Chairperson, Members of the Executive Council of Provinces, members of the NCOP, hon members of other Houses that may be here, ladies and gentlemen.
In addressing this House on previous occasions, we have consistently argued that preserving and enhancing South Africa's industrial capacity is intertwined with the challenge of promoting a broader and more equitable distribution of economic activity throughout the country.
The impact of the recent global economic crisis and recession on the patterns of economic development in our country has reinforced our view. Strong economic forces continue to underpin the tendency to concentrate on economic activity in established urban areas whilst simultaneously excluding from economic opportunities people who reside outside these areas. As we previously reported to the House, industrial development has enormous potential to generate decent work, including through overcoming regional disparities in economic development.
The Industrial Policy Action Plan, now commonly referred to as Ipap 2, is a three-year rolling Industrial Policy Action Plan for the Medium-Term Expenditure Framework, MTEF, period commencing in the 2010-11 financial year and ending in the 2012-13 financial year. It is designed to expand our industrial base in critical sectors of production and value-added activity with the bias towards those that are more labour absorbing.
The analysis underpinning Ipap2 starts by recognising that we need to place our economy on a new and different growth path. There are critical imbalances which became evident during the recession and even before. The most important of these is that when we grew - before the recession - consumption-driven sectors led by credit finance grew to about twice the rate of production sectors.
The Ipap2 then identified as a series of crosscutting as well as sectoral interventions. The most important crosscutting interventions are those which require drastic changes in our procurement regime as well as in the manner in which we are engaging in industrial financing. The Ipap2 is a product of collaborative and collective work by the economic and employment clusters in Cabinet. Although the Department of Trade and Industry stands at the centre of much of industrial policy and practice, Ipap's success is critically dependent on bringing about greater coherence and mutual support between ourselves and other government departments and agencies.
Hon members, we are well aware that achieving success will be an enormous challenge. We believe that, were it not for our intervention in several areas of the economy, we may, in fact, face a greater danger of de- industrialisation than is now the case. Our support programmes for the motor industry, for example, have been one recent success. The recent investment commitments by Volkwagen South Africa, BMW South Africa, and the Ford motor company of South Africa bring in an investment of about R9 billion between 2009 and 2013; and we support at least 3 500 direct jobs in vehicle assembly. These investments will in turn catalyse an estimated R4 billion of the investment by component manufacturers, sustaining the further 20 000 jobs during the same period. These investments were all supported by the work we did on the Automotive Investment Scheme.
In assessing the previous Motor Industry Development Programme, the extent of the auto component sector's significant multiplier impact through strong backward linkages to other sectors of the economy, as well as its potential to make a significant contribution to create decent work, became more apparent. Our new programme will extend existing benefits previously only available to light vehicle manufacturers and first to their suppliers through the Productive Asset Allowance of the Motor Industry Development Programme to all firms in the automotive component sector.
A second example of successful intervention is the Government Assistance Programme introduced in 2008, which has put South Africa on the global map as a supplier of business process services. A total of 6 000 jobs have already been created in the past two and a half years. The challenge, now, is to attract new investments in the context of increasing competition for investment in this sector. We will, this year, be embarking on a review of our strategy to ensure that it is responsive to new realities in the sector.
Further progress can be reported in respect of the Enterprise Investment Programme, amongst others. A total of 290 projects investing R6,1 billion and creating 11 336 jobs have received approval for Manufacturing Investment Programme grant funding, in the past year. More than 60% of the approved companies are in sectors prioritised in our first Industrial Policy Action Plan, namely capital equipment, automotives, chemicals, plastics, pharmaceuticals, forestry, and furniture. A total of 68% of these approved projects have already started production. The Tourism Support Programme which is the other subcomponent of the Enterprise Investment Programme, EIP, has granted approval to 164 projects with a projected investment of R2,3 billion, creating approximately 5 000 jobs.
A third example of successful support for development is through the Black Business Supplier Development Programme, BBSDP, which assists and prepares black entrepreneurs to take up business opportunities by providing training and access to productivity and competitiveness-enhancing knowledge services. During the past year, more than 4 000 enterprises across all provinces received technical and standards training, productivity-enhancing computer software, and marketing and promotional materials. New guidelines will come into effect in the second quarter of this financial year, extending the scope of this assistance. This will include a partial grant for productivity-enhancing technology, acquisition of tools, equipment and machinery for enterprises that have strong potential for further growth and integration into the formal industrial supply chains.
In the context of these evidence-based achievements, we are convinced that we need to move swiftly forward with the work which we have identified in Ipap2. We are, now, as I have been saying, firmly in implementation mode. This Ipap2 kicked off at the beginning of the financial year on 1 April and all the quarters which we have identified started on that date.
Hon members, I had an opportunity to speak on matters of trade policy in the National Assembly yesterday. I don't want to repeat the points in detail here. I do, however, welcome the continued keen active interest of the National Council of Provinces in international trade matters and we look forward to continue to work with and to brief you further on many of the important matters. We obviously indicated, yesterday and in the past hour, that the Trade Policy Paper underwent a number of processes and it's close to being finalised. We indicated that there are some very important developments taking place in the Southern African region, particularly with a forthcoming summit of heads of state and governments of the Southern African Customs Union to debate and discuss a way forward to turn soccer from a mere arrangement of convenience built around the revenue-sharing formula into a real instrument for developmental integration. We have indicated that we will pursue the work to enhance and develop the free trade area which came into force in the Southern African Development Community, SADC, in 2008; and we are also genuinely committed to extending African integration through pursuing the Trilateral SADC-East African Community-Common Market for Eastern and Southern Africa, Comesa, free trade arrangements which, when it comes into force, we'll put in place a free trade area quite literally from Cape to Cairo in an area of 700 billion people.
We pointed out some important developments which will be taking place in our relations with countries of the global South; the Southern African Customs Union, SACU-Mercosur Preferential Trade Agreement is now before Parliament for ratification. We are working energetically on trade negotiations with India and when those processes are complete we have committees to work on the trilateral arrangement between Mercosur, India and SACU. We've indicated that we do not see much prospect of the World Trade Organisation, WTO, completing, this year, very important issues that are at stake there, but our commitment is to continue to engage with parliamentarians on all of these matters.
Hon members, industrial policy requires a supportive regulatory environment to support business and protect consumers. In 2008, the Department of Trade and Industry piloted three major pieces of legislation through Parliament which were assented to by the President last year; and two of them are intended to come into force in October this year. The new legislation in question will impact on all our citizens. Firstly, there is the new Companies Act. This simplifies business registration, reduces unnecessary onerous financial reporting burdens on small, medium and micro enterprises, SMMEs, and provides new protection against unscrupulous practices for businesses in financial distress. We believe that this is a major piece of policy reform and, in fact, we are embarking on road shows around the country right now to alert businesses about the importance of this legislation.
Secondly, the new Consumer Protection Act provides, for the first time, safeguards for consumers through compulsory product description and labelling, product safety regulations, product choice and information disclosure. In addition to these two, the implementation of the Competition Amendment Act - which is now passed into the custody of the Department of Economic Development - will allow sectorwide and general market inquiries to be conducted to deal with uncompetitive outcomes and restraints on competition in key sectors of our economy.
To implement these new pieces of legislation, the necessary regulatory processes will be finalised this year. Given that the new laws will impact on all our citizens in all our provinces, we are beginning - as I said - to initiate and undertake widespread education and awareness campaigns, not only on the Companies Act, but also on the Consumer Act and on the competition legislation. With regard to the Fifa 2010 World Cup, we have published for comment the Fifa Ticketing Regulations. These regulations seek to ensure that the granting of temporary licenses provide opportunities for small, medium and micro enterprises from previously disadvantaged communities.
I thank all the MECs and provincial legal authorities for their co- operation in developing the 2010 liquor policy and Regulations. While we have been concentrating on developing new regulations, we are, at the same time, engaged in undertaking an impact assessment and comprehensive review of the gambling industry and legislation pertaining to this.
In consultation with colleagues at provincial level, we have established a Gambling Review Commission to assess the extent of gambling activities and its socioeconomic impact. The commission has conducted public hearings and will produce a report which we intend tabling in Parliament in the second half of this year.
Chairperson, enterprise development remains a key objective. We continue to learn as we implement. Based on these lessons, part of our response to improve support for SMMEs is based on the one-stop-shop framework. This framework provides for the collocation of SMME's support services through the relevant agencies at both national and provincial government level. The Small Enterprise Development Agency, Seda, is engaging with both provincial and municipal structures not only to collocate, but to cofund the delivery of some of the products and services within the Seda branches.
In addition to this, we continue with the implementation of our broad-based black economic empowerment, BBBEE, initiatives. Following the closure of the public commentary period, a team of the DTI and National Treasury is now working on aligning the Preferential Procurement Policy Framework Act, PPPFA, with the BBBEE Act. One of the aims of this alignment is to strengthen industrial development in support of the new growth path in our economy. We will further strengthen the broad-based black economic empowerment legislation by creating a punitive dispensation to prevent circumvention of broad-based black economic empowerment while developing incentives to promote greater compliance with BBBEE policy.
The launch of the BBBEE Advisory Council earlier this year signifies an important milestone. This is so because one of the key functions of the council will be to monitor the implementation of broad-based black economic empowerment by all organs of state, public entities, government departments, sector charter councils, and the general public at large. Aspects of the Act that require immediate attention include dealing with fronting, the policy implementation framework, regulation of the verification process and refinement of the codes; work is proceeding on all these matters.
In the area of co-operatives development, in consultation with the National Economic Development and Labour Council, Nedlac, we are finalising the Co- operatives Development Strategy and a Co-operatives Amendment Bill. My colleague, Deputy Minister Ntuli, will spell out some of the key issues later in the debate.
