NATIONAL ASSEMBLY FOR WRITTEN REPLY QUESTION NO 1225 DATE REPLY SUBMITTED: TUESDAY, 24 MAY 2011 DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: FRIDAY, 15 APRIL 2011 (INTERNAL QUESTION PAPER NO 11 – 2011) Mr S C Motau (DA) asked the Minister of Transport: (1) (a) How does the SA Maritime Safety Authority (Samsa) intend to create employment opportunities in the 2012-13 financial year, (b) what jobs will be created and (c) what are the expected costs involved; (2) whether Samsa has set any targets in this regard; if not, why not; if so, (a) what are the details of these targets, (b) how were they derived, (c) what are the time frames attributed to these targets and (d) what (i) processes, (ii) procedures and (iii) mechanisms exist to ensure that these targets are met? NW1363E REPLY: The Minister of Transport: (1) (a) The core job creation programme of the South African Maritime Safety Association (SAMSA) entails attracting commercial vessels to the South African Ship Registry. Aspects driving the ship registry are ownership, mortgage ranking, health of seafarers, tonnage tax and other incentives. This initiative will not only ensure creation of employment opportunities, but will secure the supply of key national items like fuel or oil for the proper functioning of the economy. SAMSA also realises that poor education and skills are critical impediments to job creation in the sector and to the country at large. SAMSA, in recognition of this imperative, has initiated a cadetship programme in partnership with the South African Maritime Training Academy and six shipping lines. Through this programme, SAMSA aims to increase the number of secured berths for cadets. This initiative will equip the maritime sector with the means of meeting the current officer and ratings shortage in the country and globally. The facilitating mechanism in the programme is the subsidising of the cost of berths with public funds through SAMSA. Other targeted maritime training and development areas are the establishment of a network of high schools offering maritime subjects in all 8 port cities, expansion of the Further Education and Training colleges (FET) and Universities maritime courses. This should create indirect jobs for additional lecturers, instructors, private trainers, et cetera. However, with the long-term policy objective of growing the sector and elevating South Africa‘s ranking as a maritime nation, more may have to be done to increase not only the capacity of training institutions to supply cadets, but more critically the capacity of the system to berth cadets in order for them to qualify as certified officers, hence, the need to attract commercial vessels to the national flag. (b) It is anticipated that the National Ship Registry and the cadetship programme will create direct employment opportunities for officers and ratings such as deck engineers. Both programmes and other skills development initiatives also imply opportunities for ancillary support services. In this regard, many indirect employment occupations will be created. The following table summarises the type of occupations to be created in the maritime sector: Industry Shipping (National Ship Register) Maritime Port and Auxiliary Services Training Institutions Public (SAMSA) Type of occupation Navigation Officers Engineers Ratings Artisans Naval Architects Ship and Boat Repairers Ship and Boat builders Hydrographers Marine Attorneys Maritime Economics Marine Financiers Maritime Technologists Hospitality officers (Chefs, Stewards, et cetera) Lecturers/Trainers/Assessors Administration staff Management Ship and Boat Surveyors Inspectors Maritime Security Environmentalists (c) (2) National ship register - R300 000 in 2011/12. Cadetship programme R6 million in 2011/12. High Schools and expanded maritime courses – R670 000 in 2011/12. Public (SAMSA) R18 million per annum of which about R12 million is for Inland Waterways Inspectorate. (a), (b) and (c) SAMSA aims to establish a National Ship Registry of 300 trading vessels by 2025, initially targeting the 1990 levels of around 75 vessels to the South African Registry by 2018. It is projected this will create direct employment opportunities for 3 000 officers (Marine Navigators and Engineers) and about 15 000 ratings (non-officers) seafarers. This amounts to about 480 new officers per annum over the next 7 years. On average, a vessel requires approximately 40 local people (20 people for each shift that takes place). To reach this target implies an equal amount of seafarers needing to be trained and available in South Africa. It is also documented that each job at sea provides an economic multiplier factor of 8 to 10 shore-based support jobs which implies this development will provide many employment opportunities ashore. (d) (i), (ii) and (iii) South African Ship Registry Programme SAMSA was instrumental in the establishment of the coordinating forum – the Maritime Economic Development Policy Cluster led by the Department of Transport (DoT) and is working in conjunction with other government departments, such as Trade and Industry, National Treasury, Justice, Labour, Public Enterprises and Home Affairs and development finance institutions, such as the Industrial Development Corporation and the Development Bank of Southern Africa to ensure that the National Ship Registry objectives are realized. South African Sea Cadetship Programme The Sea Cadetship Programme is already in the implementation phase, with an initial intake of 18 cadets placed in April 2011. SAMSA aims to make annual placements, commencing with 140 officer cadets (and 560 ratings trainees) by the end of 2011, rising to 250 officers (and 1 000 ratings trainees) by 2014, and reaching 480 officers (and 1 920 ratings trainees) placed for every fiscal year. Thus, the successful implementation of the MoU between SAMSA, the Seafarer Recruitment/Placement Agencies and shipping lines is vital. Additional government funding is also critical in order to sustain the initiative. SAMSA has also entered into MoUs with two placement agencies already, pledging about R6 million to each for cadets placed in terms of the Service Level Agreements and Contracts of Agreement. Maritime High Schools Network Programme SAMSA is in the process of concluding Cooperation Agreements with relevant provincial government departments (e.g. Eastern Cape and KwaZulu-Natal Departments of Education) to ensure the establishment (in some instances revival) of Maritime High Schools. For the 2011/12 financial year, SAMSA and the Eastern Cape Provincial Government jointly funded and placed the initial intake of Grade 10 learners in Simon’s Town, who will return to the Eastern Cape as senior learners when the Province launches its own Maritime High School in 2012/2013. The target is a network of High Schools offering maritime studies in Nautical, Maritime Economics, Maritime Hospitality (Cruise Industry focused) and Fishing, by 2014 as follows: 1 in the Northern Cape, 1 more in the Western Cape, 2 more in KwaZulu-Natal and 2 in the Eastern Cape. Therefore, successful implementation of such MoUs is very important. National Schools Cadetship Induction Programme SAMSA has undertaken to resuscitate the floundering and mothballed Sea Cadetship Programme aimed at learners at basic education levels operating throughout the coastal and inland provinces, in partnership with the SA Navy. The programmes serve as a maritime awareness for children as young as 13 years until finishing school level (Grade 12). Inland Waterways Boating Safety Programme SAMSA is involved in promoting and enforcing inland waterways boating safety. This includes campaigns on boating safety awareness. The waterways lie in every province and district municipality. The programme will create about 50 direct new SAMSA jobs and 900 municipal safe boating jobs (at about 60% of municipalities, employing 3 employees and the rest 1 person each to promote safe boating), with manifold indirect job opportunities created.