Improving the relationship between Businesses and Government

1. Improving the relationship between Businesses and Government

2. Contents • Why is there a need for relationships? • What actions can Business take? • What action should government take? • The need for Regulation. • Practical examples in reducing Red Tape. • Tools for successfully reducing Red Tape. • How to develop a Red Tape reduction action plan.

3. Why Should Businesses Work in Partnership with Government to Reduce Red Tape? • Businesses may have first-hand experience of what the Red Tape problems are, as well as ideas on solutions. • Business is interested in cutting Red Tape in order to reduce its costs of doing business. • Government is interested because of the direct effect of cutting administration costs and contributing to economic development.

4. What actions can business take to Reduce Red Tape? • Ensure that there is a formal consultation mechanism between its structures and government to raise issues and concerns, and discuss solutions and processes. • Work with government, via an agreed process, to identify priority Red Tape problems that are negatively impacting on them. • Place pressure on the government to reduce Red Tape Red Tape via the public media or other channels of communication. (e.g. the office of the Public Protector). • NB: Business must ensure that they don’t engage in illegal activities and if they become aware of these, report them to the Police or Anti-Corruption HL.

5. What action should government take? • Cutting the burden of regulatory requirements on businesses; • Cutting the information demands on businesses; • Creation of One Stop Shops and enhancing the use of electronic services to reduce compliance costs • Getting the LG regulatory systemin order; • Adopting “Tell Us Once” initiatives within departments, this will allow the recycling and reuse of information already provided; and • Develop an electronic “single windows” system for information on regulatory requirements.

6. http://en.wikipedia.org/wiki/Single-window_system

7. Setting and being accountable for meeting service standards; • Building a culture of service excellence and professionalism; • “Connecting the dots” for small businesses that must deal with many regulators; and • Using plain language and providing clear, definitive interpretations. • Better understanding the impact of regulations on small businesses. Cutting Red Tape …Freeing Business to Grow, Recommendations Report, RTR Commission, Government of Canada, Jan 2012

8. The need for relevant and effective regulation for security? Many businesses actually demand regulations to protect themselves by creating entry barriers, standards, checks and balances. Tourism provides an example where guest houses often complain that ‘new entrants’ don't comply with certain standards. Therefore, while businesses may complain about regulations, they would also be the first to complain if all the regulations were abolished.

9. Starting a B&B • Business registration CIPC • Financing • Regulation • Re-zoning • Building plans • Food handling and preparation • Liquor license • SARS • Grading (SAGC or equivalent) • Advertising (By-laws) • Labour (UIF, Minimum Wage, OHSA and others) • Procurement policies

10. Western Cape ‘red tape team’ saves 85 jobs • CEO of AMC Daneel Diamond Ventures, Mr.Gert Janssen who is a Belgian citizen, was battling to obtain a permanent residence permit . • In June 2013, he was told to be patient by the Department of Home Affairs where he applied for a permit 6 years ago. • He reached a point where he seriously considered relocating the company to another country.

11. Intervention by the W C ‘red tape team’ • After proper intervention, his application was finalised within 2 weeks. • In addition to creating 85 jobs for locals, AMC Daneel-Diamond Ventures has an annual turnover of close to R300m. http://www.bdlive.co.za/national/2013/09/25/western-cape-red-tape-team-saves-85-jobs

12. CIPC and FNB Partnership • FNB will help to register your private company with CIPC when you apply for a Business Account. • No need to visit the CIPC’s offices and stand in long queues. • You will only pay the CIPC registration fee of R125. (No additional charge for registration by FNB) • Using an enterprise number for trading, no need to wait for lodgement for name reservation.

13. e-Tshwane Is a secure free online service that allows home owners, companies, property managing agents and tenants to view, download and make payments for all utilities accounts electronically anywhere and at any time. Benefits: Reduction in long queues. (time and money) No manual input or human errors in capturing references. Removed human error and payment delays which are two of the most common reasons for erroneous termination of services. The system is fully integrated with major Banks. (Immediate payment systems) Access to full history of accounts and payments made , The ability to interact with the Municipality in the form of lodging complaints and queries and compliments electronically.

14. Service Delivery Excellence There are three main determinants of customer service excellence - people, processes and technology.

16. A good process and process management system should have the following: • A process champion, to ensuring that specific processes function well; • A process goal or objective; • Process key performance indicators or standards and targets that identify acceptable levels of service and/or time frames; • A monitoring and information system that measures, tracks, and reports on the key performance indicators daily; • A management process that reviews the performance of the process and takes corrective action to address under-performance if necessary.

17. 1. How to develop action plans? SCM

18. NATIONAL STEERING COMMITTEE PROVINCIAL DED

21. Thank you!!! DimakatsoKgomo 012 394 1462 dkgomo@thedti.gov.za