EPD 19 May 2005 PAGE 1 of 204 THURSDAY, 19 MAY 2005 ____ PROCEEDINGS OF EXTENDED PUBLIC COMMITTEE – OLD ASSEMBLY CHAMBER ____ Members of the Extended Public Committee met in the Old Assembly Chamber at 14:45. House Chairperson Mr N P Nhleko, as Chairperson, took the Chair. ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000. APPROPRIATION BILL Debate on Vote No 30 – Minerals and Energy: The MINISTER OF MINERALS AND ENERGY: Chairperson, hon members, our guests in the gallery, my colleagues from the Department of Minerals and Energy, it is instructive that we present our budget at a time when we are celebrating the EPD 19 May 2005 PAGE 2 of 204 50th anniversary of the Freedom Charter, the evergreen blueprint that guided us during the struggle against apartheid and continues to be our lodestar in our efforts to rid our society of the vestiges of this horrendous system. I would like to quote ex-president Mandela, who said in 1994: If freedom was the crown which the fighters for liberation sought to place on the head of mother Africa, let the upliftment, the happiness, prosperity and comfort of her children be the jewel of the crown. It was the same ideals that inspired our forebears in Kliptown 50 years ago to declare that the people shall govern and that the wealth of the country shall be shared by all. EPD 19 May 2005 PAGE 3 of 204 In response to this clarion call, the government of South Africa has ensured that the quest for the upliftment of our people, their prosperity and comfort remained at the centre of its policies and programmes since 1994. It is my honour and privilege to present to this House the contribution of my department towards the realisation of the aspirations of the mothers and fathers of the Freedom Charter. For the 2004-05 financial year, the Department of Minerals and Energy has received a budget of R1,945 billion. Of the total budget, R1,9 billion, that is 82% of the budget, was allocated as transfers and subsidies to public entities and municipalities, leaving the Department with a net budget – oh, shame! - of R360 million. Compensation of employees amounts to R194 million, which accounts for 54%; goods and services were allocated R156 million, which accounts for 43%; and the remaining 3% was allocated for capital assets and R18 million for other financial transactions. EPD 19 May 2005 PAGE 4 of 204 The department has managed to spend 98% of our budget on compensation of employees, 85% of the budget on goods and services, and 96% of the budget has been allocated to public entities and municipalities. The issue of postretirement medical-aid liability remains a major problem for some of our public entities. On 31 March 2005, the SA Nuclear Energy Corporation, Necsa, and the National Nuclear Regulator, NNR, for instance, had liabilities of R206 million and R22,7 million on their respective balance sheets. These liabilities could technically render these institutions virtually insolvent. This is an issue for which we need to find a solution. Now I turn to the work we have done in the area of energy. Our energy policy is based on the following key objectives: attaining universal access to energy by 2014; accessible, affordable and reliable energy especially for the poor; diversifying primary energy sources and reducing dependency on coal; good governance, which must also facilitate and encourage private-sector investment in the EPD 19 May 2005 PAGE 5 of 204 energy sector; as well as environmentally responsible energy provision. Progress has been made with regard to the above objectives, but we also have challenges. We have continued to progress on the electrification programme, although we have slowed down as we began to electrify the sparsely populated areas. We used to carry out 800 connections a day, and now we carry out 635. Access to electricity is now at 71%. We have advanced the plans for the establishment of the National Energy Regulator of SA, NERSA, which will replace the National Electricity Regulator and will also regulate the gas and petroleum pipelines. We are ready to establish an energy research institute. The Department of Minerals and Energy and the Department of Science and Technology are working together to recruit a CEO and put a board in place. EPD 19 May 2005 PAGE 6 of 204 The liquid-petroleum industry, co-operating with us, has begun to roll out LPG in poor households on a pilot basis. South Africa will also host the world petroleum congress in September this year, and this will be happening on our continent for the first time. The clean-fuels policy in the area of petroleum is also set to begin next year, and we thank the oil companies for their co-operation in this regard. We are ready to hand over free basic electricity policy implementation to the Department of Provincial and Local Government, having identified barriers and some of the solutions to the implementation programme. The intervention that the DME focuses on has added 3,5 million qualifying recipients to the programme, and much more needs to be done so that more recipients can come on board. We have an energy efficiency strategy, which sets targets that are to be achieved by 2014. We have also started in EPD 19 May 2005 PAGE 7 of 204 earnest with the procurement programme to procure generation capacity, and Eskom will bring to production 3 000 megawatts from mothballed power stations. The DME is busy with the tender process for the procurement of 1 000 megawatts through independent power producers, which should be commissioned in 2008. The first regional electricity distributor will be established in July, as announced by the President, and this will happen here in Cape Town. Again, we thank them for the sterling work that they have done. The designated national authority will be launched at the end of this month, and seven projects have been identified. In that programme we will facilitate the trade in carbon, which will ensure that we see many more projects in South Africa that contribute towards cleaner, renewable energy. All the oil companies have engaged BEE partners, except Sasol, which has yet to make progress. Sasol also needs to tackle issues of transformation in that company. We welcome the new CEO of that company, but we also would EPD 19 May 2005 PAGE 8 of 204 like him to take cognisance of the challenges that company is facing in relation to transformation. Our energy sector is faced with some challenges, as I have indicated, and one of those is the escalating oil price. South Africa spends 15% of its total import bill on oil imports. The determination of the price at which we buy crude oil is out of our hands, because South Africa is an importing country. The price of oil has a significant impact on the economy. The strong Rand has helped to mitigate the impact of the oil price because this, as we all know, has an impact throughout our economy. PetroSA, our state oil company, has been busy on three fronts: securing additional oil blocks in Africa, finding additional gas supplies and developing a new gas-toliquids technology that may one day make a major contribution in this area. This new gas-to-liquids technology and its oil partnership in Africa gives PetroSA a strategic geo-political importance in the field of gas. EPD 19 May 2005 PAGE 9 of 204 I move to fuel efficiency. May is energy efficiency month. Fuel efficiency is an important part of this. The Department of Minerals and Energy has been giving tips to the public on what we need to do in order to save energy. These tips have great potential to save money, and an amount of R7,5 billion per annum could be saved if these tips were applied by South African motorists. And I would like to urge motorists to heed them, bangalokhu bezokhala lapha kimi, ukuthi uphethroli uyabiza [and stop complaining to me that the petrol price is too high]. In South Africa we have a history of overcapacity as far as electricity is concerned, which has made power in South Africa much cheaper and more reliable. I think most of us in this House, as far as we can remember, are used to living in an environment where there was this overcapacity of electricity. Electricity has been a contributor to our economic growth and service delivery to the poor. During energy efficiency month, as we recognise that we need to address the issue of efficiency, we announce the strategy for energy efficiency. It aims to reduce the EPD 19 May 2005 PAGE 10 of 204 energy demand by 15% by 2015, and we believe that this can be done. Already, Eskom was able to exceed their energy efficiency targets last year. Municipalities are also implementing their own programmes on energy efficiency. The industry has also come to the party. Already about 30 companies have signed an accord with us in terms of which they will be implementing their own energy efficiency programmes. These include mining companies, manufacturers of appliances, energy companies and banks. Again, I thank those companies for their patriotism. We have also undertaken an appliance-labelling campaign in order to assist households to be more energy efficient. We therefore ask you, the consumer, that when you buy appliances in future, you first find out the energy efficiency level of the particular appliance you are buying. We’ve started with refrigerators, and again I thank the appliance manufacturers for their contribution and co-operation. EPD 19 May 2005 PAGE 11 of 204 We will also be carrying out energy efficiency audits as government, and we are co-operating in that respect with the Department of Public Works. Already, in the work that we did last year retrofitting government buildings, we have saved government R600 million in electricity bills. I want to state this once again: There is no generation capacity crisis in South Africa. The diminishing capacity is underpinned by a plan to replace it, and we will be able to do so timeously. To secure our future, South Africa is pursuing a policy of diversifying energy sources, and no energy source will be discriminated against. The higher the contribution of an energy source in our energy mix and the greater the security of supply, the more we are likely to support and invest in the development of that energy source. In that regard, nuclear energy is here to stay, as is renewable energy. EPD 19 May 2005 PAGE 12 of 204 Renewable energy is important to us because of its contribution to the reduction of greenhouse gas emissions. Nuclear energy is important because it is a clean energy and also supplies us with security of supply. We have continued to focus on improving nuclear safety and governance of the nuclear sector. We have published the nuclear waste management policy, and we would like to thank the members of the public who participated actively in the public hearings and for their comments. We hope that in August this year Cabinet will finally approve what we’ll submit to them. Uranium and coal are two raw materials that South Africa has in abundance for the potential generation of power, which can contribute, and are contributing, to provide us with energy security. We intend to use our uranium to support our growing nuclear industry. South Africa is at the forefront of developing high-temperature reactors in the form of a pebble-bed modular reactor, and for that reason we now declare uranium a protected mineral resource, in accordance with Section 49 of the Mineral and EPD 19 May 2005 PAGE 13 of 204 Petroleum Resources Development Act. We will announce a special dispensation for the licensing of uranium exploration, prospecting and mining. The price of uranium has more than doubled in the past two years, especially for countries that are beneficiating uranium. Again, this is an area in which we have an interest - as a country that is interested in beneficiating our minerals. We are also involved in the intensive training of nuclear scientists, and we thank the countries and companies that are assisting us. This year we are passing an energy Bill, and in this regard we will be able to promote and protect the use of renewable energy in our energy mix. A number of projects and initiatives are also under way at the Central Energy Fund, including the low-smoke fuel project, hydropower and bio-diesel. We are very grateful for the role that the CEF is playing in this regard, and I would like to thank the board and the staff for having approached this new task enthusiastically. We also welcome the new CEO at the CEF, Mr Mputhumi Damane. EPD 19 May 2005 PAGE 14 of 204 We would also like to bring greater usage of LPG to the South African public. Sithi kubahlali: Phantsi ngezitovu zeparafini ezinobungozi. AMALUNGU AHLONIPHEKILEYO: Phantsi! UMPHATHISWA WEZEZIMBIWA NAMANDLA: Heke, maqabane. [Kwahlekwa.] Sifuna ukuba abantu basebenzise izitovu zerhasi, ngoba zona zivutha ngokukhawuleza ukwenza ukupheka kube lula. Nizibonile zigcwele apha ngaphandle. [Uwele-wele.] Sifuna ukuba abantu bayeke ukusebenzi iiprayima ngoba ziwagqibile amatyotyombe, zitshisa nabantwana. Simaxhaphetshu ke ngoku sithetha neenkampani ezithintekayo ekuthengiseni irhasi ngokwehliswa kwexabiso lerhasi. Kananjalo sikwalijongile nexabiso lesinyithi kuba nalo EPD 19 May 2005 PAGE 15 of 204 liyalinyusa ixabiso lerhasi. (Translation of Xhosa paragraphs follows.) [We say to society: Down with paraffin stoves that are dangerous! HON MEMBERS: Down! THE MINISTER OF MINERALS AND ENERGY: That’s it, comrades! [Applause.] We want our people to use gas stoves, because they get hot quickly, so they make cooking easy. You have seen for yourselves - there are lots of them outside. [Interjections.] We want people to refrain from using primus stoves because they have destroyed shacks and they also burn children. We are now talking with the relevant companies that sell gas with regard to reducing the gas price. We are also looking EPD 19 May 2005 PAGE 16 of 204 at the gold price because it increases the value of the gas.] We want to see both the rich and the poor using LPG, especially for cooking and heating, so as to reduce the need for big investments in power generation. The LPG Association members, who are here – I think they are dominant in the gallery - have promised that they will connect 250 000 low-income households by March 2005 and a further 3 million by 2008. [Applause.] Ningaqale niqhwabe, kukho ingxaki encinci. [Kwahlekwa.] [Do not start applauding, there is a slight problem.] [Laughter.] They have not been able to meet the targets, owing to problems that we are trying to identify and solve with them. One of the problems we face is the cost of LPG itself, as well as the cost of cylinders. As far as the cylinders are concerned, we are having a constructive EPD 19 May 2005 PAGE 17 of 204 discussion with the steel manufacturers in order for them to assist us in that regard. I’d like to announce that the industry, through the LPG Association, is donating 120 LPG cylinders with cooker tops to members of this House. Baza kuqala ngekomiti yam, kaloku. [Kwaqhwatywa.] [They are going to start with my committee.] [Applause.] They will first go to the members of my committee because they are actively involved in promoting education around the use of this equipment, but also to those members who have constituencies in the areas where we do not yet have electricity infrastructure. We are asking those members to use these facilities to educate the members of the public as well as to make sure that they pass the safety standards. EPD 19 May 2005 PAGE 18 of 204 You will try them at home, uzisebenzisele nawe ekhaya, but the important thing is for you to please run an education programme from your constituency office. We will have workshops here for you to be given tips on using them, and after that you will get a slip which you redeem for a stove, which you will then take home. Please give us a report back, both about the feedback and the kind of questions that the members of the public are asking. This is very serious because paraffin is a real threat to poor communities. Those members who work in squatter areas and rural areas will know what we are talking about. The electricity distribution industry has progressed, as I’ve said, with RED 1 being close to us in Cape Town from 1 July. The EDI – that is the electricity distribution industry - is valued at R15 billion. It is the biggest restructuring of an industry that South Africa has ever seen, and therefore we need to do it earnestly and carefully. Again, I would like to thank all the members of the team for their work in this regard. EPD 19 May 2005 PAGE 19 of 204 I’d like to turn to mining now. In the past two years we have brought about a lot of changes to the mineral sector. It has been very challenging, but I think the industry has tried very hard to take everything in its stride. On 1 May 2005, the Mineral and Petroleum Resources Development Act became law. We have already processed 57 conversions from the old order to the new order for both exploration and mining, of which 22 have been granted and 35 returned because applicants did not provide enough information and detail. Those who applied for mining conversions, in almost all cases, had to bring us additional information which was required in order for them to meet the obligations of the scorecard. We look forward to them coming back with the relevant information. In order to be more efficient, we’ve also increased the capacity of the department. We now have two deputy directors-general, one responsible for mineral regulation EPD 19 May 2005 PAGE 20 of 204 and the other for mineral policy and promotion. Each will have additional staff and a sharpened focus. We have finalised amendments to the Diamond Bill and the Precious Metals Bill, which are to be deliberated upon by the portfolio committee in June 2005. As you can see, ladies and gentlemen, we have borrowed jewellery for some members of the committee to display.[Applause.] These are made in South Africa, and people can . . .[Interjections.] . . . There will be some for the DA too. [Laughter.] If the DA had ladies in my committee, they would have got them too. These pieces of jewellery are made in South Africa 100%, and the message is that we have the capacity, capability and skills in South Africa for beneficiation, contrary to what we’ve been made to believe. There are companies that are very enthusiastic and are training people. In fact, many foreign companies have indicated and expressed interest in working in South Africa, so we need this Bill to be fast-tracked. EPD 19 May 2005 PAGE 21 of 204 I have in the audience here a guest from Antwerp, Belgium, who also represents us in that country. Mr Charles Bornstein is from the diamond industry there. [Applause.] I also have representatives from LLD, another diamond company in Israel. All of them are interested in providing training here, and we’re going to give them very tight deadlines so that we can benefit from their skills and experience. I thank them for being here. We have agreed with the DTI on aligning the Mining Charter with the BEE Codes of Practice, and we have done that in consultation with the industry. So the industry need not be too worried about this issue; no new demands will be made on them as a result of new codes from the DTI. [Applause.] We will sign a memorandum of understanding with the newly formed Small Enterprise Development Agency, Seda, in a matter of days. They will be our partner in the implementation of the small business strategy of the DME. EPD 19 May 2005 PAGE 22 of 204 We will be launching an advisory board on 28 June 2005, which will, among other things, advise me on the sustainable development of the nation’s mineral resources. Mintek continues to be closely involved in the advanced metals initiative, with a focus on research and development within our four specialised fields, namely light metals, precious metals, stainless steel and new metals. Again we thank Mintek for continuing to be a pioneer. Sawima, the SA Women in Mining Association, has progressed. They’ve strengthened themselves as an organisation, but abafumani zivumelwano zomsebenzi [they don’t get any deals], shame. Niyababona. [Do you see them.] So going forward, taking advantage of the strengths that they have developed, we are going to be working very hard with them to address this glaring challenge. Judging by what is happening, not just in South Africa but in the SADC region and beyond, we know that many African countries are ready for beneficiation as a way of sustaining the future of the mining industry. The jewellery we’re wearing today is, as I’ve said, proudly South EPD 19 May 2005 PAGE 23 of 204 African, and we wanted the House to realise that we are serious and aggressive about ensuring that there will be `made in South Africa’ brands that will grace not just South Africa but also retail facilities around the world. The amendments that we will make to the Act will ensure that we are able to create an enabling environment for beneficiation by widening access to both rough diamonds and precious metals, while also addressing issues and security concerns. To give meaning to these amendments, the department and the DTI have already engaged with stakeholders in the development of a gold loan scheme, which will be launched in July 2005. Again, I would like to thank Anglo Ashanti for the contribution they have made in this regard. We are already advanced in our planning for training in the manufacturing of precious metals and the jewellery manufacturing precincts. We’re going to have one at Johannesburg International Airport, which will also be an Industrial Development Zone. There will also be one at Kimberley, Cape Town, Durban, Midrand and Phelindaba. At EPD 19 May 2005 PAGE 24 of 204 all these places, people are actively working at setting up these jewellery precincts. The precious-metals precinct that will be established at the airport, in the IDZ, will have a Vat-free customsmanagement area and will allow for duty-free imports and exports of finished goods, with great advantage to the industry. So anybody who needs a good address in the jewellery industry should try to be there. In South Africa, our rough diamonds are exported, to the detriment of local manufacturers, cutters and polishers. We will now make sure that we determine the demand as it obtains in South Africa. In the new Act, we will make sure that the volume that is required in South Africa is, to the extent that we can, being provided so that we can create the jobs that we need in South Africa. It is proposed in the Diamond Bill that . . . EPD 19 May 2005 PAGE 25 of 204 HOUSE CHAIRPERSON (Mr N P NHLEKO): Order! Order, hon Minister. Hon Minister, just be aware that you have exhausted your speaking time and as a result we will take minutes from the time allocated for your response. The MINISTER OF MINERALS AND ENERGY: Okay, and thank you very much, Chairperson. I would just like to highlight the challenges that we face in terms of jobs in the mining sector. With regard to this challenge, we need co-operation between the two partners, industry and labour. South Africa’s mining industry is showing an increase in foreign revenue earnings and is creating new jobs in platinum, but we are losing jobs in gold. We therefore need to apply and develop means to ensure that we can manage the decline in jobs in this regard. It is our view that the exchange rate is not the sole cause of the demise of the gold mining industry, but that there are a number of factors that the industry needs to address. EPD 19 May 2005 PAGE 26 of 204 As part of the programme of addressing these needs, we will be collaborating with industry and labour, and appoint a common technical partner. We will also be making sure that the social plan, which is the only cushion that the workers have when they face this challenge of retrenchment, is implemented sooner rather than later. Thus companies that do not make plans for the social and labour needs of workers will be forced to do so before they start implementing retrenchment plans. To facilitate that, we will amend the Mineral and Petroleum Resources Development Act to ensure that we do not wait until companies come for conversion before we can achieve that. My department is also being inundated with requests from provident funds for long-service awards, UIF and death benefits due to ex-miners and widows whose husbands died in the mining industry. I have instructed Teba to conduct an investigation into the funds that should have been paid to these people but are instead accumulating interest in the coffers of the institutions which are supposed to pay these EPD 19 May 2005 PAGE 27 of 204 benefits to the poor people, because if we continue to neglect that duty, we are definitely committing a crime. As far as mine health and safety are concerned, we have again seen a number of new policies as well as challenges. Regulations of the Mine Health and Safety Act were promulgated during the reporting period in the following areas: survey, mapping, mine plans and the protection of the surface and workings. The chief inspector of mines issued guidelines for mandatory codes of practice for dealing with slope-stability related to accidents on surface mines and underground rail transport. The Mine Health and Safety Council’s standing committee on research has a programme aimed at improving occupational health and safety performance. The programme currently addresses the following issues: cultural change, rockfalls, rockbursts and explosions, among others. We are busy implementing the 2004 Aids summit commitments, which have now been translated into programmes. The EPD 19 May 2005 PAGE 28 of 204 implementation starts in the middle of this year, and as a department, working together with labour and industry, we will be assisting in implementing this programme. In the department we have therefore also looked at issues of human resource, which fall under our mine health and safety branch. We have devised a scheme that will promote learnerships, internships and programmes, especially in the area of scarce skills, as well as a retention and a training programme for our employees and for members of the public in general. Our HRD master plan is a consultative one, and we are working with the Setas in our area. In his address to Parliament in June 1999, President Thabo Mbeki referred to us as “a nation at work to build a better life”. Indeed that is what my department is, and so are the associated bodies that we work with. I’d like to thank them for their dedication. This includes the staff in the Ministry, my Deputy Minister and directorgeneral. I thank my colleagues in the industry and labour, EPD 19 May 2005 PAGE 29 of 204 especially the mineworkers who, through NUM, have played an active role in supporting our department. I’d also like to thank the members of Parliament, the portfolio committee in particular, for the work that we have done with them. The Freedom Charter remains our guiding document, and we remain convinced that this country can . . . [Interjections.] . . . The Constitution too. The Constitution is based on the Freedom Charter . . . [Applause.] . . . The Freedom Charter remains our guiding document and we remain convinced that this country can and should be a land of opportunity for all, not some, because South Africa belongs to all who live in it. Our freedom should be about the restoration of dignity of everybody - mineworkers and farmworkers - and the sacrifices that those people have made. It is this situation that the Freedom Charter sought to address. And accordingly, in the Acts that we have passed in our charters, as a department we have tried to address these EPD 19 May 2005 PAGE 30 of 204 challenges, as they are enshrined in this document that we continue to follow. Thank you. [Applause.] Adv H C SCHMIDT: Mr Chairperson, the Cradle of Humankind, and in particular the Sterkfontein Caves, are under threat because extraneous water, containing acid, is finding its way into the mining basin of defunct mines in the Randfontein area. Water has been filling the mine since they stopped pumping in the late 1990s and started to decant at an old mineshaft since September 2003. Although a particular mining house has embarked on a recycling process in which the water is reused, stored and evaporated in holding dams and ponds, it is important that the department ensures that such water poses no threat to the Sterkfontein Caves. The Minister should explain to the South African public and major international investors that due diligence was exercised in implementing the Minerals and Petroleum Resources Development Act, the MPRDA, on 1 May 2004. This follows the Minister’s latest reply to a parliamentary question that discussions with the Italian embassy were continuing, following the receipt by the department of an EPD 19 May 2005 PAGE 31 of 204 aide-mémoire relating to complaints in respect of the expropriation by the South African government of mineral rights held by Italian companies. Various high-level discussions between the Minister and her department and legal experts in the mining field took place, warning the government of the possible negative consequences relating to the effective expropriation and material limitation of the unfettered ownership of mineral rights held by domestic and