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3 June 2008

Honourable Speaker
Honourable Premier
Colleagues in the Executive and the Legislature
Mayors and local government leadership present
Boemedi jwa ntlo ya Segosi mo Profenseng ya Bokone Bophirima
Ditlhogo tsa mafapha a puso
Chief Executive Officers of our parastatals
Business leaders
Members of the cloth present here today
Leaders of other civil society formations
Distguished guests
Comrades and friends
Le baagi ba Bokone-Bophirima

Introduction

How ought a society to exist and move into the future? Deputy Speaker, I begin by framing this question because I believe that we can never be a self-enclosed and self–referential territory with our own induction and indoctrination to deny that "South Africa is the cradle for the rebirth of Africa, and even the world" (from Denis Goulet 1971)

Over the last few days, we witnessed developments which were aimed at eroding the very values on which our society is founded, as entrenched in our Constitution.

Our ultimate goal as a country is to bring about changes which allow human beings, both as individual persons and as members of groups, to move from one condition of life to one which is more human in some meaningful way. In his seminal book, the Cruel Choice, Denis Goulet (1971) asks: "What kind of development can be considered human?" (1971:236).

In our quest to build a caring society and in part responding to this profound inquiry our concept of human development must be based on respect for all life and the concept of the well-being of all irrespective of race, gender or geographic origin.

Therefore, there can never be any iota of justification to appropriate to ourselves the right to take life under the guise, that the presence of those of our brothers and sisters in our country from other parts of Africa ostensibly denies us the right to human development. This blemish will forever destroy the possibility of our own development. It will deny us the prospects of investment, growth and development. We must not invite disgrace to our country and continent through blatant criminality and irresponsible conduct, masquerading as a cry for service delivery. Our future development is inextricably bound with the fate and future of Africa. African solidarity is a fundamental pre-requisite for the creation of a new world order which benefits all humanity.

As we advance in our effort to create a better Africa and a prosperous South Africa, we must continuously mobilise for social cohesion – ensuring that all sectors of our society are on deck to accelerate our agenda of human development. It is within this context, Deputy Speaker, that I wish to give an account of our work and outline what we intend doing in this financial year.

As we enter the penultimate year towards the end of our term in office, the more it will become important and critical to spare no effort towards accomplishing what we set for ourselves.

In her state of the province address, the Premier reported from this very podium that there is proportionate reduction in the numbers of poor household from 56,6% in 2004 to 50% in 2006. That people who in the past could not access piped clean water, electricity, telephone lines, houses, refuse removal are increasingly accessing these basic services today, confirms our commitment that, as Denis Goulet asserts "we need to design and build a developmental state based on tradition and indigenous values which espouse a philosophy of change founded on a basic trust in the ability of people, no matter how impoverished, to improve their lives and understand the social forces that affect them and eventually to harness these forces to processes of genuine human and societal development" (Goulet, 1987:176)

Deputy Madam Speaker, an open economy such as ours cannot avoid to be influenced by the universal behaviour of the markets it is part of. We will not escape the impact of the recent spectre of price hikes haunting the whole global economy; the ever increasing oil prices, recent upswings of interest rates, threatening increase in electricity charges and added to this, the general universal slow down in growth for most economies, including our own. The major challenge regarding all of these developments is how we respond. We need to fully comprehend these developments and respond appropriately.

We are all aware of the unpredictable and uncertain situation looming as a result of recent episodes engulfing the global economy. Yet we remain inspired by the comfort the Minister of Finance gave to all South Africans that it is time for neither gloom nor panic, because with the macroeconomic policy and fiscal stance in place, we will be able to wither the storm. This period calls for sensible economics and not populist rhetoric and I think our country has opted for a sensible approach.

Economic indicators

In 2006, the North West economy grew by 4,3% following a growth rate of 4,9% in 2005. The sector that dominates in terms of contribution to the Growth Domestic Product (GDP) of the province remains mining at 25,8% followed by finance, real estate and business services with 13,7%. The government sector stands at 11,3%. At an aggregate level comparing industries, it is interesting to note that the tertiary industry constituted by the wholesale, retail trade, hotels, restaurants, transport and communication, finance and business services and general government services contribute a combined 50,6% to the GDP as compared to 28,4% of the primary industry. The least contributor is the secondary industry at 9,5%. There has been constant decline of the secondary industry in the province for the past few years and only in 2007 was there a slight improvement from a contribution of 9,4% to 9,5%. Given the global scenario, it is possible that the anticipated growth levels will need to be adjusted downwards.

Expenditure on previous year allocation

For all intent and purposes, economic development is not one or two things and cannot be the responsibility of a single Department. In economic development, there are partnerships, there is dependency, and there are shocks, internal and external. Shocks that influence the patterns of economic performance and the North West is not immune to these challenges.

Deputy Speaker, over the years, the Department has struggled to spend its allocation. Since our meeting with the Portfolio Committee, we have been able to ensure that the Department, before it could complain of a lower budget, is able to spend. During the 2007/08 financial year, the Department has been able to spent 91% of its allocation. This is indeed a significant improvement.

Regional Industry Development Programmeme

Madam Speaker, we have themed our action plan this year as "regional industrialisation and up-scaling provincial manufacturing capabilities" in recognition of the need to implement the national industrial policy and advance the goals of Accelerated and Shared Growth Initiative of South Africa (AsgiSA) and the Provincial Growth and Development Strategy (PGDS). This endeavour seeks to overcome industrialisation challenges in the province and promote manufacturing exports and other tradable goods and services. To this end, the diversification of our economy will be geared towards reducing reliance on traditional goods through the intensification of industrialisation.

