MEASUREMENT UNITS AND MEASUREMENT STANDARDS BILL, 2006 23 August 2006

1. MEASUREMENT UNITS AND MEASUREMENT STANDARDS BILL, 2006 23 August 2006

2. Why do we need metrology i.e. the science of measurement? “When we are shopping When we heat or cool our homes When we buy fuel When size matters or we pay for quality When we consult a doctor or attend hospital When our actions are the subject of legislation” - Euromet

3. 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 • Summary

4. Technical Infrastructure • Metrology, together with standards, technical regulations, accreditation and conformity assessment, are collectively known as the 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 crucial 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 in this domain need to be maintained and improved in order to remain relevant as the platform for global economic efficiency and market access of products.

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

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

7. International practice in metrology • Internationally metrology (the science of measurement) 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

8. 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 are based on peer and accreditation assessments by teams of experts. They assess the competence of national metrology institutes and their compliance with international codes of best practice.

9. Key comparisons • Organization to form families • Results interpreted to show equivalence between anyone of the participants in any comparison of the family

10. 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 Measurement Standards Act, Act 76 of 1973, requires the NML maintain national measurement standards. • The scope of measurement standards has expanded dramatically over the years.

11. 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 in Africa in support of NEPAD.

12. Review of SA Measurement System • The NML iscurrently a CSIR Centre. • CSIR is about technology and innovation while the NML’s focuses on the establishment and maintenance of national measurement standards and the demonstration of their comparability to international standards and measurements. • New profile for metrology is necessary to reflect its importanceas a foundation institution to standardisation and accreditation. • As a national centre of measurement excellence, the current profile is not optimal.

13. Need for an independent entity An independent NMIwill enable the entity to focus on its core mandate related to measurement, will allow for the NMI to be positioned as a centre of measurement excellence andwill ensure direct linkages to the BIPM and international peers.

14. 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 such as ASGISA and the Industrial Policy

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

16. 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

17. Process thus far • FRIDGE Study on Standards, Quality Assurance, Accreditation and Metrology (SQAM) completed April 2001 - benchmarked against Brazil, Australia, UK and Malaysia. • Cabinet approved project for restructuring of Technical Infrastructure on 22 May 2002. • the dti Policy on Modernising the South African Technical Infrastructure approved June 2004. • Workshops held with government departments and industry on policy position July 2004. • This was supplemented by letters to DGs of various departments – August 2004. • Written comments solicited from all stakeholders until September 2004. • Nedlac Task Team concluded report on policy proposals October 2004. • Lawyers appointed to draft bills – March 2005

18. Process thus far - continue • Consultation with Nedlac, Institutions and dti Legal Directorate on draft bill completed and inputs incorporated – April 2006. • 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.

19. 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.

20. 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.

21. Financial implications • The dti makes annual budget allocations for the NMI in terms of the MTEF • The current baseline of R37 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.

22. 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)