Gauteng Liquor Board Toothless Without New Licensing Legislation

The Gauteng Liquor Board (GLB) has revealed that it does not have the power to revoke existing liquor licenses, nor does it have the ability to take seriously any objections which are raised as to the renewal of existing licenses without new legislation.

This was revealed to the Gauteng Economic Development Portfolio Committee after the DA had requested that GLB be summoned to appear before the committee to provide an explanation as to why there has been an increasing number of complaints about licensing and the growing number of illegal operators across the province.

The GLB explained to the committee that almost half of all liquor traders in Gauteng do not possess legal liquor licenses, and in some areas – such as Cosmo City, only 1 in 4 premises actually have a license.

The board expressed concern that unless the current Liquor Act is replaced by legislation that has been mooted for a number of years already, the situation will continue to spiral out of control.

Delays in the processing of new applications, fake licenses, and illegal establishments mushrooming across the province will remain the order of the day if Gauteng MEC for Economic Development, Lebogang Maile continues to wring his hands on the matter.

MEC Maile must expedite the process of ensuring that this legislation be brought before the Gauteng Legislature to resolve these issues, not only to ensure that illegal operators are brought to book, but to ensure that legal businesses can begin to trade sooner rather than later.

 

 

 

Media Enquiries
 
 
 
Janet Semple MPL
DA Gauteng Shadow MEC for Economic Development
082 462 8239
 
Warren Gwilt
DA Economic Cluster Manager
073 601 6144
[Image source]
 

Cradle Of Humankind’s Heritage Status May Go Extinct

Land Fragmentation and Land Development

The Gauteng Department of Economic Development must take swift action to prevent the Cradle of Humankind from losing its world heritage status.

Reports by the Cradle of Humankind Director, Mags Pillay to the Economic Development Oversight Committee that the heritage site is under threat due to land fragmentation and land development raises serious concerns about the department’s role in executing its functions as an environmental agency.

MEC for Economic Development, Lebogang Maile must liaise with Gauteng Cooperative Governance, Traditional Affairs and Housing MEC, Paul Mashatile to iron out spatial development and new housing projects ear-marked for the area.

While the need for housing and access to land is a pertinent issue, the Cradle’s scientific and tourism value should not be compromised.

The DA will actively work with all interested parties to ensure that the Cradle does not lose its world heritage status, nor that its tourism numbers decline.

 

 

 

Media enquiries:

Janet Semple MPL

DA Gauteng Shadow MEC for Economic Development

082 462 8239

 

Warren Gwilt

Economic Cluster Manager

073 601 6144

[Image source]

Ekurhuleni’s Environment Decays As MEC Idles

Swartspruit – Ekurhuleni

The massive diesel spillage into the Swartspruit, Ekurhuleni has highlighted the Gauteng Department of Economic Development’s limp-wristed approach to ensuring that environmental damage it mitigated throughout the province.

Information obtained by the DA indicates that while the Department has ensured that all boxes have been ticked in terms of statutory compliance according to the National Environmental Management Act (NEMA), agreements to increase and capacitate the Ekurhuleni Metropolitan Municipalities’ environmental enforcement unit have not been fulfilled.

In 2011 a Memorandum of Understanding (MOU) was signed between the Municipality and the Gauteng MEC for Economic Development to provide the municipality with Environmental Management Inspectors (EMI) whose responsibility it is to ensure businesses and industries throughout the Metro comply with environmental legislation.

Massive in-migration

According to the 2011 MOU, 25 EMI positions were to be established. To date Ekurhuleni only has two EMIs who are expected to inspect more than 5000 businesses.

Given that Gauteng experiences massive in-migration and with it, an increase for goods and services, it is likely that this municipality will need more than 25 EMIs.

I will pose questions to the MEC for Economic Development, Lebogang Maile, as to why these post have never been filled, and why the Department, through the inter-governmental relations framework has not done more to monitor and track environmental compliance in Ekurhuleni.

 

Media enquiries:

Janet Semple MPL

DA Gauteng Shadow MEC for Economic Development

082 462 8239

[Image source]

Gauteng Enterprise Propeller: Funding Flows Despite Ongoing Investigation

Gauteng Enterprise Propeller

In August 2015, a moratorium, pending the outcome of a forensic investigation, was placed on all funding by the Gauteng Enterprise Propeller (GEP) as it was revealed that R100 million in loans – which had effectivity bankrupted the entity,  had been unpaid over a period of 10 years.

