It could take as long as two years to implement the 2019 National Credit Amendment Act, according to Department of Trade & Industry officials. Briefing members of the National Assembly’s Trade & Industry Committee on Tuesday, they emphasised the importance of avoiding any ‘unintended consequences’ identified during a socio-economic impact assessment concluded in May. One could be that credit providers ‘implicitly’ draw a distinction between higher- and lower-risk low-income earners applying for credit – creating a ‘dual credit system’ and pushing the very people the Act seeks to assist away from legitimate credit providers into unregulated, informal markets.
Signed into law last month, once operational the Act will make long-term debt intervention accessible to consumers with a monthly income of R7 500 or less and unsecured debt not exceeding R50 000. However, regulations will need to be developed, released in draft form for public comment and finetuned before the Act can be implemented. In addition, the National Credit Regulator and National Consumer Tribunal will need additional resources to deal with what will inevitably be an increased demand for their services. That said, Trade & Industry Minister Ebrahim Patel made it very clear that the expectations of low-income consumers will need to be carefully managed. The Act will not ‘write-off’ their debt.
LAND EXPROPRIATION WITHOUT COMPENSATION:
The process of developing a Bill to amend section 25 of the Constitution – specifying the circumstances in which land may be expropriated without compensation – could take longer than expected. During Wednesday’s meeting of the ad hoc committee established by Parliament to draft the Bill, it was agreed that, while every effort should be made to meet the 31 March 2020 deadline for tabling it in the National Assembly, constituency work and demands on the time of members chairing other committees may well cause delays.
In keeping with the constitutionally enshrined principle of public partifcipation in the process of drafting new legislation – not to mention the Rules of Parliament – a draft Bill will be released for comment and public hearings held in the National Assembly, NCOP and provincial legislatures.
Before beginning the drafting process, the committee intends holding a workshop at which it will be briefed by experts and key stakeholders on the thinking behind recommendations in a broader report produced by former President Kgalema Motlanthe’s high-level panel, as well as a more recent report compiled by the presidential advisory panel on land reform and agriculture. However, while these recommendations will inform the process of developing the Bill, they are not binding.
Committee members (courtesy of the Parliamentary Monitoring Group): Click on each name for additional information.