Media statement - DA proposes establishment of an SME Ombudsman to save jobs

Date: 11 May 2018

Release: Immediate

Today, DA Leader, Mmusi Maimane MP, DA Shadow Minister of Small Business Development, Toby Chance MP and the DA Gauteng Shadow MEC for Provincial Treasury and e-Government, Adrianna Randall MPL, presented a Private Members Bill(PMB), to be presented in Parliament, that will see the establishment of a Small and Medium Enterprises (SMEs) Ombud service to mediate disputes and resolve late payment issues between SMEs and government in order to save jobs.

Media advisory: DA to present plan to prevent job losses in the SME sector

Date: 09 May 2018 Release: Immediate   On Friday, 11 May 2018, DA Leader, Mmusi Maimane MP, will be joined by the DA Shadow Minister of Small Business Development, Toby Chance MP and the DA Gauteng Shadow MEC for Provincial Treasury and e-Government, Adrianna Randall MPL, to present our plan that will help solve the problem of late payments to Small and Medium Enterprises (SMEs) by government departments and the private sector. While SMEs generate half of South Africa’s gross domestic product (GDP) and nearly 60% of employment, the sector’s viability is threatened by the problem of late payments. Payments made after 30 days affect the cash flow of SMEs undermining their ability to survive as going concerns. This often leads to job losses and closure of some SMEs, further worsening the rate of entrepreneurial activity in South Africa. In a country with almost 10 million jobless people we should be focusing on SMME’s as the drivers of creating jobs. Despite this national government is notorious for late and non-payments to SMME’s who do business with the state. Government departments have as much as R7 billion in outstanding invoices to date. The event will take place as follows: Date: Friday, 11 May 2018 Time: 10:00 Location: Denel Vehicle Syatems, 12 Barnsley Street, Benoni https://www.google.co.za/maps/place/12+Barnsley+St,+Benoni,+1501/@-26.2090026,28.2987783,17z/data=!3m1!4b1!4m5!3m4!1s0x1e953d5fdf08bfa1:0x18b83184f54b664!8m2!3d-26.2090026!4d28.300967   Media Enquiries       Democratic Alliance   Portia Adams Spokesperson to the DA Leader 082 319 6666   Lulama Mankabane Communications Officer 078 955 6834   Enocent Nemuramba National Press Officer 071 095 1806

Letter in Business Day - more businesses of all sizes

Today's Business Day published my letter, written in response to a leading article in the 30th April edition of the newspaper.

Business Day is generally upbeat about the state of the nation four and a half months after Cyril Ramaphosa was elected President of the ANC. But what caught my eye was its comment that South Africa needs more businesses. Small and medium enterprises contribute roughly 60% of the GDP of successful economies. In South Africa it is only around 40%, meaning 60% comes from large enterprises. The only way around this is for us to start more businesses that survive and grow.

If we are to reduce unemployment there is no other way of achieving it than having more businesses employing more people. How do we do this? My letter provides some essential first steps.

Statement in Parliament on the continuing impasse between Sefa and the Gauteng Industrial Parks

                   NATIONAL ASSEMBLY                  MEMBER STATEMENT       ____________________________________

Internal Ref Number:	028	-	2018
Date:	24.04.2018
Member:                              Mr Toby Chance
Statement:   GAPIPA / OWIPA

Honourable Speaker

The tenants of the Gauteng Industrial parks, representing several hundred small businesses, are getting a raw deal from their landlord, the Small Enterprise Finance Agency.

More than thirty years after they were established, tenants’ rights are being denied, by an ANC government which has demonstrated a callous and discriminatory attitude towards these businesses.

The tenants presented their plight to the Small Business Development Portfolio Committee in Parliament in 2015. Since then, negotiations with SEFA over the transfer of ownership of the parks have reached a stalemate.

They last met in February 2017 and in May 2017 SEFA unilaterally stopped payments to a supplier of cleaning services to the parks, resulting in their conditions deteriorating to the point of becoming a health hazard.

Minister Zulu, in a written response to questions I posed to her in August last year, dodged the crucial questions of what her department and SEFA are doing to provide technical and business support to the tenants to facilitate the transfer of ownership.

Continued delays in resolving the Gauteng industrial parks impasse places the sustainability of the businesses in danger. This is yet another example of the ANC government’s promises on job creation by small business being hollow and meaningless.

END

Minister Zulu was in the House when I read this statement yesterday and put up her hand to be included in the 6 ministers the House Chair selected to respond to member statements but sadly she was number 7 on the list so no answer was forthcoming. This does not leave her off the hook, though, and I will pursue this matter through other channels.

Small businesses continue to get bad service from government departments - a case study

This week I received an impassioned email from the owner of a small business who had applied for funding from Sefa but got nothing but the proverbial run around. Our correspondence and his submission to the Portfolio Committee on Small Business Development, copied below, describe his frustrations at the failure of the Department, its agencies and other government departments to do their job.

I have kept the identity of the individual he is complaining about at Sefa confidential as it would not be fair on her to reveal her name until Sefa has investigated the complaint.

Media statement: DA calls on Public Protector to investigate Minister Lindiwe Zulu's luxury cars purchase

Date: 22 March 2018

Release: Immediate

The DA will lodge a complaint with the Public Protector to investigate the Minister of Small Business Development, Lindiwe Zulu, for wilfully misleading Parliament on the purchase of cars by the Department for herself and her then deputy Nomathemba November. In an oral reply to a question I posed to her on the 29th of November 2017, Minister Zulu seemingly omitted that the Department was in the process of buying new cars for her and her Deputy.

Motion in Parliament on the launch of Project Naledi

Today I moved this motion in the House:

NATIONAL ASSEMBLY

   MOTION WITHOUT NOTICE

Internal Ref Number:	017	-	2018
Date:	13.03.2018
Subject:	Project Naledi
I hereby move, on behalf of the Democratic Alliance, that this House; 1.      Notes that On Saturday 17th February, Project Naledi was successfully launched at the Soweto Equestrian Centre in Moroka, Soweto; 2.      Further notes that Project Naledi is a partnership between international law firm Pinsent Masons, the Soweto Equestrian Centre, Soweto Cricket Club and Sir Ramabitsa Education Programme and 3.      Takes cognisance of the fact that the project has already enrolled over 200 youngsters onto the programme, who are receiving extra lessons in maths, accounting, English and science to better equip them for the world of work; 4.      Congratulates the local community members who initiated this programme, based on a firm commitment to improve the life chances of their young people; 5.      Acknowledges the important role Pinsent Masons is playing by providing funds, resources and networking opportunities; 6.      Further acknowledges that this epitomises the sort of partnership President Ramaphosa called for in his state of the nation address; and 7.      Encourages the establishment of other similar partnerships in communities throughout South Africa, to build trust, collaboration and work towards the betterment of the lives of millions of South Africans who deserve better than they have experienced under 24 years of ANC government.   Toby Chance MP