international investors, as well as the public. Despite adequate warning of the detrimental consequences of the MPRDA, and the receipt of more than 3 000 notices to institute legal proceedings, the department has continued to proceed with the implementation of the Act. What is more concerning, however, is the fact that the 3 000 notices received relates only to claims to be instituted in terms of South African law, whilst international companies may elect to sue the government, in terms of legal procedures determined by international law. The South African government may have breached many more bilateral investment treaties with foreign governments EPD 19 May 2005 PAGE 32 of 204 which were concluded, inter alia, to protect their companies, which have invested in South Africa, from the consequences such as those caused by the MPRDA. In the light of an expected number of claims to be served on government by foreign companies, which could amount to billions of rands, the Minister and the department should indicate to the public the steps taken to minimise government’s liability. It is understood that up to 32 bilateral treaties have been signed since 1994, of which government may be in breach of possibly up to 23. This means that steps may be taken by these international companies or their governments. The Minister’s approach to the recent allegation relating to the Pelindaba calibration site near the Pelindaba power station, namely that it was unguarded and easily accessible to the public, is inappropriate. This is so, especially in the light of the National Nuclear Regulator’s and Necsa’s confirmation of Earthlife Africa’s concern that the radiation levels are potentially harmful. President Mbeki’s response to these allegations, which he EPD 19 May 2005 PAGE 33 of 204 described as totally impermissible and reckless, appears to be off the mark. Threats by the Minister of tabling legislation that will make the spread of allegations leading to unnecessary panic or incitement a punishable offence are just as unfortunate. The public simply does not know whom to trust and what to believe. The Minister’s response should have been one that allayed or addressed public concerns on this matter – alas, something she has not done. The contribution of the mining sector to South Africa’s gross domestic product fell from 13% in 1980 to 7% in 2004. The loss of jobs since the 1980s, when the industry employed 650 000 workers, is huge. It currently employs only 450 000 workers. Considering the indirect multiplier effect of the mining industry throughout the rest of the economy - that contribution is alleged to be between 14% and 15% of GDP. It is clear that the mining industry does not expect government to intervene on its behalf. However, action should be taken on the macroeconomic front to tackle issues EPD 19 May 2005 PAGE 34 of 204 in South Africa that are detrimental to the industry and affect its efforts to cope with the strong rand. We have seen the closure of various marginal mines by different mining houses, causing the loss of thousands of jobs, because these mines were not economic at the current rand-dollar exchange rate. However, certain other companies, despite their mines not being profitable, have done their utmost to keep these mines going for purposes of minimising unemployment. The diamond-mining industry is a prime example of nonprofitable mines being kept in production by pursuing more conservative mining practices. Although a mining strategy for the mining industry needs to be adopted as soon as possible, such a strategy should not penalise the mining industry; in fact, it should rather attempt to reduce some of the punitive measures within which the mining industry has to operate. The cost of water and transport, as set by parastatals, has recently been rising at double the inflation rate, with certain mining houses complaining to the Competition EPD 19 May 2005 PAGE 35 of 204 Commission that the price of local steel, for instance, sourced internally is higher than the international price. In addition, legislation that makes it difficult and expensive to retrench workers and sectoral wage agreements are the most commonly criticised aspects of the labour market. The proposed royalty tax and the uncertainty relating to that, the lack of the protection and security of mineral rights during the process of transforming the ownership of the industry and some of the requirements in the mining industry charter serve as major impediments. Raising royalty on revenue rather than profit will undoubtedly penalise mining houses. Government’s consideration of an export duty on commodities that it wants beneficiated, although good in principle, should be approached with caution. The Black Economic Empowerment requirements in South Africa’s new mining legislation in order to convert oldorder mining and prospecting rights into new-order rights have, unfortunately, created many areas of uncertainty. In addition, the possible review of the preferential tax EPD 19 May 2005 PAGE 36 of 204 regime under which mines operate also serves as a further threat to the viability of South African mines. Government could assist in running operations in various ways. One such measure of possible significance could be the pumping of a water subsidy. During 2004 South Africa’s annual gold production slipped to its lowest level since 1931. The latest statistics on gold production and sales show that in January this year, gold sales were down 20% year on year. This fall in production was apparently caused by the water prices, which rose by 10% per year over the past few years; steel prices, which increased by double digits over the past few years, and Spoornet’s tariffs, which rose by 35% in 2003 and 16,5% in 2004. According to the Canadian Fraser Institute’s Annual Survey of Mining Companies on the mineral law regimes in various jurisdictions, we now have the unfortunate and poor distinction of rating 53rd out of 64 countries surveyed for their policy potential. This is below countries such as some of them I have never hear of, Minister! - Mongolia, Zambia, Ecuador and Burkina Faso. Our score has deteriorated over the period 2002-05 from 47% to 32%, while EPD 19 May 2005 PAGE 37 of 204 in the case of other African countries, such as Ghana, scores have increased from 45% to 60% - almost double that of South Africa’s. It is therefore clear that the mineral law regime in South Africa is harsh and self-defeating. In addition, approximately 30% of respondents to the Fraser Institute’s Annual Survey of Mining Companies indicated that a lack of security of tenure would be a strong deterrent to investment within South Africa. That is the international perception. A question asked in Parliament regarding the independent risk assessment report, which had been completed by the National Treasury, raised concerns relating to claims for compensation in respect of the projected amount of compensation to be claimed by international and South African mining houses. The Minister of Finance responded by stating that although the National Treasury had undertaken and completed an assessment of the potential risk to government that may result from the implementation of the MPRDA, such documents had not yet been submitted to the Minister of Minerals and Energy - I hope this has been done by now - and would not be made available to the public EPD 19 May 2005 PAGE 38 of 204 because they contained proprietary information and confidential advice. This is a very strange reply if there is any regard for the public nature of the subject of the report, namely mineral reserves and the legislation relating thereto. One can only deduce that the report contains a strong negative conclusion, which would negate the contents and objective of the MPRDA and its implementation on 1 May 2004, in the light of serious reservations about its implementation. The processing of applications in terms of the MPRDA has been disastrous. There have been issues relating to the department’s nonadherence to time limits in assessing applications. The following recommendations have been made after widespread consultation in an attempt to resolve some of these issues: One, the introduction of a seven-day rectification period in which minor errors identified in an application may be corrected; two, transparency in the tracking process with regard to applications submitted to the DME; three, the introduction of a map of applications for particular geographical areas - as was done in various other neighbouring countries; four, strict adherence to the principle of first-come, first-served in the processing of EPD 19 May 2005 PAGE 39 of 204 applications; five, clarification of whether title deeds have to be submitted after 1 May 2005; six, serious revision of the requirements for a recognisance unit permit; seven, clarity regarding the minimum 26% requirement should be given by the DME policy; eight, time limits for the issuing of permits should be adhered to. It is important to note that possible consequences of some of these failures by the department have led to the withdrawal of major companies, such as Aim Resources. Because of its frustration with the regulatory regime in South Africa, Aim Resources relinquished an option to acquire the Mooiplaats Platinum Project for $3 million after being wearied by approval delays. Other companies, such as Argosys, have also refused to proceed with an application as a result of the unfavourable regulatory regime in South Africa. Decisions by companies such as these to withdraw from investment decisions in South Africa only serve to damage the mining industry, the economy as a whole, and South Africa’s reputation as a country seeking investment. EPD 19 May 2005 PAGE 40 of 204 Regarding the Braamhoek Pumped Storage Scheme in the Free State, which is being undertaken by Eskom, and following a document received from the community in the Harrismith area and the environmental impact and socioeconomic considerations of access roads, Eskom is requested to consider “the bigger picture”. A scenario should be developed which fully acknowledges various broader aspects, not just the costs, benefits and convenience to Eskom. Ten opsigte van die klein diamantdelwers van die Noord-Kaap en Noord-Wes-provinsie is dit duidelik dat daar delwers is wat al langer as agt maande sonder inkomste ’n bestaan moet maak, en wat dus ’n oorlewingskrisis beleef en nie hul verpligtinge kan nakom nie. Hulle besef die noodsaak van onderhandeling, maar dit is onmoontlik om te wag tot daar uitsluitsel verkry word te midde van ’n lang, uitgerekte onderhandelingsproses. Dit is duidelik dat die omstandighede noodoptrede vereis ten einde die probleem op die kort termyn die hoof te bied. As gevolg van hierdie ondeurdagte wetgewing het entrepreneurs en werkgewers in der waarheid ook honderde – ek herhaal, honderde! - werkgeleenthede verloor. Talle blanke en nie-blanke werknemers en almal se gesinne se EPD 19 May 2005 PAGE 41 of 204 toekoms is dus op die spel. Ter wille van hul almal se voortbestaan is dit kritiek noodsaaklik dat daar op die kort termyn ’n spoedige oplossing vir die probleem verkry word. (Translation of Afrikaans paragraphs follows.) [With regard to the small diamond diggers in the Northern Cape and North West Province, it is clear that there are diggers who, for more than eight months, have had to make a living without getting paid. They are experiencing a survival crisis and cannot meet their obligations. They realise the necessity for negotiations, but it is impossible to wait for a decisive answer in the midst of a long, drawn-out negotiation process. It is clear that these circumstances require urgent action in order to confront this problem in the short term. Because of this ill-considered legislation entrepreneurs and employers have lost hundreds – I repeat, hundreds - of employment opportunities. The futures of numerous white and non-white employees and their families are therefore at stake. For their survival it is of critical importance that a speedy solution be found for this problem in the short term.] EPD 19 May 2005 PAGE 42 of 204 It is clear that nuclear energy remains an important alternative source of energy because no greenhouse gases are emitted by nuclear energy sources and alternatives to nuclear energy are very expensive. Eskom, which currently supplies 95% of the electricity requirement, has predicted that South Africa will run out of peak capacity by 2007. From 1 January 2006, the production of leaded petrol will be halted. Three octane levels of unleaded petrol will be allowed: 91, 93 and 95. Diesel will also change from January 2006 to a lower sulphur level. These are both very good developments, Madam Minister. However, the current price of petrol and diesel is of great concern. This is caused, inter alia, by the high levels of taxation and levies imposed on the price of fuel. These taxes and levies include normal taxation, road-accident-fund levies and a replacement levy for the regional council levies, which are going to be phased out. [Interjections.] This policy decision by government to abuse taxpayers’ dependence on petroleum, by using it as a vehicle for government revenue, should urgently be re-examined. The South African public has a right to be charged an affordable and market-related price. EPD 19 May 2005 PAGE 43 of 204 The government’s departure from its decision to privatise Eskom and to embark upon a process of establishing independent power producers indicates a lack of confidence in the open-market model. Is this because it is expected that South Africa’s peak supply of electricity will run out, causing a greater emphasis on security of supply? In this regard, forecast and national planning by government is suspect, whilst Eskom hesitates to provide long-term supply agreements to clients, which may hamper economic growth. It appears that Eskom is not prepared to enter into longterm agreements for a period in excess of seven years. This makes it impossible to do any forward planning in terms of the 30-year time requirements of mining companies and energy companies. There is no clarity on long-term pricing nor on transparent, cost-reflective tariffs. HOUSE CHAIRPERSON (Mr N P Nhleko): Hon member, your time has expired. EPD 19 May 2005 PAGE 44 of 204 Adv H C SCHMIDT: I thank you. Can I just say to the department and the liquefied gas firm that I will make use of these vouchers. Thank you. [Applause.] Mr E N MTHETHWA: Chairperson, we can easily predict the DA - we knew that this was what they were going to say. The problem is that we have whiners; people who just whine. [Interjections.] The issue about the Mineral and Petroleum Resources Development Act, the MPRDA, is that it’s an Act, and it’s not our problem that the DA is not at the helm of this government to make the kind of laws Schmidt was referring to. That’s not our problem. [Interjections.] We can’t help them. [Interjections.] We didn’t even set 30% in the last election, in which election they got merely 12%. That’s not our problem. Let’s not be accused of things we really have nothing to do with. Sihlalo, Ngqongqoshe wezokuMbiwa Phansi naMandla neSekela likaNgqongqoshe, malungu ahloniphekile eSishayamthetho, baphathi boMnyango beholwa uMqondisi-Jikelele, maqabane nesizwe sonke, singuKhongolose siyaseseka isabiwomali salo nyaka. Kulo nyaka sihlanganisa ama-50 eminyaka kwagcotshwa uMqulu weNkululeko nongumkhombandlela wenkululeko yaleli EPD 19 May 2005 PAGE 45 of 204 zwe. Iphuzu elikhuluma ngomnotho lithi umnotho waleli zwe, ikakhulukazi ombiwa ngaphansi komhlaba noyifa lesizwe sakithi uyobuyiselwa ezandleni zabengabadi. Enkulumweni-mgomo yonyaka, umbutho wesizwe ugcizelele ukubaluleka kokusheshiswa kwezinhlelo zentuthuko kwezomnotho, ikakhulukazi kulabo abangumnsinsi wokuzimilela nabebedla imbuya ngothi yonke le minyaka. Ngaphezu kwalokho, umbutho uthi masenze izinguquko esakhiweni somnotho wezwe ukuze kuhlomule bonke abantu njengoba namanje umnotho usesezandleni zedlanzana lamadoda amhlophe. (Translation of Zulu paragraph follows.) [Chairperson, hon Minister of Minerals and Energy and hon Deputy Minister, hon members of Parliament, officials of the department led by the Director-General, comrades and the nation at large, we as the ANC support this Budget Vote. This year we celebrate the 50th anniversary of the Freedom Charter, which is a guiding tool for the freedom of this country. Regarding the economy of this country, and especially the underground one, the Charter states that it shall be given to the people. In its policy-making speech of the year, the African National Congress emphasised the importance of expediting economic development programmes, especially for the indigenous people who have been EPD 19 May 2005 PAGE 46 of 204 extremely poor for all these years. On top of that, the congress says let us make changes in the country’s economic outlook so that all people can share in the country’s economy, as it is now in the hands of a select few white men.] One of the objectives of the Department of Minerals and Energy, the DME, this year is to align structures, appropriate skills, processes and systems to enable effective and efficient implementation and execution of policy and legislation. This objective is in line with the ANC and the government’s emphasis on the acceleration of policy implementation in order to fight poverty and create jobs. The transformation of the economy in our country has the achievement of black economic empowerment as one of its major objectives. The aim is to build a sound base in terms of the ownership of the means of production and to deracialise the economy to the benefit of all the people, as the Freedom Charter states. The broadening of BEE is a major challenge as we enter the second decade of our freedom. Those amongst us who cry EPD 19 May 2005 PAGE 47 of 204 “elites” when it comes to BEE must understand that the programme had to start somewhere – clearly, with a few in our society, though it is not supposed to end there. By the same token, those who are making headway in this programme must be reminded that they are not doing so through their own wisdom, but because they are reaping the fruits of our hard-earned liberation. Therefore, they are duty-bound to pull up those who are still struggling on this front. It would be folly of them to want to have their hands everywhere for narrow self-interests to the marginalisation of the emerging entrepreneurs. Isikhathi sodlayedwa – ngingasasho inja kaPhuzekhemisi – siphelile. [Uhleko.] UKhongolose neSishayamthetho abasoze bahambisana nomhobholo ngoba uyaphikisana nokuqukethwe kuMqulu weNkululeko. Umnyango wezokuMbiwa Phansi naMandla usufake elikhulu igxalaba kule minyaka eyedlule ekushintsheni izimboni ezisebenzisana nawo ukuthi zihambisane noguquko nasekuvuleni amathuba, ikakhulukazi kwabesimame. Nokho, indlela iseyinde kulokhu. Bheka ezivumelwaneni eziningi ezenziwa nosozimboni, abesimame basacatshangwa muva. (Translation of Zulu paragraph follows.) EPD 19 May 2005 PAGE 48 of 204 [The time for lone eaters - no reference to Phuzekhemisi’s dog’s name - is up. [Laughter.] The ANC and this Parliament will never support private enterprise because it contradicts the contents of the Freedom Charter. The Department of Minerals and Energy has played a pivotal role in the past years in changing the mindset of the companies that they are working with so that they could allow change to take place and open up opportunities, especially for women. There is still a long way to go in this regard, though. Just look, for instance, at the many agreements concluded with companies; women are often thought of very late.] We would like to join the President of the Republic in expressing hope for the future of the mining industry. This follows Anglo American Chief Executive Officer Mr Lazarus Zim’s expressed commitment of his company to embrace our economic transformation project and its progressive perspective. The ANC applauds this commitment, hopes it will be fulfilled and looks forward to a fruitful working relationship with the CEO and his company. EPD 19 May 2005 PAGE 49 of 204 The past 10 years has seen the creation of black-owned mining companies and some mining assets being accessed by black economic empowerment-backed ventures. The petroleum sector has also witnessed five out of six major companies reaching agreements with equity partners. The sixth company is on track to conclude its deal. Clearly, our legislation has increased the access of BEE in the resources sector. Breakthroughs are being recorded on an ongoing basis on skills development through the MQA, the Mining Qualifications Authority, which is one of the successful Setas we have in this country. In this regard we would like to pay our respects to the late Dr M Mthwecu, the former CEO of the MQA, who has been a pillar behind this Seta’s outstanding performance. He passed away two weeks ago after being involved in a car accident. May his soul rest in peace. The progressive and unique nature of the Minerals and Petroleum Resources Development Act of 2002 cannot be ignored. This is a contemporary and living testimony, underpinned by the perspectives enshrined in the Freedom Charter, regarding the people’s ownership of wealth and EPD 19 May 2005 PAGE 50 of 204 land through their government. It emphasises equitable access to mineral resources, sustainable development through rehabilitation, and substantial and meaningful empowerment of historically disadvantaged persons, amongst others. Having enlisted successes, however, challenges remain in the implementation of all the pillars of economic transformation. Multinationals, which have been assisted by government for years, such as Sasol, must lead by example. The company correctly boasts of being a giant in technology on the continent and in the world, to a certain degree. We, however, need to remind each other that that advancement belongs to the people of South Africa. The company’s top management is still predominantly white, with a succession plan that has no regard for the transformation process. By way of example, its former CEO, Mr P Cox, has been given a chairman’s position; Mr Davies has become the new CEO; whilst Mr T Munday has become the Deputy CEO, a position which never existed before. This kind of succession plan is out of step with the new dispensation. This is totally unacceptable. Whilst wishing the new CEO well in his EPD 19 May 2005 PAGE 51 of 204 responsibility, we hope that he will appreciate the gravity of the matters at hand and act accordingly. The economic transformation agenda in our country is nonnegotiable and needs strict adherence. Our success on this score will be determined by the strides we make as the economic cluster in the creation of a million jobs within five years. Whilst this would be as a result of privatepublic partnerships, government’s role to continue pointing the way is of paramount importance. The major aim is to strengthen the second economy for it to be in a position to be integrated into the first economy. In that way, we would have contributed to ridding our country of the apartheid economy. This task, therefore, does not limit itself to the goal of the transference of assets from individuals or groups without fundamentally altering economic power relations, nor does it embrace as a goal jumping between deals in order to make quick cash with no bearing on the contract with the people to fight poverty and joblessness. This task is to accumulate wealth in a sustainable manner, inter EPD 19 May 2005 PAGE 52 of 204 alia, to create a base of black entrepreneurs and not individuals content with transactionary deeds alone. We recognise that for these entrepreneurs to make an indelible mark on the economic structure, relevant skills are needed. Conscious efforts would have to be made to build and consolidate this knowledge base. Failure to do this would see us having in our midst only deal makers with no clue of the know-how of this challenging field. This gives rise to narrow-based empowerment with no regard for the fundamentals of the Freedom Charter. The forecasted challenge of the future shortage of electricity demands of us to sharpen our foresight and ensure the continuous availability of this resource. It is against this backdrop that we applaud the Minister of Finance for allocating funds to infrastructural development to build and upgrade power plants, including hydroelectric plants. Since transmission and redistribution networks are involved, we feel it will be in order to ask for more investment in the next Budget Votes if we are to achieve EPD 19 May 2005 PAGE 53 of 204 programmes such as universal electricity coverage for the country by 2012. In the past year, Parliament has followed up on the electricity distribution industry, particularly in terms of its ability to meet the President’s deadline to launch the first regional electricity distributor by June 2005. All indications have confirmed that by 1 July 2005 it will be launched. This will help us to achieve a streamlined and better regulated electricity distribution environment, thus fulfilling the objectives of the White Paper on Energy of 1998 and a blueprint on restructuring of 2001 approved by the Cabinet. [Interjections.] On a related matter, the nuclear energy industry, it is imperative to observe the United Nations’ focus on the rapid growth of this industry worldwide. The DirectorGeneral of the International Atomic Energy Agency, Mohamed ElBaradei, notes that, based on the most conservative assumption, the latest report on the subject forecasts around 430 gigawatts of nuclear capacity by 2020, up from 367 gigawatts today. This translates into over 500 nuclear power plants by then. This is driven by national plants and factors such as the Kyoto Protocol, which recently came EPD 19 May 2005 PAGE 54 of 204 into force and committed countries to meeting cleaner air targets. He goes on to note Asia and other developing nations as the fastest growing in nuclear electricity capacity. The problem in our country is the historical abuse of this resource by the former apartheid regime in experimenting with it for death and destruction. However, the democratic state took a decision to utilise this for social progress. Granted, there are serious issues of health and safety associated with nuclear energy, which, by the way, are a global challenge. But, as economists would argue, that is a matter of opportunity cost, whichever position you take on this. We have decided to utilise this resource in fulfilling the national obligations we have for electrifying our country. Since these are challenges facing all humankind the world over, responsible global citizens are sorely needed. We felt that it was opportunistic of one NGO – I’ve just forgotten the name – to raise some concerns they had in this field with the portfolio committee, but to decide to play to the gallery on others. We respect their viewpoint EPD 19 May 2005 PAGE 55 of 204 on this matter, even though we don’t share their perspectives on some of their assertions. This group should act in the best interests of South Africa and not as European agents, despite being funded from Europe. Health and safety in the workplace, especially in the mining sector and the liquid fuel industry, have concerned us in the recent past. The committee has initiated a gathering on this matter in terms of which key stakeholders will be invited in the light of new experiences and developments. We feel strongly that some of the fatalities could have been avoided. This meeting will take place within the next two months. There is no turning back in the beneficiation programme, and it is critical for job creation and the further extension of the lifespan of the mines, amongst other things. [Interjections.] This is important if we take into account the recent threats of job losses in this sector. The construction and upgrading of the diamond cutting and polishing industry, for instance, is a necessity needing no emphasis. Over and above beneficiation, the curbing of job losses faces the whole nation squarely. EPD 19 May 2005 PAGE 56 of 204 The tripartite relations at Nedlac have raised specific suggestions, which, if implemented, will bring success. Seizing this strategic moment to act on commitments of government, business and labour may help to halt the mothballing of these mines, thus extending a lifeline to the working people. Allowing any mothballing now may see us unable to make any interventions in the operations of mines in the future. Thank you very much. [Time expired.] [Applause.] Mr E J LUCAS: Chairperson, Minister, Deputy Minister, colleagues, it’s a pleasure to be associated with the Department of Minerals and Energy, because the department is well on its way to ensuring that legislation is developed in establishing a democratic, nonsexist and nonracial South Africa. We are also pleased to note that transformation has taken place in the department and congratulate those who have demonstrated competence. It is a South African reality that if you are black, people tend to focus mostly on your shortcomings and as transformation becomes more and more of a reality in the department, black South Africans are compelled to work even harder. It