Hon members, with regard to regional economic development, our efforts have not always yielded the requisite results. However, as I indicated earlier, we believe that industrial development is a key component for addressing unbalanced regional development. Going forward, our policy focus will be on financial and institutional support as well as specific measures to support and develop small-scale industries through the promotion of regional industrial clusters. Our Regional Industrial Clusters Programme will have the following features: Firstly, the use of an industrial cluster approach to unlock economic development in underdeveloped areas.
Secondly, the identification of economic regions agglomerating a number of municipalities within and across provinces, and implementing the targeted economic development strategies for each economic region.
Thirdly, the concentration and co-ordination of various support measures within the DTI with support programmes from other governments, state-owned enterprises and the private sector organisations to support enterprises within an identified cluster.
Fourthly, the provision of a wide range of business development support services to enterprises within supported clusters.
In addition to all of these, we intend to work energetically with the other spheres of government to support local economic development.
Chairperson, as part of these efforts to broaden participation in economic activity, the DTI is also increasing support for entrepreneurial development. We have begun doing so by undertaking innovative, collaborative and strategic partnerships with institutions of higher learning. We have also set targets for skills development to produce additional engineers, technicians, and other skilled people to increase the number of qualified people in a variety of areas.
The advancement of women's economic empowerment cannot simply be a platitude. We have, therefore, integrated gender equity measures into our programmes to facilitate the participation of women in the economy and to enhance their contribution to the overall objective of empowerment. Further initiatives for this year include seeking Cabinet approval for strengthening the SA Women Entrepreneurs Network as an Apex body for women sectoral organisations. This work has been spearheaded by Deputy Minister Ntuli. We will also be approaching the Cabinet with a strategy on gender and women economic empowerment outlining integrated solutions that include directly tackling barriers that prevent women's economic emancipation.
In addition, given the higher than average rate of unemployment that our youth is facing, interventions will seek to increase the participation of youth in the economy and create jobs for young people. We will be submitting the Youth Development Strategy to Cabinet for approval during this financial year.
Finally, to deliver on our mandate, the DTI has to be a high performing organisation. Beginning with the new Human Resource Strategy, we are well on the road to developing a professional programme for economists, specialising in industrial policy and sector work. All in all, greater support will be provided for our bursary scheme, our postgraduate research programme and internship programmes as well as various functional skills and management development programmes. Good progress has been made in filling our senior management positions. In addition to this, we are focusing on the development of women in the department to create a pool of talent for senior management positions.
Finally, Chairperson, in the light of the challenges facing the Public Service around financial mismanagement, I would like to commend the department on its efforts in continuously receiving unqualified audit reports from the Auditor-General and in ensuring that suppliers are paid within a 30-day period. I thank our Deputy Ministers, MaNtuli who is with us today, and Thandi Tobias-Pokolo, who, unfortunately, is ill, the director-general and the staff of the DTI, the chief executive officers, and the chairs of the boards and all the workers in the various agencies. I thank you and I trust that this House will support the DTI's Budget Vote. [Appaluse.]
Hon members, just allow me to welcome hon Watson who is back in the House after a long absence. [Applause.] We are happy to see your happy face and that you are back in the House again. I hope you will heal quickly. Please don't strain yourself. You should take it easy.
Chairperson, thank you for the good wishes, phone calls, messages and prayers. [Applause.]
Chairperson, when we celebrated the 50-day countdown to our hosting of the World Cup two weeks ago, we reflected on how far we had come since May 2004 when we won that right to host the World Cup. As South Africans and as a host country, we have consistently defied conventional wisdom and exceeded expectations in so many areas. The World Cup has brought the three levels of government, the private sector, NGOs and citizens together across all the provinces. We have all worked very hard and the time is almost upon us to reap the rewards of our combined efforts.
We all know that tourism is one of the pinnacle sectors in terms of its capacity to fuel global economic activity and also the creation of employment. In 2009 we saw a worldwide downturn in tourism and travel activity, with figures from the United Nations World Tourism Organisation, UNWTO, which indicated that international arrivals fell by an estimated 4% compared to 2008. However, in South Africa, we managed to outperform not only that trend, but also the performance of most of our international competitors. We saw growth in foreign arrivals of 3,6% which is especially positive considering that many of our primary source markets in Europe were severely depressed in terms of consumer spending.
In total, we welcomed more than 9,9 million foreign arrivals to South Africa last year. Our government has identified tourism as a key contributing sector to the medium-term strategic priorities for growing the economy and creating decent work. Last year, that led to the decision to form a new standalone national Department of Tourism. Over the next three years we will be phasing in the filling of positions in the department in line with our financial resources.
The department recognises the national priority of creating decent employment through inclusive economic growth. In this regard, we will increase job and entrepreneurial opportunities and also encourage the meaningful participation of previously disadvantaged communities and individuals. In the medium-term, the department aims to increase investment in the tourism sector and the internal tourism, but also to deliver a world- class visitor experience. We will also focus on entrenching a culture of tourism amongst South Africans and increasing the sector's contribution to job creation and economic growth.
The department is now finalising the National Tourism Sector Strategy which will set out a vision for a successful world-leading industry and an ambitious path to achieve this. It is envisaged that this strategy will address the government and the tourism industry's objectives in terms of, amongst others, economic growth, investment and transformation within the travel and tourism sector. It will also talk to people development, rural development, job creation, domestic and foreign arrivals with very specific targets and the delivery of a world-class visitor experience. We are planning to launch the strategy for public comment before the end of May 2010.
The Tourism Grading Council of South Africa, which forms part of South African Tourism, successfully completed a review of the grading system for accommodation establishments. This will improve levels of service delivery in the implementation of the grading system across our country. One of the actions from the review recommendations was the recent appointment of provincial master assessors who will focus on strengthening relationships with the industry, but they will also be assisting provinces in achieving their competitive potential.
We are also constantly expanding our stock of quality assured accommodation establishments across the country. A total of 7 710 establishments had been graded as of September 2009 compared to about 4 600 in 2005. The development of World Cup infrastructure will impact positively on growth in various ways and across numerous industries. We will host a truly world- class event which will enhance South Africa as a tourism destination within the global community. The championship will be a showcase that will introduce South Africa to millions more visitors. The media coverage and the focus on our country in the run-up to and during the event will be unprecedented.
In terms of our own figures, we expect 34 billion people cumulatively to watch the World Cup from 11 June to 11 July. It is a massive opportunity. In terms of accommodation our department conducted an audit and we know that we have more than 200 000 rooms available across the country, which will more than fulfil the World Cup needs. We now have a very good picture of the number of accommodation establishments and rooms in our country and also very importantly, where they are situated. This will be our strategic advantage in terms of our future planning.
On the issue of pricing, we launched an investigation in February in response to persistent allegations of excessive price hikes and also the requests from members of the select and portfolio committees. I am happy to report, and that report has been made public, that the results of the audit indicated that the vast majority of our accommodation establishments were not charging exorbitant rates, and the facts and the figures are there for all members to analyse and look at. They are broken down by region, by city, and so on.
In terms of information provision, we have launched a national tourism contact centre for South Africa as a single point of call for all tourism- related information. The contact centre consists of a comprehensive website and the call centre which is available 24 hours a day, seven days a week and will serve customers in seven international languages. The website and the call centre provide a wide range of accurate and up-to-date information on tourism and travel.
This includes information on attractions, activities, experiences, services, restaurants and routes across the entire country. In addition to that, on Vote 35 we have state-of-the-art visitor information centres. A number of members were present when we did that. That was in Mangaung, Polokwane and Nelson Mandela Metro, Mbombela and Rustenburg. These centres will leave a lasting legacy for tourism in terms of information provision and service excellence.
All across our country, our stadiums have all been designed as world-class, multipurpose facilities, capable of hosting not only sporting events, but also music and cultural events. Through ensuring that there is an integrated and co-ordinated intergovernmental approach to securing the hosting rights of strategic international events, the department intends to boost future events tourism. We have the figures available for members as to how many conferences and international meetings were held, how many we have won the rights to host over the next few years, and how many of those we are in the process of bidding for.
We also recognise the significance of national events as a source of domestic tourism revenue that we put in place to drive growth in this area. These mechanisms will include packaging easily accessible information about provincial and local events through interdepartmental information systems.
On behalf of the department, I would like to thank the chairperson, hon Gamede, and members of our select committee for their input and dedication. I am also grateful to our dedicated colleagues in the department and the Acting Director-General, Mr Dirk van Schalkwyk, for their commitment and hard work. I would also like to take this opportunity to welcome the newly appointed Director-General Mr Kingsley Makhubela, who is sitting in the public gallery there. At present, he is the Deputy Director-General in the Department of International Relations and Co-operation, Chief of Protocol in Government. He will start as our director-general on 1 June.
I would also like to thank the Deputy Minister for her passion for the industry and for her support. To the hundreds of thousands of visitors that we are expecting to the World Cup, I would like to welcome them and encourage them to enjoy our special South African hospitality and the diversity that our provinces are going to offer. It is an experience that you will never forget. To my fellow South Africans, our time has come. Let's host that event with distinction. I thank you. [Applause.]
Chairperson, the committee supports both Budget Votes, the one on Trade and Industry and the other one on Tourism. I will deal with both departments, but my colleagues will deal specifically with each department separately.
We are happy as a committee that both departments have been getting a clean bill on their finances. We commend them for that. During the first decade of freedom government succeeded to a moderately significant degree in promoting the implementation of policies on industrial development, enterprise promotion and broad-based black economic empowerment. Although government programmes qualitatively assisted the poor, its redistributive capacity failed to integrate the poor into the main stream economy except for a smaller section of the black population.
This failure was attributed to the adoption of restrictive macroeconomic indicators and targets. The previous government's industrial plan fell short on creating labour-intensive jobs and reintegrating small and micro enterprises into the main stream of the economy.