While the investigation is still ongoing, GEP at a portfolio committee meeting held in Reiger Park last week, made an about turn and announced that it will now resume with its current funding model which is clearly unsustainable.

Forensic Investigation

While GEP has a critical role to play in assisting start-up businesses and empowering entrepreneurs, it cannot conduct business as usual.

It is imperative that public funds are safeguarded from misuse and malpractice.

GEP must wait for the outcome of the forensic investigation to assess what it is that is causing it to bleed money and not recoup loans.

I will write to the MEC for Economic Development, Lebogang Maile, and request that he either instruct GEP to reinstate the moratorium on funding until the results of the forensic investigation are made public or reveal where the new stream of revenue is coming from.

 

Media enquiries:

Janet Semple MPL

DA Gauteng Shadow MEC for Economic Development

082 462 8239

[Image source]

Gauteng Enterprise Propeller Must Diversify To Stay Viable

Gauteng Enterprise Propeller – GEP

The DA notes the move by Gauteng Economic Development MEC, Lebogang Maile, to root out corruption in the Gauteng Enterprise Propeller (GEP) which has nearly bankrupted the entity, but recommends a re-evaluation of its entrepreneur programme.

According to MEC Maile, GEP has only R30 million left for this financial year, which it still has to use to run operations and pay employees.

The entity, which has been in existence since 2005, is owed R100 million in unpaid loans.

Effective Use of Loans

What is becoming increasingly apparent is that the laissez-faire approach to providing loans to entrepreneurs is no longer viable.

The DA recommends that tight controls be put in place before loans are given and that tight credit control is exercised over repayments.

However, what emerging entrepreneurs mostly need is mentorship from industry experts, for without practical application and knowledgeable insight, these loans will not be utilised effectively.

 

Media enquiries
Janet Semple MPL
DA Gauteng Shadow MEC for Economic Development
082 462 8239

[Image source]

Economic MEC’s Township Economy Programme Lacking Substance

Township Economy Revitalisation Programme

Gauteng MEC for Economic Development, Lebogang Maile, has promised to work with township business owners in Tembisa, Ekurhuleni, who have sited municipal rates as the major stumbling block holding back their growth, in an effort to bolster his departments Township Economy Revitalisation Programme (TERP).

However, what the MEC has failed to realise is that while his intervention, while outwardly noble, is far too focused on one location for his TERP to be viable across Gauteng.

Of all three metropolitan municipalities across the province, Ekurhuleni has the lowest rates for water, electricity and other municipal services.

Limited Information, Limited Consultation

While the claims of township business owners in Tembisa are, as the MEC put it – most likely legitimate, Tembisa is not the only township in Ekurhuleni nor the province where business owners have challenges paying municipal rates.

For the TERP to truly distinguish itself and be a viable programme, wider consultation must be held with all stakeholders from all municipalities across Gauteng both local and metro.

What is evident from the limited information offered by both the MEC and the Department is that TERP is more of a talk shop project than one of any real substance and it is highly unlikely that any real significant change will be made to improve the climate of township economies.

Cumbersome Bureaucratic Regulation

One of the ways in which the MEC could assist would be to establish special economic zones in townships, as recommended in the Department of Trade and Industry’s Industrial Policy Action Plan, reducing cumbersome bureaucratic regulation and incentivising SMMEs.

The DA will continue to support township businesses and offer positive solutions to get people working in sustainable ways, not simply attempt to gloss over real issues with empty promises.

Media enquiries
Janet Semple MPL
DA Gauteng Shadow MEC for Economic Development
082 462 8239

[Image source]

Budget Vote Speeches: Economic Development

Note to editors: The following speeches were delivered in the Gauteng Provincial Legislature today by the DA’s Shadow MEC for Economic Development, Agriculture, Rural Development and Environmental Affairs, Janet Semple MPL, Spokesperson for Economic Development, Agriculture, Rural Development and Environmental Affairs, Janho Engelbrecht MPL, and Spokesperson for Economic Development, Agriculture, Rural Development and Environmental Affairs, Ina Cilliers MPL, during the 2015/16 Annual Budget Debate on the Department of Economic Development.

