Question 1 Ms Labuschagne (DA-WC) to ask the Deputy President:
What is the (a) stance of the Ministerial Advisory Council on Energy regarding the privatisation of the energy sector in South Africa and (b) role that the private sector can play in resolving the energy crisis?
Reply:
Honourable Members, I have been informed by the Department of Energy that the Ministerial Advisory Council on Energy has not yet been established. The Energy Ministry has received nominations for the Council and is currently processing the list of 180 nominations received. Once appointed, the names of all Advisory Council members will be made public.
On the second part of your question, the private sector has a significant role to play in resolving our energy shortfall by participating in programmes that seek to boost our electricity generating capacity. The private sector is therefore expected to augment Eskom's build programme through the Independent Power Producer programme, in terms of which generation capacity will be constructed on a build, operate and transfer basis.
The regulatory framework governing the electricity sector has been revised to facilitate the procurement of power from the private sector.
To date, the Department of Energy has determined the quantity of megawatts to be derived from renewable energy sources such as wind, solar, small hydro and biomass. Most of these will be produced by private sector players, or independent power producers. Already, the Department of Energy has committed to about 4 000 megawatts of renewable energy generation through private sector funding.
Thank you Honourable Chairperson.
Question 2 Ms L Mathys (EFF-Gauteng) to ask the Deputy President:
1. Whether he will establish a commission to investigate the extent of (a) tax evasion and (b) capital flight from South Africa; if not, why not; if so, what are the relevant details;
2. Whether he will ensure that implicated parties are brought to book; if not, why not; if so, what are the relevant details?
Reply:
Honourable Member, there is currently no plan to establish a commission to investigate tax evasion and capital flight from South Africa.
Tax evasion and the illegal transfer of capital across borders is dealt with by relevant authorities, which include the South African Revenue Service, the South African Reserve Bank, and the law and prosecuting authorities.
As part of their routine activities, the South African Revenue Service and the South African Reserve Bank continually assess taxpayers and significant financial transactions where they believe that such activities are not declared or are not legitimate.
The most significant form of tax evasion practices are done via base erosion and profit shifting, known as BEPS, which describes tax planning strategies that rely on mismatches and gaps that exist between the tax rules of different jurisdictions. These strategies are designed to minimise the corporation tax that is payable overall by either making tax profits "disappear" or by shifting profits to low tax operations where there is little or no genuine activity. In most cases BEPS strategies are not illegal. Largely, they exploit differences in tax rules between countries.
This is a global problem, and for this reason the Organisation for Economic Cooperation and Development has commenced a major research project to sharpen the mechanisms to deal with transfer pricing and base erosion.
In South African, the former Minister of Finance appointed a Tax Review Committee chaired by Judge Dennis Davis, to evaluate the South African tax system against internationally accepted tax trends, principles and practices, and to improve tax compliance and deal with problems of base erosion. The Committee is expected to produce its report later this year.
On the second part of your question, Honourable Member, I wish to point out that capital flows are necessary for economic growth. The Reserve Bank monitors outflows and inflows through the administration of exchange control in terms of a delegation by the Minister of Finance.
To the extent that the Reserve Bank identifies any criminal violations, it reports such activities to the prosecuting authorities over and above any administrative action it may take. Exchange control policy is regularly updated in the light of global developments.
Over the years, Government simplified the financial services regulatory environment for firms wishing to invest in Africa by easing the restrictions on commodity-based exchange-traded funds and increasing the macroprudential limit for banks to facilitate further expansion of South African banks into Africa.
To the extent that there are any criminal transgressions with regard to taxation or money transfers, the relevant authorities take appropriate steps including referring cases to the prosecuting authorities.
The Reserve Bank and the South African Revenue Service work closely together to monitor capital flow movements. Applications for cross-border transactions often require tax clearance by the South African Revenue Service to ensure that tax risks are being reduced. Ongoing interaction between the two means that as far as possible attempts to move capital offshore for tax reasons are reduced.
I thank you Honourable Members.
Question 3 Dr HE Mateme (ANC-Limpopo) to ask the Deputy President:
(1) Whether the Government has communicated the unequivocal and strongest condemnations that have been expressed by South Africans against the continued attacks and killings of Palestinians, especially innocent women, children and the elderly (details furnished); if not, why not; if so, what are the relevant details;
(2) whether such engagements has also raised the strong sentiments that South Africa should consider suspending diplomatic relations and engagements with Israel; if not, why not; if so, what are the relevant details;
(3) what engagements has the Government had with Israel or any national structure with regard to finding a lasting solution in resolving the crisis in Gaza?
Reply:
The Government of South Africa has communicated its unequivocal and strongest condemnations of Israeli attacks against Palestinians in Gaza to the Government of the State of Israel through:
- A Demarche issued by Deputy Minister Nomaindia Mfeketo, who summoned the Israeli Ambassador to her office on 16 July 2014.
- A meeting between the Israeli Deputy Minister of Foreign Affairs and the Special Envoys on the Palestine-Israel Conflict, Dr Zola Skweyiya and Mr Aziz Pahad, held on 28 July 2014 in Israel. Furthermore, the Special Envoys delivered President Zuma's letter to the Israeli Prime Minister, Mr Benjamin Netanyahu, expressing South Africa's condemnation of the Israeli attacks against Palestinians in Gaza.
The Government of South Africa is not considering suspending diplomatic relations with Israel. Maintaining diplomatic relations with Israel allows South Africa to engage with Israel on issues of mutual interest, including the Palestine-Israel conflict.
