Hon Speaker, Ministers, Deputy Ministers and Acting Chairperson of the Portfolio Committee on Mineral Resources, once more we are tabling an amendment which has the intention of contributing towards the transformation of our economy in South Africa.
In defining our democratic future, we understood the need to be informed by an understanding of the current environment and our unique historical underpinnings that accentuated the current state of the mining industry globally and specifically in South Africa. As we traversed this journey, enjoined with the responsibility to redress past imbalances whilst we grow our industry, we have accordingly worked tirelessly at ensuring that the regulatory and legislative framework is optimised for the development of our natural resources. Even after more than a century, mining remains a sunrise industry that provides impetus for the development of various sectors of our economy, whilst it plays a critical role as we tackle the triple challenges of inequality, unemployment and poverty.
The Mineral and Petroleum Resources Development Act, a milestone piece of legislation in the South African mining and minerals sector, was signed into law and came into effect in May 2004. It vested custodianship of mineral resources with the state, giving effect to the internationally accepted right of the state to exercise sovereignty over all its mineral and petroleum resources.
Notwithstanding the tremendous progress achieved since the implementation of the Mineral and Petroleum Resources Development Act that created an enabling environment for growth and the basis for the transformation of the industry, South Africa's broader developmental objectives require a paradigm shift to allow development of the country's natural resources, especially solid minerals and petroleum, in a way that benefits our people, workers and investors alike. There is absolutely no reason why development of these resources cannot embrace the notion of shared value in which all stakeholders can benefit sustainably. The need to balance the interests and benefits of investors and the people of this country can neither be overemphasised nor treated as mutually exclusive.
We immediately directed the development of the mining strategy for sustainable growth and meaningful development of the mining industry. The strategy identifies major opportunities and binding constraints to the attainment of its objectives. Having considered the strategy, the department embarked on a process to amend the mining and regulatory reforms in a manner that will achieve both sustainable growth and meaningful transformation of South Africa's mining and petroleum industry. The Amendment Bill before you presents the necessary enhancement of the mining and upstream petroleum regulatory framework to augment the gains of the first decade of implementation.
The primary objective of the Mineral and Petroleum Resources Development Act is to improve the current construct of the Act by removing ambiguities that exist within the Act; make provisions for improved consultation processes; link the sanction provision to the turnover of the right holder; provide for the regulation of associated minerals; partition the rights and enhance provisions relating to the beneficiation of minerals; promote energy security; and finally, streamline the administrative processes with the departments of Water Affairs and Environmental Affairs.
The fragmentation of licensing for mining rights, environment and water use licenses were identified amongst the binding constraints to investment and the optimal development of the sector. As a result, the process of engagement amongst the departments of Mineral Resources, Water Affairs and Environmental Affairs culminated in the integrated licensing system which necessitated amendments to the three pieces of legislation. In terms of this process, the Minister of Mineral Resources will be the competent authority for the implementation of the National Environmental Management Act in respect of mine environmental management, whilst the Minister of Environmental Affairs will be the appeals authority. Section 96 has been amended to give effect to the aforementioned designation.
The streamlining of licensing processes improves the ease of doing business and provides the necessary certainty for investment by ensuring that the licensing process is achieved within a period of 300 days. This is indeed a good story to attract investment into South Africa but also contributes to a better economy for our country.
Section 9 is amended to deal with the order of processing applications and empowers the Minister to periodically invite applications by notice in the Government Gazette. The amendment brings about certainty, transparency as well as the orderly and optimal development of the nation's mineral and petroleum resources.
Section 26 of the Amendment Bill is aimed at strengthening the linkages between the mining and manufacturing sectors in order to maximise the value realised from the country's mineral resources by its citizens, thus contributing to government's objective of eliminating the triple developmental challenges of unemployment, inequality and poverty. Strengthening these linkages will be achieved by identifying key mineral inputs into the country's developmental imperatives which include infrastructure development, energy security, food security and industrialisation.
There have been concerns raised relating to unfettered ministerial discretion in terms of section 26 of the Act in that it lends itself to regulatory uncertainty. May I once more draw your attention to the constitutional ruling in the Kumba Iron Ore matter, which recognised and supported the entrenched principle of ministerial discretion where it is indeed appropriate and provided it is within the confines of the law.
Our experience of separate approaches of licensing to the intrinsically linked gas and coal resources has demonstrated that there is a general licensing duplication that creates uncertainty. It is precisely for this reason that the Bill is emphatic in its intent to affirm a cohesive and co- ordinated legislation for development and promotion of the country's solid minerals and petroleum resources. Chapter 6 of the Act deals exclusively with petroleum resources and is accordingly amended through the proposed Bill.
In terms of upstream petroleum development, section 86(a) is inserted to provide for state participation in petroleum development. The state has a right to a free-carried interest in all exploration and production rights. The insertion will ensure that the state is directly involved in the optimal exploitation of petroleum to achieve national development imperatives.
Section 23 is amended to further enhance provisions relating to the socioeconomic developmental impact of mining in respect of the Social and Labour Plan. This is an amendment which intends to take us to a future South Africa where poverty and unemployment will be issues of the past. Therefore, we are here to table this Bill as one of the most progressive steps in improving and contributing towards our economic development. I thank you. [Applause.]
Hon Speaker, hon Minister Shabangu, Deputy Minister Oliphant, hon members and my fellow comrades, when the Mineral and Petroleum Resources Development Amendment Bill, MPRDA, came into existence in 2002, it was, and has remained, the central piece of legislation governing South Africa's mining and petroleum sectors. This was enhanced by the 2008 amendments to the principle Act.
Last year, further amendments were tabled by the Minister, all of which seek to take South Africa forward and the mining and petroleum sectors to its next logical and higher stage of development. This defining legislation carries with it our Mining Charter - the document that, for our social and economic responsibilities, outlines the obligations and responsibilities of stakeholders who have been granted rights to participate in these crucial sectors.
As is the case in any country that is endowed with mineral resources and petroleum manufacturing sectors, the vested interests are understandably high. Therefore, it is of no surprise that we have had such vibrant discussions both during our public hearings and in the processing of the Amendment Bill. The critical question we have to ask ourselves today, bearing in mind what both the Deputy President and Minister Manuel had to say yesterday, is: whose interests need to be served by this Amendment Bill?
The Amendment Bill covers economic, social and environmental responsibilities and has sought to create a balance between expectations, government developmental priorities, the worker's needs, and community and environmental responsibilities. The intention of the Amendment Bill is to strengthen the architecture of the mining and petroleum sectors and align it to the needs of the developmental state, and in this regard the National Development Plan.
Simultaneously, the Amendment Bill seeks to improve security of tenure while continuing to create a climate that would enhance investor interest while ensuring social responsibility, and balances the risks and expectations of interested stakeholders.