During the last twelve months, the Department interacted with the Department of Trade and Industry on matters relating to the National Industrial Policy Framework (NIPF) and the Regional Industry Development Strategy (RIDS). These key intervention strategies would lead to increase in promoting balanced growth and opportunities in the province through districts and municipalities seizing current and potential opportunities presented by both the national and international market economies, and to explore spatial interventions to build up competitive industries. This is what is entailed as the aims and objectives of the Regional Industrial Development Strategy. There is no doubt that the North West provincial economy has the comparative advantage in some of the key prioritised sectors for promoting diversification with the potentials to increase our manufacturing potential.

According to the Regional Industry Development Strategy, this is an initiative promoting the active involvement of a developmental state seeking to build productive industrial and trade capabilities within regions; encourage regions to attain full economic and development potential based on competitive advantages of regions; and to encourage enhanced growth and development. The Department of Economic Development and Tourism and the Department of Trade and Industry has put together a joint team that will work out implementation mechanisms as well as drive projects designed to build a strong regional economy in the province.

Deputy/Madam Speaker, the focus of the Department activities will prioritise RIDS and NIPF by selecting from a list of national industrial policy action plan, those that are relevant to the province and can easily take off the ground, based on the work done in the past. The following programmes and projects would be intensified in this financial year:

* Fast tracking the development of the Mafikeng industrial development zone as an important special economic zone.
* Promoting Local Economic Development (LED) as a key ingredient to achieving broad based and equitable economic growth and developments.
* Restructuring and increasing the capability of the automotive industry
* establish processes towards implementation of the Business Process Outsourcing and Off-shoring (BPO, O), Tourism and Bio-fuels as yet another important interventions identified lead sectors geared towards generating more jobs and opportunities.
* Mining and mineral beneficiation including information and communication technology (ICT) development and promotion.
* Enterprise development through support of small, medium and micro enterprises (SMMEs) and co-operatives and ensure empowerment of previously disadvantaged individuals.
* Promoting and marketing investment corridors identified as spatial development initiatives for the province.
* Co-ordinating the contribution of other sectors such as craft, creative industry and transport and equipment as well as agro processing through working closely with Departments leading in these sectors.

Deputy/Madam Speaker, in achieving these objectives, ours is to consolidate and intensify some of the initiative already in place, though this time, all of this work will be aligned to the AsgiSA imperatives as alluded and contained in the National Industry Framework Policy and the Regional Industry Development Strategy. In the next three months, the task team constituted by the Department of Trade and Industry (dti) and the Department will convene a Provincial Industrial Development Workshop where stakeholders will make inputs towards the Provincial Industrial Development Strategy (PIDS).

Special Economic Zones

Deputy Speaker, the Regional Industrial Development Strategy makes reference to special economic zones (SEZs) and in this regard there are few types of these zones where at least the North West has an important role to play. The first such zone is the Manufacturing Oriented SEZs and this is where the Mafikeng Industrial Development Zone (MIDZ) features. Last year the Department impressively made commendable strides towards the realisation of having an industrial development zone in Mafikeng.

For years, we kept this house abreast of development in this regard, including when we finalised the appointment of the Board and the Chief Executive Officer. The results made by the collective we assigned this responsibility deepens our resolve to fast track this project. The infrastructure programme for phase one is on course as we have completed installation of bulk sewer pipelines to the tune of R15 283 727, the bulk water supply project is 91% complete, bulk electricity project recently launched is 20% in progress and have started the construction of internal services where at least 50 sites would be available to potential investors at the beginning of April 2009.

Deputy/Madam Speaker and all distinguished guests present here, today we stand before you not to make yet another promise about the International Airport License, but to confirm that it is now awarded and would be transferred from Pilanesberg and back to Mafikeng. We thank everybody who contributed in this regard, especially the MIDZ Board.

The process of application was daunting and challenging but the challenge of utilising that license for the good of our economy, employment of our people and generally boosting the economy of the region of Mafikeng, will be demanding. Huge investments will be needed from both the private and public sector if the zone is to yield the necessary manufacturing export goods destined for international markets.

The estimates in terms of the 2 000 prices show that almost a R1 billion of investment would be required in the next eight to ten years for sustaining the zone's economic activities. However, with the support of all stakeholders, especially the private sector, we are confident that we will surmount these challenges.

We thank this House for its support and further invite more. This project will need immediate injection of further public investment to put in place organisational capacity to manage the zone as an international world trade facilitation centre and further investment to begin with the second phase of the infrastructure programme.

We are pleased to inform this august house that this project was received with great sense of admiration for investment by the business community of China, when we presented it during the visit to the province of Henan, recently.

Madam Speaker, as the Department of Trade and Industry actively participates in this project we should expect changes in terms of institutional arrangement as proposed in the Regional Industrial Development Strategy. The proposals include the following:

* convert the existing IDZ entities into national public entities reporting to the dti
* The dti to provide policy leadership and therefore assume controlling shareholding and greater responsibility for funding the IDZs.
* provide a framework for participation by Provincial and Local Government through the Implementation Protocol under the Inter-Governmental Relations Forum (IGRF) Act
* Board of directors of each IDZ is appointed and accountable to the Minister of the dti.
* Create a National Co-ordinating Committee to oversee the individual IDZ Boards.

