THE NATIONAL ASSEMBLY

QUESTION FOR WRITTEN REPLY

2839. Mr T D Harris (DA) to ask the Minister of Trade and Industry:

Whether he will publish the (a)(i) structure and (ii) value of the investment in terms of (aa) grants, (bb) loans and (cc) any other financial support and (b) (i) number, (ii) nature and (iii) duration of jobs created by the Ferrostaal's investment in a certain company (see report) to finance a certain motion picture (details furnished) as part of their arms deal offset obligations; if not, why not; if so, what are the relevant details, in each case? NW3521E

Response:

(a) The Ferrostaal contribution was part loan, part grant.  The total value of the contribution was €6 million or ZAR75 million.  Half this amount was provided in the form of a loan and the other half as a grant. The terms of the loan include preferential interest rates. 85% of the total budget of R250 million is to be spent in SA. The detailed terms of this contract was agreed upon by the parties.  The dti is not party to this agreement.

(b) The making of this film is still in pre-production and hence it is premature to report on the realization of the number of jobs.  It is estimated that 28 000 direct and indirect jobs will be created over a two year period of the making of the film. Included in this estimate are jobs in companies providing supply side services such as set builders, carpenters, seamstresses, designers, drivers, caterers, security personnel and so forth.

The project will have a positive impact on the film sector and in related supply side industries such as the music industry. The film will support skills development in the sector and will play a role in ongoing efforts to market South Africa as a suitable destination for film productions and to profile South Africa in general terms.

Issued by Parliament, October 29 2010

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