by Simphiwe Hamilton, Executive Director – AMD

1. AMD PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON DEFENCE ON THE PROHIBITION OR RESTRICTION OF CERTAIN CONVENTIONAL WEAPONS (CCW) BILL 07 AUGUST 2007 by Simphiwe Hamilton, Executive Director – AMD A STRONG DEMOCRACY NEEDS THE SUPPORT OF A STRONG DEFENCE INDUSTRY

2. PURPOSE & SCOPE OF PRESENTATION • PURPOSE • To articulate the response of the SA Defence Related Industries (SADRI) to the proposed Bill on the Prohibition or Restriction of Certain Conventional Weapons (CCW). • SCOPE • Overview of the evolving SADRI position on key developments within the defence landscape on each of the areas listed below: • Denel restructuring; • Armscor restructuring; • Formation of a Defence Evaluation and Research Institute; • Acquisition Processes and Industrial Participation; and • Defence Industrial Development Strategy.

3. THE SA AEROSPACE MARITIME AND DEFENCE INDUSTRIES ASSOCIATION • AMD is an industry funded association representing the common interests of its members and strives to ensure a sustainable and responsible SADRI. • The AMD Board of Directors, which consists of representatives from SADRI, directs the activities of the association on behalf of the members. • The dti and the DoD recognise AMD as the only defence industry representative association. • 92% of local defence material acquisition spend and 97% of the SADRI’s exports are attributable to AMD members. • SADRI contributed 0.56% GDP, 2% to the formal employment figures and 7% to the manufacturing GDP (2005). • AMD is the organised voice of SADRI and point of entry for all communications with / enquiries to industry. ONE VOICE FOR A UNIFIED SADRI

4. SUPPORTING SA TO MEET IT’S INTERNATIONAL OBLIGATIONS! • As a responsible member of the International Community, the SADRI adheres to and supports the policy and legislation on: • Conventional Arms Control, • Non-Proliferation of Weapons of Mass Destruction, and • Other similar legislative dictates like the Mine Ban Treaty and the Foreign Military Assistance Act. • Further, and in an attempt to facilitate optimal compliance, most AMD members have: • Their own internal Arms Control Procedures, • Committed themselves to abiding by the AMD / SADRI Code of Business Conduct which supports compliance with the above. SADRI IS REGULATED & SUPPORTS THE ARMS CONTROL PROCESSES & RELATED LEGISLATION Page 18

5. SADRI RESPONSE TO CCW PROVISIONS SADRI – COMMITTED TO A SAFE, SECURE & DEVELOPING SOUTH AFRICA

6. SADRI RESPONSE TO CCW PROVISIONS, cont. IN SUPPORT OF PEACE AND SECURITY IN AFRICA

7. SADRI RESPONSE TO CCW PROVISIONS, cont. (2) IN SUPPORT OF A RESPONSIBLE DEFENCE INDUSTRY

8. SUMMARY & CLOSURE SADRI & AMD support and appreciate the SA Government’s efforts to ensure responsible trade in arms, to prevent the proliferation of WMD and to ‘Restrict Certain Conventional Weapons which May be Deemed to be Excessively Injurious or to Have Indiscriminate Effects’. The submission focuses mainly of ensuring: • Practicality of enforcing the Bill; • Preventing undue encroachment of existing instruments; • Clarity of definitions; and • Continued R&D / dual use prospects. DEFENDING DEMOCRATIC GOVERNANCE AND PARTICIPATION