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.