The economy had an average growth rate of 3% from 1995 to 2002, but the rise in unemployment from 1,9 million to 4,4 million during the same period effectively meant a jobless growth. The economy had shed jobs in the manufacturing and mining sectors and showed the growth in financial and services sectors. In its National General Council, NGC, in 2005 the ANC concluded that central challenges facing our movement in the second decade are to defeat poverty and substantially reduce the level of unemployment.
Therefore, it is against this background that the 2010 strategic plan of the Department of Trade and Industry, DTI, needs to be analysed for its compatibility with the ANC's strategy and tactics. Against this backdrop of the 2007-08 economic recession, the DTI's Medium-Term Strategic Framework, MTSF, has identified the rapid fall in gross domestic product, GDP, and substantial rise in unemployment as major challenges that require urgent intervention by government. According to the 2010 Budget Review, GDP declined by 1,8% in 2009 compared to the annual growth of 4,9% between 2006 to 2008. As has been said, the official unemployment rate was about 24% to 26% in 2009 compared to the annual average of 22% in 2006 and 2008 as the hon Minister said in the interview on TV this morning.
In the light of this, one needs to examine the strategic plan of the DTI to ascertain whether it addresses the ANC's goals of decent work, economic growth, infrastructure development and balanced global trade as levers of fundamentally transforming the South African economy.
In the 2010 Division of Revenue, provinces were allocated R261 billion and local government R938 million. The DTI implemented policy interventions in the automotive, clothing and textile sectors.
Challenges that were identified are lack of mainstreaming of the Industrial Policy Action Plan, Ipap, in state-owned infrastructure projects. We call on the department to intensify its co-ordination with provinces in support of industrial interventions in labour-intensive sectors.
On empowerment enterprise development and development finance, the challenge has been fragmented on interdepartmental and intergovernmental co- ordination. The department must address the issue of access to start-up finance and micro loans even for townships and rural areas. There are situations where communities would be assisted to get finance of about R100 000, but they would say you must put up about R10 000 first. This issue is a challenge.
As the Minister also said in the media yesterday we envisage investors investing about R105 billion. We urge the department to make the cost of doing business cheaper and accessible so that these investors come in. In Richards Bay, for example, a desert has been lying fallow since 2002. However, a few weeks ago, it did get some funds from the department and there is some action now. In trying to make business better, we would like the department to facilitate the access in doing that.
During our oversight visit to Mtubatuba a few months back, we identified challenges where people had markets - plants or something but they were short of markets. The Small Enterprise Development Agency, Seda, was contacted on the spot, but to date we haven't gone far with that issue. The same thing happened when there was the Taking Parliament to the People event in Limpopo. People were saying, "We can assist and help ourselves but we need markets to sell these things so that we can fend for ourselves."
There is an issue which I raised with the director-general about a committee member, Mr Khuzwayo, who said something about accessing these offices as they are far away from the rural areas. He was once asked to drive to an office that was about 75km away, only to sit in a meeting for two minutes to arrange the next meeting. That is the nature of the inaccessibility of offices. That meeting was aimed at setting up a business plan.
We commend your leadership and participation in the World Trade Organisation, WTO, and hope that your further participation in the forthcoming round of negotiations assists the country. The country needs more participation on India, Brazil and South Africa, Ibsa, and Brazil- Russia-India-China, Bric, so that it becomes Brazil-Russia-India-China- South Africa, Bricsa.
We would want to strengthen the south-south relations on the European Union, EU. Today we have ratified one agreement on the EU, the African Union, AU, and Southern African Development Community, SADC. We are happy as a committee that the Ipap2 is moving and is now in motion and is in the implementation phase.
On the issue of tourism, I would be referring to two of the ANC's identified priority areas for the next five years, namely the creation of decent work and sustainable livelihoods, education and capacitating our people to play productive roles in building our nation and to fill positions of employment successfully.
A sustainable increase in the number of both domestic and foreign tourists has resulted in the continued creation of decent jobs in the tourism sector. It is estimated that for every 11 tourists who arrive, a job is created. On this basis, it is projected that direct employment will increase from 600 000 to 800 000 over the medium-term.
In total tourism has contributed R356 billion to our national economy since 2003, with an average spending of R8 300 per tourist, even though our target was R9 900. The aim is to increase this average and the direct contribution of tourism to South Africa's GDP by 3%, as the hon Minister has said. It is at 3,6 over the medium-term.
Business tourism currently represents approximately 6% of all foreign arrivals in South Africa. This represents more than half a million visitors per year who come to South Africa for meetings, incentives, conferences and events. In 2008 these business tourists spent an average of R5 600 when in South Africa. This is an increase of 40%.
The prevailing international conditions did not cause the ANC-led government to retreat and withdraw as has been the case in so many other countries. They are rather provided a space for moving towards a significantly more labour-intensive growth trajectory.
ANC policy recognises that our cultural heritage sources and facilities, including those previously neglected, should be popularised, preserved, democratised, be opened and belong to all people. It also follows that because we are proud of our rich culture and heritage we want the rest of the world to also feel, see and experience these emotional assets.
The 2010 Budget was tabled within the context of a deep global crisis brought on by the crisis in the financial sector in developed countries. Although not immune to the ensuing global economic downturn, South African tourism has so far resisted the financial crisis better than any other sectors. There is growing evidence that tourism and travel can make a valuable contribution to the process of economic recovery.
There are still many areas that remain undiscovered by tourists and these areas range from our cultural villages in deep rural areas to our heritage places that define our new democracy and the heart of South Africa's attraction.
It is important to note that South Africa is home to eight World Heritage Sites. All these places are of outstanding value to humanity. The transformation process, which is a key issue in tourism, has over the past 16 years undergone a number of phases, each building upon what has gone before, but with a necessary continuity and change, as demanded by the ANC and by the objective conditions that face our economy.
We are entering a new phase of a new growth path. It is this new growth path that today's Budget Vote debate must speak to. For far too long tourism has lacked the necessary economic transformative component of building broad-based black economic empowerment, BBBEE. In particular, the sector lacked in building one of the most important components of broad- based black economic empowerment - that of social capital - whereby the broadest sections of our communities become economically empowered by collectively owning their wealth.
When we look at the annual report, there are certain issues which were raised by the Auditor-General. We hope the department has been taking care in respect of these issues of ever since they were raised last March.
The use of consultants by the department was another issue of concern. We think this is improving. The committee supports the budget.
Chairperson, hon Minister, hon Deputy Minister, all MECs, my hon colleagues, distinguished guests, ladies and gentlemen, while recovery from the global economic crisis is evident in many parts of the world, our country is still in the midst of an economic recession in which the manufacturing and mining sectors have been the most affected.
Turning the economy around necessitates a new way of thinking and this entails making difficult decisions that shape the country's policies and programmes for the years ahead.
Further, government will need to forge relations with the business sector and organised labour to effectively deliver on public services with persistent unemployment and high levels of inequality characterising the country. It is important that future policies create and offer all South Africans better economic opportunities
The National Treasury has projected a 1,5% growth in the South African economy in 2010. The projected growth this year is expected to be driven by increased consumer spending and government investment in infrastructure. But the challenges still remain in the downstream economy characterised by a vulnerable manufacturing sector. Local manufacturing is currently at a disadvantage and is unable to compete with manufacturing in other countries due to the lack of skilled labour, the lack of investment in this sector, and the high price of raw materials required for manufacturing.
Although significant growth in the automotive industry was realised through the Motor Industry Development Programme, the majority of the components used in the production process were imported. The revenue that could potentially have been generated by local manufacturers was lost to imports of components produced internationally. There are many who argue that South African manufacturing is of poor quality, largely because of the lack of skilled labour. However, the reality is that the training of the workforce will only take place if a need for skilled workers is created.
Currently, manufacturers are being severely hampered, largely because they are unable to purchase raw materials at good value, due to high import duties. Many factories in the country have gone out of business because their customers were able to source and buy imported goods at a far lower price than those produced locally. We need to look seriously at drastically reducing the current duties imposed on the import of raw materials used for manufacturing. To be able to compete in the global market, we should consider the idea of imposing a zero rating on raw materials that are unobtainable in South Africa and raise tariffs on downstream industries to promote competitiveness and prevent loss of revenue from tariffs.
In the meantime, the Department of Trade and Industry, DTI, should also review and renegotiate trade agreements that have become either outdated or redundant, such as the Southern African Customs Union, SACU, which has long- standing, outdated agreements with our neighbouring countries which allow duty-free imports that benefit the countries involved, but at great cost to South Africa.
Our country is in desperate need of investors. The government must align itself with the business sector and form relationships that will allow local manufacturing to prosper by creating a friendly business environment as well as an attractive incentive scheme.
In just over a month, the 2010 Fifa Soccer World Cup will take place in South Africa. This historic event will bring with it many opportunities, as well as many possible risks for our nation, such as a potential economic downfall, following the World Cup.
The Department of Tourism is well prepared for the World Cup, although the recent global economic crisis as well as the restrictions that Fifa has placed on local industry have created many difficulties.
Both the DTI and the Department of Tourism should formulate an evaluation plan that will measure the effect of the World Cup in terms of its influence on the economy. It is important to understand the actual value of hosting such events in relation to the money and efforts we spend on planning and preparing for them.
In addition, we need to ensure the integration of tourism priorities and plans into local, provincial, as well as national government planning, and facilitate interdepartmental contribution to tourism growth. There is also too much separation between the overseas departments and better communication is needed between them. Resources and information should be shared between governmental departments. The departments will be more financially and strategically effective if there is efficient and consistent communication.
Sharing of knowledge and ideas between all nine provinces is also important through joint initiatives between the three spheres of government to reduce duplication and costs. This will create a better understanding of how each department is working towards branding South Africa internationally. I thank you.
