Government Gazette REPUBLIC OF SOUTH AFRICA Vol. 461 Cape Town 26 November 2003 No. 25763 THE PRESIDENCY No. 1732 26 November 2003 It is hereby notified that the President has assented to the following Act, which is hereby published for general information:– No. 26 of 2003: National Small Business Amendment Act, 2003. AIDS HELPLINE: 0800-123-22 Prevention is the cure 2 No. 25163 GOVERNMENT G A E T E , 26 NOVEMBER 2003 - Act No. 26,2003 NATIONAL SMALL BUSINESSAMENDMENT ACT. 2003 GENERAL EXPLANATORY NOTE: ] Words in bold type in square brackets indicate omissions from existing enactments. Words underlined with a line solid indicate insertions in existing enactments. (English text signed by the President.) (Assented to21 November 2003.) ACT To amend the National Small Business Act, 1996, so as to repeal all provisions pertaining to the National Small Business Council; to empower the Minister to facilitateandestablishanAdvisoryBodytorepresenttheinterests of small business; to make the Public Finance Management Act, 1999, applicable to the Agency; to make further provision in respect the functionsof the Agency; to do of away with the requirement calling for nominations for directors the Board by of of notice in the Gazette; to repeal the provisions pertaining to alternate directors; and to substitute the Schedule to that Act, in order to reflect the current economic position; and to provide for matters connected therewith. B E IT ENACTED fo11ows:- by Parliament the of the Republic of South Africa, as Amendment of section 1 of Act 102 of 1996 1. Section 1 of the National Small Business Act, 1996 (hereinafter referred to as the principal Act), is hereby amended by the deletion of the definitions of “constitution of the Council”, “Council”, “National Co-ordinator” and “provincial council”. Substitution of Chapter 2 of Act 102 of 1996 5 2. The following Chapter is hereby substituted for Chapter 2 of the principal Act: “CHAPTER 2 Minister S power facilitate to and establish Advisoly Body 10 Minister’s power to facilitate and establish Advisory Body 2. The Minister within must, reasonable facilitate a time, a process aimed at the establishment of an Advisory Body to represent and promote the interests of small business as contemplated in the National Strategy for the Development and Promotion of Small Business in South Africa referred to in the definition of “National Small Business Support Strategy” in section 1. 15 Act No. 26,2003 NATIONAL SMALL BUSINESS M M h T .4C:T,2003 m Ep 3. (1) The Minister must through an open and transparent process of consultation determine a constitution for the Advisory Body referred to in section 2. (2) The constitution of the Advisory Body must(a) in general provide for(i) the composition of the Advisory Body; (ii) the quorum and meetings of the Advisory Body; (iii) the procedure for the functioning of the Advisory Body; (iv) interaction with Parliament, the Department of Trade and Industry and statutory bodies; and (v) any other matter that may be necessary to facilitate the proceedings, activities or business of the Advisory Body; and ( b ) specifically require the Advisory Body to advise the Minister on(i) strategies to address identified marketfailures affecting the sector; (ii) the impact of current and new legislation on small business; (iii) national standards pertaining to smallbusinessdevelopment and regulation; (iv) measures to ensure the creation of physical business infrastructure through viable business sites; (v) the development of skills in all aspects of running a business; (vi) steps to be taken to create access for small business into value chains; (vii) constraints affecting the viability of the small business community; (viii) methods to liaise with the small business community to identify their needs; (ix) methods to monitor and influence the provision of support services to the small business sector; and (x) anyother matter that the Minister may deemappropriate.”. Amendment of section 9 of Act 102 of 1996 5 10 15 20 25 30 3. Section 9 of the principal Act is hereby amended by the addition of the following subsection, the existing section becoming subsection (1): “ ( 2 )The Public Finance Management Act, 1999 (Act No. 1 of 1999), applies to 35 the Agency.”. Amendment of section 10 of Act 102 of 1996 4. Section 10 of the principal Act is hereby amended(a) by thesubstitution in subsection (1) forparagraph (a) of the following paragraph: 40 “ ( a ) to expand,co-ordinate and monitor the provision of training, advice - counselling [and any other non-financial services]to small and business in accordance with the National Small Business Support Strategy;”; (b) by the substitution in subsection (1) (c)for the words preceding subparagraph 45 (i) of the following words: “to consult with any organ of government, the [Council] Advisory Body or a service provider in order to-”; (c) by thesubstitution in subsection (1) for paragraph (d) of the following paragraph: 50 “(d) to facilitate co-ordinate and research relating to support Programmes by the Agency.”; and (d) by the addition in subsection (2) to paragraph (b) of the word “and” and the deletion of paragraph ( c ) 6 No. 25763 GOVERNMENT GAZETTE. 