Questions & Replies: Economic Development
2012-12-31
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Reply received: December 2012
QUESTION NO 3420
DATE OF PUBLICATION: 21 November 2012
Mr J H Steenhuisen (DA) to ask the Minister of Economic Development:
Whether (a) his department and/or (b) any entity reporting to him sponsored any (i) event and (ii) promotion hosted by The New Age newspaper since its establishment; if so, in each case, (aa) what was the nature of the event or promotion, (bb) on which date was it held, (cc) what amount was paid, (dd) for what purpose, (ee) from which budget were the funds derived, (ff) what were the expected benefits to his department and (gg) what actual benefits were derived from the sponsorship? NW4339E
Reply
The Economic Development Department and the entities reporting to it have not sponsored any (i) event and (ii) promotion hosted by The New Age newspaper since its establishment.
Reply received: December 2012
PARLIAMENTARY QUESTION NO 3382
DATE OF PUBLICATION: 23 NOVEMBER 2012
Mr S B Farrow (DA) to ask the Minister of Economic Development:
(1) (a) How many copies of each annual report that was produced by (i) his department and (ii) the entities reporting to him were commissioned for print in the 2011-12 financial year, (b) how many copies were actually printed and (c) what were the (i) total and (ii) individual costs of printing these reports;
(2) (a) who printed each specified report, (b) how was the specified printer decided upon and (c) on what date did the specified printer deliver the report to the specified entity;
(3) whether any of the specified reports that had been printed were found to be unsatisfactory; if not, what is the position in this regard; if so, in each case, (a) which reports, (b) for which entity, (c) by which printer, (d) what action was taken and (e) what were the costs? NW4287E
REPLY:
Economic Development Department
1) (a) 250 hard copies of the EDD annual report were printed.
(b) The cost of printing the EDD annual reports was R127 908.
(c) The cost of design, layout and printing of 190 A4 Annual Report in full color including photos on a glossy paper was R91 428. The total cost of 60 digitally printed copies and 5 copies and 5 discs was R91 428.
2) (a) The service provider, Spot The Print, designed, printed and did the layout of the EDD annual report.
b) The open procurement processes within the EDD were followed and three
quotations were sourced from service providers. Service providers had to meet several criteria viz. the 80/20 adjudication system. The service provider that scored the highest was selected as the preferred provider for printing the EDD annual report.
c) They delivered 60 copies on Thursday 27 September 2012 and a further 190 copies were delivered on 3 October 2012.
3) None of the copies were found to be unsatisfactory.
Industrial Development Corporation
1) a) 1500 hard copies were printed and 2000 electronic USB disks.
b) Printing costs were R420,500.
2) a) Ince was contracted to produce and print the report.
b) Ince was appointed after an open tender process was conducted in adherence with the IDC's procurement policy.
c) The report was delivered on the 24August 2012.
3) None of the copies were found to be unsatisfactory.
Khula
1) a) 2000 hard copies were designed and printed at a total cost of R232,615.
2) a) IE Communications was contracted to design and print the annual reports.
b) Internal procurement processes were followed and IE Communications was selected on the following basis:
o Cost effectiveness;
o Capacity and skills available to produce annual report within the deadline;
o Suitable design, and IE Communications scored the highest in terms of the PPPFA.
c) The report was delivered on 29 August 2012.
3) None of the copies were found to be unsatisfactory.
Samaf
1) a) Printed version 1200 and CDs 200.
b) R150 008.
2) a) Kashan Advertising was contracted to design and print the annual reports.
b) Kashan Advertising was selected based on scoring in terms of the PPPFA and the quality requirements of samaf.
c) On 14 September 2012.
3) None of the copies were found to be unsatisfactory.
ITAC
1) a) 500 copies of the 2011-2012 Annual Reports were printed.
b) The total cost of printing the annual reports was R105 974.
2) a) The reports were printed by TalkingHeads Advertising.
b) Requests for quotations were sent to four service providers.
TalkingHeads Advertising met all the requirements, and quoted the lowest.
c) Annual Report was delivered to ITAC on 22 August 2012.
3) None of the copies were found to be unsatisfactory.
Competition Commission
1) a) The Competition Commission printed 1500 copies of the 2011/12 Annual Report at a cost of 252, 282.
b) The total cost incurred for design, layout and printing was R364, 768.
2) a) Blackmoon Design and Advertising was appointed as the service provider for design, layout and printing.
b) An open tender process was used.
c) The reports were delivered on 31 August 2012.
3) None of the copies were found to be unsatisfactory.
Reply received: November 2012
QUESTION NO 3290
DATE OF PUBLICATION: 16 November 2012
Mr D A Kganare (Cope) to ask the Minister of Economic Development:
(1) Whether the Government has abandoned the (a) Reconstruction and Development Programme (RDP), (b) Growth, Employment and Redistribution Programme (Gear) and (c) Accelerated and Shared Growth Initiative for South Africa (Asgisa) policies; if not, what are the relevant details, in each case; if so, why, in each case;
(2) whether the New Growth Path replaced these policies; if not, what is the position in this regard; if so, (a) how and (b) what are the further relevant details;
(3) whether he has assessed the successes and failures of (a) the RDP, (b) Gear and (c) Asgisa; if not, why not, in each case; if so, what are the relevant details, in each case;
(4) whether he will make a statement on the matter? NW4181E
REPLY
In order to contextualise the questions posed, it is necessary to set out policy development pressures and the link between current policy and previous policy documents.
The New Growth Path was developed in reference inter alia to the following:-
1. It identified the contemporary economic challenges facing South Africa, including the onset of the recession in 2009.
2. It gave expression to the electoral mandate of 2009, particularly the emphasis on decent work.
3. It drew heavily on previous government policy documents and initiatives, drawing lessons from successes and identifying gaps that needed to be responded to, and thereafter incorporated relevant elements of previous policy documents in the new framework.
For example, AsgiSA emphasises infrastructure development: the NGP expanded the concept, connected it to growth opportunities across a number of sectors and identified it as a "jobs driver".
The RDP advanced the view that development was both a source of growth and the purpose of economic growth. This view has been mainstreamed across the economic drivers in the NGP.
Gear addressed macro-economic challenges between 1997 and 2000. The NGP set out a developmental package consisting of macro-economic strategies, micro-economic measures and stakeholder commitments that can lead our society a new growth trajectory and achieve a higher, sustainable expansion in decent work opportunities and in output. A crucial issue in the NGP is the inter-relationship of these three key areas and the key trade offs (and synergies) that need to be managed.
4. It reflected the significant changes to the external environment, such as the emergence of China, India and Brazil as key economic players; global concerns around climate change; and new economic opportunities on the African continent.
As the economic strategy of government, it is a synthesis between the detailed policy work conducted since 1994, the new demands this administration had to respond to in 2009 and the electoral mandate of government.
The reply above covers the matter significantly, making a further statement on the matter unnecessary.
Reply received: December 2012
QUESTION NO 3261
DATE OF PUBLICATION: 16 November 2012
3261. Mrs D Robinson (DA) to ask the Minister of Economic Development:
(1) Whether (a) his department or (b) any entity reporting to him, placed any advertisements in The New Age since the inception of the newspaper up until the most recent date for which information is available; if not, in each case, what is the position in this regard; if so, (i) which entity placed the advertisements, (ii) on what date was each advertisement placed, (iii) what was the nature of each advertisement and (iv) what amount was spent on each advertisement;
(2) whether any of these advertisements were placed through the Government Communication and Information System (GCIS); if not, what is the position in this regard; if so, what are the relevant details of the advertisements placed through the GCIS;
(3) whether an independent analysis was conducted by his department prior to placing advertisements to ascertain whether The New Age is read by the intended target market; if not, why not; if so, (a) who conducted the analysis and (b) what were the main (i) findings and (ii) recommendations of said analysis;
(4) whether any independent studies of said advertisements were conducted to ascertain whether they were effective within the relevant target market; if not, why not; if so, (a) who conducted the analysis and (b) what were the main (i) findings and (ii) recommendations of said analysis? NW4150E
Reply
The Economic Development Department and the entities reporting to it did not place any advertisements in The New Age since the inception of the newspaper.
Reply received: December 2012
QUESTION NO 3180
DATE OF PUBLICATION: 7 November 2012
Mrs D Robinson (DA) to ask the Minister of Economic Development:
(1) Whether his department is currently subscribed to The New Age (TNA) newspaper; if so, (a) how many subscriptions does his department have, (b) when was each subscription initiated, (c) what has been the annual subscription fee for each specified subscription since it was initiated and (d) what is the exact purpose of each subscription;
(2) whether a discount was negotiated for any of the specified subscriptions; if so, (a) for which specified subscriptions and (b) what discount in each case;
(3) whether his department has mass-purchased the TNA on an ad hoc basis since the inception of the newspaper; if so, (a) on what dates, (b) how many copies in each case and (c) why were the papers purchased in each case;
(4) whether (a) the publishers of the TNA and (b) any other entity donated copies of the paper to (i) his department and (ii) any entity reporting to him; if so, in each case, (aa) which entity donated the papers, (bb) to which entity were they donated and (cc) how many copies were donated? NW4020E
Reply
(1) The Economic Development Department subscribed to 23 newspapers and magazines in 2012/13 – that is, most major publications in South Africa as well as selected international and trade publications. The subscriptions are on behalf of the Ministry, policy staff and senior managers.