is also worth noting that those who have EPD 19 May 2005 PAGE 57 of 204 defaulted within the department have been dealt with by the Minister without fear or favour. However, there remains a difficult and long road ahead. Broad-based black economic empowerment has a major hurdle to overcome in order for it to be fully inclusive. This hurdle is the initial funding of projects. Finance houses are not prepared to take the risk. It is therefore important that interventions be found to overcome this immediate problem. If not, all the hard work done by the Minister and her department to this point will not achieve its noble purpose. BEE is often referred to as the enrichment of a few. I am, however, aware that this is not the intention of the Minister. She has contributed greatly to transformation within her area of competence. Making BEE deals more inclusive becomes vital in order to shift the focus away from the enrichment of a few to the empowerment of many. We are pleased to see that the overall allocation to the department, as well as each of its six programmes, has increased in the 2005-06 Budget. Overall expenditure has increased from R1,9 billion last year to R2,1 billion in the current Budget. EPD 19 May 2005 PAGE 58 of 204 Over the past three years there has been an annual average increase of 14,1%. We are particularly pleased that the allocation for Programme 2 - Promotion of Mine Health and Safety has received an increase. This programme aims to protect the health and safety of mine employees and people affected by the activities of mines. The recent spate of mine accidents is a cause of great concern and needs to be addressed urgently. We have, however, been assured by the Minister that there will be a health and safety summit this year, at which the problems will be addressed. The safety of miners is of the utmost importance and must not be taken for granted or compromised. The aim of Programme 3 - Mineral Development is to promote, transform and regulate the mineral resources industry to achieve equitable and sustainable development. Expenditure on this programme has increased at an annual average rate of 27,5% over the past three years. This is very encouraging and important if the department is to achieve the stated aims of this programme. It is important that we continue to encourage beneficiation, bearing in mind that the mining houses do EPD 19 May 2005 PAGE 59 of 204 beneficiate in the primary stage of our raw materials. The IFP believes, however, that more jobs can be created if more focus is paid to beneficiation of the final product as well. This, in our view, remains a major challenge. The Richards Bay coal terminal appears to have a few problems. I have been informed that the construction of an additional facility is underway. But the rail facility, which is operating at capacity at the moment, will be unable to carry more coal, thereby restricting the job creation that was intended by the construction of the additional facility. The IFP expresses its concern about the price of fuel. We do appreciate the fact that external forces beyond the control of the Minister and her department affect the fuel price. The strengthening of the rand has been marvellous in this regard to balance the fuel price. However, it has had a negative effect on the mining industry, resulting in many job losses. The dilemma remains: What should the rand-dollar exchange rate be? While the person in the street is happy with the strong rand, industry prefers a weaker rand. Some EPD 19 May 2005 PAGE 60 of 204 provincial governments are thinking of an additional fuel levy, which will hurt the motorists and public even further. The IFP once again places on record its concern about the misuse of the Road Accident Fund, especially as it has a direct impact on the price of fuel. The Mining Qualification Board has a wonderful six-month training course that serves as an introduction to the mining industry. I hope that all members of the portfolio committee will have an opportunity to attend. The Mining Qualification Board has also embarked on a jewellery and a small-scale mining training course for 1 500 learners, and an ex-mineworkers training project for 2 266 trainees in 10 district municipalities at a total cost of R37 million. I would also like to convey my sympathies to the family and friends of the CEO of the MQA. It was a sad occasion, one we all regret. Car accidents seem to be taking such young people who wanted to do so much in this country. The free basic electricity programme has unfortunately not reached the poorest of the poor, mostly in the rural areas. The cost remains high and whilst there is a remarkable improvement in the supply of electricity, the challenge EPD 19 May 2005 PAGE 61 of 204 remains, especially in rural areas. There is a need to assure people that the use of nuclear energy is safe. The report by Earthlife Africa in Phelindaba was alarming and many people are still concerned. The IFP therefore proposes that Earthlife Africa and the department jointly carry out tests, thereby removing any doubt about the accuracy of test results. It is important that the people of the area are reassured and feel safe. With these remarks the IFP supports the Budget Vote. The major challenge, however, still remains job creation. I thank you. [Applause.] The DEPUTY MINISTER OF MINERALS AND ENERGY: Chairperson, hon members, ladies and gentlemen, the freedom we attained on 27 April 1994 will mean nothing as long as it does not translate into a better life for the majority of South Africans. It was in recognition of this reality that the founders of that perennial document, the Freedom Charter, 50 years ago envisaged not only a South Africa that belongs to all who live in it but also a society where all shall share in the EPD 19 May 2005 PAGE 62 of 204 mineral wealth beneath the soil. This was indeed a reaffirmation of the universally accepted notion that natural resources are the heritage of all the people of South Africa. The advent of democracy in our beloved country in 1994 and the concomitant legal banishment of apartheid from our society laid a firm foundation for the ideals of the Freedom Charter to thrive and flourish. Since the programme of government policy has been directed towards the actualisation of the Freedom Charter and our Constitution, my department, as a custodian of government policy for the regulation of the mineral and energy resources, has been engaged in activities aimed at translating the dream of freedom into reality through the utilisation of these resources. I’m honoured to join my Minister in reporting back to the people of South Africa on our progress in this regard. Looking at the electrification programme, a lot of progress has been made towards universal access to electricity. The Integrated National Electrification Programme has delivered EPD 19 May 2005 PAGE 63 of 204 232 287 household connections at R582 million, 2 233 schools at R100 million and 50 clinics at R118 million. The programme is focusing on the creation of bulk infrastructure, especially in areas where it has become impossible to connect new households to the network without reinforcement. The erection of bulk infrastructure has enabled local development in the nodal zones, such as the O R Tambo District and Maluti-a-Phofung in the Free State. I am happy to announce that backlogs have been completely eliminated in the Kgalakgadi node in Northern Cape and in Western Cape schools. New jobs and SMME opportunities in KwaZulu-Natal, Eastern Cape and Limpopo have been created as a result of the non-grid electrification programme for schools. The maintenance of the schools will result in permanent jobs, which are defined in terms of non-grid learnerships that have been started. I am glad to note that the Minister and Deputy Minister of Education are here today. About 1 100 schools have been serviced under the non-grid electrification programme, which aims to fast-track school universal access to electricity. This represents more than EPD 19 May 2005 PAGE 64 of 204 50% of the total number of schools electrified in the past five years and this has been achieved in one year. School electrification . . . [Applause.] Andikagqibi. [I am not done yet.] [Laughter.] School electrification is done in parallel with the installation of e-learning facilities, that is, satellite dishes and the development of educational content, as well as computer installation, to ensure that our children become computer literate now, rather than later, like the children in Europe and other developed countries. [Applause.] Three co-operatives with full-time employees have been started in the Eastern Cape to maintain the 800 solar home systems installed under the previous electrification programme. A total of 40 000 households in the Eastern Cape, Limpopo, KwaZulu-Natal - you will remember that these are the provinces where we have the biggest backlog of electrification - are electrified using the same technology to provide lighting, using the facility for electronic communication. I now come to the liquid fuels industry. This industry will, for the first time, be licensed this year. The EPD 19 May 2005 PAGE 65 of 204 objective of the licensing framework, as detailed in the Petroleum Products Amendment Act, 2003, includes promotion of an efficient manufacturing, wholesalers and retailing petroleum industry; facilitation of an environment conducive to efficient and commercially justifiable investment; promotion of advancement of historically disadvantaged South Africans; creation of employment opportunities; and the development of small businesses in the petroleum industry. We also have an agreement with Mozambique on gas trade. The private sector and the Mozambique government have expressed an interest in building a petroleum pipeline from Maputo to Witbank. The Gas Trade Commission will facilitate this initiative until a petroleum products trade commission has been put in place. A feasibility study by Eskom, Shell and EGAS on the possibility of a gas-powered power station at Coega is underway. Gas for the project, if it goes ahead, will be supplied by Shell in the form of Liquefied Natural Gas, LNG, thus creating significant employment opportunities during the construction of a regasification terminal. An EPD 19 May 2005 PAGE 66 of 204 engineering study is in progress, and the agreement between participating members is to be finalised shortly. In December 2004 I launched one of the integrated energy centres in Matatiele, KwaZulu-Natal. We plan to launch an integrated energy centre at some municipalities between now and March 2006. This is a special programme for us, because it is a co-operative that sells or brings energy to our rural areas. And the members of these co-operatives are mostly rural women. I also want to report that the IEC in Matatiele has already started making profit. Andizi kunixelela ukuba yimalini, ngoba abanye baza kuya kuqhekeza. [Kwahlekwa.] [I will not disclose the amount, because others will go there and attempt robbery.] [Laughter.] We are very proud of the IECs, and we are going to launch new ones in Mushaweng in the Northern Cape in the coming financial year, in Ratlou in the North West; Motale and greater Tubatse in Limpopo; Newcastle in KwaZulu-Natal; King Sabatha Dalindyebo in Qunu, Transkei … I mean, Eastern Cape! [Laughter.] EPD 19 May 2005 PAGE 67 of 204 I wish to commend Sasol and Total for their continued commitment to the roll-out of IECs. The IECs are a beacon of hope to communities that government is beginning to deliver on its promise of giving them a wider variety of energy sources. My department, as you can see, is quite committed to women’s empowerment. And in that regard, we have, together with various institutions and the oil industry, assisted the facilitation of the setting up of Women in Oil and Energy SA, Woesa. We are going to continue to support Woesa. As we speak, the CEF, the Central Energy Fund, has taken a 49% stake in a R72 million hydroelectric plant near Bethlehem in the Free State, and has given the other stake to Hydro SA, which is an affiliate of Woesa. We therefore commend the CEF. I want to support the Minister by saying that we will continue to support SA Women in Mining Association, Sawima, and make sure that the industry, together with Sawima, comes on board as well. [Applause.] EPD 19 May 2005 PAGE 68 of 204 Again, I want to say that we as women in the department are not afraid of nuclear energy. [Laughter.] [Applause.] We have launched an organisation called Women in Nuclear South Africa, Winsa. Of course, this is a winning organisation. This organisation has held its annual general meeting, which was facilitated by the Department of Minerals and Energy in October last year. It has a very strong leadership and is represented in all the nuclear affiliates in South Africa. They are now doing an outreach programme in institutions of higher learning. They are also running awareness programmes on the peaceful uses of nuclear energy and nuclear science in South Africa. We want to invite all of those who are interested to join Winsa so that we can begin to grow and strengthen our women’s organisation. [Applause.] Our renewable energy strategy, to detail implementation plans for each of the technology options to be introduced during the 10-year period of the target, will be released in the third quarter of this year. The key elements of the strategy are: one, the development of market rules, which provides preferential access to the grid and customers for EPD 19 May 2005 PAGE 69 of 204 the renewable energy power producers; and two, the introduction of incentives to facilitate the development of viable business cases for the generators. We are in the process of developing a framework for the generation of power from sugar cane, baghas and lead-free gas. A roll-out programme for solar water heaters has commenced with the focus on middle-to high-income households in Gauteng, Western Cape and KwaZulu-Natal, including Ministers and Deputy Ministers and members of Parliament. The Central Energy Fund also spearheads this initiative. Siyabonga CEF. [We thank the CEF.] I am pleased to announce that a positive record of decision for the Environmental Impact Analysis of the Darling Wind farm was obtained. This has paved the way for the establishment of the IPP and construction of wind turbines. The Minister has already talked about paraffin. To demonstrate our serious concern about unsafe paraffin stoves, I am joining her. Nam ndithi phantsi ngeprayimazitovu, phantsi. [I say away with primus stoves, away!] EPD 19 May 2005 PAGE 70 of 204 HON MEMBERS: Phantsi! [Away!] The DEPUTY MINISTER OF MINERALS AND ENERGY: To address this crisis, we have completed the new national standard for nonpressure paraffin stoves and heaters. We are currently awaiting final approval from the standards approval committee at the SA Bureau of Standards. Ngokubhekisele kweza zitovu zerhasi, sithi masiphumeni kwiparafini singene kwizitovu zerhasi, eziya nizibona phaya phandle. Sicela ke amalungu ePalamente afundise abantu malunge nerhasi, kwaye abonise abantu ukuba eza zitovu zisebenza njani na. (Translation of Xhosa paragraph follows.) [With reference to those gas stoves, let us stop using paraffin and start using the gas stoves that you see outside. We plead with members to educate people about gas and also to show people how those stoves work.] The liquid-fuels charter has resulted in the transfer of over 18% equity to black hands. Masibaqhwabele. [Let us applaud them.] [Applause.] All oil companies have complied, EPD 19 May 2005 PAGE 71 of 204 with the exception of Sasol. [Interjections.] We urge Sasol to expedite all aspects of transformation as a matter of urgency. The oil industry has now shown further leadership by not only opening up their procurement but by also developing their suppliers. The oil industry has come together and contributed to the creation of the SA Supplier Development Agency, Sasda. I am proud to report that I launched the Sasda in PE in December 2004. Only four months later, the Sasda is already up and running. Potential suppliers can now log into the database and view the opportunities for the supply of goods and services. They can log on to Bhala phantsi [Write down.] . . . [Laughter.] . . www.sasda.co.za. The opportunities listed range from civil engineering right through to supplying valves. Ukuba unomzimveliso wakho okanye ivenkile esispaza ethengisa ii-valve kwaneempahla ezikhuselekileyo zokusebenza, faka isicelo. Oomama abathungayo, mabangen kule webhusayithi ze bathengise iiyunifomu kwiinkampani zeoli. (Translation of Xhosa paragraph follows.) EPD 19 May 2005 PAGE 72 of 204 [If you have your own factory or a spaza shop selling valves and protective clothing, put in a tender application. Women must log onto the website and start to sell the uniforms to oil companies.] We have a serious concern regarding compliance with the Mining Charter. Over the past 11 years, government has been emphasising the need for the management of South African mining companies to reflect the demographics of South Africa. This has been reinforced by the provision of the mining charter, which requires that by 2009 senior management of these companies must have at least 40% of blacks at senior management level. Loo nto ayenzeki. [That is not happening.] The HOUSE CHAIRPERSON (Mr N P Nhleko): Order! Hon Deputy Minister, I’m giving you a minute to wind up. The DEPUTY MINISTER OF MINERALS AND ENERGY: Many companies are paying lip service to these requirements. We have expressed ourselves in public when companies had the opportunity to transform, but failed to do so. Today, again, we want to express our exasperation and EPD 19 May 2005 PAGE 73 of 204 disappointment at the De Beers announcement on our Budget Day that it will replace one white male managing director with another white male managing director. This is the same company whose board of directors is lily-white and maledominated. Kukho abaTswana, omnye nababini, [They have one or two Tswanas,] but this is not a Botswana company; it is a South African company. There is not a single black South African on their board. Siyakhala. [We are complaining.] We want to ask De Beers: Is this how you show your commitment to transformation? Sifuna ukwazi naku Anglo American, kodwa ke siyancoma ngakubo ngoba ukhona uLazarus Zim phaya, ukuba: . . .[We want to hear from Anglo American; we applaud them because Lazarus Zim is available, if . . .] Is Lazarus Zim equal to the task of CEO of the entire company; from London to Beijing, to Russia, to New York? Makungenziwa i-separate development kwa-Anglo American. Sohlukana nayo ngo-1994. Kutheni kukho u-CEO wase-London, EPD 19 May 2005 PAGE 74 of 204 ongafaniyo nowalapha? Kukho owabelungu nowabantu abamnyama? (Translation of Xhosa paragraph follows.) [Anglo American must not engage in separate development. We parted with that in 1994. Why are there different CEOs, one here and one for London? Is there one for blacks and one for whites?] Lazarus Zim must be CEO of the entire company, just like his predecessor was. He was CEO of an international company before he was recruited to Anglo-American. [Time expired.] [Applause.] Mtsana N F MATHIBELA: Mohlomphegi Modulasetulo, Modulasetulo wa Komiti ya Phothofolio ya Diminerale le Maatla, Tona le Motlatšatona wa Diminerale le Maatla, lehono re gopola ge mmušo wola wa peleng wa kgethologanyo o be o laola batho ka moo o bego o rata ka gona, go fihlela ge re lwela tokologo gomme ra tšeya mmušo ka 1994. Mmušo wa lehono o laolwa ke ANC. Rena, re le ANC, re thekga tekanyetšokabo ya Kgoro ya Dimininerale le Maatla. (Translation of Pedi paragraphs follows.) EPD 19 May 2005 PAGE 75 of 204 [Ms N F MATHIBELA: Hon Chairperson, Chairperson of the Portfolio Committee on Minerals and Energy, Minister and Deputy Minister for Minerals and Energy, today we recall how people were harassed under the apartheid regime, until they fought for freedom and took over government in 1994. Our government is now led by the ANC. As the ANC, we support the budget as set out by the Department of Minerals and Energy.] As the ANC, we support the budget. Our support is largely influenced by the significant progress that the department has made in administering the budget, planning for delivery and development of human resource capacity. This progress is a move forward towards addressing the challenges facing our society and towards fostering a value system in which our people govern, as the Freedom Charter states. The Freedom Charter is the guiding document of all that the ANC government does in administering the resources allocated to the departments. The Department of Minerals and Energy has a clear vision, which is informed by the Freedom Charter. The vision of the EPD 19 May 2005 PAGE 76 of 204 department is sustainable development through minerals and energy resources for the benefit of all South Africans. This vision is guided by, among other values, Batho Pele ``Putting People First’’. In order to put people first, the department has devised five key programmes, of which the main one is administration. The purpose of this programme is to provide administrative support to the Ministry and the department with regard to financial information and supply-chain management, legal human resource, security risk management, communication, audit services and compliance. The administration programme of the department has five subprogrammes: Management Services, Finance Information and Supply Chain Management, Audit Services, Communication Compliance Office and Special Projects. Each of these programmes seeks to provide a support service to the core line-function components so as to deliver on the department’s key mandate. In the heart of the support service function is the intention to transform the Department of Minerals and EPD 19 May 2005 PAGE 77 of 204 Energy. In an attempt to address these challenges, the administration will focus on three strategic areas: human resource development, the review of structures and processes to improve service delivery, and the monitoring of state-owned entities reporting to the Minister. The aforementioned subprogrammes are allocated R111,364 million, which constitutes about 23% of the total departmental budget. Of the R111,364 million of the administration programme, 48% goes towards compensating employees, 45% to goods and services, and the remainder goes towards transfers, subsidies and capital assets. It should be borne in mind that the administration programme is one of the cornerstones of the six programmes of the department. It is therefore crucial that this programme always monitors the implementation of national policies and ensures the retention of the current skills that are available in the department. This will enable the department to contribute towards addressing the challenges that this new democracy has to deal with. It is also important to note that in order for delivery to take place, we need to continuously embark on recruitment EPD 19 May 2005 PAGE 78 of 204 and training of staff. This will enable the department to be in line with the government’s programme of intensifying employment equity. The department aims to reach 75% black representation at senior management level, 30% female representation at both senior and middle management levels, and 2% disabled representation by the end of 2005. We believe that these are achievable targets. These targets of employment equity will be supplemented by the implementation of the Preferential Procurement Policy to increase the number of previously disadvantaged South Africans into the industries and/or sectors covered by the department. This will also be monitored through the targets contained in the liquid-fuels charter and the Employment Equity Act. The government has noted that staff members leave the Public Service in general for the private sector in what they call a ``brain drain’’ process. This ``brain drain’’ also affected the Department of Minerals and Energy. In an attempt to make sure that we retain our staff, the department has developed a staff recruitment and retention policy and strategy. The administration programme will communicate all the achievements in this regard, as well as EPD 19 May 2005 PAGE 79 of 204 the activities that the department is involved in, both internally and externally. It is commendable to note that the department has, under our ANC-led government, been able to manage its resources in the most efficient way to achieve its objectives and targets. The current allocation will be spent well and will be used accordingly. To pursue the agenda of government, the ANC is proud to have employees who are prepared to serve the people at all times. We thank the Minister and the Deputy Minister for their leadership. A thank you also goes to members of the Portfolio Committee on Minerals and Energy for their oversight role and the debate they had on the Budget Vote and strategic plan of the department. Before I conclude, I wish to join the queue of those who have submitted their message of condolence to the family of the former Chief Executive Officer of the Mining Qualification Authority, Dr Menzi Mthwecu. He has done a great job at the MQA. May his soul rest in peace. EPD 19 May 2005 PAGE 80 of 204 We believe that everybody should support this Budget Vote if they need service delivery to the people who elected us. Let us vote yes to the Budget Vote and shame those who are not interested in progress and delivery, but in high-school debates for political point-scoring. I just wanted to make a little comment on the DA. Bakwethu, kubuhlungu namhlanje ukuthi ngoba sekubusa uKhongolose kuthiwe kune-radiation. I-DA iyakhala ngeradiation. Basusa abantu eLady Selbourne nakwezinye izindawo, babathatha babayisa ePelindaba. Le nto ibilokhu ikhona kodwa bengayiboni ukuthi izoba yingozi ebantwini. [Ihlombe.] (Translation of Zulu paragraph follows.) [My fellow people, it hurts that because the ANC is in government now, radiation becomes an issue. The DA is concerned about the radiation. They removed people from Lady Selbourne and other areas, placing them at Pelindaba. This thing was there but they did not realise then that it was harmful to people . . .] [Applause.] Mr L W GREYLING: Chair, hon Minister, it is clear that our world is changing rapidly around us. Our planet is heating EPD 19 May 2005 PAGE 81 of 204 up due to our continued emission of greenhouse gases, with enormous impact on all our natural resources. This environmental reality is also bringing about an energy revolution. The fossil-fuel age of the past 200 years is being seriously challenged as the world takes its first tentative steps towards the renewable energy revolution. There are certainly many forces and vested interests intent on holding back this revolution. This kind of resistance is often found at the beginning of a paradigm shift, though, and we cannot lose sight of the fact that in the next 50 years the transition to renewable energy systems around the world will speed up. For a country like South Africa, which has built its economy on a polluting mineral energy complex, the pressure to reduce our greenhouse gas emissions, which are currently the 14th largest in the world, will be immense. I believe, however, that it is not pressure that should bring about this shift, but the enormous opportunities that exist for a country like ours to be at the forefront of researching, producing and developing the renewable energy technologies for the future. EPD 19 May 2005 PAGE 82 of 204 Southern Africa has 80% of the world’s platinum reserves, which means that we must be the leaders in developing fuel cell technology. We have double the world’s average solar radiation, which means we should be at the forefront of producing solar thermal and PV cell technologies. Hon Minister, we should not be importing renewable energy technologies to meet our domestic targets, but we should be turning ourselves into a leading producer and exporter of these technologies around the world. To make this dream a reality, however, requires far more financial and human resources. We also need to dedicate more money to the Integrated Energy Planning Process so that the capacity of the department to independently plan scenarios for the next 50 years can be strengthened. Unfortunately, almost all research and development money has been swallowed up by the Pebble Bed Modular Reactor. In Eskom’s 2003-04 financial period, for instance, R380 million of the R500 million for research and development was given to the PBMR, leaving a measly amount for all other technologies. EPD 19 May 2005 PAGE 83 of 204 In the MTEF period we saw another R500 million transferred to this project, and this figure has now subsequently jumped to R600 million in this year’s budget. This fits the pattern of nuclear energy around the world, which has always experienced cost overruns and has never lived up to its initial promise of energy too cheap to meter. The independent economic feasibility study of this project warned of precisely this scenario and still we proceeded to pump vast sums of money into it. I was not surprised at the recent overreaction to Earthlife Africa, because