Parliament, Sunday, 24 April 2022 – The Portfolio Committee on Human Settlements was informed by small business owners in Umtata that regulations proposed by the Housing Consumer Protection Bill might put the survival of small businesses at risk. The committee heard these views during the first of three public hearings on the Bill in the Eastern Cape.
Builders fear that the provision that required all builders to register with the National Home Builders Registration Council and the subsequent annual membership fee was unaffordable especially because they undertake small construction work which makes it difficult to break even. They called for small businesses to be exempted from registration to ensure transformation within the industry.
Despite this, there was general support for the Bill and its provisions especially the protection of consumers against unscrupulous builders who build substandard houses that are not only unsustainable but put the lives of consumers at risk.
Furthermore, there was a concern of the lack of transformation within the construction sector which continued to marginalise small businesses. This leads to a select few big construction companies getting most of the bigger construction projects. To avert this, the community welcomed the provision that guaranteed training for emerging contractors using the surplus portion within the home warranty fund to ensure the transformation of the sector while removing barriers for small businesses to enter the industry.
Those in support of the Bill highlighted its potential to protect consumers especially beneficiaries of RDP houses who continue to suffer as a result of shoddy workmanship. Participants emphasised that full implementation of the Bill is necessary upon enactment into law.
The committee is conducting public hearings to garner views of the public on the Bill. The committee remains of the view that public participation is important in that it will strengthen the Bill and make it responsive to the lived experiences of the people. Also, public consultation and participation is an important Constitutional requirement which Parliament is obliged to undertake within its decision-making processes.
“These hearings are in line with Section 59 (1) of the Constitution which urges for the public involvement in the legislative making process of the Assembly. Also, we are hopeful that as the primary beneficiaries of the protections proposed by the Bill, participants will present qualitative inputs aimed at improving the Bill to ensure that it meets daily challenges. We will take all the views made during the hearings into consideration when deliberating on the Bill,” said Ms Machwene Semenya, the Chairperson of the Committee.
The committee is today holding hearings in the Nelson Mandela Bay Metropolitan Municipality.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS. MS MACHWENE SEMENYA.
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