The subscriptions were as follows in 2012/13:
· Avusa (incorporating Business Day, Financial Mail, Sowetan, Sunday Times and The Times,): 58 subscriptions for all the different papers, at an annual cost of R41 279,08.
· Caxton (the Citizen): 5 subscriptions at an annual cost of R2078,58.
· Independent Newspapers (which includes the Argus, Cape Times, Pretoria News, Star, Saturday Star and Sunday Independent): 40 subscriptions for all the newspapers, with an annual cost of R26 123,78.
· International publications (which includes the Economist, Financial Times and Time Magazine): 23 subscriptions, at an annual cost of R25 350,08.
· Media24 (which includes Beeld, Burger, Finweek and City Press): 26 subscriptions for all the newspapers, with an annual cost of R10 808,68.
· The Mail and Guardian: 19 subscriptions, at an annual cost of R9099,82.
· The New Age: 15 subscriptions, with an annual cost of R6491,15.
· Trade publications (the Farmers Weekly and Engineering News): 12 subscriptions, with an annual cost of R3435,55.
(2) No
(3) No
(4) No
Reply received: November 2012
QUESTION NO 3172
DATE OF PUBLICATION: 7 November 2012
Mr K S Mubu (DA) to ask the Minister of Economic Development:
What is the impact of South Africa's recent downgrading by rating agencies on (a) economic growth and (b) job creation in the (i) short, (ii) medium and (iii) long term? NW4012E
Reply
The current pressures on economic growth and job creation are principally driven by slowing global growth, particularly in the economies of key trading partners.
Government will continue to monitor the impact of all factors, including ratings, on costs of borrowing, growth and job creation.
Reply received: November 2012
QUESTION NO.: 3116
DATE OF PUBLICATION: 9 NOVEMBER 2012
Prof B Turok (ANC) to ask the Minister of Trade and Industry:
(1) Whether he has been informed that shops are selling tinned chopped tomatoes (Serena) imported from Italy for R5,99 while the same product manufactured by another company (All Gold) is being sold for R12,99; if not, what is the position in this regard; if so, what are the relevant details;
(2) Whether there are any tariff measures to protect our industries against subsidised Italian products; if not, why not; if so, what measures? NW3942E
REPLY
(1) I have indeed been informed, by the Honourable Turok, who I thank for the information. Government does not monitor the price differentials on individual products. Where price differentials arise from dumping of products on the local market, our laws provide for interested parties to approach the International Trade Administration Commission of South Africa (ITAC), the government agency that administers import duties and trade measures. ITAC is aware of the price disadvantage that domestic producers face against imported canned tomatoes. According to information at the Commission's disposal, imports of canned tomatoes from the European Union comprise 99% of total imports of the product, of which 95% originate from Italy. The landed cost of imports from Italy is R6.80/kg. This is approximately 20% below the average ex-factory selling prices of the domestic producers.
(2) The current general rate of customs duty on canned whole tomatoes, is 30 per cent ad valorem, which is intended to offset the price disadvantages that may be experienced by domestic producers. However, in terms of the SA-EU Trade, Development and Cooperation Agreement (TDCA), the duty on imports originating from the EU is zero. In this regard, ITAC can only consider an increase in duties under the general rate of duty heading and not under the EU rate of duty heading, which is covered under a bilateral agreement between SA and the EU.
The only basis for protection against imports of the product from Italy will be if evidence emerges of subsidized or dumped imports. In that case, an anti-dumping duty may be imposed. To date, ITAC has not received an anti-dumping application from the downstream manufacturing tomato industry.
In a recent investigation, the Commission found justification for an increase in the general rate of duty on tomato paste, puree and concentrates in powder form, classifiable under tariff subheading 2002.90 from 15 per cent ad valorem to the WTO-bound rate of 37% ad valorem. It is envisaged that the increase will enhance the price competitive position of the developing domestic industry manufacturing these products, in the face of fierce low-priced competition from abroad, especially from East Asian producers, and will enable the domestic producers to utilize existing underutilised production capacity and achieve economies of scale. Government accepted the recommendation and implemented it from May 2012. In 2011, the total value of imports of tomato paste, puree, and concentrates in powder form amounted to R 85 344 068 of which 77% was imported from China, 12% from Italy, and the remaining from other countries.
The Commission also found that, from time to time, supply shortages of tomato paste for further processing are experienced, adversely affecting the domestic downstream producers of food preparations. It therefore recommended that a manufacturing rebate facility be created for the importation of bulk tomato paste that is used in the manufacture of food preparations, in such quantities, at such times, and subject to such conditions as the Commission may allow by specific permit. Government accepted the recommendation and implemented it from May 2012. The conditions attached to the rebate provision will ensure that permits are only issued in instances where confirmation is received from the local producers of tomato paste, puree and concentrates, that they are unable to supply the downstream manufacturers. This rebate will allow downstream producers, who previously had to pay the 15% customs duty on tomato paste, regardless of whether local product was available or not, to reduce their costs of production as the duty will now be rebated when there are shortages. This is in line with Government's objective of increasing the competitiveness of downstream value adding industries.
Reply received: November 2012
QUESTION NO 2994
DATE OF PUBLICATION: 25 October 2012
Mr A Watson (DA) to ask the Minister of Economic Development:
Whether the accounting officer submitted the annual financial statements for the financial year ending 31 March 2012 to him by 31 August 2012; if not, (a) why not and (b) on what date (i) were the statements submitted to him and (ii) did he submit the annual report and financial statements to Parliament? NW3760E
REPLY
Yes, the annual financial statements were submitted to me on 31 August 2012 and were subsequently submitted to parliament timeously.
QUESTION NO 2851
DATE OF PUBLICATION: 19 October 2012
Mr M H Hoosen (ID) to ask the Minister of Economic Development:
Whether any monies have been disbursed to companies in terms of the (a) training layoff and (b) companies in distress schemes (i) in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12 financial years and (ii) during the period 1 April 2012 up to the latest specified date for which information is available; if not, how was this conclusion reached; if so, in each case, what (aaa) was the name of the company and (bbb) are the terms and conditions under which the assistance was provided? NW3524E
Reply
The Framework for South Africa's Response to the International Economic Crisis was concluded between government, organised business, the labour movement and community representatives in February 2009.
Two of the key measures introduced as a result of this framework agreement were the Training Layoff Scheme (TLS) and the Distressed Fund. The former is intended to offer an alternative to companies that otherwise may retrench their employees or place them on short-time, while the latter offers assistance to companies in distress by providing loans at preferential rates.
With regards the TLS, monies are disbursed to either training providers or companies to pay for training costs and to workers undergoing training as a training allowance.
According to information received from the Department of Higher Education and Training, which administers the scheme, the following monies have been disbursed or committed in terms of this scheme
· In the 2009/10 financial year, R2,242,633
· In the 2010/11 financial year, R59,934,261
· In the 2011/12 financial year, R76,982,932
· In the first six months of the 2012/13 financial year, R28,668,003
Twenty eight companies have completed training using the TLS, involving 6,811 workers. Twenty four companies are currently using the TLS, involving 2,254 workers, while the applications of 23 further companies are currently being processed, involving 3,273 workers.
The Commission for Conciliation, Mediation and Arbitration (CCMA), one of the state organs responsible for the TLS, is currently updating these numbers. This could lead to an upwards revision of the number of companies currently using the TLS and the applications being processed.
The following companies have completed the training:
Fabkomp, Halberg Guss , Atlantis Foundries, Suiderland Charka, Traffic Clothing, Stroud Riley, Mario Levi, Trubok, Pasdec Automotives, Vrede Textile, BMW, Robert Bosch, Blyvooruitzicht Gold Mining Company, Ford Motor Company Southern Africa, Coega Bricks, Johnson Control Automotives, Stateline Pressed Metal, Wartsila SA, SAS Automotive, Gemtex, Beaches Clothing, Aranda Textile Mills, Epping Textiles, Prestige Clothing, Baisch Knitwear, Viking Fishing Company Deep Sea, Quick Tint and Selborne Carpet Wholesalers.
The following companies are currently training:
CRH Continental, Grupo Antolin, FDT Electrical Contractors, Giflo Engineering, Sentech Industries, Pasdec Automotives (2nd application), DD Promotions, Feltex Automotives, Indibano Auto Body Service, Ostriwel, Mosstrich Ltd, Maisto Auto Body & Paint Refurnishers, Highgate Ostrich Show Farm, Nawane Investment Holdings, Rana Pazza, Colibri Towelling Western Cape, Denver Auto Body Repairers, The Cuddle Company, South Cape Ostrich Tanning, Venture Diversified Products, Lifestyle Garden Centre, Ganzekraal Farming Trust, Sappi Southern Africa and Mizpah Clothing.
The general terms under which assistance is provided under the TLS include a temporary suspension of work to be used for training (limited to 6 months with a possible further three-month extension); the retention of the employment contract; training to be flexible, but linked to the needs of the employer; and the employer carrying the employer and employee cost of a basic package of social benefits but not paying any wages.
With regards the Distressed Fund, the funding from the Industrial Development Corporation (IDC) can take the form of loan funding and equity funding as well as guarantees. According to information received from the IDC, the following monies have been committed:
· In the 2009/10 financial year, R1,172.3 million
· In the 2010/11 financial year, R2,101.9 million
· In the 2011/12 financial year, R1,056.6 million
· In the first six months of the 2012/13 financial year, R230.1 million.
One hundred and nineteen companies have benefitted from this funding with an estimated 39,800 jobs expected to be saved or created.
