The draft empowerment charter for the construction sector will be sent to Public Works Minister Stella Sicgau next week with higher equity targets than other charters, according to James Ngcobo, steering committee chairperson of the charter working group.
Ngcobo did not disclose the figure, but it is likely to be at least 30% owing to the fact that when the charter drafting process was launched in October last year, Sigcau expressed that figure as an acceptable minimum. She argued that the industry had relatively lower barriers of entry and benefited immensely from preferential government contract allocation.
At the launch, a target of 30% by 2008 and 45% thereafter was proposed. No other sector has a target as high as this. The Department of Trade and Industry’s codes of good practice proposes 25,1% in 10 years, while the health care charter’s proposal for 26% “as soon as possible” has been met with fierce criticism.
Ngcobo said “only isolated, but little, differences”, which were discussed at a meeting last week, needed to be ironed out before the charter was finalised. He did not give details.
Ngcobo indicated there had been an agreement on weightings and targets and that the stalemate between the established industry and other stakeholders was being worked on.
He also said there has been an agreement in principle with organised labour about the acquisition of a stake in the sector.
“Unlike other charters, labour will benefit, but the format has not been agreed upon,” said Ngcobo.
Labour unions demanded, as the drafting processes began, at least a 10% stake in the sector.
The Department of Public Works is also currently driving the drafting of the property sector charter.