this government has always been extremely sensitive to any criticism of nuclear energy. And quite frankly, the accusation that Earthlife Africa is pushing a European agenda is unfounded. I want to remind the House that in fact NUM, NUMSA and Cosatu have all signed up to the Nuclear Energy Costs the Earth Campaign. The nuclear summit last year was mysteriously cancelled at the last minute to avoid any embarrassment to the PBMR company, which was trying to drum up investors in France at that time. Since then I have tried on countless occasions and through various mechanisms to get this Parliament to EPD 19 May 2005 PAGE 84 of 204 hold the long-awaited summit. I have been blocked at every turn and have instead sat through countless briefings in the Committee on Environmental Affairs and Tourism by nuclear proponents with not one dissenting voice ever being given a chance to speak. It is no wonder then that the antinuclear lobby has had to resort to legal action to get their arguments heard. [Time expired.] Ms E NGALEKA: Chairperson, Minister, Deputy Ministers, hon members, ladies and gentlemen. Hon Greyling, I actually do not want to waste my time on you, but on a point of advice to you, please attend portfolio committee meetings, because that is where we get free education. Chairperson, 50 years ago, the Congress of the People gathered together to adopt the people’s charter, the Freedom Charter. In this regard, the preamble of the Freedom Charter states: We, the people of South Africa, declare for all our country and world to know: that South Africa belongs to all who live in it, black and white, and no government can justly claim authority unless it is based on the will of all the people; that our people have been robbed of EPD 19 May 2005 PAGE 85 of 204 their birthright to land, liberty and peace by a form of government founded on injustice and inequality; that our country will never be prosperous or free until all our people live in brotherhood, enjoying equal rights and opportunities. The most important clause of the Freedom Charter is the one that is pertinent to mining industries, the one that states that: The people shall share in the country’s wealth. The national wealth of our country, the heritage of all South Africans, shall be restored to the people . . . That is exactly what this government is doing now – . . . The mineral wealth beneath the soil, the banks and monopoly industry shall be transferred to the ownership of the people as a whole. This is exactly what the Minerals and Energy budget seeks to achieve as a strategic objective of government. The purpose of the Mineral Development Programme is to transform and promote sustainable development in the EPD 19 May 2005 PAGE 86 of 204 minerals and mining industry for the benefit of all South Africans. The ANC supports this Budget Vote. We don’t just support it because it is fashionable to do so, we support this Vote because it seeks to implement the Minerals and Petroleum Resources Development Act and associated legislation, as well as the mining charter. This Minerals and Energy Budget Vote seeks to enhance beneficiation of a basket of mineral commodities, improve employment equity in mining and implement a strategy to integrate social and labour sending areas. Therefore, supporting this Budget Vote is the right thing to do. This budget also sensitises all stakeholders in the mining industry to recognise that while there is a need for economic empowerment through minerals development, there is also a greater need to recognise that there are environmentally sensitive areas where mineral deposits may be located and that when contemplating mining in those areas, this should be borne in mind. In short, we have a responsibility to encourage responsible mining. EPD 19 May 2005 PAGE 87 of 204 Passing the Mineral and Petroleum Resources Development Act in 2002, the department began the transformation process for the mining sector. The main focus of the Act is to promote equitable access to the country’s mineral and petroleum resources. Through promoting small-scale and emerging mining enterprises, the department encourages the participation of new entrants into the mining sector. To address the constraint of access to finance, the department is involved in two initiatives, namely the National Small-scale Mining Development Framework and the Bakubung Initiative. The latter is a collaborative effort between the department and private sector that was started in 2000 to establish a fund that can assist emerging mining companies through capitalisation of their projects. On the other hand, the increasing formalisation of smallscale mining activities, for example the need to comply with legal requirements for environmental management and health and safety, may serve unintentionally as a barrier to small-scale miners. I believe, though, that with the cooperation of the government, these challenges can be overcome. EPD 19 May 2005 PAGE 88 of 204 Rehabilitation is not negotiable. We expect every miner to provide for rehabilitation in order for us to make sure that we leave an environment for the generations to come. Our late president, O R Tambo, said: Our struggle will be less than powerful and our national and social emancipation can never be complete if we continue to treat the women of our country as dependent minors and objects of one form of exploitation or another. Reflecting our movement’s commitment to equality in general, including gender equality, current South African legislation on women and mining is more progressive than existing international norms and standards, which do not encourage the employment of women for underground work owing to the potential danger of such work. The Bakubung Initiative should be to the benefit of women who have long been associated with small-scale mining. In contrast with the historical lack of involvement by women in the large-scale mining sector, women have entered smallscale mining primarily as a means of survival. EPD 19 May 2005 PAGE 89 of 204 As a result of the increasing trend in the mining industry towards small-scale mining and subcontracting, women are also entering into mining production through these avenues, as it requires lower levels of investment. This trend could pave the way for greater integration of women into mining with the necessary support provided by the department in terms of this programme. The main goal of the socioeconomic empowerment charter is to create an industry that will proudly reflect the commitment of a nonracial South Africa and the subsidiary goal is to achieve a 26% historically disadvantaged South African ownership of the mining industry assets in 10 years by each mining company. The charter also aims at empowering and developing small miners and women. This will endeavour to redress the past imbalances with the aim of including the previously disadvantaged South Africans into the mainstream of the mining sector. It also seeks to address issues of skills development, ownership and control of the sector by a significant majority of historically disadvantaged South Africans. EPD 19 May 2005 PAGE 90 of 204 The envisaged outcomes that will be derived from the broadbased socioeconomic empowerment charter as outlined in the strategic plan of the Department of Minerals and Energy are that 15% historically disadvantaged South African ownership should be reached in five years, 10% women participation in five years and 40% historically disadvantaged South African management in five years. The charter is a statutory instrument to support one of the key objectives of the Mineral and Petroleum Resources Development Act, which seeks to promote transformation in the minerals and petroleum industries, promoting access to all South Africans, employment equity, beneficiation, community development, and procurement and ownership. For too long raw materials have left the boundaries of this country for the developed countries. For too long our citizens have been robbed of opportunities to develop skills, create jobs and a better life that they deserve as South African citizens. Hon members, South Africa belongs to all who live in it, black and white. Government needs the co-operation of industry to ensure we add value to our minerals, create EPD 19 May 2005 PAGE 91 of 204 jobs and eradicate poverty. Let us recommit ourselves to making poverty history in our lifetimes. The impact of the above progressive legislation does not mean that there are no challenges faced by government and all of us who have committed ourselves to fighting poverty. [Time expired.] Mr K D S DURR: Chairman, I would like to say something that affects both the Ministers, this Minister, the Minister for Public Enterprises, and the Minister of Environmental Affairs. I think the hon member from the ID who spoke here is right, but I think he is going to be surprised by how fast the forcing technologies will develop because of the high oil prices. The high oil prices are forcing alternative technologies. Minister, it was recently announced by your colleague, presumably somewhere in Mpumalanga, that certain previously moth-balled, electric, coal-fired power stations would be recommissioned. Which power stations are these, which coalmines are involved and where are they located? I ask, because I’d like to know if the power station in Athlone in EPD 19 May 2005 PAGE 92 of 204 Cape Town, will also at some future time be considered in this recommissioning process. [Interjections.] It’s a serious question, because we would like to know what has changed, because these power stations were thought to be inefficient and were heavy polluters at the time of decommissioning. So, and it’s a serious question, what are we going to do to modify the plants, if we are going to recommission them, so as to cut pollution down to more acceptable levels in line with the Kyoto responsibilities that we have. Are scrubbers going to be added, and at what cost? Has Eskom considered injection, urea-based, additive technology, like SNCR technology, which is not being used in South Africa, but which can make deep cuts in Nox, nitric acid pollutants and other powder spray technology to reduce SO2? We all know we had big problems, and still have, with acid rain in the Mpumalanga area. [Interjections.] It is also vital that this be attended to, because during an inversion the Athlone power station has always been a major contributor to smog, with considerable attendant chest complications for the public. EPD 19 May 2005 PAGE 93 of 204 Minister, I would also like to ask you: If we are going to roll back the frontiers of poverty, I would, seriously, like to ask the Minister to look at the whole question of bureaucracy surrounding the issuing of simple licences, like sand-mining licences, the opening of building sand mines, that kind of thing. I am saying this because, as part of my oversight responsibility, I have been involved in an issue like this. One of my constituents approached me. It was a Black Economic Empowerment project that complied in all respects for a licence to mine sand on their property, but the bureaucracy was simply unbelievable. It’s almost impossible to make progress when one is stifled at every turn. The department throws the book at one. In the meantime, we have to transport building sand over 50 kilometres because of the incredible delays. The officials at the Cape Town Minerals and Energy Affairs office told me they have a backlog of, it sounds like hundreds, of applications, and that they could not deal with it. The HOUSE CHAIRPERSON (Mr N P Nhleko): Order! EPD 19 May 2005 PAGE 94 of 204 Mr K D S DURR: I was approached last September . . . The HOUSE CHAIRPERSON (Mr N P Nhleko): Your time has expired. Mr K D S DURR: If we are going to roll back the frontiers of poverty we’ll have to do something about this. [Interjections.] We will oppose the budget. Ms B TINTO: Igama lamakhosikazi! Enkosi, Sihlalo. Mphathiswa noSekela-Mphathiswa, uSihlalo wekomiti, amalungu eNdlu ahloniphekileyo namaqabane ndiyanibulisa. (Translation of Xhosa paragraphs follows.) [Ms B TINTO: The name of women! Thank you, Chairperson. Hon Minister, hon Deputy Minister, Chairperson of the Portfolio Committee, hon members and friends, I greet you all.] First and foremost, I want to send my condolences to the Mthwecu family . . . EPD 19 May 2005 PAGE 95 of 204 . . . ngokushiywa kwabo nguGq. Menzi Mthwecu obekade eyintloko yequmrhu ebizwa ngokuba yiMining Qualifications Authority nothe wasutywa kukufa ngesiquphe kwingozi yemoto. Ngokwenene kuthiwa isitya esihle asidleli. (Translation of Xhosa paragraph follows.) [. . . who recently lost Dr Menzi Mthwecu, who was the CEO of the Mining Qualifications Authority, to a car accident that instantly killed him. It is true that a nice vessel is not eaten out of.] May his spirit rest in peace. Having said that, I must say that the ANC supports this Budget Vote. Ndivumele ndikhumbuze le Ndlu ngengoma ethi: “Sisebenza emgodini kanzima, sisebenzela imali encinane.” Andizi kuyicula ke kodwa. [Kwahlekwa.] (Translation of Xhosa paragraph follows.) [Please allow me to remind this House of the song that says: “We work hard in the mines; we work for little EPD 19 May 2005 PAGE 96 of 204 money.” Unfortunately, I am not in a position to sing it. [Laughter.]] . . . which is loosely translated into English as: “We work hard underground in the mines for peanuts”. Sihlalo, amaqabane e-ANC ayazi kakhulu le ngoma. Ayayazi nale yayisithi: “Emazweni iFreedom Charter, bakhala ngayo.” [Uwelewele.] Zonke ezi ngoma sasizicula kuba sasifuna le nkululeko yanamhlanje siyifumane xa sisonke kubandakanya iDA noGreyling lo ungazanga weza ekomiti. Andizange ndambona uDurr ekomitini. Ndiyaqala ukumbona apha eNdlwini. Bendingamazi nokuba unayo nentetho elungisiweyo. Kambe siyabavumela ukuba bathethe ke bonke abantu. [Kwahlekwa.] USpies lo naye ufika ekomitini ahlale imizuzu emibini nemithathu ahambe. Baxakekile aba bantu. [Kwahlekwa.] (Translation of Xhosa paragraph follows.) [Chairperson, ANC comrades know this song very well. They know the one that says: “In other countries, the Freedom Charter, they talk about it.” [Interjections.] When we sang these songs, we were calling for the freedom that we are enjoying today; that which we would enjoy together with the DA and hon Greyling, who has never attended our committee EPD 19 May 2005 PAGE 97 of 204 meetings. I did not expect him to have a prepared speech. However, he is allowed to make a speech because our policy says that everybody should speak. [Laughter.] Hon Spies spends a few minutes in our committee meetings and leaves. These are very busy people. [Laughter.]] The content of the above historical song forms the bedrock of this Budget Vote. The history of South Africa has its own twists, turns, zigzags and tight knots, opposition parties and ruling parties, but we all agree, including the DA, as the Freedom Charter states, “South Africa belongs to all who live in it”. If we all agree with the Freedom Charter on this point, it then logically follows that we must also agree with the Freedom Charter, which states, “The People Shall Share in the Country’s Wealth!” This is a strategic goal, which needs strategic intervention. One of the interventions is to protect the producers of wealth so that they can benefit from the wealth that they have produced. In an attempt to achieve this goal, the ANC government introduced strategies and plans to promote health and safety in the mining sector in order to address the legacies of apartheid, in which the health and safety of blacks were not a serious concern for EPD 19 May 2005 PAGE 98 of 204 the minority government. These strategies and plans are echoed by the Department of Minerals and Energy’s mine health and safety inspectorate. The ANC government identified the purpose of the inspectorate as to protect workers and, to a greater extent, even bosses from accidents and other related occupational problems in the mining industry. The inspectorate also seeks to protect our people who are affected by mining activities. This also includes labour areas that are out of the centres where mine employees are drawn from, but who gravitate to mining sectors. The main objectives of the mine, health and safety programme is to reduce mining-related deaths, injuries and ill health by formulating national policy and legislation, and by providing advice and systems to monitor and audit compliance with the safety and health standards in the mining sector. The expenditure allocations for the mine, health and safety programme have been increasing for the past three years. This growth is expected to slow down to an annual average rate of 7%, taking expenditure to an expected R124 million EPD 19 May 2005 PAGE 99 of 204 in 2007-08. The bulk of this increase will go towards compensating employees. The identified major cause of occupational health and safety challenges are rock falls, rock bursts, fires and explosions, machinery and transport systems, physical hazards like noise and, lately, seismic events which have led to fatalities, vibration and airborne pollutants. However, it should be noted that the mining industry’s safety performance has improved in 2004. In 2004 the department recorded a fatality rate of 0,56 deaths per 1 000 employees, compared to 0,65 deaths per 1 000 employees in 2003. The recorded and reported injury rate has also declined from 10,3 per 1 000 employees in 2003 to 9,6 in 2004. These rates correspond to 4 254 injuries in 2003 and 4 301 injuries in 2004. This reflects a 1,1 % decrease in injury rate. In spite of these improvements, the fatalities and injuries are still cause for concern, since the department’s strategic plan has as its goal that by 2013 there should be zero fatalities. Therefore any accidents in the mine health and safety inspectorate are halting, or affects, the EPD 19 May 2005 PAGE 100 of 204 achievement of the target. We are also concerned about women’s safety underground. A target has been set for all 164 registered South African mines, which employs thousands of workers. In terms of demographics, the sector has 55% blacks and 45% whites. These workers come from diverse backgrounds. This raises the challenge of communication. Hence, we have a small percentage of women in mines . . . [Time expired.] [Applause.] Mr W D SPIES: Chair, the Mineral and Petroleum Resources Development Act appoints the state as custodian of all South Africa’s mineral resources. The state, in other words, legislated itself as a trustee, which is supposed to manage our mineral resources for the benefit of all South Africa’s people. The state, therefore, not only acquired very substantial rights but also obtained the duty to ensure that our mineral resources are exploited in a way that benefits the relevant communities. These ideals make sense if one takes that the government sees itself as a people-centred and caring government. But is government succeeding in this regard? The community of EPD 19 May 2005 PAGE 101 of 204 Stilfontein is currently experiencing its worst crisis since its establishment. The financial difficulties facing the Durban Roodepoort Deep Group resulted in more than 6 500 workers not receiving wages since mid-April. Despite the request by my colleague the hon Pieter Groenewald for the hon Minister to intervene in the Stilfontein crisis, I have been told by trade unionists that, so far, there have been a total absence and lack of action from government. While 6 500 households in Stilfontein are literally starving, up to now only the local community and trade unions acted by distributing food parcels. Why is government absent? The FF Plus really hopes that this is not a case where government actually entitled itself to certain benefits of custodianship while the responsibilities that are coupled with that are neglected. That brings me to the second issue of discussion. With the introduction of the new Act, government certainly acquired substantial rights with regard to our mineral resources. According to reports from the law societies, more than 2 000 notices have been served on the department for expropriation consideration claims, following the introduction of the Act. Were these claims budgeted for, EPD 19 May 2005 PAGE 102 of 204 and if not, is it the intention to oppose these claims in court? Judged conservatively, if only 10% of these notices eventually result in court cases, legal fees alone could end up at close to R100 million. This is more than half of the amount currently budgeted for mineral development. Just imagine the difference R100 million could have made in a community like Stilfontein. That being said, I would also like to focus on some positive aspects of this portfolio. It has been a privilege this year to witness the Minister and the department’s commitment towards the development of renewable and sustainable sources of energy. In this regard the visits to the Darling wind turbines and briefings about the conversion of state-owned buildings towards energy efficiency, amongst others, have been highlights in my involvement with the committee. I believe that these initiatives, though still on a small scale, demonstrate a commitment towards our future generations, which is applaudable. Let’s keep up the good EPD 19 May 2005 PAGE 103 of 204 work, but let’s try harder in regard to what is not so good. Thank you. [Applause.] Mr C D KEKANA: Mr Chairperson, hon Minister, hon Deputy Minister, chairperson of the portfolio committee, ladies and gentlemen, a lot of ground has already been covered. My topic is energy supply, in other words, electrification. A lot of ground has also been covered regarding this topic, especially by the Minister and the Deputy Minister. I will just talk a bit about the benefit of electrification. The Freedom Charter . . . and it seems like it is annoying some people when we mention the Freedom Charter . . . [Laughter.] Unfortunately we can’t help it, because the Freedom Charter has been the guiding document of all our achievements to date. The hiding that some people get at the polls is also as a result of the Freedom Charter. [Laughter.] The Freedom Charter has said there will be housing, security and comfort for all in South Africa. This Freedom Charter, and a lot of people have mentioned it in this House, is no more just the sole document of the ANC in this country. Instead, it has now graduated. It has actually EPD 19 May 2005 PAGE 104 of 204 become a document of all of us, of all the people of South Africa. We in the ANC support this budget, because the budget is providing for the interests of the people as chartered by the Freedom Charter. In 1994, when the ANC government took over in the new democracy, according to statistics, 50% of all households in South Africa were electrified. That means, only 50% were electrified and the rest were not. We can all guess who were not electrified. By 2003, 69% were electrified. Therefore, we moved from 50% to 69% of households that were electrified. The Minister has just updated that. She said that by 2005, 71% of all the households in South Africa were electrified. This is a remarkable achievement by all standards. In fact, the President of the country, in his state of the nation address, has said that by 2012 everybody in South Africa should be electrified. If you visit the remote areas, especially the rural communities, you will be surprised that there is electricity even in mud houses. Mo dintlong tse di agiwang ka mmu . . . [In sand houses . . .] EPD 19 May 2005 PAGE 105 of 204 . . . when you go in, people are not using cow dung to light fires for cooking. One woman said to me, these days we just touch the wall in order to cook. [Applause.] According to Reuel Khoza, Chairperson of Eskom, since 1994 every day 1 000 houses were provided with electricity. This comes to a total of 300 000 electrified houses within a year, and that has been continuous up to today. This is because of the burning desire, the urge of this government, to make up for the time lost during the dark days of colonisation. There are other sources of energy for lighting, for example candlelight, paraffin light and gas. The Minister has just told us that we are going back to gas, because there are now technical ways in which we can use gas in a more secure way. It is very useful and very user-friendly. Therefore, we are going back to gas. According to statistics, paraffin was used for lighting, and candlelight was also used more than gas for lighting. For cooking, paraffin, wood and coal were used. Some of us grew up using coal, and cooking with coal or wood can be a laborious process. When you woke up in the morning you had EPD 19 May 2005 PAGE 106 of 204 to chop wood, clean out the ashes from the stove and throw the wood in. At times you thought the fire was burning, but then it had died. [Laughter.] That would also happen when you came back from school. Those were the real hard days of colonisation. All those methods of cooking and lighting have declined, because more and more people are getting electricity today. Electricity is not just for lighting and cooking. We know South Africa has an urban and rural divide as far as economic development is concerned; and the urban area itself is divided into suburbs and townships. In the townships, the lighting of streetlights has been very important in restoring the social fibre and combating crime. You can imagine what happened in townships, where the crime rate was high, when the whole township’s streets were dark. That only encouraged crime. Now that the streets are lit, that at least, in a sense, helps us to restore the social fibre and combat crime. The development of urban and rural areas has been unequal and that has created a big imbalance. The installation of electricity in rural areas has assisted in building the necessary infrastructure for economic development, which is EPD 19 May 2005 PAGE 107 of 204 very important. The influx of people to urban areas, looking for greener pastures and a better livelihood, might stop in future, because instead of seeking jobs in urban areas, they can create their own jobs in rural areas. That will attract foreign investors. It will also promote small industries like carpenters and welders, because there will be a source of energy right there in the remote communities of the rural area. In fact, the World Bank, which I am not very fond of personally . . . [Laughter.] . . . has advised some countries to come to South Africa to learn from our rich experiences. Therefore, South Africa is no longer just a teacher politically after resolving the conflict at the Codesa negotiations, but it is now becoming a teacher in economic aspects. I understand that India has been here frequently, coming to learn how this thing is being done. The World Bank has been telling everybody in the world that they should go to South Africa if they want to learn how electrification can happen, because the best experts are South Africans. [Applause.] I want to conclude by saying that though we are doing very well with electricity, and the Minister has mentioned this, EPD 19 May 2005 PAGE 108 of 204 we shouldn’t forget that the source of our electrification is coal. Actually, 92% of all the energy generated in this country comes from coal. That being the case, though for now we are still safe, we must not forget that coal is a depletable resource. One day we might want to dig and there will be nothing in the hole. We’ve got to take precautionary measures. Therefore, this Ministry has decided to look for alternatives. Alternatives might be nuclear energy, renewable energy, gas and hydro energy, and so forth. The point is that research is being conducted to see how coal will one day be replaced. Lastly, it is very interesting that while we are providing for electricity, we are doing that at a very cheap subsidised rate with an indigency policy for those who cannot afford it. So, the words of the Freedom Charter have been echoed, the words that say, “We shall all share in the wealth of the country”. Thank you. [Applause.] Dr S E M PHEKO: Modulasetulo [Chairperson], the PAC supports this Budget Vote. I, however, want to point out that our liberation struggle for political power was a means to economic power. EPD 19 May 2005 PAGE 109 of 204 Our country is endowed with enormous wealth. There is hardly a mineral that is not found in our country. Gold is here; diamonds are here; platinum is here; chrome is here; cobalt is here; uranium is here; manganese is here; vanadium is here; the list is endless. The consequence of this, the paradox, is that this wealth does not benefit the African majority of this country, who are nearly 80% of the country’s population. Our country continues to be two South Africas: one very rich and non-African, and the other extremely poor and African. The consequence of this economic imbalance is that the rich South Africa, which is enjoyed by the minority, has been classified in the 19th position out of 173 countries of the world. This is close to Germany, Italy and Denmark. In contrast, the African South Africa has been classified in the 110th position out of 173 countries. This is why the PAC holds that the Freedom Charter is in fact a freedom cheater. [Laughter.] Sharing? Sharing what? The country belongs more to the minority than to the land-dispossessed Africans. Let us not delude ourselves! This is the political reality. [Interjections.] EPD 19 May 2005 PAGE 110 of 204 The evidence of a two-nation syndrome in South Africa is glaring. A mere ounce of gold sells for about R3 408, and that of platinum for about R6 624. All this wealth is dangerously dug by African workers in hundreds of tons, but does not benefit Africans economically. The poorest people in South Africa are Africans. The most unemployed people in South Africa are Africans. People who live in the squatter camps and match-box-sized houses are Africans. The worst victims of the Acquired Immune Deficiency Syndrome are Africans. Poverty . . .