DTIC said the response to the draft demonstrated the strength of public participation in policymaking.
Trade, Industry and Competition Minister Parks Tau has withdrawn draft National Credit Act amendment regulations that listed educational institutions as originators of credit information.
The Department of Trade, Industry and Competition (DTIC) announced on Thursday that Tau’s decision followed “an overwhelming response, comprising more than 20 000 submissions” received even before the closing date for public comment on 12 September.
“The vast majority of the responses were opposed to the proposed regulations,” the department said.
The draft regulations, published in the Government Gazette on 13 August, would have compelled schools, colleges and universities to report credit-related information to credit bureaus, a move that sparked an uproar from civil society, parents and student organisations.
‘Robust nature’
DTIC said the response to the draft demonstrated the strength of public participation in policymaking.
“This process has once more demonstrated the robust nature of South Africa’s democracy where the public is able to engage with government in an open and transparent manner,” the department stated.
Tau said the department would return to the drawing board to ensure students are protected from harmful credit practices without discouraging access to finance.
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Focus on student protection and MSMEs
“Minister Tau has committed to undertaking a process which will consider the changes that are required to enhance the protection of students, while continuing with efforts aimed at improving access to finance for MSMEs [micro, small, and medium enterprises] in order to plug the credit funding gap that currently exists,” DTIC said.
Tau added that the department would consult widely before drafting any new regulations.
“Minister Tau has also committed to engaging relevant stakeholders in order to clarify this process further and allay any fears with respect to the outcomes of this process,” the department said.
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Part of broader youth initiatives
This comes a few hours after Deputy Minister in the Presidency Nonceba Mhlauli said the government was working to ease young people’s financial burdens, particularly around education, while presenting progress on the Presidential Youth Employment Initiative (PYEI).
Mhlauli said government departments were coordinating to ensure young people have better access to opportunities and are not penalised unfairly by blacklisting or bad credit records.
NOW READ: ‘No new regulation blacklists students,’ says Deputy Minister in the Presidency