In our view, these proposed institutional arrangements aimed at establishing inter sphere cohesion towards integrated implementation of IDZ policy, will bring about a comprehensive and yet co-ordinated involvement of government across all spheres thus leading to increased investment into the project. The second and third special economic zones the province would be pursuing is the Service Oriented and Tourism Special Economic Zones, we will elaborate on these as we go along with the presentation of our priority programmes and projects for the year ahead.

Automotive Sector Development initiatives

Deputy/Madam Speaker, the automotive industry is the largest manufacturing sector in the country and in our province. Its potential to absorb high levels of unemployment is immense, hence the decision to partner with the Automotive Industrial Development Cluster (AIDC) to retain the automotive industries in the province. Last year we interacted with key stakeholders wanting to exploit the forward and backward linkages associated with it. The Department will forge synergies with several sectors such as metals, leather, textiles and plastics and this will position the automotive sector as an important intervention to promote the North West province's manufacturing capabilities.

The North West Development Corporation and the AIDC enjoined by the Department are at work implementing a Memorandum of Understanding (MOU) signed between the two institutions. An amount of R3, 2 million was allocated for this project to focus on five areas, of which three are at an advanced stage. These are: Competitiveness Improvement Cluster through the Tirisano Project, Supply Chain Assessments, and the North West Automotive Strategic Forum. Skills development is one of the major problems within the automotive industry. The members agreed that there is a need for artisans, apprentices, tool makers, electricians, engineers, and programmers. The AIDC Employment and Skills Development Lead Employer (ESDLE) assist automotive companies to place students at their companies and works in collaboration with Manufacturing, Engineering and Related Services Education and Training Authority (MerSETA) to accelerate the ESDLE programme. A total of 424 employees, 377 of whom are Previously Disadvantaged Individuals (PDIs), were trained.

In addition, The AIDC and the Department of Economic Development and Tourism (DEDT) are exploring the possibility of establishing a high technology plant in Bojanala to recycle automotive catalytic converters. The DEDT and Invest North West (INW) have commissioned the AIDC to conduct a feasibility study to determine which option would be best to pursue regarding this initiative. The feasibility study was commissioned against the background of the abundance of Platinum Groups Metals (PGMs) in the province.

Madame Speaker, we are in discussions with the SATECH (the SEDA Auto motive Incubator), to accelerate the National Enterprise Development Strategy (NEDS) for Motor Body Repairers (MBRs).

The primary objective of the proposed National Enterprise Development Strategy for MBRs is to support the competitiveness of black MBRs so that they can contribute to long-term growth and employment. It is believed that this approach will be sustainable over time and will promote economic development. The motor insurance industry is keen to support this initiative by making funds available for training including direct empowerment through business linkages.

Bio-fuels programme

Deputy/Madam Speaker, the bio-fuels sector is one of those strongly recommended enlisted as priority in the Regional Industrial Development Strategy and in this regard, the Bio fuels strategy was approved late last year. We have already interacted with the Department of Energy and Minerals on this strategy to position the province as an important site to pilot the bio-fuels industry development in the country. Since the Bio-fuels Strategy was only approved late last year, we are now presented with clearer guidance on how the Mafikeng Bio-Diesel Project can be taken forward.

This project is an important agro processing anchor that would be lead by the Mafikeng Industrial Development Company working with the multi-stakeholder Task Team we will be establishing to spearhead the Bio-Fuels initiatives in the province. Our province registered sufficient progress in investigating the types of trees relevant and we now have options that could give comfort that food security would not be under threat at least from this province when we unleash the roll-out of the bio-fuels initiative.

The G.U.B Ingenieur AG, a German Company agreed to evaluate the existing Mafikeng Bio-fuels Initiative at a cost of R1,2 million over a twelve months period commencing in July 2008. This is part of the relationship established with the Germans from our recent outbound mission to that country, in addition to the support of bio-fuels initiatives, ten selected people in the fields of Comprehensive Engineering and Project Management will go on a study exchange programme in Germany during this fiscal year.

Local Economic Development Support and Growth

We have indicated that Local Economic Development (LED) support is an important ingredient of the regional industrial development strategy and in this connection, the Department will work closely with municipalities to promote local economic development. Our working together should lead to the promotion of our Spatial Development Initiatives as anchor growth corridors that link key economic nodes and regions in the country.

Deputy Speaker, there is no doubt that the increase to the income of commercial and manufacturing towns can make immense contribution to the improvement and cultivation of the province's growth in particular and our country in general. It is for these reasons that the Department will work closely with municipalities in developing a LED strategy that would ensure investments into local economies. Some of the ideas on these issues were already teased out at the Local Economic Development and Enterprise Support we hosted last year in Sun City.

A partnership programme for LED support is underway between the Department and the Department of Trade and Industry (dti). The Bojanala, Mafikeng and Southern District, are amongst the eighteen municipalities selected for piloting targeted LED assistance programme. Part of the identified projects that will be undertaken in these three municipalities are the Business Process Outsourcing and Offshore programme (BPOs) and Information Communication Technology initiatives aimed at rolling out AsgiSA related job creation ventures. Again ladies and gentlemen, the aim of these projects is to target women and youth so that the scourge of unemployment amongst our women folk and graduates is reduced.

Trade and investment promotion

The North West province has contributed 10,5% to the national total export of goods from South Africa amounting to R82,744 137 million. The single most important sector is the export of metal products amounting to 46%, followed by mining products 39%, fuel and chemicals 8% while other unclassified products account for 4%.

