Let us just look at some of the issues around transfer pricing. Of course, there is legal transfer pricing. There's also illegal transfer pricing. One thing we do know, however, is that it has compromised compliance with the Mining Charter.
We also know that there have been little mistakes in legislation, such as when we wanted to transform it and bring about black ownership and broaden the base. We simply said we needed to have ownership and ownership had to be transformed. It had to be given over to, if you like, the broad-based black economic community. However, there was something we didn't say. We left out one word, and that word was "encumbered".
So, what we allowed is for ownership to be passed along to black people in an encumbered manner. This would be in the same way as if you owned a house and said, "This is my house," and you invited your friends to your house. [Interjections.] However, it's not your house. It belongs to the bank. Why does it belong to the bank? It's because you haven't yet paid off your mortgage. You haven't yet paid off the loan. [Interjections.]
So, what we're saying is that the Broad-Based Black Economic Empowerment Act, with all of its codes, must be implemented, Minister. It must be implemented vigorously, to ensure this transformation takes place. [Interjections.]
The other issue that we want to point out about the purpose of the colloquium, etc, is that we were aware that value addition was important not only to minerals, but also to agriculture and to forestry, which one of my colleagues will talk about.
With respect to agriculture, there are many innovative ways in which we can take jobs to the rural areas. We received a very interesting presentation on essential oils. One is able to take these essential oils into a very rural area at very low cost. It doesn't cost very much to transport the value-added product out, because a very small amount of that product costs a great deal.
I know that some of you have taken the trouble to study the committee report. In it you will see examples in connection with titanium value- addition. You will see examples of how we can add value in the mining sector and in forestry. What we must add is this. One of the main recommendations here, which the committee passed and which the DA refused to agree to, is reviewing, in consultation with other Ministries, the legislation and regulatory environment that reinforces Ipap's objective in pursuit of a developmental price. They objected to that. They didn't want the House to consider that in support of downstream industries. They don't want a development price.
The ANC supports the recommendations in this report. [Time expired.]