Hon Chairperson, hon Minister of Trade and Industry, Dr Rob Davies, hon Deputy Ministers and hon members, the ANC supports Budget Vote No 36, the budget for Trade and Industry. In supporting this budget, let me attend to some of the entities over which the portfolio committee has oversight.
The National Credit Regulator is an instrument that contributes to addressing the socioeconomic challenges related to the low wages in the workplace which no longer match the living standards of the majority of South Africans and, as a result, force them to the lending institutions. Challenges have emerged with regard to unsecured and reckless lending by financial institutions, which is also characterised largely by lending for consumption rather than for productive and job creating economic activities. There are problems in debt counselling and court processes as well. The ANC looks forward to a comprehensive amendment of the National Credit Act and the National Credit Policy, which amendments the DTI plans to introduce in Parliament in July.
Let me turn to technical infrastructure institutions and start with the National Metrology Institute of South Africa, NMISA. The selection of the technical infrastructure institutions, all of them, was linked to their strategic importance in supporting the manufacturing sector and exports, and protecting consumers from unsafe and poor quality products and services. These institutions ensure the maintenance of quality standards, compulsory specifications, accredited testing and measurement units. These are primary scientific standards of physical quantities for South Africa, which are equivalent to other national and global measurements.
NMISA provides the international link to traceability for all measurements and also provides reference analysis in the case of measurement disputes. Furthermore, it develops and maintains primary methods for chemical analysis to certify reference materials for South Africa and the SADC region.
South Africa needs sound and effective measurement systems to be able to compete in a globalised economy which emphasises free trade. Scientific development and applied research necessitate modern measurement systems and techniques. As the provider of internationally equivalent measurements and standards, NMISA therefore plays a critical role in underpinning South Africa's industrial and trade competitiveness through developing and maintaining vital elements of the national technical infrastructure. Thus NMISA supports the Industrial Policy Action Plan by ensuring that South Africa's manufactured goods are acceptable and competitive in international markets.
In the 2013-14 financial year NMISA will be focusing on measurement standards for sectors that are prioritised in Ipap, such as the green and energy sectors, metal fabrication, capital and transport equipment, automotive components, agroprocessing, plastics, pharmaceuticals and chemicals. It will also be upgrading the optical frequency national measurement standards for the Square Kilometre Array, SKA.
The National Regulator for Compulsory Specifications, NRCS, regulates the development of and adherence to compulsory minimum product specifications. It ensures that business manufactures, sells imports, and exports goods and services which comply with compulsory specifications in order to guarantee the health and safety of consumers and the protection of the environment, and to make our goods and services competitive in terms of costs, quality and quantity in the global markets.
For the financial years 2013-14 to 2017-18 the NRCS is planning to focus on enforcing technical regulations, with the emphasis on locking out goods that do not comply with compulsory specifications. Also, it seeks to address failures of the market, where businesses may produce, import and sell goods and services that are harmful to consumers and threaten the environment, and may fall short of promised quality, quantity and safety in line with trade metrology.
However, the NRCS acknowledges that it has to strike a balance between the burden of overregulation and the benefits of pragmatic focused regulation.
The NRCS also regulates other products covered by memoranda of understanding with other national departments, namely the Departments of Transport, of Health, of Labour, of Water and Environmental Affairs and of Agriculture, Forestry and Fisheries.
As far as legislation of the NRCS is concerned, the Minister of Trade and Industry, the hon Dr Rob Davies, has amended, with effect from 1 July 2013, Schedule 2 of the Regulations Relating to the Payment of Levy and Fees with regard to Compulsory Specifications. These amendments cancel the existing tariffs for the automotive, chemical, mechanical and materials, electrical, and food and associated industries, and substitute new tariffs.
The NRCS is currently strengthening and enforcing existing and new mandatory standards for the manufacturing sector of our economy as identified in Ipap. These are: energy and water-efficient building regulations; water-efficient requirements for plumbing components; safety and environmental requirements for electrical products in fixed installations; compulsory requirements for processed meat; compulsory requirements for live aquaculture; and safety and environmental requirements for electric vehicles.
The NCRS participates in international forums and regional committees on technical infrastructure, and serves as the co-ordinator and the secretariat for the three SADC committees.
I now turn to the South African National Accreditation System, Sanas, which is a national accreditation body aimed at providing an effective accreditation system. It is internationally recognised and provides a good laboratory compliance and monitoring system. It underpins South Africa's industrialisation, trade and economic development through credible accreditation and improving operational delivery of services.
In its strategic objectives for 2013-14 Sanas includes excellence in operational delivery of services; the provision of accreditation support for industrial development and the protection of the health and safety of the public and the environment; the promotion of accredited results among global partners and the advancement of South Africa's trade and economic development; and the support of regional integration as part of the objectives of Ipap and the trade policy.
Sanas is the founding signatory of the Multilateral Recognition Agreement of both the International Laboratory Accreditation Co-operation and the International Accreditation Forum. At a regional level, it holds the position of regional co-ordinator of and is host to the SADC Accreditation Secretariat. It also undertakes the transfer of skills to the SADC Accreditation Service, and was recently elected to host the secretariat of the newly established African Accreditation Co-operation in support of African technical infrastructure under the African Union.
The SA Bureau of Standards develops, promotes and maintains South African national standards. It keeps South Africa's database of more than 6 500 national standards, as well as developing new standards, and revising and amending or withdrawing existing ones.