House Chairperson, new tender rules will boost key industries. Key to the ANC government's agenda is ensuring that state-led industrial policy leads to the transformation of the economy. We therefore take note of the progressive steps taken in this regard with the announcement of the new preferential procurement regulations which come into effect on 7 December 2011.
In essence, this will allow companies with broad-based black economic empowerment ownership to score extra points when bidding for government procurement contracts. The goal is to promote black economic empowerment and ensure that the state sources a maximum of supplies and services from local companies, without compromising competitiveness.
The reform extends preferential procurement rules to major public entities, such as Eskom, Transnet, the Development Bank of Southern Africa, the Commission for Conciliation, Mediation and Arbitration, and all their subsidiaries. The new regulations will also apply to all national and provincial government business enterprises, ranging from Khula Enterprises to regional water boards and development zones. Thank you. [Time expired.] [Applause.]