TRANSPORT AGENCIES GENERAL LAWS AMENDEMENT BILL, B27B- 2007

Presentation to the Select Committee on Public Services

(NCOP )

17 OCTOBER 2007

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BACKGROUND

• The Transport Agencies General Laws Amendment Bill, B27B, 2007 deals with various Entities under the control of the Department of Transport

Each of these entities has been established by a separate Act of Parliament.

These Acts provides for the appointment of Board members for each of the above entities.

The procedures for the appointment of Board Members and the CEO’s is streamlined.

The Amendment Act will bring about a simpler process for the appointment of the Board Members and the of CEO’s

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OBJECTS OF THE BILL

The principal object of the Transport Agencies General Laws Amendment Bill, B27B-- 2007 is to amend the principal Acts which establishes the following entities;Cross Border Road Transport Agency . (Act No. 4 of 1998).●South African Maritime Authority.( Act No. 5 of 1998)●South African National Road Agency Limited. (ACT No. 7 of 1998).●The Transport Appeal Tribunal. (Act No. 39 OF 1998)●The South African Civil Aviation Authority. (Act No. 40 of 1998).●The Road Traffic Management Corporation. (Act No. 20 of 1999).●National Railway Safety Regulator. (Act No. 16 2002)

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OBJECTS OF THE PROPOSED AMENDMENTS

To provide for the appointment of Members of the various Boards by the Minister;To streamline the process and procedure for the appointment of the Members of the various Boards; To provide for the filling of occasional vacancies on the Boards; To provide for the conclusion of performance agreements between the Minister and the Agencies where this requirement does not exist.

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OBJECTS OF THE PROPOSED AMENDMENTS continued

To provide for departmental representation to the Board.

To provide for the extension of the terms of office of Members of the Board when necessary, in order to finalize the process of appointment of new Members.

To reduce the term of office of the members to a three years period and

To delete certain obsolete provisions. To inform Parliament about the new appointed members

of the board.

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CLAUSE BY CLAUSE DISCUSSION OF THE AMENDMENT BILL, 2007CROSS BORDER continued

Clause One● Clause 1 of the Amendment Bill amends section 5 of

the Cross-Border Road Transport Act, 1998;● Clause 1 (a) amends subsection 5 (2) (b) of the

principal Act by deleting the words “and” by addition of paragraph (b A) and (b B). The two new subsection (b A) and (b B) adds the CEO and the department’s representative to be members of the Board.

● Clause 1 (b) of the amendment Bill substitute the whole section 5 (2) (c) by indicating the types of expertise required for the appointment of four out of eight members of the Board.

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CLAUSE BY CLAUSE DISCUSSION OF THE AMENDMENT BILL, 2007

CROSS BORDER continued

● Clause 1 (c) substitute the cumbersome process of appointing the Board members. The amendment Act exclude the process of calling nomination of members through the Gazette and calling for objections before the Minister can appoint the Board members

● Clause 1 (d) amend section 4 of the principal Act by deletion of the words (Board or )

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Amendment of section 7 of Act no. 4 of 1998.( period of appointment of chairperson and

deputy chairperson)

● Clause 2 of the amendment Bill, amend section 7 by addition of subsection 7 (4). The new section empowers the minister to extend the term of office of the Board members while he/she is finalizing the appointment of the new Board.

Amendment of section 10 ( Notice of appointment)

● Clause 3 of the Bill amends section 10 of the principal Act.

● The Minister must within 30 days from the date of appointment of a member or alternate member of the Board notify Parliament of such appointment and publish a notice in the Gazette

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Amendment of section 7 of Act no. 4 of 1998.( period of appointment of chairperson and deputy chairperson) continued

Amendment of section 14 (staff of the Agency)

● Clause 4 of the Bill, amends section 14 of the principal Act

● The CEO is now appointed by the Minister on recommendation of the Board.

