Report of the Portfolio Committee on Mining on the Geosciences Amendment Bill [B 12 – 2010], dated 08 September 2010.

 

The Portfolio Committee on Mining, having considered the subject of the Geosciences Amendment Bill [B 12 - 2010] (National Assembly – Section 75), referred to it and classified by the Joint Tagging Mechanism (JTM) as a Section 75 Bill, reports as follows:

 

1.         Background

 

The Geosciences Amendment Bill, 2010 (“the Bill”), tabled in Parliament on 14 June 2010 and referred to the Portfolio Committee on Mining for consideration and reporting, seeks to amend the Geosciences Act, 1993. The Bill was approved by Cabinet on 02 December 2009 for public consultation and for introduction in Parliament. The Bill effects certain amendments of a technical nature to the principal Act.

 

The main objects of the Bill are the following:

to mandate the Council for Geosciences (the Council) to be the custodians of geotechnical information;

to be a national advisory authority in respect of geo-hazards related to infrastructure and development;

to undertake reconnaissance operations, prospecting research and other related activities in the mineral sector; and

to add to the functions of the Council.

 

The Bill seeks to put mechanisms in place to address problems which are associated with infrastructure and development on dolomitic land in the Republic. It empowers the Council to be the custodian of all geotechnical data, for the purpose of compiling a complete geotechnical risk profile of the country. It further enables the Council to become the custodian of technical information relating to reconnaissance operations and mining.

 

Subsequent to the briefing by the Department of Mineral Resources, the Committee invited selected organizations to make written and/or oral submissions and testimonies. The public hearings were conducted on Wednesday, 01 and Friday, 03 September 2010, where the Committee heard submissions and testimonies from five organizations, namely:

The South African Institute of Engineering Geologists;

The Geological Society of South Africa;

The National Union of Mine Workers;

The National Housing Builders Registration Council; and

The Construction Industry Development Board.

The public hearings process was followed by consideration of the submissions received and clause by clause deliberations on the Bill.

 

This report therefore outlines an overview of key issues arising from the oral submissions received by the Committee and further provides an account of the Committee’s deliberations on the Bill.

 

 

2.         Overview of submissions received by the Committee

 

The South African Institute of Engineering Geologists

 

The South African Institute of Engineering Geologists (SAIEG) is a voluntary organisation representing the profession of engineering and environmental geology. Members are required to be registered natural scientists as prescribed in The Natural Scientific Profession Act (Act 27 of 2003). The SAIEG represents a profession of approximately 200 engineering and environmental geologists. Engineering

Geologists investigate and provide geologic and geotechnical recommendations, analysis, and design associated with human development since primarily called geological geoscientists.

 

According to the SAIEG, the Council for Geosciences has over the years performed and continues to perform a vital support role to this industry in the provision of primary information in the form of map information, data archives and data products that are indispensible for performing our role to the above mentioned economic sectors.

 

The SAIEG comments and concerns on the Geosciences Amendment Bill were the following:

Geohazards definition – definition added was acknowledged.

 

Objects of Bill in the preamble: The Council for Geosciences is defined as being a “mandatory advisory authority”. On the Objects of the Council in section 2(c), the Council is referred to as a “national advisory authority”, apparently not “mandatory” in this instance. The definition of the Council as “mandatory” might clash with the role of others as advisors in certain instances, leading to conflict, particularly when the Council did not have high-level expertise in certain specialised fields.

 

Section 1(f)(c): The NHBRC noted that landslides and slope failure might be described as geohazards. Although geological investigations for input into the slope stability analyses were carried out by suitably trained and experienced geoscientists, the design of remedial measures and the analytical responsibilities pertaining to slope stability fell directly under the responsibility of professionally registered geotechnical engineers. A potential conflict between the investigation and design professions was highly likely if Geosciences professionals became regulators in this field of expertise.

 

Section 3: Given that the Council for Geosciences wished to be mandated a more direct role in the management and control of geohazards, it would seem pragmatic that the board also had representation from the geotechnical industry. For the board to exercise its responsibilities in the control over the performance of this core function of the Council as is required in section 4 of the Bill, a representative from the geotechnical fraternity would be surely required to guide the relevance of the geotechnical responsibilities of the Council and align them with the geotechnical industry in the country.

 

Section 4(c): While applauding the creation of a national databank of geotechnical information, the SAIEG remained concerned that breaches in confidentiality might occur. In most databanks the owners of information were allowed to define the extent to which information was made available. As an example, it might be made known that a geotechnical investigation had been carried out over an area but the owner of the data might not wish to release the results for which he had paid, often large sums, into the public domain. The confidentiality of information and possible conflict with the copyright act needed to be addressed.

