Honourable Deputy
Minister of
Higher Education and
Training, Mr
M Manana, MP Speech to be delivered at the Energy and Water SETA Skills Summit
Saldanha Bay, Protea Hotel
Tuesday, 16 March 2015
Programme Director
Saldanha Bay Executive Mayor, councilor, Mr Francois Schippers
Energy & Water SETA (EWSETA) Chairperson and Board Members
Chief Executive Officer of the EWSETA
Northlink TVET College Principal, Mr Leon Beech
West Coast TVET College Principal, Ms Jooste- Mokgethi
All Stakeholders present
Distinguished Guests
Ladies and Gentlemen
I am honoured to participate in this occasion of the Energy and Water SETA (EWSETA)
Skills Summit in Saldanha Bay. I would be happier, Programme Director, if we have
involved more stakeholders with an interest in growing our economy and ensuring that the
skills required by our economy are provided. You are holding this summit in one of the most
beautiful areas in this province, which is bordered on the west by the Atlantic Ocean, in the
north by the Bergrivier Municipality and in the East by the Swartland Municipality, all
within the West Coast District Municipality.
According to the 2011 Census, Saldanha Bay alone had a total population of 99 193. The
unemployment rate in the West Coast District was at 9.8% in 1996, which increased to 13.8%
in 2001 and 14.5% in 2011.
This upward spiral of unemployment must concern us here today, especially in the light that
this summit is in the Saldanha Bay municipal area and the Industrial Development Zone
Project is within the West Coast district.
When the President launched the Saldanha Bay Industrial Development Zone (IDZ) he
emphasized that this project signals the beginning of economic development in this region
and in the country. Amongst others, the Industrial Development Zone must facilitate job
creation by way of industrial investment in the Saldanha Bay municipality and surrounding
areas within the West Coast district.
Our own National Development Plan (NDP) directs that we must grow the economy with an
average of 5% per annum, whilst the New Growth Path (NGP) predicts economic growth
between 4 and 7% per annum. At the centre of economic growth as directed by the NAtional
Development Plan, is fighting unemployment, poverty and inequality and that by 2020
unemployment must be reduced to 14% and in 2030 to 6%. This implies creation of more
than 11 million new jobs by the economy in the country.
The National Development Plan further states that, whilst the achievement of the objectives
of the plan requires progress on broad fronts, three priorities stand out:
•
Raising employment through faster economic growth,
•
Improving the quality of education, skills development and innovation, and
•
Building the capacity of the state to play a developmental, transformation role.
As the ANC led government we do admit, as we are not naïve but alive to challenges facing
our country,
that South Africa has one of the highest youth unemployment rates in
comparison with countries of similar economies. In 2014, one in every three (32, 2%) young
people aged 15–24 years were not in employment and not in education or training (NEET).
This proportion (the NEET rate) was higher among young women at 34, 5% than among
young men (29, 9%). In our own ANC Mangaung Conference, a resolution on Social
Transformation noted that, “employment projections show that even if the average annual
growth rate were to rise to 5%, unemployment amongst 15-24 year olds would be 44% and
31% by 2020 and 2030 respectively, in the absence of special interventions”. This resolution
continues by saying that “we must ensure that our programmes and policies should focus
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on developing skills that are required by the economy so that the youth can become part of
the mainstream economy”.
You will agree with me that as a developmental state we have a significant and active role to
play in our skills development agenda. This agenda cannot be outsourced to the market
forces, whilst acknowledging the role that should be played by the market forces, as an
important actor in skills development in our country.
I am indeed impressed that feasibility studies for the Industrial Development Zone Project
involved a high level overview and analysis of economic development and employment
trends, including a consideration of national and sector growth and development strategies;
particularly those related to the national economic and development strategies namely the SA
Human Resources Development Strategy, the National Skills Development Strategy (NSDS)
III and those related to the Industrial Policy Framework, innovation and technology and
Rural Development.
