Chairperson, this portfolio and its budget hold the key, in many respects, to whether our economy will recover and prosper in the future and whether sustainable jobs will be created, not only to satisfy the sincere needs and requirements of the South African electorate, but also to increase the tax revenue base and to decrease the burden of various forms of grants on the fiscus.
Minister Davies and his director-general are to be complimented for being approachable on many issues of concern and interest to the electorate; and the same applies to our committee chairperson, hon Fubbs.
The task we are facing with this budget is to evaluate whether this budget represents the best value for money to the taxpayers.
Die Departement van Handel en Nywerheid se verantwoordelikheid vir die bestuur van kostesentrums het van 19 tot 13 sentrums verminder, met die gepaardgaande vermindering in die begroting, na die oordrag van funksies na die Departement van Ekonomiese Ontwikkeling. Hopelik sal dit meebring dat die gevalle van twyfelagtige bestuursbesluite en optrede ook sal verminder.
Minister, hoewel u aan die komitee die rasionaal van die funksie-oordragte verduidelik het, maak sommige nie baie sin nie. Byvoorbeeld, hoewel die Nywerheidsontwikkelingskorporasie 'n rol het in ontwikkelingsfinansiering, ten opsigte van laer rentekoerse en ho-risiko lenings, is di entiteit krities belangrik vir volhoubare kommersile nywerheidsontwikkeling. Dit staan sentraal tot die sukses van die aksieplan vir die nywerheidsbeleid, Ipap2.
Tot op hede het die Nywerheidsontwikkelingskorporasie sy voortbestaan op kommersile beginsels geregverdig, en moet gevra word of ons later groot herkapitaliseringsversoeke gaan ontvang. Hoe volhoubaar sal dit wees en hoe gaan dit die historiese kernrol van die Nywerheidsontwikkelingskorporasie beinvloed?
Minister, hoewel u meld dat julle nie in silo's werk en dink nie en dat daar baie oorvleueling gaan wees tussen die Departement van Ekonomiese Ontwikkeling en die Departement van Handel en Nywerheid, moet daar tog in die laaste geval iemand verantwoordelik wees vir so 'n essensile element van handels- en nywerheidsontwikkeling en -groei. Wie sal dit wees, u of Minister Patel? (Translation of Afrikaans paragraphs follows.)
[The Department of Trade and Industry's responsibility to manage the cost centres has decreased from 19 to 13 centres, concurrent with a budget reduction, following on the transfer of functions to the Department of Economic Development. Hopefully, this will also result in a reduction in the number of instances where management decisions and conduct are questionable.
Minister, although you explained the rationale behind the function transfers to the committee, some of them do not make a lot of sense. For example, although the Industrial Development Corporation has a role to play in financing development, in respect of lower interest rates and high-risk loans, this entity is vitally importance to sustainable commercial industrial development. It is central to the success of the Industrial Policy Action Plan, Ipap 2.
To date, the Industrial Development Corporation has justified its existence on the basis of commercial principles, and the question should be asked whether we will be receiving requests for large-scale recapitalisation at a later stage. How sustainable will it be and what influence is it going to have on the historic core function of the Industrial Development Corporation?
Minister, although you state that you don't work and think in isolation and that there will be a lot of overlapping between the Department of Economic Development and the Department of Trade and Industry, in the end someone should ultimately be responsible for such an essential element of trade and industry development and growth. Who will it be, you or Minister Patel?]
The Department of Trade and Industry has shown that capacity challenges do exist that can compromise the ability of the DTI to effectively respond to the needs and requirements of the industries, to ensure an environment where South African companies can be globally competitive.
The dilemma with Cipro, and the awarding of the Enterprise Content Management contract to Valor IT, is but one example where the DTI has dealt with this ineffectively. We are still of the opinion that you could have acted earlier, should have protected the whistle blowers much better, and that you are facing a real problem in meeting the deadlines when continuing with Valor IT as the contract party, while the Auditor-General clearly reported and I quote:
The contract with the successful bidder should be reconsidered and those responsible should be held accountable.
My colleague will elaborate further on that later.
This budget must address, amongst other things, the following: Ipap 2 was long awaited after Ipap 1 did not meet expectations and did not deliver the environment for industries to develop, drive employment and flourish, to be the catalyst for renewed economic development and growth.