 

Section 4(eA) - Review and evaluate all geotechnical reports in respect of geohazards that may affect infrastructure and development at prescribed tariffs: The scope of engineering geological and geotechnical investigations meant that volume of reports was produced annually dealing with engineering geological investigations, not to mention geotechnical engineering investigations for infrastructure and development. Geotechnical engineering reports were further subject to the control of Engineering Council of South Africa (ECSA) Codes of Practice and were engineering in nature and not geoscientific and could not be adequately evaluated by geoscientists alone. The SAIEG operated closely with the Council for Geosciences in many areas and thus had a fair understanding of the level of expertise and staffing levels within the Council. The organization was of the view that the Council in its current state would not be able to effectively carry out the mandate as envisaged in the Bill. The volume of work entailed in review and evaluating of all these reports could delay approval of development by months if not eventually years and could therefore cause development and growth to grind to a halt. The effective evaluation of related geotechnical engineering reports with complex engineering design inputs could, in the majority of cases, not be carried out by the majority of the Council staff or in most cases by any person with only a geological background.

 

Section 4(g) - Conduct investigation and render specialised services to public and private institutions: The SAIEG regarded this as unfair competition. It was apparent from the wording of this clause that the Council for Geosciences would be mandated to carry out geotechnical investigations that could place it in competition with an established industry. The result would be unfair competition by a state institution against the private sector using state subsidised resources. The SAIEG believed that the resources of the Council would be better used in research, rendering of specialised services not available from the geotechnical sector, and co-operating in the education of all who operated in or were dependant on the geotechnical professions and that this mandate would detract the Council from its vital responsibilities in this regard. Furthermore, under the current wording of the Bill, the Council would be entitled to use data taken from professionals operating in the private sector at no charge and use it to compete with the same professionals. A further concern was that, there was a conflict of interest in that the Council for Geosciences was able to operate as providers of services in areas which they themselves regulate, making them both 'player' and 'referee'. The SAIEG found this totally unacceptable in any context.

 

The Geological Society of South Africa

 

The Geological Society of South Africa (GSSA) is a “not-for-profit” voluntary association which is a learned and professional society existing for the benefit of its members and for the earth science professions.

 

According to its constitution, the principle objectives of the society are:

to promote and advance the earth sciences and earth science professions;

to encourage and uphold the highest professional and ethical standards among its members / fellows;

to represent earth scientists in South Africa and elsewhere,

to promote co-operation and synergy between related structures and societies including, but not limited to Africa; and

to function for the benefit of its members and for the public good.

 

During the consultation process, there were essentially six issues as documented in the Department of Mineral Resources' responses to the GSSA’s comments and concerns, and these were the following:

The GSSA agreed that for the object of the Bill to be achieved, there would have to be an expansion of skills and resources in the Council for Geosciences which would necessitate an increased budget. The GSSA noted that there was an increased budget in the proposed amendment, however, it felt that it must reiterate that this must be an ongoing commitment, especially in view of the current financial difficulties that the Council was facing. In addition, the GSSA noted that there was no detail in how the increased budget had been calculated nor what the increased expenses will be targeting.

 

The GSSA pointed out that the technical and ethical competence of individuals within the geoscientific profession was covered by the GSSA, South African Council of Natural and Scientific Professions and the South African Mining Codes (SAMCODES).The Department’s response appeared to be concerned with the use of the Council as a watchdog regarding exploration hence their term “project expenditure”.

 

 The GSSA expressed its concern regarding the capacity of the Council to be responsible for the petroleum sector. The GSSA agreed with the Department’s response to the effect that the Bill would be amended to remove reference to the petroleum sector.

 

The GSSA expressed its concern that the amendment to the Bill excluded the GSSA from specifically nominating a representative of professional and academic expertise. The Department’s response was that, the Bill made provision for the Minister to appoint such an individual and the GSSA still had grave concerns with this amendment. The GSSA also pointed out that the organization represented the majority of geoscientists in South Africa, particularly those with significant professional and academic expertise and therefore felt that it was in a better and more informed position than the Minister or the Department. Further to this point, the GSSA noted that the present incumbent that the organization nominated had attended all the Council Management Board meetings in the past year while the Department representative had not attended a single one.

 

The GSSA expressed its concern regarding the use of what they called a rather ill-defined term “exploration and prospecting research” within the bill and was still unclear on what this meant. The Department’s response showed a misunderstanding. The organization proposed that the words ”geotechnical research” be used.

 

The GSSA agreed with the Department’s response in that the amended bill does not allow the Council to undertake any mining development or activity.