Chairperson, I feel privileged to be part of this debate. I will start off with trade and industry and the economy. I think we have just come through a downturn that has seen us shed 880 000 jobs over the past four quarters.
One wonders, if we did not have this massive window in front of us called the 2010 World Cup, what would that job shedding actually have been because, as a country, we have invested a huge amount of money into infrastructure. I think that has helped us to cushion a major part of that downturn blow.
However, that made me think specifically about the Western Cape, where that an infrastructure upgrade and investment we have of R14 billion. We have seen, over the very short while, upgrades in various ways: We have seen upgrades in a really great looking and a functional new airport, and we have seen the building of a wonderful new stadium, amongst other projects. Then one wants to contrast that with how we deliver on our housing. One has to just look at those two, infrastructure and housing, where we are inundated with problems of houses cracking and falling to pieces. Both of these form part of the economy. They both play a major role in our economy and I think what we need to do is to spend a bit of time in investigating why, on the one side, we have been so successful and, on the other hand, we have failed so dismally.
I would also like to talk a little bit about trade matters, as the Minister also mentioned. There is one concern that I have. There was a very successful visit to the UK not so long ago by the President. One of the matters that were discussed there was the doubling of trade - the doubling of trade over the next five years.
We are already two months into that next five years since that discussion took place. And, I think, if we really want to be serious about doubling trade with one of our major trading partners over the next five years, we need to see a plan.
I am prepared to commit from the Western Cape. I do think doubling is quite in order and I am prepared to commit wherever possible from the Western Cape to reach that target. But I think we need to actually have a fully- fledged plan on the table to be able to achieve and reach at least somewhere towards that goal.
I also want to talk about the SMME Development and specifically refer to the City of Cape Town with reference to an item that is being tabled at the moment where we have policy differences between the national government's policies and the provincial government's policies of the provincial party in the Western Cape's policies. And that is specifically around BEE. I think the City of Cape Town can be a prime case and we really need to investigate that to see if there are differences. That is how democracy works.
We learn from each other and one should be given the space to actually prove that there are policies that are different and that we actually adopt those policies. It has been shown since 2006, in the City of Cape Town, that there have been major differences with regard to procurement, specifically from the Human Development Index, HDI, and SMMEs.
In the city we have seen 10 000 vendors in 2007 increase to 15 000 in 2010. And at the same time, we also have seen that the HDI and SMME component make up 80% of that component. That really shows that it is the policy difference and it has worked. I think we need to put that challenge out there to say let us look at that policy difference and see how we can actually influence the other side to make a difference.
I also want to say to the Minister that perhaps we need to relook the training layoff scheme and the money that has been made available. I know that in the National Assembly the President has answered the question just a while ago that 15 000 jobs have been saved by that scheme. I am not sure where those 15 000 jobs are. So far the report I have got shows 2 399 jobs, but perhaps we are a bit short on some of the reporting and perhaps closer to 5 000. But I really think we need a different look at it; I am not sure.
I think there is a wrong perception on how to actually apply for it, because I do believe that we need to use this opportunity to reskill and to use our skills development process to make a difference there. But, Minister, I think we seriously need to actually have a look at that system; there are some shortfalls there. We should have seen a much better use of that opportunity and we just have not seen it.
I also want to talk about the programme that we ran over the past nine to ten months. That programme is called Work and Skills for 100 000. We have put up a challenge to businesses and said that we are prepared to partner with them. We put R1 000 a month per learner for a 12-month period with a service level agreement, SLA, to say we want to have a skills development programme for people who have shown commitment to pass matric but cannot find jobs.
That is the biggest component of the unemployed out there, people who have actually got a school qualification - not a tertiary qualification - but because they don't have work experience they can't get a job. We are partners with industry. Sometimes industries have come up to R10 000 a month per student. We have an unbelievable success rate with it.
We have had students coming out through partnership with convention centres, with Koperatieve Wijnbouwers Vereniging, and with the hospitality industry. We have shown huge success in it and we are going to be rolling it out again this year. That, perhaps, is something that we need to also look at, and see if we can learn from each other in that respect.
I want to talk a little bit about the industrial development zone, and I want to thank the Minister because DTI has actually partnered with it in the Western Cape to continue with the study into the IDZ in Saldanha Bay. I know that there is a study on IDZ that is going on at the moment.
Minister, perhaps this is another area that we can have a look at. Perhaps we can tweak and maybe change some ANC policies that are fairly stringent around labour laws, etc in the IDZ. Let us use it as a test case and if it fails then we will face the political music but if it succeeds it could be a success for the whole country.
Minister, I would also like to talk about the oil and gas industry. I think that is one area where we, specifically in the Western Cape, are failing. I think as a country we are failing.
Early in this democracy, our President, Nelson Mandela, led two delegations into Africa; at that stage, Africa contributed 7% of the world's oil. Since then we have had a lot of talks and I must say the province as well has had a lot to talk about. Now we are contributing 12% of the world's oil and we are still not in any space.
We should logistically and financially be the oil capital of Africa; it is still owned by the Americans and other nations but not in Africa. I think we need to play a far more prominent role there. I actually look forward to the national Minister perhaps partnering with us in the Western Cape regarding that.
If I had time, I would move onto the private sector, but I must just say a few things about tourism during the 2010 World Cup. From the Western Cape side, we are ready and I think this is a massive opportunity for us. I must mention one thing and that is around the BBC basing themselves in Cape Town.
Perhaps I should ask not the Minister but other members of the ANC in this House to speak to their colleagues in the Western Cape. We rented out the top of Somerset Hospital for R57 000, for the period of the World Cup. They are saying that the R57 000 is ridiculous; we should have charged them much more.
All I can say to you is that they are building a glass box on top of the hospital and there will be four views in BBC presentation for 32 days. It will even include the mountains of Cape Town, the waterfront, the stadium - and the city's skyline. You cannot buy that kind of marketing and exposure for South Africa as far as tourism is concerned.
Let us not get into some petty political fight over R57 000 for the rental. They are going to leave all of that behind as a legacy for the film industry. Perhaps we need to slow down a bit on that fight.
I must also talk about what we are busy doing. The Minister spoke about the national policy and the roll-out, at national level, on tourism. It is also something that we really need to look at. When you go into any international marketing platform and you see South Africa the way we are, specifically our municipalities being involved in trying to market our provinces, we don't show one committed and united face as South Africans.
I think we need to make a big difference and change because, quite frankly, even in this House, if I were to say to any member of this House, "Would you like to go to Matzikama Local Municipality on holiday?" How many actually know where Matzikama Local Municipality is? [Interjections.] You know it, I am glad. But, I promise you, when you go to South Africa they do know, and when you go to the international market they don't know at all. At the moment we are confusing the market out there. It is the biggest opportunity for job creation to come out of tourism. Minister, we'll support you if you could get all of that into one space. Thank you. [Applause.]
Chairperson, hon Ministers, MECs, hon Members of Parliament, distinguished guests, ladies and gentlemen, allow me to open my debate by quoting the late President of Mozambique, Samora Machel:
In reality, a country that does not ensure the involvement of all its population at all levels of economic activity is certainly going to perform well below its actual potential.
Minister and Deputy Minister, we were fortunate to start this term of the fourth democratic Parliament by visiting your office and all public entities that are part of the Department of Trade and Industry, DTI. The visit and the interaction was a real eye-opener to the committee and the challenges ahead of us. It was during that visit that the aim of their department was clarified.
Chairperson, allow me to quote the Minister in his strategic plan and what was said on that day:
The aim of the Department of Trade and Industry is to lead and facilitate access to sustainable economic activity and employment of all South Africans through its understanding of the economy; its knowledge of economic opportunities and potential; and its anticipation of the future. The department also aims to catalyse economic transformation and development. In this way, the department will contribute to achieving government's vision of an adaptive and restructured economy characterised by accelerated economic growth, employment creation and greater equity by 2014.
The analysis makes an overview that locates the trade and industry sector in the realm of ANC resolutions and policy statements.
As part of the politically negotiated settlement, the ANC in the 1990s began developing an economic policy perspective for a future democratic state to transform the South African colonial economy and society into an economy based on greater equity, nonracialism and a higher standard of living. This process is testimony to the mission of the national democratic revolution which seeks to ensure that every South African, especially the poor, experiences an improving quality of life. The national democratic revolution, NDR, strives to build a developmental state shaped by the socioeconomic dynamics of South African society. The ANC-led government began to lead to implement programmes that began to address economic challenges of the 1990s.
This represented a paradigm shift from exploitative and racially entrenched economic disparities of the past to a pathway that sought to widen the available resources for use by all citizens of the country. The government commenced the task of embarking on the implementation of the industrial policy which ensures more investment in such critical areas as infrastructure; the manufacturing of electronic, transport, telecommunication, textile and other goods; efficient commercial agricultural production; ecotourism; and housing construction.
During the first decade of freedom, the government succeeded to a moderately significant degree in putting in place measures that promoted the implementation of policies of industrial development, enterprise promotion and broad-based black economic empowerment. Though the government programmes qualitatively assisted the poor, its redistributive capacity failed to integrate the poor into the mainstream economy, except for a smaller section of the black population. The National Council of Provinces' interaction with the Greater Tubatse Municipality bears testimony to that.
With an economy mainly driven by growth in the financial and services sectors, and the shedding of jobs mainly in the manufacturing and mining sectors, it is imperative that, in the light of those challenges and the speech by the Minister today, the DTI's strategic plan indeed addresses the ANC's goals of decent work, economic growth, infrastructure development and balanced global trade as levers of fundamentally transforming the South African economy. Linked to these, it is imperative to gauge the effectiveness of the instruments that the DTI has utilised to advance in support of a developmental state.