As a province we continue to surf the tides presented by globalisation as we pursue our agenda of being amongst the beneficiaries and not casualties of globalisation. Last year investment in the province registered 3,625,5 billion, creating 1 441 jobs.

Mining and minerals beneficiation

Deputy Speaker, the diversification agenda we alluded to earlier would include increasing our efforts in contributing to the competitiveness of the tradable activities through beneficiation of minerals into jewellery products. The Department allocated an amount of R8,5 million towards the establishment of platinum beneficiation initiatives in the province. The Djadji range the Premier referred to earlier this year is a North West platinum jewellery product we exhibited in Europe and Asia when we were marketing the potential and the capacity of the province in supplying world markets with locally beneficiated jewellery products.

We have seen a decline in the mining sectors due to the electricity crunch and the effect of global developments. It is for this reason that our focus will be more on industrialisation.

The North West Development Corporation will sign a memorandum of agreement with the Platinum Jewellery Trust of South Africa to pursue this initiative. Small Enterprise Development Agency (SEDA) is managing a technology platinum incubator located at Orbit College for platinum jewellery manufacturing. 18 students are enrolled as part of innovative and technology transfer programmes and on the other hand, eight SMMEs have started platinum beneficiation product on incubation at the centre.

This initiative attracted public sector interest and there are on going discussions between the Rusternburg Municipality, Archway Projects and the Platinum Jewellery Trust discussing partnerships towards establishing a theme park in Rusternburg where our Platinum Jewellery initiatives would be one of the anchor investments. The theme park investment will be valued at about R2 billion.

Business regulation and consumer protection

Gambling and betting

Deputy Speaker, as concluded by the research conducted in 1995, gambling and betting continues to foster potential for economic growth in terms of job creation, investment, contribution to the growth of own revenue base, tourism promotion and business development in general. However, it is equally important that this industry should be regulated to reduce the possible social and economic problems that are associated with this entertainment industry. The North West Gambling Board is in shape and last year the new Chief Executive Officer, Mr Fortune Sekgapane was appointed. As we welcome him in our midst we are confident that this will put the Board on a higher trajectory in terms of ensuring effective and efficient management of the regulatory programme we have put in place.

It is public knowledge that as a result of the re-demarcation of provincial boundaries, the North West province lost one of its casino licenses to the Gauteng province that further resulted in the ultimate reduction of the provincial gross gambling revenue from R914 711 363, 35 to R825 877 151,79, a reduction in provincial investment, number of jobs and business opportunities. Although gambling revenue collected for the period under review exceeded the annual target of R53 million by R12 million, the province, suffered a 1,64% decrease from the figures recorded in the previous fiscal year. The numbers of licenses are now reduced from four to five although we are engaging the Department of Trade and Industry on this matter. We hope they will understand that any fraction in revenue reduction will impact negatively on the coffers of the province including the economy in general.

This industry provides the province with yet another opportunity to advance black economic empowerment. During the financial year under review the North West Gambling Board (NWGB) considered and approved the restructuring of Peermont Global (Pty) Ltd shareholding through the involvement of Opalton and the Mine Workers Investment Company to realize approximately 66% broad based economic empowerment structures in a manner that benefited staff of the company through staff incentives schemes, a management share schemes, national empowerment component and 10% local empowerment.

We are convinced that the gambling industry is no exception in the drive to restructure the economy to reflect and benefit as much as possible more people previously excluded and to this extent, the roll out of the Limited Payout Machines will be fast tracked this year. The new Board concluded its revision of the request for proposals administered by the previous Board and came to the conclusion to invite new applications. In the new Request for Proposal (RFP), there is provision for Route Operator License, operation of between five and forty limited payout machines per site and independent site operations. Our people should be on the look out for the roll-out of one thousand (1 000) Limited Payout Machines (LPMs) to take advantage of this opportunity towards further empowerment and intervention in the second economy.

Deputy/Madam Speaker, there is no room for illegal operations or any form of illegal practices that undermine the right of legal businesses or the consumers in general. During this year, we have confiscated approximately 700 illegal gambling machines from seven illegal operations and so far one illegal operation was closed down. This endeavour remains top on our agenda to promote ethical and yet economically beneficial business within the framework of the law. No tolerance of whatever violation of the law will be entertained and to our law enforcement agency we say, keep up the good work and ensure that every aspect of the laws governing our Republic are upheld to the latter. Clamp-down on illegal shebeens and taverns! This time there may be no dust but certainly – liquid will flow and spill!

Deputy/Madam Speaker, casino operations located in the North West province are charged levies in terms of the North West Gambling Regulations promulgated in November 2002 in terms of the North West Gambling Act (Act 2 of 2001). These regulations provide for a sliding scale to calculate gambling levies with the view to ensure the viability and sustainability of smaller casino operations in the province. This formula for calculation of levies has not only failed to meet the changes in the economy from the year 2002 until to date, but its interpretation also remains a constant bone of contention between the North West Gambling Board and other casino operators in the province. It does then; Deputy/Madam Speaker; appear very clear that the legislation in respect of casino levies in the province require urgent review to address these problems.

Consumer protection

Honourable Speaker, although the Department has always had a mandate to oversee fair trade in the province, it has become very clear that it will have to intensify its role on matters of trade in the province and guide local authorities accordingly. This matter has been necessitated by observations made that there may be many and various types of businesses operating in the province in contravention of section three of North West Business Act No 6 of 1997 as amended. Whilst the idea is not to stifle free trading and competition in the province, my Department has since realised that: This fiscal year we will be amending this Act further to ensure enforcement.