The names of the recipient companies are not disclosed due to the confidentiality agreements between the IDC and the respective companies aimed at preventing loss of confidence of suppliers and customers.
The terms for this fund include that monies should be retained in the business to fund working capital requirements and operational and capital expenses where it will result in the improvement of efficiencies and improve the competitiveness of the business. Restrictions are placed on recipients on a case-by-case basis. Some of these restrictions include: management remuneration; payment of dividends; repayment of shareholders loans; existing shareholders disposing of their shareholding; payments to creditors; capital repayment of bank loans; and job losses.
Reply received: October 2012
QUESTION NO 2827
DATE OF PUBLICATION: 12 OCTOBER 2012
2827. Mr K S Mubu (DA) to ask the Minister of Economic Development:
(1) With reference to his reply to question 1306 on 8 June 2012, what progress has been made with the implementation of the Youth Wage Subsidy;
(2) whether time frames have been set for the implementation of the Youth Wage Subsidy; if not, why not; if so, what are the relevant details? NW3484E
REPLY
Subsequent to the previous reply of 8 June 2012, discussions were held with coalitions of youth organisations, as well as representatives of business organisations and trade unions. These meetings provided a framework that all parties undertook to consult on. The framework was also tabled with the social partners on 17 October 2012, at which they approved the framework as the basis for work on a youth employment accord.
Discussions will now be held on the specific mechanisms to promote youth employment, including the role of subsidies. A report will be released as soon as the discussions have progressed to a conclusi
Reply received: October 2012
QUESTION NO 2777
DATE OF PUBLICATION: 12 OCTOBER 2012
2777. Mr K S Mubu (DA) to ask the Minister of Economic Development:
Whether his department is developing policy to (a) prevent foreign commercial (i) mergers with and/or acquisition of local business, (b) impose stricter currency controls, (c) export restrictions and (d) increase state intervention within the economy, especially mining; if not, why not, in each case; if so, what are the relevant details in each case? NW3426E
REPLY
(a) No
(b) No
(c) Policy work constantly looks at ways to improve the export of value-added
local products in order to create jobs and promote industrialization.
(d) Government has made announcements regarding the role of a state-
owned mining company and the contribution of the mining industry to beneficiation, provision of housing to workers and overall employment and economic growth.
Reply received: October 2012
QUESTION NO 2775
DATE OF PUBLICATION: 12 October 2012
Mr G G Hill-Lewis (DA) to ask the Minister of Economic Development:
(1) whether his department has received proposals from Business Against Crime with regard to (a) improved monitoring of, and reporting on, exported goods, (b) amending the International Trade Administration Act, Act 71 of 2002, to effect these more stringent controls; if not, what is the position in this regard; if so, what are the relevant details in each case;
(2) whether his department supports these proposals; if not, why not; if so, what are the relevant details? NW3424E
REPLY
(1) The Economic Development Department (EDD) has not received proposals from Business Against Crime (BAC) on improved monitoring of, and reporting on, exported goods or on the amendment of the International Trade Administration (ITA) Act. However, proposals by BAC pertaining to export control measures on scrap metal were brought to EDD's attention by the Department of Trade and Industry (the dti) in February 2012.
With regards the ITA Act, BAC proposed amendments that "include, and make reference to the requirements that all scrap exporters must comply with the registration and operational requirements of the Second Hand Goods Act".
An extensive review of the export of scrap metals in underway in government and details will be released as soon as the work is completed.
(2) The department supports measures to address theft of cables and other products, whether these are exported or sold in the domestic market.
Reply received: October 2012
QUESTION NO 2770
DATE OF PUBLICATION: 12 OCTOBER 2012
2770. Mr G G Hill-Lewis (DA) to ask the Minister of Economic Development:
How many (a) applications for (i) countervailing tariffs and (ii) trade remedies have been received by the International Trade Administration Commission of South Africa since 1 January 2012, (b) of these have been processed and (c) in how many cases did the application expire before it was processed? NW3419E
REPLY
TRADE REMEDIES
ITAC has provided the following figures of new applications received since 1 January 2012:
i. Anti-Dumping applications 6
ii. Countervailing applications 4
iii. Safeguard applications 2
iv. Anti-dumping Sunset Reviews 3
(a) These applications, in addition to those carried over from 2011, are all in process at present.
(b) No anti-dumping or countervailing duty has expired before the application could be processed by ITAC.
Reply received: October 2012
QUESTION NO 2699
DATE OF PUBLICATION: 19 September 2012
Mrs S V Kalyan (DA) to ask the Minister of Economic Development:
Whether his department has awarded any contracts to a certain company (Kopano Ke Matla Investment Company (Pty) Ltd) since its establishment in 1996; if so, in each case, (a) when was the contract awarded and (b) what was the (i) nature of the contract and (ii) the total accumulative value of the tender? NW3317E
REPLY
No contracts have been awarded to the named company.
Reply received: October 2012
QUESTION NO 2677
DATE OF PUBLICATION: 19 September 2012
Mr K S Mubu (DA) to ask the Minister of Economic Development:
Whether his department has conducted a study on the impact of hydraulic fracturing on (a) the gross domestic product (GDP), (b) employment creation and (c) infrastructure development; if not, why not; if so, what are the relevant details in each case? NW3295E
REPLY
(a) No
(b) No
(c) No
The Department of Mineral Resources commissioned research work on the impact of hydraulic fracturing; which the Economic Development Department has access to.
In early September 2012, Cabinet lifted the moratorium on shale gas exploration. This allows for normal geological exploration which will establish the size and potential of the shale gas reserve. Once the gas reserve is established, it will then be prudent to study the economic and other impact of the available gas as well as the infrastructure implications.
Reply received: October 2012
QUESTION NO 2676
DATE OF PUBLICATION: 19September 2012
Mr K S Mubu (DA) to ask the Minister of Economic Development:
Whether he has taken any steps since assuming office to ensure the prevention of corruption in his department; if not, why not; if so, what steps? NW3294E
REPLY
Several Fraud and Anti-Corruption awareness workshops were held, which were attended by the department's employees.
The workshops included a Fraud and Anti-Corruption Risk Assessment, where the likelihood and impact of potential fraud schemes, as well as current controls to mitigate those potential risks, were assessed.
Based on the above, the following was developed:
· A comprehensive Fraud Risk Register for EDD, which includes an indication of the department's top 20 Fraud Risks.
· A Fraud Prevention Strategy and Plan, from the identified fraud risks; and
· A Fraud Policy.
Senior managers are annually compelled to disclose business interests and to request permission for earnings outside the public sector, in accordance with applicable public service regulations.
The Department subscribes to the National Anti-Corruption Hotline, where matters of fraud and corruption against the department can be reported in strict confidentiality by an employee or any member of the public. Furthermore, designated officials have been assigned the responsibility of following up on all fraud and corruption allegations and are required to report on the outcomes of each case.
Reply received: October 2012
QUESTION NO 2674
DATE OF PUBLICATION: 19 September 2012
Mr K S Mubu (DA) to ask the Minister of Economic Development:
Whether any positions in his department are currently filled by persons working in an acting capacity; if not, how was this conclusion reached; if so, (a) how many, (b) what positions and (c) for what period has each specified position been filled by persons working in an acting capacity? NW3292E
REPLY
The position that is currently filled in an acting capacity is that of the Director-General. The Acting Director-General was appointed in March 2012.
Reply received: September 2012
QUESTION NO 2357
DATE OF PUBLICATION : 31 AUGUST 2012
Mr J F Smalle (DA) to ask the Minister of Economic Development:
(1) Whether, with reference to the reply to question 1829 on 20 August 2012, his department has developed a comprehensive business plan with regard to South Africa's bitumen requirements; if not, why not; if so, what are the relevant details;
(2) whether his department has imported any bitumen (a) in the (i) 2009-10, (ii) 2010-11 and (iii) 2011-12 financial years and (b) since 1 April 2012; if not, why not; if so, in each year, (aa) from where, (bb) at what cost and (cc) what quantity of bitumen was imported;
(3) whether South Africa has the infrastructure for the storage and transportation of Bitumen; if not, what steps does he intend taking to remedy the situation; if so, (a) which pipelines are bitumen compatible and (b) where are the bitumen storage facilities located;
(4) whether he has found that a sufficient supply chain management plan for bitumen is in place to complement the National Infrastructure Build Programme; if not, what steps does he intend taking to remedy the situation; if so, what are the relevant details?
NW2938E
REPLY
(1) This question was previously directed to the Department of Energy, which
referred the Honourable Member to the Departments of Transport and Trade and Industry. The Honourable Member is encouraged to refer the question to the departments concerned.
(2) (a) and (b) The Economic Development Department does not construct roads and has no need to purchase bitumen.
(3) and (4) The PICC has commissioned a study of the bitumen needs of the National Infrastructure Plan, as well as the strength of and gaps in the existing supply chain.
There has been several shortages of bitumen during 2007/8 and late in 2010 as a result of the Gauteng Freeway Improvement Project and again in the first quarters of 2011 and 2012. The shortages were mainly as a result of planned refinery shut-downs, shortages were supplemented by imports from the Middle East.
Initial work has yielded the following, from the DBSA:
| Bitumen requirements for road construction (tons) | ||||
| 2010/11 | 2011/12 | 2012/13 | 2013/14 | |
| Sanral | 54 097 | 86 362 | 74 373 | 75 477 |
| Provincial roads | 44 114 | 99 471 | 91 544 | 102 311 |
| Municipal roads | 15 679 | 49 862 | 42 041 | 49 000 |
| Total | 113 890 | 235 695 | 207 958 | 226 788 |
| Source: IIMP - DBSA | ||||
Bitumen available from refineries range from between 140 000 and 280 000 tons per year.