The Amendment Bill speaks to a streamlining and better integration of mining, environmental and water authorisation processing. Security of tenure will of necessity form an integral part of the regulatory framework.
Briefly, as there is not enough time, some of the key objectives of the Amendment Bill are the following: The creation of a mining and minerals regulatory regime; the promotion of the development of mineral and petroleum resources in a sustainable and equitable manner; the streamlining of administrative processes to ensure proper alignment with the National Environmental Management Act and the National Water Act; increasing the socioeconomic developmental impact through mining; making provision for an application process by invitation; providing for implementation of a beneficiation strategy and to provide for the state's active participation in the exploitation of petroleum; declaring certain minerals to be strategic, mainly to guarantee security energy supply; and, most of all, the enhancement of regulations and implementation of social and labour plans.
Before I address particular matters, it is important to understand what has influenced the orientation of this Amendment Bill, otherwise an incorrect understanding of the intention of the Amendment Bill will be reached, as has been the case during our public hearings.
The ANC's policy on mineral resources and the petroleum sector has its roots in the Freedom Charter of 1955, the Ready to Govern ANC policy document of 1992 - a policy document drafted in preparation of the first democratic government, the Reconstruction and Development Programme of 1994- 95, the 52nd national conference of the ANC in Polokwane in 2007, the national general council of 2010 and the subsequent ANC policy document on state intervention in the mineral sector, as well as the 53rd national conference resolutions of the ANC in Mangaung in 2012.
It is a precondition that anyone who is debating this Amendment Bill today must have both read and understood these documents in order to understand what the Amendment Bill seeks to achieve. These central policy documents locate the nation's mineral assets as a resource to improve the lives of our people as a whole, and that others may benefit in this process as a secondary option.
Primary is the quality of the lives of our people, where they live and their ability to economically have a decent quality of life. If this is not understood then the Amendment Bill will not be understood. In this context, we are further implementing the Freedom Charter which states that:
The national wealth of our country, the heritage of South Africans, shall be restored to the people; The mineral wealth beneath the soil, the Banks and monopoly industry shall be transferred to the ownership of the people as a whole.
This was already done in 2002 under the Mineral and Petroleum Resources Development Amendment Bill. All privately-owned mineral resources were transferred to the state. However, in the subsequent years concessioning via mining rights did not ensure that their developmental impact was maximised. Therefore, at the ANC's 52nd national conference in Polokwane, it was resolved that:
The developmental state should maintain its strategic role in shaping the key sectors of the economy, including the mineral strategy and the national transport and logistics system, and must ensure that our national resource endowments, including land, water, minerals and marine resources are exploited to effectively maximise the growth, development and employment potential embedded in such national assets and not purely for profit.
This statement must be evaluated against the strategic goal of placing the economy on a new job creation and more equitable path. The 53rd national conference of the ANC at Mangaung in 2012 took this to a higher stage when it resolved that:
State intervention with a focus on beneficiation for industrialisation is urgently required. Instruments are required to support beneficiation and the competitive pricing of these strategic minerals.
In this regard, the Amendment Bill responds to this policy directive by stating that beneficiation in relation to any mineral resource means the following: The final stage, which is the action of producing properly processed, cut, polished or manufactured products or articles from minerals accepted in the industry and trade as fully and finally processed or manufactured and value-added products or articles; and transformation, value addition or downstream beneficiation of mineral and petroleum resources or a combination of minerals to a higher value product over baselines, to be determined by the Minister, which can either be consumed locally or exported. Furthermore, section 2 of the Amendment Bill states -
... promoting economic growth and mineral petroleum resources, and development of downstream beneficiation industries through provisions of feedstock development of mining and petroleum inputs industries.
With regard to the specific issues in the Amendment Bill, other ANC speakers will address these in greater detail during their inputs. Briefly, as an overview on beneficiation, exploitation of minerals must optimise the developmental impact, especially job creation across the economy. Beneficiation and transformation in the mining sector should be linked because there cannot be transformation without beneficiation. The ANC state's intervention in the mineral sector outlines how best to leverage South Africa's mineral wealth to grow the economy and create more jobs.
With regard to free-carried interests, an aspect that has raised much debate, let us remember that this is an international practice. We are following best practices and experiences in other countries when dealing with the amount of free-carried interest that the state should be entitled to, namely 20% free-carried interest in all new exploration and production rights of oil and gas through designated organs of state. This is a portion of production that goes directly to the state as a form of tax for the initial exploration. In addition, the state under this Amendment Bill is entitled to further participation in the exploration and production of oil and gas for which it will pay a market-related price.
In conclusion, we conducted extensive public hearings over four days in September 2013, and 51 submissions were received, including several joint submissions. We dealt substantively with the submissions and the concerns that were raised. We are certain that we are providing certainty in both industries through this Amendment Bill. We have remained open even during the processing of the clauses.
Let me make it clear that as legislators we have the responsibility to include all key stakeholders in legislation that will impact upon them, and we have definitely done that. What is disappointing, therefore, is to read the alarmist statements and threats that investors will look elsewhere for their exploration, in the Business Day. [Interjections.] At its 53rd national conference, the ANC made it clear how it will work with business to build the economy.
This means that we are open for discussion, but that carries with it the responsibility to accept that views may differ whilst respecting individual views.
With regard to the long-debated matter of tagging, we are confident that the schedules in the Constitution have been respected and that minerals and petroleum as defined in the Constitution remain a national competence, both now and in the future. It is rather on the issue of trade that we accede that the matter of section 76 arises. I therefore ... [Interjections.] Don't worry about the tax issue. We all pay tax. [Interjections.] I would like to thank all who have participated ... [Interjections.]
Order, hon members!
... in this strenuous exercise, from members of the committee to the Minister and Deputy Minister of Mineral Resources. A special thanks to the Chairperson, hon Johnny de Lange and the Minister of Water and Environmental Affairs, hon Edna Molewa, for their guidance and co- operation in working under unusual circumstances of a cross-cutting nature, departmentally as well as legislatively.
Most of all, I want to thank Minister Shabangu, who has tried to provide her guidance and expertise in the work she does, as well as the Chief Whip of the Majority Party for the confidence and leadership he showed in the successful passing of this Bill.
I want to give special recognition to the unified manner in which the support staff has been attending to the portfolio committee irrespective of the restricted delegation of their duties and work, not forgetting the extraordinary talent and specialties they portray in their capacities. I am not leaving the Department of Mineral Resources behind.
My final vote of thanks goes to a special mother, leader, mentor, and my political stalwart and admirer in the movement, Deputy Minister of Police, Makhotso Sotyu. Thank you for the confidence and trust you have shown me. I dedicate this speech to your teachings. I thank you. [Applause.]
