MEASUREMENT UNITS AND MEASUREMENT STANDARDS BILL, November 2006

Structure of Presentation Background and context - South African and Global Technical Infrastructure International practice in metrology History of the National Measurement system Review of the National Measurement system Purpose of bill – Need for change What does the NMI do? - Mandate Process thus far & Parties Consulted Financial, Personnel and Organisational Implications Recommendations

Technical Infrastructure Globalisation is increasing the demands on countries to demonstrate that they have the technical infrastructure to guarantee that products originating in their territories are safe and ‘fit for purpose’. Technical infrastructure is required to meet the standards and measurement challenges required by health and safety considerations, environmental considerations (including climate change), as well as considerations of interoperability (necessary for globally dispersed manufacturing platforms). Institutions need to be maintained and improved in order to remain relevant as the platform for global economic efficiency and market access of products.

SOUTH AFRICA’S TECHNICAL INFRASTRUCTURE CONFORMITY ASSESSMENT Prove technical requirements are met Testing, Inspection & Certification SUPPLIERCUSTOMER VOLUNTARY SECTOR Customer/Market Requirements REGULATORS Administer regulations REGULATED SECTOR GOVERNMENT Set policy, laws & technical regulations NMI- MEASUREMENT Underpins testing & calibration through national measurement standards SANAS- ACCREDITATION Assures competence SABS- STANDARDS Specific technical requirement of a product or a system

Globalisation and Technical Infrastructure SOUTH AFRICA SADCMET EUROMET APMP SADCA EA APLAC SADCSTAN CEN/CENELEC PASC REGIONAL INTERNATIONAL Standardisation (ISO/IEC) Accreditation (ILAC/IAF) Metrology /BIPM) SABSSANASNMI WTO TBT

International practice in metrology Internationally metrology is based on an intergovernmental agreement first signed in 1875 as the Metre Convention. The Convention founded the Bureau International des Poids et Mesures (BIPM) which serves as an international laboratory and secretariat, facilitating metrological collaboration among its member nations. The BIPM was established to ensure that all national measurement systems use a common system of units (SI units), that measurement standards are equivalent within specified limits, and that laws and regulations relating to metrology are harmonised

International practice in metrology - continue The recognition of metrology capabilities between national metrology institutes such as the NMI are governed through a mutual recognition arrangement. These MRAs were based on peer and accreditation assessments by teams of experts. They assessed the competence of national metrology institutes bodies and their compliance with international codes of best practice.

Practical examples If SA import or export maize, the cost is related to the accuracy of the measurement; and if SA cannot measure as accurately as our trading partners, SA is immediately disadvantaged in a dispute over the amount of product delivered or received. This can amount to a loss of millions of rands if the imported or exported volumes are high. At home, accurate measurements are essential for health and safety and development of industrial capabilities. For instance, in the case of medical diagnostics tools such as x-ray machines, lasers and others; instruments need to be accurately calibrated to ensure safe operation and reliable diagnosis. In addition, measurement accuracy plays a critical role for suppliers to participate in value chains of advanced sectors such aerospace or nuclear industries.

History of Measurement in SA Established within the Council for Scientific and Industrial Research (CSIR) in 1947 South Africa acceded to the Metre Convention in 1964 In October 1999, the NML and similar bodies from 38 other countries signed a global mutual recognition arrangement regarding their national measurement standards and their calibration and measurement certificates. Measurement Units and National Measuring Act, Act 76 of 1973, requires the maintain national measurement standards. The scope of measurement standards has expanded dramatically.

History of National Measurement system Regionally the NML is a member of SADCMET (SADC Cooperation in Measurement Traceability), the regional metrology body of SADC. The NML plays an important role in SADCMET. The potential exists that the South African metrology institute may become the metrology hub of SADC, and may assume a leading position in metrology and SQAM in Africa.

Review of SA Measurement System The NML is currently a CSIR Centre. CSIR targets technology and innovation while the NML’s targets the establishment and maintenance of the national measurement standards and demonstration of their comparability to international standards and measurements. New profile for metrology is necessary to reflect its importance as the one of the three legs of technical infrastructure and as a peer institution equal to standardisation and accreditation. Intention is to reposition the NML as a national centre of measurement excellence.

The purpose of the Measurement bill To provide a legal framework for the measurement units and measurement standards in SA To establish the National Metrology Institute as a public entity.

Need for an independent entity An independent NMI will ensure greater accessibility to all stakeholders in the Technical Infrastructure domain, will allow for the NMI to be positioned as a centre of measurement excellence and will enable the NMI to focus on its core mandate related to measurement.