Some of these unlicensed businesses may be utilised to undermine the laws of the country, an example being the recent and much publicised notorious Broederstroom case, where people are operating a guest house and a restaurant which do not allow in people who are not of a Caucasian decent. There are mushrooming unlicensed businesses with the results that the business environment becomes overtraded to the detriment of legitimate and licensed traders.

Ons het besef dat om toe the laat da ‘n ongereguleerde besigheidsomgewing bestaan, die staat sal ontse van die vemeerding van die nodige inkomste en bronne wat noodsaaklik is om die inwoner van die Provinsie doeltreffend te dien.

In terme van die Algemene Omsendbrief No.1 van 2000 soos uitgereik deur die Departement, is die implementering van Die Noord-Wes Besigheid Wet Nr 6 van 1997 en die legulasies daarvan afgewentel na die Plaaslike Owerhede en ons sal mettertyd die munsipaliteite in die provinsie betrek in ons poging om die sukses van hulle implementering van die betrokke wet en die gepaardgaande by-wette te meet.

Madam Speaker, I will also, in due course, consider effecting the necessary amendments on this Act, updating it and bring it in line with current national policy development.

It may also be appropriate through the proposed amendments, to require our local authorities to submit periodic reports on the following, amongst others:

* the number and types of renewed licenses by area and revenue collected
* the number and type of new licenses issues by area and revenue collected
* the number and types of new licenses applications received by area and revenue collected
* the number and types of licenses transfers effected and their original and new areas of location and revenue collected
* the number of inspections carried out area by area and commensurate reports
* the number of transgressions reported and remedial steps taken thereof.

The responsible Business Regulation Unit in my Department will begin to engage all Licensing Units of Local Authorities in order to identify areas of need towards ensuring a conducive trading environment in the province.

Business compliance and monitoring issues

The Department had successful inspections carried out on businesses in order to monitor compliance with applicable laws of the province and the country. Our records show that during the financial year 2007/08, we were able to carry out 1951 trade inspections in the province with the reduction of the level of non- compliant achieved to below 5,6%. We were able to reduce outstanding complaints by 58% and only 50% of cases reported were compliant to the norm. We continued to offer consumer information and legal advice continuously as well as had twenty (20) Consumer Advice Clinics held in this period.

On matters relating to the administration of liquor, the Liquor Board had managed to convene seven times during this period where 1 444 applications were considered (against a total of 2 073 for the past financial year of 2006/07). Only 569 new liquor licenses were issued (against 878 issued during 2006/07), whilst 4 939 licences were renewed which includes the Merafong area.

Altogether, R2 201 829 in revenue based on returns was received by the province via the South African Revenue Services (SARS) who are the official revenue collectors for the province. This is against a total of R1 481 630 recorded during the financial year 2006/07. We continue to work on the new Provincial Liquor Act, which should be aligned to the new National Act No 59 of 2003 and we are hopeful that this will be finished during the course of the new financial year. Honourable Speaker, I will not be doing any justice if I will not refer to the growing concern on the effect of drugs on our society. As this is a national concern, we will remain guided by the national government on this issue. Notwithstanding, we will remain vigilant and increase our efforts towards regulating this industry.

Deputy Speaker, it is also significant to indicate that during this period, a total of 785 active liquor licenses were transferred to Gauteng and the Northern Cape respectively during August 2007 in accordance with the new Cross Boundary Municipalities Laws Repeal and Related Matters Act 2005.

The Department has also received 220 active files from Gauteng containing licenses issued and administered under the Liquor Act, 1989 which is the current Liquor Act applicable in the North West province. It will be realised from these figures that to some degree, the transfer of these files will also have a negative impact on the collection of revenue as more files have been transferred than received.

The Amendment of Provincial Acts under the department

Honourable Speaker, I am happy to announce that the much spoken about amendment of the Consumer Affairs (Harmful Business Practices) Act No 4 of 1998 is now complete and about to be certified and will soon be presented before your Honourable House for its adoption. I must concede to the fact that this took longer than anticipated and not for wanting to do so, but because of the legal technicalities that we had to deal with to all parties' satisfaction, and these brought about by the need to avoid the miscarriage of justice within the consumer environment. Notwithstanding, I am happy to announce that although the non-functioning of the Consumer Court created a huge impact in resolving disputes registered with the Department, we still managed to make a significant contribution in dealing with consumer matters.

The department is also currently pursuing amendments of the following Provincial Acts to ensure that they are in line with current corporate governance requirements and responding to the changing environment:

* the North West Gambling Act No 2 of 2001 (as amended) and
* the North West Parks and Tourism Act No. 3 of 1997

Voluntary Consumer Groups (VCGs)

Madam Speaker, in our efforts to create the necessary partnerships with communities, the Department has established 16 sustainable Voluntary Consumer Groups in various parts of the province. The Department also ensures that such VCGs are fully oriented in order to perform their functions by hosting workshops for them including providing them with documented information that will guide them on their tasks. So far, these VCGs are proving to be useful.

Liquor licensing

The Department has completed its Liquor Policy draft which was intended to inform the new Provincial Liquor Act. The draft policy also takes into account the outputs of the Provincial Regulatory Lekgotla held in 2007 and following the promulgation of the National Act all of what was put into the drafting process thus far, would have to be aligned to this piece of legislation. The new law in place now gives more clarity and guidance in regulating amongst others: Liquor administration institutional arrangements; liquor trading hours; location of liquor outlets; the sale and supply of liquor at service stations; liquor abuse and education awareness.