This Summit, therefore, Programme Director, is an opportunity to answer to the question of
supplying the requisite skills that we require in a collaborative manner. The availability of
skills is a requirement to boost the economy, not exclusively for this municipal area, but also
for the district, the province and the country at large. We need more skilled workers and a
sufficient pipeline of skills, especially amongst our young people.
This is one of the
transformational and developmental imperatives of the National Skills Development Strategy
(NSDS III).
I have learnt from the Statistics SA National and Provincial Labour Market: Youth,
Quarter 1: 2008 to Quarter 1: 2014 report as released on the 5th of June 2014 that adults
dominate employment in skilled occupations. In 2014 adults accounted for 68.3% of skilled
occupations whilst youth accounted for 31.7%.
statistics at this level.
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We need to openly engage with these
I am happy, Programme Director, with the aligning of the skills development interventions
in the Industrial Development Zone project with the National Skills Development Strategy
(NSDS III), which is the guide for skills development in the country. this has been agreed by
all social partners such as Organised Business, Organised Labour, Community Constituents,
and Government. I am therefore aware that the Industrial Development Zone (IDZ)
interventions will directly address NSDS III goals, which will include but are not limited to:
•
Increasing access to occupationally-directed programmes; the rollout is planned to
result in an estimated 1 148 artisans qualifying in various trades within the scope of
the project,
•
Partnerships between DHET, SETAs, employers, private providers and public
Technical and Vocational Education and Training (TVET) colleges are resulting in
increased capacity to meet industry needs throughout the country. The proposed
partnership between Better Best as the project implementing agent, workplace host
employers and TVET colleges will result in a mechanism that will encourage the
natural transport of skills and experience.
These partnerships are key in skills development as emphasized in our own White Paper for
Post School Education and Training, that was approved by Cabinet on the 20th November
2013 and published by the Minister of Higher Education and Training on the 16th January
2014. The TVET sector is key in providing these intermediate skills, that is why we must
start building the capacity of our colleges, through these projects. It is no coincident that the
Department is building twelve (12) new college campuses across the country, targeting rural
areas, because access is key in addressing skills development in our country, whilst we all
agree that there is a direct relationship between the quantity and the quality of provisioning.
As a country, we know which skills we require. The Department has made it easier, after
extensive consultation with various stakeholders both in the supply and demand value chain,
by publishing the list of “Occupations in Demand”, on 4 November 2014. This list of
occupations in demand took into account various sources which include, amongst others, the
Report of the Joint Initiative on Priority Skills Acquisition (JIPSA) published by the
Presidency in 2010, the Scare and Pivotal Skills Lists (2013/14) compiled by SETAs, the
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Scare Skills List compiled for Strategic Integrated Projects (SIPs) by the Department in
2013, the New Growth Path, Industrial Policy Action Plan, the National Development
Plan, the Human Resource Development Strategy for South Africa and many other
research papers and reports from various industry players both in the private and public
sectors.
So, ladies and Gentlemen, we need to act. We cannot continue being in planning and
research mode as a country. I have seen some of the skills that are required in the Industrial
Development Zone, whether in the areas of Oil and Gas industries, Renewable Energy
and Production Industries, Maritime or the Steel Production and Manufacturing
industries, include Electrical, Welding, Diesel Mechanic, Petrol Mechanic, Boiler
Making and Rig Operators.
We need therefore, Programme Director, to use this augurs event to evaluate the progress
we have made since the President launched the Industrial Development Zone project, what
are the bottle necks, if any, and how do we unblock those bottle necks, I have no doubt that
men and women converged here over these two (2) days are the best people to drive our skills
revolution in this project. I am looking forward to receive the outcomes of this Summit.
Programme Director, let me thank all who are involved in and support the 2015 Energy
and Water SETA Skills Summit, such as the Western Cape Government, Northlink
TVET College and West Coast TVET College, and finally all distinguished guests, who
have made it possible for this summit to be what it is.
I wish you all the best with this project and I thank you.
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