 

Focused Intervention and Less Fluff to Stimulate Gauteng Job Growth

Speech by: Janet Semple MPL – DA Gauteng Shadow MEC for Economic Development, Agriculture, Rural Development and Environmental Affairs 
  • Gauteng is home to the most unemployed and out-of education labour force in the country at a shocking rate of 49.9%.
  • A person with a job is a person with dignity, a person who can hold his or her up head high before their family, a person who can put bread on the table.
  • Businesses dependant on state contracts and tenders are not increasing competition.
  • There is no programme around red tape reduction or any assessment of business processes to see where the state is creating bottlenecks.

The full speech can be obtained here.

 

 

Ten True Pillars of Economic Transformation Required in Gauteng

Speech by: Janho Engelbrecht MPL – DA Gauteng Spokesperson for Economic Development, Agriculture, Rural Development and Environmental Affairs

If one look at the priorities and strategic objectives of the Department and the 10 pillars of the province, it reads like a page out of a political catchphrase textbook.

  • Redress should be an all-inclusive process, not exclusively for the well connected. In doing so it will allow access to capital, allow participation in the economy, and increase ownership.
  • For the many millions of unemployed in Gauteng, this administration sets itself above its people.

The full speech can be obtained here.

 

 

Economic Budget Lacks Transformative Substance

Speech by: Ina Cilliers MPL – DA Gauteng Spokesperson for Economic Development, Agriculture, Rural Development and Environmental Affairs

 

  • The department will not be looking at a red tape reduction unit then, this despite the National Department of Small Business’ decision to emulate the Western Cape’s unit earlier this year.
  • How will a township entrepreneur benefit from business infrastructure placed in his backyard if it still takes him months to register his business and cannot attract investors or expand his payroll without understanding how red tape will affect him?

The full speech can be obtained here.

 

Media enquiries:

 Janet Semple

DA Gauteng Shadow MEC for Economic Development, Agriculture, Rural Development and Environmental Affairs

082 462 8239

 

Janho Engelbrecht

DA Gauteng Spokesperson: Economic Development, Agriculture, Rural Development and Environmental Affairs

060 556 4343

 

Ina Cilliers

DA Gauteng Spokesperson: Economic Development, Agriculture, Rural Development and Environmental Affairs

060 556 4344

[Image source]

SPEECH BY MRS JANET SEMPLE, MPL IN THE BUDGET DEBATE ON ECONOMIC DEVELOPMENT DELIVERED IN THE GAUTENG PROVINCIAL LEGISLATURE ON TUESDAY, 23 JUNE 2015

Focused Intervention and Less Fluff to Stimulate Gauteng job growth

Note to Editors: This address was made in the Gauteng Provincial Legislature during the 2015/16 Annual Budget Debate on the Department of Economic Development Budget Vote

 

The current rate of unemployment particularly amongst the youth should be the number one focus and concern of everyone who cares about the future of our country. Gauteng is home to the most unemployed and out-of education labour force in the country at a shocking rate of 49.9% according to recent labour force statistics. It has increased year on year by 9% or 282 000 since the previous financial year. This figure is a clear indicator that Gauteng is sitting on a ticking time bomb!

It is also an indictment on an administration that has entities such as the Gauteng Enterprise Propellor (GEP), Gauteng Funding Agency (GFA) and the Gauteng Growth and Development Agency at its disposal to stimulate economic and job growth.

A person with a job is a person with dignity, a person who can hold his or her up head high before their family, a person who can put bread on the table.

We have to work together to break the vicious cycle of low growth, high inflation and high unemployment.

The DA understands this cannot be done by one sector of South Africa on its own: it needs a joint effort from the government, state-owned enterprises, labour, business, educational and research institutions as well as individuals who must all play their part.

Nothing more clearly illustrates the deep divide between the “haves” and the “have-nots” than the contrast between the 15.5 million South Africans who are working as compared to the 3.2 million South Africans who have given up looking for work together with the 5.5 million who are not able to find employment.

The biggest sector of the unemployed is the youth which make up 70% of the total unemployed population in South Africa. According to the Daily Vox this mean there are more jobless young people today than ever before. The reasons for this, amongst others are:  the skills mismatch; the education system; training that occurs in a vacuum; poor networks i.e. not what you know but who you know; government programs that don’t understand the youth; and discouraging the spirit of entrepreneurship.

The budget of the Department of Economic Development has increased by R205 119 000 or 8.25 %.

