Committee denies investment bill ‘rammed through’

Parliament’s portfolio committee on trade and industry has rejected claims by opposition members that the Protection of Investment Bill was “rammed through” by the committee.

Committee chairperson Ms Joanmariae Fubbs said: “The Committee dealt extensively and thoroughly with the legislation‚ as is the practice in the Committee with all legislation. The Committee took great care in ensuring that the Bill promotes local as well as foreign investments.”

The committee on Thursday recommended the adoption of the bill to the National Assembly.

Fubbs said the committee had been preparing members for the bill since July when it held two workshops‚ one in July and another in August. On August 5 the committee also called for written submissions. The public was given at least three weeks‚ which was extended by a week and more than 20 written submissions on the bill were received.

UNCTAD gave a presentation on the new generation of investment policies. Extensive public hearings were held in September 2015 after which the Committee engaged in exhaustive deliberations during September and October before the final Committee Report on November 4‚ Fubbs said.

The purpose of the bill was‚ among others‚ to protect investment in accordance with and subject to the Constitution in a manner that sought to balance all the rights and obligations of investors. South Africa provided strong protection to investors in terms of the framework provided by the Constitution and other relevant legislation‚ Fubbs said.

She added that it was‚ however‚ important to develop national legislation that clarified the standard of protection that an investor may expect in the Republic‚ and to promote all types of investments by creating a predictable business environment that was readily understandable to an investor.

“The amended Bill provides all the protection foreign investors might require‚ including protection of property and the right to ‘repatriate their funds’.” Fubbs said.

She added that “the modern global investment paradigm is shifting towards sustainable development and inclusive growth”.

Recently the European Union‚ among other developed countries‚ recognised this. Indeed South Africa was not unique in its decision to modernise its investment legislation. The country continued to welcome foreign investment‚ especially productive investment.

The SADC had already decided to amend the Finance and Investment Protocol in a manner that would be consistent with the bill‚ Fubbs added.

The committee had agreed that it was not necessary to refer to other legislation for physical property security as Section 25 of the Constitution upheld this and draft legislation like the Expropriation Bill could address this issue.

The bill provided for security of investment‚ meaning that the Republic must accord foreign investors and their investments a level of security as may be generally provided to domestic investors‚ subject to available resources and capacity. Investors would have the right to property in terms of the Constitution and a foreign investor may‚ in respect of an investment‚ repatriate funds subject to taxation and other applicable legislation.

Fubbs said members had deliberated extensively on issues arising from disputes and finally it was agreed that when the Department was “party to a dispute‚ the parties may jointly request the Judge President ….the High Court to appoint a mediator”.

After two months of intense and thorough deliberations‚ the amended Bill was supported by a majority of the members in the Committee‚ Fubbs said.

The bill would now be sent to the National Assembly for debate and adoption‚ she added.

RDM News Wire.