Hon Chairperson, Ministers, Deputy Ministers and hon members of the House, it is with great pleasure that I introduce the South African Post Office SOC Ltd Bill to the National Assembly today. We are also fortunate in that this Bill is among the first of the Bills that make it clear in their title that it is a state-owned company, in alignment with the requirements of the new Companies Act.
This Bill signifies the government's commitment to ensuring that state assets benefit all South Africans. The commitment will only be achieved when state-owned entities like the Post Office are well managed and directed, leading to the overall development and economic growth of our country and the provision of more efficient services, particularly postal services, to our people.
The Bill before you is aimed at providing a comprehensive legal framework, addressing the corporate governance of the South African Post Office. While the governing of the Post Office was previously distributed between the outdated Post Office Act of 1958, its articles of association of the company and certain related documents, all of these will now be contained in a single modern piece of legislation, developed by this House and other secondary governance instruments like the Memorandum of Incorporation of the new Companies Act. It further makes a clear separation between the role of government as the shareholder and that of the board that carries the fiduciary duties entrusted to it to manage the Post Office efficiently.
With this Bill, we seek to strengthen the Post Office to enable the fulfilment of government's objectives and ensure the further development and growth of the postal sector as a whole. It also paves the way for an extension of the mandate of the Post Office beyond just postal services and situates the institutional infrastructure of the organisation in the new context of information and communications technology without the Post Office compromising its core business.
It is important to take into account the fundamental obligation that government has to ensure the universal provision of postal services. In the development of a dedicated Bill for the Post Office, we have endeavoured to ensure a smooth transition by retaining what was good in the old Post Office Act but improving the shortcomings where necessary. In particular, the fiduciary duties of the members of the board, for example, are comparable with some of the highest standards that can be required of board members.
Board members must be free of conflicts in all respects. A member may not have a direct or indirect interest that conflicts with the business of the company. A member must make a full disclosure of his or her financial interests to the Minister. Furthermore, a member of the board and his or her family members may not sell any goods or services or do any business with the Post Office.
It would be required that existing board members currently serving the Post Office must disclose their financial interests and divest themselves of any direct or indirect interests that are in conflict with the business of the company within a period of six months after the Act commences. This requirement has been extended to require that the Post Office must develop comparable requirements of all staff members of the organisation.
It is through good corporate governance that a well-functioning board can in fact ensure corporate success. Corporate success in turn means better services to our people. Corporate success leads to job creation and will ensure that money from the fiscus can be directed to other deserving causes.
Through excellent parliamentary oversight, it has come to light that many subsidiaries of state-owned enterprises are not really accounting optimally. This has led to the introduction in this Bill of additional measures in respect of the establishment of subsidiaries of the Post Office. Subsidiaries have also been made subject to the same governance requirements that the Post Office must adhere to. A performance management system will be introduced for both the Post Office and its subsidiary companies.
The consideration of this Bill was a dynamic deliberation process that also ensured its alignment with the Companies Act of 2008, which commenced during the deliberations. We believe that this Bill sets a precedent for other state-owned enterprises and for the protocol on good corporate governance in the public sector.
In recent years we have realised that governments must have a mechanism to intervene when state-owned entities fail. As separate legal and juristic persons, this has proven difficult at times, negatively impacting on service delivery and on the fiscus. This Bill is now introducing a mechanism that will allow the Minister to intervene in such matters. For example, the Minister can direct the Post Office to take certain specified actions if it is in financial difficulties, mismanaged or failing to perform its functions effectively or efficiently.
In conclusion, the legislation provides an effective legal framework for the functioning of the SA Post Office, guaranteeing the appropriate conditions for good corporate governance in its management and positioning the institution in the new digital era that is coming. [Applause.]
Hon Chairperson, hon members, Ministers and Deputy Ministers present, the Director-General of the Department of Communications and her team, it is indeed a privilege to speak in support of the South African Post Office State-Owned Company Ltd Bill. Once passed, the Bill will give effect to the implementation of the 1998 White Paper on Postal Policy. The 1998 White Paper on Postal Policy was a thorough, well-thought- through policy document. While it has stood the test of time, its review is unavoidable.
Information and communication technologies, ICTs, and postal services enhance the efficiency of small, medium and micro enterprises, SMMEs, reduce costs and broaden market reach, both locally and globally. Since SMMEs play a major role in national economies, such benefits to them may collectively translate into positive results in the form of job creation, revenue generation and overall country competitiveness.