Reply received: October 2012
QUESTION NO 2487
DATE OF PUBLICATION: 7 SEPTEMBER 2012
2487. Mrs J F Terblanche (DA) to ask the Minister of Economic Development:
(1) Whether (a) his Ministry, (b) his department and (c) any entity reporting to him plan to host end-of-year parties; if not, in each case, what is the position in this regard; if so, in each case, (i) for how many persons and (ii) at what cost;
(2) whether the cost of the specified end-of-year parties has been budgeted for in the current financial year; if not, from where will the funding be sourced; if so, (a) what amount has been budgeted and (b) from which part of the budget will it be incurred? NW3093E
REPLY
The Economic Development Department does not intend to host an end-of-year party.
ITAC will be hosting an end-of-year function for 138 employees, at a cost of R95 000.00 which is budgeted for in the 2012/13 financial year. It is included in the item Workshops and Conferences – Business Support Programme.
The Competition Commission will be hosting an end-of-year function for 180 employees, at a cost of R202 875.00, which is budgeted for in the 2012/13 financial year. This is included under the stakeholder division budget for team building and social events.
The Competition Tribunal will host an end-of-year lunch for 21 employees. The costs will not exceed R10 000. It is budgeted for under entertainment.
IDC does not have an end-of-year party.
Reply received: September 2012
QUESTION NO 2329
DATE OF PUBLICATION : 29 AUGUST 2012
2329. Adv A de W Alberts (FF Plus) to ask the Minister of Economic Development:†
Whether, with reference to his reply to question 206 on 15 August 2012, he (a) will do research and (b) consider proposals to establish the unintended results of affirmative action, such as the (i) impoverishment and (ii) alienation of (aa) whites, (bb) coloured people and (cc) Indians respectively in order to make the economy inclusive and to speed up economic growth and poverty alleviation; if not, why not; if so, what are the relevant details? NW2909E
REPLY
The Economic Development Department maintains on-going monitoring and evaluation of core trends in inequality and poverty in South Africa.
The General Household Survey, 2011 contain the latest breakdown of household representation in different income categories and may be accessed at www.statssa.gov.za.
The trends do not require research of the type contemplated by the Honourable Member.
Reply received: September 2012
QUESTION NO 2326
DATE OF PUBLICATION: 31 August 2012
Mr T D Lee (DA) to ask the Minister of Economic Development:
(a) What steps has he taken to give effect to the performance agreement that he signed with the President in 2010, (b) what outcomes have been measured and (c) what follow-up steps has he taken with regard to each specified outcome?
NW2882E
REPLY
1. The steps taken to implement the performance agreement included, among others:
· finalising and implementing the New Growth Path as the economic framework of government
· developing a National Infrastructure Plan initially containing 17 (now 18) Strategic Integrated Projects across the country
· reorganising and refocusing development finance institutions, including through expanding the investment envelope of the IDC and combining national small business finance institutions into SEFA.
· aligning competition policy goals with broader employment goals and analysing large mergers against their jobs impact
· supporting the development of the green economy
2. The outcomes measured include the following
· tracking employment performance of the economy in aggregate and by sector and province
· the pace of infrastructure development, including the actual extent of construction taking place.
· the approval rate and level of the IDC and SEFA investment in the economy
· the employment and localisation commitments that emanate from mergers and acquisitions through the competition authorities as well as market enquiries into abuse of market power
· the extent of solar water heater installation as well as approvals of green energy projects.
3. The follow-up steps include the following
· implementing the National Infrastructure Plan and expanding the industrialisation opportunities for the local economy
· supporting the range of sector-level initiatives, including IPAP, the auto industry ACDP, the competitive programme for the clothing and textile industry and other measures
· strengthening the opportunities for the IDC to expand its investment and to support private sector projects
· strengthening the footprint of SEFA
· implementing the social Accords concluded on local procurement, the green economy, skills and education.
Reply received: August 2012
QUESTION NO 2177
DATE OF PUBLICATION: 15 August 2012
Mr T D Lee (DA) to ask the Minister of Economic Development:
Whether (a) his department or (b) any entity reporting to him makes use of private security firms; if so, in each case, (i) which firms and (ii) what is the (aa) purpose, (bb) value and (cc) duration of each specified contract? NW2700E
REPLY
The Economic Development Department and ITAC do not make use of private security companies.
The Competition Commission and the Competition Tribunal makes use of G4S Security (SA) (PTY) Ltd, to protect the premises, employees and relevant assets, as well as to detect damage to property and conduct random security searches. This is a 12 month contract ending on 31 January 2013, monthly cost R61 497.38.
The total budget allocated by the IDC on security is approximately R8 million per annum (R24 million over the next three years). The total amount is made of services provided by various security firms to the IDC Head Office in Sandton, its regional and satellite offices. Also included is ad hoc service for guarding assets of IDC's investments where it has taken possession thereof and supply/maintenance of access control systems. Table 1 attached provides detail regarding the companies and purpose of each.
Table 1 attached: The Industrial Development Corporation makes use of the following private security firms:
Reply received: August 2012
QUESTION NO 2121
DATE OF PUBLICATION: 15 August 2012
Mr K S Mubu (DA) to ask the Minister of Economic Development:
Whether any officials of his department (a) are currently facing any charges or (b) have been convicted of any crime; if not, how was this conclusion reached; if so, (i) how many, (ii) what are their (aa) names and (bb) positions, (iii) what criminal charges did they face or are they facing and (iv) of what crimes were they convicted? NW2640E
REPLY
The Department is not aware of any employees facing charges or convicted of any crime.
Reply received: September 2012
QUESTION NO 2090
DATE OF PUBLICATION: 10 AUGUST 2012
2090. Mr M H Hoosen (ID) to ask the Minister of Economic Development:
(1) Whether he has identified any barriers to achieving the job creation targets of the New Growth Path (NGP); if not, what is the position in this regard; if so, what are the relevant details;
(2) whether he has (a) identified and (b) implemented measures to deal with the backlog in the NGP job creation targets; if not, why not, in each case; if so, what are the relevant details in each case;
(3) whether he has found that the NGP will achieve its target of creating 5 million jobs by 2020; if not, why not; if so, how was this conclusion reached;
(4) what interventions has his department implemented to target more labour-absorbing activities in major economic sectors? NW2570E
REPLY
The New Growth Path document identifies the constraints to be overcome in order to achieve its the job creation targets as well as the policy measures required to do so. For example, the skills shortages can constrain job creation in certain sectors or activities. Steps to be taken to address this constrain are then set out.
The slowdown in the global economy in the past six months poses a growing risk to economic growth, which will require appropriate action in response.
There is currently no backlog in the NGP job creation targets. Employment grew by over 300 000 in 2011, which exceeded the target Cabinet had set for the first year.
In light of the robust employment creation to date as well as the strong measures included in the National Infrastructure Plan and the Industrial Policy Action Plan, we are confident of reaching our employment goal of five million new jobs by 2020. Obviously any medium to long term plan requires modifications and tweaking to respond to changing economic conditions. We will undertake these as required.
To support more labour-intensive activities, my department has undertaken a number of actions as identified in the Annual Report and my Budget Speech and these include the following, amongst others.
i. Work with the IDC to support investment in the Jobs Drivers, including through the establishment of an Agro Processing Fund and a Green Fund.
ii. Establishment of the Small Enterprise Financing Agency (SEFA), with a doubling of the resources available for lending to small, medium and micro enterprises.
iii. Support for development of the solar water heater industry and the installation of solar water heaters on a mass scale, which provides employment in particular in the installation process.
iv. Support for a major biofuels investment in the Eastern Cape, which has the potential if successful for improving livelihoods for thousands of smallholders in the province.
v. Engagement, in collaboration with the DTI and the National Treasury, on policies and regulations to strengthen local procurement by the public sector; and the conclusion of the local procurement accord, which will also enhance local procurement by the private sector.
vi. Presentations to the Competition Authorities around jobs impacts of merger transactions.
Reply received: September 2012
QUESTION NO 2088
DATE OF PUBLICATION: 10 AUGUST 2012
Mr M H Hoosen (ID) to ask the Minister of Economic Development:
What (a) short-, (b) medium- and (c) long-term interventions has his department implemented with respect to the New Growth Path (NGP) in order to (i) grow the economy and (ii) create jobs? NW2568E
REPLY
The Economic Development Department works with other departments, public agencies and stakeholders to ensure more co-ordinated and effective policy overall, while driving some key projects, for instance around the green economy, and overseeing the IDC and SEFA as central DFIs for the economy as well as the Competition Commission and ITAC.
The measures introduced by the Department to address jobs targets were set out in detail in my Budget Speech during 2011 and 2012. Additional details are available in the Annual Reports of the Economic Development Department. I refer the Honourable Member to the contents of these documents, obtainable from www.economic.gov.za.
To illustrate some of the programmes, I refer to the following interventions:
Short-term interventions to grow the economy included a doubling in the IDC's loan envelop as well as in the assets of SEFA; the establishment of a project, in collaboration with organised business, to identify major investments blocked by regulatory delays or uncertainty and assist in clarifying issues where possible; ensuring, through engagements before the competition authorities; the accord on local procurement, which will in particular boost private-sector local procurement; and support for a major biofuels project in the Eastern Cape.
