Case Law[2023] ZACC 18South Africa
South African Iron and Steel Institute and Others v Speaker of the National Assembly and Others (CCT 240/22) [2023] ZACC 18; 2023 (10) BCLR 1232 (CC) (26 June 2023)
Constitutional Court of South Africa
26 June 2023
Headnotes
Summary: [National Environmental Management Laws Amendment Act 2 of 2022] — [sections 59(1)(a) and 72(1)(a) the Constitution] — [constitutional obligation to facilitate public involvement] — [amended definition of “waste”] — [declaration of invalidity]
Judgment
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## South African Iron and Steel Institute and Others v Speaker of the National Assembly and Others (CCT 240/22) [2023] ZACC 18; 2023 (10) BCLR 1232 (CC) (26 June 2023)
South African Iron and Steel Institute and Others v Speaker of the National Assembly and Others (CCT 240/22) [2023] ZACC 18; 2023 (10) BCLR 1232 (CC) (26 June 2023)
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sino date 26 June 2023
CONSTITUTIONAL
COURT OF SOUTH AFRICA
Case
CCT 240/22
In
the matter between:
SOUTH
AFRICAN IRON AND STEEL INSTITUTE
First
Applicant
FERTILIZER
ASSOCIATION
OF
SOUTHERN
AFRICA
Second
Applicant
ARCELORMITTAL
SOUTH AFRICA LIMITED
Third
Applicant
H
PISTORIUS & KIE PROPRIETARY LIMITED
Fourth
Applicant
and
SPEAKER
OF THE NATIONAL ASSEMBLY
First
Respondent
CHAIRPERSON
OF THE NATIONAL
COUNCIL
OF
PROVINCES
Second
Respondent
MINISTER
OF FORESTRY, FISHERIES
AND
THE
ENVIRONMENT
Third
Respondent
PRESIDENT
OF THE REPUBLIC
OF
SOUTH
AFRICA
Fourth
Respondent
SPEAKER
OF THE EASTERN CAPE
PROVINCIAL
LEGISLATURE
Fifth
Respondent
SPEAKER
OF THE FREE STATE
PROVINCIAL
LEGISLATURE
Sixth
Respondent
SPEAKER
OF THE GAUTENG
PROVINCIAL
LEGISLATURE
Seventh
Respondent
SPEAKER
OF THE KWAZULU-NATAL
PROVINCIAL
LEGISLATURE
Eighth
Respondent
SPEAKER
OF THE LIMPOPO
PROVINCIAL
LEGISLATURE
Ninth
Respondent
SPEAKER
OF THE MPUMALANGA
PROVINCIAL
LEGISLATURE
Tenth
Respondent
SPEAKER
OF THE NORTHERN CAPE
PROVINCIAL
LEGISLATURE
Eleventh
Respondent
SPEAKER
OF THE NORTH WEST
PROVINCIAL
LEGISLATURE
Twelfth
Respondent
SPEAKER
OF THE WESTERN CAPE
PROVINCIAL
LEGISLATURE
Thirteenth
Respondent
Neutral
citation:
South
African Iron and Steel Institute and Others v Speaker of the National
Assembly and Others
[2023]
ZACC 18
Coram:
Maya DCJ,
Kollapen J,
Madlanga J,
Majiedt J, Makgoka AJ, Mathopo J, Potterill AJ,
Rogers J and Theron J
Judgment:
Mathopo J (unanimous)
Heard
on:
21 February 2023
Decided
on:
26 June 2023
Summary:
[National
Environmental Management Laws Amendment Act 2 of 2022] —
[sections 59(1)(a) and 72(1)(a) the Constitution] —
[constitutional obligation to facilitate public involvement] —
[amended definition of “waste”] — [declaration
of
invalidity]
ORDER
On
application for direct access to the Constitutional Court:
1.
It is declared that Parliament
has failed to comply with its
constitutional obligation to facilitate public involvement in terms
of sections 59(1)(a) and 72(1)(a)
the Constitution in respect of the
following provisions of the National Environmental Management Laws
Amendment Act 2 of 2022:
a.
The amended definition of
“waste” in section 61(k);
b.
The new definition of “commercial
value” in section
61(c);
c.
The new definition of “trade
in” in section 61(j); and
d.
The transitional provision
in section 88.
2.
The said provisions are
accordingly declared invalid and
unconstitutional.
3.
The first and second respondents
are directed, jointly and severally,
to pay the applicants’ costs, including the costs of two
counsel.
JUDGMENT
MATHOPO J(Maya DCJ, Kollapen J,
Madlanga J
,
Majiedt J
Makgoka AJ
,
Potterill AJ
,
Rogers J
and Theron J
concurring):
Introduction
[1] This
is an application invoking this Court’s
exclusive jurisdiction
in terms of section 167(4)(e) of the Constitution.
[1]
It concerns an alleged failure by Parliament to comply with its
constitutional obligations to facilitate public involvement,
in
breach of sections 59(1)(a) and 72(1)(a) of the
Constitution.