The South African Post Office SOC Ltd Bill will address the logistical challenges of our people living in underdeveloped areas, improve competitiveness and overcome the spatial patterns of apartheid. At the same time, it will lead to direct employment in construction operations, as a result of the need for tellers, maintenance and e-services. In this way the government will have addressed the social equity goals and ICT inequalities that exist in our society.
Access to basic postal services is the right of all South Africans. The South African Constitution demands that certain criteria influence the formation of service delivery to enhance basic human rights. Accordingly, a universal postal service suggests that all citizens, regardless of race or gender, shall have equal access to basic postal services. The universal service obligation, USO, is placed on the monopoly provider to ensure such access, as well as rebalancing the postal network for equity, improvement of scale, scope and quality of service, and the elimination of cost inefficiencies.
When presenting its strategic plan before the Portfolio Committee on Communications earlier this year, the Post Office raised a concern about the government subsidy, which comes to an end, and the implication this has for the ability of the Post Office to expand its infrastructure in general but particularly in rural areas. This is a matter that needs the attention of both the board and the Department of Communications.
Today, telecommunications and electronic communications provide easier and quicker means of keeping in touch. To a certain extent, such new technologies are serving as substitutes for postal communications and, in turn, diminish the importance of the social function of postal services. There is no doubt in my mind, as I stand here, that post offices throughout the world need to redefine their existence and undergo radical change or transformation. Oh my, I see the word "bandage" and I am wearing one too! The time for "bandage solutions" has gone and it is time for major surgery. I do not know what is wrong with "bandage" today. [Laughter.] Anyway, I will continue. [Interjections.]
For the Post Office to achieve the above, it needs to evolve in a way that assists in the economic development of the country. It is important that postal networks should link each and every citizen in the country to a service that they need or use. Like other communications infrastructure, postal networks will allow the flow of goods, services and payments between economic agents. An efficient postal network can therefore significantly reduce transaction costs across the economy, forge markets where they did not exist before and support knowledge transfer between agents that allow innovation and growth.
We are mindful that, as we debate this Bill, elsewhere in the world, particularly in the United States, the opposite is happening. They are rolling back post offices which they had rolled out to rural areas because of the argument that post offices do not make a profit. However, as a country, we are clear that here in South Africa that is not the way to go. We have to make sure that government intervenes in unprofitable post offices to ensure their continued existence, so that people in the rural areas can indeed benefit.
In May 2011, it was exactly 13 years since the White Paper on Postal Policy was adopted. Today, by passing this Bill, we will give effect to the third and last phase of the restructuring process within the Post Office. As they say, when one door closes, another one opens. Policy review will be required to put the Post Office in a better position to confront the ever- changing environment in the ICT sector.
I must take this opportunity to thank all the political parties in the portfolio committee, the Department of Communications, led by the director- general, and those officials who were dedicated to dealing with this Bill. I must also extend my appreciation to the state law advisers and the legal services of Parliament for the good work they have done.
I must further indicate that I appreciate the good co-operation which I received from the other political parties involved in the Bill and in the committee. I hope that such good work and co-operation will continue in other endeavours which the committee will be facing. Therefore, I commend the Bill to this House for adoption. [Applause.]
Chairperson, the SA Post Office has not enjoyed a very good reputation over the years. We were faced with untrained and unpleasant staff, broken equipment, staff that did not know how to use equipment in the branches, and high levels of theft of mail, both that coming into South Africa and that leaving South Africa. In fact, levels of service at the Post Office were so bad that South Africans nicknamed post delivered by the Post Office "snail mail".
What we recently saw, however, was somewhat of a 360 degree turnaround with regard to the Post Office. We witnessed an attempt to upgrade branches, train branch employees, restock branches, ensure that safety and security measures were improved to ensure a massive cut in postal theft, and we saw the Post Office operating at a profit. An effective and fully operational Post Office service is one of the most important factors in a successful and growing economy.
We live in a country where universal access to the Internet remains a dream for millions of our people. For most South Africans the Post Office remains the most basic way to communicate. The ultimate dream would be to have Internet stations for public use at all post offices, especially in the more rural areas, where Internet access is almost nil.
It is, of course, very disappointing when an organisation suffers as a result of strike action. Most recently, in the Kempton Park area in Gauteng a strike subjected millions of South Africans to not receiving post for a period of over two months. If the Post Office is not operational, it has the potential to bring smaller communities and their daily activities to a standstill.
You will recall that in my budget speech of this year I applauded the Post Office for an excellent performance, a virtual complete turnaround. The fact that they were operating at a more than acceptable profit was commended. They were a true success story and did the Department of Communications proud.