These instruments include the use of developmental finance institutions' incentives for industrial and trade promotion; regulatory bodies to eliminate antimonopoly behaviour; enterprise development through broad- based black economic empowerment; and reaffirmation of support for the co- operative movement. The challenges need to take into account the developmental role of provinces and their ability to provide social services, as outlined in the 2010 division of revenue.
With regard to the DTI's strategic plan, the critical issues are, to mention a few, empowerment; enterprise development and development finance; support for Small, Medium Micro Economies, SMMEs; broad-based black economic empowerment; and competitiveness of the local and provincial economies.
Minister and Deputy Minister, the department needs to be applauded for its role in assisting the enforcement of legislation as that has dealt with a huge impediment, especially in liquor regulation and unfair business practices. However, we are mindful of the challenges ahead.
The resolution on accelerated shared growth advocates for measures to be taken in addressing monopoly pricing and other forms of rent seeking and anticompetitive behaviour. We are definitely looking forward to the Consumer Protection Act which will come into force this year to protect consumers and build their confidence in markets.
In conclusion, Minister and Deputy Minister, indeed, very significantly, the performance agreement you signed with the President on Friday 30 April also requires you to work with other Ministers in the cluster to produce a clear, detailed, costed and multipronged strategy to reduce youth unemployment. This is a very important priority focus which we, as members, are to take and devote particular attention to as we move forward. The ANC supports this Budget Vote. I thank you. [Applause.]
UMntwana M M M ZULU: Sihlalo weNdlu, abahlonishwa oNgqongqoshe bobabili namaPhini abo, izinhloko zeMinyango ezikhona namalungu ahloniphekile akule Ndlu, mhlonishwa Ngqongqoshe Wezokuvakasha waleli lizwe, ezokuvakasha yinto esigxile kuyo ngenxa ka-2010 kuleli lizwe. Ngiyazi ukuthi kulo nyaka uMnyango wakho uthole uxhaso lwemali olwengeziwe kuhulumeni wethu ukuze ukwazi ukusizakala futhi uhlangabezane nezimfuno zokusiza abantu bakuleli lizwe.
UMnyango wakho kufanele ubhekisise ukuthi yonke imikhakha kahulumeni imelelekile ukuze abantu basizakale. Abantu bakithi abahlezi eSoweto kuphela, abahlezi eMlazi kuphela, abantu bakithi bahlezi kwaNongoma, eNkandla, KwaMhlabuyalingana, yilapho kuhlezi khona abantu bakithi. Ngifuna ukubona lo-2010 ukuthi uzokwazi yini ukulinganisa abantu bakithi bazuze bonke kulolu hlelo olukhona.
Ngiyazi ukuthi kuyona yomibili le Minyango lukhona uhlelo olukhona lokuxosha indlala noma ukususa ikati eziko. Nalento yokwakha amathuba omsebenzi, bahlonishwa kufane siyibheke ukuthi ihamba kanjani, iyakwazi yini ukusiza abantu bakithi ngoba kukhona umthethomgomo okuthiwa i- Industrial Policy Action Plan - angazi noma kwenziwa umqondo wami omfushane noma kwenziwa ukuthi ngimfushane angikwazi ukubona ngale, angiboni ukuthi izokwazi ukuthatha abantu bakithi ibabeke lapho sifisa babe khona.
Ngaleyo ndlela mhlonishwa ngiyazi ukuthi le Minyango yenu uma ihlangene kungaba khona ukusizakala kwabantu bakithi ezingeni lempilo, kusukela kuhulumeni wasekhaya, uhulumeni wezifundazwe, kanye nohulumeni kazwelonke, bayosizakala abantu bakithi uma lezi zinto zingenzeka.
Siyi-IFP, asinakho nokuncane ukungabaza ukweseka lesi sabelomali ngoba sizosiza bona abantu bakithi abakade bekhala, behlupheka bengenakho ukudla, njengamanje kukhona abalale bangadlanga, ukusizakala kwalaba bantu kuzokwenza izinto zenzeke. Niphinde nibheke mhlonishwa indaba yalawa mabhange angafuni ukunikeza abantu bakithi imalimboleko ukuze basizakale, ngoba awukho umsebenzi engingawenza ngingenayo indawo lapho kufanele ngisizakale khona. Kuyisicelo sami njengomuntu waseNingizimu ne-Afrika ukuba nikwazi ukusiza kuyo yonke leyo mikhakha. Ngiyabonga. (Translation of isiZulu speech follows.)
[Prince M M M ZULU: Hon House Chairperson, two Ministers and their Deputies, heads of departments who are present here and the hon members of this House. Hon Minister of Tourism, we are focusing on tourism because of the 2010 soccer event that will take place in this country. I know that your department has received an increased budget allocation from our government so that it can meet the needs of the people of this country.
Your department should see to it that all the spheres of government are represented so that the people will be able to get service delivery. Our people are not found in Soweto or Umlazi only, but they are also found in KwaNongoma, Nkandla, and KwaMhlabuyalingana - that is where our people are living. I want to see if this 2010 event can provide all our people with equal benefits from its present programmes.
I know that both these departments have programmes aimed at alleviating hunger. We must look at how the creation of job opportunities is driven, hon Ministers; we must see if it is able to provide for our people as there is a policy that is known as the Industrial Policy Action Plan. I am not sure whether it is because I am ignorant or short-sighted, but I cannot foresee it putting our people where we want them to be. Therefore, hon Minister, I know that if your two departments work together, our people can be catered for as far as their lives are concerned - from local, provincial and national government. Our people will be able to receive assistance if these things can happen.
As the IFP we do not have the slightest doubt that this budget allocation will be able to provide for our people who have been complaining and struggling without food. And as we speak, there are others who went to bed on empty stomachs, but if these people are provided for, better things will happen. Therefore, we support this Budget Vote. Ministers, you need to review the issue of these banks that do not want to give loans to our people so that they will be able to find assistance because one cannot do anything without a place to perform any kind of job. It is my plea as a South African that you assist in all those areas. Thank you.]
Chairperson and Ministers, it is clear that, as South Africans, we need to do something drastic to create economic growth and get South Africa out of the downturn of the economic cycle. Figures show that, whilst our exports grew to R448 billion in 2008, they are back to the 2007 level of R350 billion.
The export market is becoming very complicated because of the profound alteration and shifts. Therefore, to premise our economic growth on the basis of substantially increasing our manufactured exports - a conventional approach to industrial policy in South Africa - may boomerang on South Africa.
Greece, in particular, and other European countries are experiencing serious economic problems. The notion of a virtually limitless overseas market, especially in the prosperous north and west, needs to be shaken off. If plan A, which is your Industrial Policy Action Plan, Ipap2, does not live up to expectations, does the department have a plan B or C?
Related to that is the issue of the strong rand and the impact that it has on exports at the moment.
The third issue regarding the Department of Trade and Industry's, DTI, input, is that car manufacturing is in trouble all over the world. Given the fact that the DTI is investing a lot of money into supporting the car manufacturers, it's necessary that we ask if it would not be better to have a niche market, specifically regarding the proposed electric car that is being marketed as a South African product.
It is a bit unfortunate that one only has four minutes to speak on these issues, but I just want to make three remarks with regard to tourism. The first is that I'm very happy that a director-general, DG, has been appointed. I think it is step in the right direction. Unfortunately, however, once again the appointment proved that the ANC sticks with the redeployment policy and the same officials are kept in circulation.
The second issue concerns the 2010 Fifa World Cup and the remarks that the hon Minister made. I think we can agree that the 2010 Fifa World Cup is indeed a window of opportunity, and that South Africa will host a very good, productive and safe Fifa World Cup. However, for a province like the Northern Cape, the benefits of the 2010 Soccer World Cup are few and far between, and it's necessary that we now go to the next level in terms of the capital infrastructure development of our country and specifically the development of our rural provinces with the same impetus that was created with the 2010 Fifa World Cup.
The last issue regarding tourism is the changing mind-set of South Africa and continuously increasing investment in the rural areas. In this regard we know that the majority of South Africans travel extensively, not necessarily to go to tourist sites, but to visit their families. I think the good thing about the Minister's legacy is the Sho't Left campaign. Cope, I think, wants to suggest that those initiatives be taken further and also that more should be invested in rural tourism development. We have a lot of opportunities in that area, but unfortunately they don't always materialise.
I want to conclude by saying that I hope that this is not the last time that we see the Minister of Tourism, and I hope that he won't be redeployed to a different position in the world economy. Thank you. [Applause.]
Chairperson of the NCOP, Minister Rob Davies, Minister Van Schalkwyk, hon MECs, hon Members of the NCOP, ladies and gentlemen, it is 36 days and about 7 hours to the showpiece 2010 World Cup. For those who have tickets to the opening game, life seems to be an endless wait. This could be likened to how our communities feel - waiting for a better life. People want to feel the presence of the Department of Trade and Industry on the ground.
As a believer, it is my conviction that the development of our people, no matter how daunting the task may be, can be realized. I believe that our country has the potential we need to eradicate poverty. All we need is a leadership that is ready, capable and equal to the task of responding to the aspirations of our people. We can create a world-class economy, working together with everyone willing to do this. This is our country, and other people see the potential ...
... eMzansi. Thina simile eJordani, abanye bayawela - iculo lelo. [... in South Africa. We are standing at the River Jordan; others are crossing over - that is a hymn.] Last year, I reported a process initiated by my office to meet all the provincial MECs of Economic Development in order to co-ordinate our work better. This, I am pleased to report, has been done. I wish to thank all the MECs for the extremely warm manner in which these meetings took place. While the nine provinces differ in many areas, there were common points raised across the board. Here are some comments related to these visits.
The main issue raised was the lack of a cohesive and efficient communication system amongst the three spheres of government, resulting in national government not always knowing what the provinces are doing and vice versa.