[2]
The constitutional challenge is directed at specific provisions of
the National Environmental Management Laws Amendment Act
[3]
(NEMLA
Act) that amend the definition of “waste” in the National
Environmental Management: Waste Act
[4]
(Waste Act)
and insert other related provisions into the Waste Act. The
NEMLA Bill was assented to on 24 June 2022
but has not yet been
brought into operation.
[2] The
central issue in this case is whether
material amendments to a Bill
without further public involvement passes constitutional muster.
There are two aspects that
must be addressed: first, whether the
amendments are material, and second, whether these amendments
triggered the need for further
public involvement.
Parties
[3] The
first applicant is the South African Iron
and Steel Institute
(SAISI). SAISI represents the collective interests of the South
African primary steel industry.
Its members include three
carbon steel producers and South Africa’s only stainless-steel
producer. One of its members
is ArcelorMittal South Africa
Limited (AMSA), the third applicant in this matter.
[4] The
second applicant is the Fertilizer Association
of Southern Africa
(FERTASA). FERTASA represents the fertilizer industry in
Southern Africa with its members producing, trading,
blending and
distributing fertilizer products across the region. Through
FERTASA, the applicants wish to be heard and to
call for public
participation in respect of the impugned amendments.
[5] The
first respondent is the Speaker of the
National Assembly (NA), who is
elected in terms of section 52 of the Constitution. The second
respondent is the Chairperson
of the National Council of Provinces
(NCOP), who is elected in terms of section 64 of the
Constitution. The third respondent
is the Minister of Forestry,
Fisheries and the Environment (Minister), who is the national
executive responsible for the implementation
of the legislation in
issue. The fourth respondent is the President of the Republic
of South Africa (President) cited in
his official capacity as the
head of the national executive. The fifth to the thirteenth
respondents are cited in their official
capacities as Speakers of the
Provincial Legislatures across the country. Only the first and
second respondents oppose the
application. The Minister, while
not opposing, has filed an explanatory affidavit.
Background
[6] The
Waste Act is environmental legislation,
falling within the ambit of
the National Environmental Management Act. The Waste Act
establishes a regulatory regime governing
the management of waste.
The pre-amendment (that is, the current) definition of “waste”
in the Waste Act reads:
“
(a)
any substance, material or object, that is unwanted, rejected,
abandoned, discarded or disposed
of, or that is intended or required
to be discarded or disposed of, by the holder of that substance,
material or object, whether
or not such substance, material or object
can be re-used, recycled or recovered and includes all wastes as
defined in Schedule
3 to this Act;
(b)
any other substance, material or object that is not included in
Schedule 3 that may
be defined as a waste by the Minister by notice
in the Gazette,
but
any waste or portion of waste, referred to in paragraphs (a) and (b)
ceases
to
be waste—
(i)
once an application for its re-use,
recycling or recovery has been
approved or, after such approval, once it is, or has been re-used,
recycled or recovered;
(ii)
where approval is not required, once a waste
is, or has been re-used,
recycled or recovered; or
(iii)
where the Minister has, in terms of section 74, exempted
any waste or
a portion of waste generated by a particular process from the
definition of waste; or
(iv)
where the Minister has, in the prescribed manner,
excluded any waste
stream or a portion of waste stream for the definition of waste.”
[7] On
16 September 2015, the National Environmental
Management Laws
Amendment Bill (Bill) was approved by Cabinet. On 13 October
2015, the Minister published a notice in the
Government
Gazette
in which he invited public comment on the Bill.
The closing date for public comment was 30 November 2015. This
version of the Bill proposed to insert the following new definition
of “waste” into the Waste Act (deletions from
and
additions to the existing definition are shown in strike-out text and
underlining respectively):
“
(a)
any substance, material or object, that is unwanted, rejected,
abandoned, discarded or disposed
of, or that is intended or required
to be discarded or disposed of, by the holder of that substance,
material or object, whether
or not such substance, material or object
can be re-used, recycled or recovered and includes all
wastes
as defined
waste
which emanates from the sources
in
Schedule 3 to this Act; or
(b)
any other substance, material or object that is not included in
Schedule 3 that may
be defined as a waste by the Minister by notice
in the Gazette,
but
any waste or portion of waste, referred to in paragraphs (a) and (b),
ceases to be a waste—
(i)
once an application for its reuse,
recycling or recovery has been
approved
or, after such approval, once it is, or has
been reused, recycled or recovered
and the waste or
portion of waste is re-used, recycled or recovered in accordance with
the conditions in the approval
;
(ii)
where approval is not required, once a waste
is, or has been reused,
recycled or recovered;
(iii)
where the Minister has, in terms of section 74, exempted
any waste or
a portion of waste generated by a particular process from the
definition of waste; or
(iv)
where the Minister has, in the prescribed manner,
excluded any waste
stream or a portion of a waste stream from the definition of waste.”
[8] On
23 May 2017, the Bill was introduced in
the NA. This version of
the Bill contained non-material changes to the definition of “waste”
published in October 2015.
Thereafter, the Bill was
referred to the Portfolio Committee on Environmental Affairs
(Portfolio Committee).