This Bill provides for, among others, governance of the Post Office to ensure the provision of universal, accessible, reliable and affordable postal service, as well as the provision of a wide range of postal services in the interests of growth and development within the Republic.
While all of what I have just listed is of the utmost importance, the problem - and I may add it's a huge problem - arises as soon as we start dealing with the financial aspects of the Bill. The original Bill that was brought before us for consideration made reference to the following clause: "Granted with the concurrence of the Minister of Finance". By way of example, the original Bill stated that the Memorandum of Incorporation of the Post Office must, inter alia, provide that the Post Office acts with the approval of the Minister, granted with the concurrence of the Minister of Finance, for example, in the merger of the Post Office with other companies, or the entering into of partnerships or joint ventures by the Post Office; the alienation of shares held by the Post Office in any subsidiary thereof so that the Post Office retains 50% or less of the voting shares; and that they shall not issue any shares except as approved by the Minister with the concurrence of the Minister of Finance.
Now, if you will, remove every single reference to the Minister of Finance, and that is what we are left with. All these major financial decisions are expected to be made by the Minster of Communications alone. Not only does this place an unfair and unreasonable responsibility on the Minister of Communications but it ensures that we fail in our duty to ensure that all public money is dealt with in a transparent, accountable and responsible manner. All members of government should be experts in their own field. The Minister of Finance should be an expert in finance, and the Minister of Communications should be an expert in the field of communications.
The DA fails to understand why there was an absolute insistence that the Minister of Finance and his concurrence were cut completely from this Bill. It sets a dangerous precedent in which the Minister of Finance would be sidelined in major financial decisions. However, his department will still have to pick up the pieces when bad financial decisions cause the financial collapse of a department.
I would also like to voice my unhappiness with how negotiations regarding this Bill took place. Portfolio committees and, more importantly, portfolio committee members are not in their positions simply to rubber-stamp Bills and push them through. It is well known that in a committee that generally enjoys a cordial relationship, this Bill has been a bone of contention and has seen the DA walking out of a meeting that we believe to have been incorrectly convened and boycotting another meeting for which inadequate notice was given and with regard to which consultation regarding availability was not entered into.
One of our greatest roles as public representatives is to protect the public coffers and to ensure that all government decisions are accountable, responsible and in the best interests of all South Africans. Due to the financial mismanagement that could occur owing to the lack of consultation with our country's financial experts, the DA simply cannot support this Bill. [Applause.]
Chairperson, Cope supports all measures designed to extend access to postal services for South Africans, especially for people residing in rural and underdeveloped areas. We also support the new legal framework for postal services, which will hopefully facilitate greater efficiency and accountability and improve financial management.
However, we are very concerned about recent reports of alleged financial mismanagement in the Post Office. We are also concerned that the dust had hardly settled on the questionable Post Office lease contract when news of a flawed R110 million WebRiposte retail system project hit the headlines. We believe the Public Finance Management Act should be utilised to discourage reckless financial management. But it seems that there is an apparent reluctance to implement sanctions of personal liability, as provided for in the Public Finance Management Act.
As far as we are aware, there has been no punitive consequence for public officials who flout the Public Finance Management Act. We believe that it is not good that the state inevitably picks up the tab and individuals guilty of even the most glaring mismanagement and corruption are only given a small rap over the knuckles. The time has come for politicians in executive positions, board members and executive incumbents of parastatals to be held personally liable for the costly bungling and mismanagement that takes place.
The Post Office Bill before the House today contains very important clauses that, if applied and enforced, would contribute to improved corporate governance of the Post Office and its subsidiaries. It includes criteria for disqualification as well as details of fiduciary duties of board members and very necessary measures to avoid a conflict of interest by board members and their families.
However, Cope has to register serious concerns about amendments introduced by the ANC to remove the financial controls which were supposed to have been exercised by the Minister of Finance. This, we believe, is not in the interests of good governance and cannot be supported. The Bill as originally introduced, as was said by hon Michael, required the concurrence of the Minister of Finance on critical matters that could clearly have significant financial and budgetary implications. These matters include the alienation of shares, the alteration of the main business of the Post Office, any possible merger or joint venture, as well as borrowing of money. In terms of the amendment to the Bill, it now allows for consultation by the Minister of Communications with the Minister of Finance. We believe this is a very serious step taking the Post Office in the wrong direction. It could cripple the primary mandate of the entity, namely to deliver postal services to all, or worse: It could in time result in yet another state bail-out.
