PRESENTATION TO THE PORTFOLIO COMMITTEE ON WATER AFFAIRS AND FORESTRY
WATER SERVICES AMENDMENT BILL
6 OCTOBER 2004
Water Boards are creatures of stature
Their primary activity is to provide water services to other water institutions (section 29 of the Water Services Act (WSA)
Water Boards are enabled to perform other activities (ancillary activities) subject to compliance with the WSA
The ancillary activities may include:
- consulting services (engineering, scientific, environmental)
- infrastructure development - utility management
- training and capacity building - accepting industrial effluent
- catchment management services
- providing water and sanitation services
The ancillary activities are ringfenced
They bolster Water Boards' revenue They reduce marginal costs to regulated business This enables Water Boards to contain the tariff increase for the benefit of the consumers
They enable Water Boards to respond accordingly the water policies of government
Sections 28(l)(c) and 29 of the WSA indicate that that the Activities of Water Boards are territorially restricted (confined to service areas)
Water Boards do not have powers to undertake transnational operations
The amendment seeks to change this
There are difficulties with the Bill as it now stands
The proposed amendment seeks to grant the Minister of Water Affairs and Forestry in consultation with the Minister of Finance powers to authorise Water Boards to perform activities outside the boarders of the Republic of South Africa (section 30(4)) It reads as follows: "The Minister may, in consultation with the Minister of Finance, authorise a Water Board to perform an activity outside the boarders of the Republic."
Our preference: a legislation effectively granting powers directly to Water Boards to perform ancillary activities outside South Africa
Such powers may be exercised subject to guidelines determined by the Minister in consultation with the Minister of Finance and other Ministers
Our proposal: section 30 (4) be amended to read as follows: "a water board is authorised to perform activities outside the boarders of the Republic of South Africa subject to guidelines and parameters determined by the Minister in terms of section 30(3)"
The guidelines contemplated in section 30(3) will be determined in advance and may be amended from time to time by the Minister in consultation with the other three Ministers
The Legislature also has to expressly deal with the issue of the area in which Water Boards can perform ancillary activities in South Africa In terms of section 29 the Water Boards are confined to their respective service areas
This is in respect of the primary activities
The WSA is silent as to where ancillary activities may be performed
A distinction should be drawn between primary and ancillary activities of the Water Board
The primary activities should be performed within the service areas which may be extended on application to the Minister (section 28(l)(c) )
The Water Boards be enabled to perform ancillary activities anywhere in the South Africa
This will require an addition of the following subsection to section 30:
"(5) A water board may perform its other activities outside its service area in the Republic of South Africa."