Initial briefing on the National Regulator for Compulsory Specifications (NRCS) Bill and the Standards Bill

1
Initial briefing on the National Regulator for
Compulsory Specifications(NRCS) Bill and the
Standards Bill

• to the Select Committee on Economic and Foreign
  Affairs
• 18 March 2008

2
the dti - Enterprise and Industry Development
Division and SABS team

• Dr Tshenge Demana (Chief Director)
• Ms Elsabé Steyn (Director)
• Ms Anna-Marie Lötter (Deputy Director)
• Mr Moses Moeletsi (SABS Regulatory Division
  Executive)
• Dr Geoff Visser (SABS Standards Division
  Executive)

3
Process How did we get here?

• FRIDGE Study on Standards, Quality Assurance,
  Accreditation and Metrology (technical
  infrastructure) completed April 2001.
• Cabinet approved project for restructuring of
  Technical Infrastructure system on 22 May 2002.
• the dti Policy on Modernising the South African
  Technical Infrastructure approved and finalised
  in 2004.
• These two Bills are last elements of policy
  implementation.
• The two bills were approved by Cabinet on 22
  August 2007.
• Bills have now been amended taking on board
  concerns raised by Cabinet as well as by the
  Portfolio Committee on Trade and Industry.

4
Technical Infrastructure

• Technical infrastructure system set standards,
  test against standards and accredit testers and
  others to ensure competence to perform technical
  measurements.
• It provides an objective basis for
  competitiveness as quality, standards and
  performance are inherent to meeting supplier and
  customer needs.
• It is critical to industrial upgrading in the
  sense that-
• quality requirements and customer safety needs
  can be met low quality import control prevent
  undercutting of industrial productive base.
• It supports the work of Regulators responsible
  for the protection of the health and safety of
  the public and the environment.

5
The rationale for change

• Globalisation increasing demand on trading
  economies to continue to guarantee that their
  products are safe and fit for purpose.
• Industrial policy upgrading needs of our
  economy and opportunities to integrate into
  global supply chains require an effective
  technical infrastructure system.
• Effectiveness and efficiencies elements of the
  system require adjustments to better focus on
  current economic needs, needs to protect the
  public and the environment and to better focus
  public entities on clear mandates as will be more
  obvious as the presentation unfolds.

6
SOUTH AFRICAS TECHNICAL INFRASTRUCTURE
SABS- STANDARDS Specific technical requirement of
a product or a system
NMISA- MEASUREMENT Underpins testing
calibration through national measurement
standards
SANAS- ACCREDITATION Assures competence
7
The need for two separate organisations

• the dti identified the need to reconsider the
  mandate of the South African Bureau of Standards
  (SABS) some years back.
• In terms of current mandate SABS is responsible
  for three activities the promotion, development
  and maintenance of national standards, the
  provision of conformity assessment services and
  the administration of compulsory specifications
  (technical regulations) that originate largely
  from the dtis regulation of products and
  processes.  
• The combination of responsibilities to perform
  conformity assessment procedures such as
  laboratory testing, certification and inspection
  in order to assess whether products or services
  comply with technical requirements while at the
  same time regulating the same product creates a
  conflict of interest.
• The confusion between the SABSs function of
  writing standards and the SABSs role in
  implementing compulsory specifications.

8
The need for two separate organisations -
continued

• In benchmarking the South African regulatory
  systems with others in the world, it became clear
  that the current practice of having a standards
  body as a regulatory body is not optimal or
  advantageous.
• It impacts on the efficiency and effectiveness of
  the regulator and the quality of technical
  regulations that the regulator administers and
  divides the attention of the Standards Body who
  should develop and maintain standards and provide
  commercially viable conformity assessment
  services.
• The benchmarking however confirms the importance
  of alignment of the three key legs of the SA
  technical infrastructure. The benchmarking
  included developed and developing countries. The
  developing countries were Brazil and Malaysia.

