Hon Chairperson, hon Minister, hon Deputy Minister, members of the portfolio committee, colleagues, Director-General of the Department of Communications and staff, chairperson and other councillors, if they are here, chairperson, board members and chief executive officers, CEOs, of the information communications technology, ICT, sector, the chairperson, board members and the CEO of the state-owned companies, members of the media and distinguished guests, it is my pleasure to introduce, on behalf of the Portfolio Committee on Communications, Budget Debate Vote 27 of the Department of Communications.
Firstly, on behalf of the committee, I would like to convey our sincere condolences to the people and social institutions that nurtured and cared for the late former Minister of Communications, Comrade Roy Padayachie. To his family and political home, the ANC, receive our heartfelt condolences, and our prayers are with you during these trying times.
This is our first Budget Debate Vote after the passing of our beloved, the late hon Nontsikelelo Mavis Magazi, who, during her time, served the people of South Africa with distinction. With the advent of concepts such as digital cities and global villages, the importance of ICT cannot be overlooked. The communications industry plays a vital role in education, information dissemination, cultural development, rural development and agriculture, health, entertainment, national identity and the free flow of information to enhance an open government.
Despite the constitutional guarantees to access to information, the reality is that in South Africa, the cost to communicate is still high. We acknowledge and appreciate the intervention by the regulator to reduce the interconnection rates. However, compared with other emerging economies, our cost to communicate remains stubbornly high. According to the Africa Prepaid Mobile Price Index 2012:
Mobile prices are cheaper in over 30 African countries than they are in South Africa with prices in Kenya and other countries only a fraction of the prices of even the lowest priced services in South Africa. In South Africa, even the modest reductions imposed on termination rates have generally not been passed on to the end user.
I am fully aware that some of you, in particular the operators, are disputing this fact. It's well, good and fine. To this end, as a committee, we will embark on public hearings on the impact of the call termination rate before the end of June 2012. Furthermore, these hearings will not be limited to the call termination rate, but will, in general, include the cost to communicate in the entire communications sector.
The matter of data bundles was raised by the community of Bushbuckridge during the consumer rights awareness campaign on 21 March 2012. To that end we have requested the regulator and the operators to look into this matter. South Africans are complaining that this data bundles issue needs to be addressed. I think we have to adhere to what they are talking about and try to address this matter. If they are wrong, we have to clarify it for them, but this matter needs to be attended to. People can no longer complain about data bundles which they don't understand. Some of them are saying that they buy it and it expires at a certain time; they did not use it, and so on. Someone, somewhere must give guidance and clarity on the matter. [Applause.]
We urge the Minister to consider section 21 of the Electronic Communications Act to encourage the rapid deployment of electronic communications facilities. Furthermore, we urge the SA Broadcasting Corporation, SABC, to comply with sections 10 and 11 of the Broadcasting Act, Act 4 of 1999, in relation to the Public Service and commercial services regarding, among other things, the separation of accounts of the public broadcaster. This should be enforced by the board.
We are clear on the matter that we are going to hold the board of the SABC to account for sections 10 and 11, which call for the separation of accounts. When they come before us they must be able to account for the public service and commercial service separately. We, as this House can no longer ignore the provision of the legislation.
Chapter 9 of the Broadcasting Act of 1999 advises that the Minister must establish an SA broadcast production advisory body to advise the Minister on how the development, production and display of local television and radio content can be supported. We urge the Minister to do so.
In his fourth state of the nation address, the hon President pronounced an infrastructure-led development. I won't go into it at length; we have already dealt with this particular matter. We are, however, concerned, as a committee, that the ICT Infrastructure Development Programme, in the department, has spent only 11,5% of their budget during this third quarter of 2011-12. We are concerned, because that is the division that must lead the infrastructure development, but they have no capacity to spend. I hope what we have said about capacitating the department will ensure that this programme is able to spend because if they don't do so, it is going to disadvantage our people.
We are also mindful about the processes you have started, hon Minister, of engaging the industry, starting with the colloqium you had. We think this is a step in the right direction. As I have indicated, we hope that the 29% vacancy rate that you have talked about will be dealt with. We've no doubt it will, as you have already shown your capability in dealing with these matters.
Access to information for all South Africans is a constitutional right enshrined in the country's Constitution. As such, we appeal to the Department of Communications to lead the industry in a national strategy that will ensure that all people receive broadcasting services, whether it's radio or television, despite their geographical location.
I am raising this matter deliberately, because one of the reasons that our people in rural areas find themselves without services is this notion of population coverage. There is something wrong with population coverage because it is thought of as coverage to the entire country. Our poor people living in rural areas - I will repeat "our poor", because those who can afford it are able to have some alternatives - continue to suffer under the auspices of population coverage. We have to move away from population coverage and face this matter head-on and deal with geographical coverage of the country. [Applause.]