MR J R B LORIMER: Speaker, we have a Bill before us; which even in the most benign interpretation is going to severely damage the mining and energy industries. However, I am not prepared to be benign about this Bill. I think it can simply be described as a charter for crony enrichment that will cost us investment and jobs. Our mining industry has not been healthy for years. The 2002 Mineral and Petroleum Resources Development Amendment, MPRDA, Bill was a failure. We missed the last resources boom because of it. The Bill was passed when the ANC government was beginning to tilt the playing field, not as it claims to allow greater benefits to flow to the poor, unemployed people, or workers. No, the playing field was tilted to make sure that people who benefited were what one could describe in shorthand as the three Cs. The three Cs are comrades, cronies and cousins.
I have explained in this House before about why this Bill is bad. I shall explain again, not because members of government will listen or be swayed by it, but because those who are going to vote for this Bill must never say, they did not know what they were voting for. Mining companies and investors have long complained that there is not enough certainty in South Africa's current mining law. Mines take a long time to build and develop. Investors need to know the rules that will pertain to their investments years down the line.
Those rules can be most certain if they are contained in legislation. Legislation can be changed, but it takes a long time and the process is fairly transparent. It is not so with regulation. This Bill has more than 30 instances where key rules will be decided by regulation. The Minister decides on regulation. It is opaque and can be changed rapidly. It provides none of the certainty that investors need and thus will put us in a worse position than we already are.
What this Bill seeks to do is to put us in a place where the Minister says to potential investors, "here is a mineral prospect, make me an offer". Does anyone really think that companies will get that deal unless they are comrades, cronies or cousins; or unless they are contributing election funds to the ANC? The possibility also exists; they may try to grease the palms of top officials. Looking at the performance of this government, who can confidently say that those offices will not be accepted?
Other low lights of this Bill include the power given to the Minister to block exports of mineral products. The intention is to give lower priced inputs for manufactures. The government vehemently denies that this amounts to the mining industry subsidising the manufacturing industry, but that is exactly what this is.
The World Bank and others have argued against beneficiation at the expense of mining. We are already seeing the effects of this in the coal sector where there have not been enough major new mines, and neither will there be. By trying in this way to solve the problem of coal supply to Eskom, this Bill will make it worse. So when there is no coal, and the lights go off again, stand by for more feeble excuses.
This Bill also gives government the power to nationalise at fire sale prices any drilling operation that finds oil or gas. Drilling companies can be forced to give away the other 80% of the find at any low price the government is prepared to pay after they have given away 20% free carried interest. Will anybody drill under those conditions, even for the lower risk shale gas? I would not bet on it.
So the much talked of economic game changer is destroyed through the infantile economics policies of the ANC. The government may just say it is driving a hard bargain. This moves beyond hard bargain into just plain silly. Investors do not reward silly governments with good credit ratings. If you think that our credit rating is going to improve, best you think again.
Another low light is the disappearance of the Petroleum Agency of South Africa, Pasa. The Petroleum Agency of South Africa did its job well, that is why there has been so much interest in our potential new energy industry. So why do away with the agency? Are we surprised of the widespread belief that they were too professional to make special concessions to comrades, cronies and cousins? Stand in the way of crony enrichment and you have to go.
Half of Pasa's function is supposed to go to the Council for Geosciences; the same council for Geoscience which recently came before the committee and said that it does not have enough money while the Treasury has given them money to fulfil their current mandate. So how are they going to do the new functions they are supposed to do under this Bill? Yet another failure.
During the passage of this Bill through the committee, I have been accused of getting excited and being harsh. That is not harsh. I will tell you what harsh is, harsh is when you see South Africans who are in their 30s, who have never held a proper job and are unlikely to ever in their lives, particularly under this government. Their hopes for a decent life are being slowly smashed.
This government is incapable of creating the jobs we need to pull our people out of the misery of wasted lives. This government is content to see people condemned to the scrap heap of permanent unemployment, just so the three Cs can have a turn at the trough. Mr Speaker, the poor are being thrown away by this government, which puts crony enrichment above the salvation of the South African people. [Applause.]
MR C C HUANG: Hon Speaker, Cope argues that, among other things, to remove ambiguities that exist within the Mineral and Petroleum Resources Development Act, MPRDA, streamlined administrative processes and improved regulatory system, the Bill adds to regulatory uncertainty by giving the Minister of Mineral Resources a significant number of new powers framed in such broad terms as to encourage their arbitrary and unequal application.
The Bill attempts to jettison the current MPRDA requirement that beneficiation must take place economically. It obliges the Minister to initiate or promote the beneficiation and leaves aside the key question of whether this can be done on an economical basis. Export controls, as the National Development Plan has warned, could make existing mining operations financially unstable, leading to mine closures and job losses. The Bill's insistence on local beneficiation overlooks economic realities and could have severe consequences.
The Bill also empowers the Minister with broad-ranging powers to impose additional community obligations on mining houses and further gives her an unfettered authority to identify certain minerals as strategic and then it seems to subject such minerals to both price and export controls. Mining companies cannot invest for the future if the minerals they seek to extract at great cost could at any time be made subject to state controls of this kind.
Overall, the Bill also increases regulatory uncertainty by removing the first in, first-assessed rights principle. Based on experience elsewhere in Africa, the higher the interest thus claimed by the state - there is nothing in this Bill to limit this - the more new investment will be discouraged.
These discretionary powers being granted to the Minister and her officials in this Bill substantially contradicts the NDP's call for regulatory reform that provides policy certainty. Effective ways need to be found to cure the ambiguities in the MPRDA; introduce a transparent and objective process for granting mining rights; avoid further onerous regulatory change; and give the holders of mining rights the security of tenure needed to restore confidence in South Africa's minerals regime. Only in this way will the government be able to encourage an upsurge in the mining investment so vital to increased employment, growth and prosperity.
The MPRDA fails to give effect to these principles by failing to provide for adequate notices and consultation; fails to make provision for access to information by interested and affected parties, rendering even those consultation opportunities that are provided for ineffective.
Cope therefore submits its reservations that this Bill does not rectify these inadequacies in the MPRDA, nor does it provide for appropriate consultation with other organs of state through the Regional Mining Development and Environment Committee, therefore indicating our lack of support for the Bill. I thank you.
Madam Deputy Speaker, I have listened very carefully to hon Lorimer's speech. He actually stole my speech because all those beautiful points that he made, I had in mind to make. So thank you for doing my speech.
We have serious reservations about this Bill, and Mr Lorimer has indicated many of them. The IFP cannot support this Bill, but we will not vote against it. We will abstain.