The New Boundary Demarcation issues

Altogether 1 066 liquor licenses are due for transfer to Gauteng and the Northern Cape in terms of the MoUs signed with the affected provinces. This number is broken down as follows:

Province: Gauteng
Active files: 567
Lapsed files: 178
Total lifted: 745
Conditional to be finalised: 161
Total number of files: 906

Province: Northern Cape
Active files: 109
Lapsed files: 44
Total lifted: 153
Conditional to be finalised: 7
Total number of files: 160

Totals

Province: Gauteng
Active files: 676
Lapsed files: 222
Total lifted: 898
Conditional to be finalised: 168
Total number of files:
1066

The Department has also received 220 active files from Gauteng containing licenses issued and administered under the Liquor Act, 1989 which is the current Liquor Act applicable in the North West province. It will be realised from these figures that to some degree, the transfer of these files will also have a negative impact on the collection of revenue as more files have been transferred than received.

Second economy intervention

Mmusakgotla, mo dingwageng di se kae tse di fetileng, re le lefapha re ntse re gatelela botlhokwa le tlhabololo ya kgwebo potlana ka ele injine ya kgolo ya ekonomi. Se se dumelwa ke lefatshe ka bophara, le bojotlhe jwa setshaba bo thagaletse go itlhagenedisa karolo ya go fitlhelela maitlhomo a leruri a kgolo le kitlano mo setshabeng.

Re ne rere re nale se mo dikakanyong re neelana ka molaetsa wa dithulaganyo tsa rona ngogola o o reng "go itlhaganisa ga tiragatso ya tsereganyo ya ekonomi ya bobedi". Mo go seo, re lemogile diprojeke le ditiragatso tse di mmalwa tse ka tsone di ka isang tsiriganyo ya ekonomi ya bobedi ko boemong jo bongwe.

Re tiile mooko gore re mo tseleng ya go itepatepanya le dikgwetlo tsa khumanego, botlhokatiro le ditlhabologo tse di kwa tlase ka kakaretso le go matlafatsa setshaba sa rona.

Small Business Support and Development

Skills development, inadequate development of new products, business model innovation and other related weaknesses continues to hamper the competitiveness of most small businesses in the North West. To tackle some of this, a total number of 489 small, medium and micro enterprises (SMMEs) were trained through a partnership programme between the Department and the Industrial Development Corporation (IDC) and registered in the Tsosanang Investment database for potential Extended Public Works Programme (EPWP) opportunities.

Knowledge and technology transfer towards seeking innovative and effective solutions to uplift the performance of local small firms will be our key local economic intervention in this coming financial year. We commit this Department to search and work with innovative institutions to develop innovation strategy so much needed to improve the competitive edge of our SMMEs.

In this financial year and true to the promise we made to SMMEs overburdened by debts they owe to the NWDC, three hundred and thirty three (333) SMMEs benefited from debt relief and rental subsidy programme we announced three years ago. It is quite encouraging to note that of this number 313 enjoy start up rental subsidy from the corporation in line with the Department mandate to assist SMMEs with business premises. This was one of the critical issues raised during our interactive izimbizo with the SMMEs. More properties will be made available for rental to SMMEs by the Corporation and in this connection the Department allocated ten million rands for refurbishment of current industrial parks and construction of additional factories. Two hundred and forty two temporary jobs were created and the new investments in our factories created 6 447 permanent jobs.

We are happy to announce today that tomorrow, 4 June we will be officially opening the new industrial factories space with twenty five (25) workshops for the SMMEs in the Dr Modiri Molema District. The NWDC turnaround agenda is slowly gaining momentum and in due course we will be making submissions to our Treasury indicating the resources required to place this organisation at the centre of the implementation of the developmental state agenda.

Madam Speaker, our overriding aim is ensuring that the developmental state makes important interventions to accelerate access to economic opportunities to reduce unemployment and poverty. The Department is linking small to large businesses so that SMMEs could have access to markets. While the private sector response to our intervention is slow as expected, we expect a much more resounding response from the public sector to the call for creating market for SMMEs. Hence, this year, we will implement the ten set aside products that public institutions should strictly procure from SMMEs.

Mmusakgotla, gompieno re dira boikuelo go badiri ka nna ba ba eteletseng mafapha a, makgotla le baetiledipele ba puso bogolo jang ba ba dirang mo dikarolong tsa dituelo ba tshwanetse go ema puso nokeng mo go atlenegisang boorra kgwebopotlana go ka tsena mo di marakeng tsa tse dilatelang:

* ditlhabololo le dipaakanyo tsa matlo
* tsamaiso ya bajanala
* tlhokomelo ya dijo tse di senyegang
* go phephafatso ya kwa ntle le mogare
* go rekisa le go gatisa tse dikwalelang
* dithoto
* thulaganyo ya dikopano (events)

Lefapha le tla nna le thulaganyo ya go lebelela fa mafapha a diragatsa dintlha tsa go tlhabolola bagwebi potlana.

Madam Speaker, in due course we will be engaging the private sector again imploring them to follow the public sector example. We are aware of the challenges that may arise relating to the capacity of the SMMEs to sustain consistent supply of these services and products and we have a plan to overcome some of those.

