1. INTRODUCTION

The Diamond Second Amendment Bill [B39B-2005] was referred to the Legislature of the Limpopo Province by the NCOP- The Legislature in turn referred the Bill to the Portfolio Committee on Economic Development, Environment and Tourism on 18 November 2005 for consideration. The Committee having considered the Bill reports as follows:

2. PURPOSE OF THE BILL

The purpose of the Bill is to amend the Diamonds Act, 1986, so as to define certain expressions; to prohibit assistance to licences by non-licensed persons at any place where unpolished diamonds are offered for sale; to provide anew for the kinds of licenses that may be issued by the South African Diamond and Precious Metals Regulator; to provide for the issue of temporary diamond buyer's permits and certificates which entitle holders thereof to be in possession of unpolished diamonds under certain circumstances; to make fresh provision for the premises on which unpolished diamonds may be dealt in; to require that unpolished diamonds intended for export purposes must first be offered at a diamond exchange and export centre; to extend the powers of the Regulator and State Diamond Trader; to require diamond producers to offer a percentage of all diamonds produced in a production cycle to the State Diamond Trader; to require a licensee to retain a register in respect of unpolished diamonds for five years and not only two years; and to repeal certain obsolete provisions; and to provide For matters connected therewith.

3. CONSIDERATION OF THE BILL

The Committee met on 24 November 2005 to consider the Bill. NCOP Permanent Delegate, Hon. J. Sibiya, briefed the Committee on the principle of the Bill, The Committee did not conduct public hearings on the Bill as they were expected to submit the negotiating mandate on 29 November 2005. The Committee went through the Bill clause by clause.

4. COMMITTEE'S CONCERNS

The Committee was concerned about die following:

• No labour representative on the Board of State Diamond Trader.

• Purpose of the Act does not state anything on issues of social responsibility i.e. beneficiation, ownership, BEE e.t.c.

4. RECOMMENDATIONS

The Committee recommends that:

• Provinces should be given enough time (three to four weeks) to consider NCOP Bills in order to do justice to the Bills.

• Organised labour representative should be included in the Board of the State Diamond Trader.

5. NEGOTIATING MANDATE

The Committee, having gone through the Bill and supported it, mandates the National Council of Provinces Permanent Delegates to support the Bill with amendments and the recommendations mentioned above.