qualifying employees to be tax deductible to the employer and exempt the full value of any eventual gain from income tax in the hands of the beneficiary; and finally - and very importantly - to work towards distributing shares in some of our country's state-owned enterprises in order to activate dead capital and thereby put financial resources in the hands of poor South Africans. [Applause.]
Colleagues, we live in a country with a history of cumulative race-based exclusion. In the twentieth century the 1913 Natives Land Act, the 1946 Asiatic Land Tenure Act and the 1950 Group Areas Act were the principal instruments - they were not the only instruments, but the principal instruments - of stripping assets from the voteless majority in this country. Therefore, supporting this amending Bill is a contribution to the righting of a historical wrong.
We also know that redress is not enough. We must put our assets to work so that our economy grows with opportunities so that there is a genuinely better life for all. Thank you very much. [Applause.]