With the amendments, we will have to rely only on historic overviews by the Auditor-General to review the financial shortcomings of the entity, or on the provisions of section 216 of the Constitution, whereby the Minister of Finance can withhold public funding from this entity. Another ANC amendment abdicates the oversight role of Parliament by giving the Minister of Communications exclusive rights to appoint members of the Post Office board. There is no role whatsoever for Parliament, the assembly of the people, according to the Constitution of South Africa.
Notwithstanding these very serious shortcomings of the Bill - and we believe that it is also necessary to test the constitutionality of the Bill - we do believe, as Cope, that we will support the broad tenets of the Bill. We will certainly keep a watching brief to ensure accountability, responsiveness and transparency and, above all, to expose financial mismanagement and corruption at the Post Office and all other entities, now and in the future. [Applause.]
Chairperson, I rise to express the support of the IFP for the SA Post Office SOC Ltd Bill. Indeed, when the Bill was passed by the Portfolio Committee on Communications, it received the unanimous support of all parties present, but even though that was the case, we felt that it was important for the parties to be given an opportunity to express themselves on the Bill. This is in view of the fact that the passage of this Bill is a matter of significant historical importance not only for the Post Office itself but for the country as a whole.
Developments in the industry have necessitated the separation of the postal services from the telecommunications sector. Further reforms in the sector extended the mandate of the Post Office to include the use of information and communication technology infrastructure, as well as the offering of services other than the traditional postal services.
However, this created a situation where the Post Office was not governed by a single Act but by a variety of pieces of legislation promulgated at different stages and not only focusing on the provision of the core postal services that the Post Office was supposed to deliver to the South African public. This then necessitated a new piece of legislation which would provide a comprehensive legal framework addressing corporate governance of the Post Office in a single Act focusing on the Post Office as a legal entity, which this Bill before this National Assembly does.
Now that we have given the Post Office a new, up-to-date legislative framework within which to operate, we hope that it will be possible for the Post Office to live up to the imperatives of transformation and the expectations of particularly the poorest of the poor by extending its services especially to underserviced areas of our country in order to effectively contribute towards the alleviation of poverty.
Mudzulatshidulo, ndi khou livhuwa u fhiwa tshifhinga lwa u tou thoma uri ndi davhidzane na dzulo i?i malugana na zwipikwa zwa uyu Mulayotibe wa Poswo ya Afurika Tshipembe, nga maan?a ro livhana na mafhungo a ndangulo kwayo na matshimbidzele one one a itshi tshishumiswa. (Translation of Tshivenda paragraph follows.)
[Ms A F MUTHAMBI: Chairperson, I thank for you the opportunity given to me for the first time to debate at this sitting about the objectives of this SA Post Office Bill, especially in relation to the efficient management and administration of this institution.]
I need to first correct the statement made by hon Michael from the DA. I want to it on record that the DA never walked out during the processing of the Bill. The only time they walked out was when we were adopting the Department of Communications and Government Communication and Information System's reports. Therefore the statement made by the hon member is misleading and I challenge the hon member to consult the records of the committee proceedings in this regard. [Applause.]
The tabling of the SA Post Office SOC Ltd Bill seeks to strengthen existing governance mechanisms. It further not only addresses issues of company operations but also deals specifically with issues of the SA Post Office as a state-owned entity. Enabling provisions that deal with the operation of the Post Office still lie in the almost obsolete Post Office Act of 1958. As a result of these developments, it became imperative that a new law be enacted to deal with governance issues and to ensure that the SA Post Office meets the mandate of universal service obligation and universal access, in view of convergence and developments in the information and communication technology, ICT, sector, so that we can clearly define the structure of the SA Post Office as a corporate entity.
Mulayotibe uyu u dovha hafhu wa thoma matshimbidzele ane a ?o vhekanya nzudzanyo dza tshiimiswa dzine dza khwa?hisedza u shuma zwavhu?i, u khwi?isa n?isedzo ya tshumelo, na u ?u?uwedza vhu?ifhinduleli. Tshipikwa tshihulwane tsha Mulayotibe uyu ndi u vhona uri Poswo ya Afurika Tshipembe i dzule i hone tshifhinga tsho?he, hu vhe na vhulanguli kwayo na mbetshelwa ya tshumelo ya poswo ine ya swikelelea nga vho?he. Vhathu vho?he vha tea ?itika ngayo nahone ivhe na mitengo i fareaho. Hu tea u vha na mbetshelwa ya tshumelo nnzhi ya poswo u itela nyaluwo ya ikonomi na mbveledziso ya shango, khathihi na u ?u?uwedza vhashumi u guda vhukoni ho teaho kha n?owetshumo ya poswo, nga maan?a kha zwigwada zwine u ya nga ha ?ivhazwakale, zwo vha zwo siiwa thungo.
