Hon Chairperson, hon members, Ministers and Deputy Ministers present, the Director-General of the Department of Communications and her team, it is indeed a privilege to speak in support of the South African Post Office State-Owned Company Ltd Bill. Once passed, the Bill will give effect to the implementation of the 1998 White Paper on Postal Policy. The 1998 White Paper on Postal Policy was a thorough, well-thought- through policy document. While it has stood the test of time, its review is unavoidable.
Information and communication technologies, ICTs, and postal services enhance the efficiency of small, medium and micro enterprises, SMMEs, reduce costs and broaden market reach, both locally and globally. Since SMMEs play a major role in national economies, such benefits to them may collectively translate into positive results in the form of job creation, revenue generation and overall country competitiveness.
The South African Post Office SOC Ltd Bill will address the logistical challenges of our people living in underdeveloped areas, improve competitiveness and overcome the spatial patterns of apartheid. At the same time, it will lead to direct employment in construction operations, as a result of the need for tellers, maintenance and e-services. In this way the government will have addressed the social equity goals and ICT inequalities that exist in our society.
Access to basic postal services is the right of all South Africans. The South African Constitution demands that certain criteria influence the formation of service delivery to enhance basic human rights. Accordingly, a universal postal service suggests that all citizens, regardless of race or gender, shall have equal access to basic postal services. The universal service obligation, USO, is placed on the monopoly provider to ensure such access, as well as rebalancing the postal network for equity, improvement of scale, scope and quality of service, and the elimination of cost inefficiencies.
When presenting its strategic plan before the Portfolio Committee on Communications earlier this year, the Post Office raised a concern about the government subsidy, which comes to an end, and the implication this has for the ability of the Post Office to expand its infrastructure in general but particularly in rural areas. This is a matter that needs the attention of both the board and the Department of Communications.
Today, telecommunications and electronic communications provide easier and quicker means of keeping in touch. To a certain extent, such new technologies are serving as substitutes for postal communications and, in turn, diminish the importance of the social function of postal services. There is no doubt in my mind, as I stand here, that post offices throughout the world need to redefine their existence and undergo radical change or transformation. Oh my, I see the word "bandage" and I am wearing one too! The time for "bandage solutions" has gone and it is time for major surgery. I do not know what is wrong with "bandage" today. [Laughter.] Anyway, I will continue. [Interjections.]
For the Post Office to achieve the above, it needs to evolve in a way that assists in the economic development of the country. It is important that postal networks should link each and every citizen in the country to a service that they need or use. Like other communications infrastructure, postal networks will allow the flow of goods, services and payments between economic agents. An efficient postal network can therefore significantly reduce transaction costs across the economy, forge markets where they did not exist before and support knowledge transfer between agents that allow innovation and growth.
We are mindful that, as we debate this Bill, elsewhere in the world, particularly in the United States, the opposite is happening. They are rolling back post offices which they had rolled out to rural areas because of the argument that post offices do not make a profit. However, as a country, we are clear that here in South Africa that is not the way to go. We have to make sure that government intervenes in unprofitable post offices to ensure their continued existence, so that people in the rural areas can indeed benefit.
In May 2011, it was exactly 13 years since the White Paper on Postal Policy was adopted. Today, by passing this Bill, we will give effect to the third and last phase of the restructuring process within the Post Office. As they say, when one door closes, another one opens. Policy review will be required to put the Post Office in a better position to confront the ever- changing environment in the ICT sector.
I must take this opportunity to thank all the political parties in the portfolio committee, the Department of Communications, led by the director- general, and those officials who were dedicated to dealing with this Bill. I must also extend my appreciation to the state law advisers and the legal services of Parliament for the good work they have done.
I must further indicate that I appreciate the good co-operation which I received from the other political parties involved in the Bill and in the committee. I hope that such good work and co-operation will continue in other endeavours which the committee will be facing. Therefore, I commend the Bill to this House for adoption. [Applause.]