All of the interventions noted above will also support employment creation. In addition, the EDD worked with a task team to develop a business plan to scale up the Community Work Programme to reach a million participants, coordinated the initiative to increase the roll out solar water heaters, which both greens the economy and generates employment especially in installation and ultimately in production of inputs; and worked with the IDC to align its portfolio with the jobs drivers in order to maximize employment creation.
In terms of medium to long term initiatives, most of the programmes described above will contribute to a longer-term shift in the economy toward more labour-absorbing growth.
In addition, the EDD amongst others provided support to the development of the National Infrastructure Plan, which is a central lever for both accelerating growth and growing opportunities for those at the bottom of the pyramid; supported the strategic approach of the Competition Commission which targets more competitive pricing for intermediate inputs and wage goods, in order to enhance overall efficiency in the economy; and negotiated accords with stakeholders on education, skills development and greening the economy that can foster long-term and more equitable growth.
These initiatives all contribute to faster employment creation. In addition, the EDD is working on a spatial analysis that should permit a more effective approach to the integration of the former "homeland" areas, which suffer from the long history of deprivation and underinvestment, into national value chains in ways that raise living standards and productivity. It is also engaging with stakeholders to develop a common approach and commitments around youth employment.
Reply received: August 2012
QUESTION NO 2065
DATE OF PUBLICATION: 7 AUGUST 2012
Mr T D Lee (DA) to ask the Minister of Economic Development:
(1) Whether (a) he, (b) his Deputy Minister and (c) any official from an entity reporting to him will be attending or attended, the 2012 Olympic Games; if so, what is the (i)(aa) name, (bb) rank and (cc) position/designation of each specified person accompanying (aaa) him, (bbb) his Deputy Minister and (ccc) each specified person and (ii)(aa) nature and (bb) official reason for the visit;
(2) what (a) total amount will be spent or has been spent on the trip, (b) is the (i) description and (ii) detailed breakdown of the amounts that will be spent or have been spent on (aa) accommodation, (bb) travel and (cc) subsistence costs and (c) from which budget will these funds be incurred in each case?
NW2545E
REPLY
(1) None
(2) Not applicable
Reply received: August 2012
QUESTION NO 1995
DATE OF PUBLICATION : 10 August 2012
Ms L L van der Merwe (IFP) to ask the Minister of Economic Development:
Whether his department has any measures in place to continue the impetus achieved with the 0.3% reduction in unemployment which was achieved between the first and the second quarter of 2012; if not, what is the position in this regard; if so, what are the relevant details of any revisions to his department's strategy based on these results? NW2412E
REPLY
The Department, working together with public entities, has measures in place addressing the challenges of unemployment.
The reduction in unemployment requires purposeful implementation of key elements of the New Growth Path. The Department places emphasis on unblocking infrastructure and facilitating investment from the Private Sector; as well as scaling- up public employer programmes.
Working with other departments, EDD seeks to fast track the National Infrastructure Plan and the Manufacturing Competitiveness Enhance Fund, as well as the expansion of the investment commitments of the Industrial Development Corporation. Details of these programmes are obtained in the relevant annual reports.
The programmes to promote local procurement are intended to support the job-creating impact of domestic demand in the economy
Reply received: August 2012
QUESTION NO 1970
DATE OF PUBLICATION: 1 August 2012
Mr M Mnqasela (DA) to ask the Minister of Economic Development:
Whether (a) his department or (b) any entity reporting to him has budgeted for (i) financial donations or (ii) sponsored services in the (aa) 2009-10, (bb) 2010-11 and (cc) 2011-12, (dd) 2012-13 financial years; if not, why not; if so, in each case, what amount was (aaa) budgeted and (bbb) spent? NW2359E
REPLY
No allocations for financial donations and sponsored services were made by the Economic Development Department or by entities reporting to it (with the exception of the IDC), during the financial years referred to above.
The IDC through its corporate social investment (CSI) initiative, allocated R77 802 955.00, over the 4 year period in question, to fund development projects. The IDC CSI focuses are in the following areas, specifically in rural and underdeveloped regions (Refer to table 1).
Table 1. Breakdown on CSI
| 2009-2010 | 2010-2011 | 2011-2012 | 2012-2013 | |
| BUDGET | R 11 603 000.00 | R 11 000 000.00 | R 17 900 000.00 | R 37 299 955.00 |
| ACTUALS | R 11 458 956.00 | R 11 666 033.00 | R 16 440 954.96 | R 1 540 041.00 (as July 2012) |
| Economic Development / Sustainable Livelihood | R 3 600 734.00 | R 1 808 264.00 | R 3 143 587.00 | R 7 349 955.00 |
| Education & skills development | R 4 452 398.00 | R 5 967 805.76 | R 8 301 510.00 | R 19 910 000.00 |
| Healthcare (supports mainly the refurbishment of public health facilities) | R 571 828.00 | R 1 630 647.00 | R 2 745 034.00 | R 6 500 000.00 |
| Arts and Crafts | R 2 833 996.00 | R 0.00 | R 0.00 | R 0.00 |
| Strategic & special socio-economic interventions in poor communities | R 0.00 | R 1 614 816.00 | R 1 757 853.00 | R 2 040 000.00 |
| Employee Giving & Volunteerism projects | R 0.00 | R 645 000.00 | R 2 332 446.96 | R 1 500 000.00 |
For the 2012 - 2013 financial year the IDC has increased its focus on Education projects/programmes. The focus includes, a whole school development programme -for selected schools (for support over a five year period); District support programme; funding of FET colleges and university programmes that are aligned to the New Growth Path; and Bursary Support Programme (refer to table 2).
Table 2: Education
| Education | |
| Dinaledi Schools | R 9 000 000.00 |
| Further Education & Training | R 3 500 000.00 |
| Universities | R 3 500 000.00 |
| Bursary support | R 2 000 000.00 |
| District Support | R 500 000.00 |
| Commitments from 2011-12 | R 1 410 000.00 |
| R 19 910 000.00 |
The IDC does provide Business Development Sponsorship which is specifically targeted towards developing new business.
Table 3
| BUDGET R37 824 000.00 | ACTUALS R22 556 782 .00 |
| 2009 – 2010 | 2009 - 2010 |
| R5 170 000.00 | R3 041 944.00 |
| 2010 – 2011 | 2010 – 2011 |
| R5 604 000.00 | R3 893 076.00 |
| 2011 – 2012 | 2011 – 2012 |
| R11 750 000.00 | R12 392 261.00 (including COP 17 project) |
| 2012 – 2013 | 2012 – 2013 (up to July 2012) |
| R15 300 000.00 | R3 229 501.00 |
Reply received: August 2012
QUESTION NO 1911
DATE OF PUBLICATION: 3 August 2012
Mr K S Mubu (DA) to ask the Minister of Economic Development:
(1) Whether the Competition Commission is facing any management challenges; if not, how was this conclusion reached; if so, what are the relevant details;
(2) whether he has (a) identified and (b) implemented any measures to resolve managerial challenges within the Competition Commission; if not, why not; if so, what are the relevant details? NW2300E
REPLY
I have taken note of the reports on internal challenges in the competition commission. The best interests of the commission and its staff require that internal processes be completed prior to any public statement being issued. The department is now addressing the matters.
Reply received: August 2012
QUESTION NO 1893
DATE OF PUBLICATION: 3 AUGUST 2012
Mr K S Mubu (DA) to ask the Minister of Economic Development:
(1) Whether he has been informed of the restriction that has been imposed by the Competition Commission on the SA Cement and Concrete Institute, namely not to issue monthly cement sales statistics; if so, (a) why was the restriction imposed and (b) what are the further relevant details; if not,
(2) Whether he intends to investigate the matter; if not, why not; if so, what are the relevant details? NW2282E
REPLY
(1) I am advised that a restriction was imposed by the Competition Commission on the SA Cement and Concrete Institute on the issue of monthly cement sales statistics. The purpose of this restriction from the commission's point of view is to prevent collusion in the cement sector through the exchange of disaggregated information on the industries, sales volumes per product category, region and transport mode.
The Commission has recommended that all cement producers may submit quarterly data to the SA Cement & Concrete Institute's independent auditors on a more aggregated basis that will enable the SA Cement & Concrete Institute to disseminate consolidated figures with a lag of 3 months.
(2) Not at this stage - there are measures in place by the Competition Commission that will reduce the risk of price collusion in the cement industry.
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(2) in an acting capacity.
Reply received: July 2012
QUESTION NO 1435
DATE OF PUBLICATION: 1 June 2012
1435. Mr K S Mubu (DA) to ask the Minister of Economic Development:
Whether his department has put any measures in place to prevent (a) corruption, (b) irregular expenditure and (c) wasteful expenditure in the (i) tender and (ii) procurement processes of the Infrastructure Development Programme; if not, why not; if so, what are the relevant details? NW1711E
REPLY
National Treasury has the responsibility to develop anti-corruption measures, Departments and other public entities are responsible for implementation of tender and procurement processes under current regulations. In view of the size of the infrastructure projects, the PICC commenced work to strengthen these measures. The PICC is drafting an anti-corruption and cost containment policy framework for adoption by the PICC Council. These policy frameworks will take into account existing legislation and policy in South Africa as well as lessons learnt in past infrastructure projects and will be released to public entities once they have been approved.