2007 Mega Expo update

The 4th Annual Mega Expo was held during the period 27th November to 1 December 2007 at the Mmabatho Convention Centre and the SABC Exhibition Centre. The event attracted 233 SMMEs from across the province, to showcase their products and crafts. The Expo also hosted two seminars: "Women in Business" and "Empowerment of the Physically Challenged Entrepreneurs Disabled in Preparation for 2010 Opportunities."

We intend to take the Mega Expo to a higher level this year and at the same time, maintain the goal of affording emerging small businesses an opportunity to network and establish linkages with other businesses, both locally and in neighbouring provinces. In addition, we will continue to create a platform for both emerging and established businesses to establish niche markets for their products and to showcase the products of local SMMEs. The Mega Expo is a Second Economy intervention which is aimed at addressing the problem of access to markets to emerging SMMEs.

Madam Speaker, on two occasions we addressed this august house about our initiative to assist SMMEs to access finance. Our momentum towards disbursing the Tsogang Lo Itirele Fund was brought to a halt when the National Credit Act introduced new measures regulating access to credit and as a result of this the fund was put on hold. We are now required to review our contract with ABSA in the light of this development and to this extent; we are of the view that the funds that were set aside would be used towards capacitating SMMEs to deliver on the set aside products and services. Our interaction with the National Small Industry Co-operation of India showed that we can acquire machinery that could facilitate bulk supply of certain products by the SMMEs.

The type of machines we are looking at to promote the usage of micro technology and innovation include amongst others

* bolts and nuts processing machine
* barbed wire making machine
* file fasteners
* stapling and punching machine
* steel furniture
* wire nail
* welded wire mesh
* laundry and toilet soaps
* paper cups and saucers and others such as notebooks, industrial gloves and socks.

This we will do focusing on youth and women entrepreneurs and locate these SMMEs at our small industrial parks currently managed by the North West Development Corporation. Madam Speaker, this initiative will bring us closer to making these SMMEs catalysts of innovation, knowledge and technology transfer so much instrumental to high growth.

"Business Unusual" approach requires us to elevate our intervention from mere supply support but also strengthen the demand side support and the intervention alluded to above is a direct respond to that requirement.

Building a strong cooperatives movement

Madam Speaker, our work in promoting the cultivation and beneficiation of indigenous plants is on going. The Madikwe Sisal, Wild Silk and Thatch Décor projects are on course and we are making efforts to mobilize additional investments. The Department of Trade and industry committed an amount of R5 million to further the Wild Silk initiative and the United Nation Development Organisation is financing further investigation in creating a regional wild silk processing plant to benefit the entire Southern African Development Community (SADC) region.

The department is in discussions with the Department of Trade and Industry (dti) to assist in strengthening institutional and commercial ventures of the Madikwe Sisal project.

Glass making Co-operatives

The Premier identified the need to further make interventions in the rural areas through the establishment of women co-operatives to recycle and manufacture glass products. The project was launched last year in Bojanala by the Premier and as custodians of the co-operatives Movement programme, the Department was tasked and has completed identification, training and registration of four women co-operatives who would own and do business to create jobs and wealth for other women in the localities. This project is funded by Extrata and in this financial year, the Premier will commission four glass making outlets in four districts.

Development and growth of the tourism industry

Madam Speaker, the second economy interventions would definitely be incomplete without venturing into utilizing opportunities arising from our growing tourism sector. Although the 2007 international visitor arrivals figures to the North West shows a reduction by 1,7% resulting in a loss of about R1,1 billion in revenue, we will be sparring no efforts to stop the decline and turn around this situation. More and more efforts will go towards increasing our destinations and marketing programmes to attract visitors in the province. Letlamoreng Dam second phase is now completed, the strategic environment assessment for SA Lombard is complete; the Bloemhof Dam Comprehensive Development plan is also complete. The drive for marketing the province will be boosted this year when we host the World Tourism Day in September, commissioning the Highveld National Park of which fencing and other infrastructure are complete, the game programme will start at this park once the proclamation is done sometime in September this year. We will further officially avail the new look of the Cooke's Lake and Letlamoreng Tourism facilities to the public.

Honourable Deputy Speaker, our marketing efforts this year will double as we extensively increase our work in the Russian, Chinese, Indian and Japanese markets.

Through the Social Responsibility programme funded by the National Department of Environmental Affairs and Tourism, four projects to the value of R24 million will be implemented in three districts namely; Dr Kenneth Kaunda and Dr Ruth Segomotsi Mompati Districts. In Dr Kenneth Kaunda, the targeted intervention would be towards refurbishment of the Tourism Infrastructure in Orkney, infrastructure improvement and provision of municipal recreation and conference facility at Abbey Bailey Nature Reserve whilst in Dr Ruth Segomotsi Mompati districts the target is the development of a community lodge for the Taung protected environment project. All of these, Deputy Speaker, would also form an essential contribution of the Department towards the Expanded Public Works Programme.

Further to the initiative of increasing the capabilities of our tourism industry, the North West Parks and Tourism Board concluded a relationship with the Copenhagen Zoo on the rhino monitoring and management project and a Memorandum of Understanding was concluded in April this year. The Copenhagen Zoo will be investing R5 million towards developing a fully fledged research facility at Pilanesberg National Park including management costs of the facility.