[Laughter.] . . . not only degrades, but also lowers resistance to diseases such as HIV/Aids. The mineral wealth in this country must be controlled and used in a manner that liberates the poor economically and socially. We must stop deceiving ourselves by saying: Freedom Charter, Freedom Charter, Freedom Charter, and hope that that will deliver; it will never deliver! [Interjections.] You know very well that we can agree with everything here, but when you tell us that the Freedom Charter is doing the trick, it is actually cheating the people. You know, Hitler EPD 19 May 2005 PAGE 111 of 204 was quoted as saying: “Because they repeated one thing again and again, people started believing it.” The Freedom Charter has betrayed the struggle in this country. [Interjections.] I’m raising this issue because there is a polemic in this Parliament that keep on saying Freedom Charter, Freedom Charter, and some people say that we who are sitting here accept the Freedom Charter. I don’t, because it has betrayed the land question. We say it belongs to all who live in it. Ngowuphi umlungu ohlala ematyotyombeni, ungandibonisa yena? Hee? Ndiyabuza? [Kwahlekwa.] Kaloku ndithe mna masisebenzeleni ukuba umhlaba wethu ubuye, hayi le nto nithi ungekho, niphinde nithi: “Hayi, ngowethu sonke.” Ayikho loo nto. [Kwahlekwa.] (Translation of Xhosa paragraph follows): [Which white man stays in the informal settlement - can you point him out to me? I beg your pardon? I am asking. [Laughter.] Remember that I said, let us strive for the restoration of our land, not saying this while the land is EPD 19 May 2005 PAGE 112 of 204 not even there, and yet you say: “No, it is for us all.” There is no such thing.] [Laughter.] Let us be realistic. Ayizange ibe kho into enjalo. [There was never such a thing.] I don’t want to be diverted from what I was going to say here, but . . . [Interjections.] . . . No, no, you can quibble as much as you like . . . The HOUSE CHAIRPERSON (Mr N P Nhleko): Order! Order! Order, hon members! Dr S E M PHEKO: The very fact that you are so intolerant when we respond to your input is because you are not sure! You must be sure. If you say that it is the Freedom Charter and we say that it is the freedom cheater, then you must explain that according to you it is the Freedom Charter and according to us the freedom cheater . . . [Interjections.] . . . Is my time up, sir? EPD 19 May 2005 PAGE 113 of 204 The HOUSE CHAIRPERSON (Mr N P Nhleko): Yebo, sesiphelile isikhathi, enkosi. [Yes, your time has expired. Thank you.] [Interjections.] Order! Hon members, the hon member couldn’t hear me. Baba, isikhathi obunikwe sona sesiphelile. [Hon member, the time allocated to you has expired.] Yes, that is what I meant. Dr S E M PHEKO: Ndiyabulela, kodwa masihambeni kulaa ndlela kaMjongwantshiyini, esafela umhlaba kuyo. Hayi le nto siyenzayo, yokudlala ngeenkosi zethu. [I thank you; however, let us follow the example of Mjongwantshiyini, in accordance with which some of us died for our land, and not do what we are doing, namely fooling with our traditional leaders.] We are from wars of national resistance for our land . . . [Interjections.] . . . and people come here and say that the land belongs to us, that it belongs to everybody. Only in a world . . . EPD 19 May 2005 PAGE 114 of 204 The HOUSE CHAIRPERSON (Mr N P Nhleko): Hon member, your time has expired. Baba, siphelile isikhathi sakho manje. [Hon member, your time has expired.] Hon members, I think we should try, particularly hon member Pheko, not to set bad examples for other members. When your time has expired and such a ruling has been accordingly given, it is important that we should respect that. Dr S E M PHEKO: I apologise for that, Chairman. The HOUSE CHAIRPERSON (Mr N P Nhleko): Siyabonga. [Thank you.] Mr C T MOLEFE: Hon Minister and hon Deputy Minister, I want to thank you for the empowering information you shared with us today. It not only benefited those of us who are here today, but even those who are at home. If you have time, we would love to hear more about these developments. Minister, you may have come later as there were time constraints here, so I don’t think it would help to respond EPD 19 May 2005 PAGE 115 of 204 to some of the things that were said by members of the opposition party for a number of reasons. A member of the DA here spoke about the electricity blackout in Gauteng earlier on. It is clear that they don’t even know what happened in Gauteng at that time. Unfortunately she is not aware that their member, the hon Schmidt, appears to be suffering from an information blackout. [Laughter.] It is a pity that as a member of this portfolio committee when we met yesterday, for instance, he couldn’t even raise these things. As with other members who were here – some of them have gone already – we’ll see them next year during the Budget Vote. They would want to claim that they have the interests of the citizens of this country at heart. Therefore, hon Minister, you do not have time to respond to some of these things, because for some members like the hon Schmidt, I think, to understand issues in this country we would need something like a week-long workshop. [Interjections.] EPD 19 May 2005 PAGE 116 of 204 Chairperson and Whip of this portfolio committee, I wish the hon De Lille was here because she promised the President that she was going to deal with these noisemakers . . . [Laughter.] . . . so that you can learn to listen, because we are trying to inform and educate you. [Interjections.] Director and your colleagues in the department, members of the portfolio committee and all the stakeholders, we must all be reminded that the fragile process of transforming the minerals and energy sector depends entirely on your shrewd leadership and conscious collective response to the daily challenges both here at home and internationally. As much as the apartheid system labelled our freedom fighters “terrorists”, we must not be surprised when conservatives view our efforts to redress and narrow the gap between the first and second economies as resistant bias against the previously advantaged. The hon Kekana said earlier that a lot of ground was indeed covered. I don’t know whether these people are informed or not because, for instance, when it comes to nuclear energy, EPD 19 May 2005 PAGE 117 of 204 65% of France’s electricity is generated from nuclear energy. Another member was talking about biodiesel and what not. I don’t know if this member is aware that on 4 May such a project was launched in the North West to the tune of R270 million. This project is going to employ, at the Barolong BooRatshidi, 800 people in the first phase. In the third phase 2 000 people will be employed. They will be the rural and desperate members of that community. So, I think, we need to be honest when we talk, especially when we have cameras in front of us. This is so that you don’t become Dr Goebbels in this country. When they were busy with anti-Semitism, they lied to the people. They did not want to be honest, not even with themselves. Why can’t we appreciate what we see? It was there in our media that this project was launched. So, instead of saying we were doing nothing as a country, you need to acknowledge that. [Applause.] The hon Kekana was saying that he wasn’t happy about the World Bank. I say, yes, I agree with him because energy is not only a challenge facing this country, but it is EPD 19 May 2005 PAGE 118 of 204 international. The World Bank’s energy policy stated the importance of providing energy in an environmentally sustainable and equitable manner. The problem is that this rhetoric is not matched by the reality of the bank’s investment globally - southern Europe, central Europe and Eastern Europe, hence the refusal of the USA to sign the Kyoto Protocol. The World Bank’s energy strategy paper, Fuel for Thought, is a high-quality document but unfortunately the World Bank lacks the political will to implement some of its good documents. That is why we are not even moving in Africa. This is because most of the sufferers in terms of energy are those people in the rural areas of Africa. That is why we are concerned as government; that is why we are concerned as communities. We need to commend the department on a number of victories or successes. We need to commend the department on their initiatives and efforts as they forged regional and global co-operation regarding energy and minerals in our land, and your signing, for instance, of the Kyoto Protocol, your tireless discussions with the Botswana government around EPD 19 May 2005 PAGE 119 of 204 diamond mining with regards to the De Beers marketing arm’s strategy, and the success of the Darling wind-pump project. However, we may need to intensify our research, education and information sessions in order to extend to quite a number of our communities, particularly those in the rural areas where there are minerals. This is because there are sharks out there that will push them into signing agreements in which, at the end of the day, they will be the sufferers. Chairperson, I do not want to waste much time, but if you are very generous I would love to give our Minister some time to wrap up the information that we enjoyed so much, because it is true that a lot of ground has already been covered by hon members. It is only unfortunate that even though this is energy efficiency month, some of our members here from the opposition party wasted the energy they had today. [Laughter.] I saw hon Schmidt showing us a voucher. Maybe that will help him, because I think he is in the dark about some of these things. This was a voucher he got from the LP Gas Safety Association of Southern Africa. EPD 19 May 2005 PAGE 120 of 204 I think, with regards to the hon Schmidt and after this Budget Vote, that when we go back to the level of portfolio committee we need to be honest with ourselves so that we guard against misleading this nation, so that we are truthful about the issues we raise. Just on Monday, members of the opposition party didn’t join us. It was only a member, as I’m told, the hon Oom Lucas, who joined us. I think everybody could hear that the hon member Lucas was talking as a statesman. He was talking as somebody who was concerned, not somebody who was worried about the transformation process because he viewed it as biased. You could hear that as a committee, we would make it and we would succeed, because of the help of the hon member Lucas. [Time expired.] [Applause.] The MINISTER OF MINERALS AND ENERGY: Chairperson, I want to thank all the political parties who participated in this debate and the fact that even my friends in the DA, notwithstanding, support the Budget. You are safe in my hands. Submit. [Applause.] I do have to say to the hon Pheko that to actually say that the Freedom Charter has betrayed the people is far from the EPD 19 May 2005 PAGE 121 of 204 truth and you know it in your heart of hearts. The fact that the PAC has not even governed a tribal land . . . There has never been people to believe and to follow you. [Applause.] . . . is a testimony of the bankruptcy of your politics. I am saying that, not because I do not agree with some of the things that you say, but I think this time you went too far. Having said that, this is a democratic country and you have the right to further hang yourself with a long rope and lose even more votes. [Laughter.] On the issue of expropriation that was raised by some of the members and the legal proceedings that they think are pending, I need to say that in our Act we provide for people to make these complaints. We believe that if people have a legitimate claim to make, if they have lost materially, obviously they should be compensated for. There are steps that are provided for, not only in our Act, but also in the Constitution for them to follow, in order to prove to us that they really have lost what they say they have lost. You cannot protect a right that you don’t actually have. If you did not acquire those mineral rights in a manner that suggests that you have lost something materially, then EPD 19 May 2005 PAGE 122 of 204 you really have nothing to claim. We are waiting for people to make those claims. I can promise you that they might end up owing us something. We will share with some of you when they pay us. [Laughter.] Even those international agreements that you are talking about, the agenda of transformation is above any international agreement. We have told those foreign governments that have tried to pull rank on those issues and they have backtracked. You must let those Italians whom you are trying to protect here tell you about their responsibility to the environment and to rehabilitation and they will change their tune. People must not come and mislead you and try to hide some of the challenges that they face as companies by saying that they are going to take us to court. Asibethakali thina. Ze basijonge kakuhle ke. [They cannot defeat us. They must watch us carefully.] On the issue of DRD, we are in constant touch with the liquidators. We are also concerned about the situation of those workers. To claim that this government has neglected those workers is far from the truth. The management of DRD, EPD 19 May 2005 PAGE 123 of 204 which is one of the most uncaring managements I have ever seen, has been horrible to those workers and we have engaged them time and again about the situation of the workers in DRD. In fact, just yesterday our department was instrumental in getting and committing R60 000 in order to make sure that those workers are able to get their remuneration. In fact, we have been putting pressure on all concerned to fasttrack this process. It is absolutely not true that we have abandoned those workers. We have also been working and are in constant touch with the NUM on how we respond to the situation. What I think is quite disturbing about Solidarity, actually, and the UDM, is that they came to our department to represent the interest of the white workers in DRD. What do you call that? That is unacceptable. We are concerned about all the workers in DRD as a department. A member raised the issue of the need for more exploration in South Africa. We are just as concerned, and in fact, if the Deputy Minister had finished her speech, she would have highlighted some of the things that the Council for EPD 19 May 2005 PAGE 124 of 204 Geoscience was doing in regard to looking at exploration. We are revisiting all our resources and reserves and on 23 May the Council for Geoscience will be launching . . . . . . ingadlangadla yento [something massive]. The airborne platform which they have purchased is an aircraft equipped with airborne geophysical instrumentation. This instrumentation measures properties such as the earth’s magnetic field, international radioactivity and the surface of the earth with the use of . . . . . . heyi, angisakwazi nokuzibiza lezi zinto, kodwa yinto nje eyingadlangadla. Singafumana idayimani ngisho nasenyangeni. [. . . I can’t even pronounce these names, all I can say is that it is something massive. We can even use it to mine diamonds on the moon.] [Laughter.][Applause.]] To ensure that we are even more sophisticated and thorough in our exploration, it will enable us to revisit our potential to discover kimberlites as well as hidden geological structures, dykes, nezinto nje eziningi [and EPD 19 May 2005 PAGE 125 of 204 many other things]. So, we are very serious about exploration. On the issue of mine health and safety – maybe, specifically, let me talk about the issue of Sterkfontein. The recovery of the water table there is actually something that we have been concerned about, the Department of Minerals and Energy, Department of Water Affairs and Forestry, the Department of Trade and Industry and the provincial government are working together. And, there is even the real possibility there that the water may in fact become a water resource. A study has been completed and we will make the results of the study known in due course. I also need to say that the provincial governments, especially in Gauteng, have actually been very good in cooperating with us in this regard. On the issue of accidents - and some members touched a lot on the progress that we have made - but we are not unconcerned by, for instance, the recent accidents and seismic activities, some of which we cannot explain. However, my team is working day and night to try and solve those issues. We don’t wait for the accidents to happen. The inspectorate is out there in order to promote safety. As we speak today, Driefontein is at a EPD 19 May 2005 PAGE 126 of 204 standstill because the mine managers are still struggling to fix the situation so that it satisfies us. My Chief Inspector of Mines is not afraid. He takes action and he takes it decisively. I think in all fairness to her, we should actually commend her and not give the impression that regulations governing the safety of mineworkers are not effective. [Applause.] On the issue of bureaucracy and licensing, especially as it refers to small mines . . . Mihla le namazolo. [Daily.] I don’t necessarily approve the licences, but I am briefed by the officials. Hardly ever does an application for a small mine take a long time. As we say, they are generally not that complicated and we want those people to get into the job as simply as possible. They do not have the complicated score-card requirements. If there is a particular situation or a region where there are problems, you should let us know. I also want to indicate that we have a new Chamber of Small-Scale Miners, which will be launched in June. Again, I also want to commend the leadership of that Chamber who EPD 19 May 2005 PAGE 127 of 204 are here tonight and have worked very hard to pull that together. Nansiya insizwa laphaya, izibambe ngempela. Iyasebenza ngempela leya nsizwa. [Over there is a gentleman who really works with dedication. That gentleman really works hard.] Like everybody else who has spoken, and even those who did not necessarily mention it, we are very saddened as a department by the death of Dr Menzi Mthwecu. He was one of the outstanding leaders that we had. He certainly was committed in every way you can imagine to the opening of doors in learning and culture. The work that he did in the Mining Qualifications Authority has left that institution with a legacy that we can only take higher and higher, because he has definitely raised the bar. That was evident by the accolades that the MQA was able to get from its peers and from the Department of Labour. We again would like to send a message of condolences to the family who are obviously still in mourning. The issue of nuclear energy should not be turned into a political football. We are very concerned about ensuring that the institutions that are entrusted with that task do EPD 19 May 2005 PAGE 128 of 204 their best and discharge their work effectively. South Africa is not a country that is violating the standards that we are required to adhere to. We recently received accolades from the IEA for the work that we do and the standards that we adhere to as one of the countries that deals with the nuclear industry. There is no threat in South Africa of abuse and misuse and the lowering of standards. I therefore would like to assure the community and those ex-workers of Necsa, who may feel that they have issues to raise with us, to come forward and raise those issues. In fact, we are doing an investigation ourselves, but from where we stand, we are not concerned that those workers are facing any danger. Nevertheless, to be cautious and careful, we are definitely going to be looking at them one by one. We will also make a public statement. Chairperson, I know I have exhausted your patience and maybe people will think that it’s because you are my homeboy that you are being nice to me. I thank you very much. [Applause.] EPD 19 May 2005 PAGE 129 of 204 HOUSE CHAIRPERSON: Hon Minister, it’s not necessarily my patience but it’s your time that you have exhausted. [Laughter.] Debate concluded. The Committee rose at 17:27 __________ ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS ANNOUNCEMENTS National Assembly and National Council of Provinces 1. Introduction of Bills (1) The Minister of Defence (i) Armaments Corporation of South Africa, Limited Amendment Bill [B 14 – 2005] (National Assembly – sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 27590 of 17 May 2005.] EPD 19 May 2005 (ii) PAGE 130 of 204 Defence Special Account Amendment Bill [B 15 – 2005] (National Assembly – sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 27590 of 17 May 2005.] Introduction and referral to the Portfolio Committee on Defence of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160, on 20 May 2005. In terms of Joint Rule 154 written views on the classification of the Bills may be submitted to the Joint Tagging Mechanism (JTM) within three parliamentary working days. 2. Membership of Committees (1) The following changes have been made to the membership of Joint Committees viz: Budget: Appointed: Mohamed, Ms F Discharged: Joemat, Ms R R National Assembly 1. Heading of Report EPD 19 May 2005 PAGE 131 of 204 The heading to the Report of the Portfolio Committee on Sport and Recreation, published in the Announcements, Tablings and Committee Reports of 17 May 2005 (p 795), contained an error, in that it indicated the date of adoption as 5 November 2005. It should read: Report of the Portfolio Committee on Sport and Recreation on Oversight Visit to Limpopo, Mpumalanga and Gauteng, dated 5 November 2004: 2. Membership of Committees (1) The following changes have been made to the membership of Portfolio Committees viz: Defence: Discharged: Rajbally Ms S Correctional Services: Appointed: Rajbally, Ms S Finance: Discharged: Bhoola, Mr R B Provincial and Local Government: Appointed: Bhoola, Mr R B EPD 19 May 2005 PAGE 132 of 204 TABLINGS National Assembly 1. The Speaker Report on the State of Performance Management Systems in the South African Public Service – July 2004 [RP 199-2004]. COMMITTEE REPORTS National Assembly 1. Report of the Portfolio Committee on Correctional Services on Visit to Lindelani Place of Safety in Stellenbosch on 19 October 2004: The Portfolio Committee on Correctional Services, having undertaken an oversight visit to Lindelani Place of Safety in Stellenbosch on 19 October 2004, reports as follows: A. Introduction EPD 19 May 2005 PAGE 133 of 204 The Lindelani Place of Safety is a facility run by the Department of Social Development situated in Stellenbosch in the Western Cape. The facility caters for children under the age of 15 years who are awaiting trial in terms of the Criminal Procedure Act, No. 50 of 1977. The facility was established in 1991 as a facility providing accommodation to children in need of care (for example, due to abuse in the home environment) in terms of the Child Care Act. However, since 1996 its mandate has changed to provide accommodation for awaiting trial children placed in terms of the Criminal Procedure Act. B. Delegation The following members of the Portfolio Committee on Correctional Services visited the Lindelani Place of Safety on 19 October 2004: a Mr. D Bloem (Chairperson) b Ms. LS Chikunga c Mr NB Fihla d Mr S Mahote e Mr MS Moatshe f Mr MJ Phala g Mr LJ Tolo h Mr CM Morkel Objectives of the visit EPD 19 May 2005 PAGE 134 of 204 The objectives of the visits were to: a Investigate problems and conditions within alternative institutions to prisons for children awaiting trial. b Focus on key areas of concern to the Committee including provision of education and training programmes, rehabilitation initiatives and the existence of gangs. Findings The following are the findings of the Committee in respect of the Lindelani Place of Safety: 1. Offender Statistics Lindelani has the capacity to accommodate approximately 60 children between the ages of 8 and 14 years. The majority of the children stay at Lindelani for less than 3 months. However, a few children may stay for longer than 6 months and one child has been in Lindelani for over a year while awaiting trial. Key issues and problems: a Many of the children do not receive visits from their parents as they come from all over the Western Cape and sometimes their parents cannot afford to travel to see them. In some cases, the parents have not been traced as some of the children were living on the streets. EPD 19 May 2005 b PAGE 135 of 204 A concern was raised by a member of staff that the separation of children in terms of age groups is not happening adequately and thus 8 year olds are kept with 12 year olds in the same sleeping quarters. 2. Education, Training and Recreation Schooling is compulsory and all of the children at Lindelani go to school on the premises. The children are grouped according to their competencies on four different levels ranging from Grade R to Grade 8. Many of the children are illiterate and have received no prior formal schooling. There are 6 teachers who provide education and training in the following areas: a Afrikaans b Numeracy and mathematical skills c Xhosa d Life orientation e English f Arts and crafts g Cane work h Leatherwork i Cooking skills j Computer literacy All children attend school in groups at different time slots throughout the day for about 2 hours in total a day. There are only about 5 or 6 children in a class, which allows the teacher to give each child sufficient attention. EPD 19 May 2005 PAGE 136 of 204 Key issues and problems: Educators used to be provided and managed by the Department of Education, but this has recently changed and now they will be accountable to the Department of Social Development. The implications of this change are still uncertain. In terms of recreation, it was stated that the children are mostly confined to their dormitories. They do have the opportunity to play soccer outside when the weather is good. While there is an existing covered courtyard area, the floors are not level and it is thus dangerous for the children to play in this area. The management expressed the desire for a swimming pool for the children. 3. Care Lindelani has the following professional staff available for care service to the children: a 2 occupational therapists. b 3 social workers, of whom 1 is on contract. c 42 child care workers and 2 child care contract workers. The facility offers 24-hour nursing care. Children are referred to Stellenbosch hospital when they require hospital care. A number of doctors are on call to the facility when their services are required. Children who have been identified as having extreme psychological problems are referred to an external psychologist. EPD 19 May 2005 PAGE 137 of 204 Key issues and problems: a The social workers develop an Individual Development Plan and longer term Care Plan for children when they enter and leave the institution. However, sometimes the Care Plan is not implemented by external role-players when the child leaves the institution because of, for example, a shortage of space in recommended facilities (such as reform schools). b A concern was raised that some of the care workers were not adequately equipped to care effectively for the children, even though they have all had some training in this regard. The planned establishment makes provision for 48 care workers but only 42 have been appointed. This means that at times there is only 1 care worker on duty in a dormitory for 20 children when 3 are required. 4. Security The child care workers provide security within the premises. External and perimeter security is outsourced to a private company. Three external staff members are on duty at any one time. The rooms where the children sleep are never locked, enabling the child care workers to keep an eye on activities in the rooms at all times. There are meant to be 3 child care workers on duty at any one time in the living areas. Key issues and problems: EPD 19 May 2005 a PAGE 138 of 204 The security fence around the perimeter is flimsy and it is very easy for the children to escape from the institution. The Department of Social Development has stated that there will be no funding for facility repairs during this financial year. b The rate of escape is high. Most escapes occur when the children are going to or coming back from school as the school is a short distance away from the sleeping facilities. Escapes also occur when the children are taken on outings. In one month alone, 17 children absconded from Lindelani of whom only 12 were returned or came back to the institution. It was stated that a number of children leave Lindelani to procure drugs. 