Zwenezwo, u phasiswa ha Mulayotibe uyu nga Phalamennde N?uni ino, ndi ?iga ?avhu?i kha u shandukisa na u ita uri poswo ya Afurika Tshipembe i vhe ya musalauno. Hezwi zwi ?o khwi?isa vhu?i ha tshumelo na u ?etshedza tshumelo i swikeleleaho ine vhathu vha nga ?itika ngayo, na u dovha u vhona uri poswo ya Afurika Tshipembe i ita mushumo wayo nga n?ila ine ya vha khagala, zwine zwa ?o vhuedza vhunzhi ha vhadzulapo vha shango.
Hoyu Mulayotibe u dovha hafhu wa ?o?a u shelamulenzhe nga n?ila i vhuedzaho kha vhunzhi ha vhathu, nga maan?a kha zwitshavha zwa mahayani hune poswo ya Afurika Tshipembe ya ita mushumo wayo nga u vhona uri hu na mbetshelwa ya tshumelo nnzhi dza poswo na dzi?we tshumelo dzine dza vha nn?a ha tshumelo iyi, u itela nyaluwo ya ikonomi na mbveledziso ya shango i?i ?ashu.
Ndi zwa ndeme u humbudza Nn?u nga ha mivhundu mi?uku ire mahayani kulekule na dzi?orobo, uri poswo ndi tshone tshishumiswa tsha muvhuso tshi tsho?he tshine tsha ?etshedza tshumelo dza ndeme dza poswo, tshumelo dza muvhuso na dzi?we tshumelo dzo engedzedzwaho dzine dza nga, u vusuludzwa ha mithelo ya zwiendedzi, mbadelo dza mindende, mbadelo dza mu?agasi, u vhulunga na u rumela masheleni, na zwi?we-vho. Hu na vhathu vhanzhi vhane vhutshilo havho ho?he ho ?isendeka nga tshumelo ya poswoni. Vha na fhulufhelo ?a uri kana zwa tou ita hani, tshumelo ya poswo ndi yoneyone nahone a i nga vha khakhisi kha nyito na vhubindudzi havho. (Translation of Tshivenda paragraphs follows.)
[This Bill also initiates the processes which would put in place the structures of the institution which put emphasis on good performance, improve service delivery and encourage accountability. The main objective of this Bill is to ensure that the SA Post Office is available at all times, that there is proper administration and that the provision of a postal service is accessible to all. There should be reasonable prices for the people who depend on the service. There should be provision for many services for economic growth and the development of the country as well as motivation for the workers to acquire skills required in the post office industry, especially in areas which, according to history, were marginalised.
Therefore, the passing of this Bill by Parliament in this House is a good step to transform the SA Post Office into a modern one. This will improve and provide reliable services which will be accessible to all, and ensure that the SA Post Office performs its duties in a transparent way, which would benefit most of the citizens of this country.
This Bill participates in a way which benefits most people, especially in rural areas where the SA Post Office provides more services, some of which are outside its mandate, for the economic growth and development of our country.
It is important to remind the House about the small rural villages which are far from the cities, where the Post Office is the only government institution which provides crucial postal, government and other additional services such as the renewal of vehicle licences, payments of pensions, electricity, savings, money transfers and others. There are so many people who depend on the services of the Post Office for their lives. They trust that the postal services are the best and will never disappoint them in their investment activities.]
The issue of conflicts of interest is a concern for the ANC and the country at large. It emerged as a vital part of the efforts to prevent corruption and modernise the public sector. Actual or potential conflict of interest of public officials has become a key issue of the ANC's political and public debate. There is a growing understanding that conflict of interest is harmful to public trust and can lead to corruption. We have seen this in the Auditor-General's report on government officials doing business with government, and the House has passed the resolution during the past year for accounting officers to take steps to establish strict and precise measures in this regard.
Swa nkoka hi Nawumbisi lowu wu ringeta ku lulamisa ndlela leyi khampani yi nga ta tirha na timhaka to paluxa kumbe ku pfumela ku va na xiave. Hi ndlela leyi Nawumbisi wu tumbuluxa sisiteme yo veka nandzu eka mhaka ya nkwetlembetano wa ntsakelo hi ku seketela maendlelo yo pfala leswi. (Translation of Xitsonga paragraph follows.)
