Mr Speaker, I wish to introduce before the House four section 77 Money Bills. They are the Bills that have just been read out: the Employment Tax Incentive Bill of 2013, the Merchant Shipping (International Oil Pollution Compensation Fund) Contributions Bill, the Taxation Laws Amendment Bill and the Customs Duty Bill, all of 2013.
The Employment Tax Incentive Bill is part of a discourse that we have had for some time in South Africa about how we tackle the high and unacceptable levels of unemployment that we have in this country. It is only one part of a wide range of measures taken by government as part of the youth and skills accords to improve the skills levels and employment levels of young people, but also generally of unemployed people of all ages. Clearly, what we are demonstrating as government is our determination that everything possible must be done to enable employment to increase.
So, through this Bill, we are creating a dispensation through which enterprises can share the cost of employing both older and younger workers, both inside and outside of special economic zones, under certain circumstances. In a sense, we are asking everyone to accept the dictum of Deng Xiaoping, the man who transformed China. We have to transform our economies and our countries by crossing the river by feeling for the stones. This afternoon, I am tabling this Bill, which has two legs: employment in special economic zones for workers of all ages; and employment outside of special economic zones to give opportunities to young, first-time job seekers aged between 18 and 29.
No developmental strategy can succeed if the time, energy and talents of a country's people are not harnessed to achieve higher living standards. Employment, as we all know, offers an opportunity to do just that. Finding a job is about more than economics, however. It is a way to contribute to the wellbeing of our families, households and communities. We also contribute to the welfare of our society and economy, more broadly, and our confidence, dignity, self-image and optimism are shaped by whether we have a job, or not.
Order! Hon members, please reduce the noise level in the House.
Many South Africans are excluded from economic activity and, as a result, suffer disproportionately from unemployment, discouragement and economic marginalisation. Indeed, South Africa has one of the highest rates of unemployment worldwide and we should spare no effort in reducing unemployment.
The incidence of unemployment is highest among young people. This means that young people are denied the opportunity to gain the skills and experience that will enable them to build future careers and contribute to future economic growth. The lack of skills and the lack of opportunity is what we want to reverse by using a multiplicity of measures, this being one of them.
Approximately 94% of unemployed young people do not have further or tertiary education. Approximately 80% have either never worked or have not been employed for longer than a year. These are alarming indicators and they stand in the way of achieving our stated objective of improving the lives of people in this country.
This Bill creates a framework for the fiscus and enterprises in South Africa to share costs and to create employment, firstly in special economic zones. These will play a key role in creating and attracting investment in industries and indeed in expanding employment as well. As we learned from elsewhere in the world, incentives play a very important part in attracting investment to special economic zones. With that investment will come development of new industries and the opportunity for unemployed workers to be employed as well. Similarly, as I said earlier on, this Bill provides for the employment of young people between the ages of 18 and 29 in all parts of South Africa.
Let me move on to the Taxation Laws Amendment Bill and the Tax Administration Laws Amendment Bill. These amending Bills provide for revisions to existing tax legislation and complete the tax legislative changes arising from tax proposals, as announced in the 2013 Budget Speech. Tax legislation dealing with annual rates and monetary amounts was passed earlier this year.
Our fiscal sovereignty and our ability to fund government expenditure are premised on a sound tax policy framework and an efficient and effective revenue administration. As we know, global economic conditions continue to be fragile, and while the South African economy has weathered this period of turbulence reasonably well, we have certainly not returned, as we pointed out yesterday, to prerecession levels.
The Taxation Laws Amendment Bills encourage higher levels of retirement savings; encourage employers to assist their employees, especially those at the bottom of the income spectrum, to become homeowners; provide support for the development of special economic zones and the maritime sector; preserve and protect the tax bases of South Africa; and address tax anomalies that hinder commercial business activity.
The next Bill I wish to introduce is the Customs Duty Bill, which is also part of a group of Customs Bills that the House will be asked to consider. In an ever-changing and complex international, regional and national environment, customs plays a critical role in supporting government's programmes to promote economic growth, job creation and social cohesion. In this regard, customs plays three important roles. Firstly, the fiscal role, which this Bill deals with, involves the collection of the correct customs duties. This, for example, involves detecting undervaluation and the administration of antidumping duties, providing for opportunities to protect our economy and our local industries. It also contributes towards the fiscus. Of course, as the hon members know, 60% of these duties are also shared with our SA Customs Union, Sacu, neighbours.
Secondly, customs plays an important trade facilitation role, a subject that is going to be central to a meeting of the World Trade Organisation in December this year. This trade facilitation role is in relation to imports and exports, to encourage foreign investment and to support our economic competitiveness.
Thirdly, customs must apply the necessary controls in order to protect our society from prohibited goods, such as drugs, from entering the Republic.
Also tabled this afternoon is the Merchant Shipping (International Oil Pollution Compensation Fund) Contributions Bill of 2013. This Contributions Bill provides for the imposition of the levy on oil importers to contribute to the International Oil Pollution Compensation Fund, the manner in which the levy is determined and the obligation on the South African government to pay the contributions to the International Oil Pollution Compensation Fund.
The Contributions Bill is a Money Bill, as contemplated in section 77 of the Constitution. It forms part of a package of measures designed to give effect to the Republic of South Africa's obligations under international conventions and protocols pertaining to oil pollution damage. These obligations are the 1969 International Convention on Civil Liability for Oil Pollution Damage; the 1992 International Maritime Organisation Protocol, to amend the 1969 International Convention on Civil Liability for Oil Pollution; the 1971 International Convention on the Establishment of an International Fund for Oil Pollution Damage; and the 1992 protocol to amend the 1971 convention I mentioned earlier on.
The three other pieces of legislation that form part of this package of legislative measures are the Merchant Shipping Administration Bill and two Bills introduced by the Minister of Transport, which have been adopted by the National Assembly, namely the Merchant Shipping (Civil Liability Convention) Bill and the Merchant Shipping (International Oil Pollution Compensation Fund) Bill. This package of legislation deals with the issues of liability and compensation for loss or damage caused by contamination resulting from the escape or discharge of oil from oil tankers. The Civil Liability Convention provides that victims are entitled to claim compensation from the registered ship owner or insurers for pollution damage suffered in the territory or exclusive economic zone of a contracting state.
I will not bore you with too much more detail, save to say that the Contributions Bill proposes to impose a contributions levy to enable the required contributions in terms of the fund and convention to be paid to the SA Revenue Service by persons liable to pay the contributions. As I mentioned earlier, the government of South Africa will pay annually to the International Oil Pollution Compensation Fund the total amount of contributions invoiced by the director of that fund.
So, in conclusion, I hereby table for consideration by this House the Employment Tax Incentive Bill of 2013, the Merchant Shipping (International Oil Pollution Compensation Fund) Contributions Bill of 2013, the Taxation Laws Amendment Bill of 2013, and the Customs Duty Bill of 2013. I thank you. [Applause.]
Debate concluded.
Employment Tax Incentive Bill referred to the Standing Committee on Finance for consideration and report.
Merchant Shipping (International Oil Pollution Compensation Fund) Contributions Bill referred to the Standing Committee on Finance for consideration and report.
Taxation Laws Amendment Bill referred to the Standing Committee on Finance for consideration and report. Customs Duty Bill referred to the Standing Committee on Finance for consideration and report.