27 October 2003

The Chairperson and Members of the Portfolio Committee

on Transport,

Parliament,
CAPE TOWN

Dear Mesdames and Sirs,

Attached is a copy of a self-explanatory letter telefaxed on 13 October 2003 from the Kempton Park venue of SACOB’s 2003 Annual Convention, under cover of a letter requesting that the contents be tabled as a matter of urgency at the Transport Portfolio Committee’s meeting scheduled for 14 October 2003. The Parliamentary Monitoring

Group’s minutes of that meeting contain no reference to any SACOB documentation

having been so tabled, and we have taken the matter up with the Committee secretariat.

Pursuant to the further hearing held, and oral and written submissions made earlier

today, we believe that in the light of the far-reaching social and economic consequences

inherent in implementation of this draft legislation, it should be referred, via the appropriate structures, for consideration by the National Economic Development and Labour Council (NEDLAC).

During consideration of the Report of the Committee of Inquiry into a Comprehensive System of Social Security in South Africa (the Taylor Committee Report), NEDLAC

specifically did not deal with Road Accident Fund issues, as this was the subject of the Satchwell investigation.

The Satchwell Report having subsequently emerged, and with some provisions of the Bill

now before the Committee at variance with some Satchwell recommendations, we firmly

believe that that the Bill should be considered by NEDLAC before it proceeds any further

along the legislative process.

We are furthermore gravely concerned about the constitutionality of certain clauses, and particularly clause 17B relating to collateral benefits, notwithstanding the guarded and equivocal comments of the Chief State Law Adviser in paragraphs 6.3 and 6.4 of his memorandum of 27 October. Insofar as insurance is concerned, no distinction is made between indemnity and sum insurance, for example, and we believe that a successful

constitutional challenge could be made on this ground alone.

SACOB is of the view that in the light of the aforegoing, the Bill requires serious reconsideration, and debate in NEDLAC, before it is again presented to Parliament, and we would urge accordingly.

Yours sincerely,

KEN WARREN

POLICY EXECUTIVE: PARLIAMENT.