| MEMORANDUM ON THE OBJECTS OF THE BROAD-BASED BLACK ECONOMIC EMPOWERMENT BILL |
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BACKGROUND |
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South Africa's economy cannot operate to its full potential because the majority of South Africans earn very low incomes and are still excluded from ownership of fixed assets and the possession of advanced skills. This is to the detriment of all South Africans and it is therefore necessary that steps are taken to increase the effective participation in the economy by the majority of South Africans.The Broad-Based Black Economic Empowerment Bill (hereinafter referred to as ''the Bill'') is one of a number of steps being taken by Government to address the problem. A Black Economic Empowerment Advisory Council (hereinafter referred to as ''the Council'') is proposed as an advisory body. Support services and funding for the Council will be provided by the Department of Trade and Industry (hereinafter referred to as ''DTI''). |
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OBJECTS OF BILL |
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The term 'broad-based' is used in the Bill's title in that the Bill seeks to- |
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broaden the entrepreneurial base; |
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extend black participation in the economy as measured in terms of ownership, |
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management and skills development; |
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develop local communities and employees; and |
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reduce income inequalities and poverty. |
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The Bill's objectives are to- |
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promote economic transformation; |
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change the racial composition of ownership and management structures of |
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existing and new enterprises; |
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increase ownership and management by communities, workers and cooperatives; |
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promote investment in enterprises owned and managed by black people; |
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empower rural and local communities. |
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FINANCIAL IMPLICATIONS FOR STATE |
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It is envisaged that Council members will not be remunerated except for disbursement costs and that the establishment and operating costs of the Council will be accommodated in the DTI budget. |
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ORGANISATIONS CONSULTED |
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The following organisations were consulted: |
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Black Business Council |
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Black Business Working Group |
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Big Business Working Group |
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NEDLAC |
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CONSTITUTIONAL IMPLICATIONS |
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None. |
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COMMUNICATION IMPLICATIONS |
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It is recommended that the GCIS (Government Communication and Information System) and DTI develop a comprehensive communication plan around Black Economic Empowerment generally and this Bill in particular. |
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PARLIAMENTARY PROCEDURE |
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The State Law Advisers and the Department of Trade and Industry are of the opinion that this Bill must be dealt with in accordance with the procedure established by section 75 of the Constitution since it contains no provision to which the procedure set out in section 74 or 76 of the Constitution applies. |