5. Gangs and drugs Many of the children who come to Lindelani use hard drugs such as Tik and Mandrax even though they are very young. The need to procure money to buy drugs was cited as a reason by many of the children for their crimes. Some of the children stated that they do not have access to drugs within the institution but that they do have access to twak (tobacco). Prison-aligned gangs such as the 26s and 28s exist within the institution. The management of the institution explained that the children come from communities in which the gang culture is rife and they bring this culture into the institution when they arrive. In addition, even though Lindelani is not a prison but a place of safety, the children do not differentiate it in that way. Thus prison gangs as part of prison culture exist in Lindelani too. Rapes do occur within the institution. EPD 19 May 2005 PAGE 139 of 204 Key issues and problems: a The management states that one of the reasons for the high rate of escape is that the children want to go outside to procure drugs. b It is a concern that rapes occur within this facility amongst children of very young ages. 6. Policy and legislation The child care system is currently in a transitional phase. The Department of Social Development is in the process of review in order to identify needs and the most effective ways of addressing these needs in terms of the provision of State facilities. A policy framework will be developed by November 2004 and by December 2004 the review process should be completed. From June 2005, the implementation phase, together with staff of the institutions, will begin. Key problems and issues a While the review process is underway, financial decisions, particularly with regard to the upgrade of facilities, has been put on hold. In addition, institutions, including Lindelani, are in a state of flux and staff are unsure about the future of the institution. b The social worker at Lindelani stated that contrary to Section 29 of the Correctional Services Act, No 8 of 19591 which states that children awaiting trial must be 1 This section of the ‘old’ Act has not been repealed and remains in effect. EPD 19 May 2005 PAGE 140 of 204 brought to court every 2 weeks, lately there have been many postponements and this is occurring only on a monthly basis. c The social worker at Lindelani stated that there are problems around the legal representation of children, particularly in terms of the Legal Aid Board. Lindelani is taking measures to address this situation by faxing letters to the prosecutors asking for details of the lawyers attached to each case. Recommendations The Portfolio Committee on Correctional Services makes the following recommendations: a The facilities at Lindelani seem much better and more conducive to rehabilitation than those that the Department of Correctional Services can afford to offer to children. However, it is painful for the Committee to see such young children locked up in an institution. The Committee encourages the speedy finalisation and implementation of the Child Justice Bill and looks forward to the implementation of the spirit of the Bill that requires that all alternative measures be explored before placing a young child in an institution while awaiting trial. b The Committee identifies the lack of involvement by parents as a key concern. All efforts should be made to: ï‚· Facilitate access of parents to their children by, for example, ensuring that parents are located and know where their children are and assisting parents with transport costs to visit their children when they EPD 19 May 2005 PAGE 141 of 204 cannot afford to do so. The involvement of parents is a cornerstone to effective rehabilitation. ï‚· Hold parents responsible for their children. The location of parents by family finders has been identified as a problem by the Committee. Where family finders stationed at the courts are unable to do so, all efforts must be made by other role-players such as the prison or place of safety staff to ensure that parents are located. Where parents are in a position to do so, they must be encouraged to take responsibility for the care and well-being of their children and be provided with the support and tools to do so. c The Committee recognises the value of a review of the child care system and the need for long term planning. However, in the light of the high number of escapes at Lindelani, it is recommended that the Department of Social Development and the Department of Public Works take immediate measures to improve the perimeter fencing around the institution to reduce the chance of escape. The fact that many children who abscond do not return to the facility is a concern. In addition, it was reported to the Committee that decisions regarding the care of children are made by the management, with the idea that there is a high chance that these children will escape. For example, poor quality clothing and shoes (which last for a very short time and require constant replacement) are bought for the children because the management does not want to spend too much money on these items, which often disappear when the children abscond. It thus makes financial sense to the Committee that the fencing problem be addressed as a matter of urgency or other security measures be put in place to reduce escapes. EPD 19 May 2005 d PAGE 142 of 204 The lack of facilities such as reform schools has been identified as a central concern by the management of Lindelani. Social workers recommend the placement of sentenced children in reform schools but due to the shortage of space at these schools, children often have to wait for long periods of time before these become available. In the interim they may be returned to their communities and may commit additional crimes. The Committee recommends that sufficient facilities, such as reform schools, be provided by the Department of Education. e In addition, the Committee recommends that more efforts are made by the roleplayers in the relevant departments to coordinate efforts with regard to children in need. This includes, the police, correctional services, justice, social workers and education. Failure to coordinate may have important consequences for the child. It is the responsibility of all the departments to ensure that together they develop implementable strategies and ensure sufficient facilities to ensure that the rehabilitation of a child in trouble with the law is prioritised. f Cases against children must be prioritised and finalised as soon as possible to ensure that they spend as little time as possible in an institution while awaiting trial. The law stating that a child must appear before the magistrate every 2 weeks must be implemented effectively. g The Committee will call the Legal Aid Board to account for problems that have been identified in terms of the allocation of lawyers to children who require these services. The Committee will also submit a report on the findings and conditions at Lindelani to the Department of Social Development. EPD 19 May 2005 PAGE 143 of 204 Report to be considered. 2. Report of the Portfolio Committee on Correctional Services on Visit to Bonnytoun Place of Safety on 16 November 2004: The Portfolio Committee having considered and adopted the above-mentioned report, reports as follows: A. Introduction The following members of the Portfolio Committee on Correctional Services visited the Bonnytoun Place of Safety on 16 November 2004: ï‚· Mr D Bloem (Chairperson) ï‚· Ms LS Chikunga ï‚· Mr NB Fihla ï‚· Ms MW Makgate ï‚· Mr MS Moatshe ï‚· Mr MJ Phala ï‚· Mr LJ Tolo ï‚· Mr CM Morkel EPD 19 May 2005 PAGE 144 of 204 The objective of the visit was to: ï‚· Investigate conditions and problems within an alternative institution to prisons for children awaiting trial. ï‚· Focus on key areas of concern to the Committee including the provision of education and training programmes, rehabilitation initiatives and the existence of gangs. B. Findings The following are the findings of the Portfolio Committee on Correctional Services in respect of the Bonnytoun Place of Safety: 1. Context The Bonnytoun Place of Safety is a facility run by the Department of Social Development situated in Cape Town in the Western Cape. The facility caters for boys between the ages of 15 and 17 years who are in conflict with the law and are awaiting trial. Bonnytoun also has boys who have been sentenced but are still within the court process and are waiting for places to become available in other youth centres, such as reform schools. Boys under the age of 15 years are only accommodated in emergency cases, otherwise they are sent to Lindelani Place of Safety, which caters for younger children. 2. Statistics EPD 19 May 2005 PAGE 145 of 204 Bonnytoun currently caters for 160 boys between the ages of 15 and 17 years. During the first quarter of 2005, on completion of the renovation and furnishing of an additional dormitory, the facility will be able to cater for 190 children. 3. Education, Training and Recreation Bonnytoun offers educational as well as social and life skills training. However, these education and training programmes are not compulsory. The focus of the education and training programmes is to stimulate the learners and to provide courses that directly address their needs. This includes the provision of Adult Basic Education and Training (ABET) programmes, basic numeracy training and life skills training. Woodwork and other practical training programmes are also offered to assist them in developing skills which will be of use when they leave the facility. Bonnytoun has a library for use by the boys. Most of the books were donated or acquired by financial donations. Key issues and problems: The Inter-ministerial Committee on Children at Risk recommended as early as 1996, that the Department of Social Development take responsibility for providing education at the facilities run by this Department which include Places of Safety. From 1 September 2004, the Department of Social Services in the Western Cape took over responsibility for the provision of education programmes at Places of Safety from the Department of Education. Existing staff were given the option to remain with the Department of Education and change schools or to be employed by the EPD 19 May 2005 PAGE 146 of 204 Department of Social Services and remain at Bonnytoun. Before this transition, there were 11 educators at Bonnytoun. There are currently only 7 teachers remaining as a number of high calibre teachers took severance packages. It is hoped that the vacant posts will be filled by January 2005. The shift in responsibility from the Department of Education to Social Services has resulted in discontent amongst educators formerly hired by the Department of Education. Key concerns are around the process of transition, as educators felt that they were not timeously informed of decisions in this regard. A concern was raised that the Department of Education has historically paid less attention to facilities like Bonnytoun, which has operated on a small budget of R40 000 per year. Instead of addressing the problem it has merely transferred the problem to the Department of Social Services. Many of the boys at Bonnytoun have not attended school for a long time, some have worked in jobs already and others have even fathered children. This provides a number of important challenges to educators. The educators at the school have had no special training to cope with these specific problems and have had to learn ‘on the job’ how to deal with youth at risk. The curriculum of the Department of Education is not used at Bonnytoun mainly due to practical constraints such as the fact that many of the learners stay in the facility for short periods of time. Bonnytoun does not have the capacity to offer schooling to all the boys at the facility. Currently the only practical training offered to the boys is woodwork but the facility envisages being able to provide additional skills training such as EPD 19 May 2005 PAGE 147 of 204 plumbing, welding, bricklaying, needlework and computer training. Items are currently not sold to the public but the facility is exploring this option. 4. Care There are 102 childcare workers and 4 control childcare workers at Bonnytoun. There are 8 dormitories holding 24 youth each in Bonnytoun and each of these dormitories are controlled by 3 child care workers at a time. There are 4 child care worker shifts. Child care workers are responsible for providing emotional, physical and spiritual care for the youth at the facility. They are also responsible for dealing with challenging behaviour and for developmental supervision of the youth in their care. All child care workers will be retrained in terms of the minimum standards in line with the new service delivery model and new internal policies and programmes will be developed and implemented to give effect to this approach. There are currently approved posts for 5 social workers and 1 supervisory social worker of which 1 social work post is vacant. Three additional posts have been created for supervisory social workers. There are 2 nursing staff at Bonnytoun. Children are taken to the doctor if they require medical assistance as a doctor does not visit the facility. A working agreement has been signed between the Department of Social Services and the Department of Health with regard to cooperation with district surgeons who in terms of new legislation are required in order to administer medicines. The nursing staff mainly administer primary health care services. Medical problems reported include syphilis. HIV testing is done only on request. EPD 19 May 2005 PAGE 148 of 204 Key issues and problems: Bonnytoun makes attempts to ensure the reunification of children with their families but relies on the assistance of the social services district offices (social workers and probation officers) and non-governmental organisations for this task. Communication problems between role-players have meant that problems have resulted in this area. Corrective actions have been taken in this regard to ensure holistic and collective response to this problem. While the nursing staff focuses on primary health care they do not have any primary health care training. 5. Security There are four security personnel under the auspices of the Department of Social Services and eight private security personnel who provide security for Bonnytoun. The perimeter of the facility is patrolled every half hour. Key issues and problems: Approximately 2-3 boys escape from the facility each week. The perimeter fencing around the facility is made of barbed wire. There are a number of unused beds laying close to the fence. These are used by the boys to climb over the fence and escape. 6. Gangs and drugs EPD 19 May 2005 PAGE 149 of 204 The prison culture of gangs exists within Bonnytoun. The boys at Bonnytoun are allowed to smoke cigarettes. Drugs used by the boys in the facility include dagga and mandrax. Key issues and problems: Family members and visitors of the boys are often responsible for bringing drugs and other substances (such as ink for tattooing) into the facility. Searches occur but these measures are not foolproof. 7. Management, staffing and restructuring The Department of Social Services is in the process of restructuring the childcare services at its Places of Safety in order to develop a service delivery model that is in line with a right-based approach. The four phased process consist of the following: Development of a Care Plan Policy Development Organisational Development Implementation, monitoring and evaluation. It is envisaged that by the end of 2005, the new approach should be fully implemented. The effect of this restructuring means that Bonnytoun (as well as all other Places of Safety) is in a transitional phase. EPD 19 May 2005 PAGE 150 of 204 Key issues and problems: The manager of the centre was appointed in July 2004 in the capacity of acting manager. 8. Finances Bonnytoun had a budget of R17,5 million for 2004/05. About 79% is spent on personnel expenditure, 1% on capital expenditure and the remainder is used for the needs of the youth at the institution including their clothes, transport and food. Catering and cleaning services are both outsourced. Key issues and problems: The budget of the current cleaning service is R18 000 per month. The previous clearing service cost R35 000 per month. Allocation of tenders rests with the Department of Social Development and not with the facility. Even though cleaning services are outsourced, the facility is still not particularly clean. There are 6 cleaning staff for the facility. According to the person responsible for finance, the facility has not been audited for the last few years. The facility is in the process of aligning itself with the requirements of the Public Finance Management Act. C. Recommendations EPD 19 May 2005 PAGE 151 of 204 The Portfolio Committee on Correctional Services makes the following recommendations: The Department of Social Services needs to dedicate sufficient time and resources to fulfil its expanded mandate with regard to providing education at the facilities under its control. There needs to be clear channels of communication and collaboration between the Department of Social Services and the Department of Education in this regard. An area, which requires special consideration, includes curriculum development for facilities of this nature that typically cater for short-term learners. The continued assistance of the Department of Education, particular in curriculum development and design is essential as this is their core function and area of specialisation rather than that of the Department of Social Services. A second area that requires special consideration is that of ensuring adequate career pathing for teachers who will now fall under the auspices of the Department of Social Services rather than the Department of Education. In addition the Department needs to identify measures to attract skilled educators to jobs in these facilities. Education and training programmes for youth at the facility must be prioritised. It is noted in this report that the facility does not have the capacity to offer education and training programmes to all youth. In addition, the range of training programmes is still limited. Measures should be taken to ensure that all youth who want to access programmes are able to do so. In addition, children of compulsory school going age should be compelled to study. The Committee is seriously concerned at the apparent lack of security at Bonnytoun. The Committee heard that it is possible for the boys to abscond EPD 19 May 2005 PAGE 152 of 204 from the facility virtually at will, and that it is even possible for drug dealers to enter it to sell drugs. These matters obviously undermine the effectiveness of the care and education of the boys. The Committee therefore recommends to the Department of Social Development that urgent steps are taken (1) to improve the training, visibility and patrolling of the security staff, (2) to clear the perimeter area to ensure that nothing is lying around that can aid escapes, (3) to pressurize the Department of Public Works to repair the fence to ensure the perimeter is secure. Appointment of permanent management staff. The management of the facility has been in a state of flux for the last few years due to the restructuring process. The appointment of permanent management staff has become increasingly urgent in order to ensure effective implementation of the new vision for the facility. Family reunification is the cornerstone to ensuring a reduction in reoffending behaviour. Improving the relationship and communication channels between the management of the facility and external role-players such as probation officers, social workers and non-governmental organisations is thus essential. Measures must be taken to ensure that all staff are adequately trained to do their respective jobs effectively. These include, for example, that the nurses are trained in primary health care and that the teachers at the school are provided with additional training on how to deal with children with special needs. According to the financial manager the facility has not been audited since 2002/03. According to correspondence with the Auditor Generals office, it is common practice for the Auditor General to audit institutions of this nature on EPD 19 May 2005 PAGE 153 of 204 a rotational basis. Bonnytoun will apparently be audited in this financial year. The facility must ensure that it has the financial systems in place in line with the PFMA requirements. The Portfolio Committee on Correctional Services requires a written report from the Department of Social Services by the end of June 2005, on steps that have been taken to address these concerns and recommendations. D. Conclusion While the Portfolio Committee on Correctional Services has noted a number of problems in Bonnytoun Place of Safety it is clear that in comparison to prison, this facility offers a much better standard of care and protection for children in conflict with the law. The Committee will submit a report on the conditions and findings in Bonnytoun to the Department of Social Development. In addition, the Committee will interact further with the Department of Social Development on their role with regard to children and juveniles in conflict with the law as no child should be behind bars. Report to be considered. 3. Report of the Portfolio Committee on Correctional Services on Visit to Pollsmoor Juvenile Detention Centres on 15 October 2004: EPD 19 May 2005 PAGE 154 of 204 The Portfolio Committee having considered and adopted the above report on 15 November 2004, reports as follows: A. Introduction Youth in prisons are the priority of the Portfolio Committee for this Parliamentary Term. The Portfolio Committee received a briefing by the management of the prison, visited the prison facilities and spoke to the offenders. B. Delegation The following members of the Portfolio Committee on Correctional Services visited the Pollsmoor Management Area on 15 October 2004: Mr. D Bloem (Chairperson) Ms. LS Chikunga (ANC) Mr. S Mahote (ANC) Mr MS Moathse (ANC) Mr MJ Phala (ANC) Ms SP Rwexana (ANC) Mr LJ Tolo (ANC) Mr J Selfe (DA) Mr C Burgess (ID) Mr S Swart (ACDP) EPD 19 May 2005 C. PAGE 155 of 204 Objectives The objectives of the visits were to: a Determine the conditions under which young offenders are kept in Pollsmoor. b Communicate with the young offenders in order to identify the particular problems facing the youth in Pollsmoor including access to education and training programmes, recreational facilities and gang and drug related problems. The length of time that Awaiting Trial Detainees (ATDs) spend in prison before being sentenced is a central concern of the Committee. D. Findings The following are the findings of the Portfolio Committee on Correctional Services for Pollsmoor Management Area with respect to young offenders: 1. Offender Statistics The Pollsmoor Management Area consists of 5 centres. In total, Pollsmoor has the capacity to accommodate 4 336 offenders but there are currently 7 795 offenders in Pollsmoor. Children under 18 years are accommodated in B4 (sentenced children) and B5 (unsentenced children). The youngest offender in B5 is 13 years of age. Both unsentenced and sentenced juveniles between the age of 18 and 21 years are kept in Medium A. All females are kept in the Female Section. A worrying factor is EPD 19 May 2005 PAGE 156 of 204 that many of the youth have committed minor offences such as stealing chocolates or deodorant. The Portfolio Committee did not visit the Admissions Centre, which holds all adult offenders. This Centre is the most overcrowded in Pollsmoor. It has the capacity to hold 1 619 adult offenders and currently accommodates 3 989 adult offenders. 2. Statistics Centre Status Approved Total number Percentage accommodation of offenders overcrowding 84 118 140.47% 169 147 86.98% Sentenced B4 (under 18 years) Unsentenced B5 (under 18 years) 1128 Sentenced and unsentenced Medium A unsentenced 1111 154.63% 590 sentenced (18-21 years) Total 1718 119 Sentenced and unsentenced Female unsentenced 245 137.14% 217 sentenced (all ages) Total 336 EPD 19 May 2005 PAGE 157 of 204 Key issues and problems: a More than half of the juveniles at Medium A indicated to the Committee that they had been awaiting trial for over a year. Approximately 10 juveniles indicated that they had been awaiting trial for over 3 years and a few indicated that they had been awaiting trial for more than 4 years. b Many of the juvenile ATDs stated that they had limited or insufficient access to legal aid. c A small percentage of juvenile ATDs (about 5%) stated that they were given the option of bail but could not afford to pay the stipulated bail amount. d Many of the offenders stated that they did not know what plea bargaining was and that this was an option if they were guilty of the crimes they had been accused of. e Most of the youth and juveniles stated that they do not receive visits from their parents. This is particularly prevalent in the female section as Pollsmoor is the only facility in the Western Cape for female juveniles and thus many of the parents live far away from Cape Town. Families who come from far away require accommodation while they are in Cape Town, which is expensive. f Some sentenced offenders said that they had the option of paying a fine or imprisonment in their sentence but could not afford to pay the fine. 3. Staffing Issues Three new directors have been appointed for the Pollsmoor Management Area including directors of corrections, development and care, and finance. This will EPD 19 May 2005 PAGE 158 of 204 increase support at area level. The Area Commissioner identified the need for about 100 extra correctional officials for the prisons. The entire shop steward council has been suspended following the 26 May Industrial action. Hearings will be held soon. Key problems that have been identified include the lack of discipline amongst some staff, and corrupt behaviour such as the smuggling of drugs. The Area Commissioner stated that poor salaries is no excuse for corruption. 4. Education, Training and Recreation Most of the youth at Pollsmoor do not attend any schooling or training programmes. Key issues and problems: a Youth and Juvenile ATDs do not receive education or training and are locked up in their cells for 23 hours of the day. b Only very few of the sentenced offenders go to school or are provided with training opportunities. The sentenced offenders stated that they wanted to attend schools but could not do so due to the lack of staff and facilities in Pollsmoor e.g. only one cell can attend school at a time. c Offenders stated that there was little opportunity to participate in sports activities and appealed that such facilities be made available to them. 5. Care EPD 19 May 2005 a PAGE 159 of 204 The juvenile ATDs identified that they had limited access to social workers due to a shortage of social workers at the prison. b Sentenced offenders also stated that they had limited access to social workers and that this was particularly problematic as the Parole Board requires reports from the social workers when considering release on parole. c Offenders complained about discipline by correctional officials and stated that when one person misbehaved all of them were punished. 6. Gangs and Drugs Prison gangs such as the 28s and 26s are a serious problem in the prison. It was stated by offenders that it is almost obligatory to belong to a gang in Pollsmoor in order to ensure one’s safety and protection. ‘Franse’ (non-gang members) were treated badly in prison and required to work for gang members by washing their clothes and doing other chores. Some offenders stated that gangs provided discipline and control within the prison. Offenders stated that it is impossible to stop gangs within the prisons as they have been in existence for a very long time and the traditions are passed on from generation to generation. In addition, the gang culture is rife within the community outside, especially within the Western Cape where there is a strong relationship between civilian and prison gangs. Some offenders stated that because they have little opportunities to keep busy in prisons by working or studying they have little else to occupy themselves with other than gang business. At Pollsmoor gangs are not recognised by the Management and attempts are made to discourage gang membership. However the management of the prison has acknowledged that they EPD 19 May 2005 PAGE 160 of 204 are not succeeding in diminishing gang activity as the problem is not only within the prison environment but also reinforced by the external communities. Drugs are widely available within Pollsmoor. Some are smuggled in by members, others by offenders especially when they are escorted by the police to court cells. This year 9 members have been arrested for drug smuggling within Pollsmoor. Sometimes contractors working on the RAMP projects are also responsible for providing drugs to the offenders. Female offenders stated that there were no gangs in their section. However they had access to drugs of all types within the prison. 