Question no

Question 632

Mr LW Greyling (ID) to ask the Minister for Public Enterprises:
(1) Whether Eskom charges different tariffs to companies using large quantities of electricity daily than what it charges to ordinary households; if not, what is the position in this regard; if so, what is the differential between the lowest tariff charged and that charged to ordinary households;
(2) (a) how many companies or clients are charged the said lowest tariffs and (b) what amount of power is used by these companies, globularly expressed, per day? NW1318E
Reply:
(1) Eskom designs its tariffs to be cost reflective to ensure that the tariffs recover the cost of supply ing electricity to consumers whilst retaining the flexibility to provide cross subsidies between customer groups. As such, the amount of electricity consumed by a customer does not necessarily dictate the energy rate applicable. Furthermore, the main cause of cost differences amongst customers is related to the cost of providing the networks and energy and thus the customers’ economic classification is not a factor.

Customer categories are determined by the size of supply (or capacity required), voltage level, location on the network (distance from source) and load profile. Costs are then allocated to each customer category based on 12-month consumption (forecasts of Eskom’s annual costs). The cost allocation to the different customer categories is influenced by:

The densities of customers - the greater the density the lower the cost per connection.

The geographic position of a supply point - the further the point of supply is from the source of the electricity supply, the higher the electrical losses.

The voltage level of the supply – the lower the voltage of the supply, the more electrical losses there are and the more network assets are required to supply customers. Supplies at higher voltage levels therefore cost less to supply than supplies at lower voltage levels.
After the cost allocation by customer category, unit rates are calculated which are then applied to similar customer categories. The results of the cost allocation usually demonstrate that the cost to supply smaller sized and rural customers is higher than the tariff charged. The shortfall is what is referred to as the electrification and rural levy that is raised from larger, high voltage customers in urban areas. As such, larger customers generally subsidise smaller and rural customers – this is illustrated in the table below. Eskom’s tariff for low consumption residential (Homelight) customers and the rural tariffs (Landlight, Ruraflex and Nightsave Rural) currently receive large-scale subsidies i.e. the tariff rates are lower than the cost to supply.
Table 1 below: Cost versus tariff in c/kWh in 2007/8 rand values

This table indicates the cost to supply versus the effective tariff based on the 2007/8 MYPD forecasts for the full Eskom financial year. Negative values in the “% Difference” column indicate where a subsidy is provided, whilst positive values indicate that these tariffs make a subsidy contribution i.e. to pay more than what it costs to supply these tariffs to customers.

Note: The values expressed in the above table are in 2007/8 rand values.

(2) (a) The response is provided on table 1 above.

(b) The following table is an approximation of average consumption per day by each of the customer groups.

QUESTION 633

DATE OF PUBLICATION: Friday, 9 May 2008

INTERNAL QUESTION PAPER NO 12 of 2008

Mr L W Greyling (ID) to ask the Minister of Home Affairs:
Whether the spouses of foreign persons with critical skills recruited to come to work in the Republic of South Africa are themselves allowed to seek work in South Africa; if not, what is the position in this regard; if so, under what conditions?
NW1319E

REPLY
Currently, the spouse of a recruited foreign person with critical skills does not automatically qualify for a work permit, but is allowed to seek work in the Republic of South Africa. However, as is the case with all other foreign nationals, an application for a work permit must be submitted at the nearest Regional office of the Department in the Republic of South africa (RSA) (or South African Embassy, or High Commission in their country of origin).
Having recognised that this has a potential to negatively affect the recruitment of much needed scarce skills, we intend to consider a review of this legal position as part of the immigration policy review process.

QUESTION 634

DATE OF PUBLICATION OF INTERNAL QUESTION PAPER: 9/05/2008

(INTERNAL QUESTION PAPER 12-2008)
Mr M H Hoosen (ID) to ask the Minister of Education:
Whether the levels of literacy and numeracy attained by learners upon completion of their primary school education (grade 7) is satisfactory; if not, (a) why not and (b) what steps has her department taken to improve this situation?

NW1320E
REPLY:

National systemic evaluations, conducted by the Department in 2001 and 2004, revealed low levels of reading abilities across the country. The results of the Progress in International Reading and Literacy Study (PIRLS), released in November 2007, found that learners in our schools do not read at the appropriate level in relation to their grades and in terms of their age.

Various reasons were provided for this:

Lack of access to books in homes, at school and in community

Low levels of literacy among the parents

Ineffective teaching practices
I have responded to these findings through the following initiatives:
On the 18 March 2008 I launched the Foundation for Learning Campaign, a four-year programme to improve the reading, writing and numeracy skills and abilities of all South African children. The Campaign has provided teachers and schools with clear directives on expected levels of learner performance. The focus will be on primary schooling – starting with the Foundation and Intermediate Phases – so that learners acquire and sustain a solid foundation for learning. All primary schools will be expected to increase average learner performance in Literacy / Language and Numeracy / Mathematics to no less than 50% - indicating an improvement of between 15% - 20% - in the 4 years of the campaign.
The Department has also focused on providing resources to all schools. In the past three years we have provided over 11,000 primary schools with exciting story books, written in all official languages of South Africa towards establishing classroom libraries. Through the USAID-funded Ithuba Writing Project, we are distributing 2.3 million locally authored books in the different official languages to schools. All 2.3 million books should be in our schools by the end of the financial year.
Two years ago, I initiated a Drop All and Read Campaign, which welcomed Grade R and 1 learners into education with their own branded bags containing a selection of books that they can read for themselves or that parents and caregivers can read to them. At the heart of the campaign is that in our homes and in our schools children should be able to pick up books that they can read for enjoyment.
We continue to supply schools with reference materials, which have included bilingual dictionaries. We have also provided all schools with:
the National Reading Strategy document which outlines activities and approaches to promote and develop the reading skills of our learners; and