Deputy Speaker, as I rise to speak on this Bill, members from this side of the House will undoubtedly question why I am speaking on this Bill when I was not part of the deliberations concerning it. That is a very legitimate concern, but the real question is: Why wasn't the Portfolio Committee on Energy, of which I am a member, consulted with on this Bill, as it concerns the oil and gas industry, which very much falls under our jurisdiction? [Applause.]
A few weeks ago, the Portfolio Committee on Energy held a stakeholders' meeting on the oil and gas industry where major concerns over this Bill were highlighted. It was stated at this meeting that legislation concerning the oil and gas industry needed to be separated from that dealing with traditional mining operations. It must be understood the oil and gas industry is a nascent industry that has not even yet got off the ground. The passing of this legislation will, quite frankly, ensure that this industry never gets off the ground in South Africa, as investors will not commit billions of rand into exploration when the outright threat of nationalisation looms over their heads.
The ANC can jump up and down as much as it wants, but it cannot force companies to invest, and all the benefits that this industry might have added in terms of job creation and much-needed government revenue will simply not materialise. I am certainly all for this country receiving a fair share of the revenue from our mineral wealth, but that wealth needs to be exploited in the first place. You cannot nationalise, Minister, what isn't even there yet. How can any company be asked to invest billions of rand into exploring for oil and gas when this Bill implicitly states that 100% of its assets can, effectively, be taken away from it when the Minister sees fit?
This is absolutely ludicrous and reminds me of when I went on a study tour to Venezuela, and I asked the parliament there as to what its policy on nationalisation was. They simply said to me that it is at the discretion of the President as to what gets nationalised. It seems that South Africa is now also determined to waive the rule of law and replace it with a system where the ANC has the discretion to take over business as it sees fit.
The ANC should just be honest about it, as you clearly do not want an oil and gas industry in South Africa. You also want a situation whereby you can allocate mining licenses to your own friends, as opposed to a rigid system that is not open to corruption and where the company that can deliver the best return for the country is given a license. Out goes the rule of law, and in comes the rule of President Zuma's ANC. [Interjections.]
The people have a chance to change this on 7 May, and I hope they choose a party that is serious about growing this economy and creating jobs. Once again, the ANC has proven that they are certainly not that party. I thank you. [Applause.]
Deputy Speaker, first of all, I must indicate that the ANC is the legitimate custodian of the legitimate aspirations of the people of South Africa. [Interjections.] The ANC does not represent narrow, white sectional interests, who want to cling to the status quo of an untransformed economy in South Africa.
It is our observation that the differences during the deliberations were very revealing about the opposition. Firstly, there is the DA's obsession with auctioning the mineral resources of this country to the highest bidder. The DA is also blindly loyal to the indiscriminate exploitation of any and all mineral resources for the exclusive benefit of foreign companies. [Interjections.]
This debate on the amendments to the Mineral and Petroleum Resources Development Bill could not have come at a better time. As we celebrate 20 years of freedom, our country is abuzz with passionate debates and discussions on the need for meaningful economic transformation. A point that has to be emphasised is that, 20 years after the advent of our political freedom, the need to radically change the economy for the development and empowerment of the historically disadvantaged people is looming large in the current political and economic climate. Old structures of the economic productive system have to be changed in terms of ownership, social participation, management, employment, skills and in terms of geography, in ways that integrate rural areas into the modern productive system.
We must develop and expand the productive industrial base in ways that create jobs, eliminate poverty, reduce inequality and eradicate underdevelopment. An attempt has been made from the opposition benches to detract us from discussing a matter of national importance, because they do not have an agenda for economic transformation. [Interjections.] The local productive system has to be developed through skills and cutting-edge technologies that produce high quality value-added products so as to be competitive in international markets. We have to break the historical production structures that continue to reduce our country to a mere supplier of raw materials.
To this end, we are happy with work in progress by the Economics Cluster in pursuit of the aspirations of the New Growth Path and the Industrial Policy Action Plan, Ipap, policies. Because of the industrial strength of developing countries, the global setting today, therefore, presents more opportunities than in the past, for the local radical economic action to succeed. The struggles on the economic front have already taken centre stage in the current political climate and should lead to a radical economic transformation so that our democratisation is linked to the social progress of all our people, not just owners and managers of capital.
The mineral wealth of a country is a national heritage that must be utilised to the benefit of its citizens. This assertion is the core tenet of the Mineral and Petroleum Resources Development Act, Act 28 of 2002, consistent with international conventions that affirm its relevance, such as the United Nations General Assembly Resolution 1803 (XVII) of 1962, which affirms that -
... the rights of peoples and nations to permanent sovereignty over their natural wealth and resources must be exercised in the interest of their national development and of the well-being of the people of the state concerned.
Even though South Africa is blessed with some of the largest reserves of minerals in the world, this abundance is ultimately finite and must be the basis on which a more diversified, industrialised and, ultimately, sustainable economy must be developed for the benefit of its citizens. The mineral beneficiation proposition will create a domestic market for local miners and does not require them to subsidise the manufacturing industries. It will also ensure that security of supply is guaranteed for local manufacturers or beneficiates and optimise use of the current installed infrastructure for the movement of bulk commodities. These interventions are intended to optimise linkages between the mining sector and the manufacturing sector.
Accordingly, sustainable mineral beneficiation value proposition is necessary because minerals are ultimately finite, and with their depletion will come a wave of foreclosures and the attendant cessation of economic activities. Export revenue realised from the sale of primary commodities is also more than offset by the import of high-value manufactured goods, thus placing negative pressure on the country's balance of payments.
There is no alternative to value addition in industrialisation of the mining sector, because it will expand and develop the economic output, in terms of producing high-end, value-added goods, in terms of revenues that will increase many fold, and in terms of large-scale employment that will result from expanded production.
The amendments to section 26 are intended to put in place key interventions that are intended to strengthen the linkages between mining and manufacturing, as per the ANC manifesto of 2014 wherein strategic minerals will be identified for policy interventions in the manufacturing, energy, agriculture and infrastructure sectors. To give effect to these policy interventions, the Amendment Bill makes provision for the following. The designation of minerals will ensure the implementation of key programmes of government aimed at ameliorating the developmental challenges of unemployment, inequality and poverty. Security of supply will be critical to strengthen the linkages between mining and manufacturing. Section 26(2)(b) makes provision for security of supply by requiring producers of designated minerals to set aside a portion of their production of designated minerals for local beneficiation.
Underlying these interventions will be the principle that mining companies will not be compelled to beneficiate minerals. However, they are expected, in terms of the proposed section 26, to avail a portion of their production of designated minerals for local beneficiation. We have to stress a point about the role of the state - that the role of the state is a prerequisite for our national development to succeed. We think it is not only a false obsession with neoliberal schemes for some in the House to always counteract the role of the state against private sector investment, but a downright mischief.