The main focus of the Department should be to facilitate conditions for increased job creation. This would mean cutting red tape and unnecessary regulations that make it difficult for small businesses to start up and thrive; it would mean encouraging local government structures to make the life of hawkers easier; it would mean setting up special economic zones where some regulations are relaxed; it would mean fast tracking applications for business and liquor licences; it would mean reducing the burden of paying for E-Tolls; it would mean exempting small businesses from onerous labour legislation and it would mean creating markets with better access for small businesses.

All this would lead to increased economic growth.

The proposed budget by the Department of Economic Development for 2015/16 makes little mention of actual job targets.  The official unemployment rate in Gauteng is slightly higher than the national unemployment rate in South Africa. Trade, community and social services (government) and finance are the biggest employers of the province’s work force.

Gauteng is the heart of the financial services sector (business, banking, finance and IT) in the country with many head offices based in the province.  We should take advantage of this employment opportunity, but our education system needs to provide learners with the skills to take up positions in these industries.

Sadly the manufacturing sector in the province is declining mainly due to the lack of reliable water and electricity resources and an inflexible labour system prompting many to take their factories and prospects of employment to our neighbours like Lesotho and Botswana. General Electric one of the US’s great industrial companies has decided to locate its Africa headquarters in Nairobi rather than Sandton.  This move is apparently driven just as much by easy access to a huge market of people as it is by the infrastructure challenges faced in South Africa.

The various entities that are funded by the Department have grand plans but little action or measurable targets. The Gauteng Enterprise Propellor (GEP) is proud to report on having financially supported 643 existing SMMEs, 673 new SMMEs and 95 existing Cooperatives but we have no idea whether these are one man bands or exactly how many people benefitted. The Department claims to have created 4006 direct jobs which comes at a cost of R276 000 per job taking into consideration the annual budget of the Department.  This money could have been far better spent on training young, unemployed residents of Gauteng and giving them the skills to participate in the financial sector. More effort should be made to ensure the sustainability of the SMME sector beyond just incubation and then abandonment.

This could be done by creating greater market access for SMMEs.

The ANC seems to think that it is only through state contracts and procurement by the state that it can grow black businesses and black employment. This is borne out of the announcement that the Gauteng Provincial Government will ensure 30% of its procurement is from small black owned businesses.  This is a fallacy, as businesses dependant on state contracts and tenders are not increasing competition and competing in the market – which in turn lowers the price of goods and services, without stimulating demand and creating jobs.

There are no programmes in place to assist small businesses to have greater market access so to supply goods and services to other businesses and to consumers directly rather than just to the State. MEC Maile keeps speaking about the ‘white monopoly capital’ value chain but doesn’t have any programmes to ensure market access for new entrants. Furthermore, there is no programme around red tape reduction or any assessment of business processes to see where the state is creating bottlenecks and barriers to entry for SMMEs.

A DA led Gauteng Department of Economic Development should do the following;

  • Open a red tape reduction programme and dedicated support centre to assist SMMEs to deal with red tape
  • Use the broadband capacity of the Gauteng Broadband Network to provide every start up business and SMME with (1) a basic website, (2) e-mail and(3) search engine optimisation (so they appear on google searches) as part of a market access programme;
  • Set up a portal with comparative pricing for businesses and consumers to be able to source goods and services from SMMEs as part of a market access programme – this will force them to compete with each other for business and not only for state tenders; and
  • Encourage larger small enterprises to provide goods and services (particularly high value goods and scare skills based services such as ICT) to all SADC countries as opportunities for growth and access to new markets. The department should facilitate where necessary

The Gauteng Enterprise Propeller (GEP) is receiving a marginal increase in budget, from R129 291 000 to R129 838 000. It would make more sense for GEP to absorb, manage and run all of the department’s SMME support programmes, turning it into a one stop shop for small business incubation and support. It has had a difficult history, but under its new CEO has had quite a turnaround (the CEO is a former Standard Bank executive if I remember correctly). However, GEPs continued financing of small businesses is money that could be used elsewhere if part of its mandate was to ensure start-ups are viable and in a position to access capital from the private sector, making GEP a lender of last resort. It makes no sense when many private sector financial institutions have the programmes and capital for start-ups to run identical programmes.