The key objectives of Ipap 2 must be to maximise sustainable job creation and to optimise profitable production, in order to attract more private and foreign direct investment, while maximising foreign exchange, forex, earnings via exports. This will also alleviate the pressure on our balance of payments. While industry stakeholders are encouraged by Ipap 2, and while there are elements in support of industrial and employment rejuvenation, concerns still prevail.
One must question the viability of the investment incentives under the Automotive Production and Development Programme for vehicle assemblers. Of vehicles exported, on average 70% are of foreign content, thus there is inadequate downstream beneficiation.
Substantially more sustainable employment opportunities are offered in component manufacturing than with vehicle assembling. Shouldn't we rather invest in and focus more on the development of competitive advantages with mass manufacturing of quality vehicle components, like the catalytic converters?
Die onvermo van die huidige vervoerstelsel wat padvervoer, spoorvervoer en hawens insluit, om groot uitvoertoenames te kan hanteer, is 'n bron van kommer. Ondanks die versekering, is dit ook onduidelik hoe die verskillende departementele begrotings Ipap 2 sal ondersteun. Die afwesigheid van spoorvervoer as 'n lewensvatbare vragvervoer alternatief, asook die kostes en vertragings by vraghouerhantering in hawens, dra veral by dat Suid- Afrikaanse vervaardigers nie globaal kompeterend genoeg kan wees om sterk groei en werkskepping te fasiliteer nie.
'n Belangrike komponent van die nywerheidsontwikkelingsbeleid en aksieplanne moet die vestiging van volhoubare nywerheidsontwikkelingsones wees, met die fokus op optimale werkskepping en uitvoergeleenthede. Die huidige nywerheidsontwikkelingsones lewer nie die gewenste uitkomste nie, en daar sal ernstig na die suksesresepte van uitvoerverwerking- en werkskeppingsones oor die wreld gekyk moet word. Die vestiging van velerlei uitvoerverwerking- en werkskeppingsones sal ook die werkloosheids- en gepaardgaande maatskaplike probleme in die stedelike en plattelandse gebiede kan help aanspreek.
Te min word gedoen as aansporing vir volhoubare werkskepping, uitvoerbevordering en uitvoertransaksies deur die privaatsektor. Die huidige invoer- en uitvoertariefbeleid is ook nie altyd effektief in hul bystand tot Suid-Afrikaanse organisasies nie. Te min klem word ook geplaas op landbouverwante bedrywe vir voedselsekerheid en om valuta te verdien. (Translation of Afrikaans paragraphs follows.)
[The inability of the present transport system, which includes road transport, rail transport and harbours, to cape with big increases in exports is a cause for concern. Despite assurances, it is also not clear how the different departmental budgets would support. The absence of rail transport as a viable freight transport alternative, as well as the costs of and delays in handling freight containers at harbours, in particular, is contributing to the fact that South African producers cannot be globally competitive enough to facilitate strong growth and job creation.
An important component of the industrial development policy and action plans should be the establishment of sustainable industrial development zones, with the focus on optimal job creation and export opportunities. The current industrial development zones are not delivering the desired outcomes, and serious consideration will have to be given to the success stories of export processing and job creation zones around the world. The establishment of various export processing and job creation zones will also help to address unemployment and its concomitant social problems in the urban and rural areas.
Too little is being done by the private sector in terms of encouraging sustainable job creation, export promotion and export transactions. The current import and export tariff policy is also not always effective in providing support to South African organisations. Too little emphasis is also being placed on agriculture-related industries for food security and to earn foreign exchange.] The current BBBEE legislation is not achieving the objective of broad-based beneficiation, and there is too much emphasis on black ownership and shareholding. This results in narrow-based beneficiation rather than broad- based black empowerment. This has contributed to the phenomenon called "tenderpreneurship" and corruption in all spheres of society.
The current Act is also not aligned with other relevant legislation, eg the Preferential Procurement Policy Framework Act, Act 5 of 2000, which again leads to confusion, misinterpretation and corruption. The Act should be re- evaluated in its totality, in the absence of which the majority of black citizens will still be kept dependent on state grants and state hand-outs.