[9] On
24 April 2018, public hearings were held
where comments and
representations were made by a range of stakeholders. The
Portfolio Committee proceeded to prepare
a “B”
version of the Bill, reflecting its proposed amendments. Again,
the proposed amendments did not materially
change the scope of
“waste” from the previous version. On 8 November
2018, the Portfolio Committee considered
and adopted the Bill with
amendments. These amendments, which were unrelated to the
definition of “waste”, constituted
the “D”
version of the NEMLA Bill. The “D” version
contained the following definition of “waste”
(deletions
from and additions to the existing definition are again shown in
strike-out text and underlining):
“
(a)
any substance, material or object, that is unwanted, rejected,
abandoned, discarded or disposed
of, or that is intended or required
to be discarded or disposed of, by the holder of that substance,
material or object, whether
or not such substance, material or object
can be reused, recycled or recovered
and
includes all wastes as defined in Schedule 3 to this Act
;
or
(b)
any other substance, material or object
that is not
included in Schedule 3
that may be defined as a waste
by the Minister by notice in the Gazette,
but
any waste or portion of waste, referred to in paragraphs (a) and (b),
ceases to be a waste—
(i)
once an application for its reuse,
recycling or recovery has been
approved
or, after such approval, once it is, or has
been reused, recycled or recovered
and the waste or
portion of waste is re-used, recycled or recovered in accordance with
the conditions in the approval
;
(ii)
where approval is not required, once a waste
is, or has been reused,
recycled or recovered;
or
(iii) where
the Minister has, in terms of section
74, exempted any waste or a
portion of waste generated by a particular process from the
definition of waste; or
(
iv
)
where the Minister has, in the prescribed manner, excluded any waste
stream or a portion of
a waste stream from the definition of waste”.
[10] On
27 November 2018, the “D” version of the NEMLA Bill
was
passed by the NA and transmitted to the NCOP for concurrence. A
period of inactivity then followed, resulting in the
lapse of the
NEMLA Bill in terms of the NA Rules in May 2019. The Bill
was subsequently revived by the NCOP on 17 October 2019.
[11] On
17 April 2020, the Supreme Court of Appeal handed
down
judgment in the
AMSA
.
[5]
The pre-amendment (that is, existing) definition of waste was
considered in detail in this judgment. One of the primary
issues was whether the pre-amendment definition of “waste”
applied to Basic Oxygen Furnace slag (BOF slag), an important
by-product of the steel-making process.
[6]
BOF slag has several commercial uses, primarily in the road
construction and agricultural sectors. In the agricultural
sector, it is used to condition soils and is specifically registered
as a product in terms of the Fertilizers Farm Feeds, Agricultural
Remedies and Stock Remedies Act.
[7]
[12] There,
AMSA argued that BOF slag, at the point of sale and dispatch
to
third parties, is not “waste” as it is not
“unwanted, rejected, abandoned, discarded or disposed of”.
Both the High Court and the Supreme Court of Appeal
agreed with AMSA’s interpretation. The
Supreme Court of Appeal
held that the existing
definition of waste is “clear and unequivocal”. “On
a fair reading”, the Supreme Court of Appeal
held, “it becomes readily apparent that any substance, material
or object that is not ‘unwanted, rejected, abandoned,
discarded
or disposed of’ does not fall within the ambit of the
definition”. The Court further held: “any
substance, material or object that has been recycled or recovered. .
. ceases to be waste once recycled or re-used”.
[8]
[13] The Supreme Court of Appeal
confirmed that finished
products, by products and co products
of manufacturing processes, which a manufacturer intends to sell to
customers,
are not “waste”. The Department of
Environmental Affairs (Department) chose not to appeal
the
AMSA
judgment.
[14] From
June 2020 onwards, public participation hearings were conducted
in
the provinces in respect of the “D” version of the Bill.
The definition of “waste” in this version
of the Bill
remained fundamentally unaltered. On 8 October 2020, the
Gauteng Provincial Legislature finalised its negotiating
mandate in
respect of the “D” version of the Bill. This
mandate recorded that, based on the ongoing discussions
on the
definition of waste, “the definition should be simple and
unambiguous”. It went on to state that the
AMSA
judgment
—
“
points
to the need for the definition to allow for rational, risk-based
beneficiation of waste without the need for any waste management
licence or compliance with the National Environmental Management:
Waste Act, as the material in question would not be considered
a
waste.”
