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TUESDAY, 07 MAY 2013
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PROCEEDINGS OF THE NATIONAL ASSEMBLY
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Members of the National Assembly met in the National Assembly at
10:05.
House Chairperson Mr C T Frolick, as Chairperson, took the Chair and
requested members to observe a moment of silence for prayers or
meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.
APPROPRIATION BILL
Debate on Vote No 15 - Basic Education:
The MINISTER OF BASIC EDUCATION: The hon Chair, hon members and
colleagues, distinguished guests, ladies and gentlemen, we thank you
most sincerely for this debate on Vote 15: Basic Education. Fellow
compatriots, I am humbled by your support. As men and women of South
Africa, you have indeed nurtured and jealously guarded children’s
constitutional rights to education like the robin that lays and
shields its eggs over time. It takes honesty, maturity, clarity of
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purpose and hard work to build the new, equitable and uniform
national system of education that is envisaged in the progressive
South African Schools Act of 1996.
Today, we stand before this House to account and seek a fresh
mandate for the 2013-14 programme on the strength of observable
advances we have made, with the nation, over time, to build a better
education system for a better life for all. The overall budget for
2013-14 for the Department of Basic Education stands at
R17,592 billion. Last year, it was R16,344 billion. This is an
increase of about R1,248 billion, which confirms government’s
commitment to education. The budget allocation for provincial
education departments stands at R173,454 billion. It will reach
R199 billion in 2015-16. In this budget, Umalusi is allocated
R97,6 million in 2013, which will reach R112,7 million in 2015-16 to
cover its expanded mandate.
The Kha Ri Gude programme, which is one of our most successful
programmes, receives R549,7 million. This is a mass literacy
campaign which has enabled us to reach 2,9 million adults. To this,
we add R59,2 million allocated to the Expanded Public Works
Programme, EPWP, and Kha Ri Gude, which has made a contribution to
job creation by recruiting and training young volunteers. The Kha Ri
Gude volunteers comprise of 44 monitors, 203 co-ordinators, 3 703
supervisors and 38 000 educators, including 250 helpers for blind
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volunteers. In this way, our department has contributed to the
government’s effort to create jobs.
Chair, on the question of improved quality of basic education, the
building blocks for a high-performing system are in place. Improving
performance across the system is a key objective of the education
sector plan. The key outputs of the Action Plan are consistent with
the priorities of the National Development Plan, NDP. Once Cabinet
has finalised the Medium-Term Strategic Framework, which is aligned
to the NDP, we will revise our plans and priorities accordingly.
Hon members, he who has a plan is a million times better than the
one who pokes holes in the plans of others, those without a plan.
[Interjections.] We are attending to learner performance while
addressing those systemic issues that are making it difficult for us
to crack the system. We have been allocated an amount of R25 million
for this year, which I will speak to later. We know the challenges.
We are therefore better placed to improve quality and efficiency
while consolidating the gains in access and equity.
We can proudly say South African’s school participation is nearly
100% for the basic compulsory band, which is a band for the 7- to
15-year age range. Reports also show there are fewer out-of-school
children, and those who have dropped out. According to household
surveys from Statistics SA, we have 80 000 fewer children who were
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out of school as compared to 2011. We plan to do more to improve
retention and post compulsory schooling.
Census 2011 also gave us good news for education. It said the
proportion of the population without any formal schooling has
decreased twofold from 2001 to 2011. With education comes critical
skills, and out of these come great prospects for absorption in the
labour market, great entrepreneurship, leadership and economic
opportunities. Through government’s antipoverty strategy, we are
progressively removing obstacles inhibiting access to equal, quality
education for all children, across the race, gender and class
divide. Over eight million children in more than 80% of our schools
received free education in non-fee paying schools.
The conditional grant for the National School Nutrition Programme
has increased by R266 million to R5,173 billion. It will reach
R5,7 billion in 2015-16. Our HIV and Aids Life Skills Education
Conditional Grant has been allocated R213 million. We will continue
to improve access to quality early childhood development, ECD. In
2011 monitoring results show South Africa has improved access from
39,3% to 84,8% of Grade 1s. All in all, we have 12 433 million
learners in over 25 000 schools. In line with the drive to build an
equitable system, in 2013, we are prioritising inclusive education.
Chair, I have invited one of our learners with special needs. I will
refer to her later. She’s a young girl who uses her feet to do
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everything, to write and to walk. I will introduce her at the end of
my speech.
Chair, our interventions are definitely bearing fruits. There is
progress on the four priority areas that we agreed on last year,
which is the Curriculum Assessment Policy Statements, Caps,
assessments, workbooks and infrastructure. You know that a major
setback was the time it took to complete, for instance, delivering
books to Limpopo last year. It was very unfortunate. There’s
evidence of improved learner performance, even in those districts we
had said were underperforming, showing that our interventions over
time are bearing fruits. We’ll therefore sustain our focus on these
four priority areas. The “Triple Ts” will remain on the agenda of
quality teaching and learning.
Hon members, you did witness sustained improvement in matric exam
results. This is a result of systemic interventions for
strengthening and raising performance at all levels of the system.
Just to remind you, the matric pass rate climbed to 73,9% in 2012
and I’m quite confident that our target of 75%, is well within
reach. We are also on target to deliver 175 000 university entrants
by 2014. In 2012, the number of Grade 12 learners who qualified for
bachelor’s degrees rose to 136 000 learners. Members, do you know
that under this government, the number of learners who became ready
for bachelors level studies almost doubled over the last 12 years,
from around 70 000 to 136 000? [Applause.]
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With the number of passes in matric increasing and the number of
passes in physical science increasing, we have, in line with
President’s call, established a maths and science task team to help
us identify challenges in this area. For that purpose, the Dinaledi
Schools programme, which is supposed to deal with maths and science,
has been allocated R105 million. We are very encouraged by the
recent Trends in International Mathematics and Science Study, TIMSS,
which bears testimony to our gains. I think you have to listen quite
carefully. In the last TIMMS report, South Africa’s improvement in
mathematics, of 67 TIMSS points, between 2002 and 2011, or seven
points per year on average, is among the steepest seen by any TIMSS’
participant, even higher than Brazil. [Applause.]