[The important thing about this Bill is that it seeks to rectify the way in which the company will deal with the issue of disclosure or be allowed to be a shareholder. In this manner, the Bill will establish a system to criminalise the issue of conflict of interest by supporting the means to stop this.]
Provision is made in the Bill to provide for employees of the SA Post Office to take an oath or make affirmations before a Justice of the Peace prior to them performing the functions of their positions. In that vein, the Bill, together with other relevant constitutional, administrative and criminal legal provisions, provides a legal basis for identifying and controlling conflict-of-interest situations. The Bill therefore establishes a system to criminalise the issue of conflict of interest by encouraging the process to divest itself of such situations and avoid conflicts of interest.
Nawumbisi lowu wu kongomisa eka ku ndlandlamuxa ku tiyimisela ka mfumo ku vona leswaku switirhisiwa swa tiko swi vuyerisa Maafrika Dzonga. Nakambe nawu lowu wu ta tiyisisa leswaku ku na maendlelo lawa nga erivaleni lawa nga ta endla leswaku swi olova ku fikelela swikongomelo.
Mitirho na vutihlamuleri bya lava nga na xiave swi andlariwile. Mitirho ya lava va nga ni mikavelo yi hambanisiwile. Bodo na mitirhonkulu ya khampani yi le rivaleni. Maafrika Dzonga va ta tiva leswaku ya lawuriwa. Va ta nghenelela eka maendlelo yo hlawula swirho swa bodo. (Translation of Xitsonga paragraphs follows.)
[The Bill is aimed at enhancing the government's commitment to ensuring that state resources benefit South Africans. Again, the Bill will ensure that there are transparent processes that will ensure that it is easy to achieve the goals.
The duties and responsibilities of the shareholders are outlined. The duties of those who have shares have been distinguished. The main functions of the board and the entity are explicit. South Africans will know that it is managed. They will be involved in the nomination processes of board members.]
The Bill aims to facilitate greater efficiency and strengthen accountability within the Post Office. It therefore creates a space for transparency and openness in the reporting and disclosure of information, both operational and financial.
The Bill is crafted to ensure that the board and its employees demonstrate compliance with the following characteristics: people with knowledge, ability and commitment to fulfil their responsibilities; people who understand their purpose and whose interests they represent; people who understand what constitutes reasonable information for good governance and do everything possible to obtain it.
Provision is made for the duties of the Post Office and also for the powers of the Post Office. The Bill also makes provision for the conclusion of an annual performance agreement with the Minister of Communications, in terms of which the performance of the functions of the Post Office will be measured. Furthermore, provision is made for concurrence between the Minister of Communications and the Minister of Finance when it comes to government support to the Post Office and upon loan acquisitions.
The Bill further provides details on the Post Office board, its functions and grounds for the disqualification of members of the board. The procedure to appoint nonexecutive members to the board is outlined and the fiduciary duties are also explained. It is our submission as the ANC that the commitment of government will only be achieved when state-owned entities are well managed and directed, therefore leading to the overall development of and economic growth in the sector.
A ndzi kanakani leswaku ku pasisiwa ka Nawumbisi lowu swi ta tisa ku tsaka na nyanyuko eka Maafrika Dzonga tani hi maendlelo lawa nga erivaleni yo fambisa mabindzu ya mfumo. Tani hi xiphemu xa maendlelo swi ta endla leswaku va tiva. (Translation of Xitsonga paragraph follows.)
[I have no doubt that the ratifying of the Bill will bring joy and excitement to South Africans as a transparent process to manage state-owned enterprises. As part of the process, it will enable them to be in the know.]
?ihoro ?a ANC ?i khou tikedza Mulayotibe uyo. Ndi a livhuwa. [U vhanda zwan?a.] [The ANC supports this Bill. I thank you. [Applause.]]
Chairperson, hon members, the Bill before us seeks to ensure that the Postbank provides the "unbanked" masses of our people and lower-income South Africans with a complete range of financial services which are free of the obstacles they face at traditional commercial banks. For many years the UDM has been calling for the development of a strategy that bridges the resource allocation imbalance between South Africa's most developed parts and the rural communities, especially the poor ones.
The establishment of the Postbank will not only facilitate access for the poor and the rural communities to banking facilities but will also play an important role in bridging the digital divide between the aforementioned communities. Nothing can delight us more than seeing an increasing amount of resources being spent on bringing services close to our people. We also hope this project will teach commercial banks a thing or two about the role their failed Mzansi Account project was intended to play. The UDM supports the Bill.