[15] In
June 2021, the NCOP Select Committee convened a virtual meeting
to
consider the mandates from the Provincial Legislatures. This
was not a public participation meeting. In response
to a
proposal from the Gauteng Provincial Legislature’s delegates
that the definition of “waste” be simplified,
the
Department instead offered an entirely new definition. The new
definition of “waste” was as follows (again,
deletions
from and additions to the existing definition are shown in strike-out
text and underlining):
“
(
a
)
any substance, material or object, that is unwanted, rejected,
abandoned, discarded or disposed of, or that is intended or required
to be discarded or disposed of, by the holder of that substance,
material or object, whether or not such substance, material or
object
can be reused, recycled or recovered and includes all wastes as
defined in Schedule 3 to this Act; or
(a)
any substance, material or object –
that
the generator of that substance, material or object has no further
use for within its own processes, whether or not it has
any
commercial value for the generator, but which can be re-used,
recycled, recovered and traded in by any person; or
(i)
that is rejected, abandoned, discarded or disposed of, either
temporary or permanently,
or is intended to be discarded or disposed
of by the generator of that substance, material or object, regardless
of whether or
not that substance, material or object has any
commercial value for the generator or can be re-used, recycled,
recovered or traded
in by any person; or
(b)
any other substance, material or object that is not included in
Schedule 3 that may
be defined as a waste by the Minister by notice
in the Gazette,
but
any waste or portion of waste, referred to in paragraphs (a) and (b),
ceases to be a waste—
(aa)
once it is re-used, recycled or recovered or traded in by the holder
of that waste or portion
of waste in accordance with a conditions
stipulated in a valid waste management licence, where applicable, or
in accordance with
and applicable law or standard made in terms of
this Act
;
(bb)
where the Minister has, in the prescribed manner, excluded the holder
of any waste stream or
a portion of a waste stream from the
definition of waste, enabling the holder thereof to trade in the
excluded waste stream or
portion of the excluded waste stream,
provided that the holder has satisfied the requirements of proving
the environmentally safe
use of the waste stream or portion of waste
stream by it or any other person and committed to provide the
Minister with annual
reports of the use thereof.
(i) once
an application
for its reuse, recycling or recovery has been approved
or, after such approval, once it is, or has been reused, recycled or
recovered;
(ii) where
approval is not required,
once a waste is, or has been reused,
recycled or recovered;
(iii) where
the Minister has, in terms of section
74, exempted any waste or a
portion of waste generated by a particular process from the
definition of waste; or
(iv) where
the Minister has, in the prescribed
manner, excluded any waste stream
or a portion of a waste stream from the definition of waste.”
[16] The
amended definition included any substance for which the manufacturer
had no further use within its own processes, whether or not the
substance had commercial value. The phraseology, “unwanted,
rejected, abandoned, discarded or disposed of” was omitted.
Various consequential amendments, including definitions
of
“commercial value” and “trade in”, as
well as an entirely new transitional provision to cater for
the new
definition of “waste”, were inserted. Far from
streamlining the definition, the Department’s new
definition
radically expanded its scope. The NCOP Select Committee
endorsed the Department’s proposal without
any discussion,
questioning or debate on its implications.
[17] The
applicants’ representatives first learnt of this new definition
several weeks later on the Parliamentary Monitoring Group website.
In July 2021, SAISI and FERTASA expressed their concerns
in letters
addressed to the Department and the Chairperson of the NCOP Select
Committee and requested a further public participation
process on the
amended definition. These letters raised the concern that the
amended definition was a significant departure
from the previous
definition contained in the Waste Act and would have significant
implications for their industries.
[18] On
16 November 2021, the proposed amendments were introduced to the
NCOP
Select Committee as part of the “E-List” of
amendments to the Bill. This reflected the Department’s
new proposed definition of “waste” and the consequential
amendments following from that proposal, in identical terms
to the
proposals considered on 15 June 2021.
[19] On
14 December 2021, the amended NEMLA Bill – the “F”
version – was passed by the NCOP, without any further public
participation, and was returned to the NA for its concurrence.
[20] In
February 2022, the NA Portfolio Committee was advised that the
NCOP
had made “considerable amendments to the Bill”.
However, the NA and the Portfolio Committee did not
attempt to
facilitate further public participation. On 1 March 2022,
the NEMLA Bill was passed by both houses of Parliament
and was sent
to the President for his assent. This final version of the
NEMLA Bill received the President’s assent
on 24 June 2022.
It was substantially similar in terms to the 15 June 2021
proposals by the Department,
the “E-List”, and the “F”
versions. The definition of “waste” was identical
to the “F”
version. In terms of section 89 of the
NEMLA Act, the Act will “come into operation on a date fixed by
the President
by proclamation in the Gazette”. That
proclamation is still pending. Dissatisfied with the processes,
the applicants
launched a constitutional challenge in this Court.
In
this Court
[21] The
applicants’ complaint is that during the legislative process
leading to the enactment of the Bill, the NCOP and the Provincial
Legislatures did not comply with their constitutional obligations
to
facilitate further public participation in their legislative
processes as required by the Constitution. The applicants
contend that although they were afforded an opportunity to
participate in the legislative process leading to the “D”
version of the Bill, they were not afforded an opportunity to make
representations when the new definition of waste (the “E”
and “F” versions), which introduced material amendments
and transitional provisions, was proposed.
[22] The
applicants further contend that Parliament was aware that the
amendments were material as they included transitional provisions in
section 88 of the NEMLA Act, which, among others, acknowledges
that products that were not previously regarded as “waste”
now fall within the definition. In addition, a new
class of
persons who did not previously fall within the definition would now
be affected by the new amendment and required to comply
with the
detailed regulatory requirements of the Act.
[23] While
conceding that further public participation was not conducted,
the
respondents deny the allegation by the applicants that they were not
given an opportunity to comment on the amended definition
of waste
and contend that the applicants were given adequate opportunity in
relation to the definition of waste, and fully participated
in all
parliamentary processes and had ongoing engagements with the
Department. The respondents emphasise that during this
process,
the views of members of the public, including their views on the
scope and content of the definition of waste, were considered.