We are leaving nothing to chance. We’ve completed a detailed
diagnostic analysis of NSC results in terms of key subjects. This
has identified key subject deficiencies which will become our target
for interventions this year. The ministerial committee on the
National Senior Certificate, NSC, will, inter alia, investigate
standards and promotion requirements of the NSC, including the
matter of matric results publication, a matter raised passionately
with me by the Congress of South African Students, Cosas.
Moving to the curriculum, as stated last year, our continued focus
is on the phased implementation of the revised Curriculum and
Assessment Policy Statements, Caps. In 2013, we moved to Grades 4
and 6. Grades 1 to 3 were covered this year. I am worried though
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about low levels of reading and writing in the Foundation Phase.
This has emerged in an audit of the provincial reading programme we
commissioned in February 2013. The audit report proposed the kind of
support we must give to teachers and learners because reading is at
the heart of learning.
This fact has also been confirmed by the
recent NEEDU report again, which we released last week Friday. The
Intermediate and Senior Phases of Caps were distributed in 2012 to
prepare for implementation in 2013 and 2014 respectively. The Senior
Phase of the Caps orientation programme for provinces started in
March, and will run until 24 May 2013. The Grade 12 Caps orientation
was conducted in all provinces between February and April 2013. We
are a department at work and hard at work. [Applause.]
An amount of R220,9 million is allocated for the recapitalisation of
these schools to improve facilities and equipment. This will assist
in addressing skills shortages and joblessness. The sign language
curriculum has been completed and is being piloted in two schools in
the Western Cape and Gauteng. We believe good grounding in a
learner’s home language is essential. So, in 2014, a new policy will
come into effect mandating the learning of an African language in
all schools. This builds on work we’ve done to improve competencies
in African languages. [Applause.] We list among successes the
progressive development of the National Curriculum Statement for
Grades R to 12, a milestone since the days of the racialised,
fragmented education department.
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Using Annual National Assessments, ANA, to monitor levels and
quality of learning outcomes has taken root. We now have empirical
evidence to use in planning further interventions. In 2012, we
administered language and mathematics tests to more than 7 million
learners in Grades 1 to 6 in more than 20 000 schools. We are told
no country has done it on the scale that we have done. [Applause.]
The results of this ANA tests show that while learner performance in
literacy varies from satisfactory to good, the same cannot be said
about performance in numeracy, particularly in Grade 9. If you
recall, there was a huge outcry when we again bravely published
results around our Grade 9 numeracy.
The particularly low learner performance in mathematics in the
Intermediate and Senior Phases justifies the steps we have already
taken to focus on teacher professional development and provision of
learning and teaching support materials for the higher school
grades. An allocation of R75 million to strengthen the existing
programme has been secured for 2013 and will reach R160 million in
2014-15.
Regarding workbooks, we have increased learner access to workbooks
and coverage to improve literacy, numeracy and, importantly,
reading. An allocation for the workbooks stands at R859 million. We
have provided workbooks to all learners in Grades 1 to 9. Through
savings from developing content in-house, we have expanded the scope
to cover Braille workbooks. Close to 24 million copies of Workbook 1
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were delivered to 23 000 schools in November 2012, for use in 2013.
By 2013 around 114 million full-colour national workbooks, which the
Australian Council for Educational Research has confirmed as high
quality, had been distributed to our schools. The feedback from the
surveys we conducted on workbook utilisation is also very positive.
In terms of national policy, it’s a key priority for every learner
to have access to a minimum set of textbooks and workbooks. In 2007,
according to SACMEQ results, coverage stood at 45% for literacy and
36% for maths – that is 2007. Our 2011 survey puts us at 78% for
literacy and 83% for maths. I must say, this is still unacceptable
because we say we want to have every learner with a book in every
subject. We have doubled our efforts but I do believe that we can do
more.
Hon members, prudence in the deployment of resources is key to the
national endeavour for equality and inclusive development and
growth. To address inequalities in education, we are therefore
mindful of economic disparities resulting from apartheid education.
This is a part of the rationale for centralising procurement. The
development of the national catalogue of textbooks for Grades 7 to 9
has commenced. As reported, the national catalogue for Grade 12 has
been completed and was made available to provinces.
Hon members, school infrastructure is an area of great concern,
which we have also paid serious attention to as a sector. Improved
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expenditure on infrastructure budgets, and the number of completed
projects in the last financial year, are indicators of progress.
More schools do receive water, sanitation and electrification and
many more continue to do so.
SIP 13 will also drive skills development and job creation. We want
to see synergy in infrastructure planning between national and
provincial education departments. The benefit would be schools that
are in areas where people live. Thus, we are finalising a
Comprehensive Infrastructure Investment Plan. We’re also working on
partnerships with Department of Labour and Department of
Correctional Services for the supply of school furniture. We have
developed plans to close once and for all the chapter of potholes
and hanging ceilings in our classrooms. The infrastructure
allocation for 2013 stands at R6,30 billion. For the provincial
allocation, it will increase to R10 billion in 2014. An amount of
R1,9 billion will go to the Schools Backlog Grant, called
Accelerated Schools Infrastructure Delivery Initiative, Asidi, run
by the national department.
It’s also important to share Asidi-related challenges. We had
challenges with the contractors that were used by our service
provider. Because I am running out of time, I will not tell you or
go into details as to which schools and how many schools are going
to be done. I think I will do that through the committee.
[Interjections.] We will provide sanitation to a number of schools
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and we want to thank the many South Africans who supported us in
providing and maintaining school infrastructure. Schools in the
Eastern Cape will never be the same again. Those who had seen the
new schools we built in the Eastern Cape will agree ... [Applause.]
... they are state of the art institutions with fully-furnished
libraries, laboratories and administration blocks. [Interjections.]
By the end of May, we will hand over the completed schools to the
province so that they can pass them on to the people officially. If
we say we are going to finish mud schools by 2015, it means that in
2014 we will still see a mud school – if your logic works. If we say
the project finishes in 2015, it means in 2013-14 expect one. What
we need you to judge us on is what we are doing towards 2015.
Quality teaching is high on our list of priorities. Allow me
therefore to repeat President Zuma’s consistent call to teachers to
be in school, in class, on time, teaching at least 7 hours per
school day. President Zuma had said in the 2013 state of the nation
address, that education is an essential service. Its health depends
on collective efforts and bargaining in a climate that is conducive.