At its 53rd national conference, the ANC resolved that the state must capture an equitable share of mineral resource rents through the tax system and deploy them in the interests of long-term economic growth, development and transformation. We believe government is on the right track with regard to this.
The Mineral and Petroleum Resources Development Amendment Bill makes provision, through the designated organs of state ... Thank you, Deputy Speaker. The ANC supports the Bill. [Applause.] [Time expired.]
Deputy Speaker, today I would like to talk to you directly and address a matter of great concern for us. Whilst there are various issues of concern contained in this Bill, the most pressing matter for us relates to property rights.
In my informal discussions with parliamentary members of the ANC, I am continuously given the impression that the ANC will protect property. Yet, when one has regard to the legislation tabled in this House by the ANC, a different message becomes clear. In this Bill, government wants a 20% free carry interest in any petroleum and gas concern. Furthermore, it also provides the right for the government to buy up to an 80% interest in that very same business. Government could, thus, potentially end up owning 100% of such a business. This smacks of nationalisation by stealth. Add to this picture the clause found in the Promotion and Protection of Investment Bill, which determines that government can siege property and hold it as custodian and that it, in terms of a Constitutional Court judgment, cannot be subject to any claims for compensation. The picture is completed when one has regard to the reopening of the land claims process, wherein any expropriation will not compensated by way of a market-related price.
Hierdie wetgewende kwashale skilder 'n baie donker prentjie vir 'n land wat hom voorhou as een met 'n moderne ekonomie waarvan die hoeksteen die private eiendomsreg is. Hierdie wetgewende ingrypings stuur 'n baie duidelike sein vir enige buitestaander: dat die ANC besig is om Julius Malema se beleid te implementeer, maar net op 'n baie meer gesofistikeerde wyse.
Die vraag wat ek aan u wil vra, Minister, en u moet dit asseblief eerlik antwoord, is die volgende: Wat is die ANC se werklike posisie rondom private eiendomsreg? U mede-parlementslede in die ANC s vir my dat ons niks het om oor bekommerd te wees nie, maar aan die ander kant word regsinstrumente geskep wat op kragdadige wyse inbraak kan maak op private eiendomsreg. So ek vra: Sal die ware ANC asseblief opstaan en eerlik wees met die mense van hierdie land? Dankie. (Translation of Afrikaans paragraphs follows.)
[These legislative brushstrokes paint a very dark picture of a country that presents itself as one with a modern economy, which has private property rights as its cornerstone. These legislative interventions are sending a very distinct signal to any outsider - which is that the ANC is in the process of implementing Julius Malema's policy, but they are merely doing it in a much more sophisticated manner.
The question I would like to pose to you, Minister, is the following, and you should please respond in an honest manner: What is the ANC's actual position on private property rights? Fellow parliamentarians in the ANC are of the opinion that we have nothing to be worried about, yet legal instruments are being created that could infringe on private property rights in a compelling manner. So I am asking: Will the real ANC please stand up and be honest with the people of this country? Thank you.]
Hon Deputy Speaker, the ACDP has not participated in the committee deliberations, so we are guided by reports on these proceedings.
The Mineral and Petroleum Resources Development Amendment Bill was always going to be a highly contentious piece of legislation, in view of the great disparities we face in South Africa and the diverse views held by our people on how to address these challenges.
The ACDP is concerned that the Bill, as it stands, could compromise the sector's ability to produce the required resources and provide much-needed stimulation of the economy.
The changes to the 2002 Mineral and Petroleum Resources Development Amendment Act will give the government a 20% free stake in all new energy projects and the right to buy an unspecified additional share at an agreed price. One of the Minister's powers is to determine the reservations of key minerals for beneficiation, to stimulate the manufacturing sector of the economy and to determine how much of the production in the oil and gas sector will go to the state.
Suggestions were made that the legislation should be delayed until after the election to allow legislators to properly consider the implications. Hon Minister, why the hurry? Surely, we must get this legislation right if we want a strong and thriving sector. Oil and gas exploration and mining have different risk profiles and, at the very least, a distinction must be made between them.
The ACDP will not support this legislation as its stands, as we do not believe that it will bring the much-needed stability in the industry nor will it give the necessary certainty that is required for investor confidence. Thank you.
Deputy Speaker, this House and the nation were treated to an angry rhetoric from an unpatriotic member of this House who wants to sell this country as it is.
Minister Shabangu, hon Deputy Minister Oliphant, Ministers, Deputy Ministers present here, hon members, ladies and gentlemen, in its Ready to Govern document, the ANC made it known that the mineral wealth beneath the soil is the national heritage of all South Africans, including future generations. As a diminishing resource it should be used with due regard to socioeconomic needs and environmental conservation.
The abundance of mineral resources in our land and our coastal belt makes it necessary for the state to be the custodian of these resources for the benefit of all South Africans. This Bill, therefore, comes as a strategic instrument for the country to realise that objective.
It's unfortunate that some in this House would opt for an arrangement that would open our mineral wealth for all to come and loot; that we will not allow. Deputy Speaker, allow me to address some of the areas around which, in particular, the DA finds little or no comfort. But we can't help it because they are like that.
Firstly, it is integration of the petroleum functions - where they're talking about the Petroleum Agency of South Africa, Pasa, being tempered with. The national resources fall under one roof and that is the Department of Mineral Resources. So, I must stress that one cannot separate oil and gas from solid minerals.
The Advisory Council comes as a result of the necessary realignment in the industry. The realignment of Pasa is necessitated by the need to consolidate the regulation of petroleum resources under the auspices of the Department of Mineral Resources whilst the promotional and geoscience research aspects are vested with the Council for Geosciences. This integration will absorb specialist skills into the regulatory and technical function of the Department of Mineral Resources and Council for Geosciences respectively.
The existing functional and administrative dichotomy in the regulation of petroleum resources will be a thing of the past as the realignment of functions will enhance efficiency and stability. Because South Africa has got limited geoscientific resources, integrating related geoscientific research functions will allow for the optimal use of available capacity.
On the streamlined licensing process, I want these members to understand that to give effect to the principle of co-operative governance, the Department of Mineral Resources and the Department of Water and Environmental Affairs developed an integrated licensing regime for the granting of mining rights, issuing of water use licenses and approval of environmental authorisation.
This will lead to improved ease of doing business in South Africa's mining industry and create the regulatory certainty needed.
With regard to the application by invitation, you are crying foul on that issue too. This process is necessary to ensure sustainable, orderly and optimal development of mineral and petroleum resources. The Minister will consult - as you are crying about the Minister having unbridled discretion - all affected stakeholders when developing regulations relating to the process as well as terms and conditions for the new application system.
In his 2012 state of the nations address, President Zuma had this to say:
We remain committed to the creation of a favourable and globally competitive mining sector, and to promote the industry to attract investment and achieve both industrial growth and much-needed transformation.