[24] The
respondents dispute that the amendments are material and instead
submit that while they are important, they retain the conceptual
framework contained in the initial versions of the Bill.
The
respondents assert that it would be impractical and unrealistic for
new public comment processes to be initiated every time
an amendment
is made to a draft Bill. If this were required of Parliament,
it would delay it from enacting laws timeously.
To buttress
their argument, the respondents contend that those consulted are
expected to express themselves exhaustively on the
issues for
consultation when they are invited to do so. According to the
respondents, the definition of “waste”
was one such issue
on which the public was reasonably consulted. No prejudice
would be suffered by the public because Parliament
intended to rework
the definition of waste to provide clarity and to better meet the
objectives of waste regulation.
[25] Finally,
the respondents assert that both the NCOP and the various
Provincial Legislatures complied with the duty to facilitate
public involvement in the legislative process. They further
contend that it is impermissible to assess the legislative processes
in a piecemeal fashion. Rather, a holistic approach
must be
adopted when assessing the constitutionality of the process.
Jurisdiction
[26] The
applicants have approached this Court directly and assert that
this Court has jurisdiction over the present dispute because it
implicates the question of whether Parliament has fulfilled
its
constitutional obligation to facilitate public involvement.
Whether this Court has jurisdiction under section 167(4)(e)
to
decide the dispute depends on two matters. First, whether
sections 59(1)(a) and 72(1)(a) imposes an obligation on the
NA, NCOP
and Provincial Legislatures to facilitate public involvement in its
legislative processes and those of its committees.
The second
question is whether the obligation to facilitate public involvement
is the kind of obligation contemplated in section
167(4)(e), this was
answered definitively in
Doctors for
Life
[9]
–
the respondents did not contest this. They also do not dispute
that the applicants have legal standing to bring
this application.
Issues
[27] As
stated earlier, the overarching issue in this case is whether
the NA,
NCOP and Provincial Legislatures failed to comply with their
constitutional obligations to facilitate public involvement
as
contemplated in sections 59(1)(a) and 72(1)(a) of the Constitution.
If the processes followed by the NA, NCOP and Provincial
Legislatures
do not pass constitutional muster, then we must consider what is the
appropriate relief, taking into account that
the President has not
yet proclaimed the effective date of the Bill.
Analysis
The
materiality of the impugned amendments
[28] South
Africa is a constitutional democracy that upholds representative
and
participatory democracy. The purpose of public participation
and involvement in democratic processes is primarily to
influence
decision-making processes that affect the will of the people.
Public participation is premised on the belief that
those who are
affected by a decision have the right to be involved in the
decision-making process. Central to this is the
acknowledgment
that institutions with decision-making powers must involve those who
are likely to be affected by such decisions.
[29] Since
the first democratic Parliament of the Republic of South Africa,
its
vision has been and remains to build a truly representative people’s
Parliament. The facilitation of public participation
and
involvement in its processes remains central to the mandate of
Parliament. According to section 42(1) of the Constitution,
Parliament consists of the NA and the NCOP. The NA is
responsible for, amongst other things
,
passing laws,
ensuring that members of the executive perform their work properly,
and providing a forum where the representatives
of the people can
publicly debate issues. The NCOP consists of 90 provincial
delegates – each of the nine provinces
are allocated 10
delegates. Therefore, each province is equally represented in
the NCOP. The Constitution provides
that the NCOP represents
the provinces to ensure that provincial interests are taken into
account in the national sphere of government.
The NCOP does
this mainly by participating in the national legislative process, and
by providing a national forum for public debate
on important issues
affecting the provinces. The NCOP also ensures that local
government concerns are represented at the
highest level.
[30] Public
participation standards must be consistent with constitutional
prescripts and legal requirements which include informing, educating
and creating meaningful opportunities for the public to participate
in decision making on issues that affect them.
[10]
Reporting, feedback, monitoring and evaluation are pivotal for the
process of tracking outcomes of a given public participation
opportunity thereby ensuring effective public participation.
[11]
It is important that as a bill progresses through different stages,
the public must be informed and consulted. Information
is
therefore an absolute prerequisite for effective public
participation. Public participation processes should provide
for stages of participation that are commensurate with the level of
public interest.
[31]
Doctors
for Life
states:
“
All
parties interested in legislation should feel that they have been
given a real opportunity to have their say, that they are
taken
seriously as citizens and that their views matter and will receive
due consideration at the moments when they could possibly
influence
decisions in a meaningful fashion. The objective is both
symbolical and practical: the persons concerned must be
manifestly
shown the respect due to them as concerned citizens, and the
legislators must have the benefit of all inputs that will
enable them
to produce the best possible laws.”
[12]
[32] Public
participation is a process in which the public is engaged
in a given
matter of public interest for the purpose of obtaining their views
with the aim of ensuring the process is fair, reasonable
and that the
public is heard.