Integrated Rural Development Strategy

Deputy Speaker for as long there remains persistent pockets of underdevelopment within rural communities of our province, the challenge to increase economic participation of the overwhelming majority of the population in gainful activities towards eradication of unemployment and poverty will only but remain a dream yet to be realised. In the whole efforts towards industrialisation of economy, key infrastructure is required in rural areas to attract local investment and it is only through the active role of the developmental state that rural development will find meaning. The potential of the PGDS project located in rural areas requires a boost through linkages that could be achieved through investment into our Spatial Development Initiative corridors. Rural development cannot and should not be limited to only cultivation of land and trading in raw materials without introducing advanced agro-processing initiatives.

Broad Based Economic Empowerment (BBBEE)

Deputy Speaker, since the introduction of the Broad Based Black Economic Empowerment policy in the Republic, we are yet to see substantive "trickle down" of the benefits of this progressive strategy into the North West province. As we strive towards a North West adapted BBBEE strategy, we have noted that it is only in the mining sector where there are visible efforts to adhere to this policy, otherwise in the rest of other sectors of the economy progress is very minimal if any at all.

Strengthening the role of the developmental state

No other time than now has the interface of political and administrative leadership has been central to the development discourse of a developmental state. "Business unusual" calls for the bridge between vision and delivery whereby mere restating of the vision will never be a sufficient response to the urgency of service delivery.

The Department of Economic Development will this year ensure the improvement of leadership skills and expertise to drive key programmes of economic development, translating our vision into demonstrable practical programmes and activities.
In the last financial year, the Department employed 21 internship learners and 76% of these were absorbed in the public sector including our own Department. This year 18 learners will be employed and this time the target would be graduates in the tourism and hospitality sectors aimed at addressing critical and scarce skills.

New structure for Economic Development Department

Madam Speaker, government decided to establish uniform organisational structures of economic development for the provinces in the country. It is for this reasons that our budget this year is allocated in terms of modified strategic objectives. The new structure focuses the Department on five key objectives, namely; administration that will manage finance and corporate services matters;
Integrated Economic Development Services is catering for enterprise and LED development as well as economic empowerment; Trade and industry development where trade and investment promotion, sector and industry development is located, Business Regulation and Governance dealing with Corporate Governance, consumer protection, liquor regulation, gambling and betting.

The last one is Economic Planning with main functions being policy planning, research and development, knowledge management, monitoring and evaluation.

We are hard at work adapting these changes to the Department and at the same time utilizing this as an opportunity to align the Department structure, skills, competencies, processes and performance in general to the demand of the economic challenges we face.

Whatever implications of these changes on the resources of the Department that will be known once we complete the organisational design processes we are engaged in to adapt these changes. This will not affect our agencies, though they are an important part of our exercise to avoid any duplication of functions and/or funding.

Madam Speaker, we now take this opportunity to present our 2008/2009 budget allocation. Approved budget for the year is R233,387 million, which is a reduction of R64,099 or 27,4% from the previous year’s allocation. In terms of allocation per programme the situation would be as follows:

Programme description
Budget: R'000

Administration: 35,654
Integrated Economic Development Services: 12,732
Trade and Industry Promotion: 153,570
Business Regulation and Governance: 23,071
Economic Planning: 8,360
Totals: 233,387

An amount of R156, 425 million representing 67, 02% of the budget is earmarked to be transferred to and for activities of the following entities:

Public Entity
Allocation: R'000

North West Parks Board: 113,141
Invest North West: 15,487
Mafikeng Industrial Development Zone Operations: 5,520
Mafikeng Industrial Development Zone- Capital: 10,000
North West Gambling Board: 12,277
Totals: 156,425

Conclusion

"If we have chosen the position in life in which we can most of all work for mankind, no burdens can bow us down, because there are sacrifices for the benefit of all; then we shall experience no petty, limited, selfish joy, but our happiness will belong to millions, our deeds will live on quietly but perpetually at work, and over our ashes will be shed the hot tears of noble people.
History calls those men the greatest who have ennobled themselves by working for the common good; experience acclaims as happiest the man who has made the greatest number of people happy" (K Marx 1837 in a letter to his father) At all times, we must strive to make the happiest number of people.

Madam Speaker, taking cue from the sentiments expressed in Daniel Steel novel titled Journey, the journey to struggle with our people and lead them towards a better life began long time ago, it is been long and we do not regret it. We know it has been hard more often than easy. In the mist of terrifying darkness, thick forests, high mountains through it all perilous as it seemed at times, we were journeying on towards that pinpoint and tiny light.

Our determination, wisdom, strength and courage will not fail us as it has never before, to soldier on with faith, hope and even blind believe toward lasting freedom and a better life for all our people.

To all men, women, youths, workers, unemployed, students, councilors, officials and you in particular, colleagues and comrades present here today, we thank you so much for your support.

Madam Speaker, Mme wa rona, tonakokgolo Edna Molewa, colleagues in the executives, without your able leadership and support, we could never be at this point.

My support staff, helpers and cleaners, thanks you!

Once again, to Team Economy, my indebtedness to you is forever growing and the new financial year is ahead, let us do it again. I also wish to congratulate the new Head of Department, Mr Tlaletsi and wish him all the best in providing strategic guidance to the team.

To you and those who came before you, in particular, Mr Mojalefa Nale, all our Chief Executive Officers and Boards- Thank you for your support.

To my beloved Thandi and our family who are beside me with faith and love, in you rest my whole heart and soul.

I thank you,
Re a leboga,
Baie Dankie.

Issued by: Department of Economic Development and Tourism, North West Provincial Government
3 June 2008