Chairperson, hon Minister and hon members, the Bill before us today is a very simple one. It allows for the transfer of South African Express shares and interests from Transnet to the Department of Public Enterprises. This will enable Transnet to focus on its core business, namely freight logistics. It will also provide for the most strategic utilisation of South African Express. The SAX is a regional airline which operates smaller gauge aircraft and feeds into bigger airlines like SAA. Regional airline services are particularly well suited to many South African domestic and African regional geographic areas. A number of thin routes that were loss-making routes when operated by a larger gauge of equipment are now operated successfully by SAX. We are proud to note that SAX has been performing well and that it has been operating profitably, most notably since 2004. We have no doubt that it will continue to do so. While we fully support the need for SAX to be financially sustainable, we do think that occasionally national developmental imperatives should supersede the need for large profits. In this regard, I specifically allude to rural economic development.
There are some thin routes, for example into the Northern Cape, which at this time do not appear economically viable. These areas have demonstrated potential for economic growth. The lack of efficient, reliable transport services however is hindering this growth. SAX is a state entity and should remain one precisely because it has a strategic role to play. Where potential for growth exists, SAX should be willing to service that area.
SAX also has an important role to play in ensuring regional economic integration. Through the transfer of people and goods, the airline will strengthen the interaction amongst members of the Southern African Development Community.
The Select Committee on Labour and Public Enterprises supports the Bill and we urge this House to do so. I thank you, Chairperson. [Applause.]
Debate concluded.
Bill, subject to proposed amendments, agreed to in accordance with section 75 of the Constitution.
Order! Before we proceed to the next Order of the Day, I want to bring to your attention the fact that the remaining Orders of the Day are all section 75 matters and that we need a sufficient quorum to be procedurally and legally correct in voting on these matters. I therefore really want to impress upon members to ensure that at least we have a quorum at all times as we are dealing with Bills that require our numbers, not provinces per se.