Because of the diplomatic relations that exist between the two countries, President Jacob Zuma was able to dispatch the two Special Envoys to convey South Africa's grave concern at the security situation in Gaza, the displacement of over 485 000 Palestinian civilians, and the dire humanitarian crisis.
Furthermore, maintaining diplomatic relations with Israel allows South Africa to maintain its presence in Ramallah.
The Government of South Africa joins the international community in calling for an end to violence in the Middle East. It is our conviction that there will be no military solution to the current challenges facing Israel and Palestine. Only a negotiated settlement will bring about a lasting and durable solution to the problems facing the Middle East.
Accordingly, we call on all sides to the conflict to observe the terms of the current ceasefire negotiated in Egypt. We hope that this lays a foundation for a comprehensive ceasefire agreement when the parties meet in a month's time.
Thank you.
Question 4 Ms T Motara (ANC-Gauteng) to ask the Deputy President:
(1) Whether the process of establishing the Provincial Councils on Aids (PCA) has been completed; if not, why not; if so, what are the relevant details:
(2) whether each PCA has its own provincial strategic plan; if not, what is the position in this regard; if so, what are the relevant details;
(3) whether such strategic plans have been communicated to communities and key strategic stakeholders such as those involved in the fight against (a) HIV/Aids, (b) sexually transmitted infections and (c) Tuberculosis in the provinces; if not, why not;
(4) if so, what (i) challenges are facing the PCA and (ii) plans are in place to ensure that each PCA functions effectively?
Reply:
Provincial Councils on AIDS have been established in various forms in all provinces. At the present moment, five Provincial Councils on AIDS are chaired by the Premiers. That is in Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga and the Northern Cape.
In the Eastern Cape, Free State and Western Cape, Provincial Councils on AIDS have been delegated to the MECs for Health. In the North West Province, the Provincial Councils on AIDS has been established as a public entity in the Office of the Premier.
As the Chair of the South African National AIDS Council, I will engage the newly appointed leadership in the provinces around the decision of the Presidential Coordinating Committee that all Provincial Councils should be chaired by the Premier.
All nine provinces have developed Provincial Strategic Plans. These are aligned to the National Strategic Plan for HIV, TB and STIs 2012-2016. These Provincial Strategic Plans have been developed in consultation with key strategic stakeholders and have been communicated widely. In KwaZulu-Natal, a summary version of the Provincial Strategic Plan has been produced and translated into IsiZulu.
Broad challenges include a shortage of human resources, resource constraints and coordination in the implementation of programmes. The SANAC Secretariat provides support to the Provincial AIDS Councils to address these on an on-going basis.
Thank you Honourable Chairperson.
Question 5 Ms L C Dlamini (ANC-Mpumalanga) to ask the Deputy President:
(1) Whether the (a) SA National Aids Council (SANAC) and (b) Provincial Councils on Aids (PCA) engage the sex worker sector to ensure that sex workers form part of the fight against the spread of HIV/Aids, sexually transmitted infections (STIs) and tuberculosis (TB); if not, why not; if so, (i) what measures are in place to ensure that critical strategic interventions and awareness programmes reach individual sex workers on the ground and (ii) what are the further relevant details;
(2) what strategic interventions has SANAC put in place to ensure that the sex worker sector forms part of the national fight against the spread of HIV/Aids, STIs and TB?
Reply:
Honourable Members,
The Sex Worker Sector is one of the 16 sectors represented in the South African National AIDS Council. The sector is fully engaged in the SANAC Civil Society Forum, the SANAC Programme Review Committee and the SANAC Plenary. In addition, the sex worker sector participates in the SANAC Human Rights Technical Task Team that deals with legal and human rights.
The national response to the HIV epidemic aims to ensure that all those who require them have access to the necessary services. In addition, the conditional grant dedicates resources specifically for programmes that address the needs of vulnerable groups, including the sex work community.
Research and surveillance activities are currently underway to improve our ability to refine our interventions in these areas. The SANAC Secretariat, working through the Country Coordinating Mechanism, has secured funding from the Global Fund for the implementation of a National Sex Worker Programme as highlighted in the National Strategic Plan for HIV, STIs and TB 2012-2016.
Thank you Honourable Chairperson.
Question 6 Mr D M Stock (ANC-NC) to ask the Deputy President:
(a) Whether South Africa is looking at avenues of energy supply through expanded investment into leveraging on the exponential growth of renewable energy to avoid any energy crisis and meet the energy demand of our nation; if no why not; if so, what are the relevant details;
(b) Whether such avenues include aspects of the Renewable Energy Independent Power Producer Programme (REIPPP) model; if not; (a) why not and (b) what other avenues are being considered to (i) ensure that our national energy sources meet our demands and (ii) avoid any crisis that might have an adverse impact on our economy; if so, what are the relevant details?
Reply:
Honourable Members,
South Africa is indeed looking at various avenues to ensure energy security especially through the use of renewables that produce electricity while reducing the emission of fossil fuels.
In addition to exploiting abundant natural resources such as coal, our energy demand will be meet by expanded use of renewables. In line with the Integrated Resource Plan, about 18 000 megawatts of renewable energy is due to be introduced in the period up to 2030. To date, around 4 000 megawatts has been committed.
According to the Department of Energy, this programme has brought about R140 billion of green economy investment to South Africa and created more than 10 000 jobs during the construction phase of the various renewable energy projects. Due to the dispersed nature of these projects, local economic development in the most remote of areas has become possible and thus expanded opportunities to our rural communities.
Finally, the renewable energy independent power producer programme will also diversify our energy mix away from coal and thereby reduce the country's greenhouse gas emissions in line with our international commitments.
I thank you!
