Hon House Chairman, in spite of the very valuable amendments made by the committee, we have very strong reservations about this Bill. As the hon Mufamadi indicated, this Bill is about to be passed in a rush, or rather in a short time, and that is to comply with what has become an international standard. In our opinion, there has not been sufficient assessment of our national interests in complying with that international standard, or at least in complying as fast as we are doing, rather than delaying for a little longer.
The harsh fact is that if one looks at all the countries that have adopted similar legislation, within a matter of months before or after the adoption of that legislation, they had their sovereign debt downgraded, as happened in South Africa a few weeks ago. Why? It is because this piece of legislation creates a liability on the credit rating agencies in giving an opinion and controls opinion-making. If that opinion turns out to be wrong, they are liable at the corporate level. This therefore forces credit rating agencies to be conservative.
What has not been adjusted on the other side of the equation is the extensive regulation which requires regulated investment agencies and funds to only purchase triple-A paper. So, we have a situation in which the one Bill forces the downgrading while the existing legislation maintains a standard that will become increasingly difficult for both institutional and private investors to meet. This will create another contraction within the market and the continuing possibility of further reduction within the financial markets. We thought it would have been more appropriate to have the legislation ready and to wait for further developments, delaying a few months - perhaps a year - to take full advantage of South Africa continuing to have triple A-rated sovereign bonds. [Time expired.] Thank you.