7. Independent Prison Visitor The juvenile ATDs expressed concern that they could not resolve problems through the Independent Prison Visitor (IPV). Some of the juveniles stated that they did not fully understand the role of the IPV and that they had limited access to his services. E. Recommendations The Portfolio Committee on Correctional Services recommends the following: a The Committee will have an urgent meeting with the Legal Aid Board to discuss problems which have been identified with regard to insufficient access of youth and juvenile offenders to legal representation. EPD 19 May 2005 b PAGE 161 of 204 In addition, the Department of Correctional Services (DCS) has a responsibility to ensure that all youth and juvenile offenders have access to legal aid and must take steps to ensure on their side that all attempts are made to secure this access. c The Independent Prison Visitors at Pollsmoor must take all measures to ensure that youth and juvenile offenders understand the role that they play and have full access to their services when required. d The prison authorities must identify all cases, where the youth and juvenile ATDs have been granted bail but cannot afford to pay this bail amount. The Committee is of the opinion that it is important to divert youth that is not a danger to society. The Committee understands that in some cases an ATD may have more than one case against him or her and thus bail may be granted for one case and not another, requiring the ATD to remain in prison. e The Child Justice Bill must be expedited as it will certainly assist young offenders. f The Committee would encourage the DCS to make schooling compulsory for all sentenced offenders of school going age in line with the requirement of the Correctional Services Act, No. 111 of 1998. This would also require the prioritisation by DCS of facilities and educators for this schooling. In addition, as many youth spend long periods awaiting trial, efforts should be made to ensure that ATD youth of school going age have access to educational programmes. EPD 19 May 2005 g PAGE 162 of 204 The existence of gangs within the prison system must be openly acknowledged and addressed by the DCS, especially with regards to younger offenders. The Committee recommends that concrete steps are taken by DCS to address the problem of prisons gangs. The Committee understands the problem of gangs in terms of the fact that gangsterism stamps out rehabilitation in that it perpetuates other problems within the prison such as rape, violence and drugs. h The Committee identified a case of a 14-year-old girl in Pollsmoor who was not placed in the care of her mother because her mother did not attend her sentencing. No attempt was made by the Pollsmoor management to contact her mother. The Pollsmoor management should resolve this issue and report to the Chairperson of the Committee on developments in this case. The Committee will interact with the Department of Social Development to discuss the role of this Department in caring for children in conflict with the law. Report to be considered. 4. Report of the Portfolio Committee on Correctional Services on Visit to Prisons in the North West and Mpumalanga Provinces, dated 15 March 2005: The Portfolio Committee on Correctional Services having undertaken an oversight visit to the North West and Mpumalanga provinces from 26 January 2005 to 04 EPD 19 May 2005 PAGE 163 of 204 February 2005, considered and deliberated upon the above mentioned report, reports as follows A. Introduction In a meeting on 15 November 2004, the Portfolio Committee on CorrectionL services decided to undertake an oversight visit to the North West and Mpumalanga regions of Correctional Services. B. Delegation The following members of the Portfolio Committee on Correctional Services visited prisons in the North West and Mpumalanga Provinces between 26 January 2005 and 5 February 2005. ï‚· Mr. DV Bloem (Chairperson) ï‚· Ms. LS Chikunga ï‚· Mr. S Mahote ï‚· Ms. MW Makgate ï‚· Mr. MS Moatshe ï‚· Mr. LJ Tolo The following Members submitted their apologies: EPD 19 May 2005 ï‚· Mr N Fihla ï‚· Mr MJ Phala ï‚· Ms SP Rwexana ï‚· Mr ET Xolo ï‚· Mr. J Selfe ï‚· Mr. C Morkel ï‚· Ms. S Seaton ï‚· Mr. B Biyela ï‚· Mr C Burgess ï‚· Mr S Swart ï‚· Mr I Mfundisi C. PAGE 164 of 204 Objectives The objectives of the visit were to: ï‚· Identify the impact of overcrowding on conditions within prisons in the region and on the working conditions of staff. Meet with staff at all levels within the prisons to discuss staff concerns and problems and identify possible solutions to these problems. Highlight the importance of discipline and respect amongst staff. Identify concerns around juveniles in prisons in the region. Interact with the Independent Prison Visitors and the Legal Aid Board. The Committee visited the following prisons in the region: EPD 19 May 2005 D. PAGE 165 of 204 ï‚· Potchefstroom Correctional Centre ï‚· Mogwase Correctional Centre ï‚· Losperfontein Correctional Centre ï‚· Rustenburg Correctional Centre ï‚· Witbank Correctional Centre ï‚· Barberton Correctional Centre ï‚· Nelspruit Correctional Centre ï‚· Barberton Town Unit Centre ï‚· Ermelo Unit ï‚· Bethal Correctional Centre Findings and recommendations The following are the findings and recommendations of the Portfolio Committee on Correctional Services: 1. Overcrowding Overcrowded conditions in prisons affect both offenders and staff working within those prisons. The following table represents the percentage of overcrowding in the 10 correctional centres that were visited by the Committee. Prison Approved Accommodation Actual Total % Occupation EPD 19 May 2005 PAGE 166 of 204 Potchefstroom 867 1921 222.3% Mogwase 572 1007 176% Losperfontein 808 1151 142% Rustenburg 628 1002 159.55% Witbank 2138 2828 125% Barberton Max 845 1 593 191% Med 631 787 124% Med A 137 136 99.2% Nelspruit 828 1467 189% Barberton Juvenile 535 533 99.63% Ermelo 512 415 - Bethal 707 1236 161.52% It is clear from the prisons visited that the level of overcrowding in the region is not uniform and differs from prison to prison. The most overcrowded prisons visited were Potchefstroom and Barberton, particularly the Maximum Section in Barberton Correctional Centre. The current strategy in the region to deal with overcrowding focuses on evening out the prison population by transferring inmates from more overcrowded prisons and dispersing them amongst prisons that are less overcrowded, as opposed to releasing inmates. Comments and Recommendations The Portfolio Committee on Correctional Services understands that the Department of Correctional Services (DCS) cannot be held solely responsible for EPD 19 May 2005 PAGE 167 of 204 resolving the problem of overcrowding in prisons. All role-players in the criminal justice system including the police, justice and social development have the responsibility to address problems in their sectors that result in overcrowded prisons. In addition, long term solutions to the problem of overcrowding in prisons need to focus on changing the sentencing practices of the courts, reducing the length of time that cases take to be resolved and ensuring that police investigations are completed quickly and effectively. However, in the shorter term, measures to decrease the prison population need to be implemented as a matter of urgency. The Committee recommends the following additional measures that should be initiated in the shorter term to reduce overcrowding in prisons: The DCS in conjunction with the Department of Justice should focus on educating court officials on the importance of using the range of alternative sentencing options available to them. The DCS should take responsibility for explaining to court officials the effect of their sentencing choices on inmates in prisons as well as on the staff of DCS and how overcrowded conditions in prison increase the possibility of recidivism. The DCS should redirect resources to enhance the Community Correction Programme. This will assist in improving the confidence of court officials to sentence offenders to supervision within the community. The Committee supports intersectoral priorities to reduce the caseloads of court officials and to improve police investigations to ensure more speedy EPD 19 May 2005 PAGE 168 of 204 resolution of cases which will shorten the length of time that Awaiting Trial Detainees (ATDs) spend in prison. All sentenced offenders who have appeared before the parole board and have been given dates for release should be released immediately unless they are serving sentences for violent crimes such as rape, murder and hijacking. All ATDs who are accused of non-violent offences and who have been granted bail of R1000 or less by the courts and not considered by the courts to be a danger to society, but are unable to afford the stipulated bail amounts, should be released. All sentenced offenders who have been sentenced to short prison sentences of 6 months and under should have these sentences converted to correctional supervision. All sentenced offenders who have been sentenced to the payment of fines of R1000 or less, and are in prison due to their inability to pay these fines, should be considered for alternative sentencing. 1.1. Intersectoral Communication Inadequate intersectoral communication between the various components of the criminal justice sector including the police, the courts and the prisons was highlighted on the visit as a key barrier to resolving the problem of overcrowding in prisons. Inadequate intersectoral communication results in numerous problems in the region including: Overcrowding in police cells. In the Klerksdorp management area, for example, the police complained that the police cells are overcrowded with ATDs who EPD 19 May 2005 PAGE 169 of 204 have not been shifted to the prisons due to overcrowding in the Klerksdorp and Potchefstroom Correctional Centres. Independent Prison Visitors (IPVs) identified a number of problems which require intersectoral solutions. These include the lack of information regarding the progress on attempts to lodge appeals by offenders; the unwillingness by prosecutors to prosecute cases initiated by inmates against the Department of Correctional Service (DCS) officials or other inmates; and the fact that South African Police Service (SAPS) officials arrest suspects before investigating cases which increases the number of ATDs in police cells and prisons. Inadequate investigation by the SAPS of assaults and other incidents which occur within the prisons grounds. Many inmates do not know the name of their lawyers (especially those from the Legal Aid Board). Inmates also stated that they did not want legal representation as they are told by the lawyers to plead guilty. In some of the prisons visited, the inmates do not know who the IPVs are or the role that they play in the prison. Some inmates identified racism in the courts as a factor leading to their incarceration. Specific instances include racism in Court B in Witbank. Comments and Recommendations The Portfolio Committee understands that it is only possible to resolve the problem of overcrowding in prisons by ensuring intersectoral solutions to the problem. Communication between the various sectors including the DCS, the SAPS and the EPD 19 May 2005 PAGE 170 of 204 Department of Justice is thus essential. The DCS must take responsibility for ensuring the effective functioning of cluster committees at all levels. The Committee recommends the following in order to ensure adequate intersectoral communication: The DCS Regional Office must be held accountable for ensuring the effective functioning of cluster committees on regional and area level. IPVs and the Legal Aid Board representatives must be included in cluster committee meetings on regional and area level. In addition, the Judicial Inspectorate must take responsibility for ensuring that the IPV and Legal Aid Board representatives at each prison meet regularly to discuss cases and problems. The cluster committees should investigate whether all ATDs in police cells need to be there or whether they can be released using the available mechanisms. Those ATDS who require incarceration in prison should be shifted from the police cells to the prisons by moving prisoners within the management area from overcrowded to less overcrowded prisons. 1.1.1. The Independent Prison Visitor The IPVs at each of the prisons must identify all cases where prosecutors have refused to prosecute cases initiated by inmates and resolve this problem in the cluster committees. IPVs together with the prison authorities should identify and report on all cases of ATDS (with first priority in this regard being given to juveniles in prison) who EPD 19 May 2005 PAGE 171 of 204 have been granted bail but have not been able to pay the bail amounts. Those who have been given bail of R1 000 and under for minor offences should be released. In addition, a review of the provisions of Section 63A of the Criminal Procedure Act are necessary to address this problem. IPVs together with the prison authorities should identify those ATDs who have been awaiting trial for more than 1 year (with first priority in this regard being given to juveniles) and discuss these cases with the legal representatives in order to identify the reasons for the delays. 1.1.2 The Legal Aid Board (a) Legal Aid Board lawyers should carry cards and supply these cards to inmates with their names and contact details. (b) Legal Aid Board representatives must visit the prisons on a regular basis to address inmates on their role and function and to explain the plea bargaining process and the Heads of Prisons should keep records of such visits. (c) The Department of Justice should address the concerns raised by the Legal Aid Board representatives with regard to poor payment for cases. (d) The representative of the Department of Justice on the regional cluster committee must investigate the accusation that a magistrate in Witbank denies bail to accused, including juveniles, based on racial grounds. 1.2 Ratio of staff to inmates The ratio of staff to inmates varies according to the extent of overcrowding in the prisons. Overcrowding has meant that, in many of the prisons, the ratio of staff to EPD 19 May 2005 PAGE 172 of 204 inmates at any can be very abnormal. One of the implications of the high ratio of inmates to staff means that correctional officials are unable to effectively secure the safety of inmates. In addition, shortages of staff also means that staff is unable to provide inmates with effective programmes and training opportunities as there are insufficient staff to guard them during these activities. This also affects the ability of staff to modify their approach from that of providing security to that of ensuring rehabilitation. The following table illustrates the number of staff in each prison in comparison to the number of inmates. Prison Staff (filled) Inmates Weekend Potchefstroom 218 1 921 97 Mogwase 153 (approved and 1007 112 1 151 135 financed) 142 (filled) Losperfontein 266( approved and financed) 66 (vacant) Rustenburg 150 (filled) 1 002 53 (financed) Witbank 746 2828 191 Max: 186 1593 146 Med: 164 787 66 Med A: 48 136 25 709 (filled) 37 (vacant) Barberton EPD 19 May 2005 PAGE 173 of 204 Nelspruit 164 1 467 106 Barberton Juvenile 117 (30 vacant) 533 79 Ermelo 83 415 42 Bethal 180 1 236 106 The policy of the DCS is that staff numbers are dependent on the approved accommodation and cannot be modified in terms of the level of overcrowding in the prisons. Thus more staff cannot be hired when prisons are overcrowded. Comments and Recommendations The shortage of staff in prisons militates against the ability of DCS to effectively rehabilitate inmates. In addition, high levels of overcrowding and the fact that staff numbers are not increased to deal with more inmates is a major factor in the declining morale of staff. The Portfolio Committee recognises that improving the ratio of staff to inmates can only be achieved by reducing the level of overcrowding in prisons. (a) Consideration should be given by DCS to making the policy on staff more flexible to allow for more staff to be hired in prisons that are identified as chronically overcrowded. (b) Changing DCS from a 5 to a 7-day establishment should include the provision that staff numbers on the weekend do not decrease dramatically. 2. Staff concerns EPD 19 May 2005 PAGE 174 of 204 The Portfolio Committee met with both management and staff in all of the 10 prisons to discuss key concerns and problems, which militate against their ability to function effectively in their work environment. Managers and staff highlighted concerns and also identified solutions to these problems. Most of the problems identified were common to all 10 prisons. The following are some of the key concerns highlighted by managers and staff: 2.1 Acting Posts The process of restructuring was due for completion in 2004 and yet staff identified that there are still numerous problems with regard to the filling of posts. In some cases, people are appointed to posts that have been identified as critical and yet have not been financed. This means that they are not paid the acting allowance that would be allocated to a financed post. Questions were raised by staff as to why such posts are identified as critical if they are not been prioritised financially. Unfinanced posts cannot be filled permanently and this results in numerous people filling acting positions for long periods of time, which is contrary to the policy of the DCS. According to the Regional Office many posts have been advertised in this region and there is momentum to fill these posts permanently. Comments and Recommendations EPD 19 May 2005 PAGE 175 of 204 The Regional Commissioner has committed himself to ensuring that those people filling acting posts, if deemed suitable, are made permanent if these posts are approved and financed. The high number of people filling acting positions in the DCS is unacceptable to the Portfolio Committee. The Committee strongly believes that no persons should be filling acting positions for longer than the 3 months as laid out in the policies of the DCS. If posts have been identified as critical then they must be financed and filled on a permanent basis. (a) The Portfolio Committee requests that the Regional Commissioner provides a list of all acting posts to the Committee within a period of 3 months after tabling of this report and identifies what action has been taken to get these posts filled permanently. (b) The DCS Head Office will be called in to account to the Committee as to why numerous critical posts have not been financed and to identify whether in the 2005/06 budget this problem has been addressed and sufficient funds made available to fund critical posts. 2.2 Shortage of Professional Staff The shortage of professional staff within prisons hampers the ability of DCS to fulfil its stated mandate of rehabilitation. For example, Potchefstroom Correctional Centre has only 1 social worker to serve 1 921 inmates. The shortage of social workers is especially problematic, as it is a requirement that an inmate must EPD 19 May 2005 PAGE 176 of 204 consult with a social worker before appearing before the parole board. The shortage of social workers means that parole hearings are often delayed. The DCS can take more than 2 years to fill vacant posts, which is extremely problematic particularly when professional posts such as nurses, pharmacists and social workers are concerned. Often, by the time the DCS has offered the posts to these candidates, they have already accepted other jobs. Poor salaries and difficult working conditions for professionals have been identified as key reasons for the inability of DCS to attract and retain professional staff. The need to offer improved salaries for professionals was identified as a priority by staff. Comments and Recommendations It is essential that there is sufficient professional staff within DCS in order to effectively implement the rehabilitation approach. Implementation of the White Paper, which outlines this focus, is impossible, without the support of a range of professionals. The Portfolio Committee requires a report by DCS, within 3 months after adoption of this report, on: (a) Developments to improve the salaries of all categories of professional staff employed by DCS to ensure that they are recruited and retained by the Department. EPD 19 May 2005 PAGE 177 of 204 (b) Measures which have been initiated to speed up the recruitment process for professional staff. (c) Strategies to improve the recruitment and retention of professional staff including scarce resources such as psychologists as well as social workers, nurses and teachers. (d) Identification of those correctional centres across the country which at the time of tabling of this report have vacant social worker posts, highlighting those centres which have no social workers at all and an explanation of what measures have been taken to address this problem. 2.3 Health Care Legislation and policy requires that nurses within the DCS are trained in primary health care and have dispensing licenses. However, many nurses complained that due to the shortage of nurses, they were not sent on training courses to acquire these qualifications. The slow process of medical release of terminally ill inmates has meant that in many cases seriously ill inmates die before their release is secured. In Klerksdorp Prison, for example, over 5 inmates died in the prison during the period June to December 2004 without successfully securing their release. A concern was highlighted regarding the release of inmates diagnosed with HIV/AIDS as it was felt that if they were released and received antiretroviral treatment they may recover and recommit crimes. EPD 19 May 2005 PAGE 178 of 204 The shortage of nurses is exacerbated by the perception that the workload of nurses has increased with the advent of HIV/AIDS. The shortage of nurses means that in cases where there is only one nurse for the facility and when the nurse is on leave, correctional officials are tasked with distributing medicines and providing care to the patients. The growing number of inmates affected by HIV/AIDS in prison was identified as a key concern. Nurses stated that many of the public hospitals are still making it impossible to ensure that infected inmates get access to antiretroviral treatment. In addition, the fact that DCS does not have its own doctors (though 7 posts have been advertised) and face a shortage of nurses, means that effective monitoring of infected patients (required for the treatment process) is impossible. The lack of a regional coordinator on HIV/AIDS as prescribed by the DCS HIV/AIDS policy was identified as a concern. Comments and Recommendations The Portfolio Committee is concerned about the high number of seriously ill inmates with HIV/AIDS seen in the prisons on this visit. The Committee recommends the following: (a) While the Portfolio Committee recognises that the shortage of nurses means that it is difficult to release nurses for training, it is vital that nurses are protected and practice within the requirements of the Nursing Act, No. 50 of EPD 19 May 2005 PAGE 179 of 204 1978 as amended. The Committee recommends that DCS investigates the possibility of sending nurses to part-time training in primary health care and obtaining dispensing licenses. (b) An HIV/AIDS coordinator for the region, as prescribed in the policy document, must be hired as a matter of urgency. (c) Head Office must take responsibility (together with the Regional Commissioners and the Area Commissioners) to ensure that the Department of Health fulfils its responsibility of ensuring that inmates have access to ARV treatment. Barriers to the acquisition of ARV treatment must be identified and solutions to this problem addressed, in conjunction with the Department of Health. The DCS must submit a report identifying barriers to access to treatment and solutions to the problem to the Portfolio Committee within 3 months of tabling of this report. (d) The Portfolio Committee requests a report on the policy and procedure regarding release of terminally ill inmates from DCS within 3 months of tabling this report. The report should identify barriers to effective implementation of the policy and detail solutions to these problems. 2.4 Promotion A moratorium was placed on promotions on 01 July 2001. During the visit, staff identified the lack of upward mobility as a key factor in demotivating members. Staff also feels that there is no incentive for them to study while employed by DCS, as there is no link between further studies and promotion. The reason cited for resistance to insignia is that staff feels that management have ‘climbed up the EPD 19 May 2005 PAGE 180 of 204 ladder and then kicked the ladder down’ and thus the wearing of insignia only brings home the fact that staff on the ground can never get promoted. Comments and Recommendations The Portfolio Committee recognises that the absence of a promotion policy within the DCS is one of the key factors that has led to the decline in staff morale. The Portfolio Committee will call the DCS in to explain why there has been a moratorium on promotion for so many years and to outline to the Committee what steps have been taken to address this problem and what time frames and deadlines have been established. 2.5 Incentives and Recognition Staff complained about lack of incentives for staff to embark on post qualification studies while employed by DCS, the lack of recognition for completed studies, for long service, and on retirement. In addition staff stated that merit awards were often given to the same individual for up to 5 consecutive years. Staff felt that the assessment process was not objective as it relies on the ability of staff to write and communicate effectively, rather than on an objective assessment of how well they perform their work functions. Staff requested that management explain clearly the criteria on which assessments are based. EPD 19 May 2005 PAGE 181 of 204 Many of the staff members who have worked in the DCS for over 10 years stated that they were concerned that their salaries were less than those of newly appointed members. They stated that they are not financially rewarded for long service. Comments and Recommendations The low morale of staff was a feature of all the prisons visited on this study tour. While many of the problems faced by staff are more difficult to rectify, the problem of lack of incentives and recognition for ongoing good work or past service is not. The provision of incentives for post basic qualifications acquired by staff while employed by DCS are important in order to motivate staff to continually improve themselves and thus provide a better quality service. In addition, recognition of long service and acknowledgement and thanks on the retirement of staff are important rewards for service. It is only courteous to thank staff on retirement after long periods of service. The DCS should explore innovative and creative ways of rewarding and acknowledging staff. If financial constraints are a problem, then rewards may even be non-monetary, outside funding could be found to fund tokens of appreciation or the skills of prisoners within workshops could be harnessed in this regard. The Committee recommends the following: EPD 19 May 2005 (a) PAGE 182 of 204 The DCS should consider changing the personal assessment system to a performance-based assessment system to ensure a fairer and more objective system to assess the performance of staff. (b) The Portfolio Committee requests a report from DCS within 3 months after tabling this report, on steps that it will take to ensure that staff are motivated to perform effectively including measures that it will take to improve the assessment process and to reward staff for long service or ongoing good work. 2.6 Overtime The DCS is currently functioning as a 5-day establishment, which means that work during the weekend is paid out as overtime. Due to financial concerns with overtime payments (and a decision by National Treasury to cut the overtime budget) as well as additional benefits that will result, it is necessary for the DCS to move to a 7-day establishment. Staff complained that they are only paid for 3 out of 4 days of overtime taken. The fourth day can only be compensated for by a leave day. Leave can only accrued for a period of 12 months after which it is forfeited. Staff feel that they would prefer to be paid for work that they do rather than be given leave as compensation. In addition, they raised concerns that the shortage of staff means that other staff members suffer when staff take leave that is owed to them in lieu of overtime pay. Staff also stated that the shortage of staff on weekends posed a security risk to both staff and inmates. EPD 19 May 2005 PAGE 183 of 204 The key problem identified by staff is that there is insufficient communication by Head Office with members on the ground on this issue. Members are afraid that they will take a drop in salary and want to know if this is the case, so that they can plan for this eventuality. Other concerns raised related to Resolution 1 of 2004 which allows for members to be paid at a lower level for weekend work than they get paid during the week. Comments and Recommendations The Portfolio Committee supports the decision to move from a 5-day to a 7-day establishment. However, at the same time it is clear that the concerns of staff around a decrease in take home pay that will result from this change need to be taken very seriously by DCS management. The Committee recommends the following: (a) The DCS must communicate directly with staff on the ground on this sensitive issue, to explain the process that will be embarked upon to implement a 7-day establishment, the effect that this will have on members and the pay that they take home each month. (b) The Portfolio Committee will interrogate the DCS management on the financial implications of the move to a 7–day establishment during the budget process, especially with regard to the effect on individual members. (c) Resolution 1 of 2004 should be reconsidered. EPD 19 May 2005 2.7 PAGE 184 of 204 Communication Staff within DCS is not adequately informed on key issues and developments within the Department. The staff feels that they are not heard within the Department and that there is no un-confrontational platform to make their views heard and understood. In addition, it was clear that problems, which should be communicated and resolved at local, area and regional level, are not effectively addressed. Staff feel that they are not timeously informed by management on key issues that effect their work, such as developments with regard to overtime, and that they thus need to rely on the unions for this information. Generally, the Minister of Correctional Services who is seen to be antagonistic to staff concerns and problems. Comments and Recommendations The reliance on DCS on communication in written form does not seem to be effective, especially when staff have serious problems with the changes that are occurring around them and that impact on their work and their lives. The Committee recommends the following: (a) A structured process must be urgently put in place at all levels within DCS to ensure effective communication between management (on national, regional, area and local prison level) and staff at prison level. This process should include regular opportunities for representatives EPD 19 May 2005 PAGE 185 of 204 from Head Office, the Regional Office and the Area Offices to meet with and talk to staff on the ground to discuss key issues that affect working conditions. Verbal communication is important and written memorandums should not be identified as the key component of communication. In addition, staff must be given the opportunity to discuss and identify their concerns in a non-threatening environment and management needs to take these concerns seriously and identify constructive ways of addressing them. (b) The DCS must report to the Committee within 3 months of tabling of this report, on problems that they have identified with regard to communication with staff on the ground and steps that they have taken or will be taking to address this problem. (c) Staff has recommended that speeches by the Minister of Correctional Services be broadcasted live in all centres. 