Chairperson, Members of Parliament and representatives of the South African Post Office, SAPO, in the gallery, I greet you in the name of the ANC - black, green and gold. Four months ago, during the budget debates, I raised the degree to which a universal service and access to information and communication technology, ICT, was obtainable in the country and the rate at which access mechanisms to ICT were reaching our people.
Today I stand here before you once again talking about the need for the universality of postal services, which the Minister touched on in his introduction of this Bill. As indicated in the 1998 White Paper on Postal Policy, this sector provides the basic backbone linking South African people, positioning itself as a critical component in business and daily living. A viable and efficient postal service is essential to both social and economic development. The increasing globalisation of commerce and industry depends on fast and reliable communication systems.
Parliament is committed to facilitating the healthy development of the postal sector and ensuring the provision of access to a universal postal service by all South Africans, irrespective of geographic location or race, in a transparent and fair environment, in particular the rural poor. At the same time Parliament recognises that the means used to achieve these objectives must leave the greatest possible flexibility to accommodate technological changes as well as demographic changes.
The SA Post Office, as the custodian of such a universal service, faces the following key challenges in achieving its restructuring goals: addressing inequalities in accessing postal services as created by past policies; ensuring an equitable distribution of postal services; addressing the cost and service inefficiencies characteristic of the present system; providing a responsive, flexible and reliable service to its customer base; recapturing the confidence and support of its clients; and providing customers with an efficient postal service that is cost-effective and affordable. For as long as the rural poor, whom I represent and who are in the majority, are still disadvantaged in regard to communication, there will always be the need for a universal service for persons in respect of what is deemed a basic service. Today we continue to debate clauses 5 and 7 of the amendments, together with the rest of the corporate amendment clauses, because of the critical importance that the management of the Post Office has with regard to the mandate and the execution thereof. This means that whoever gets appointed has a direct impact on the outcome we generate and, even more so, the degree of commitment to the desired outcome.
The postal sector in general, and the Post Office in particular, is today still experiencing vast changes due to the infusion of technology, pointing to a still critical need not only to restructure the operating model but to build human capacity. This applies not only in cities and towns but also in the deep rural areas of this beloved country, South Africa, which is able to adapt to a new posting era and to a changing developmental requirement.
Here I am referring to the following: diminishing public revenue to subsidise operational losses; declining mail volumes and, consequently, postal revenue; low productivity and other internal efficiencies; and changing customer needs. These factors are as evident today as they were in 1998, when the White Paper was produced.
Having been in operation for over 500 years, today the SA Post Office operates under a 25-year licence granted by the Independent Communication Authority of South Africa, Icasa, in terms of which it must provide a universal service to all the citizens of the country. Prior to those 500 years, villages had resident mail men who travelled between communities and nations to deliver messages. People in this Parliament older than me can attest to what I am referring to. Beads and other means were used by lovers in a bid to communicate with one another. Communication is not just a basic right but a must. The message here is that postal services are key in the quest to ease communication between people. They have been an integral part and remain an integral part of the human journey and the human life experience.
It is also important to know that in a developing country such as ours, where the majority of people are on or below the breadline, the necessity of such institutions is even more critical, requiring a slight redefinition in light of the invention of mobile phones or cellphones.
In revolutionising postal services for the 21 century rural resident, the space of development is often filled with contradictions. These contradictions are often caused by the inability of development practitioners to search for and acknowledge the changing requirements of this segment of society.
When one looks closely at the proposed amendments, one must acknowledge the degree to which they encourage the Post Office to new technological heights. The duties of the Post Office, as stated in clause 1, effectively require the following: technical infrastructure upgrades; advanced market segmentation techniques, for example feasibility and market research; advanced market mobilising methods; skills development; disability considerations in services; product and service redefinition; and eco- friendly and innovative property infrastructure expansion.
In reviving the rural economy effectively, when we talk about the proverbial communications hub we should be asking: Given the extensive footprint, good or bad, of the Post Office, how do we turn these sites into ICT hubs, adding all manner of amenities and social services, depending on the market profile of the area? It is time we looked at these assets as rallying features around which communities come together and with regard to which government can and should be disseminating information and services.
Furthermore, we look forward to seeing the SA Post Office's inputs as the country speaks broadband more and more. We wish to hear how they see this phenomenon being applied to this environment and, even more so, to the way in which they deliver services and reposition themselves in a new technological space in rural areas.