a Teacher’s Handbook entitled Teaching Reading in the Early Grades to assist teachers on methods, approaches and activities to improve their teaching of reading.

A Toolkit for Teachers was developed containing both reading resources as well as guides for teachers; 1;000 of these have been sent to pilot schools countrywide to increase support for the teachers in their teaching of reading.
The Department has developed an Early-Grade Reading Assessment instrument, which is currently being used by teachers in selected districts to help us monitor progress in the different schools. The instrument is currently in use for Sepedi, Xitsonga,Tshivenda, IsiXhosa and English and during the course of this year the tool will be developed in the remaining five languages.
The implementation of the National Policy Framework for Teacher Education and Development will also address the issue of teacher development and ensure that through the IPET and CPTD programmes teachers are trained to teach effectively.
To monitor whether learners are improving competency, the Department is establishing baseline data on learners’ achievement in literacy and numeracy in the early grades. As part of the Foundations for Learning, primary school learners will be assessed annually using standardized tests to monitor their progress against the established baseline.

QUESTION 635
Mr M H Hoosen (ID) to ask the Minister for Public Enterprises:
(1) How many claims for damage to, (b) pilfering from and (c) missing baggage were lodged with the SAAirways in each month in 2007 and in each of the first three months in 2008;
(2) (a) what is the globular amount claimed for (i) the 12 months in 2007 and (ii) the first three months in 2008 arising out of such losses, (b) what amounts have been paid out with regard to such claims and (c) what amounts claimed have not yet been settled? NW1321E
Reply:
(1) ACSA licenses ground handling agents at its airports to amongst other things, handle baggage. ACSA currently have two licensed ground handling agents, Menzies and Bidvest who commenced services in April 2008. Additionally ACSA has allowed Swissport to undertake ground handling services solely for SAA as an interim measure until a third ground handling license is awarded by ACSA that is expected to be announced in August 2008.
In the process of collection to final delivery, baggage comes under the control of various parties. On an outbound flight, SAA collects baggage at the check-in counter and loads it onto the belt at which point ACSA assumes responsibility for the baggage. Ground handlers collect baggage off the belt at the far end after baggage has moved through the various ACSA airport systems whereupon the ground handlers take over responsibility from ACSA to enable them to load the baggage onto the aircraft.
(a-c) As indicated above therefore, baggage handling does not fall within the core responsibilities of South African Airways. Nevertheless SAA works closely with Airport Company South Africa to reduce baggage damage and pilferage, which is currently just over one percent of all baggage handled.
(2)(a-c) SAA is still verifying claims and the process is in various stages.

QUESTION NO.: 636
Mrs P de Lille (ID) to ask the Minister of Housing as follows:
(1) How many employees in her department are currently (i) under investigation for fraud related to housing subsidies and ancillary matters and (ii) being prosecuted for fraud (iii) have owned up to fraud and have been spared prosecution provided that money that has misappropriated, is paid back, (b) what steps have been taken to eliminate fraud con cerning housing subsidies and (c) with what success?


Reply:
None
I can imagine the glee with which the Honourable Member asked the question. Here are the facts:
No employees in my department are under investigation because no corruption or fraud has taken place IN the department, but unearthed when an audit was done and civil servants across government had made false submissions and thereby procured housing subsidies. NOT ONE of these civil servants was from the Department of Housing. NOT ONE.
In my Budget Vote on 28 May 2008, I reported back to Parliament on a matter referred to the department by the Auditor-General from his review of the period 1999 to 2004, where government employees from various levels of government, had fraudulently claimed subsidy housing. The Department of Housing monitors the subsidy scheme in the same way as National Treasury monitors the Persal salary payment system.

The National Department of Housing does not administer subsidies, it only monitors the system.
(b) This is what I delivered in my Budget Vote address on 28 May 2008:
“The SIU embarked on a massive forensic data analytical investigation and identified 31259 potentially irregular housing subsidy transactions awarded to government employees nationally. The SIU has begun the process of prosecuting and finalising criminal cases against the corrupt officials in different Provinces around the country. 29 cases have already been finalised with sentences including the payment of the value of the houses. The total amount of debt we expect to recover is R6 827,036.30. A cash amount of R1 103,772.00 has been paid back. The SIU will make recommendations to the Department in order to curb future systematic or opportunistic abuse of the Housing Subsidy System.
“It is envisaged that two hundred (200) cases will be placed on the court roll in the new financial year. The prosecution of fraudulent beneficiaries will have a significant impact in terms of deterrence and promoting a culture of legal obedience.”