Statement on Cabinet meeting 30 May

31 May 2007

Cabinet held its ordinary meeting in Cape Town yesterday morning, 30 May
2007.

The meeting noted that in the coming weeks and on the eve of the Summit of
African Heads of States in Accra in July, a series of nodal events will put the
spotlight on the African continent. These events will include the G8 Summit
(6-8 June) which will be attended by our President, the visit to South Africa
by the British Prime Minister and the launch of the CNBC Africa channel on the
1st of June. The African chapter of the World Economic Forum will also provide
a platform for African political and business leaders to share their views on
the socio-economic challenges facing our continent. We trust that the media
will take an active interest in these events and inform the public about the
discussions and outcomes of these fora.

The highlight of these international engagements will be the visit to South
Africa by President Kabila of the Democratic Republic of the Congo, a country
whose emergence from decades of civil war has highlighted the advances being
made on the continent. President Kabila will address our parliament on
Thursday, 14 June 2007.

Cabinet approved the extension of the deployment of 70 South African
National Defence Force (SANDF) members to Mozambique. This deployment will
provide military assistance in the clearance and demolition of unexploded
ordinance devices at the ammunition storage facility in Maputo following the
explosion at the facility which occurred on 22 March 2007. The SANDF will
participate in this exercise until 15 July 2007.

South Africa's response to the African Peer Review Mechanism (APRM) report
was noted. The response will be published together with the APRM report after
the African Union (AU) Heads of States Summit in July. Our response will be
embargoed and will only be published together with the APRM after the AU
Summit.

A Framework on Intellectual Property Rights from publicly funded research
was approved. Legislation will be gazetted shortly for public comment prior to
tabling it in parliament. The need to publish South Africa's achievements in
technological innovation was noted.

The National Hydrogen and Fuel Cells Technology Research, Development and
Innovation Strategy was approved. Hydrogen and fuel cells are seen as energy
solutions for the 21st century, enabling clean and efficient production of
energy from a range of primary energy sources. The transition to hydrogen is
expected to reduce dependency on oil and gas and reduce carbon dioxide
emissions when used in efficient fuel cells. The strategy will enable
government to support emerging research and development in this strategic
field.

The ban on the importation of de-boned beef from countries that slaughter
animals according to the World Organisation for Animal Health guidelines and
with acceptable Mad Cow Disease control measures was lifted. The Ministry of
Agriculture will release the list of affected countries and will continue to
monitor the quality of beef to ensure compliance with safety standards by all
the affected countries.

Progress in implementing the No-Fee schools policy in public ordinary
schools was noted. The Department of Education will release more details on the
successful implementation of this policy.

The 2001 United Nations Educational, Scientific and Cultural Organisation
(UNESCO) Convention on the Protection of Underwater Cultural Heritage was
approved and will be submitted to Parliament for ratification. The Department
of Arts and Culture will draft legislation to give effect to the
convention.

Child Protection Week will take place on 28 May to 3 June 2007. Programmes
that seek to protect children from poverty, exploitation and abuse will be
profiled during that week. The passing of the Sexual Offences Bill will
strengthen our ability to address the challenges in this regard.

Cabinet noted that the negotiations with the public sector unions were in
full swing and expressed the hope that an agreement will be reached sooner
rather than later. South Africans should take comfort in the fact that the
government is doing all it can, by negotiating in good faith, to ensure that
the benefits of our employees are addressed systematically. We reject any
insinuation that government is insensitive to the plight of its employees. In
the event of a public sector strike on Friday, 1st June 2007, measures will be
put in place to ensure that government business continues.

The protests in some parts of the country over the past few weeks were
noted. Without detracting from citizen's right to express their concerns
through protest action, Cabinet took the view that violence against persons and
destruction of property is an unacceptable way of raising concerns. No one has
the right to take the law into their own hands. Numerous channels exist in our
democratic society for people to raise their concerns and there can never be
any justification for violence and lawlessness. Law enforcement agencies will
be called upon to ensure that those who break the law are dealt with.