During the presentation to the committee by the department, we came to the conclusion that the department is doing well in trying to deal with the issue of the digital migration processes. However, we have been receiving conflicting messages from the department and other entities. To this extent, we will call upon the department to come before the committee on a date that we will determine, so that we can be given an integrated digital migration strategy in respect of where we are going as a country.
We are also mindful of the pressure of the timeframes as they have been set by us, as a country, to the International Telecommunication Union, ITU, and also to the Southern African Development Community, SADC.
The ANC has resolved that by 2014 all municipal areas must have community radios and publications. It is therefore our joint responsibility, as different spheres of government, to recognise the importance of creating an enabling environment to facilitate the development of a community broadcasting sector.
Once again, I take this opportunity and commend both the Independent Communications Authority of South Africa, Icasa, and Sentech for acting with urgency in reducing the signal distribution cost facing the community broadcasters by 33% for community television and 65% for community broadcasting, in terms of frequency modulations, FMs, and so on. The outcome of this process will ensure the long-term sustainability of community broadcasters.
Bendisithi niza kuliqhwabela izandla iGunya eliZimeleyo lezoNxibelelwano laseMzantsi Afrika kwakunye noSentech. Kanti, banjani na aba abantu? [I thought you were going to give the Independent Communications Authority of South Africa, Icasa, and Sentech a round of applause. Tell me, what kind of people are you?] [Applause.]
Findings from different independent researchers indicate that the Internet is the first communication tool that allows every user, receiver, narrator and broadcaster in the global sphere. Within this context, access to technology affects every sphere of life and with a broadband penetration rate. As we have said, it is unconfirmed and we are not sure. However, compared to the global average of 30% for developed countries and 21% for developing countries, I'm definitely sure that as South Africa we are lagging behind.
Bearing in mind what has been said above, it is therefore befitting that the Department of Communications has sought a 20-20 vision to ensure 100% broadband penetration in eight years' time. This will be in line with the ANC resolution that government should increase access of information communications technology, ICT, services to previously disadvantaged communities.
We have noted in the strategic plan presented by the department before the committee that indeed we are dealing with the matter of an integrated broadband master plan that will facilitate capital investment, innovation and rural access. In this regard, we urge the department to finalise the broadband strategy and consolidated national broadband plan. Through this platform, our communities will be empowered with access to information and two-way communication with government, service providers and amongst themselves. Uncertain markets coupled with the escalating demands for digital alternatives have meant sustained and progressive mail volume decline, and this is the new reality. We are saying, hon Minister, that we understand that the decline of mail volume is going to cause a lot of challenges to the Post Office. Indeed, one of the issues that we are raising is that the immediate task of the newly appointed board of the SA Post Office, Sapo, is to come up with a strategy to mitigate the mail volume decline and a plan to sustain the Post Office moving forward.
The ANC-led government always puts diversification at the centre of our people's interests. To this end, we support the final realisation of the commitment which we made in the 1998 White Paper on Postal Policy by finally enacting processes that assisted in the establishment of the Postbank. However, Minister, I must indicate that we need to indicate as a committee that the department should to do more around the issue of corporatisation of the Postbank. To be honest, we are not satisfied that more work has been done around this particular area. I am raising that as a member of the ANC, the party that advocated that the Postbank must be established. We are not happy with the progress. We hope that the department will put in more effort and make sure that the next time they come to report some progress will have been made will have been made to this effect.
In conclusion, I wish to take this opportunity to thank the Minister, the Deputy Minister, the director-general and the entire department for taking the lead in this sector; state-owned enterprises for their continued effort as the implementing arm of government; and the industry for its robust contribution. We are also encouraged that the budget, as requested, is sufficient to address the ICT requirements and will support the state of the nation address imperatives in terms of infrastructure development, e- learning and job creation.
I would also like to take this opportunity to thank the parliamentary support staff assigned to the Committee on Communications, and also my personal assistant, Ms Beverly Walters, who is currently on sick leave.
Before I conclude, I also want to reflect on the fact that three of our members are not here today: hon Morutoa and hon Schneemann, who are sick; and hon Muthambi, who is abroad due to work engagements.
I would like to take this opportunity to conclude with the following words borrowed from an American industrialist, the founder of Ford Motor Company and sponsor of the development of the assembly line technique of mass production, Henry Ford:
Coming together is a beginning. Keeping together is progress. Working together is success.
Working together we have done and will indeed continue to do more. The ANC supports the Budget Vote. [Applause.]