The Congress of South African Trade Unions (COSATU) presented its submission in support of the Gas Bill to Parliament’s Portfolio Committee on Electricity and Energy.  The Bill provides a rationale and welcome legislative framework to unlock a critical energy and jobs rich industry.

The Federation engaged extensively on the Bill with government and business at Nedlac and is confident that it strikes the correct balance between opening a key energy sector and putting in place the necessary health, environmental, labour and community responsibility obligations upon industry.

Most of the Bill’s provisions are standard to ensure clarity of responsibilities and roles for the state and industry.  Key obligations placed upon government and industry include ensuring gas license holders fulfill their legal requirements at all times and that the Department for Electricity and Energy as well as the Regulator are empowered to enforce compliance as needed.

COSATU welcomes the Bill’s tightening license holders’ responsibilities to comply with their environmental risk management duties.  Given the dangers posed to workers, communities, marine life and the environment, these are sacrosanct and must be adhered to by industry at all times.

The elevating of the industrial master plan into the Bill sends an important signal by the African National Congress led government on the importance of the master plans and working closely with business and labour to ensure that sector targets, in particular job creation, are achieved and relevant parties are held accountable for their roles and commitments.

Whilst COSATU supports the Bill’s synchronisation with the Broad-Based Black Economic Empowerment Act and its objectives, it is critical that the B-BBEE pathways of Worker Ownership and Equity Equivalent Investment Programmes be elevated to ensure that ordinary workers of all races, communities and emerging SMMEs, reap the full benefits of such empowerment initiatives.

COSATU urges Parliament to expedite this important Bill as it will play a critical role in unlocking investments in the gas sector.  This is essential to ensuring energy security and to create an estimated 120 000 – 240 000 direct and indirect jobs, especially along the Northern, Western, Southern and Eastern Cape coastlines.  With massive gas finds located in the Orange River Basin and potentially other parts of South Africa’s territorial waters, it is urgent that Parliament move with speed to pass this Bill.  With a depressing 43.8% unemployment and 1.1% economic growth rates, we simply cannot afford to further delay taping into this potential game changing resource.

For this Bill to achieve its progressive objectives, government and Parliament must ensure that the Department is adequately resourced and held accountable for meeting its targets.  It is critical that Treasury and Parliament ensure this happens in the Medium-Term Budget Policy Statement and the Medium-Term Expenditure Framework.

Issued by COSATU

Matthew Parks (COSATU Parliamentary Coordinator)

Mobile: 082 785 0687

Email: matthew@cosatu.org.za