Report of the Portfolio Committee on Trade and Industry on Budget Vote 32: Trade and Industry, dated 17 March 2006:

Report of the Portfolio Committee on Trade and Industry on Budget Vote 32: Trade and Industry, dated 17 March 2006:

The Committee received a briefing from the Department on Trade and Industry (DTI) on the Strategic Plan and Budget Vote of the Department on 15 March 2006.

The Context

The Director – General outlined the context around which the strategic plan was formulated. These include, achieving and sustaining higher GDP, a need to increase job creation, a need to increase investment, the need to increase exports, broadening economic participation by means of BB-BEE and enterprise development as well as recording levels of consumer and business confidence. Also, the shortage of skilled labour, volatility of the Rand, low inflation and interest rates.

Strategic Objectives

These include promoting direct investment and growth in the industrial and services economy focusing on employment creation. Contributing towards the development and regional integration of the African Continent within the NEPAD framework as well as promoting broader participation, equity redress in the economy and raising the level of exports so that to promote global trade.

Achievements

National Consumer Credit Bill published for comment.
Consumer Bill approved by Cabinet.
Draft Companies Bill discussed with local and international reference team.
Competition Policy Review document finalised.
Effective participation in the 6^th WTO Ministerial Conference.
Ongoing engagement between SACU and US on possible FTA exploratory talks with India.
13 Investment Protection Agreements and Bilateral cooperation agreements concluded.
Apex Fund launched in 5 provinces.
Finalised Codes of Good Practice.

Strategic Goals

Policies and Strategies, for example, Trade policy, WTO, bilaterals, Africa and NEPAD.

Legislation and Regulation, for example, National Lotteries Act.
Enterprise and Industrial Finance, for example, Apex Fund operational on 1 April 2006.
Support for the Strategy; for example, focus on recruiting, developing and retaining skills.

Budget

The DTI’s budget has evolved over the years. As the responsibilities increase so does the budget. Enterprise and Industry development combined uses more than half of the budget (33.7% and 38.7%) respectively. Other than that 8.9% is spent on Administration, TISA is allocated 8.8%, 4% is used for Consumer and Corporate Regulation, 3.5% for International Trade and Economic development and Marketing 2.4%. This is from a total budget of R3 665 900.

Comments

Members’ thorough questions and comments interacted with the presentation critically as the full minutes of the meeting attests. The Chairperson thanked the DG of DTI as well as his colleagues and members for their contribution to the meeting.