However, having said that, members of the executive and government officials
have a duty to interact with communities in a manner that gives confidence that
government cares about the needs of our communities. We will continue to ensure
that communities are well informed about the measures we are taking, through
the Programme of Action, to ensure a better life for all. The tireless
implementation of government's Programme of Action and the Local Government's
Strategic Agenda will ensure that the lives of our communities are improved. We
call upon leaders in all sectors of our society to provide the kind of
leadership that will ensure that the gains we've made in building a democratic
society are not undermined by the violence that has characterised some of these
protests.

The meeting also took exception to the ill-informed and misleading comments
that have been attributed to the General Secretary of the Congress of South
African Trade Unions (Cosatu), elaborated on in a Cosatu statement, suggesting
similarity between government communication of the country's successes, to Nazi
propaganda. Such comments are a denial of the progress we are making in the
fight against poverty as documented in the Ten Year Review Report and the Macro
social Report, as well as the regular reports on the implementation of the
Programme of Action.

We would like to reiterate that the fight against poverty is a historic task
that this government is tackling with the participation of millions of South
Africans and at no stage should anyone pretend that the poverty that our people
are facing will be eradicated overnight. Our goal, in line with the globally
agreed Millennium Development Goals, is to halve poverty and unemployment by
2014. This government is unwavering in its commitment to ensure that these
targets are met.

The meeting noted that during his visit to South Africa, the President of
the International Olympic Committee, Mr Jacques Rogge had expressed his
unqualified confidence in South Africa's ability to host the 2010 FIFA World
Cup. This, in our view, refutes the pessimism that exists in some quarters
locally and abroad and, once again, reaffirms the enthusiasm that exists around
the world about South Africa's hosting of the 2010 FIFA World Cup. Government
will continue to monitor progress to ensure that 2010 World Cup is a resounding
success.

The meeting welcomed the Gross Domestic Product (GDP) numbers that were
released yesterday, noting that South Africa's economic expansion remains
exceptionally robust and sustained. Although the 4,7 percent growth in the
first quarter of 2007 was slower than the previous quarter, it was the ninth
consecutive quarter in which our economy registered a growth rate above 4
percent. It sustains the lifting of the annual average growth rate of the
economy from 3 percent in the period from 1994 to 2003, to around 5 percent
since 2004.

Cabinet congratulated the under-14 South African boys' team and the under-14
Ghanaian girls' team on their success in winning the soccer tournament that was
held in Zurich to celebrate the official opening of the new FIFA head
office.

The President briefed Cabinet about his successful official visit to Vietnam
and conveyed warm and friendly greetings from the Vietnamese government to the
government and people of South Africa. The visit will go a long way towards
building strong socio-economic ties between the two countries.

The following appointments were approved/noted:

* Concurred with the extension of the employment contract of Dr Kohlo as the
CEO of the Export Credit Insurance Corporation (ECIC) for a five year
period.
* The following were reappointed to the Board of Alexkor: Mr Moloi and Ms V
Mahlathi as non-executive Directors for a three year period. Mr M Mdaka
(Executive) was also reappointed to the Board. The following were appointed as
new members of the Board for a three year period: Ms K McClain, Dr R Paul, Prof
V Makin and Mr R Muzariri.

The Local Government Laws Amendment Bill was approved for public comment
prior to submission to Parliament. The Bill seeks to refine and align policy
provisions reflected in different laws, strengthen enforcement measures and
improve technical and legal provisions. The affected legislation will include
the Demarcation Act (1998), Municipal Structures Act (1998) Municipal Systems
Act (2000), Municipal Finance Management (2003) and the Municipal property
Rates Act (2004).

Enquiries:
Themba Maseko
Cell: +27 83 645 0810

Issued by: Government Communications (GCIS)
31 May 2007