Transformation is a scare word to the members on my left, and unfortunately it is going to happen. Underpinning that statement is a reality that well above the average resource base, far economic infrastructure and a high level of expertise are some of the factors that allow this country to flourish. The ANC supports the Bill. Thank you very much. [Applause.]
Madam Deputy Speaker, South Africa has always been a mineral- rich country. In apartheid, the economy was predominantly focused on gold and diamonds. This centralised the money in the pockets of the white minority. Today, we still see the legacy of that in the massive gaps between the rich and the poor. Contrary to what the DA is saying, it is important that government play a more integral role in this factor to rectify the injustices of the past.
Twenty years after democracy, we cannot have a situation where the white minority still controls the economy, land and natural resources. We must take heed of the fact that during the apartheid regime, the state had a direct influence on the mining sector which ensured that the wealth stayed in the hands of the white minority. Now, surely, the DA cannot be suffering from amnesia to know and understand that.
It is no small task to decentralise a mineral economy which was centred on white interests. The majority of the citizens of this country are still excluded from the benefits of our country's own natural resources. Of course, indeed, it is a mammoth task, however, to develop and manage these resources so that optimal value can be gained from it. The MF lauds the efforts of the Minister in striving to ensure that our resources are distributed amongst all our people and not just simply the white elite.
Firstly, we note that the Bill will allow the Minister to institute regulations which will achieve the above conditions. We welcome the authority given to the Minister to reserve key minerals for beneficiation. This will greatly stimulate the manufacturing sector of our economy. We cannot have a situation where our natural resources and minerals are exported just to buy them back as processed products at a much more ridiculous cost.
It is crucial to stimulate the sector as it contributes to solving the unemployment crisis. The state's right to a 20% free carried interest on all exploration and production rights is welcomed by the MF. This would mean that a portion of the production will go straight to the state in a form of a tax. It is another way to ensure that all our citizens benefit from our resources. The co-operation between the Department of Mineral Resources and the Department of Environmental Affairs in the mining sector is absolutely crucial, as it remains one of the biggest contributors to our economy, and indeed a big source of unemployment for skilled and unskilled workers. Therefore it is absolutely imperative for all of us to commit to build a vibrant rainbow nation based on the principles of equality for all, and give true meaning to the spirit of unity. The MF supports the Bill. I thank you. [Applause.]
Madam Deputy Speaker, the current amendments to the Minerals and Petroleum Resource Development Act, MPRDA, follow amendments to the Act which were passed in 2008 and signed into law only last year, five years after its passing. This indicates the level of indecisiveness and uncertainty of the ANC-led government, the Department of Mineral Resources, and more importantly, the President, in determining whether the decisions taken by this Parliament are beneficial to the mining industry and the South African economy.
Numerous concerns raised by many NGOs, mining houses and communities, as to the problematic impact of the Bill on the nascent oil and gas industry and the mining regime, were mostly ignored as was the case in 2005, with the passing of the Diamond Second Amendment Bill. This Bill caused thousands of job losses; the relocation of the sorting house of De Beers from London to Botswana, whilst it should have been relocated to South Africa, had this ANC-led government not rushed through that disastrous Bill.
Whilst the constitutionality of this Bill is questionable, it is the consequences of the Bill in the oil, gas and mining industry which is at stake. The South African petroleum, gas and oil organisation, whose members are multinational companies, in a statement on Monday, warned government of the negative impact this Bill will have on the industry. But to no avail. It has fallen on deaf ears as much of the ANC-led government decided to deliberately ignore diamond companies when they raised concerns in 2005, causing the Minister to recently acknowledge the failure of the State Diamond Trader and the negative consequences of the Bill. We find ourselves in the same position again.
To indicate the mala fides of this ANC government in its dealings, with regard to this Bill, it initially contained a clause which allowed for a 20% free carried interest - read free shareholding - as well as state entitlement to acquire, at fair market value, up to 20% shareholding of oil and gas companies. To the amazement of everyone - except of course the ANC members - this clause was hastily changed on Thursday night to allow this government to effectively nationalise oil and gas companies at any point in future as it changed the 20% capping on state entitlement to a 100% entitlement at an agreed price and not at fair market value as it read before. Except for the fact that the industry was not provided with an opportunity to comment on the ability of the state, through its entitlement to an unlimited share of private business ownership at a price which will inevitably be forced on them by government at a so-called agreed price, this clause does exactly what an expelled previous president of the ANC Youth League is attempting to do to gain entry to this Parliament, this time with the aide and assistance of the ANC. It seems that the ANC is turning into an Economic Freedom Fighters, EFF, lite party in fear of the Malemas of this world. [Applause.]
The unfettered discretion of the Minister to prescribe purchases, conditions for the allocation of the mineral rights and timeframes is in all probability contrary to the Constitution in that the Minister is allowed to rule by means of autocratic decision making without having to consider the advice of any other stakeholder. Despite considerable representation to the committee, the proposed amendments still fall short of requirements for consultation with the public in the process of granting rights as determined in the Bengwenyama Constitutional Court case. Most concerning, is the unfettered interference by the Minister in the realm and affairs of private businesses and decision-making to the extent that the Minister will be able to designate certain minerals which will be subjected to stringent conditions relating to exporting and pricing thereof.
The flawed consultation with stakeholders; the mala fides clearly displayed by the ANC in the committee; the more than 30 unbridled discretions awarded to the Minister; the nonexistence of substantive debate but rather a mere cacophony of agreement by ANC members; a committee report that deliberately does not reflect the DA's objections; the incorrect tabling of the Bill; and, more importantly, the unconstitutionality of certain provisions of the Bill, makes it impossible to support this Bill. Thank you very much. [Applause.]
Deputy Speaker, I have two things to say to the opposition: Firstly, we have debated this Bill for a very long time in the committee. Now, I am not surprised that other members of the opposition are raising the issues they are raising because they were not part of the deliberations. [Interjections.] Ordinarily, I would not expect them to understand what we are taking about.
Secondly, there is confusion in the DA. It seeks to represent certain sectors of blacks or Africans in this country, while at the same time they want to put the market on top of those people. They are saying to us in this House today that we should pass a Bill that will promote the interest of the market as opposed to the interest of the people on the ground.
As the ANC, we are sure that today is the second last day of all of us here in this House. Before we go on to full-scale campaigning for the renewal of the mandate received from the masses of our people in 2009. As we prepare to head home to our various constituencies, we note that where we are headed there are many who still have no jobs, no houses and lack basic amenities.
To some of us in this august House, some of the questions may be what we already have contended with in previous encounters with our people. We went door to door loud-hailing and engaged in stop-and-goes in order to explain to our people what the ANC has been doing in the Fourth Parliament.