Reply received: May 2012
QUESTION NO 1425
DATE OF PUBLICATION: 8 May 2012
1425. Mrs M Wenger (DA) to ask the Minister of Economic Development:
What amount has his department spent on (a) catering and (b) entertainment (i) in the (aa) 2009-10, (bb) 2010-11 and (cc) 2011-12 financial years and (ii) since 1 April 2012? NW1425E
REPLY
The Economic Development Department (EDD) spent the following amount on catering and entertainment during the financial years specified:
| 2009/10 | 2010/11 | 2011/12 | 20112/13 to date | |
| Entertainment Cost | 2,162.97 | 3,463.60 | 4,825.37 | |
| Departmental Catering Cost | 461,173.10 | 683,322.68 | 34,167.60 |
During 2009/10 financial year EDD did not spent any funds as a separate vote on the specified spending items.
Reply received: June 2012
QUESTION NO 1354
DATE OF PUBLICATION : 25 MAY 2012
1354. Mr M G P Lekota (Cope) to ask the Minister of Economic Development:
Whether the Government is in the process of (a) reducing the cost of doing business in South Africa and (b) integrating the completion of formalities to start a business into a single and rapid process; if not, why not; if so, what are the (i) relevant timelines and (ii) further relevant details? NW1597E
REPLY
(a)It is widely accepted that regulations place an undue burden and cost on smaller enterprises, which have less resources, time and capacity to deal with procedural requirements than larger companies. These requirements include amongst others zoning authorisations and other licences; the provision of tax information; and managing disciplinary and productivity hearings.
Government recognises that improving the regulatory environment could contribute to the growth and stimulation of small businesses. The aim is not to exempt them from regulatory requirements but to simplify procedures as far as possible.
Research conducted found both developed and developing countries engaging in similar processes, with different models and approaches utilised. Some take a more centralised approach and others a decentralised approach to build capacity across government.
International experience has also shown us that whichever approach taken, addressing the regulatory environment to make it easier for small businesses is complex and requires support from a number of different quarters as such regulations cuts across multiple departments and spheres of government.
Cabinet has previously agreed that every department introducing new legislation or regulations should undertake a socio-economic impact assessment. The assessment procedure is currently being finalised. It will require that new regulations be assessed in terms of the impact on core government priorities, including economic growth, employment creation and equity.
All departments were reminded last year of this requirement in a notice sent to Ministers by the Leader of Government Business.
In addition, the Department of Trade and Industry and Department of Co-operative Governance and Traditional Affairs in association with SALGA have been working on steps to improve by-laws to support business activities at local level.
(b) Refer to the dti.
Reply received: June 2012
QUESTION NO 1307
DATE OF PUBLICATION: 16 MAY 2012
Mr K S Mubu (DA) to ask the Minister of Economic Development:
(a) What will the (i) total cost to Government be to have a panel of experts conduct a supply chain study on the Wallmart-Massmart merger and (ii) composition of the panel be and (b) how long will this study take? NW1517E
REPLY
(a)(i) The Competition Appeal Court (CAC) judgement stated that the "costs of this study shall be paid for by the merging parties".
(ii) The panel of experts consists of Professor Joseph Stiglitz, James Hodge and Michael Morris.
(b) The CAC judgment was delivered on 9 March 2012 and the expert report is due three months after the delivery of the judgment.
Reply received: June 2012
QUESTION NO 1306
DATE OF PUBLICATION: 16 MAY 2012
Mr K S Mubu (DA) to ask the Minister of Economic Development:
1306. Mr K S Mubu (DA) to ask the Minister of Economic Development:
What (a) is the status of the youth wage subsidy in his department's strategy for dealing with youth unemployment and (b) what (i) progress has been made and (ii) time frames have been set in this regard? NW1516E
REPLY
The Department is in discussions with stakeholders on a strategy for youth employment, which incorporates a range of measures. The strategy includes measures that should have an impact in the short run; programmes aimed to address specific hindrances that block young people from obtaining employment; and proposals to ensure that broader economic interventions aimed at accelerating overall employment creation provide jobs specifically for youth.
The strategy is based on the principle that youth unemployment can only be addressed if overall joblessness is addressed. It therefore builds strongly on the proposals in the New Growth Path.
The strategy for youth employment is being discussed at Nedlac with stakeholders. We have elevated the discussions to senior level with the constituents concerned to ensure that the discussions are concluded expeditiously.
We are currently seeking to accelerate the process, particularly during June, youth month. Based on progress, a report will be submitted to Cabinet to finalise the matter.
Reply received: June 2012
QUESTION NO 1305
DATE OF PUBLICATION : 18 MAY 2012
1305. Mr K S Mubu (DA) to ask the Minister of Economic Development:
Whether he has found that the infrastructure development in South Africa will have any positive impact on regional integration in the SA Development Community; if not, why not; if so, how was this conclusion reached? NW1515E
REPLY
Poor and aging infrastructure is a serious bottleneck to intra-African trade, travel and investment. We have found that infrastructure development in South Africa and in neighbouring countries, will have a positive impact on regional integration, in a number of ways. Through promoting and strengthening transport and logistics facilities, it will be easier to move goods between SADC countries. Through developing energy grids, it will be possible to strengthen the Southern African power pool. Through water development projects with cross border applications, it will be possible to promote mutual economic development by linking supply of water to demand markets.
These conclusions were reached based on work done by the African Union and it's support institutions, as well as other multilateral institutions.
Reply received: June 2012
QUESTION NO 1301
DATE OF PUBLICATION: 18 May 2012
1301. Dr S M van Dyk (DA) to ask the Minister of Economic Development:
(1) Whether he has found that the (a) Growth, Employment and Redistribution Strategy (GEAR) and (b) Accelerated and Shared Growth Initiative for SA have failed to (i) advance infrastructure development (ii) create jobs and (iii) stimulate economic growth; if so, how was this conclusion reached; if not, what are the relevant details;
(2) how will the New Growth Path (a) advance infrastructure development, (b) create jobs and (c) stimulate economic growth? NW1511E
REPLY
(1) The Department has not conducted a study specifically on the impact of the various measures contained in GEAR. It reviewed instead the employment performance and levels of public investment from 1994 through to 2009, to determine the trends and identify challenges.
Our analysis found that the levels of public investment varied greatly over the period. In particular, the 2010 World Cup and a number of major infrastructure projects associated with it or completed at about the same time lifted the rate of public investment. The general conclusions of these evaluations, as well as the specific lessons from the ASGISA programmes, informed the New Growth Path, a copy of which can be accessed at www.economic.gov.za.
(2) The New Growth Path contains a range of measures to promote jobs and inclusive growth. Infrastructure is identified as one of the jobs drivers in the New Growth Path. The New Growth Path provided the framework for the establishment of the Presidential Infrastructure Co-ordinating Commission (PICC). The Commission's plans are central to our efforts to transform the economy by linking new regions and producers more efficiently to core markets; improving efficiency across the economy; expanding services to our people; strengthening productive capacity through local procurement initiatives; and expanding employment both directly and indirectly.
The Infrastructure Plan that arose from the work of the PICC was referred to by President Zuma in the State of the Nation Address in February 2012. Further details are now being provided to representatives across the three spheres of government as well as social partners, through detailed interactive sessions across the country.
Reply received: June 2012
QUESTION NO 1258
DATE OF PUBLICATION: 16 MAY 2012
Mr M G P Lekota (Cope) to ask the Minister of Economic Development:
Whether his department has done any analysis in respect of the 75 000 jobs that have been lost in the first quarter of 2012 as reported by Statistics SA; if not, why not; if so, what are the relevant details? NW1454E
REPLY
The Quarterly Labour Force Survey (QLFS) publishes employment data every three months. This allows for two comparisons to be made: with the previous quarter, and with the same quarter a year previously. The data is not seasonally adjusted and thus the Department seeks to avoid drawing conclusions from quarterly trends that may simply reflect seasonal variations.
The year-on-year trends of employment show a net job gain of 303 000 new jobs, by end March 2012, with employment rising from 13 118 000 to 13 422 000, or by 2,3%.
However, the quarter to quarter data shows a drop of employment by 75 000.
The two factors leading to the quarter-to-quarter job losses are:
• A regular seasonal slowdown in job creation by retail and business services, which follows the ramping up of employment for the December festive season. This is consistent with what has happened in previous years.
• A more worrying decline in employment in formal construction and in the manufacturing industry. Both of these industries have lost employment over the year, but for most of the year their losses were offset by growth especially in the tertiary sector.
In short, the job losses reflect both seasonal factors and some longer term trends.
The recession in Europe in particular poses a risk for South African exports, since Europe remains a significant market for manufactured exports. The infrastructure build programme proposed by the Presidential Infrastructure Co-ordinating Commission will over the medium term counteract the slowdown in construction and can boost manufacturing employment through the stimulation of the component sectors. The net effects on jobs will be a function among others of the success of domestic measures and the extent and duration of the global economic slowdown.
Reply received: May 2012
QUESTION NO 1091
DATE OF PUBLICATION: 4 MAY 2012
Mrs D Robinson (DA) to ask the Minister of Economic Development:
(1) (a) What are the (i) yearly rental and (ii) floor space of the (aa) current and (bb) previous premises occupied by his department's head office and (b) when (i) was the current building occupied and (ii) does the current lease expire;
(2) whether his department publicly invited tenders prior to the leasing of the current premises; if not, why not; if so, (a) when, (b) where was it published and (c) which (i) companies and (ii) properties were shortlisted;
(3) what was the (a) floor space and (b) annual rental offered by each shortlisted (i) company and (ii) property? NW1279E
REPLY
(1)(a)(i)The yearly rental in respect of the premises that the Economic
Development Department (EDD) occupies currently is R 2 655 388.