Through great effort by the Empowerment and Enterprise Development Division, EEDD, and the various provincial heads of departments, a forum has been established to map the way forward. This forum had its meeting, and from the side of the Department of Trade and Industry, we have assigned a provincial champion to spearhead projects in each province. The list is available. We also have our call centre, which you all know.
We are particularly, but not exclusively, focusing on projects that will revive industries in the former homeland areas. Together with our provincial counterparts, we have identified a number of buildings that belong to the former development agencies that have fallen into disuse to use as incubators, supply the necessary tools that can be used by the entrepreneurs and provide assistance and so on.
On co-operatives, for this year, we are speeding up our efforts to initiate the formation of an advisory body for co-operatives. I must be honest and mention that this has not been an easy task because not everyone shared a common perspective on the way forward. We will convene an inclusive meeting to continue with our efforts and harness the collective wisdom of all parties to see this body to fruition. I know I have the absolute support of my Minister, Minister Rob Davies, for this effort.
Experience and research have shown that the biggest challenge confronting co-operatives is in the area of education and training. In this regard, government, through its strategy and legislation, intends to establish a national co-operatives academy dedicated to providing education and training to co-operatives and small, medium and micro enterprises, SMMEs. The aim of the Department of Trade and Industry is to lead and facilitate access to sustainable economic activities and employment of South Africans through its understanding, knowledge and economic opportunities. Let us do our work differently. It must not be work as usual.
We are also working together with provinces to facilitate access to international and local markets for co-operatives by utilising and accessing the Export Marketing and Investment Assistance scheme, Emia, support for co-operatives. Last year, we sent 11 co-operatives to the Milan exhibition; 8 arts and craft co-operatives to the handicraft exhibition in Portugal; and 4 co-operatives to the Decorex exhibition that took place in Johannesburg. We intend to double these figures in this financial year. We also need to give not only more people this opportunity, but also different people.
On the funding aspect, we are working closely with provinces to increase access to finance for co-operatives. The establishment of the National Co- operative Development Agency, NCDA, will play a major role in this regard. Last year, we managed to disburse R35 million supporting 180 co-operatives projects: 44 projects in KZN; 48 in the Eastern Cape; 29 in Gauteng; 16 in Limpopo; 15 in the Western Cape; and another 15 in the Northern Cape. We would like to reach out to the remaining provinces as well.
We have also signed a memorandum of understanding with Proudly South African in order to facilitate market access to co-operatives by extending them the Proudly South African procurement facility.
Asithenge ekhaya bakithi. [Let us buy from our local markets.]
Let's ask government departments to support SMMEs and co-operatives. Give us just 30% of their procurement.
Ake bathenge kithi. [Let them buy from us.] As a popular song goes, we must "make the circle bigger". We have to broaden economic participation. We have a generation of young people out of work. We have numbers of women in informal business who, if not provided with opportunities, will never enter the economic mainstream. Let us invest in our people, black and white. Let's come out of our cosy offices and go to the people down there.
I am inviting young people and women to come to the fore. I am also appealing to hon members to direct us to communities where we can offer support for economic activities. Yesterday, I mentioned visiting a bakery run in a container in KwaZulu-Natal. I want to see more of those bakeries in all provinces. We are working on that. Each province might get approximately four to five, depending on the availability of resources. I know you have the potential. The Sakhakulunge Co-op Bakery is a real success in Kokstad. Viva Kokstad! We also want to do away with the bureaucracy - big volumes of application forms; intimidating tender documents; long waits for funding; board meeting after board meeting; etc. We want to do away with that.
If we are honest, we have not been a spectacular success in this area of enterprise development amongst rural and peri-urban communities. This year, we want to escalate our work rate. We are continuing the programme started by previous Deputy Ministers of taking the Department of Trade and Industry to the people. We aim to do it in a slightly different manner as per a Cabinet directive that we move away from the mass meeting type of event to a more focused approach. This is South Africa, our land. We are here to stay. Let's make South Africa a better place.
The Small Enterprise Development Agency, Seda, will be key in this programme, and we encourage the efforts by Seda to have a presence in each district municipality of our country. It should be more visible. In the Western Cape, we have the Red Door; in Gauteng, we have the Gauteng Propeller. Please, be visible on the ground; I'm begging you.
With regards to our programmes for women enterprise, I have met with the provincial chairpersons of the SA Women Entrepreneurs, Network, Sawen, as well as the Sawen board to find a way to make our work have a greater impact. We reconstructed the board into an interim advisory board with full provincial representation. It is now going to be a bottom-up structure and not a top-down structure representing women on the ground.
The Techno-Girl programme run by the gender unit will continue and take place in the Northern Cape in August this year. This is part of our contribution to the five priorities of government, where girl learners in matric from rural and semi-urban areas are taken on an entrepreneurship and life skills camp. We have just signed a memorandum of understanding with Microsoft for innovation skills technology transfer. I'm saying, let's work together. I am also pleased to announce that we are continuing with the Technology for Women in Business Programme, Twib, including the annual awards for women who are applying technology in their businesses. This year, we will upscale this programme to make it accessible to more women in the rural areas, as well as to link this with the overall plan of the Ministry. In our pursuit not only to meet but also to exceed the expectations of the five priorities of government, our department is looking at methods that, together with the provincial colleagues, we can initiate during this financial year. I have also had discussions with various people from academic institutions with the private sector who are willing to offer some assistance to meet our development goals. You are also invited, hon members.
On technical training, management skills and co-operative compliance training, we need a co-operative academy. We will ask the assistance of Minister Blade Nzimande in utilising the sector education and training authorities, Setas, in this regard. We have a challenge to review and amend the Co-operatives Act 14 of 2005.
I wish to thank Minister Rob Davies for the industrious manner in which he is leading the Ministry. Thank you to the Deputy Minister Tobias-Pokolo - and we wish her a speedy recovery in hospital - for her support as well. My gratitude goes to hon members of the committee who are keeping us on our toes. Thanks to Director-General Tshediso Matona, Acting Deputy Director- General Mr Sipho Zikode, and all the other officials who make my job a little easier.
To the young people of South Africa, I want to give a few words of wisdom: Plan while others are playing; study while others are sleeping; decide while others are delaying; prepare while others are daydreaming; begin while others are procrastinating; work while others are wishing; save while others are waiting; listen while others are talking; smile while others are frowning; comment while others are criticising; and persist while others are quitting. Don't quit. You cannot quit before you start.
Sengigcina-ke Sihlalo ... [Chairperson, in closing ...]
... I want to say to us, let me end by inviting all business bodies: National African Federated Chamber of Commerce, Nafcoc; National African Farmers Union of South Africa, National African Farmers Union of South Africa, Nafu; Metrology Instrumentation Group, Mig ...
Wat is daai ander een nou? Die Handelsinstituut. [What's the name again? The Afrikaanse Handelsinstituut.]
... and others to come to the fore. Let's talk and see how we can build this beautiful South Africa of ours. Let's also go out there and support Bafana Bafana, hon members. You are all invited to contribute to this fight against poverty. No idea is stupid, no matter how small it is. Let's work while others are sleeping; plan while others are procrastinating; listen while others are complaining; and persist while others are quitting. Together, we can do more.
Asisebenzisane-ke maqabane, asisebenzisane-ke bahlobo bami, malungu ahloniphekile akuleNdlu-ngiyabona senginesikhashana esincane lapha, ngithanda ukuthi asingabe sisazenza izinto ngendlela ebesijwayele ukuzenza ngayo.
Kunendatshana engiyifunde kwenye incwadi ethi: Kwakukhona umama owayejabulela usuku lwakhe lokuzalwa wathuma indoda yakhe wathi kuyo: "Hamba uyongithengela umlenze wemvu", wayejwayele-ke ukuthi uma efika laphaya afike akusike lokhu okusekugcineni, kodwa indoda yabuya nakho ingakusikanga, wase ebuza umntwana wathi kungani ungayisikanga le nyama? Yaphendula indoda yathi:"Angazi ngikhohliwe ukuyisika, yase ibuza ukuthi kambe yini kufanele isikwe?".Waphendula ngokuthi, asibuze umama ngoba senzela yena. Mama, kungani siyisika le nyama esekugcineni? Waphendula umama wathi: "Bengibona umama wami eyisika". Ubaba wathi asishayele ucingo ugogo, ngempela bamshayele ucingo ugogo, "gogo kungani wawuyisika le nyama esekugcineni? Waphendula ugogo wathi: "Bengiyisika ngoba ibhodwe lami lalilincane. [Uhleko.]
Ngicela senze izinto ngendlela ehlukile, singenzi izinto ebezenziwa uma singazi ukuthi abanye babezenzelani, kodwa senze izinto ezizosiphumelelisa. Ngiyabonga Sihlalo ngethuba onginikeze lona. (Translation of isiZulu paragraphs follows.)
[Let us work together, comrades and colleagues. Hon members of this House, I am aware that I'm left with little time. I would like to say that we should stop doing things the way we used to. There is a short story that I read in a certain book which read thus:
There was a mother who was celebrating her birthday who said to her husband: "Go and buy me a leg of a lamb". She used to cut the piece of meat at the end of the leg of lamb, but the husband returned without cutting it, then the child asked ,"Why didn't you cut the piece of meat at the end?" The husband answered and said:" I don't know; I forgot to cut it." Then he asked, "By the way, why does it have to be cut?" He answered by saying, "Let us ask mother because we are doing it for her". Mother, why do we cut this meat at the end? The mother answered and said: "I used to see my mother cutting it." The father said, "Let us phone grandmother". Well indeed they phoned the grandmother, and asked, "Grandmother, why did you cut the piece of meat at the end?" The grandmother answered and said:" I used to cut it because my pot was small". [Laughter.]