We have outlined our successes, but we have also indicated where we could not perform well and gave reasons why. We told our people that there is a lot that still needs to be done and that the ANC requests our people not to lose hope. We have indicated to our people that they must advise us on where they believe improvement on our approach is needed and where they believe we need to change all together. This is because the ANC belongs to them and they must own it.
An overwhelming response that we received from the masses of our people is that they were inspired by your acknowledgement that there is much that still needs to be done, but are more than impressed by the good story the ANC is telling. I have been inspired by the welcoming mood of the people of our country and today again I am proud to be standing here to help continue telling a good story like the Minister has done. [Applause.]
Let me now speak about the debate and help to clarify to our people what the opposition in and outside of this House knows about the evolution of the mining industry in this country. This I must do because they will deliberately mislead our people with an intention to bankroll them into the coffers of visionless theories and ideologies.
Mining in South Africa creates over 500 000 direct jobs. It accounts for 18% of total national investment. It is responsible for well over 90% electricity generation and accounts for a third of the value of the Johannesburg Stock Exchange. I want us to determine if the latter points to instability or informs us of a stable industry that needs to be nurtured and used to develop the lives of the people of this country. The overall production of South Africa's mining industry recorded a growth of 12% by the end of 2013. Relative to the preceding here which reaffirms that government-led interventions including implementation of the Deputy President's Framework Agreement for a Sustainable Mining Industry in our country, in conjunction with key stakeholders in business and organised labour, have brought about restoration of stability and peace within the mining industry.
It is important that we note and always remember that, as we debate this matter today, the current labour instability is limited only to three platinum group metals, PGM, producing companies and should therefore not be misconstrued for being reflective of instability in the entire mining industry. In the three PGM producing companies, we are sure and confident that enduring solutions are imminent.
Let me rewind our thoughts for a while and take you back down memory lane. In 2002 when the Mineral and Petroleum Resources Development Amendment Bill was considered before Parliament, prophets of doom from the unpatriotic and cold opposition benches projected and insinuated that the Act will deter investment and mark the beginning of a short journey to the end of the mining industry.
They painted a picture of imminent volatility in the industry and projected the ANC-led alliance as a bunch of unwilling and uninterested visionless leaders who were hellbent on destroying the economy of the country. Remember that at that time the former President, Thabo Mbeki, was in charge when all this was said. Some of the members who are sitting on the left- hand side today were members of the ANC and were serving in this Parliament and were part of Cabinet. By then members of opposition parties opposed the Bill from all angles and brandished South Africa as a country in tears as a result of the ANC. Fast forward to 2004, the former presidents of the ANC were, according to Helen Zille and hon Lekota, who, by the way, are now in agreement with us today, the best - it is only the current President who is not the best.
Now, at that time they could have been members of the ANC, we may not know. That is why today their campaign slogan is that the ANC was better all along, it is not better now. Members of the ANC who are representing those who are outside know that every leader of the ANC has been better and that Jacob Zuma continues to lead the country on the correct path. [Applause.]
Empirical evidence, as opposed to rhetoric, points to the democratic government of the people of South Africa having created a predictable regulatory framework which is in sync with the dynamic socioeconomic and political landscape of our country as well as such international conventions as resolution 1803 of the United Nations of 1962.
An exposed analysis of the mining industry reveals that the latter has resulted in the following milestones: vested custodianship mineral rights to the state in order to, among others, facilitate an orderly development of the country's national resources and enable equitable access, especially for the historically disadvantaged South Africans; gross fixed capital formation has increased significantly under the Mineral and Petroleum Resources Development Amendment Bill from R18 billion in 2004 to R75 000 billion in 2012; foreign direct investment grew exponentially from R112 billion to R389 billion from 2004 to 2012 - if you need to verify this information you can go to the SA Reserve Bank; employment grew from approximately 448 909 in 2004 to 518 214 in 2012; gross sales of primary minerals have appreciated from R98,5 billion in 2000 to R379,7 billion in 2012, whilst the number of operating mines has increased from 993 in 2004 to 1579 in 2012. Now this is a good story I am talking about.
The people of this country want to hear this good story and you members of the opposition do not want them to hear it. The truth is that somebody should be in charge of such a viable and success-oriented sector aimed at national development. We are presenting to Parliament an Act that entrusts the Minister with the duty to regulate South Africa's mining, minerals and upstream petroleum industry through the Mineral and Petroleum Resources Development Amendment Bill.
The Act affords guided discretionary powers within the confines of the law to ensure the achievement of its object. There is no legislation in South Africa in particular and elsewhere in the world that does not confer a degree of discretion to the regulator to ensure the realisation of the objects of such legislation. Thank you, hon Speaker. [Applause.]
Deputy Speaker, as South Africa today, it shows that change is painful. Change is bitter, especially when you are stuck in the past. We are here today to talk about change in our country, a change which will change the lives of our people.
I must also say that this has been confirmed by the Canadian-based Fraser Institute which shows that as South Africa we are better than yesterday. We are on the right course when it comes to the minerals and petroleum industry in South Africa. May I also say, if you look at yourselves and your interests as the DA, hon Lorimer, [Interjections.] let me tell you, you do not represent the country, but the white racial minority of South Africa. You will never represent South Africa. You do not care about our people; you are not interested in change in South Africa. We are on the path of changing the mining and petroleum industry in South Africa, whether you like it or not. [Applause.]
Hon Huang, you've just come in and you decided to catch the last train. You are too late, we do not know you. You need to know this Parliament as well as change and transformation in South Africa better. You are stuck in the past, we are moving forward as South Africa.
I must say that this Act is about the people of South Africa. It is not about the few who are stuck in a way that does not take us forward. We have just come back from Canada, the Mineral and Petroleum Resources Development Amendment Bill has been accepted by international investors. You are stuck here because you do not know.
This industry has grown. The previous speaker indicated how the mining industry has performed. We have tripled the ownership of mines in this country. The new petroleum industry which we are going to start and the shale industry are going to grow. I must say to those who talk about nationalisation - you do not know what we have done in this country in 2002. As the state, the custodian of mineral rights, we vested the mineral resources of this country. That is what we have done. Therefore, we have opened up an opportunity which was not there in the past. I must say that, as we speak today, we are going to attract more investments in the interest of South Africans.
Change is bitter, stay where you are. Stay untransformed, unchanged, representing the minority as you do today. Come 7 May 2013, the ANC will be in charge. We will be ruling once more. There will be no change. You are stuck in the past, stay there. [Applause.]
Hlalani kwabafileyo. [Stay untransformed.] [Applause.]
Question put: That the Bill be read a second time.
The House divided.