Need for changing the status of the NMI Raising the profile of metrology in South Africa in order to reflect its importance as the foundation for the entire South African measurement system Maintaining of the national metrology institute as an internationally recognised metrology body Enabling the dti’s to ensure strategic direction and alignment of the NMI and the rest of the technical infrastructure i.e. Standards and accreditation with national priorities isuch as ASGISA and the Industrial Policy

Need for changing the status of the NMI - continue The new positioning of the current institute as an independent public entity, will align its status with that of the other Technical Infrastructure Institutions, allowing for its own governance through a Board of Directors, for a consultative forum of relevant stakeholders that can advise the Board on matters pertaining to metrology, and for formal cooperation agreements with the CSIR on matters that may be of mutual benefit and interest, especially with regard to new research fields that may require development of new standards.

Mandate The National Metrology Institute is the body in South Africa responsible to provide for the use of measurement units of the International System of Units and certain other measurement units; designate national measurement standards and for keeping and maintaining national measurement standards and units; and disseminate traceability to the South African industry

Mandate continue This new legislation would provide a common national basis for measurement-related traceability, and companies in South Africa will be able to attain traceability to national measurement standards for all parameters at the highest level of confidence and be on par with the best in the world.

Process thus far FRIDGE Study on Standards, Quality Assurance, Accreditation and Metrology (SQAM) completed April benchmarked against Brazil, Australia, UK and Malaysia. Cabinet approved project for restructuring of Technical Infrastructure on 22 May the dti Policy on Modernising the South African Technical Infrastructure approved June Workshops held with government departments and industry on policy position July This was supplemented by letters to DGs of various departments – August Written comments solicited from all stakeholders until September Nedlac Task Team concluded report on policy proposals October Lawyers appointed to draft bills – March 2005

Process thus far - continue Consultation with Nedlac, Institutions and dti Legal Directorate on draft bill completed and inputs incorporated – April Cabinet Committee on Governance and Administration on 1 August 2006 recommended the approval of the following recommendations by Cabinet: - The introduction of the Measurement Units and Measurement Standards Bill (subject to the inclusion of a clause clarifying the remuneration and conditions of service for the Board and staff) ; - The transitional arrangements relating to the transfer of the assets and liabilities the migration of staff to the new entity; -The appointment of the current Centre Manager as an acting Chief Executive Officer until the Board appoints a Chief Executive Officer for a specific period; -process of appointing of a Board and CEO for the new entity upon approval of the legislation.

Parties consulted National Treasury has been formally consulted in line with the PFMA on the establishment of the NMI as a public entity. Other stakeholders consulted: Departments of Labour, Transport, Agriculture, Housing, Health, Environmental Affairs and Tourism, Minerals and Energy, Science and Technology, Local and Provincial Government and the Presidency; SABS; CSIR; SANAS; Industry and other interested parties; and Nedlac. Further consultations will be done by a Joint Committee with the dti, DPSA, National Treasury and CSIR as members.

Portfolio Committee Trade and Industry and National Assembly On 18 October the Committee passed a motion on the desirability to take the bill as a basis Classified it a Section 75 Bill Passed the Bill with amendments On 24 October the Second reading of the bill was presented by the DM of Trade and Industry All the parties supported the Bill and recommended the briefing to the NCOPs Select Committee on Economic and Foreign Affairs

Personnel and organisational implications The Measurement Units and Measurement Standards Bill provides for transitional arrangements, including the transfer of all staff, as well as the transfer of assets and liabilities from the CSIR. The Bill also provides for the appointment of a Chief Executive Officer and a Board. In the interim, the current Centre Manager, will act as Chief Executive Officer. The recruitment process for a permanent Chief Executive Officer will commence once Cabinet has approved the legislation process for the establishment of the NMI and a Board has been established. Cabinet Committee on Governance and Administration on 1 August 2006 recommended the approval of the abovementioned recommendations by Cabinet.

Financial implications The dti makes annual budget allocations for the NMI in terms of the MTEF The current baseline of R million will need to be increased to R43 million as from the 2007/2008 budget cycle in order to provide for additional financial implications associated with the establishment and restructuring of the NMI as a public entity.

Summary In keeping with international trends of metrology the current NMI at the CSIR is to be elevated to a position that reflect its importance as the foundation for the entire South African measurement system. The National Metrology Laboratory (NML) will be re- constituted as a National Metrology Institute (NMI), a public entity that is independent from the CSIR. The NMI will be responsible for the establishment of the national measurement standards and demonstration of their comparability to international standards and measurements. An independent NMI will enhance the Technical Infrastructure (standardardisation, accreditation, quality assurance and metrology activities)

Recommendations for Cabinet approval The introduction of the Measurement Units And Measurement Standards Bill The transitional arrangements relating to the transfer of the assets and liabilities and the migration of staff to the new entity; The appointment of the current Centre Manager as an acting Chief Executive Officer until the Board appoints a Chief Executive Officer for a specific period; Upon approval of the legislative process that the process of appointing a Board and a Chief Executive Officer for the new entity proceed.