● The CEO is appointed by the Minister on terms and conditions as may be recommended by the Board in writing to the Minister.

● The CEO is empowered to appoint staff subject to the approval of the Board.

● The CEO manages the Agency subject to the direction and control of the Board

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New insertion of section 22A in Act 4 of 1998

Clause 5 is a new insertion and it empowers the Minister and the Agency to enter into a Performance Agreement.

● The new insertion indicates issues which the Performance Agreement should entail.

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SAMSA INSERTION OF SECTION 6A IN ACT NO. 5

OF 1998

Clause 6 of the amendment Bill, amend section 6 of the South African Maritime Authority by insertion of section (6A).Section 6A empowers the Minister and the Agency to enter into Service Level Agreement.Clause 6A tables issues which should be contained in the Service Level Agreement.

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AMENDMENT OF SECTION 12 OF ACT. 5 OF 1998

Clause 7 of the amendment Bill, amends section 12 of the principal Act by giving the Minister a discretion to appoint an official of the Department to represent the Department in the Board.Clause 7 (c) substitute subsection 12 (4) by indicating the type of expertise which the Minister should take into account when appointing a person as a member of the Board.

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AMENDMENT OF SECTION 13

• Clause 8 of the Bill amends section 13 of the Act by reducing the term of office of the members, from five to three years and a member is eligible for re-appointment for a further period not exceeding three years. The Minister may extend the period of appointment of the Board until finalization of the new Board.

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AMENDMENT OF SECTION 15 OF ACT 5 OF 1998

● Clause 9 substitute section 15 (1) by prohibiting a member from engaging in any paid employment that will cause conflict of interest.

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AMENDMENT OF SECTION 22 OF ACT 5 OF 1998 (CEO)

● Clause 10 of the Bill amends section 22 of the principal Act by substituting section 22(1) with subsection (1) (a) and (1) (b). The new amendment empowers the Minister to appoint the CEO on the recommendation of the Board.

● The CEO holds office on such terms and conditions including those of remuneration and allowances as the Minister in consultation with the Minister of Finance and on the recommendation by the Board, may determine in writing.

● Clause 10 (b) delete subsection (5) and (6) of section 22.

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REPEAL OF SECTION 24 OF ACT NO. 5 OF 1995 (TERMS AND CONDITIONS OF SERVICE OF THE

CEO)

● Clause 11 repeals section 24 of the principal Act

● Clause 12 substitute section 25 of the Principal Act . Resignation.

● Previously the CEO was resigning in writing to the Board. The Amendment Bill requires the CEO to resign in writing to the Board and the Minister.

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SOUTH AFRICAN ROADS AGENCY LIMITED AND NATIONAL ROADS ACT, 1998 (ACT NO. 7 OF

1998)

● Clause 13 of the amendment Bill repeals section 11 of the SANRAL Act.

● Clause 14 of the Bill amends section 12 of the SANRAL Act by substitution for subsection 2 with new subsection 2.

● The new subsection 2 indicate the composition of the Board

● Departmental representation is included

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CLAUSE 14 – CONTINUES

● The type of skills to be considered for the appointment of the Board is also indicated

● Clause 14 (C) substitute subsection 3 (a) of the principal Act by empowering the Minister to appoint the Board Members

● Clause 14 (3) (b) empowers the Minister to invite nominations of members of the Board through the Media unlike in the principal Act where Invitation for nomination of members was through the Gazette. The appointment process is streamlined

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AMENDMENT OF SECTION 13 OF ACT NO. 7 OF 1998

● Clause15 of the amendment Bill amends section 13 of the principal Act by reducing the term of office to three years and empowers the Minister to further appoint such members for a further period not exceeding three years.

● The amendment Bill also empowers the Minister to extend the term of office up until finalization of appointment of the new Board.

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AMENDMENT OF SECTION 14

● Clause 16 of the Bill amend section 14 of the principal Act by deletion of the words [by the Minister] and the reference to section 12(3) is replaced by reference to section 12.