9
Respective purpose of the two Bills

• The National Regulator for Compulsory
  Specifications Bill will establish the National
  Regulator for Compulsory Specifications which
  will be responsible for the administration of
  compulsory specifications .
• These compulsory specifications, also called
  technical regulations, cover the automotive,
  electro-technical, mechanical, health related,
  building and construction materials, food and
  associated as well as the environmental
  protection sectors.
• An example of a proposed compulsory specification
  that is currently being developed and is relevant
  to all of us is the regulation for energy
  efficient light bulbs . The aim of this
  regulation is to ensure that the energy efficient
  light bulbs available to consumers will be safe,
  and meet performance criteria in terms of minimum
  output as well as lifespan.
• This Bill would transfer the administrative
  elements that are relevant to compulsory
  specifications from the current Standards Act to
  the new National Regulator for Compulsory
  Specifications Bill.

10
Respective purpose of the two Bills continued

• The new Standards Bill provides for the
  continuation of South African Bureau of Standards
  as a public entity.
• The mandate will cover the development of
  voluntary standards and maintenance and the
  provision of conformity assessment services.
• There are currently 5900 South African National
  Standards (SANS), including in the following
  sectors
• - Chemical and mining standards including
  dangerous goods, industrial and general
  chemistry, paints, petroleum, coal, rubber and
  plastics, and mining standards,
• - Electrotechnical ICT standards for
  example, the wiring code, appliances, information
  communication technology, physics and electricity
  distribution,
• - Food and health standards including the many
  standards relating to food, water,
  pharmaceuticals, pesticides, medical and
  health-related topics,
• - Materials standards covering clothing,
  textiles, leather and footwear, timber and paper,
  
• - Transportation standards including vehicles,
  buses, lifting equipment and other aspects of
  transportation.

11
Mandate of the NRCS

• The broad mandate of the NRCS - to promote
  public safety and consumer protection issues
  through the enforcement of compulsory minimum
  standards for the safety and performance of
  products and services.

12
Objects of the NRCS

• The objects of the National Regulator for
  Compulsory Specifications are to
• - develop recommendations to the Minister with
  regard to compulsory specifications
• - administer, and maintain compulsory
  specifications
• - carry out market surveillance through
  inspection in order to monitor compliance
• - enforce compliance with compulsory
  specifications.

13
Board of the NRCS

• The Board consist of not less than seven, and not
  more than nine members and is made up as follows
  
• - the chief executive officer of the National
  Regulator for Compulsory Specifications by virtue
  of his or her office
• - the rest of the members, who are non-executive
  members and are appointed by the Minister.

14
Board of the NRCS - Continued

• When appointing the members of the Board, the
  Minister must ensure that the members of the
  Board - are broadly representative of the
  demographics of the country and
• - have sufficient knowledge, experience or
  qualifications relating to the functions of the
  National Regulator for Compulsory Specifications
  and the responsibilities of the Board.
• The Minister must designate a member of the Board
  as chairperson.

15
Advisory Forum

• The Board, must establish an advisory forum with
  a balance of interests consisting of
  representatives of organisations who have an
  interest in the matters contemplated in this Act.
• The Forum must advise the Board on
• - matters in respect of which the National
  Regulator for Compulsory Specifications could
  play a role
• - any other matter on which the Board requests
  advice.
• The Board must establish a constitution and, if
  necessary, rules for the Forum.

16
Financing of the NRCS

• The NRCS will be financed through money
  appropriated
• by Parliament and fees as prescribed by the
  Minister of
• Trade and Industry after consultation with the
  Minister of Finance.
• It is estimated that 18 of the NRCS expenses
  will be financed through MTEF transfer payments
  and 82 will be financed through fees.
• The estimated turnover for the NRCS for 2008/9 is
  R144 million, for 2009/10 R157 million and for
  2010/11
• R170 million.