That’s why we’ve engaged earnestly with organised teachers on
contentious issues, rendering it hard for the falcon to hear the
falconer. That is why it was very important for me that we should
find an amicable way to resolve the two month-long impasse we had
with Sadtu. The interest of the child will best be served where and
when there is uninterrupted harmony within the system, and between
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the key stakeholders. When we lose sight of this fact, and mere
instability is loosed upon the world, it is the child, the African
child in particular, who suffers the most. Accountability is
important and is of paramount importance.
We are on track with implementing the Integrated Strategic Planning
Framework. Through our Teacher Union Collaboration initiative,
teacher unions and their institutes implemented professional
development programmes covering areas in which teachers needed
support. It was reported that over 58 000 teachers benefitted from
this programme and we will continue that programme, because even
from the Needu report it is clear that it is quite essential that we
move with speed on the question of teacher development. We also want
to welcome the Presidential Remuneration Review Commission for the
public sector, with teachers as a priority.
We also would want to report on the thorny matter around teacher
laptops, that the department is currently working with the State
Information Technology Agengy, Sita, and National Treasury to
finalise implementation systems and processes, including modalities
of using a centralised procurement mechanism. This has been an
extremely frustrating matter but we are doing all we can to bring it
to finality. Funza Lushaka bursaries is receiving R839 million.
Regarding the Needu report, I want to say that last Thursday, we
received from its CEO, Dr Nick Taylor, the unit’s first national
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report for 2012 on the state of literacy teaching and learning. This
independent evaluation provides evidence to support our proposals on
the need urgently to remedy shortcomings in educational practice.
Concerning the Planning and Delivery Oversight Unit, which was set
up last year, we again can report proudly that we’ve made progress.
We have most of the schools coming out of dysfunctional situations.
For instance, Libode, headed by a very capable director, Dr Nuku,
registered an improvement which is almost 20%, and we are very proud
of that.
On strengthening better outcomes, we’ve also worked with our
districts to improve performance. We can also report that we’ve made
progress in terms of our interventions both in Limpopo and the
Eastern Cape. We will be announcing through our portfolio committee
the programme of education collaboration framework that responds to
the call made by the National Development Plan for intersectoral cooperation to improve educational outcomes working with various
stakeholders.
Before I close - I see I have 16 seconds - let me just acknowledge
my colleague, Deputy Minister Surty, the Chairperson of the
portfolio committee, the director-general and all his officials.
Just allow me to acknowledge and pay tribute to my special guest
today, who is Princess Kgosana Sithole, a 12-year-old from Tehillah
Christian School. Princess has overcome her challenges and she’s a
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very bright, positive young girl who uses her feet to do everything,
including excellent writing. [Applause.] I am not sure if she’s here
for us to see her. Where is MaSithole? [Applause.] Thank you very
much. She opens taps and everything else with her feet and writes
much cleaner and neater than most of us in the classroom. She is a
very brilliant and successful scholar.
Let me also acknowledge the presence of the former Deputy President,
Mrs Ngcuka, who also works very closely with us in this
collaboration that we are working on in education. I thank her very
much for coming. [Applause.] I also take this opportunity to thank
... [Interjections.] ... the Chief Whip here for the support that he
gives, and also acknowledge the presence of my mother and siblings,
who are also very supportive and who have come here. We thank you
very much. I knew it would hurt the opposition that we have made
progress and we have made peace with Sadtu members – they are back
in class. [Time expired.] [Applause.]
Mrs H H MALGAS: Chairperson, hon Ministers and Deputy Ministers, hon
members of the House, distinguished guests in the gallery, ladies
and gentlemen, under the leadership of President Jacob Zuma, both as
the President of our Republic and that of the ANC, and building upon
the achievements of the ANC since 1994, education has been a
declared Apex Priority for our country since 2009.
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If Verwoerd and his criminal apartheid regime of 1948 had said that
the black child must not study mathematics and no black worker must
become a skilled artisan, President Zuma had emphatically said that
the black child must indeed study and be competent in mathematics
and increase the production of new artisans, including black
artisans. President Zuma has not only said these things, but has led
from the front through leading concrete interventions in education
as part of inverting and destroying the Verwoerdian legacy. In 2009,
President Zuma decided to split the former Department of Education
into two. This was indeed a stroke of genius that is beginning to
bear fruit.
We are all aware that education is our hope for reducing and
eliminating inequality, unemployment and poverty. The ANC emphasises
the significance of education in the Freedom Charter of 1955. The
commitment was decisive and clear. The doors of learning and culture
should be open to all. As such, education has remained an Apex
Priority for our government since 1994. The ANC government has
opened doors of learning and, to date, still continues with the
commitment. After 19 years of democracy, the ANC is still holding
onto its commitment to improve the quality of education by building
upon its achievements and learning from its experience in government
since 1994.
However, we remain conscious of the challenges still facing our
people in our struggle to attain quality education for all. These
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challenges facing education in South Africa are well known. It is
not a secret. Let me point out that the ANC has taken upon itself
the task of making these challenges the substance of its debates,
discussions, conversations, resolutions, and plans from Polokwane to
Mangaung, in order to ensure that they remain in the mainstream of
our discourse of transforming society. Conference resolutions of the
ANC and President Jacob Zuma’s state of the nation address urge us
to look at some of the essential priorities on which we can agree,
including, but not limited to, issues of education, health, poverty,
and the safety of our children.
The ANC presented the National Development Plan, NDP, as the
embodiment of our shared set of objectives, a common vision for a
different South Africa. In line with this, we need to develop a
programme of essentials on which we can agree. The National
Development Plan commits us as a nation to accelerate progress,
deepen democracy, and build a more inclusive society. The NDP calls
on South Africans to translate political emancipation into economic
well-being for all. Most importantly, it strongly asserts that it is
up to all South Africans to fix the future, starting today.
These resolutions of the ANC with regard to our vision of schooling
are well represented in various policies of government. In our
assessment as the oversight body, the Portfolio Committee on Basic
Education has noted that the Department of Basic Education has drawn
up a clear policy map that serves as a sector compass towards
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addressing challenges facing the system. We have often noted the
efforts to align education priorities to the National Development
Plan. However, we have learnt that the output results of these moves
will depend on our understanding of education as a collective. There
is a need for systematic efforts, where outward success is not
measured by individual dominance, but by the contribution each and
every one of us is prepared to make towards the achievement of our
common goal. As a portfolio committee, our engagements in executing
the oversight mandate have taught us a lesson about education as a
societal endeavour that is strengthened by collective conviction.