I request that we do things in a different way; let us not do things in a certain way if we do not know why the others were doing them in that way, but let us do things so that we can prosper. Chairperson, thank you for the opportunity you gave me.]
Thank you very much. [Applause.]
Chairperson, Ministers, departmental staff, Deputy Ministers, hon members, you know, Deputy Minister, that we are so good. I hope that the DA and Cope - and I see the member of Cope has gone to report to I don't know which leader, Shilowa or Lekota. So, it is a pity.
Chairperson, tourism is one of the world's major industries, if not the largest. In South Africa, we are still growing our industry to reach its full potential in order to tap into this money spinner, swell local opportunities and create jobs to fight poverty and to showcase our land and the splendour and diversity of our region. In order to have the edge in our industry, we have to think afresh about what we do and do it better. In this regard, we welcome the Minister's initiative to develop new products and to grow the industry.
Ons kan baie leer by ander lande, maar ons het soveel eiesoortighede wat ons kan bemark om Suid-Afrika 'n voorkeurbestemming te maak. Daarom moet ons eers ons eie sterkpunte uitbou en bemarkbaar verpak sodat ons land vir talle reisigers meer aantreklik gemaak kan word. So word ons 'n leier in die bedryf en 'n trekpleister. Ons het in die afgelope jare gesien dat geleentheidstoerisme toeneem. Ons het van ekotoerisme gehoor en ook kultuurbelewenisse. Toe het Suid-Afrika avontuurlustiges begin trek. Daarmee saam het mediese toeriste toegeneem, mense wie vir vakansies en operasies hierheen kom. Ons het al ons deel van konferensietoerisme gekry en gaan binnekort weer die krag van sporttoerisme sien wanneer die spanne, personeel en ondersteuners van die beste sokkerspanne op aarde hierheen kom om mee te ding in die wreld se grootste skouspel, die Fifa Sokkerwreldbekertoernooi. (Translation of Afrikaans paragraphs follows.)
[We can learn a lot from other countries, but we have our own distinctive character which could be marketed to make South Africa a preferred destination. For this reason we should, firstly, consolidate our strengths and package it in a way that is marketable so that our country would be more attractive to a greater number of travellers. In this way we will become a leader in the industry and a draw-card.
Over the past few years we have seen that event tourism has increased. We have heard of ecotourism and also cultural experiences. This was when South Africa started attracting adventure seekers. At the same time, medical tourism has also increased, people who come here for holidays and medical procedures. We have already acquired our section of conference tourism and will shortly experience the power of sports tourism when the teams, staff and supporters of the best soccer teams in the world come here to compete in the world's most spectacular event, the Fifa Soccer World Cup Tournament.]
We are proud and agree that it is our time. It is a great chance to occupy, for a whole month, prime television space and have the attention of billions of people across the globe. They will feed on soccer, but they will also take note that this pageant takes place in our wonderful country. I thank the Minister, his deputy, the department, our tourism agency South African Tourism, and all other role-players for their hard work to market South Africa at the highest level and, especially, for focusing beyond the soccer spectacle and look towards the future of South African tourism as a whole.
In this regard, we are looking forward to receiving your proposals to review the existing legal framework for tourism, Minister. We also welcome on board the new Director-General, Mr Kingsley Makhubela. I would also like to congratulate our team, led by Minister Van Schalkwyk, for outperforming most international markets in 2009. I hope the hon Winde listens to this, Chair. Together with the increase in the number of arrivals and growth in income, they have achieved this, even in difficult economic times. This fact, together with the 2010 Fifa Soccer World Cup boost, is a firm base from which to grow our industry.
We know how vulnerable tourism is to negative perceptions. That is out of our control, specifically the DA's perceptions. In light of this, we wish to ask our Minister to also engage his Cabinet colleagues to formulate a strategy to deal with the World Health Organisation's precautionary advice to tourists, including soccer players and fans, to avoid mosquito bites and contact with raw meat, in order to avoid infection by Rift Valley Fever germs. Please deal with this swiftly. Hopefully, we will have a cold spell soon to kill the carrier of this disease before the bulk of the soccer crowds arrive.
Voorsitter, ek het nog 'n paar gedagtes oor die bevordering en uitbou van ons bedryf hier in Suid-Afrika. Die Minister en sy span is deeglik bewus daarvan dat streekstoerisme 'n al hoe belangriker faktor geword het vir ons bedryf. Ons sal graag wil sien hoe bure en ander besoekers van ons vasteland ons meer besoek. Ons sal egter ook opnuut moet kyk na ons binnelandse toerisme. Al is dit net vir vakansies, is dit 'n uiters belangrike onderdeel van ons toerisme-landskap en behoort ons ook te gaan kyk na hoe kleiner dorpies en afgele streke meer baat kan vind. Ons het juwele op die platteland, in al ons provinsies, wat wag om besoek te word.
Ek weet die Minister en sy span werk gereeld en goed saam met die provinsies, asook munisipale toerisme-instellings. Van my kant, in die Nasionale Raad van Provinsies, sal ek wil sien dat hierdie samewerking uitgebou word, moontlik in die wetsontwerp geformaliseer sal word, groter kordinering sal bring, en dat dit 'n kragtige instrument sal word om toerisme op 'n nuwe pad te plaas. Ons is ook bekommerd oor toutrekkery of tydrowende verwarring tussen sodanige entiteite, soos op die "Eiland" Wes- Kaap, waar eers die Stad Kaapstad en toe die Wes-Kaapse regering 'n aktiewe rol begin speel het wat voorkom of dit verlamming in die hand kan werk.
Daar kan nie gapings in ons bemarkingsnet ontstaan of onnodige oorvleueling geduld word nie. Ons glo die Minister gee leiding en sal ons mettertyd inlig oor watter uitweg gevolg sal word. Die Minister en sy span verstaan dat ons in hierdie Raad 'n besondere plaaslike en provinsiale belangstelling het. Ons kan dalk kyk na 'n toerisme-skou wat om die beurt, of op 'n aflos-grondslag, by provinsies sal aandoen. Die Indaba-skou in Durban is 'n instelling wat internasionaal bekend is, maar dit kan aangevul word met meer streekspesifieke produkte om kleiner ondernemers ook 'n uitstalvenster te bied. (Translation of Afrikaans paragraphs follows.)
[Chairperson, I have a few more ideas with regard to promoting and expanding our industry here in South Africa. The Minister and his team are very much aware that regional tourism is increasingly becoming a very important factor in our industry. We would like to see that our neighbours, and other visitors from our continent, visit us more often. However, we will once again have to look at domestic tourism. Even if it is just for holidays, it is an extremely important component of our tourism landscape and we should also explore how smaller towns and remote areas can benefit more. We have gems in the rural areas in all our provinces, which are waiting to be explored.
I know the Minister and his team are working regularly and effectively with the provinces, as well as municipal institutions. From my side, in the National Council of Provinces, I would like to see that this co-operation is extended, possibly formulated into the Bill, resulting in better co- ordination, and that this will become a powerful tool, which will propel tourism in a new direction. We are also concerned about the squabbling or time-consuming confusion among such entities, like on the "Island" Western Cape where, first, the City of Cape Town and then the Western Cape government started playing a more active role, which appears to have promoted paralysis.
The development of gaps in our marketing system or unnecessary overlapping shouldn't be tolerated. We believe that the Minister is providing guidance and will in time inform us as to what option will be followed. The Minister and his team understand that we, who are here in this Council, have a particular interest both locally and provincially. Maybe we can consider a tourism exhibition which could alternate between the provinces. The Indaba Expo in Durban is an initiative that has become known internationally, but this can be supplemented with more regionally specific products to showcase smaller entrepreneurs.
If I may, I would like to suggest a reality show, for both television and radio, where awareness amongst our young people will be created about service delivery in the industry. They may compete to prepare and plan products where they can cater, clean, and conduct programmes to treat visitors. This would also serve as an educational medium to raise the bar in South African tourism.
Secondly, I would like to see more young people without jobs being involved in the industry as volunteers. A kind of youth service could be devised where youngsters can work for a stipend to gain skills and experience or even to build up credits in different activities under mentors, something which may finally help them to either find employment or to encourage entrepreneurs to create new products.
Let us take hands and build our country and its economy through tourism. We support this Budget Vote and wish the Minister and his team, as well as Bafana Bafana Godspeed.
Chairperson, I want to conclude by saying that - the member from the Northern Cape has left - it is very easy to come here and say things about certain other things, but if my memory serves me, I recall that Treasury has just given R100 million to the Northern Cape, which is meant for upliftment. So, I don't know where the member gets his facts, but sometimes when you have difficulty in terms of leadership, and he is talking about cadre deployment, I think the cadre deployment starts in Cope. We don't know whether Shilowa wants to deploy Lekota or Lekota deploy Shilowa. We support this Budget Vote, and I thank you, Chair.
Chairperson, I want to thank hon members who contributed to this debate for their thoughtful contributions. I believe that most hon members have understood that we can't continue to oscillate around whatever the economic cycles deliver to us. For example, when we are in the midst of a bad cycle like we are at the moment, we have unemployment of 25,2%. But when we are at the height of a boom as we were before the recession in 2008, unemployment never got below 22,8%.
I also think that hon members have understood that what we need to do is to bring about structural changes in our economy. We need to place our economy on a structurally different growth path, one which can create much more decent work for our people. It is in that context that I think hon members have also understood what the Industrial Policy Action Plan 2, Ipap2, has been crafting.
Ipap 2 is essentially contributing to this quest through its focus on value added activities. As I said in my speech, it was one very important imbalance that we have. Our consumption sectors grew about twice as fast as our production sectors. This is an unsustainable situation that we can't tolerate any longer.
