Tag Archive | department of economic development

New Competition Bill invades business principles

 

Competition kill is not transformation, say critics

Due to an idealogical theme imposed by the Minister of Economic Development, Ebrahim Patel, on the new Competition Amendment Bill, recently published for comment, South Africa can expect a highly charged series of hearings following the Bill’s recent tabling in Parliament. Competition Bill

 

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Infrastructure Development Bill modified and passed

Minister responds on land issue….

ebrahim patelThe Infrastructure Development Bill recently tabled by Ebrahim Patel, minister of economic development, appears to have avoided major confrontation as a result of re-wording of the provisions it contained regarding expropriation of land for major projects, the Bill having originally granted the state the right to expropriate land where a development project, declared as a Special Infrastructure Project (SIP), was concerned.

The Bill was passed by the National assembly and recently went to the NCOP for concurrence. Recent reports indicate it was passed.

Most submissions criticising the Bill said that the new proposals completely overstepped the mark on the question of expropriation but minister Patel has now assured all parties that such expropriation, if it took place because of a SIP, would be in terms of existing legislation when it came to the acquisition of land needed.

PICC oversight will cost project

In terms of the Bill, each SIP is to have a steering committee which will put in place time frames; attempt to deal with regulatory delay challenges; address project management and ensure the coordinated issuing of permits and licences but the PICC budget for the particular SIP would have to be funded out of the departmental budgets or those of the state-owned companies responsible for managing a project.

The Bill also gives the stamp of approval to PICC, the body which has adopted the National Infrastructure Plan of 2012 that intends to “transform the SA economic landscape while simultaneously creating significant numbers of new jobs, and to strengthen the delivery of basic services by planning and developing enabling infrastructure that fosters economic growth.”

Expropriation to be as presently defined

But the Bill as introduced into Parliament overstepped the mark on the question of expropriation when it came to ensuring that a SIP became a national priority and the minister has indicated that a new cause has been drafted to make it clear that any expropriation required in terms of the strategic integrated projects will be carried out in accordance with the provisions of current legislation.

Minister Patel told parliamentarians that all thirty written submissions had been received and noted and the Infrastructure Development Bill had, as a result of these public hearings, strengthened the constitutionality of the work of PICC, reduced ambiguity on the subject of SIPs whilst ensuring that public consultation had led to transparency.

He said the Bill was important as it involved some R1-trillion on infrastructure since 2009 and the Bill in giving legal standing to the work of PICC was a “milestone in South Africa’s economic development”.

Environmental impact overlooked by Bill

Another complaint was that despite the fact that, if passed, the Bill would co-ordinate some of the biggest infrastructure projects in South Africa’s history, the provisions  make no reference to the need for infrastructure development to be environmentally sustainable other than a clause acknowledging that the SIPs will still need environmental authorisation under the National Environmental Management Act (NEMA).

South Africa has a comprehensive environmental impact assessment (EIA) regime and the department of water and environmental affairs, over the past five years, had spent time and parliamentary effort to improve, streamline and speed up EIA processes, the minimum period for such clearances going no faster than 300 days for clearance on EIAs as far as NEMA is concerned, under any circumstances, in the national interest.

The idea of PICC being allowed to reduce this environmental clearance to 250 days, or even shorter time frames for mega-projects, has the environmental world in a stir it seems, the shortening process, they say being impossible to manage to and which renders EIAs meaningless.

Environmentalists say that decisions about big projects that will affect the whole nation for generations to come must be made using comprehensive information about social and environmental impacts in compliance with NEMA and this takes time, the minimum possible being 300 days as envisaged by NEMA.

It seems that minster Patel has solved the land expropriation issue but has not satisfied the environmentalists who still complain that in its present form the Infrastructure Development Bill will not achieve its aim as far as fully integrated development in the national interest is concerned.

The Bill is headed for promulgation sometime in the mid year, and was passed before the end of the present session in an extended session of the NCOP.
Earlier articles on this subject:
http://parlyreportsa.co.za//cabinetpresidential/infrastructure-development-bill-legislates-growth-path/
http://parlyreportsa.co.za//cabinetpresidential/gigaba-answers-critics-infrastructure-build/
http://parlyreportsa.co.za//cabinetpresidential/gigaba-answers-critics-infrastructure-build/

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Infrastructure Development Bill possibly to be altered

Infrastructure Development Bill gets SALGA, BUSA criticism….

