Chairperson, it's a pleasure to introduce the Second Reading debate on these two Bills. The Bills before us here deal with two of the three pillars of the national technical infrastructure that is normally the responsibility of government. A sound technical infrastructure plays a significant role in the economy in several ways, including by assisting firms to adopt and meet the quality standards necessary to compete in the global environment, and also by ensuring that low-quality, substandard imported goods do not undercut the productive base of our manufacturing sector. The purpose of the Measurement Units and Measurement Standards Bill is to provide for the establishment, powers and functions of a National Metrology Institute of South Africa, the NMISA, as a juristic person. The South African metrology system has been in existence for more than 60 years but, currently, metrology work is catered for through a metrology centre that reports to the Council for Scientific and Industrial Research at the CSIR campus.
The mandate of the National Metrology Institute, like the current National Metrology Laboratory, will be to provide for the use of measurement units of the international system of units and certain other measurement units for the designation of national measurement standards and for keeping and maintaining national measurement standards and units.
Metrology, which is the science of accurate measurement, forms a pivotal part of the technical infrastructure. To be credible internationally, the national measurement units and standards must be compatible with international measurement units and standards. There is an ever-increasing demand to demonstrate equivalence of national measurement systems in international trade transactions.
At home, accurate measurements are essential for health and safety as well as for the development of industrial capabilities. For instance, medical diagnostic tools such as X-ray machines, lasers and other instruments need to be accurately calibrated to ensure safe operation and reliable diagnosis. In addition, measurement accuracy plays a critical role in enabling firms to participate in value chains of advanced sectors such as the aerospace or nuclear industries.
The repositioning of the NMISA as an independent public entity will align its status with that of similar technical infrastructure institutions in other jurisdictions. The Bill provides for the NMISA to be governed through its own board of directors and for a consultative forum and relevant stakeholders that can advise the board on matters pertaining to metrology, and for formal co- operation agreements with the CSIR on matters that may be of mutual benefit and interest, especially with regard to new research fields that may require the development of new standards.
An independent status for the institute is necessary as metrology is the foundation of the technical infrastructure, and we need to demonstrate organisational independence equivalent to that of international peers.
The NMISA is also the most advanced metrology institute on the African continent and therefore has a critical role to play in uplifting regional and continental peer institutes. The international standing of our national institute is demonstrated through its membership of all but one of the technical consultative committees of the International Committee for Weights and Measures.
The NMISA is also a signatory of the Applicable Global Mutual Recognition Arrangement and this facilitates the international acceptance of South African measurements and certificates.
The purpose of the second Bill, the accreditation Bill, is to provide an internationally recognised and effective accreditation and good laboratory practice compliance monitoring system for South Africa by establishing the South African National Accreditation System, Sanas, as a public entity. Sanas will be recognised as the only accreditation body in South Africa for conformity assessment and calibration.
Accreditation forms a vital second pillar of our domestic technical infrastructure. Accreditation is the process by which an authoritative third party, in our case Sanas, formally recognises the technical competence of conformity assessment service providers such as laboratories, inspection bodies and certification institutions. Such conformity assessment service providers normally operate in a fiercely competitive environment. Accreditation therefore assists local customers of such services by setting norms for conformity assessment service providers based on demonstrated competence. It also allows for the acceptability of local conformity assessment service providers by confirming their ability to perform specific types of testing, measurement, certification and inspection against a published and specific schedule of accreditation. The credibility of Sanas as an accreditation body is thus of immense value to our economy in this regard.
Increasingly, accreditation is used by South African regulators to ensure both the competence and consistency of the outcome of service providers used in the local regulatory domain. The Department of Labour is a case in point. It has outsourced inspection services in relation to fire extinguishers and vessels under pressure and now uses Sanas accreditation to monitor the activity of its approved inspection service providers as part of managing the local regulatory risk.
The increasing demand by large European-based food retailers for compliance with their own food production and safety standards is another case in point. Sana's competence in the area of food standards has been recognised by several international food retailers. This means that in certain cases local suppliers can use Sanas accredited certification bodies to prove compliance with these standards. This ensures that local produce is shown to comply with these standards prior to exports, and prevents the costs and unnecessary waste that would be incurred if such activity could only be verified at the point of entry.
As is the case with the measurement Bill, one of the main purposes of the accreditation Bill is to change the corporate form of the current institution by establishing it as a public entity. Sanas was established by Cabinet decision in 1994 and currently operates as a non-profit organisation in terms of section 21 of the Companies Act.
The new identity for Sanas is provided for in the Bill, and it is required first to meet the requirements of the National Treasury to phase out section 21 companies as government agencies; second, to facilitate the use of accreditation by government departments, especially in support of conformity assessments in regulation, and third, to recognise Sanas as the only accreditation body in South Africa for conformity assessment and calibration.
The Bill will also support the prescription of impartiality by the International Laboratory Accreditation Co-operation and the International Accreditation Forum in order to maintain international recognition of the activities of Sanas. In terms of the Bill, Sanas will have its own board appointed by the Minister of Trade and Industry as well as an advisory forum that will ensure that stakeholder interests are communicated to and considered by the board.
The two Bills before us are therefore aimed at strengthening the South African technical infrastructure, and I have pleasure in calling for their support from the House. I thank you. [Applause.]