AYES - 226: Abram, S; Adams, P E; Ainslie, A R; Bam-Mugwanya, V; Bapela, K O; Beukman, F; Bhengu, N R; Bhengu, F; Bhengu, P; Bhoola, R B; Bikani, F C; Bogopane-Zulu, H I; Bonhomme, T; Booi, M S; Borman, G M; Boshigo, D F; Botha, Y R; Botha, T; Bothman, S G; Burgess, C V; Carrim, Y I; Chikunga, L S; Chili, D O; Chiloane, T D; Chohan, F I; Coleman, E M; Cronin, J P; Cwele, S C; Dambuza, B N; Daniels, P N; Davies, R H; De Lange, J H; Diale, L N; Dikgacwi, M M; Dikobo, K J; Dlakude, D E; Dlamini, B O; Dlomo, B J; Dlulane, B N; Dubazana, Z S; Dube, M C; Duma, N M; Dunjwa, M L; Frolick, C T; Fubbs, J L; Gasebonwe, T M A; Gaum, A H; Gcume, N P; Gcwabaza, N E; Gelderblom, J P; Gigaba, K M N; Gina, N; Gololo, C L; Goqwana, M B; Gumede, D M; Hajaig, F; Holomisa, S P; Huang, S B; Jeffery, J H; Joemat-Pettersson, T M; Johnson, M; Kekana, C D; Kenye, T E; Khoarai, L P; Kholwane, S E; Khumalo, F E; Khunou, N P; Koornhof, G W; Kotsi, C M P; Kubayi, M T; Kwankwa, N L; Landers, L T; Lekgetho, G; Lesoma, R M M; Lishivha, T E; Luyenge, Z; Maake, J J; Mabasa, X; Mabedla, N R; Mabudafhasi, T R; Mabuza, M C; Madlala, N M; Madlopha, C Q; Magagula, V V; Magubane, E; Magwanishe, G; Makasi, X C; Makhubela-Mashele, L S; Makhubele, Z S; Makwetla, SP; Malale, M I; Malgas, H H; Maluleka, H P; Maluleke, J M; Manana, M C; Mandela, Z M D; Mangena, M S; Martins, B A D; Maserumule, F T; Mashigo, R M; Mashishi, A C; Masilo, J M; Mathale, C C; Mathebe, D H; Mathibela, N F; Matlanyane, H F; Matshoba, J M; Maunye, M M; Mavunda, D W; Mayatula, S M; Maziya, A M; Mbalula, F A; Mdakane, M R; Mfulo, A; Mfundisi, I S; Mgabadeli, H C; Mjobo, L N; Mkhize, H B; Mkhulusi, N N P; Mlambo, E M; Mlangeni, A; Mmusi, S G; Mnisi, N A; Mocumi, P A; Moepeng, J K; Mohai, S J; Mohale, M C; Mohorosi, M M; Mokoena, A D; Molebatsi, M A; Molewa, B E E; Moloi-Moropa, J C; Moloto, K A; Moss, L N; Motimele, M S; Motsepe, R M; Motshekga, M S; Mtshali, E; Mufamadi, T A; Mushwana, F F; Nchabeleng, M E; Ndebele, J S; Ndlazi, A Z; Ndude, H N; Nelson, W J; Nene, N M; Newhoudt- Druchen, W S; Ngcengwane, N D; Ngcobo, B T; Ngcobo, E N N; Ngonyama, L S; Ngubeni-Maluleka, J P; Ngwenya-Mabila, P C; Nhanha, M A; Nhlengethwa, D G; Njikelana, S J; Njobe, M A A; November, N T; Ntapane, S Z; Ntuli, B M; Nwamitwa-Shilubana, T L P; Nxesi, T W; Nxumalo, M D; Nyalungu, R E; Nyanda, S; Nyekemba, E; Nzimande, B E; Oliphant, M N; Oliphant, G G; Oosthuizen, G C; Pandor, G N M; Petersen Maduna, P; Phaahla, M J; Phaliso, M N; Pilane- Majake, M C C; Pilusa-Mosoane, M E; Plaatjie, S K; Pule, D D; Radebe, G S; Radebe, B A; Radebe, J T; Ramatlhodi, N A; Ramodibe, D M; Saal, G; Schneemann, G D; Segale-Diswai, M J; Sekgobela, P S; Selau, G J; September, C C; Shabangu, S; Sibanyoni, J B; Sibiya, D; Sindane, G S; Sisulu, M V; Sisulu, L N; Sithole, S C N; Sizani, P S; Skosana, J J; Sogoni, E M; Sonto, M R; Sosibo, J E; Sotyu, M M; Suka, L; Sulliman, E M; Sunduza, T B; Surty, M E; Swanepoel, D W; Thibedi, J D; Thobejane, S G; Tlake, M F; Tsebe, S R; Tseke, G K; Tshabalala, J; Tshwete, P; Tsotetsi, D R; Turok, B; Twala, N M; van Rooyen, D D ; van Wyk, A; Wayile, Z G; Williams-De Bruyn, S T; Xaba, P P; Xasa, T; Ximbi, D L; Yengeni, L E; Zulu, B Z.
NOES - 66: Alberts, A D; Berend, S R; Boinamo, G G; Bosman, L L; Coetzee, T W; de Goede, J; Dreyer, A M; Du Toit, N D; Dudley, C; Duncan, P C; Esau, S; Farrow, S B; Ferguson, B D; George, D T; Greyling, L W; Groenewald, P J; Hoosen, M H; Huang, C C; James, W G; Kalyan, S V; Kloppers-Lourens, J C; Kohler-Barnard, D; Kopane, S P; Krumbock, G R; Lamoela, H; Lorimer, J R B; Lotriet, A; Lovemore, A T; Marais, S J F; Marais, E J; Matiwane, N C; Maynier, D J; Mcintosh, G B D; Michael, N W A; Mileham, K J; Mokgalapa, S; More, E; Motau, S C; Mubu, K S; Mulder, C P; Mulder, P W A; Ollis, I M; Rabie, P J; Rodgers, F A; Sayedali-Shah, M R; Schafer, D A; Schmidt, H C; Shinn, M R; Smalle, J F; Smiles, D C; Smuts, M; Steenhuisen, J H; Steyn, A C; Steyn, A; Stubbe, D J; Swart, S N; Swart, M; Terblanche, J F; Van den Berg, N J; Van Der Linde, N J; Van Der Westhuizen, A P; Van Dyk, S M; Van Schalkwyk, H C; Waters, M; Watson, A; Wenger, M
Abstain - 8: Cebekhulu, R N; Makhuba, H N; Mpontshane, A M; Msimang, C T; Msweli, H S; Singh, N; Van Der Merwe, L L; Zikalala, C N Z.
Question agreed to.
Bill accordingly read a second time.