(ii) The floor space that EDD currently occupies is 1 346 square metres.
(aa) EDD currently sub-leases premises from the Department of Trade and Industry.
(bb) Since EDD is a relatively new department, it has not previously occupied any other premises.
(b)(i) The current building has been occupied by EDD since its inception.
(ii) EDD sub-leases from the Department of Trade and Industry in terms of a Memorandum of Understanding (MOU).
(2) No, because since its inception, the EDD has been sharing premises with the dti in terms of a MOU.
(3) Not applicable
Reply received: May 2012
QUESTION NO 1016
DATE OF PUBLICATION: 26 April 2012
Mr M H Hoosen (ID) to ask the Minister of Economic Development:
(1) What were the outcomes that have been produced by the national accords signed for the 2011-12 financial year on (a) skills development, (b) basic education, (c) local procurement and (d) green economy;
(2) whether, with regard to the accord signed on local procurement, there has been any change in the procurement of (a) goods and (b) services by (i) the Government, (ii) public entities and (iii) local entities; if not, why not; if so, what are the relevant details;
(3) what was the total cost of (a) negotiating, (b) staging and (c) signing the accords in each case;
(4) whether his department has changed its (a) policies, (b) behaviour or (c) strategy in any of the affected departments since signing the accords; if not, why not; if so, what are the relevant details? NW1198E
REPLY
(1) Four social accords were concluded during the 2011-12 financial year, the last of which was signed as recently as six months ago.
The outcomes produced by the Accords are a series of commitments by the signatories, namely organised business, the trade unions, community organisations and government. The parties agreed to work together over the next few years to ensure that the objectives of the Accords are achieved.
Copies of the Accords setting out the detailed outcomes of the negotiations, are available on the Department's website (www.economic.gov.za)
Government will compile reports on the implementation of the Accords on the anniversary of the signing of each Accord, setting out the progress in the commitments made.
Information on progress to date was tabled during the EDD Budget Vote on 24 April 2012. In addition hereto, we provide the following preliminary report, illustrating some of the impact of the Accords to date.
We provide the following preliminary report, illustrating some of the impact of the Accords to date.
a. Skills development
In the National Skills Accord, social partners made commitments to train more artisans. In the past financial year, all parties enrolled 24,378 trainee artisans. Of this, government registered 9,017 new trainee artisans, state-owned companies (SOEs) 3,111 and the private sector registered 12,250.
In the Accord, SOEs committed to increase artisan, scarce skill and other types of training with eight SOEs setting a target of enrolling 4,639 new trainees in the past financial year. Together these SOEs exceeded their target, enrolling 6,573 new trainees. The major contributors were Transnet and Eskom. Transnet registered 3,506 new trainees in the past financial year against a target of 1,991. Eskom committed to enrol 2,150 new trainees in the past financial year. It exceeded this target by 354, enrolling 2,504 trainees. Eskom enrolled a further 5,159 unemployed matriculants and graduates in its system in the past financial year, compared with its target of 5000.
Government committed in the Accord to ensure the National Skills Fund (NSF) is effectively used to support skills that address the priorities of the New Growth Path. To give effect to this, a new funding framework has been approved by the Department of Higher Education and Training. The NSF is already funding rural development training programmes and EPWP training programmes and will commit in excess of R500 million for artisan development.
With regard to the commitment on SETA governance, the regulations for the conditions of service and appointment of the CEO of a SETA were published by the Minister of Higher Education and Training on 4 November 2011 and distributed to the SETAs for implementation.
b. Basic education
The Basic Education and Partnership with Schools Accord commits social partners to adopt underperforming schools. To encourage and facilitate this, several initiatives have been introduced
· the Millennium Labour Council leadership team (made up of business and labour) launched the Accord in Butterworth, Eastern Cape on 2 October 2011. Representatives of all fifty underperforming schools in the Eastern Cape attended the launch;
· provincial launches have taken place in Gauteng and the Northern Cape;
· the Department of Basic Education has introduced a campaign aimed at inculcating the culture of adopting schools; and
· signatories to the accord developed a draft Protocol on the Adoption of Schools.
With regards the adoption of schools, some progress has already been made with a number of corporates committing themselves, including ABSA, Alexander Forbes, the IDC and Nestle and COSATU adopting four underperforming schools, three in Soweto and one in Wolmaranstad in North West.
A further initiative aimed at developing a large-scale intervention in the education system is underway. It brings together development finance institutions, business associations, foundations and education non-governmental organisations (NGOs). The intention is to roll out a nationwide school improvement programme across districts, which is linked to rewards such as libraries and laboratories.
c. Local Procurement
Social partners committed to increases the quantum of locally manufactured goods they procure in the Local Procurement Accord. To give effect to this in government departments, municipalities and state-owned companies, the Preferential Procurement Regulations came into effect on 7 December 2011. In terms of these regulations, government has already designated several products for local procurement. These are bus bodies, power pylons, rolling stock, canned vegetables, clothing, textiles, footwear and leather, set-top boxes and oral solid pharmaceuticals. Work is underway to identify and designate further products.
To ensure the smooth implementation of these regulations, government, with its social partners and SABS, developed a standard to measure and calculate local content for use in tenders. Government also held a conference at the end of last year to inform and educate government procurement units about designation. The conference was also attended by the private sector.
Several initiatives have been introduced by organised business flowing from its commitments in the Accord:
· a capacity-building session on the Accord was held in February 2012;
· on 27 and 28 June 2012, a Supplier Diversity Development Conference & Business Opportunity Fair will be presented to ensure a broader understanding of the concept of supplier diversity; and
· a study of twelve pilot companies is underway (and will be completed shortly), aimed at understanding issues that may promote local procurement.
In terms of developing company level procurement strategies, fifteen companies have signed a pledge to improve their levels of local procurement, while organised business's supplier diversity council has twenty corporate members.
To encourage consumers to purchase locally manufactured goods, the Economic Development Department has entered into an agreement with Proudly South African in which the latter undertakes to run a buy local campaign and an awareness campaign on the label of origin. Proudly South African will also compile a database of local manufacturers which will be supplied to businesses, unions and community organisations to facilitate local procurement.
d. Green economy
In the Green Economy Accord, Government set a target of installing one million solar water heaters (SWHs) by 2014. Approximately 250,000 SWHs have now been installed. This has been a partnership between a number of departments and public entities, from Energy, Public Enterprises, Economic Development and Trade and Industry to Eskom and the IDC.
To accelerate the further rollout of SWHs, an agreement was reached through the SWH project steering committee (which comprises eight government departments, SALGA, Eskom, the IDC and DBSA) regarding access to funding. This funding mechanism was announced by the Minister of Finance in his budget speech in February 2012.
To localise the manufacture of SWHs, Government has worked with industry to manufacture more of the units in South Africa. In January this year, the SABS approved a new factory with a capacity to produce 8,000 units a month.
With regards sources of funding and financing, the IDC has already started assigning and approving projects related to the green economy under the R25 billion made available with about R5 billion in industrial funding used to support the entry of community investment groups into the green economy. The Minister of Water and Environmental Affairs has also announced a Green Fund, valued at R800 million over the next two years, aimed at providing finance for high quality, high impact green economy projects.
In terms of energy efficiency, Department of Energy programmes have received approximately R179 million for smart electricity metering for rollout in residential areas, while R600 million has been allocated to municipalities in programs that relate to energy efficiency and demand side management.
Finally, South Africa hosted a very successful COP17. Aside from the negotiations, we used the opportunity to showcase South Africa's green economy potential to visitors and investors, while the IDC launched a green jobs report wherein the job targets for various green economy subs-sectors have been proposed.
e. General
Since February 2012, the Economic Development Department has embarked on a capacity-building programme to build awareness and sensitise government departments and social partners at provincial level about the key commitments contained in the four accords.
To date, eight provincial workshops have been conducted in conjunction with provincial governments, with a ninth workshop being held later in May. About 670 business, labour, community and government leaders attended the workshops, including from Business Unity South Africa and its provincial structures such as the Cape Chamber of Commerce and AgriNorthWest, NAFCOC, the Women's National Coalition, and the three trade union federations, COSATU, NACTU and FEDUSA, and their affiliates.
(2) A report on the Local Procurement Accord will be compiled on its one-year anniversary.
To ensure the smooth implementation of the Preferential Procurement Regulations and designation at all levels of government, a standard for measuring local content has been developed, together with instruction notes for procurement officials and bidding documents. These will shortly be distributed to government and provincial departments, municipalities and state-owned companies.
Despite this process taking some time, there are already examples of changes being made in how government procures. Some significant recent examples include
· The Passenger Rail Agency of South Africa (PRASA) will make major investments in the coming years to replace its current rolling stock in the form of a Rolling Stock Fleet Renewal Programme which will see an estimated 7,000 multiple train units purchased for Metrorail.As rolling stock has been designated the tender advertised by PRASA has included a local procurement clause.
· The City of Johannesburg is planning and implementing a high quality Bus Rapid Transit system. It has finalised the specification for the procurement of 134 new buses. Part of the eligibility criteria is that all proposers must have local production capacity with preference given to companies who manufacture or assemble bus chassis and bodies locally.
