Chairperson, I want to start by commending the hon Mabasa for calling this debate. I think he demonstrated, even here at the podium, his passion for this subject, and I think his passion is well-directed.
A number of members who participated in the debate have already indicated that the essential defining characteristic of a co-operative is not the size of the enterprise; it can be big or small in some cases or places. For example, the Mondragn in Spain and the largest bank in Cyprus are co- operatives. There are some sizeable co-operatives even here on the African continent. For example, operating in the agro-processing sector is Kenya, as has already been mentioned.
The essential defining feature of co-operatives is that they are collective enterprises based on the principles of economic solidarity. But because they are that, they are also a very important tool for bringing people who have some entrepreneurial capacity, but have very few resources and very little to bring to an individual enterprise. It can bring them into the productive economy. That's why I think co-operatives are so important, because people who are able to pool the few resources that they have often get a bigger bang for their buck.
Historically, co-operatives have also been in a number of cases, including, for example, Kenya, a way in which people who are operating in particular industries or sectors of agriculture can begin to rise up the value chain by also becoming involved in organisations of agro-processesing linked to agriculture. That's why co-operatives are particularly important for us.
In fact, hon Swart, we have a number of tools built into the small enterprise finance agency, drawing on the SA Apex Fund, which was amalgamated into it. This provides windows for micro loans for small projects, and I think it was built on the philosophy and understanding of Professor Muhammad Yunus and the Graneem Bank. I think that we give particular focus and attention to co-operatives for the reasons that I have been mentioning.
Now, I don't know which planet hon Ngonyama inhabits, for two reasons. He gave a picture that the co-operative programme was particularly vibrant under the previous administration; the administration that has fallen off. The figures just don't bear this out. We have a co-operative incentive scheme which is operating under our department. In fact, between the financial years 2011-12 and 2012-13, we have doubled the impact of that. We spent R35,8 million to support 144 projects in 2011-12 and we increased that to R78 million to support 287 projects in 2012-13.
So, we have been steadily increasing the support the central government, the Department of Trade and Industry, has been offering to co-operatives. That has been matched by programmes in a number of provinces, particularly in KwaZulu-Natal, this time under the ANC provincial administration.
That's what has been happening in the country. But I think we've come to the conclusion that that is not enough. We actually need to find a platform to increase the presence and role of co-operatives in our country. It is for that reason that we introduced the Co-operatives Amendment Bill in the National Assembly in November last year.
With the creation of co-operatives, specific institutions, such as the co- operatives development agency, will be an agency that focuses on co- operatives, will not treat them as just a subset or small business. We have also put in place in that Bill that there will be a co-operative tribunal to deal with disputes that take place within and between co-operatives and find solutions to disputes which have very often in all kinds of places been the death knell of co-operatives.
We then put in place, together with the Department of Higher Education and Training, a co-operatives academy to train people in how to operate a co- operative. That Bill went through the National Assembly in November last year. It has been agreed to by the select committee in the NCOP. I have been informed that it would appear before the plenary of the NCOP in due course. We hope that that is not too long delayed. Then we can move ahead, once the Bill has been signed into law, with the establishment of those agencies, which will provide us with a sustainable platform to increase our support as government for co-operatives.
We are also interested in exploring the possibility that we can change local procurement systems so that we don't have to go through the normal formal tender processes, but build direct relationships, as was mentioned by some of the speakers; for example, the provision of school meals by local co-operatives. We are looking at those kinds of opportunities for co- operatives. In general terms we are looking at significantly and substantially increasing support to co-operatives.
This debate is not just about co-operatives. So let me just say as well that we have been steadily rolling out the nonfinancial support programme, which the Small Enterprise Development Agency, Seda, operates to support and achieve viable enterprise development across the country.
This morning, I was at the launch of the Seda Atlantis Renewable Energy Business Incubator, called Sarebi, out in Atlantis. Then we went to cut the ribbon at the Enterprise Development Centre in Khayelitsha. These are examples where Seda has been involved in very specific programmes in this province. The Seda incubator is all about rolling out incubators so that we can train people to become productive entrepreneurs in the real economy. You don't just become a business person in renewable energy merely by wishing it. You actually have to learn something about it; you have to start to develop a business model; and you have to get training and mentoring. The incubator is to provide precisely that kind of support. We have been focusing on that because we think that incubator programmes are programmes which are some of the most productive ways that we can support small businesses.
We have 32 incubators that have been rolled out by Seda to support programmes. Another 10 will be added this year, bringing the total to 42. We are also seeking partnership with and the support of business entities. We are using the facilities provided under the incubator support programme, where we offer a fifty-fifty grant with a maximum of R10 million over three years to support incubators which are operated by private players.
We are tweaking the black economic empowerment scorecards. Therefore we are saying that people must now start to score points in the area of supplier development so that we can build symbiotic relationships between big and small business suppliers and create many more opportunities, not just through the procurement system in government, but also in new relationships between big and small businesses. These are things we are moving towards achieving.
In fact, in the enterprise development centres, we have spent R10 million of our own budget to take up a programme which used to exist here in the Western Cape called the Red Door. It was started by the previous administration, but this administration has chosen not to go ahead with it. We then picked up the slack to make sure that small business people in this province can also have access to those services. This year, as the national Department of Trade and Industry, we will spend R13 million on supporting those incubators in this particular province of the Western Cape.
I just want to say just one more thing. I nearly fell off my chair when I heard the hon Smuts Ngonyama telling us to throw stones at BEE. He was saying that BEE had interfered with relations between big and small co- operatives. I think, honestly, some members ought to be a little modest when they throw stones like these because when he was talking about BEE there was a massive "elephant consortium" sitting in the room. [Laughter.]
I think with those remarks, let me then once again thank the hon Mabasa for launching this debate. This is an important subject and something that we, in the Department of Trade and Industry, remain seized with. Thank you.