We are considering the vote as we pride ourselves on being a nation
that has achieved and progressed on many issues with regard to basic
education. Over the years, government has progressively increased
our education budget to support all our policy initiatives.
Consistent and persistent efforts are being made to make education
structurally accessible to all who were previously disadvantaged or
who had limited access and, thus, to realise the ideal of compulsory
education. South Africa is on track to ensure universal access to
primary education. Equity in school funding has also improved
substantially. The ANC government has introduced numerous policytargeting policies, such as pro-poor funding in the form of no-fee
schools. Our Minister alluded to it and gave the number.
She also said that the 2013-14 budget has allocated funding for
equipment and utensils, because she spoke about the National School
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Nutrition Programme rolled out to quintile 1 and quintile 3
secondary schools. This will be progressively provided also to
primary schools to address the backlog. She spoke about government
that has extended its efforts and joined hands with private sector
partners to enhance the impact of the nutrition programme. We would
like to congratulate and applaud the department, as the ANC, on the
workbook project and the expansion of Grade R. We would like to
applaud the ANC government for initiatives that are positive and are
contributing to ensuring that all of our children complete the full
course of their schooling. [Applause.]
The Minister spoke about the Kha Ri Gude mass literacy campaign. She
spoke about the number of adults – 4,7 million – over the age of
15 years who have the opportunity to become literate and numerate.
From 2008 to 2011, this campaign reached 2,2 million adults. There
is no doubt that the ANC government is on track towards meeting the
Millennium Development Goals’ commitments with regard to 2015.
The Minister spoke about the Curriculum and Assessment Policy
Statements, Caps. She spoke about the mainstreaming of Caps. She
spoke about the Grade 12 teachers who were trained. The other issues
that were in our report from our oversight visits that we would like
to repeat, Minister, include the shortage of textbooks, challenges
regarding post provisioning, and the poor or non-existence of school
infrastructure. We are of the view that these issues are the
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lifeblood of quality learning and teaching. Therefore, we commend
you on resuscitating these issues in the 2013-14 budget.
Furthermore, the recent move by the Minister to set up a task team
to review the National Senior Certificate, NSC, curriculum, gives
confidence that we have taken a direction that will eventually lead
to success. The ANC is hopeful that the findings will go a long way
to assist government to streamline the NSC curriculum.
The ANC
applauds the Minister for the bold step she took. The National
Senior Certificate, as the Minister alluded to, is in its fifth
year. The ANC congratulates its government for achieving a pass rate
of 73,9% for 2012, which depicts an increase. It is the ANC
government’s view that more can be done.
As the Minister has encouraged our matriculants ...
... wil ek ook graag al ons matrikulante van 2013 voorspoed toewens
vir hierdie allerbelangrikste skooleksamen van hulle jong lewens.
Matriek is die fondament van verdere beroepsopleiding, en ek wens
die matrikulante net die beste toe vir hierdie jaar met hul
voorbereiding in hierdie verband. (Translation of Afrikaans
paragraph follows.)
[... I would also like to wish our matriculants of 2013 success in
this most important school examination of their young lives. Matric
is the foundation of further occupational training, and I wish the
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matriculants only the best with their preparation in this regard for
this year.]
With regard to the Action Plan to 2014: Towards the Realisation of
Schooling 2025, the Minister spoke about the results of the Annual
National Assessments, ANA. She spoke about the shortcomings but, as
the ANC, we are encouraged by the fact that the department’s plans
for 2013-14 are addressing these areas.
Chairperson, the issue of labour peace is at the centre of our
efforts to achieve quality education for all, and we would like to
congratulate the ANC, as the Minister mentioned, for brokering
labour peace between the department and the SA Democratic Teachers’
Union, Sadtu. [Interjections.] We urge all parties involved to
always make sure that labour peace prevails and that we are able to
work together, hand-in-glove, towards the vision of quality
education for all. What is important – and I am calling on the
educators in South Africa – when it comes to the teaching profession
is that it is a professional profession. At all times, we have to
remember that when we are in the streets or anywhere else, we are
the people that shape the minds of those little children. We mould
them, and there is a decorum that we, as teachers, should adhere to.
The ANC welcomes a host of interventions in the 2013-14 Basic
Education Budget Vote, which propose the strengthening of the
delivery of quality education, amongst others. I would like to
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single out a few. The Minister spoke about Grade R, and a
substantial amount was made available to expand the intake when it
comes to Grade R. However, we are acutely aware that the quality of
Grade R provisioning in disadvantaged schools remains an issue of
concern. Notwithstanding positive efforts by the Departments of
Basic Education and Social Development, interdepartmental coordination with regard to the provision of early childhood
development, ECD, education still needs to be enhanced. This is even
more important given the targets set by the National Development
Plan with regard to ECD provision. In this regard, we urge the ANC
government to take the lead in ensuring that these issues find a
place in the budget.
For four years, as the Minister mentioned, the President has been
calling for our teachers to be in class, on time, with textbooks,
teaching. [Interjections.] The ANC believes that ordinary teachers
should not need to be instructed in this. This should be the norm.
The ANC calls on all our teachers to ensure that our aspirations for
quality education for all are realised, as the ANC is of the view
that issues such as unauthorised teacher absence from school,
teachers being at school but not in the classroom, teaching,
insufficient curriculum coverage in a year, and insufficient and
inadequate assessment given to learners have no place in our
schools. The ANC government is committed to improving the
accountability of individual teachers. For instance, the discussions
at the Education Labour Relations Council on the Quality Management
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System are expected to be finalised before June 2013, and the
training of teachers is anticipated to follow soon.
President Jacob Zuma has reminded us that education remains a
societal issue and that we must take it more seriously and that we
must begin to appreciate the fact that all successful societies have
one thing in common: they invested in education. To this end, we are
delighted by the fact that the ANC-led government has located the
Quality Learning and Teaching Campaign at the centre of its
operations. We need to have every stakeholder in education actively
playing their role in making education a centrepiece of our
democracy. With regard to equalising allocations to no-fee schools,
the ANC government has committed that by 2013, all provincial
education departments will have equalised their provincial
allocations to schools.
