Trade and Industry

1. Trade and Industry The work of the Portfolio Committee – Past and present 1 July 2014

2. Overview • Mandate of the DTI • Key issues • Industrial Development • Trade, Investment and exports • Broadening participation • Regulation • Administration • Other matters • Key oversight considerations Work of the PCTI – M. Herling – 1 July 2014

3. Mandate of the DTI Work of the PCTI – M. Herling – 1 July 2014

4. Key stakeholders • Society at large (consumers) • Business in the formal & informal sectors (manufacturers, exporters, importers, credit providers, retailers, service providers, etc.) • Labour • Intellectual property owners & service providers • Entities • National government departments as well as provincial and local government • Other governments & foreign business Work of the PCTI – M. Herling – 1 July 2014

5. Industrial Development Outstanding issues • Assess effectiveness of the: • implementation of the Industrial Policy Action Plan • incentives in meeting their set objectives. • First National Industrial Participation Programme report tabled in December 2013 on the Strategic Defence Package • Review of the use of a single board to ensure a more cohesive technical infrastructure framework Work of the PCTI – M. Herling – 1 July 2014

6. Industrial Development New issues • Technical infrastructure institutions: • Support to new initiatives outlined within government policy and legislation • Adequate capital investments being made to ensure that state of the art technology is being used, especially in core areas of support • Transition of industrial development zones into special economic zones Work of the PCTI – M. Herling – 1 July 2014

7. Trade, investment and exports Outstanding issues • Status of the Export Credit Insurance Corporation’s request regarding additional funding to support the Interest Mark-up Scheme for exporters. Work of the PCTI – M. Herling – 1 July 2014

8. Trade, investment & exports New or ongoing issues • Ongoing trade negotiations including: • World Trade Organization Doha Development Agenda • India-SACU (Southern African Customs Union) Preferential Trade Agreement • SADC-EU (European Union) Economic Partnership Agreement. • Schedules for the Southern African Development Community (SADC) Trade in Services Protocol • Tri-partite Free Trade Agreement • Regional integration efforts & implementation of agreements at SACU and SADC levels. • Use of trade mechanisms to support industrial development • Implementation of export incentives & the impact of the National Exporter Development Programme Work of the PCTI – M. Herling – 1 July 2014

9. Trade, investment & exports New or ongoing issues • Economic diplomacy role of trade missions & SA embassies • Work of the Committee on the Non-proliferation of Weapons of Mass Destruction • Impact of the shift in the trade regime from liberalisation to a developmental approach • Impact or implementation of existing trade & other agreements • Commitments to be made in the Trade Facilitation Agreement, which was agreed to at the 9th WTO Ministerial Conference Work of the PCTI – M. Herling – 1 July 2014

10. Broadening participation Outstanding issues • Development & implementation of the: • National Strategic Framework on Gender and Women Economic Empowerment • Youth Enterprise Development Strategy • Informal Sector Strategy These strategies should be moving to the Ministry on Small Business Development upon proclamation Work of the PCTI – M. Herling – 1 July 2014

11. Broadening participation New or ongoing issues • Broad-based black economic empowerment: • new Codes of Good Practice • progress on the NEF’s request for its recapitalisation • Small, medium and micro enterprises (SMMEs) : • Implementation of incubators to support the development of SMMEs • Work of the Small Enterprise Development Agency • Co-operatives : • Encouraging the development and mainstreaming of co-operatives within the formal economy  It should be noted that these areas should be moving to the Ministry of Small Business Development Work of the PCTI – M. Herling – 1 July 2014

12. Regulation Outstanding issues • Gambling: • Implementation of the committee’s recommendations on the Gambling Review Commission’s (GRC) report • Outcome of the facilitation between grooms, the National Horse-Racing Association and other horse-racing stakeholders. • Lotteries: • Appointment of the chairperson and/or board members of the to-be established National Lotteries Commission • Intellectual Property: • Effectiveness of anti-piracy or prohibition of counterfeit goods initiatives • Companies: • Implementation of the Swedish Model for the Company and Intellectual Property Commission’s call centre • Modernisation of its information technology systems Work of the PCTI – M. Herling – 1 July 2014

13. Regulation New or ongoing issues • Consumer protection: • Memorandums of Understanding (MOUs) with other consumer protection institutions, especially provincial offices, in terms of referrals by the National Consumer Commission (NCC) • NCC's enforcement capacity in terms of appropriate human and financial resources to effectively deal with complaints, investigations and litigation • Regulations on product labelling for food containing genetically modified organisms • Resolution of complaints regarding incorrect meat labelling. Work of the PCTI – M. Herling – 1 July 2014

14. Regulation New or ongoing issues • Credit regulation: • Consumers’ access to credit, recourse for unfair or unscrupulous behaviour & the effectiveness of the debt review process • Use of social grants as a form of income to determine the affordability of a credit agreement for a grant beneficiary • Review of legislation related to emolument attachment orders & debt collection • Companies: • Establishment and operation of the Companies Tribunal Work of the PCTI – M. Herling – 1 July 2014

15. Regulation New or ongoing issues • Intellectual Property: • Development of the National Policy on Intellectual Property • Lotteries: • New lines of accountability for the distributing agencies of the National Lotteries Distribution Trust Fund Work of the PCTI – M. Herling – 1 July 2014

16. Administration New or ongoing issues • Accountability of entities to the Minister in terms of their governance structures and financial performance including quarterly reporting on these matters to the DTI • Implementation of action plans to address audit findings • DTI’s development of staff particularly in areas of economic diplomacy and trade negotiations to ensure the continuity of these efforts Work of the PCTI – M. Herling – 1 July 2014

17. Other matters New or ongoing issues • New regulations to be presented to Parliament for input: • BBBEE Amendment Act • Co-operatives Amendment Act • National Credit Amendment Act • Special Economic Zones Act  Establishment of new entities/councils: • BBBEE Commission • Co-operatives Development Agency • Co-operative Tribunal • Conversion of the National Lotteries Board into the National Lotteries Commission • National Council for Indigenous Knowledge • National Trust for Indigenous Knowledge • Special Economic Zones Advisory Board  It should be noted that these areas should be moving to the Ministry of Small Business Development Work of the PCTI – M. Herling – 1 July 2014

18. Other matters New or ongoing issues • Increase awareness efforts regarding new legislation • Consideration of the allocated financial resources for the establishment of new entities and the expanded mandates of existing entities, as set out in new legislation • Monitor new legislation within 2-3 years of their implementation • Consideration of quarterly reports on financial and non-financial performance Work of the PCTI – M. Herling – 1 July 2014

19. Key oversight considerations • Monitoring implementation of policies and/or legislation • Public and stakeholder participation to review impact of policies and/or legislation • Oversight over DTI’s co-ordination role • Industrial Policy Action Plan • Space • Non-proliferation of Weapons of Mss Destruction • Intellectual Property • Public and stakeholder participation to review impact of international agreements Work of the PCTI – M. Herling – 1 July 2014