17
  Proposed organogram of the NRCS
                                       
 
CEO
PA
RECEPTIONIST
Operations Manager
Strategic Support Services
HR
LEGAL
FINANCE
INDUSTRY LIAISON
IT
18
The envisaged NRCS
NRCS Board
Acting CEO Mr Moses Moeletsi

• UNECE WP 29
• OIML
• Codex

Electrotechnical/Automotive/Chemical/ Mechanical/
Food/ Legal Metrology
Advisory Forum
dti Quarterly
NRCS

• SABS
• SANAS
• NMISA

Technical Infrastructure

• Industry

19
Staff of the NRCS

• All employees of SABS employed in the Regulatory
  Department and those that provide administrative
  support to the NRCS are transferred to the
  National Regulator for Compulsory Specifications
  in terms of section 197 of the Labour Relations
  Act, 1995 (Act No. 66 of 1995)

20
Mandate of the SABS

• The broad mandate of the SABS is to support trade
  and industrial development by ensuring that
  South Africas standardisation activities
  continue to support the needs of industry in a
  fast-paced global environment.
• The SABS also supports regulators responsible for
  protection of public health and safety as well as
  the environment through the provision of
  standards.

21
Objects of the SABS

• The objects of the South African Bureau of
  Standards are to
• - develop, promote and maintain South African
  National Standards
• - promote quality in connection with
  commodities, products and services and
• - render conformity assessment services and
  matters connected therewith.

22
Board of the SABS

• The Board consist of not less than seven, and not
  more than nine members and is made up as follows
  
• - the chief executive officer of the SABS by
  virtue of his or her office
• - the rest of the members, who are
  non-executive members and are appointed by the
  Minister.

23
Board of the SABS - Continued

• When appointing the members of the Board, the
  Minister must ensure that the members of the
  Board
• - are broadly representative of the population
  of the Republic and
• - have sufficient knowledge, experience or
  qualifications relating to the functions of the
  SABS and the responsibilities of the Board,
  including in particular business management,
  finance, marketing, international or foreign
  standardisation and technical infrastructure
  matters.
• The Minister must designate a member of the Board
  as chairperson.

24
Advisory Forum

• The Board, must establish an advisory forum with
  a balance of interests consisting of
  representatives of organisations who have an
  interest in the matters contemplated in this Act
  .
• The Forum must advise the Board on
• - matters in respect of which the South African
  Bureau of Standards could play a role in matters
  contemplated in this Act
• - any other matter on which the Board requests
  advice.
• The Board must establish a constitution and, if
  necessary, rules for the Forum.

25
Government Consultative Forum

• The Board must establish a Forum for consultation
  between the South African Bureau of Standards and
  relevant government departments who have an
  interest in the matters contemplated in this Act,
  including the use of South African National
  Standards in law.
• The Forum must advise the Board on
• - matters in respect of which the South African
  Bureau of Standards could play a role in
  matters contemplated in this Act
• - any other matter on which the Board requests
  advice.
• The Board must establish a constitution and, if
  necessary, rules for the Forum.

26
Financing of the SABS

• The SABS will be financed through money
  appropriated by Parliament (23) and through fees
  charged in respect of setting and issuing
  National Standards (3), training services in
  connection with standardisation (1) and
  provision of conformity assessment services
  (certification 44) and testing and inspections
  (29).
• It is estimated that 77 of the SABS expenses
  will be financed through fees and 23 through
  MTEF transfer payments. The 23 MTEF transfer
  payment is used for standards development and
  maintenance. The estimated turnover for the SABS
  for 2008/9 is R508 million, for 2009/10 R560
  million and for 2010/11 R618 million.
• the dti has made and will continue to make budget
  allocations to the SABS for the development and
  maintenance of standards.

27
       
Proposed organogram of the SABS
CEO PA to CEO
                                 
CFO
Corporate services
Human resources
Commercial
Standards
Standards development
Standards Sales and Information
28
The envisaged SABS
SABS Board
CEO Mr Martin Kuscus

• ISO
• IEC

StanSA/ SABS Commercial (Conformity Assessment)

• Advisory Forum
• Government
• Consultative
• Forum

dti Quarterly

• SANAS
• NMISA

Technical Infrastructure
SABS

• Industry

29
Staff of the SABS

• The CEO and all other employees of the SABS,
  except the employees employed in the Regulatory
  Division and those that provide related
  administrative support, remain employees of the
  reconstituted SABS.

30
THE END

• Thank You