Evidence from the oversight work in provinces reveals a huge
infrastructure backlog. However, we should all congratulate the ANC
government for devoting the bulk of spending increases over the
medium term to accelerating the delivery and improvement of school
infrastructure. Through our interactions with the national and
provincial departments, we have become aware that capacity, market
and provider constraints are the main challenges in the provision of
the improvement of school infrastructure. We have also observed that
underspending of infrastructure budgets continues in spite of the
huge need. People, don’t let me say which other province, besides
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the Eastern Cape, is ranked at the bottom. We are standing in this
province. We urge government and all affected parties to dedicate
special attention to these challenges. Given the scale of the
existing infrastructure backlog, it is our view that government
alone cannot overcome these challenges.
We would like to congratulate the Minister for declaring 2013 the
year of inclusive education. Flowing from this, government is
planning to train district officials on guidelines for full-service
schools and special schools. In addition, teachers will receive
training in specialised areas of visual and hearing impairment, as
well as the curriculum.
In conclusion, I would like to refer to the Auditor-General’s
report. [Interjections.] The Auditor-General’s report has shown that
some provinces continue to show signs of poor fiscal discipline. For
2011-12, we have to congratulate the Department of Basic Education
for receiving an unqualified audit report, with some provinces
receiving adverse audit opinions. [Applause.] The Auditor-General
stated that there is a lack of accountability, action plans that
were not specific in terms of indicators and targets, a lack of
fixed timeframes, delays in the filling of posts, shortage of
relevant skill sets, and limitations not addressed in financial
reporting systems.
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The Auditor-General further indicated that some provinces were
persistently incurring over, unauthorised, irregular, and fruitless
and wasteful expenditure. The ANC is encouraged by the fact that
government is addressing these discrepancies. However, we are of the
view that although some progress has been registered in this area,
we can still do more to enhance our compliance with the prescripts
of the Public Finance Management Act.
In conclusion, the 2013-14 Budget Vote ... [Interjections.] Yes,
second – we like making second conclusions. The 2013-14 Budget Vote
is an unequivocal response to our commitment to provide quality
education for all. From where we stand, we are confident that this
budget will yield positive spin-offs for our efforts of broadening
access to quality education for all. I would like to convey my
gratitude to the hon members of the portfolio committee – all of
them – and the officials for the co-operation, professionalism and
integrity projected by committee staff. I would also like to thank
the ANC research person, Comrade Ntiza. That is what brought us this
far and that provided a fertile space for the committee to work
together and achieve more. The ANC proposes that this Budget Vote be
supported. The topic of the speech was “Working together, we can do
more in the basic education sector”. I thank you. [Applause.]
Mrs A T LOVEMORE: Chairperson, Michelangelo is reported to have said
in the 1500s that, “the greatest danger for most of us lies not in
setting our aim too high and falling short, but in setting our aim
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too low and achieving our mark.” It is absolutely relevant to our
discussion today. In determining where our aim should be set, we
first have to determine why we do what we do. Why is the right to
basic education constitutionally enshrined? Why does the President
refer to basic education as an apex priority?
Why do we all
consider basic education fundamentally important?
Allow me to attempt to answer this very personally. My alma mater is
Kimberley Girls’ High School. Their mission statement is in the form
of a short rhyme:
We recognise each diverse soul,
And aim to educate the whole That every girl, in every deed,
May think, discern, adapt, succeed.
The school the Minister chose for her daughters is Parktown High
School for Girls. That school proudly states:
We have a vision of confident and courageous young women ready
and willing to meet every challenge on the way to achieving
their dreams.
A selection of mottos from our country’s top schools will emphasise
the point: Kearsney College, carpe diem; Roedean School, inspiring a
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life of significance; Leap Science and Maths Schools, educating
future leaders.
All of South Africa’s top schools focus squarely on why they
educate. They start with their vision of the adults their efforts
will produce. And so should you, Minister. When you do, you will
quickly realise that this is not a tick-box exercise for you or for
any official of your department. Unfortunately anyone reading the
department’s Annual Performance Plan would be forgiven for thinking
otherwise. Nowhere does the reason for your existence as a
department and the reminder of your accountability to every child
appear. There is a flagrant lack of commitment to producing
courageous, confident and capable adults.
Before we consider your plan for this year, let us pause for a
moment, and reflect on the current situation, which can best be
described as tragic. Only half of Grade 3 learners are literate; 13%
of Grade 9 learners achieve a 50% pass mark in mathematics; the
World Economic Forum ranks our maths and science education second
last in the world; the International Mathematics and Science Study
of 2012 ranks South Africa third last for mathematics; the
International Reading and Literacy Study of 2012 placed South Africa
fourth last; 20% of our schools have no or reliable access to water;
79% of our schools have no library; 80% of teachers of the deaf are
not fluent in sign language; 80% of teachers of the blind are unable
to read Braille; We have one of the world’s highest teacher
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absenteeism rates; 60% of Grade 6 teachers cannot pass tests their
learners are expected to pass; half of the children who start school
never finish; only 35% of children who start school ever receive a
Grade 12 certificate; more than 10 000 unqualified teachers are
employed in our schools.
The achievement so often proudly touted – access to schooling for
all our children – pales somewhat in significance when we consider
the immense failure in ensuring access to quality education in our
public schools. Now, is it acceptable, in light of the current
abominable situation in public education in this country, to take
incremental steps towards improvement? The answer has to be a
categorical no.
We cannot afford another year of producing Grade 12 learners who
predominantly have no connection with values and principles, who
cannot make career decisions, who are not capable of tertiary study
and who do not have the confidence or initiative to become
entrepreneurs nor are considered teachable by many prospective
employers. We need massive change in at least three senses: the
change must be massive in that much must change; the change must be
massive in that it must be radical; and the change must be massive
in that every one of the hundreds of thousands of children who need
that change must feel that change.
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Recall the earlier quote about setting the aim too low. Setting the
aim too low is exactly what your department has chosen to do. Not
taking any chances on being found wanting with respect to
achievement of outcomes. The only meaningful target – and that is
questionable – that has been left in the Annual Performance Plan is
the matric pass rate. Guess what, South Africa? The target is
exactly the same as last year, 74%.
Every other target that might be used to measure the immediate
effectiveness of the department has been removed. We have no targets
for the percentage of schools with a basic level of infrastructure,
access to a library or percentage of learners with a textbook for
each subject. The Minister’s verbal commitment was welcomed, but it
appears nowhere in writing. We have no target for the percentage of
Grades 3, 6 and 9 learners who are numerate or literate. We have no
target for the number of Grade 12 learners passing mathematics or
physical science or achieving bachelor’s passes.