Referring to clause 7, we want to see how the Post Office plays its part in the deep rural areas of Ngwavuma in KwaZulu-Natal or Mantserre in the North West province. The portfolio committee went on an oversight visit to the rural areas of KwaZulu-Natal and the main purpose was to see, to touch and to feel. Indeed, we saw, we touched and we felt. What we want to talk about and hear about now is not only how much the Post Office has made in a particular year. We want to hear how it has divided and defined markets, how it developed products flowing from that and thus mainstreamed its services so as to become relevant to the 21 century rural dweller, rich or poor.
In conclusion, the President of this beautiful country, South Africa, has spoken and where I come from ... lefoko la kgosi le agelwa mosako. [... whatever the king says, goes.]
During his state of the nation address, he was very strong on the question of work opportunities and skilling programmes for women and youth, in particular in the rural areas. Indeed, due to the migration they are the majority in those areas. In light of the fast changes in demographics and the technical topography, it is imperative that we review the skills within the sector relative to a new and redefined developmental strategy. [Time expired.]
Hon Chairperson, let me first acknowledge and convey appreciation for the contributions that have been made by all the speakers in the House today and those representing the various political parties. Your inputs have certainly enriched the debate and deliberations on this Bill. In particular, I want to express appreciation to Mr Zondi from the IFP, the UDM and those parties that have given their unqualified support for the Bill.
I also want to acknowledge the comments of appreciation made by Mrs Kilian from Cope, although her support for the Bill has been qualified. We accept that and I will attend to the issues that she has raised. In respect of the hon Natasha Michael from the DA, let me say that we also appreciate the fact that you recognise and acknowledge that the SA Post Office has been a truly remarkable achievement of the Department of Communications. That statement of yours is indeed significant and we appreciate your comments on that.
It is rather unfortunate, though, that the DA has sought not to support this particular Bill. If I listen very carefully to the comments made by the DA, it is not because you do not agree in substance with the content of the Bill, but rather that you have certain issues concerning the removal of the element of concurrence with the Minister of Finance with respect to financial issues. So, in a sense it is a qualified no-support position.
However, let me address that matter. I think in the first stages of the Bill that matter was included but as it subsequently went through, it was clear to us that to write into the law an element of concurrence between two Ministers really makes for bad lawmaking. It means that you distribute an administrative power between two Ministers and you don't say who is really in charge. In this way we recognise the principle that when it comes to matters pertaining to financial decisions, we have to engage in some collective decision-making with the Minister of Finance but we leave that to the Cabinet process. We leave that to the process in government because when the Minister of Communications has to take some policy decisions, even with respect to the management of the entity, he or she has the authority to take that to the Cabinet.
When it goes to the Cabinet, it becomes a government decision and no longer that of a department. In that process of deliberations all Ministers are given the opportunity to deliberate and make a contribution which sums up the collective views of government as a whole. It is at that point that we seek to get not only concurrence between the Minister of Communications and the Minister of Finance but, in fact, concurrence with all the Ministers with respect to the administrative responsibility of the Post Office.
We recognise that in the day-to-day management of the Post Office you have to have a streamlined operation because decisions will need to be made on a swift basis so that the board of the Post Office can be guided. If you then hang the board on a concurrent way of functioning between two Ministries, we might take an extra-ordinarily inordinate time to get an appropriate decision that can guide the board. It is for that reason that we argued that this concurrence element in the way the law is administered has got to be taken out and the responsibility squarely placed in one Minister who is accountable to Parliament. That Minister has to account to this House for what goes on with that particular entity.
We have replaced concurrence with consultation on financial matters. We think that word and that mechanism is more appropriately placed in discharging the responsibility to make sure that there is collective decision-making on matters pertaining to finance. We agree with the DA that when it comes to matters pertaining to finance, it is critically important that the Minister of Finance or the Ministry of Finance has a say in them. It is for that reason that we have accepted the principle that, when it comes to matters pertaining to the financial management of the Post Office, the Minister of Communications will act in consultation with the Minister of Finance.
Let me just conclude by saying that we are passing this law in a historically very important and very different context. We are doing it in the context of setting in place the platform for the new digital revolution in this country. We have accepted that by 2020 we have to ensure 100% Internet coverage in the country and 100% broadband coverage. The efficient Post Office is pivotally placed to play quite a crucial role in ensuring that we turn the dream that Natasha is talking about into reality ... [Interjections.] ... when she says that there must be Internet access for all. [Time expired.][Applause.]
Debate concluded.
Bill read a second time (Democratic Alliance dissenting).