Thank you, Madam Chairperson. When the White Paper on Postal Policy was passed in 1998, it was recognised that the Postbank, as an institution, would play an important role in satisfying the saving needs of the rural and underserviced communities in our country.
The Bill before you seeks to establish the Postbank as a subsidiary of the SA Post Office, which will provide a range of services to the majority of our citizens without any of the hurdles they would be experience at a commercial bank.
The Postbank will be restructured to accommodate the developmental goals of the state. It is therefore the objective of this Bill before you to create a bank of first choice for the lower income groups, providing them with appropriate banking products and high-quality services.
As a bank of first choice to the rural and marginalised communities, it will enable our people to access banking services, previously out of reach to many. In time, it will expand its financial services. It will do so, however, only after the Minister of Communications, in concurrence with the Minister of Finance, agree with the need for such expansion.
This will also significantly strengthen our efforts to inculcate a culture of saving and stimulate socioeconomic development, particularly in the rural areas. The primary aim is to provide financial services to communities within the proximity of their dwellings.
The tabling of the South African Postbank Bill in this House is a step in realising this vision. In this regard, the main purpose of the Bill is to corporatise the Postbank, which is currently a division of the Post Office. It will utilise the infrastructure and facilities of the SA Post Office. The post office has a large footprint, covering over 70% of the country, thus enabling the possible spread of the services the Postbank will provide.
The Postbank, as a company, will be managed by its own board with all the required corporate governance requirements and all mechanisms that will ensure accountability. The details on the implementation and capacity of the board plan will be directed by ministerial policy. A memorandum of understanding will be developed between the Department of Communications and the SA Post Office soon after the Bill is promulgated.
Importantly, the Postbank will be brought within the ambit of the financial and banking regulatory environment, as regulated by the Registrar of Banks. The Postbank will become a key player in the promotion of universal and affordable access to banking services. It will ensure that the rates and charges of the Postbank take into consideration the needs of the people in the lower income group.
The approval of this Bill will break new ground in creating a financial institution that communities will identify with by virtue of its location in underserviced areas. This Bill provides for the Minister of Communications to exercise oversight in cases that require Treasury intervention. The concurrence of the Minister of Finance is required. I have no doubt that the passing of this Bill will bring much relief and excitement to the marginalised citizens of this country.
In conclusion, I want to state that the Bill has been thoroughly consulted on by the working committee, comprising the Department of Communications, the National Treasury, the Reserve Bank and the SA Post Office, during the public consultations in all nine provinces. The Portfolio Committee on Communications also played a key role in the refinement of the Bill.
I want to thank the chairperson of the Portfolio Committee on Communications, Mr Ishmael Vadi, and members of the committee who had marathon meetings in considering the Bill. Finally, I wish to recognise the able support of the Deputy Minister of Communications, Ms Dina Pule. I also wish to thank the senior management of the Department of Communications and my staff for the effort they put into ensuring the drafting and finalisation of this Bill. I thank you for allowing me to introduce this Bill and look forward to its speedy passage through this House. Thank you. [Applause.]