[33] In
considering whether the final version of the Bill introduced a
material amendment or not, the starting point is the examination of
the definition of waste before and after the amendments and
the
regulatory scope of the Waste Act. The two versions which
require comparison are the “D” version on the one
hand
and the “F” (and enacted) version on the other. The
applicants do not complain of a lack of public participation
up to
and including the “D” version; their complaint is about
the lack of participation thereafter. On a plain
reading of the
two definitions of “waste”, they are remarkably
different, with the revised definition being far more
expansive.
The impugned amendments significantly sought to amend the definition
of waste in the Act by the insertion of sections
61(k),
[13]
61(c)
[14]
and
61(j),
[15]
as
well as the introduction of transitional provisions in section 88.
[34] Significantly,
it was the Department’s case that the definition
introduced by
way of the “E-list” changes were in part designed to
counteract the Supreme Court of Appeal’s
decision
in
AMSA
. Up to and including the “D”
version of the Bill, the
AMSA
decision would have
remained applicable, despite the superficial adjustments to the
definition of “waste”. The
“F” version,
by contrast, swept the
AMSA
decision aside, since
the Supreme Court of Appeal’s reasoning would no longer be
justified by the revised wording of the definition.
It is idle,
in the circumstances, for the respondents to contend that the late
change in definition was not material.
[35] All
these amendments were introduced in June 2021, long after the
period
for public comment and public hearings had been concluded. The
materiality of these amendments ushered in a new way
of dealing with
and defining waste. Up to version “D”, the
definition of waste was described as “any
substance, material
or object, that is unwanted, rejected, abandoned, discarded or
disposed of, or that is intended or required
to be discarded or
disposed of”. The “F” version which then
found expression in the NEMLA Act sought to
expand this definition to
include “wanted” materials for which a generator has “no
further use for within its
own processes, whether or not it has any
commercial value for the generator.”
[36] The
effect of this amendment of the definition of waste was that
a vast
range of products, co-products and by-products that were never
regulated as waste before, would now be subject to the onerous
requirements of the Waste Act, with significant consequences
including new regulatory requirements that have costs implications.
In addition to the requirements envisaged in the transitional
provisions which will be discussed below, section 20 of the
Waste Act
states that no person may perform a waste management activity except
in accordance with a waste management licence or,
if no licence is
required, in terms of prescribed requirements or standards. Breach
of this section could result in severe
penalties, including up to 10
years’ imprisonment, a fine of up to R10 million, or both.
[37] To
further bolster the point that the amendments were material by
virtue
of the insertion of the transitional provisions as envisaged in
section 88 of the NEMLA Act, it is important to note
that
subsection (2) requires the person in control of the substance,
material or object, within 60 days from the date of commencement
of
the amended definition of waste, to:
“
(a)
apply for a waste management licence, if the person conducts an
activity, which is listed in terms
of section 19(1) of the Principal
Act;
(b)
comply with a norm or standard, if the person conducts an activity
listed in terms
of section 19(3) [Waste Act]; or
(c)
apply for the exclusion of the substance, material or object from the
definition of
waste in the prescribed manner.”
[16]
[38] Possible
implications for producers and customers presented by the
transitional provision include:
(a)
applying for an exemption in terms of section 74 of the Waste Act;
(b)
ceasing the primary production activity which causes the co-product
or by-product to be
produced;
(c)
ceasing the sale of the co-product or by-product and stockpiling
these products on site;
and
(d)
customers of the co-product themselves having to obtain a waste
management licence in order
to utilise the product which is now to be
considered “waste”.
[39] According
to the applicants, complying with these onerous requirements
could
take at least one year. Obtaining a waste management licence
would cost approximately R500 000, depending on the
complexity
of the activity. In certain instances, a manufacturer or
consumer may require more than one waste management licence,
depending on the range of products, by-products and co-products as
well as the relevant waste management activity. There
are also
further onerous procedures that the applicants would have to comply
with before the waste management licence is granted,
and even then,
it is not guaranteed that the licensing authority would grant the
licence. The applicants state that the procedure
of obtaining a
licence is “not clear, simple or a fast procedure but rather an
onerous, burdensome, lengthy and expensive
procedure”.
They further assert that having to apply for a waste management
licence within 60 days would be impracticable,
if not
impossible. The repercussions for non-compliance are
significant; they include fines and imprisonment upon conviction.
[40] The
definition of waste under the Waste Act is without question
fundamentally important. This is especially true when
considering the fact that failure to comply with the requirements of
the Waste Act (most of which are inextricably linked to what
constitutes waste) carries severe consequences. Considering
these facts, the changes were not merely “semantic or
technical”, but rather material.
[41] There
are striking similarities between
SA
Veterinary
[17]
and
this matter. In
SA
Veterinary
,
the NA added the word “veterinarian” to section 16 of the
Medicines and Related Substances Act,
[18]
which
lists the medical professionals required to have a licence in terms
of that Act in order to compound and dispense medicines.
The NA
failed to conduct further public consultations when and after the
addition was made.
[19]
This Court stated that the insertion of a word that materially
affects a specific group is exactly the situation for
which the
constitutional obligation of public participation has been created.
[42] It
was further alleged that the amendment materially changed the
way
that veterinarians would be able to compound and dispense medicines.
