Chair, hon Minister, guests in the gallery, ladies and gentlemen, every country in the world today depends on science and technology for economic growth and progress. South Africa is no exception.
Some years ago the Department of Science and Technology was strongly promoting a National Research and Technology Foresight project. Its aim was to identify emerging technologies, and the market opportunities that go with them, that would be beneficial to South Africa. To identify what these emerging technologies were going to be, four macro scenarios, of which the Frozen Revolution and the Innovation Hub are two examples, were developed and investigated to create opportunities in 12 sectors.
The Minister will agree with me that year after year, through various strategic projects, over R7 billion was wasted on the Pebble Bed Modular Reactor project. No audit followed. Two years ago, the Minister was in a celebratory mood after the electric car, the Joule, was showcased at the Paris Motor Show. Now we hear, not from the department, but via the Portfolio Committee on Science and Technology, that after substantial expenditure, the project has been shelved. Where public money is used, there has to be accountability to Parliament. This is a constitutional obligation. A full audit needs to be presented on this project.
In the USA, the government allows a $4 000 tax credit for the purchase of an electric car. An initiative by US Senator Debbie Stabenow recently saw the introduction of the US Charging America Forward Act, which will allow the tax credit to become an instant cash rebate of up to $7 500 for buyers of plug-in electric vehicles. What an incentive this is for buyers of electric cars! Imagine buyers of the Joule being exempted from VAT and other taxes for the first two years of manufacture. That is a real incentive.
Countries like China, Japan and a host of European countries are also offering incentives to buyers to propel the electric car industry. Why is South Africa not creating a similar incentive model for the Joule? In Europe, the Airbus industry showed the value of several countries getting together to build an Airbus. Did South Africa explore the creation of a multinational African consortium to capitalise on the Joule and bring it to market? If not, why not? Also, did government explore the possibility of encouraging the company to take at least 10 000 forward orders from clients, here and elsewhere in the world, at predetermined and discounted prices, to allow the industry to be kick-started? After all, the car won huge admiration at the Paris Motor Show. Dropping the Joule at the very moment that other countries are jostling to be at the front line is short- sighted. The era of the electric car has dawned!
Innovative business solutions must be found so that the Joule can be produced as a viable business. Throwing money at a proposition is not the only option available to government. South Africa's big businesses are sitting on a mountain of R50 billion - surely government can facilitate a deal with them? This is a matter that must not drop off the table. The Minister must keep Parliament and the nation fully informed on developments regarding this matter.
Another phenomenal development is the emergence of Thailand and India's three-wheel mode of transport called the Tuk-Tuk, which could revolutionise transport systems in poor and developing countries. Has the government even started to place this item on its agenda of innovation?
It is a proven fact that poor people can improve their livelihoods by having Internet access and some information and computer technology, or ICT, knowledge. In this regard, what has happened to government's promises to erect Internet kiosks in every township to bring Internet usage to the people? Has government conveniently pushed this off the table?
Several international companies have laid undersea cables all around South Africa to reduce the cost of Internet usage and provide wider and cheaper bandwidth. Companies such as Pick 'n Pay and others offered their bandwidth after hours to allow for free Internet. Did government take up this offer? The desire to link these technological developments with relevant strategies seems to be lacking in our country's economic development. Manufacturing in South Africa has been declining for over a decade. The country is lagging behind international progress in this regard. Of late, reverse engineering has emerged as a new form of innovation in manufacturing processes and South Africa needs to explore this area.
Our science and technology is not backing up agriculture, mining, manufacturing, education and governance to the extent that it should. In Cope we value science and technology very highly. We hope that the SKA will come to South Africa and we hope that science and technology will not operate in isolation from the people but to their benefit. Science and technology must come out of their silos. A paradigm shift is needed, backed up by frequent progress reports and audits.
In conclusion, the Minister must be congratulated for her efforts in encouraging innovation and the change in leadership of the department and its associated programmes. [Applause.]