Deputy Chairperson, hon members and Chairperson of the NCOP, I wish to thank the Chairperson and members of the Select Committee on Security and Constitutional Affairs for the rigorous manner in which the Second-Hand Goods Bill was dealt with in the committee. It was mindful of the potential impact of the Bill on society.
The Bill before you has gone through a thorough process of coming into being, as drafts were first published for comment, after which consultations with the industry role-players took place. The resulting draft was tabled in Nedlac where it was supported.
When the Bill was tabled in the National Assembly, the Portfolio Committee on Safety and Security invited comments on the Bill and held public hearings where all stakeholders once again had the opportunity to express their views on the Bill and participate in the legislative process. I recognise that the Bill has taken some time to be shaped through the drafting stages and the legislative processes, but must at the same time impress upon you that the impact of this Bill is considerable and its formulation required the utmost care. The product is a user-friendly Bill that as a formidable crime combating tool will go a long way to protect the interests of law-abiding citizens and businesses alike.
The select committee of this House wisely decided to invite further comments and hold ad hoc public hearings, where stakeholders made significant presentations to the select committee. The select committee heard of the millions of rands involved in the recycling of controlled metals, such as copper, and also of the effect that the Bill will have on the second-hand book trade.
The process of public hearings was repeated in each of the provinces and the resultant provincial mandates produced sensible and important recommendations - recommendations that were robustly interrogated to produce the improvements to the Bill before this House. The select committee's proposals not only strengthen and enrich this Bill, but also serve as an indication of the true democratic nature of the legislative process where Parliament, in this case, was really taken to the people.
The Second-Hand Goods Bill, 2008, aims to regulate the business of dealers in second-hand goods, in order to combat the trade in stolen goods. Trade in stolen goods negatively affects the economy of South Africa, especially as the knock-on effects of the crimes addressed in the Bill are quite serious. Criminals often employ violent means to hijack vehicles and commit robberies, resulting in loss of life or serious injuries.
Theft of copper cable is a major cause of interruptions in the essential services rendered by Eskom, Telkom and Transnet, often resulting in power cuts, communication disruption and crucial transport stoppages, both in freight and passenger services. These significant economic losses are not only borne by business and government because the resulting price and tariff hikes eventually also affect the public.
The Bill intends to repeal the Second-Hand Goods Act, Act 23 of 1955, to update the present legislation - legislation that proved to be insufficient to police the trade in second-hand goods effectively - and to bring it in line with the Constitutional framework of South Africa.
This Bill provides for the registration of second-hand dealers and recyclers by the National Commissioner of the South African Police. The inclusion of recyclers in the registration process is a marked improvement on the current legislation, as unscrupulous recyclers play an important role in the marketplace to create a demand for stolen copper cable and other nonferrous metals.
Dealers must now apply to register each of the business premises on which they intend to carry on their businesses, and those dealers who contravene the Bill may be deregistered. The National Commissioner of the SAPS must deregister those dealers found guilty of offences and disqualify them as dealers or recyclers.
Solid arguments were presented to the select committee on some possibly discriminatory provisions regarding the disqualification of dealers and persons who have a financial interest in those dealers. The select committee responded with thorough deliberations, and the subsequent amendment improves upon that aspect of the Bill. The Bill now allows the National Commissioner to take all aspects regarding disqualifications into consideration and, when necessary, to condone disqualification.
Recommendations regarding second-hand books, second-hand clothing and the registration of charities were also discussed during the select committee's deliberations, and the subsequent amendments all contribute to simplifying the application of the Bill. These amendments focus the impact of the Bill on those industry segments where criminal activity is rife and policing is most needed.
Any administrative process in terms of the Bill that affects the rights of a person must be conducted in a manner consonant with the Promotion of Administrative Justice Act and procedures are prescribed in respect of the decision-making process.
The Bill requires registered dealers and recyclers to keep records of all second-hand goods dealt with. While the current Act also provides for such registers, the Bill improves upon the present situation by providing specifically for comprehensive record keeping where a dealer deals in motor vehicles or communication equipment such as cell phones. The records are not only invaluable to any investigating officer who needs to trace stolen goods, but also to the persons who need to ensure compliance with the Bill.
By dealing with communication equipment as a separate category of second- hand goods, the Bill complements the relevant provisions in the Regulation of Interception of Communications and Provision of Communication-related Information Act of 2002, to provide a comprehensive framework to stamp out crimes such as cell phone theft.
An important feature of the Bill is the obligation on dealers to report suspicious transactions to the police. Unscrupulous dealers will be prosecuted for those transactions where second-hand goods are acquired from less than respectable customers or where goods have obviously been tampered with by removing aspects of identification such as serial numbers or cable covers.
A new feature of the Bill that addresses a serious limitation in the current Act is the required registration of metal recyclers. The prohibition on the possession of recycling equipment by persons other than registered metal recyclers and the prohibition regarding the possession, purchase and sale of burnt copper cable will tackle one of the biggest shortcomings experienced in the policing of the industry.
The Bill addresses compliance monitoring effectively by providing for the accreditation of industry associations representing dealers. By allowing accredited dealers' associations to represent dealers, the Bill introduces a measure of self-regulation absent from the current Act. This new feature empowers associations to monitor their members' compliance with the provisions of the Bill, through regular inspections and interaction with the SAPS. Even though the Bill can be implemented without the aspects of self-regulation it introduces, it also recognises the important contribution that these associations can make through the promotion of proper ethical and other standards in the industry.
Accredited associations will furthermore strengthen the role of the SAPS by providing the expertise that exists in the organised industry by, for example, recommending the applications of their members. It is a fact that some sectors of the industry are highly specialised, necessitating support from the organised industry. To ensure that the associations play a positive part in combating crime, the Bill tasks associations to establish minimum legal and ethical standards and to maintain those standards through inspections. Members of accredited associations may be exempted from certain provisions of the Bill in cases where the associations prescribe to their members standards which fulfil the requirements of the Bill and where the spirit and principles of the Bill are guaranteed.
On the enforcement side, the Bill draws a distinction between routine police inspections and criminal investigations. The Bill provides that a comprehensive inspection must be performed by the SAPS at least once a year at each dealer, but that further routine inspections may be performed during business hours.
Where, however, criminal activity is suspected and needs to be investigated, the Bill aligns the powers of search and seizure with those in the Criminal Procedure Act of 1977, thereby ensuring that police powers comply with constitutional requirements. It is noteworthy that the Bill introduces a new feature in that the SAPS are able to obtain a warrant authorising them to seal off a business for purposes of an investigation, where necessary, thereby ensuring effective investigations.
A new feature of the Bill that introduces the principle of co-operative governance is the power of the National Commissioner to delegate in writing any functions conferred upon him or her by the Bill to any official in the service of the state or employed by a statutory body. An official to whom a function has been so delegated, must obviously perform the functions subject to the control and directions of the National Commissioner. This aspect will contribute to effective and co-ordinated law enforcement in policing the industry.
The Bill provides for regulations that the Minister of Safety and Security may make. These regulations may be crafted to provide for the unique requirements of each industry sector, and it is envisaged that the regulations will dovetail with the prescribed minimum standards of the associations.
I believe that the Bill creates a framework to serve as a platform for co- operation between government and the industry. I therefore repeat our appeal to the industry made in the NA on 19 March 2008, to organise itself into associations which can be accredited, and to participate in developing appropriate standards in respect of each industry segment.
Chairperson, I submit the Second-Hand Goods Bill, as amended by the portfolio committee, for acceptance. I thank you.