 

The National Union of Mine Workers

 

According to the National Union of Mine Workers (NUM), the South African mining sector continued to experience unique challenges related to health and safety and these required appropriate legislative measures that would assist to deter the situation. The National Union of Mine Workers provided that it continued to engage other stakeholders on the best acceptable practice that would help to alleviate the problems associated with health and safety in the mining sector. In May 2009, in its National Congress, the union resolved the following: “Through the Mine Health and Safety Council force the mining industry to develop more advanced geophones technology capacity for earlier signs of possible seismic events”.

 

The NUM appealed that the Bill should ensure that the Council for Geosciences was well equipped and in a position to contribute to safety in mines. The NUM believed that:

The Council for Geosciences should be in a position to work with related stakeholders such as Mintek to develop technologies that could detect and give early signals of seismic events as this would save many lives.

 

The Bill should ensure that the Council has a role in ensuring safety in the mines by mandating the mining industry to develop systems that would assist to detect seismic activity in the mines.

 

The Council should be constituted in a manner that would complement the State-Owned Mining Company as this would strengthen the role of the State in exploration for purposes of mining which would not necessarily be conducted by the Council.

 

The Council should improve its relations with the Mine Health and Safety Council and Mintek and establish a working relationship with the yet to be established State-owned mining company in order to develop technologies that would detect seismic events in the mining sector.

 

The NUM emphasized that adequate funding was central for the effective functioning of the Council for Geosciences and recommended that the Bill should make proper and adequate provision for the funding of the Council. The NUM further recommended that there was a need for an improved coordination between the Council for Geosciences, the Mine Health and Safety Council, Mintek and the State-owned mining company. This would ensure safety in mines, strengthen government’s function to explore minerals and ensure information on technology development as safety in mines was an important aspect and should be central to the agenda of the Council for Geosciences.

 

 

 

 

The National Housing Builders Registration Council

 

The National Housing Builders Registration Council (NHBRC) was established in terms of the Housing Consumers Protection Measures Act (Act No. 95 of 1998 - as amended). The NHBRC was primarily established to protect the interests of housing consumers and to regulate the home building industry. The NHBRC has delivered valuable services to the South African home building industry since 01 December 1999, commencing with the statutory requirement for registration of all home builders, as well as compulsory enrolling all residential housing units to be constructed. This by implication ties registered home builders to a strict code of conduct firstly, and secondly compliance with prescribed technical structural requirements that have to be met to ensure structural integrity of the residential unit.

 

Right from the onset, and before the establishment of the legislation that entrenched NHBRC as a statutory body, the expertise residing in the Council for Geosciences was recognized. Also the independence of the Council for Geosciences, and its ability to serve the needs of the built environment, and specifically the homebuilding industry objectively, was considered paramount to the NHBRC in delivering on its mandate. The following actions were documented in the NHBRC Home Building Manuals, and which by Section 12 of the Housing Consumer Protection measures Act prescribed the technical requirements to be met by both engineers and home builders. The section reads as follows:

 

The Home Builder shall appoint a Competent Person to investigate any proposed townships or existing township areas which are underlain by dolomites/limestones. The Competent Person shall prepare a clearly motivated report in which the township stability is zoned in terms of Part 1, Section 2, Table 8 in accordance with prevailing professional practice. The report must detail any precautionary measures which are required to reduce the risk of sinkhole formation / subsidence and any restrictions on land usage, layout, erf sizes, density, services, etc. The report shall be submitted to the Council for Geosciences for their confirmation that the investigations conducted on the stability of dolomites/limestones and referred to in the report are, in their opinion, consistent with sound professional practice and that the investigations meet all legal requirements pertaining to such stability investigations.”

 

With regard to the Geosciences Amendment Bill, the NHBRC commented as follows:

 

Section 2 of the Memorandum on the Objects of Bill: The NHBRC supported the reference to the Council for Geosciences as a mandatory national advisory authority. However, in the Amendment Bill, the wording is not repeated, and it might therefore not be seen as a mandatory requirement, to have development proposals in areas identified with geohazards submitted to the Council for Geosciences for review and comments. This would negate the provisions captured specifically within the NHBRC technical requirements to ensure safe and durable tenure solutions especially in the subsidy sector. Also, it was noted that the previous (Geosciences Act) notation referring to only “infrastructural development" was used in both the “Objects of Bill,” section 2 and “Summary of Bill”, section 3. This reference was changed and reflected correctly in the Amendment Bill to read “Infrastructure and development”, but it should be ensured that this was correctly reflected throughout the Bill.

