Sol’s red tape under scrutiny
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in the Sol Plaatjie Local Municipality, the total number of unnecessary policies, by-laws and regulations that were rescinded during the process to reduce red tape and the total administrative savings the specified interventions would result in.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.