Hon Winde asked what would have happened to jobs if we hadn't had the World Cup and so on. I think that's precisely the point - the main driver of our economic development now is our infrastructure programme. That's the main driver which is also our main countercyclical response, not just the World Cup, but all the other projects of infrastructure development.
The point is, though, that we have been getting too little industrial development opportunity that flows from that. It is precisely for that reason that we have identified a major change in the procurement regime. Work is under way to try and identify this much more clearly and to come up with clear steps that can be implemented. That is exactly why we want to change the procurement regime. Even from today's debate I realise that there is now sufficient consensus that the Ipap2 represents a way forward for us.
The challenge now is to implement it. It is exactly that challenge that I think is important for parliamentary oversight committees and this House. We have got a number of things that we do in trying to achieve great implementation: internal monthly oversight meetings; reporting to the cluster; reporting to Cabinet every six months; and so on. We also contribute to the new monitoring and evaluation process in government as well. What a number of colleagues realised here is that co-ordination is quite critical. That's co-ordination between the different national departments and agencies that are responsible for parts of the programme, and also co- ordination across the spheres of government. I think this House could pay a lot of attention to that aspect. We will approach that with the spirit of co-operative governance. In that regard, we will work constructively with any province, including those that are under other parties. For example, I don't know what the issues around the oil and gas centre are, but this is a province-specific programme. However, if there are ways in which we can support that, I'm sure one will find that our department will be forthcoming.
Furthermore, we can engage further in the training lay-off programme which has been raised by MEC Winde. However, I don't want to engage in the statistics debate around the training lay-off programme because I don't know all the facts involved. Let me just say that one of the most successful users of that programme was BMW South Africa, which became the first firm to invest again after the recession passed. The training lay-off was a way in which it skilled up its workers for the new investments.
We want to co-operate on the case of Mr Khuzwayo that was mentioned by hon Gamede. How can somebody walk into one small business agency and be told to go to another one or to go and attend another meeting somewhere else. That's where the collocation, the shared services, and all that, between the different agencies operating in the different spheres of government must take place. We must address that one.
We can work together on the issue of trade and trade promotion, just to give MEC Winde some comfort. Between 2000 and 2008 our trade with United Kingdom, UK, actually doubled, and then it cut by 40% in 2009. So, doubling it is not such a huge target; but it does require efforts on our part. More importantly, we want to change the structure of that trade. Too much of it is probably products and raw materials. We need to increase the value-added products there. Let's work together on that.
But, for goodness' sake, let us not think that the UK and the traditional markets of the North are the only places where we need to get involved. There are plenty of other places like, for example, Africa and our South- South trade. Let's get actively involved in all that. We'll work together with you.
We are prepared to work - as you have already indicated - on industrial development zones, IDZs. But let's understand what the department understands about IDZs. Industrial development zones in our law are areas where you get duty-free entry of components which you use for export of goods; you get the advantages of the concentrated infrastructure; and some other incentives. That's what an IDZ is. There are a whole lot of other issues like, for example, the governance of IDZs within provinces, municipalities and national government that we need to address, and plenty of other issues around the financing of IDZs. We can work on those; we can work on our studies; and we can identify possibilities.
However be very honest with communities when you start talking about these things. If you mean IDZs, say IDZs. If you mean export processing zones - those are areas where what you typically do is to suspend the labour law. I was up in Saldanha - on May Day actually - and I didn't detect any appetite among the people at the rally. I have to see a suspension of the labour law. Let me just say that we also, more often than not, don't think that the success of the IDZs around the world has been shown to be a real factor. This race for the bottom on labour conditions is not something that South Africa can get involved in in a sustainable manner. That has been established for a very long time. So, I'm afraid you'll have to win a national election if you want to turn IDZs into Export Processing Zones, EPZs, because we won't co-operate on that one.
Let me answer just one more point on the auto industry as I've got a little bit of time. Yes, it's true that the components manufacturing industry is much more job intensive. Even the figures that I gave you double the figures. Just to repeat: Of the three investments this year, R9 billion of the investment will sustain 3 500 jobs, but R4 billion investments in components sustaining 20 000 jobs will come of that. Lower investment, more jobs in components! But the relationship between the two is a critical one. If you don't have an original equipment manufacturer, OEM, base, you might have a components industry; that's a reality in South Africa.
Indeed, through some of the work that we have done we are deepening the local content. In the last four investments, the percentage of local components is well over 50%. I think it's nearly 60%. This is because we have a 20% automotive investment scheme, AIS, and a 30% for those who are prepared to go a step further. If you want to qualify for the AIS, you have to create more jobs and buy more locally. That's exactly what we are trying to do. We are trying to use our tools to push the automotive manufacturers to acquire more components. Some of them are talking about coming together and acquiring a bigger base of common products. That is the sort of work we want to do.
Yes, we want to support the electric car and other green energy-intensive vehicles. Not just by one manufacturer, but by all of them. We want to position our motor industry so we are not producing the gas guzzlers of the world. However we are working with them on a number of projects. So these are the kinds of projects that we want to attract into South Africa. We are also moving in the direction of public transport vehicles. When we invest in public transport vehicles, we must make sure that those are actually manufactured in South Africa.
In conclusion, I think that the National Council of Provinces, NCOP, has got a very critical role to play. We will not be able to make the structural changes in our economy unless we achieve a higher level of co- ordination. That's for sure, that's for sure;
I keep telling everybody about what happened in the past. I'm not going to tell you the answer, but I'll pose the question: Which project was identified to be exactly the same work in Ipap 2 as in Ipap 1? There is one because some government department didn't do the work. We can't just do it like that. We have got to hold each other accountable. We are looking for a creative oversight that can follow our progress, identify areas where we are not achieving success, and then try to unblock those blockages. That's the work of oversight and that's what I want to encourage this House to do. Thank you very much. [Applause.]
Minister, just for your information, this morning we were rationalising the portfolios of the House Chairs. One of the portfolios we created just this morning is that of co-operative governance to co-ordinate that work and make sure that the work is done in a proper manner. We have all agreed as political parties here. Am I right, Tim? Tim, am I correct? [Laughter.]
Chairperson, I would like to respond to four issues. The first one is the issue of the new tourism legislation raised by the hon member Adams. We will table that in Parliament in the third quarter of this year, and then we, obviously, will engage the members of the select committee as well as the portfolio committee.
The second issue is the one raised by the chairperson of the select committee. It is the issue of our inbound markets, our source market for inbound tourism, and, yes, we have experienced good growth for some of the markets in the last year. We can look at some of the increases: from Asia, we had 3,7%; from the African air markets 3,3%, and from the African land markets 5,7%. However, from China and India, two very important future markets, we had a 12,4% increase from China. It's from a relatively low base, but it is impressive growth in any language. Then, from India, there was a 17,5% increase.
With regard to our traditional markets, I would like to echo the point that Minister Davies made with regard to the traditional markets in terms of trade. They continue to be important markets, but we must take note of the fact that growth from those markets is slowing down. We must refocus and reprioritise, look at new markets, as well, invest in those new markets, and develop those new markets.
Then, with regard to the issue of business tourism that the chairperson also raised, I announced yesterday in the National Assembly that we will start a National Convention Bureau under the auspices of South African Tourism. We will invest in that. Now, that unit, that bureau, will assist companies, provinces, and local municipalities who bid for international events to prepare those bids but also to co-ordinate, as a country, those bids. Very often, we undermine each other, and other countries walk away with those very important international events. That will definitely make our approach more professional in that regard.
I would also like to respond to the issue of redeployment raised by the hon member Sinclair. It was also raised yesterday in the National Assembly by the hon members from the DA. Normally, when this issue is raised, it is raised as either redeployment, and very often it is raised with a very subtle race dimension. Yesterday in the National Assembly, it was done, not so subtly, by the DA but actually in a very unfortunate, very distasteful way, with regard to another appointment that I made, a senior appointment in one of our public entities. We dealt with that issue there.
However, let me respond to this issue in a very straight forward manner. When we, as the ANC government, appoint people, and we appoint people with what the opposition thinks is, not enough experience, they ask how we can appoint people without experience. On the other hand, when you appoint people with experience, they say it is redeployment, and we are just shifting people around; we are shifting around the deck chairs. I think the opposition should really decide what they want. I think the hon member Adams dealt very effectively with this insistence from the DA on redeployment, this coming from a party that is on the verge of redeploying their president. [Interjections.] When, in the ANC government, we are looking at appointing people - when we appoint boards, obviously, we are looking at balances, but I've always understood that to be the policy of the DA, of Cope, of everybody - of course, you look at language, gender, and all those issues. So, I don't know why we are criticised on that issue. When we appoint people in executive positions, you always look at who the best man or woman for that position is. That is the only criterion. [Interjections.]
I've said yesterday that in my six years in Cabinet, I've not had one experience where the President or Cabinet asked a question and put pressure on any Minister to say that in a specific position he or she should appoint somebody who is African or white. This has never happened, not once. It is always on merit. [Interjections.] The DA is now interjecting. Let me respond to it in this way. When we have to appoint ambassadors, we look very carefully at who we have to appoint. When we were approaching government to appoint the hon former member Gibson, did we say that we didn't want to appoint this member, because he criticised us too much, very often in a way that went against our grain and our being; or did we say that, possibly, it is good for the country, and he may make a contribution? When we were approached to appoint, and lobby to appoint, Mr Leon, what did we say? We said: Let's be open about this and that maybe he can make a contribution.
And it did not stop there. We were approached to appoint Sheila Camerer, to appoint Sandra Botha, and not once did we raise this issue publicly and say that it is redeployment, that it is unfair. They are all from one background. Not once did this happen, so I honestly think that the opposition should also deal with this issue more fairly and not abuse this House and the National Assembly, attacking people and public servants when they cannot defend themselves. Thank you, Chairperson. [Applause.]