 

Section 2(c) – Objects of the Council: The Council is referred to as a “national advisory authority”. NHBRC believe that the word “mandatory” should be included as per above. This would ensure that all developments in areas identified as complying with the geohazard definition will be submitted for review and comments.

 

Section 3(b) – Management Board: No provision was made for any representation from the Department of Human Settlements, or the NHBRC. The organization therefore believed that this might be an oversight, and that provision should be made for at least representation from NHBRC who by virtue of its mandate was operating as a regulating authority in residential development, and more specifically subsidy housing delivery nationally.

 

Section 4(5)(1)(eA) – Functions of Council: NHBRC applauded the intention of the Council to review all geotechnical reports in respect of geohazards nationally. The organization also needed to caution the fact that this provision would demand extensive capacity to be created by Council for Geosciences. In the absence of capacity, this provision might create an untenable bottleneck and delay for all infrastructure and development projects nationally.

 

Section 4(5)(1)(g) – Functions of the Council: NHBRC saw this provision as problematic, especially where the Council may be called upon to do investigations, and then to review and provide comments on same. This would create a “judge and jury” scenario, and would not be accepted in the built environment. Also, this would expose the Council for Geosciences to possible charges of negligence and therefore appropriate insurance would need to be put in place. Council for Geosciences would also effectively compete with other professionals. The NHRBC proposed that the Council for Geosciences concentrate on pre-feasibly investigations for strategic planning, and mapping of same, rather than involving themselves in detailed Phase 1 and 2 investigations, and which had the potential of causing an industry outcry.

 

Section 4 (5)(2)(f) – Functions of the Council: The word “mandatory” should be added to enforce the Council for Geosciences’ function as a national mandatory advisory authority.

 

Section 5(b)(3) – Functions of the Council: All geotechnical reports, cannot be reviewed and be commented on by the Council for Geosciences (refer Section 4 (5)(1)(eA) – Functions of Council above). A similar description and only demanding review and comments on areas to be developed in identified geohazard conditions should be applicable.

 

The NHBRC supported the Bill with the proposed amendments.

 

 

 

 

 

 

 

Construction Industry Development Board

 

The inputs by the Construction Industry Development Board (CIDB) were based on its mandate and function. Public and private sector clients, natural scientists and engineers in the built environment, developers other stakeholders in the building, civil, commercial and industrial property sector, researchers, students and academics in the soil and Geosciences field,  were presumed to be directly involved with the work of the Council for Geosciences. Although the work of the Council for Geosciences was critical for the building and construction industries, it was not possible for the CIDB to have a direct involvement in the work of the Council.

           

The intention of the CIDB’s submission was to support stakeholders that played a direct role in using geotechnical information/Geosciences in infrastructure development. The CIDB wished to first and foremost support the intention of the Bill. The organization also wished to endorse specifically the submission of the SAIEG and, to some extent, that of the NHBRC. Where the two organizations disagree, the CIDB would support the SAIEG. The CIBD specifically wished to draw attention to the following issues in support of their stakeholders:

Capacity issues: The Bill was ambitious in its mandate in that the Council for Geosciences was expected to do a lot of work, which might be impractical.

 

In the Objects of Bill, the Council for Geosciences is defined as being a “mandatory advisory authority”, but later on in the Bill, the Council is described in section 3(c) as a “national advisory authority”. It might serve the affected industries better if the definition was “national advisory authority” rather than “mandatory advisory authority”.

 

The mandate to operate as service providers while also regulating these areas was seen to create a conflict of interest. It was always good to separate these areas to avoid this obvious conflict of interest. Other service providers would not take kindly to this and might actually see the Bill in its totality as being unfair.

 

The definition of geohazard might need further expansion and refinement, especially as it began to differentiate between specific areas like landslides and slope failures on the one hand and remedial measures on the other versus the professionals that dealt with these issues. Also, with reference to “Review and evaluate all geotechnical reports in respect of geohazards, that might affect infrastructure and development at prescribed tariffs”, might create both the capacity challenges based on definition provided and a challenge with the professionals evaluating “all” geotechnical reports.

 

Key issues emerging from the consideration of the Bill and public

hearings

 

Having considered the Geoscience Amendment Bill [B 12 – 2010], the Portfolio Committee on Mining welcomed the amendment of the Geoscience Act, 1993. However, having looked at the submissions received, the Committee felt it necessary to propose some amendments after taking into account issues raised by the organizations.

 

 

4.         Recommendation

 

The Portfolio Committee on Mining having considered the Geosciences Amendment Bill [B 12 – 2010] (National Assembly – Section 75) reports the Bill with amendments [B 12A – 2010].

 

 

Report to be considered.