The Infrastructure Development Bill, tabled in Parliament during November 2013 just before Parliament closed, has had three days of public hearings, the Bill being an empowerment document for the presidential office to realise the New Build programme for South Africa.

The Bill was published for comment and the hearings over three days represented by an early opening of parliamentary portfolio committee activity. The Bill was tabled by minister of economic development, Ebrahim Patel.

The majority of those presenting before Parliament with submissions regarding the Bill, mainly state utilities and entities such as the Institute of Municipal Engineers, pointed to what many realise is the actual crisis facing South Africa – that of lack of skills at local government level and a lacking of will to get projects even underway, let alone completed, being the main hurdles.

Objectives of Bill

According to the cabinet statement released at the time, the Bill aims to:

•    Implement integrated projects of significance for South Africa and the region
•    Promote public-private partnership making use of private sector skills
•    Set up steering committees for each project
•    Put in place time frames for implementation of strategic integrated projects (SIP)
•    Address project management and regulatory delays challenges
•    Ensure coordinated issuing of permits and licences

The Bill pledges support for the Presidential Coordinating commission (PICC) set up by cabinet in July 2011 to bring together the three spheres of government to drive increased levels of infrastructure development. A number of bodies presenting gave examples of the complete lacking of any knowledge of the maintenance of national assets, particularly an infrastructure project was completed and handed over.

SIPS are to be driven by PICC

PICC interventions will be carried out, it is planned and a number of the presentations to Parliament will go to the PICC as examples of where cross-cutting and mobilisation across all levels of government is badly needed with specific regard to the 18 Strategic Infrastructure Projects (SIPs) identified by the Commission.

Each SIP comprises a large number of specific infrastructure components and programmes. Such infrastructure development is seen as a key jobs driver in the new growth path planned for the country. The new Infrastructure Development Bill is thus the anchor document behind the presidential process, even as far as allowing for the acquisition of land where an SIP may require this option.

Environmental issues “ignored”

In contrast, the constitutionality of, and the need for the Infrastructure Development Bill was questioned in a presentation by the South African Local Government Association (SALGA) who clearly felt “toes were being trodden upon”. University of KwaZulu Natal warned that a clause in the new Bill imposing that any delay process that goes over 250 days will be over-ridden was totally discounted on the basis that an environmental impact assessment cannot be completed within 300 days.

Also Business Unity South Africa (Busa) whilst agreeing with the whole idea of the need to get projects going expressed the view that rather than trying to ‘cut through’ through bureaucratic problems that might be causing delays, the new Bill may add yet another layer of red tape on government project managers and confuse the roles and responsibilities of the three spheres of government.

They cautioned that the department of economic development, with all the goodwill in the world, may add confusion and further congestion and that no amount of legislation could add value to the actual problem; lack of skills at local government level and an inability of one department to talk to another.

Bill driven by ANC to empower PICC

Lack of consultation in the preparation of the Bill was also cited as having been insufficient on the bill but the Bill is known to have the support of the ANC, service delivery and infrastructure build projects that create jobs being their manifesto promise.

COSATU, Telkom and Transnet were all in favour of the Bill in broad principle but most expressed concern that the Bill might add rather than detract from bureaucratic delays and great care that this did not happen, they said.

Telkom also raised queries with regard to the granting of rights to PICC to expropriate land but minister Ebrahim Patel, minister of economic development who was present for most of the submissions, chose not to debate the issue presumably because such matters were separately under debate with other legislation.

There was little disagreement amongst opposition members that minister Patel would have to make considerable revisions to the Bill as presented, particularly on the issue of land acquisition in terms of existing law.

Further reports on this Bill in later meetings have been published for clients and will be posted on this website in due course
Previous articles on this subject
http://parlyreportsa.co.za//cabinetpresidential/infrastructure-development-bill-legislates-growth-path/
http://parlyreportsa.co.za//cabinetpresidential/infrastructure-development-bill-to-cut-red-tape-2/
http://parlyreportsa.co.za//energy/global-shockwaves-must-not-stop-infrastructure-programme/
http://parlyreportsa.co.za//uncategorized/president-zuma-calls-for-2012-as-year-of-infrastructure/

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