We are very grateful to every school in South Africa, both
independent and public, that understands why it is educating
children. It is clear that the department needs, urgently, to
support these schools and to duplicate their efforts to benefit
every child. Successful independent and public schools understand
the concept of accountability. They are accountable to their
funders, whether they are corporate or parents. If the schools fail
to perform, fail to produce young adults who can utilise every
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opportunity to fulfil their potential, they lose their funding, and
they cease to exist. The crises in Limpopo and the Eastern Cape
demonstrate vividly the results of the collapse of accountability in
the education system.
These schools understand that children cannot develop skills and
talents without exposure to as wide a spectrum of resources as
possible. They are the breeding grounds for the Chad le Clos and
Lindiwe Mazibukos of the future. They would never have to be
instructed by a court to provide desks or textbooks or fill teacher
vacancies or to attend to unsafe structures.
These schools understand the need for positive role models. Teachers
are properly qualified, constantly developing and truly
professional. The thought of employing unqualified teachers, of
regularly absent teachers or of teachers using learners as pawns in
political battles would be absurd. The work ethic in these schools
is exceptional. Not something the department expects. It has yet to
take action against those Eastern Cape teachers who were on strike
for a full term last year.
I use this opportunity to welcome the apparently amiable end to the
South African Democratic Teachers Union, Sadtu, work-to-rule
campaign yesterday. Many matters raised by Sadtu, and they are real
matters that deserve attention, remain unaddressed, and, of course,
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the necessary action must still taken Sadtu striking members for
causing learners to lose out on learning hours.
Successful independent and public schools have principals who are
managers and visionary leaders. Sadtu has demanded - and the
department is about to agree sign off on - no management
requirements at all for appointment as a principal. These schools
appoint on the basis of expertise, not on the basis of union
affiliation. These schools understand that education is more about
learning than it is about teaching. These schools understand
discipline and a culture of continuous learning. They do not teach
the tests, they do not need to cram knowledge into winter and spring
camps.
Despite a budget of R17,6 billion and a slew of policies, your
education system does not work. If you believe it does, then I am
afraid that you are in denial. Admit failure. Until you do, you will
never make the massive changes that are required for this country to
succeed. Understand why you are educating; understand that education
is the foundation for the future, for every child, and for this
country. Commit to success and to removing every obstacle to
success. That will include removing Sadtu. Sadtu immobilises almost
any attempt to reprofessionalise teaching and provide quality
education.
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The Minister is in charge and has to make that unconditionally
clear. Massive change cannot happen overnight. But it cannot happen
incrementally either. And it will never happen if we accept plans
such as that presented by the department this year. I challenge the
Minister to surround herself with expertise and to publicly commit
to realistic but challenging targets to change our education
outcomes, to produce capable and courageous adults.
I challenge the Minister to gazette her commitments. The Minister
has mentioned her plan. We do not believe it to be bold enough. Be
bold. Call your policy South Africa’s plan for successful education.
The Minister cannot continue to fail our children and, directly, our
nation. I remind you, the greatest danger for most of us lies not in
setting our aim too high and falling short, but in setting our aim
too low and achieving our mark. [Applause.]
Mr W M MADISHA: Hon Chair, please permit me to start by referring to
section 29 of the Constitution, which provides as follows: Everyone
has the right to a basic education, including adult basic education;
and to further education, which the state, through reasonable
measures, must make progressively available and accessible.
Today’s budget proposal for basic education should be assessed on
whether the present government has achieved the above-named
constitutional right, and if not, what is it that the department is
going to do to ensure that it achieves it. To ensure that, yes,
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indeed, the constitutional rights of the children of our country and
the people as a whole are achieved.
Cope, just like millions of other South Africans, moves from the
position that our people have a right to basic education, and that
right occupies the highest position given the history of our people
and our country.
However, Cope is convinced that the present government has and
continues to fail to ensure that millions of South Africans get
access to basic education, despite the directive to the Minister
through section 5(a) of the SA Schools Act.
For example, in 2007, the Education Laws Amendment Act 31 of 2007
was passed to ensure that the norms and standards for school
infrastructure get implemented. Those norms and standards would
address, inter alia, the building and all improvements on classes
that were never implemented at all.
In 2008, the Minister published a set of national uniform Draft
Regulations Relating to Minimum Norms and Standards for School
Infrastructure. Even though the Minister had committed to urgent
implementation, there was no implementation. The same and even extra
promises were made in 2012 and early this year, but there has not
been movement. Instead, what we have is the rise in problems and
nondelivery.
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I will give examples. If we talk about school infrastructure, we
would say that hundreds of thousands of children drop out of school
and millions of those who remain in school receive education of a
poor quality. They sit in overcrowded and dilapidated classrooms and
lack textbooks. Many schools around the country need more classes
and rehabilitation.
In the Eastern Cape, for example, in the Alfred Nzo District
Municipality, there are more than 10 mud schools and in the Amathole
District Municipality, we have more than 30 mud schools.
Many schools in Limpopo are in a very bad state. Some lack roofs,
others are leaking, there are holes in the floor and windows are
broken. For example, at Jaji Secondary School, teachers and pupils
are forced to open umbrellas in classrooms when it is raining
because of the leaks in the roof. [Interjections.] You don’t know
about the place we are talking about. In Silverton in Limpopo,
children are taught under marula trees.
When the Treasury announced in their budget speech that R430 billion
has been allocated to social infrastructure, including schools, we
were hoping that they would inform Parliament about the R7,2 million
taken away from the School Infrastructure programme to replace mud
schools and to catch up on backlogs in school infrastructure. This
is because of the slow spending by both the department and the
Development Bank of South Africa, the DBSA, which was asked to
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implement the programme. This means that the gap in infrastructure
needs will continue to grow.
Many more schools will still lack access to safe drinking water,
basic sanitation and electricity. Many children, for many years to
come, will continue learning under the trees and in environments
that are not suitable for learning and teaching. The government, on
the other hand, will continue to make promises to improve education.
An antithesis, of cause, shall be the case. The budget deficit,
which is beyond a trillion, will continue to grow while government
expenditure is out of control to breaking point.