2.8 Medical Aid In the past, medical aid for staff was fully subsidised. Due to a number of financial concerns, including the fact that staff was abusing the scheme, a decision was made to change the medical aid to a partially subsidised scheme. This has meant that all staff now have to pay a proportion of the medical aid monthly payments. Staff has identified concerns, including that they had not budgeted for medical aid payments and that the premiums have resulted in their taking less money home than previously. In addition, staff feel that while they are now paying for this service they are not receiving sufficient benefits in return and that, in many cases, the scheme has very limited allocations for various health areas. EPD 19 May 2005 PAGE 186 of 204 Comments and Recommendations The DCS must identify problems with regard to the new medical aid scheme and report to the Committee within 3 months after tabling of this report on steps that have been or will be taken to address these problems. In addition, the DCS top management must take responsibility for effective communication on this issue and for ensuring that staff on the ground is aware of DCS initiatives to improve the medical aid provision. 2.9 Education Teachers in many of the prisons visited complained about the shortage of classrooms and teachers, which means that they are only able to deliver education and training courses to a limited number of inmates. Comments and Recommendations The provision of educational and training programmes at prisons has been identified by the Portfolio Committee as a key component of rehabilitation, and especially important in terms of young offenders of school-going age. The Committee recommends the following: (a) The DCS must report to the Portfolio Committee on completion of its investigation into the feasibility of making educational programmes EPD 19 May 2005 PAGE 187 of 204 compulsory for all youth of school going age as both the Correctional Services Act, No 111 of 1998 and the South African Schools Act, No 84 of 1996 provides for compulsory schooling for juveniles of schoolgoing age. (b) The Regional Commissioner should provide a report to the Committee, within 3 months after tabling of this report, identifying shortfalls in teachers and classrooms for all prisons in the region, with a specific focus on shortages that effect youth of school-going age. (c) The Portfolio Committee will call the DCS in to account during the budget process for 2005, on financial constraints in providing educational and training programmes for offenders, in line with their objective of rehabilitation. 2.10 Community Corrections Members involved in community corrections complained about lack of staff and vehicles, which hampers their ability to monitor parolees and probationers effectively. It was identified that at least one of the community correction offices on the study tour did not have even one vehicle at the time of the visit to use for monitoring probationers or parolees. Staff in community corrections raised the concern that the training that inmates receive in prison is discontinued when they enter community corrections. Comments and Recommendations EPD 19 May 2005 PAGE 188 of 204 The Portfolio Committee believes that the community corrections component of DCS needs to be prioritised and capacitated as it offers an important alternative to imprisonment and could greatly assist in decreasing overcrowding within prisons. It is presently under resourced and that is identified as a major reason that magistrates refuse to use this option when sentencing offenders. The Committee recommends the following: (a) The DCS must ensure that community corrections offices have the basic tools to do the job effectively, which includes sufficient vehicles for monitoring parolees and probationers as well as adequate person power. The Regional Commissioner must report to the Committee within 3 months of tabling this report on key shortages in the region and measures that have been taken to rectify these shortages. (b) The Portfolio Committee will interrogate the issue of improving the budget for community corrections in the budget process of 2005. (c) The DCS should investigate strengthening links with the Department of Labour when inmates are transferred to community corrections with the goal of ensuring that training opportunities for parolees and probationers can be continued while they are under the community corrections programme. 2.11 Disciplinary Process and Grievance Procedure Staff identified a perceived bias in disciplinary hearings, particularly by chairpersons of the hearings. In addition, staff complained that they are not EPD 19 May 2005 PAGE 189 of 204 allowed to have legal representation at disciplinary hearings (they are allowed to be accompanied by union officials) while the DCS has the assistance of legal staff. In cases involving inmates, inmates are allowed to have their lawyers present but staff is not. Staff felt that they were not receiving feedback on grievances lodged to the department and that grievances were taking too long to reach Head Office. Comments and Recommendations The Portfolio Committee believes that the internal disciplinary process within DCS is an important tool for reinstating discipline and respect within the Department and that all measures should be taken to ensure that these processes are effective, fair and acceptable to both staff and management. The Committee supports the call by DCS Head Office to hold managers accountable for checking on the quality of investigations during disciplinary processes and to subject lenient decisions to automatic review. The Committee recommends the following: (a) Chairpersons of hearings should receive intensive training on how to manage hearings of this nature fairly and objectively. (b) The issue of allowing legal representation for staff at disciplinary hearings is valid and should be negotiated in the appropriate forum, such as the Bargaining Council. EPD 19 May 2005 PAGE 190 of 204 2.12 Transport Many members complained that DCS does not provide transport for staff, which is especially problematic for night shift workers, those working in rural areas and those living in newer extensions that are far away from the prison. Comments and Recommendations While the Portfolio Committee recognises that the provision of transport to staff has budgetary implications, it is clear that when there is no or limited public transport system available and when it is dangerous for staff to travel at night, the DCS should ensure that transport is available to staff to ensure their safety. a. The Regional Office should audit all prisons in the region to assess the status of the transport problem and identify those prisons where it is necessary for DCS to provide transport. The Regional Commissioner must report to the Committee within 3 months of tabling this report on the status of transport within the region (i.e. which prisons provide transport to members) and whether there are prisons in the region that qualify to be provided with transport by DCS and yet do not do so. 2.13 Implementation of the White Paper It has been identified that the ability of staff to implement aspects of the White Paper, such as the requirement to move from a security to a rehabilitation model EPD 19 May 2005 PAGE 191 of 204 and the implementation of unit management, is constrained by inadequate facilities, high levels of overcrowding and insufficient number of staff. Many staff members raised the concern that the policy requires a movement to a rehabilitation approach but that security concerns remain the priority as there are insufficient resources made available to implement rehabilitation, even in identified Centres of Excellence2. Low morale of staff was identified as an additional constraint to implementation of the White Paper. Staff are demotivated due to a number of fundamental concerns including the fact that they feel that they are losing financially (as a result of increases in payments to the medical aid scheme, low annual increases and the reduction of overtime payments), the longstanding moratorium on promotion and the lack of incentives for good service. Staff felt that the DCS has spent a lot of money developing policies which are not implementable. Comments and Recommendations The Portfolio Committee supports the DCS approach to phase in implementation of the White Paper by piloting it in identified Centres of Excellence. However, there is some concern that staff, even in these identified Centres, do not believe that they have the facilities or other resources to implement the requirements of the White Paper. Of more concern to the Committee is the widespread apathy of 2 The DCS has identified 36 prisons countrywide as Centres of Excellence to pilot implementation of the White Paper. EPD 19 May 2005 PAGE 192 of 204 staff toward implementation of the approach of the White Paper which will require dedicated, committed and motivated staff for its success. The Committee recommends the following: (a) The DCS must provide the Committee with the White Paper as amended by Cabinet as well as the costed implementation plan within 2 weeks of tabling of this report. (b) The DCS must provide the Committee with detailed information, within 3 months of tabling of this report regarding the criteria for deciding on the 36 Centres of Excellence around the country and an outline of the staffing (including professional staff), facilities and additional resources made available to the Centres of Excellence to implement the White Paper requirements. 2.14 Compliance with the Correctional Services Act Staff at many of the prisons stated that they were unable to comply with various sections of the Correctional Services Act, No. 111 of 1998 particularly in relation to mealtimes for offenders. Some prisons serve three meals a day but cannot serve the evening meal after 4pm, due to staff shortages. Other prisons still only serve 2 meals a day - supper and lunch are served together and inmates take their supper back to their cells. Comments and Recommendations EPD 19 May 2005 PAGE 193 of 204 While it is understood that overcrowding in prisons and staff shortages militates against the ability of staff to comply with the requirements of the Act, it is essential that DCS comply with the legal requirements, which have been agreed to in Parliament. The Committee recommends the following: (a) The DCS must ensure that the necessary resources are available in each and every prison to ensure compliance with the mealtime requirements of the Act. (b) The Regional Commissioner must provide the Committee with a report detailing which prisons in the region comply with both the number of meals and the time frame between meals requirements. The report should identify those prisons that do not comply and provide reasons for this lack of compliance. (c) The Portfolio Committee will interrogate the issue of financial constraints to compliance with the Act in the 2005 budgetary process. 2.15 Transfers Many staff members identified that they had been placed to work in prisons far from their hometowns and that they had applied for transfers to prisons closer to their hometown. Comments and Recommendations EPD 19 May 2005 PAGE 194 of 204 (a) Recruitment should be nation wide but placement after training should take into consideration proximity to the areas in which people come from. (b) Resolution 7 was applied to match and place persons but needs to be revisited administratively to ensure that members of staff are placed closer to their hometowns. 2.16 Bagless prison policy Staff stated that the bagless policy is not applied equally to all levels of staff and that female staff members are not provided with facilities to store their handbags, the contents of which may be needed during a working day. Comments and recommendations (a) Accessible lockers for the storage of handbags should be made available in all prisons. (b) The Head of Prison is responsible for ensuring that the policy is applied equally to all staff in the prison, including management. 2.17 Assistance to staff Some prisons such as Losperfontein, for example, stated that they do not have an Employee Assistance Programme (EAP) at the prison to assist staff with personal and work related problems. EPD 19 May 2005 PAGE 195 of 204 The Regional Commissioner gave his assurance that an EAP officer will be deployed to Losperfontein as soon as possible. Comments and recommendations (a) The Regional Commissioners must give a report to the Committee within 3 months after tabling of this report, identifying which prisons in the region do not currently have EAP officers, identifying the reasons for this as well as proposed solutions. 2.18 Danger Allowance Members complained that, according to policy, danger allowances are paid for staff working with maximum sentenced offenders but that staff that work with ATDs do not get paid this allowance even though the ATDs with whom they work may be extremely dangerous. In addition, some staff suggested that the danger allowance be increased. It was also suggested that families of staff killed in the line of duty receive a substantial lump sum payments such as the R200 000 payment given to the SAPS in these circumstances. Comments and recommendations (a) The DCS must review the policy on danger allowances and report back to the Committee on this issue within 3 months of tabling of this report. EPD 19 May 2005 PAGE 196 of 204 2.19 Recreation and clubs Members complained that money was deducted from their salaries for recreational clubs that were not functioning. The recreational clubs were stopped without entering into discussions with members. Members have been unable to get their contributions back from these funds. Comments and recommendations (a) The DCS must give urgent attention to recreation and club facilities for members. (b) The Committee requests that the Regional Commissioner address the problem of contributions and ensure that members receive their money back, and must report to the Committee within 3 months after tabling of this report, on action taken in this regard. 2.20 Basic working conditions Staff at a number of prisons visited complained about the lack of basic facilities to ensure that their jobs could be completed effectively and without undue hardship. These complaints included, for example, the lack of toilets for members in the courtyard at Barberton Town Centre, and the lack of toilets or lighting for those on guard duty at that same facility. EPD 19 May 2005 PAGE 197 of 204 A number of commitments were made by the Regional Office to address these problems. These include: (a) The problem of lack of lighting and toilets for staff in Barberton Town Centre. (b) The lack of an ambulance at Barberton Town Centre. (c) Incomplete security fencing at Ermelo Correctional Centre. Comments and Recommendations A number of problems highlighted at the visit could be resolved relatively easily by the relevant management tiers in DCS. The Committee is concerned that action is only taken by the various levels of management in the region when visited by the Portfolio Committee. (a) The Regional Commissioner must report to the Committee within 3 months after tabling of this report on what steps have been taken to rectify the problems mentioned above. (b) In addition, the Regional Commissioner, together with the Area Commissioners and Head of Prison, must report to the Committee within 3 months after tabling of this report with regard to what processes have been put in place to ensure that problems of this nature are quickly rectified, without it being necessary for action to be taken only after a visit by the Portfolio Committee. 3. Discipline and respect EPD 19 May 2005 PAGE 198 of 204 The Portfolio Committee is concerned about the lack of discipline and respect amongst some correctional officials. Ill-discipline has serious consequences for the effective running of the Department and can even result in corruption such as abetting inmates in escapes and smuggling illicit substances into the prisons. During the visit, staff acknowledged the problems of ill-discipline and disrespect but also forwarded that the problem of ill discipline amongst staff has a number of causes. Some stated that respect and discipline are not part of the training curriculum for staff, which means that new recruits come into DCS with little understanding of how to behave appropriately in the DCS context. In addition, it was noted that some members in senior management positions are themselves illdisciplined and come to work late or drink while on duty, which means that staff do not have appropriate role models to emulate. Comments and Recommendations The Portfolio Committee recognises that the problem of ill-discipline and disrespect amongst staff needs to be handled holistically. The Portfolio Committee expects staff and management to show mutual respect toward each other. However, the Committee also believes that all instances of ill-discipline must be severely dealt with and that concerns that staff have with their managers, should be raised in the appropriate forums. The Committee recommends the following: EPD 19 May 2005 PAGE 199 of 204 (a) The training curriculum for new recruits should include basic training on expected standards of behaviour within the DCS including the protocol with regard to communication with superiors and procedures for dealing with disputes or problems. (b) A recommendation was made by one of the staff members on the visit that some form of intelligence unit should be established within the DCS that would have a number of purposes. The key function should be to identify and collate intelligence around inmate activity that could be a threat to security but a secondary and related function would also be to collate intelligence on corrupt practices of staff. The Committee recommends that the DCS investigate the possibility of developing a unit of this nature and reports to the Committee within 3 months after tabling of this report on its findings in this regard. (c) Strong action must be taken against ill-disciplined staff members and the internal disciplinary process must be strengthened to ensure this and be improved to ensure fairness within the process. 4. Juveniles During its visit, the Committee identified the following problems with regard to juveniles: (a) Staff members are unclear about the status of the draft youth policy and raised the concern that this draft policy lacks specific guidelines for staff on how to handle juveniles appropriately. EPD 19 May 2005 PAGE 200 of 204 (b) During the visit, the Committee was surprised that a very high number of juveniles are in prison serving sentences for rape. In Rustenburg Correctional Centre, it was stated that about 70% of all juveniles were serving sentences or awaiting trial for rape. (c) As there is no correctional centre for youth in the Northern Cape, many of the juveniles are taken to prisons in other provinces, such as Rustenburg Correctional Centre in the North West Province, which are far away from their homes and family. It is thus impossible for them to receive visits from family and friends. In addition, youth (and other offenders) are sent to prisons in the areas where they have committed the offence, rather than to prisons in the area in which they live, which again means that it is rarely possible for them to receive visits from family or friends. (d) Staff members noted the importance of ensuring that juveniles under the age of 18 years attend school and raised concerns that juveniles are allowed to choose whether they want to participate in education programmes. In addition, concerns were raised that due to the shortage of teachers and facilities, even those juveniles who want to attend educational programmes cannot always do so. (e) Some juvenile sections and facilities identified a dire shortage of social workers, psychologists, educationists and medical staff. At Barberton Town Centre, which is a facility for juveniles, for example, there is not one social worker at the facility, as the post is vacant. (f) A number of sentenced juveniles were identified in the prisons (for example, in Witbank Correctional Centre) with very short sentences of under 6 months, some of who had even had the option of a fine but could not afford to pay. EPD 19 May 2005 PAGE 201 of 204 Comments and Recommendations The Portfolio Committee believes that youth especially those under the age of 18 years do not belong in prison. The Committee supports the commitment by President Mbeki, in the State of the Nation Address to ensure that the number of children housed in prison is drastically reduced. This should occur primarily through diversion from the criminal justice system but also by ensuring that there are sufficient alternative care facilities in the country for those children who require placement in these facilities. However, the Committee also believes that out of all offenders, it is those young offenders who are incarcerated in prisons that could be most successfully rehabilitated to ensure that they do not recommit crimes on release. Young offenders should thus be targeted for access to educational, training and treatment programmes. The Committee also feels that those young offenders accused of non-violent crimes who are deemed by the courts not be a threat to society, as illustrated by the fact that they have been granted bail of R1 000 and under, but who are in prison as they could not pay the stipulated bail amounts should be released. The Committee recommends the following: (a) Youth should be transferred to prisons in the area in which they live rather than in the areas where they committed the crime in order to facilitate EPD 19 May 2005 PAGE 202 of 204 continued contact with family, which is an essential component of rehabilitation. (b) The DCS should explore the feasibility of establishing a youth correctional centre in the Northern Cape, to ensure that young offenders from this province remain close to family and friends. (c) Both the Correctional Services Act, No 111 of 1998 and the South African Schools Act, No 84 of 1996 provides for compulsory schooling for juveniles of school-going age. Some correctional centres lack the facilities and resources to provide such compulsory education. The Portfolio Committee urges the DCS to take progressive steps to ensure that the provisions of the law in this respect are adhered to, and requests that the DCS report on the implementation of these steps on a regular basis. (d) The Area Commissioner for Barberton must prioritise the appointment of a social worker for Barberton Town Centre. (e) The Regional Commissioner must report to the Committee, within 3 months of tabling of this report on identified shortages in all juvenile centres with regard to professional staff including teachers, trainers, social workers, psychologists and health care professionals. (f) The Portfolio Committee requests a report from each prison visited on steps that have been taken with regard to juveniles identified with short sentences or option of a fine who were earmarked on the visit for release. These include about 7 juveniles at Witbank Prison sentenced to 3 months imprisonment. 5. Mother and Baby Care EPD 19 May 2005 PAGE 203 of 204 The Committee visited a number of mother and baby units in the various prisons during the visit. While in some cases, such as at the Ermelo Prison, it seemed as if the quality of care and stimulation given to the babies and young children who are kept with their mothers in prison was of a very high standard, considering the context, in other prisons, such as at the Nelspruit Prison, this was not the case. In one case it was noted that a child of 5 years still remained with her mother in the facility. Of even more concern was the fact that the children at this facility were seldom taken out of the prison to explore the outside world and did not attend crèche outside of the prison. This is of particular concern in that apparently the offer of a crèche had been made available to the prison, but had not been taken up by the relevant management. (a) Babies and young children who stay with their mothers in prison should be taken outside of the prison on a regular basis to experience the outside world. (b) All children above the age of 2 years old should go to crèche outside of the prison. The prison management must take responsibility for liaison with the community in which the prison is suited to make arrangements of this nature. (c) The Regional Commissioner must give a report to the Committee within 3 months of tabling of this report detailing the number of babies accompanying their mothers in prison in the region and outlining which of these children attend crèche and which of them get taken out periodically to experience the outside world. The report should identify the ages of each child. The report should also identify steps that will be taken to ensure that children receive adequate stimulation both within the prison environment and outside of prison. EPD 19 May 2005 D. PAGE 204 of 204 Conclusion In conclusion, the Portfolio Committee on Correctional Services has gained more appreciation and insight into the difficult conditions under which DCS staff work, exacerbated by overcrowding and the lack of adequate resources. The lack of communication between various levels of management and staff in this region is of serious concern and must be addressed immediately, as it negatively impacts on the effective functioning of the correctional centres. The Portfolio Committee on Correctional Services will monitor measures to implement the recommendations outlined in this report and will meet with the Regional Commissioner responsible for the North West, Limpopo, Mpumalanga region within 6 months of tabling this report, to discuss progress on implementation of the recommendations. Report to be considered.