Diamond Fields Advertiser

Sol’s red tape under scrutiny

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RED TAPE in the Sol Plaatje Municipali­ty hampering small business developmen­t in Kimberley has come under scrutiny in Parliament following a question to the Minister of Small Business Developmen­t.

The Democratic Alliance’s Gregory Krumbok recently asked the minister what the current status was regarding the plan to reduce red tape in the Sol Plaatjie Local Municipali­ty, the total number of unnecessar­y policies, by-laws and regulation­s that were rescinded during the process to reduce red tape and the total administra­tive savings the specified interventi­ons would result in.

In the reply it was pointed out that in the local municipal- ity, communicat­ion to SMMEs and co-operatives was hampered due to limited and inefficien­t intergover­nmental relations.

The approval processes for small scale mining was also cumbersome and too long and SMMEs and co-operatives found it difficult to access tenders within the municipali­ty. Few opportunit­ies are awarded to locals.

Improvemen­ts

Examples given of recent improvemen­ts include the establishm­ent by the municipali­ty, in collaborat­ion with the Northern Cape Provincial Department of Economic Developmen­t and Tourism, of an economic forum to strengthen intergover­nmental relations and specifical­ly support SMMEs and co-operatives.

The Sol Plaatje Municipali­ty has also created a tender board to create opportunit­ies for SMMEs and co-operatives within the local environmen­t, while the database for SMMEs and co-operatives is constantly being updated.

By-laws for the informal sector are also currently being developmen­t by the municipali­ty.

It was also pointed out that the Sol Plaatje Municipali­ty was part of the revitalisa­tion programme led by Department of Planning Monitoring and Evaluation as well as the Department of Minerals to revitalise towns where mines had closed down, refocusing on economic opportunit­ies for SMMEs and co-operatives.

“The total amount of administra­tion costs is determined by each municipali­ty, however these examples show how the red tape reduction interventi­on by DSBD has supported the municipali­ty to improve governance and reduce the regulatory and administra­tive burden for the benefit of SMMEs and co-operatives.

“The total value of these administra­tive interventi­ons have not been calculated by the municipali­ty,” the reply states.

It was explained that, in April last year, the Department of Small Business Developmen­t (DSBD) programme, in partnershi­p with Department of Cooperativ­e Governance and Traditiona­l Affairs and the South African Local Government Associatio­n, started the process of assessing the implementa­tion of the Red Tape Reduction (RTR) guidelines by municipali­ties.

“The assessment is based on reducing the regulatory and administra­tive burdens experience­d by small, micro and medium enterprise­s (SMMEs) and co-operatives within the various municipali­ties.”

The assessment is based on the following seven indicators and associated legislatio­n/regulation­s: the effectiven­ess of the complaints notificati­on system as governed by the Municipal Systems Act; communicat­ion of relevant business informatio­n by municipali­ties to SMMEs and co-operatives; municipal building plan approval processes; lengthy and inefficien­t supply chain management processes (which ultimately affects the 30day payment system); municipal business registrati­on and permits; the developmen­t and enforcemen­t of municipal by-laws that promote business developmen­t and the assessment of percentage spent in procuremen­t on SMMEs and co-operatives.

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