(3) The cost of negotiating, staging and signing of the accords were kept in check as most of the accords were negotiated at the Nedlac Offices, the Department of Rural Development and the Department of International Relations and Cooperation where no costs were incurred in terms of venue hire and minimal costs were incurred in terms of catering.
The cost of negotiating, staging and signing of the four accords is estimated by the Department at about R161,700 covering recording, transcription, catering and flights and accommodation of signatories to the accords. Travel costs of government representatives are not included in the figures.
(4) Since the signing of the Accords, the Economic Development Department (EDD) and the entities it oversees have introduced several measures to implement the commitments contained therein.
With regards skills development, the Competition Commission has a graduate trainee programme, which employed fourteen graduates this past year, while the Competition Tribunal offered vacation internships to nine students.
To further stimulate training and skills development, EDD entered into an agreement with the South African Institute of Chartered Accountants (SAICA), in which SAICA commits to train 100 accountants to support small businesses.
EDD is also sponsoring a course at Wits University which provided training last year for 90 provincial public sector officials. This year, at local government level, we address economic development capacity, working initially to train 100 officials from five municipalities.
With regards local procurement, an agreement has been reached with a local manufacturer of office stationery, which allows EDD to buy submission files at a lower price than the imported product and make a saving estimated at R35,000 a year.
With reference to the green economy, at COP17, EDD and the IDC raised more than R800,000 to install solar water heaters (SWHs) through pledges by corporates, trade unions and individuals. In consultation with the KwaZulu-Natal provincial government, it was decided to install these SWHs in the Ihembe District Municipality. By March 2012, the 500 SWHs, funded by the pledges, had been installed.
Reply received: May 2012
QUESTION NO 820
DATE OF PUBLICATION: 26 April 2012
Ms D Carter (Cope) to ask the Minister of Economic Development. [Interdepartmental transfer on 26 April 2012]
(a) What number of chickens is imported daily and (b) from which countries are they imported? NW993E
Reply
The main sources of imports of chickens are Brazil, Argentine and the European Union.
Information on the quantity of imports requested has been prepared for the Economic Development Budget Debate scheduled to take place at the NCOP
on 17 May 2012 and will be made available on the day.
Reply received: April 2012
QUESTION NO 757
DATE OF PUBLICATION: 16 March 2012
Mr M H Hoosen (ID) to ask the Minister of Economic Development:
Whether his department has incurred any legal cost in the appeal against the Walmart-Massmart merger; if no, how was this conclusion reached; if so, what were the detailed costs?
NW925E
REPLY
The Department (EDD) was a party to proceedings involving the Walmart-Massmart merger at the Competition Appeal Court, involving both a review of a decision of the Competition Tribunal, as well as an appeal against the decision. Costs of approximately R1,4 million were incurred for the account of the Economic Development Department for the review and appeal at the Competition Appeal Court to date, and details are provided, together with the context, in the reply below.
The merger parties applied to the Competition Commission for approval of the proposed transaction, during late 2010.
In early 2011, the Competition Commission recommended that the Competition Tribunal approves the transaction without any conditions.
Based on this outcome, the Economic Development Department, together with two other government departments, approached the Competition Tribunal to participate in the proceedings.
Section 18 (1) of the Competition Act provides for the Minister of Economic Development to participate in mergers in order to make representations on public interest ground to the Competition Commission, Tribunal and Appeal Court, in any intermediate or large merger proceedings. The Departments of Trade & Industry and Agriculture, Fisheries and Forestry respectively, were permitted to intervene in the Competition Tribunal proceedings on application to the Tribunal. Their involvement arose from the potential impact that the merger may have on small farmers, local manufacturers and agro-processing sectors in the economy.
Following government's participation in the Competition Tribunal proceedings, the Competition Tribunal approved the merger in May 2011 subject to certain conditions, amongst others, the suspension of retrenchments for a 2-year period, preferential employment opportunities for 503 employees previously retrenched, recognition of SACCAWU's union position within the merged entity and the establishment of R100 million supplier development fund.
Government launched review proceedings against the decision of the Competition Tribunal and asked to be party to the appeal launched by the trade union involved, on the basis of both procedural and substantive defects in the Tribunal outcome. Government's objective in doing so was to ensure that all pertinent matters in relation the effect of the merger on employment, local manufacturers and small business could be ventilated before the Competition Authorities.
In deciding the matter on appeal and review, the Competition Appeal Court recognised the importance of public interest considerations in assessing any merger, in particular those relating to small business and employment in supply-chains. This has been at the heart of government's case during all the legal proceedings in this matter.
As a result of government's participation in these proceedings, the court found that the conditions that were imposed by the Competition Tribunal had not been sufficiently interrogated in the process. In addition, the court has ruled that an in-depth study be commissioned on the effects of the merger on small business and suppliers in South Africa. A further significant outcome of this process has been the court's ruling that the 503 employees previously retrenched should be re-instated.
The appeal process is not completed, since the court directed that three experts be nominated: one by government, one by Walmart and one by the trade unions. The costs of the experts work will be for the account of Walmart. Once the experts have concluded their work, parties may make submissions to the CAC, who will then conclude on the appropriate conditions.The legal costs (which include the costs of an economic expert) incurred to date by government as a result of its participation in the appeal and review proceedings before the CAC, amount to approximately R 4,1 million. It is not possible to separate out the costs only for the appeal, since the work conducted by the lawyers/and the expert covered both the review and appeal processes in what was essentially a single matter at the CAC. These costs are divided equally between three departments and include costs related to the appointment of senior counsel, junior counsel, an expert economist on competition, a team of attorneys specialising in competition law and other disbursements incidental thereto. EDD's share to date of the costs for the review and appeal to the CAC is therefore approximately R1,4 million.
The costs related to government's participation in the review and appeal proceedings before the CAC, should therefore be viewed in the context of the significant outcomes which have been achieved for the public in this matter.
Reply received: March 2012
QUESTION NO 731
DATE OF PUBLICATION: 16 March 2012
731. Mr I M Ollis (DA) to ask the Minister of Economic Development:
Whether any officials from (a) his department and (b) any entities reporting to him were on an official visit to Bloemfontein in (i) December 2011 and (ii) January 2012; if so, in each case, what (aa) is the (aaa) name and (bbb) position of the specified official, (bb) was the (aaa) purpose and (bbb) date of such visit and (cc) was the cost of (aaa) transport, (bbb) accommodation and (ccc) other expenses? NW899E
REPLY
Yes, 1 official from the Economic Development Department and 2 officials from SAMAF travelled to Bloemfontein in the first half of December 2011 on official business. Below find a table with the relevant details.
| Dept Name | Official | Position | Purpose | Date | Cost |
| EDD | Ms W Mapira | CD: Economic Planning | Local Economic Development Workshop convened by the Free State Provincial Government | December 1 & 2, 2011 | Transport: R4445.00 Accommodation: R1324.55 Other: None |
| Samaf | Mr L Mamatela | Acting CEO | Meetings with potential financial intermediaries, including Moliko Trust and the Mangaung University of Free State Community Partnership Programme | December 7 & 8, 2011 | Transport: R9983.30 Accommodation: R2400 Other: None |
Reply received: March 2012
QUESTION NO 569
DATE OF PUBLICATION: 9 March 2012
569. Ms M R Shinn (DA) to ask the Minister of Economic Development:
(1) Whether his department has an internal audit unit; if not, why not; if so, (a) how many staff members are employed in the unit and (b) what (i) is the structure and (ii) are the functions of the unit;
(2) whether the audit committee considers the internal audit reports; if not, why not; if so, what are the relevant details;
(3) whether he holds meetings to discuss (a) the internal reports and (b) their findings with the audit unit; if not, why not, in each case; if so, (i) on what dates since 1 April 2010 has each specified meeting taken place and (ii) what are the further relevant details?
NW734E
REPLY
1) Yes. The Department has an internal audit unit. There is a co-sourcing structure as advised and recommended by the Auditor-General.
We have one permanent auditor (at Director Level) and an administrative officer. In the 2011/12 financial year, the Department co-sourced the services of external experts to assist the completion of work of the required standard.
The Internal Audit Structure
The Internal Audit Unit consists of a Director; Deputy Director and Admin Officer.
The function of the internal auditing unit is to determine whether the Department's network of risk management, control, and governance processes, as designed and represented by management, is adequate.
(2) Yes. The Audit Committee does consider internal audit reports; internal audit reports are a standing item on the Audit Committee meeting agenda.
(3) The Accounting Officer in the first instance meets with the Audit Unit, and
briefs the Minister in the regular meetings that are held with the Director General.
The findings of the latest internal audit report were discussed between the Minister and the Audit Committee on 15 March 2012 and between the Accounting Officer and the Audit Committee on 23 March 2012.
Reply received: March 2012
QUESTION NO 483
DATE OF PUBLICATION: 1 March 2012
Whether he has met with the internal audit committee in the (a) 2010/11 and 2011/12 financial years; if not, why not; if so, (i) on which dates did they meet and (ii) what are the further relevant details.
NW632E
REPLY
(a) No. The Department had been newly established and an Internal Audit Committee was thus established towards the end of the financial year 2010/11. The Minister met the Auditor General to receive feedback on the 2010/11 audit.
(b) Yes, during March 2012 the Minister met with the Internal Audit Committee to be briefed on the scope of work undertaken by the Internal Audit Committee, identify risks to be addressed by the Department and brief the Committee on the development of the Department's work and mandate. The Minister also met with the Auditor General to discuss the findings of the audit of the Department and agencies reporting to EDD.