Further, the amendment had the effect of bringing
an entire
profession under the control of legislation that had previously never
applied to it. This was not considered a
technical or semantic
amendment. There, this Court held that the amendment
constituted a material amendment to the Bill and
would have lasting
effects on the professional operations of veterinarians.
The
duty to facilitate public involvement
[43] It
is common cause that the proposed new amendments to the definition
of waste were first introduced, discussed and approved at a
meeting held on 15 June 2021 by the NCOP Select Committee.
It must be remembered that the Gauteng mandate proposed that the
definition of waste be simplified. The Department also made
further proposals at the meeting with respect to the Bill. The
public was not involved in this process. The public
was
furnished with the proposed amendments after the meeting on
15 June 2021. Those proposals were material –
materiality triggers the need for further participation and the
respondents did not call for further submissions from the public.
A
public participation process would have ensured that all
interested and affected parties had the opportunity to raise
their
concerns.
[44] The
standard for adequate participation is one of reasonableness.
Recently this Court in
Mogale
[20]
relying
on
Doctors
for Life
[21]
set
out the factors to be considered when determining whether public
participation was reasonable. These include:
“
The
nature and importance of the legislation and the intensity of its
impact on the public are especially relevant. Reasonableness
also requires that appropriate account be paid to practicalities such
as time and expense, which relate to the efficiency of the
law-making
process. Yet the saving of money and time in itself does not
justify inadequate opportunities for public involvement.
In
addition, in evaluating the reasonableness of Parliament’s
conduct, this Court will have regard to what Parliament itself
considered to be appropriate public involvement in the light of the
legislation’s content, importance and urgency.
Indeed,
this Court will pay particular attention to what Parliament considers
to be appropriate public involvement. What
is ultimately
important is that the legislature has taken steps to afford the
public a reasonable opportunity to participate effectively
in the
law-making process. Thus construed, there are at least two
aspects of the duty to facilitate public involvement.
The first
is the duty to provide meaningful opportunities for public
participation in the law-making process. The second
is the duty
to take measures to ensure that people have the ability to take
advantage of the opportunities provided.”
[22]
[45] This
Court in
New
Clicks
[23]
reiterated
that “what matters is that at the end of the day, a reasonable
opportunity is offered to members of the public
and all interested
parties to know about the issues and to have an adequate say.”
In the matter before us, there is
no evidence that any measures were
taken by the respondents to bring the public’s attention to the
impugned amendments.
Public views were simply brushed aside and
ignored. It is cold comfort for the applicants that there was
public participation
in various earlier stages of the Bill, if
the public was not kept informed of the developments during the later
stages of the Bill’s
progress. SAISI and FERTASA, on
behalf of the steelmakers and the fertilizer industry, sent various
letters to the Department
and NCOP asking for an opportunity to be
heard in light of the June 2021 developments. Sadly, their
requests fell on
deaf ears.
[46] The
impugned amendments were not subject to any further
public participation
process at either the national or
provincial level. The argument that further
public participation was not necessary
because the definition of
waste remained substantially the same throughout the process is
unsustainable. Parliament should
have interrogated, specified
and clarified the full import of the proposed amendments and afforded
the public an adequate opportunity
to comment or make
representations. That argument is untenable and misses the
vital point that it ushered in a new way in
which the concept of
waste was to be construed. Equally unsustainable is the
respondents’ argument that the changes
introduced by the
amendments sought to narrow the class of persons who bore obligations
under the Waste Act from all holders of
waste to a narrower category
of generators of waste. There was a significant change in the
allocation of legal obligations
between generators of waste and not a
mere textual adjustment.
[47] I
accept that Parliament and the Provincial Legislatures must be
accorded a significant measure of discretion in determining how best
to fulfil their duty to facilitate public involvement.
[24]
The NA, NCOP and the Provincial Legislatures should create conditions
that are conducive to the effective exercise of the
right to
participate in the lawmaking processes. In
Doctors
for Life
,
this Court stated that a fundamental part of the public participation
process is public access which “allows the public
to be present
when laws are debated and made”,
[25]
one
that ensures that the public is afforded the opportunity to “submit
representations and submissions”.
[26]
[48] In
this case, no effort was made to further engage the public and
afford
them an opportunity to submit their inputs on the impugned
amendments. The argument that it would be impractical and
cumbersome for a new public comment process to be initiated every
time an amendment is made to a draft Bill is misconceived.
During the initial stages of the Bill, when amendments in the
respects now under consideration were superficial, members of the
public were invited to comment. It begs the question, why when
the proposed amendments became material, the public was ignored
and
brushed aside. This, in my view, tends to diminish the force of
the respondents’ argument. It was necessary
for the NA,
NCOP and the Provincial Legislatures to afford the public an
opportunity to submit inputs or comments on the impugned
amendments
given their serious and far-reaching consequences.
[49] In
facilitating public involvement, the relevant bodies (NA, NCOP,
Provincial Legislatures) must ensure that issues affecting the
public in relation to legislation under consideration are heard
and
considered by the public. There is no doubt that the
proposed amendments generated a lot of interest in the public
and, in
particular, the iron, steel and fertilizer industries. The
concerns of the public for further engagement were simply
ignored.