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AMENDMENT OF SECTION 19 OF ACT 7 OF 1998

● Clause 17 of the Bill amend section 19 by empowering the Minister to appoint the CEO on the recommendation of the Board unlike in the past where the Board was appointing the CEO.

● The CEO will hold office for a period of five years and is eligible for re-appointment.

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TRANSPORT APPEAL TRIBUNAL

AMENDMENT OF SECTION 4 OF ACT 39 OF 1998

● Clause18 of the Bill amend section 4 of the Act by substituting subsection 2 for paragraph (b)

● The new amendment shortens the appointment procedure of the members of the Tribunal.

● Subsection 3 is deleted in toto. 22

SOUTH AFRICAN CIVIL AVIATION AUTHORITY ACT, 1998 (ACT NO. 40 OF 1998)

● Clause 19 of the amendment Bill amend section 8 by substituting subsection 2.

● The substituting section empowers the Minister to appoint the Board.

● Clause 19 (b) insert subsection 8 (2 A). The new insertion deals with the expertise that should be taken into account by the Minister in appointing a person as the Board member.

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SOUTH AFRICAN CIVIL AVIATION AUTHORITY ACT, 1998 (ACT NO. 40 OF

1998)- Continues

● Clause 19(c) Substitute subsection 8 (6) for the new subsection 6. This section streamlines the procedure for appointment of Board members

● The cumbersome process of calling nomination through the Gazette and inviting objections is done away with. The current position will be invitation of nomination through the media from any person or body with an interest in Aviation industry, or labour and consumer sector.

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AMENDMENT OF SECTION 9 OF THE PRINCIPAL ACT

● The Board’s term is reduced from five years to three years with eligibility of being extended for a further period not exceeding three years.

● Clause 20 (b) empowers the Minister to extend the term of office of the Board to a further period whilst the Minister finalizes the appointment of the new Board

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AMENDMENT OF SECTION 11 OF ACT 40 OF 1998

● Clause 21 of the amendment Bill empowers the Minister to appoint the CEO on the recommendation of the Board.

● The amendment Bill empowers the Minister to appoint the CEO for a period of five years and can also be re-appointed. It was not stated whether the CEO can be re-appointed or not.

● Clause 21 (b) delete section 11(2) of the principal

Act.

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RTMC ACT NO. 20 OF 1999

Amendment of section 8 of Act No. 20 of 1999

● Clause 22 of the Bill amend section 8(10) by streamlining the appointment process of the members of the Board.

● The publication in the Gazette is done away with. ● Submission of the shortlist to the Parliamentary

Committee for scrutiny is done away with.

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NATIONAL RAILWAY SAFETY REGULATOR ACT No. 16 OF 2002

● Section 8 is amended by clause 23 of the amendment Bill by substituting subsection 5 (b) for new paragraph (b)

● The new subsection 5 (b) deals with the composition of the Board.

● Representation by an official of the Department is also included.

● Clause 23 amend section 8, subsection 7 by streamlining the appointment procedure of the Board members.

● The new amendment only provide for nomination through the Media and leaves out the process of publishing through Gazette and

● The Minister may extend the term of office of any Member of the Board for such further period as it may take to finalise the appointment of a new Board.

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CONSULTATION

The following institutions were consulted and their comments were incorporated where necessary in the Bill:

– Cross-Border Road Transport Agency – South African Maritime Safety Authority– South African Civil Aviation Authority– Transport Appeal Tribunal– Road Traffic Management Corporation– South African National Roads Agency limited – National Railway Regulator.– Department of justice and constitutional development– The Office of the State Law advisers.

Members of the public were consulted by publication of the Bill in the Government Gazette No.27566 of 2005 and again in the General Notice No. 924 of 2007.

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CONCLUSION

We therefore request the NCOP to approve the Transport Agencies General Laws Amendment Bill,B27B- 2007

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THANK YOU

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