Proof of skills development and transfer of knowledge should be a guaranteed part of any BEE deal and transaction. The current failure of the Act's intentions is largely because of the lack of motivation for acquiring relevant skills and knowledge.
While interactive gambling has not been legalised in South Africa, we need finalisation and clarity on the uncertainty surrounding the legitimacy of interactive gambling within the Sacu region, the advertising of interactive gambling in South Africa and its impact on our economy. Some of these websites are allegedly being operated from within South Africa, only with the official address in a Sacu state. What is the effect of the outflow of funds due to illegal gambling transactions on our balance of payments, especially by means of credit card transactions?
The Lotteries Board, the Distribution Trust Fund and the Distribution Agencies have been the problem children of DTI for quite some time. There were expectations that the new Lotteries Board would make a substantial difference to the pay-out performance to worthy applicants. I hope the unwillingness of the Minister to accept worthy nominations from the DA will not haunt him and the DTI later on.
It is just not good enough that the Lotteries Board prides itself on paying out R1,9 billion over the last year, when there were already unpaid amounts of R7 billion that accumulated last year. That excludes the contributions to the trust fund over the last year from the Lotto operator. One must truly question the ability of the Lotteries Board to effectively channel the benefits to worthy beneficiaries.
Isn't it time for a more effective system to be investigated? For example, a strategic portion of, say, 50% should be transferred to the South African Sports Confederation and Olympic Committee, Sascoc, as the custodians of all sport federations, who must ensure that sport at all levels get the benefits, in line with the South African sport strategy, to boost participation at all levels and to optimise the medal performance of all future national and Protea representatives of colour.
The St Giles Association for the Physically Disabled in Johannesburg is currently facing closure as a result of poor responses, judgement and actions by the Lotteries Board.
Die proses en doelwitte met die aangaan van bilaterale beleggings- en handelsooreenkomste moet heroorweeg word. Daar is min sin in om 'n swak bilaterale ooreenkoms, soos die onlangse Suid-Afrika-Zimbabwe beleggingsooreenkoms, aan die komitee en die Parlement voor te l, indien dit reeds aangegaan en geteken is.
Hierdie getekende ooreenkoms wat met die Zimbabwe African National Union- Patriotic Front, ZANU-PF-geleide regering onderhandel is, spesifiek artikel 11, is nie in die beste belange van Suid-Afrikaanse beleggers nie en het ook nie die uitsprake van, onder andere, die SAOG-tribunaal en die registrering van die uitspraak in Suid-Afrikaanse howe, in ag geneem nie. Dit stuur verkeerde boodskappe uit aan beleggers van Suid-Afrika, asook van ander Afrikalande, oor SADU-, SAOG- en Nepad-prosesse, en regsuitsprake wat selektief deur die departement aangehoor en gebruik word.
Hoewel die Departement van Handel en Nywerheid baie gevorder het onder Minister Davies, is daar nog baie wat gedoen moet word alvorens Suid-Afrika se handel- en nywerheidskapasiteit genoegsaam ontwikkeld sal wees, wat moet lei tot baie sterker werkskepping, ekonomiese ontwikkeling en globale kompeterendheid. Ek dank u. [Applous.] (Translation of Afrikaans paragraphs follows.)
[The process and objectives with regard to the concluding of bilateral investment and trade agreements must be reconsidered. It does not make a lot of sense to submit a poor bilateral agreement, like the recent South Africa-Zimbabwe investment agreement, to the committee and Parliament when it has already been concluded and signed.
This signed agreement, which was negotiated with the government led by the Zimbabwe African National Union-Patriotic Front, ZANU-PF, specifically section 11, is not in the best interests of South African investors and did not consider the ruling of, amongst others, the SADC Tribunal and the registration of the rulings in South African courts either. This is sending the wrong message to investors from South Africa, as well as from other African countries, about SACU, SADC and Nepad processes, and legal rulings that are selectively heard and used by the department.
Although the Department of Trade and Industry has made a lot of progress under Minister Davies, much still needs to be done before South Africa's trade and industrial capacity will be sufficiently developed, which should lead to more far greater job creation, economic development and global competitiveness. Thank you. [Applause.]]