What about the textbooks? Textbooks are a fundamental resource to
both teachers and students. The timeous provision of textbooks
remains a problem in our country. Many schools in South Africa, for
example - again in Limpopo - in the Eastern Cape, in the Northern
Cape and in the North West are without the required textbooks in
this second term of schooling. Many other schools were given the
wrong batches of books.
In a survey conducted last month by Pondering Panda, it was found
that 54% of pupils countrywide did not have all the textbooks. This
lack of textbooks shows again that the quality of education in South
Africa is suffering tremendously, and that the education crisis is
sapping the education system’s energy and funds.
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Now there is this very bad thing that Cope is convinced about, that
the high levels of corruption add to the lack of access to school
material by pupils and teachers. I will give you an example. Yes,
the Limpopo textbook saga highlights the magnitude of corruption.
EduSolutions, which was reported to have links with President Zuma,
won a bid before the tender was published in the media and the
Government Tender Bulletin. A contract to the amount of R680 million
awarded to EduSolutions for textbooks, educational toys, science
kits and other materials for the 2011 school year is now under
investigation by the Special Investigative Unit. We need to follow
this because it is a major problem, and indeed the people of South
Africa continue to suffer as a result of this kind of corruption
that people are protecting here. [Interjections.] Not one, but four.
In the Funda Lushaka Bursary Scheme, there is no substitute for good
teachers. The expansion of primary enrolment has put enormous
pressure on the supply of teachers.
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon member, your time has
expired.
Mr W M MADISHA: Thank you very much. [Interjections.] [Applause.]
Four black bags, not only ...
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The HOUSE CHAIRPERSON (Mr C T Frolick): Hon member, will you please
leave the podium. [Interjections.] [Laughter.]
Mr A M MPONTSHANE: Hon House Chair, hon Minister and hon Deputy
Minister, 38 years ago, the National Cultural Liberation Movement,
now the Inkatha Freedom Party, was founded. At the time, the
political situation was paralysed, waiting for leadership, and the
IFP emerged to provide it. We are now in a similar situation of
paralysis and the education system shares a fair amount of this
paralysis, at the most important levels, including provincial and
district levels.
The ongoing power tussle between Sadtu and the Minister of Basic
Education is paralysing our education system. The work-to-rule
policy of Sadtu has only further crippled the system. The continued
politicisation of teacher unions is holding most of the department’s
policy choices and programmes to ransom. For example, for over four
years now, the department has been unable to have simple performance
agreements for principals and their deputy principals signed.
Competency tests for markers were abandoned at the last minute last
year because unions objected to it. This is simply unworkable. The
system is crying out for bold, decisive and accountable leadership.
Let me turn my focus to the immediate task before us. That is the
Budget Vote. This year’s budgetary allocation shows that government
is spending enough on education. The budget has increased from
R16,3 billion to R17,6 billion. The vexing question remains, though:
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Why are our children still taught so badly? Why are our children
still performing poorly in competitive forums? For instance, the
recent World Economic Forum ranked our learners at 142 out of 144
countries. That is very bad.
The bulk of this year’s budget has been allocated to programmes 4, 5
and 2. These allocations consist mainly of transfers to provincial
education departments, for them to address core priorities such as
infrastructure, the national school nutrition programme, curriculum
implementation and monitoring. However, the main challenge which has
continued to fail the Department of Basic Education is that some
provinces are still showing signs of poor fiscal discipline.
Last year, for instance, only the Free State, Gauteng and Mpumalanga
received unqualified reports. The Eastern Cape and Limpopo received
disclaimers. Whilst the picture has somehow improved this year,
instances of irregular, fruitless and wasteful expenditure still
persist in most provinces. Therefore we need to put in place more
mechanisms that will assist provinces to improve their financial
management capacity and their internal controls, especially the
serious weakness so prevalent in leadership.
The department’s monitoring and delivery unit must play a more
effective role in this regard. Our education system will continue
struggling if we do not get the basics right. Teachers are at the
centre of our struggling school system. Government as a whole has
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acknowledged that the system lacks sufficient quality teachers.
According to Umalusi, many teachers who mark matric papers cannot
apply marking tools consistently because their subject knowledge is
often poor and inadequate. Research findings of the CDE have
indicated that many of the existing teachers are not teaching well
and are also poorly managed. The key reason for all this is bad
training.
The department has set itself five strategic goals, the first three
being the most important: improve quality of teaching and learning;
improve quality of early childhood development; and track progress
across the education system through regular assessment.
These goals are achievable only if we have well-trained teachers;
unfortunately most are not. Many studies have confirmed that poor
performance of many teachers is a major reason for the continued bad
results, especially in essential subjects.
The debate about the role of teachers leads to another very
important question: Are our teachers being adequately remunerated?
The IFP welcomes the establishment of the Presidential Remuneration
Review Commission as announced by the President during the state of
the nation address. One only hopes that this will not go the way of
other promised initiatives, which have not been followed up on, the
teacher laptops being one of those unkept promises. Rural areas
continue to suffer the most. Teachers in the rural areas were
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promised rural incentives, but this never happened. The IFP supports
this Budget Vote. Thank you. [Time expired.] [Applause.]
Mr N M KGANYAGO: Chairperson, Ministers, Deputy Ministers and hon
members, the UDM supports Budget Vote No 15. [Applause.]
Let me state from the outset that the South African basic education
system is in crisis. In the recently released World Economic Global
Information Technology Report, South Africa’s mathematics and
science education ranks second last in the world, only ahead of
Yemen. The same report ranks the quality of our education system at
140 out of 144 countries. I think this has been said by the hon Mr
Mpontshane.
With high enrolment rates every year, our basic education system
churns out matriculants who do not possess basic numeracy and
literacy skills. Increasingly, the severity of the problem is that
the majority of our matriculants do not meet the minimum
requirements for university entrance. In addition, a large number of
the pupils who go into the system never reach matric.
In many public schools, teachers are poorly trained and lack
adequate resources – and a lack of resources is very important here.
Furthermore, it is common knowledge that the fundamental mission of
schools is the education of all children, regardless of race, home
background, sex or colour. Yet, it is apparent that either schools
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fail to educate significant numbers of learners or significant
numbers of learners fail to profit sufficiently from our education.
Now, the double-edged meaning of this statement is intentional,
because, obviously, we are dealing with a two-sided or many-sided,
problem – we are all aware that many black children are not in
school. Many who are in school fail to acquire basic skills in
reading, mathematics, spelling and self-expression through writing.