26 NOVEMBER 2003 - -- Act No. 26,2003 NATIONAL SMALL BUSINESS .AMENDMENT ACT. 2003 Amendment of section 11 of Act 102 of 1996 5. Section 11 of the principal Act is hereby amended(a) by thesubstitutioninsubsection (3) forparagraph ( a ) of thefollowing paragraph: “ ( a ) The Minister must, notice by in [the Gazette and in] two 5 newspapers which havegeneralcirculationthroughoutthenational territory of the Republic, invite nominations for directors to the Board referred to in subsection (l)(a) and (b).”; (b) by the deletion of subsection (4): and (c) by substitution the in subsection (6)for paragraph (a) of thefollowing 10 paragraph: “(a)The Minister, with the concurrence of the Minister of Finance, determines the remuneration and allowances of directors [, alternate directors and co-opted directors of the Board] who are not in the servicefull-time of the State.”. 15 Amendment of section 19 of Act 102 of 1996 6. Section 19 of the principal Act is hereby amended(a) bythesubstitutioninsubsection (1) for paragraph ( a ) of thefollowing paragraph: “ ( a )As soon as practicable after the end of every financial year the 20 [Council] Advisory Bodyand the Agency must each compile a report on their respective activities during that year.”; ( b ) by the substitution for subsection (2) of the following subsection: “(2) The [Council] Advisory Body and the Agency must furnish the Ministerwith any suchotherreportsastheMinistermayrequest.”: 25 (c) bythesubstitution in subsection (3jfor paragraph ( a ) of thefollowing subsection: “ ( a ) particulars of the work performed by the Agency and [Council] AdvisoryBodyand of progressachievedinfurtherance of the objects of the NationalSmallBusinessSupportStrategy;”;and 30 (d) by the substitution for the second subsection (3) of the following subsection: “[(3)] (J The Director-General must submit the Annual Review of 4 Small Business to the Minister before the end of [February] __. of June each year and the Minister must table it in Parliament.”. Substitution of Schedule to Act 102 of 1996 35 7. The Schedule to Act is hereby substitutedfor the Schedule to the principal Act. this Substitution of long title of Act 102 of 1996 8. The following long title hereby substituted for the long title to the principal Act: is “To provide for the establishment the [National Small Business of Council] Advisory Body and the Ntsika Enterprise Promotion Agency; [and] to 40 provide guidelines for organs state in order promote small business inthe of to Republic; and to provide for matters incidental thereto.”. Short title 9. This Act is called the National Small Business Amendment Act, 2003. 8 No. 25763 GOVERNMENT G e m , 26 NOVEMBER 200 3 r Act NO. 26,2003 NATIONAL SMALL BUSINESS AMENDMENT ACT 2003 SCHEDULE “SCHEDULE (See definition of ‘small business’ in sectio,, 1) Column 5 Total gross asset value (fixed property excluded) Column 1 Sector or subsector in accordance with the Standard Industrial Classification Agriculture Column 2 Mining and Quarrying Medium Small Very Small Micro Medium Small Very Small Micro Medium Small Very Small Micro Medium Small Very Small blicro VIedium Small v‘ery Small vlicro vledium ‘ Column 3 Total turnfull-time equivalent of paid employ- ees 100 50 10 5 200 50 20 5 200 50 20 5 200 1 R5m R3m R0.50m R0.20m R39m RlOm R4m R0.20m R51m R13m R5m R0.20mRS lm R13m R5.10m R0.20m R26m R6m R3m R0.20m R39m R5m R3m R0.50m RO. 10m R23m R6m R2m RO. 1Om R19m R5m R2m Manufacturing Electricity, Gas and Water +RO. 1Om R5m R1.90m RO. 1Om R5m Rlm R0.50m RO. 1Om R6m so 20 5 200 50 20 Construction 5 200 Retail and Motor Trade and Repair Services ;mall Jery Small vlicro vledium rrade, Comnercial Agents md Allied Services Small Very Small Micro Medium 50 20 5 200 - R0.20m R64m R0.60m RO. 10m 50 20 5 :atering, 200 4ccommodaion and other rrade R6m L R0.20mR13m R0.60m RO. 1Om Small Very Small Micro 50 20 S R5.10m R0.20m 10 No. 25763 GOVERNMENT GAZE.lTE, 26 NOVEMBER 2003 NATIONAL SMALL BUSINESS AMENDMENT ACT, 2003 Act No. 26,2003 Column 1 Sector or subsector in accordance with the Standard Industrial Classification Transport, Storage and Communications full-time equivalent of paid employ- Column 4 Total turnover Medium II Column 5 Total gross asset value (fixed property excluded) I ees 200 R26m R6m Finance and Business Services Community, Social and Personal Services * Small Very Small Micro R13m R3m R0.20m R26m R3m R0.60m - RO. 1Om R5m I 50 1 20 R13m __ R3m R3m - R0.50m R0.20m - RO. 1Om R13m R6m - Small Micro R3m Rlm - R0.60m R0.20m RO. 1Om".