My colleague, Janho Engelbrecht and I last week visited the Gauteng Investment Centre (GIC) in Sandton. This place and the friendly, informative people who work there actually changed my perception of government entities forever. My main criticism of the GIC has always been why is it in Sandton?

Yes I understand the rationale that it is close to the Gautrain and a short train ride from O R Tambo for foreign investors. This sets the bar high for all such facilities in your Department and we should try and mirror this set up all over Gauteng.

I got the feeling that the people who work in the GIC are passionate about what they do and really want to help. How refreshing!

My suggestion would be that we transform all GEP offices throughout the Province into similar type operations. Obviously not as luxurious but bright, modern and with a “we aim to please” attitude. The one stop shop concept of having Home Affairs, VSP and SARS on the same premises to speed up visa applications and tax clearance is a winner and grouping similar type services in offices such as GEP would make the whole process of doing business in Gauteng so much easier. This would lead to more investment and greater employment and the opportunity of a more prosperous life for all.

Gauteng Economic Development MEC Silent on Job Creation

Jobs Created Through Gauteng Department of Economic DevelopmentJanet Semple DA Gauteng Shadow MEC for Economic Development

Despite numerous requests by the Gauteng Legislature’s Economic Development Committee, MEC for Economic Development, Lebogang Maile, has failed to provide the number of jobs created through initiatives administered by his department.

Over the four quarters of the 2014/15 financial year, the committee repeatedly asked the MEC to provide these figures.

Sadly, they were never produced.

Transformation, Modernisation and Reindustrialisation (TMR)

As part of Gauteng Premier David Makhura’s vision of Transformation, Modernisation and Reindustrialisation (TMR) for the province – the Department of Economic Development has a critical role to play.

Without tangible figures to pair with budgetary expenditure, the success or failure of this department, and ultimately the TMR programme, will be impossible to assess – and in all likelihood come to naught.

This trend is set to continue, as the MEC failed to include any forecasts in this year’s (2015/16) Annual Performance Plan.

Unemployment in Gauteng

In a province with an unemployment rate sitting just over 46%, it is critical that the Department ensures that it has a system in place to adequately adapt to the demands of the people.

I will continue to push for these indicators to be included in the Department’s performance assessment plans towards realising freedom, fairness and opportunity for all.

To this end I will be submitting oral questions to the MEC demanding an explanation as to how the Department aims to increase job creation without targets and outcomes measurement of programmes.

Media enquiries
Janet Semple MPL
DA Gauteng Shadow MEC for Economic Development
082 462 8239

[Image source]

Departmental Bungling Could Shut Down SMMEs

At least five SMMEs participating in the Mohlakeng Hub on the West Rand face closure if the Gauteng Enterprise Propeller (GEP) fails to sign a memorandum of understanding (MoU) with the Randfontein Local Municipality to inject R6 million in to this project over the next three years.Janet Semple DA Gauteng Shadow MEC for Economic Development

GEP has until 31 March 2015 to sign this agreement.

Aim of the Hub

Coupled with this cash injection, the Gauteng Department of Economic Development and its entity, GEP, have agreed to foot the bill for participants’ municipal bills, but cannot do so until the MoU is signed.

The aim of the hub is to incubate SMMEs in the following sectors:

  • Carpentry;
  • Furniture manufacturing;
  • Welding and steel works;
  • Embroidery and clothing manufacturing.

Not Functional

At a presentation to the Gauteng Economic Development Portfolio, it was revealed that despite service provider WESTCOL facilitating training, the hub is currently not functional.

What is of even more concern is that there are no partnerships in place with experienced incubators or hubs to increase the knowledge capacity of participants.

The hub also requires an intensive incubation programme to assist participants in growing their businesses and understanding the market environment.

The Importance of SMMEs

Gauteng Premier, David Makhura, in his State of the Province Address emphasised the importance of SMME stimulation and growth to aid in the re industrialisation of the province.

However, Mohlakeng is one of many examples where the administration jeopardises the future of small and medium sized business by not creating an environment conducive to sustainable market access or competitiveness.

Rather, for many it is like starting on the back foot.

Gauteng Economic Development MEC, Lebogang Maile, must ensure that this MOU is signed before five more SMMEs in the province fail as a result of bureaucratic bungling.

The DA will monitor this situation closely to ensure the sustainability of this project.

 

Media enquiries
Janet Semple MPL
DA Gauteng Shadow MEC for Economic Development
082 462 8239

[Image source]