No legitimate basis was advanced as to why these processes were
dispensed with. I am accordingly satisfied
that, in all the
circumstances of this case, the failure by the NA, NCOP and
Provincial Legislatures to hold further public hearings
was not in
accordance with their obligations to facilitate public involvement.
In the result, the challenge relating to the
impugned provisions of
the NEMLA Act must succeed.
Conclusion
[50] Section
172(1)(a) of the Constitution mandates this Court to declare
such
failure by Parliament unlawful and invalid. The impugned
provisions must be declared unconstitutional and invalid owing
to the
procedural defects in their enactment. There is no compelling
reason to suspend the declaration of invalidity to give
Parliament an
opportunity to correct the defect. The impugned amendments have
not yet been brought into force and there is
no reason why the
President should be entitled to bring into force provisions that have
not been subjected to public participation.
It is my finding
that the declaration of invalidity will not lead to a regulatory
vacuum as the preamendment (that is, the
current) definition of
waste remains in force and there will be no lacuna in the
legislation. In its current form, the impugned
provisions
cannot be allowed to stand and must be set aside forthwith. If
Parliament wishes to proceed with the impugned
provisions in their
current form, there is no reason why public participation would need
to be a lengthy exercise.
Order
1.
It is declared that Parliament has failed to comply with its
constitutional obligation to facilitate
public involvement in terms
of sections 59(1)(a) and 72(1)(a) of the Constitution in respect
of the following provisions of
the National Environmental Management
Laws Amendment Act 2 of 2022:
(a)
The amended definition of “waste” in section 61(k);
(b)
The new definition of “commercial value” in section
61(c);
(c)
The new definition of “trade in” in section 61(j); and
(d)
The transitional provision in section 88.
2.
The said provisions are accordingly declared invalid and
unconstitutional.
3.
The first and second respondents are directed, jointly and severally,
to pay the applicants’
costs, including the costs of two
counsel.
For
the Applicants:
G
Marcus SC, C McConnachie and Z Raqowa
Instructed
by
Bowman
Gilfillan Attorneys.
For
the First and Second Respondents:
N Maenetje SC,
N Muvangua and N Stein
Instructed
by
State
Attorney.
[1]
This
section provides that “[o]nly the Constitutional Court may
decide that Parliament or the President has failed
to fulfil a
constitutional obligation”.
[2]
Section
59(1)(a) provides that the National Assembly (NA) must facilitate
public involvement in the legislative and other processes
of the NA
and its committees. Sections 72(1)(a) and 118(1)(a) contain
similar provisions relating to the National Council
of Provinces
(NCOP) and the Provincial Legislatures.
[3]
2
of 2022.
[4]
59
of 2008.
[5]
Minister
of Environmental Affairs v ArcelorMittal South Africa Limited
[2020]
ZASCA 40.
[6]
Id
at para 2.
[7]
36
of 1947.
[8]
AMSA
above
n 5 at para 41.
[9]
Doctors
for Life International v Speaker of the National Assembly
[2006]
ZACC 11
;
2006 (6) SA 416
(CC);
2006 (12) BCLR 1399
(CC).
[10]
South
African Parliament “Chapter 5 Public Participation Model”
at para 5.3.1. Available
at:
Parliament_Public_Participation_Model.pdf
[11]
Id.
[12]
Doctors
for Life
above
n 9 at para 235.
[13]
The
amended definition of “waste” in section 61(k).
[14]
The
new definition of “commercial value” in section 61(c).
[15]
The
new definition of “trade in” in section 61(j).
[16]
Clause
88 of the “F” version of the Bill contained a
substantially similar provision.
[17]
South
African Veterinary Association v Speaker of the National
Assembly
[2018]
ZACC 49
;
2019 (3) SA 62
(CC);
2019 (2) BCLR 273
(CC).
[18]
101
of 1965.
[19]
SA
Veterinary
above
n 17 at para 46. This Court held:
“
In
summation, the insertion of the word “veterinarian” is a
material amendment to the Bill. This amendment was
made by the
NA without facilitating any public participation on this aspect.
This clearly falls short of the requirements
in
section 59(1)(a) of the Constitution. Further, the NCOP,
through the PLs, failed to properly facilitate public
participation
due to the exceptionally short notice periods that they gave before
public hearings, and the failure to invite
specific comment from
members of the veterinary profession. Consequently, the
insertion of the word “veterinarian”
was also done
contrary to sections 72(1)(a) and 118(1)(a).”
[20]
Mogale
v Speaker of the National Assembly
[2023]
ZACC 14
at
para 34.
[21]
Doctors
for Life
above
n 9 at para 127.
[22]
Doctors
for Life
above
n 9 at paras 128-9.
[23]
Minister
of Health v New Clicks South Africa (Pty) Ltd
[2005]
ZACC 14
;
2006
(2) SA 311
(CC);
2006
(1) BCLR 1
(CC)
at para 360.
[24]
Mogale
above
n 20 at para 34.
[25]
Doctors
for Life
above
n 9 at para 137.
[26]
Id.
sino noindex
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