To many primary school learners, the world is full of empty words,
because they cannot read. These are the children who will find it
very difficult to get into the labour market when jobs are
available.
Recently, we witnessed disgraceful scenes when the SA Democratic
Teachers Union, Sadtu, encouraged learners to participate in its
march to Parliament, demanding the resignation of the Minister of
Basic Education, Angie Motshekga. While some of the reasons for
Sadtu’s march were legitimate, encouraging pupils to participate in
it portrayed it as an organisation that has no regard for the
interests of black children, especially when considering the fact
that the majority of the pupils who participated in the march were
from township schools. This meant that our children, whose schooling
is already poor, were even worse off. There were many opportunities
for Sadtu to genuinely march and mobilise society against the poor
state of our education system in the past – that is, the Limpopo
textbook debacle – but it did not. Now that the state of dysfunction
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in the education department affects its pockets, it deems it fit to
use our children as pawns in the ruling alliance’s internal power
battles.
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon member, your time has
expired.
Mr N M KGANYAGO: On a positive note ...
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon member, your time has
expired.
Mr N M KGANYAGO: Just on a positive note ...
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon member, your time has
expired.
Mr N M KGANYAGO: This is very important!
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon member, your time has
expired. [Interjections.]
Mr N M KGANYAGO: And I was going to praise you on this one!
[Laughter.] Just allow me to say ...
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon member, your time has
expired!
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Mr N M KGANYAGO: Thank you very much. [Laughter.] [Interjections.]
Mnr P J GROENEWALD: Agb Voorsitter, die VF Plus sal kan saamstem met
die agb Minister deur te sê dat sy moeite gedoen het om toe te sien
dat leerlinge toegang tot skole het. Met ander woorde, ons kan sê in
Suid-Afrika, met ’n toewysing van ongeveer ’n kwart van die land se
begroting, is daar redelike toeganklikheid vir ons kinders tot
skole.
Die agb Minister en almal kom en spog oor die matriekuitslae. Die VF
Plus sê geluk aan daardie matrikulante wat geslaag het, maar wat is
die werlikheid? Ek wil vandag vir die agb Minister sê die
werklikheid is dat in 2001 ongeveer 1 131 000 leerlinge die skool
betree het. Van daardie 1 131 000 leerlinge het slegs 45% verlede
jaar die matriekeksamen geskryf. Van hierdie leerlinge het slegs 33%
matriek geslaag, en slegs ’n skrale 12% het ’n matriekvrystelling
gekry. Nou, agb Minister, u mislei uself. Suid-Afrika mislei homself
as hy dink dit is ’n prestasie.
U het ’n Nasionale Ontwikkelingsplan vir die toekoms. Ek wil vandag
vir u sê dat u nie ’n toekoms gaan skep met so ’n klein persentasie
van leerlinge wat die skool betree en dan aan die einde van die dag
matriek slaag nie. Dit kan nie in die behoeftes van die land
voorsien nie.
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Die tweede aspek is dissipline. Ek praat nie net oor die dissipline
van ons kinders nie. Ek praat oor die dissipline van die onderwysers
en die onderwyseresse. Hoe is dit moontlik dat van hierdie mense wat
ons kinders moet leer twee of drie dae in ’n week by die skool
opdaag of, as hulle by die skool is, gaan sit en niks doen? Watter
voorbeeld stel hulle? Daar is wel goeie onderwysers en
onderwyseresse wat werklik ’n voorbeeld stel, en wat werklik hulle
kinders wil motiveer om hulself te verbeter.
U wil inspekteurs aanstel. U kan dit doen, maar ek wil vir u vra,
het hulle die kundigheid of is dit maar net weer ’n
werkskeppingsgeleentheid vir die regering? U sal daadwerklik moet
optree om daardie dissipline toe te pas.
In u eie departement weet ek van heelwat onderwysers en
onderwyseresse wat vir drie tot vier maande nog nie ’n salaris
ontvang het nie. Dit is ’n teken van swak dissipline in u
departement. Dit is onaanvaarbaar dat daardie mense dan nog moet
aangaan. Watter motivering het hulle, as hulle sulke swak
administrasie van die departement ontvang?
Ons stem saam dat u die vakbonde moet vasvat, want dit is deel van
die ondermyning van die dissipline. Ek dank u. (Translation of
Afrikaans speech follows.)
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[Mr P J GROENEWALD: Hon Chairperson, the FF Plus wants to agree with
the Hon Minister by saying that she has made an effort to ensure
that learners have access to schools. In other words, we are able to
say that in South Africa, with an allocation of approximately a
quarter of the country’s budget, our children have reasonable access
to schools.
The hon Minister and others sing their own praises with regard to
the matric results. The FF Plus congratulates all those matriculants
who have passed, but what is the reality? Today, I want to say to
the hon Minister that the reality is the fact that approximately 1
131 000 learners entered the school system in 2001. Of those 1 131
000 learners, only 45% wrote the matric exam last year. Of these
learners, only 33% passed matric, and only a meagre 12% passed with
matric exemption. Hon Minister, you are misleading yourself. South
Africa is misleading itself by considering this an achievement.
You have a National Development Plan for the future. Today, I want
to say to you that you will not create a future with such a small
percentage of learners who enter the school system and passed matric
in the end. This cannot meet the needs of the country.
The second aspect is discipline. I am not only referring to the
discipline of our children. I am also referring to the discipline of
the teachers. How is it possible that these people, who are supposed
to educate our children, only show up at school twice or thrice a
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week, or, when they are at school, they sit and do nothing? What
example are they setting? However, there are teachers who are in
fact setting an example, and who actually want to motivate children
to improve themselves.
You want to appoint inspectors. You can do that, but I want to ask
you, do they have the expertise, or is it simply another job
creation opportunity for government? You will have to take decisive
action to enforce discipline.
I know of many teachers in your own department who have not received
salaries for three to four months. This is a sign of poor discipline
in your department. It is unacceptable that these individuals should
then still be expected to continue. What motivation do they have
when they have to deal with such maladministration by the
department?
We agree that you have to tackle the unions, because they contribute
to undermining discipline. I thank you.]
The DEPUTY MINISTER OF BASIC EDUCATION: Chairperson, hon Ministers,
Deputy Ministers, former Deputy President, MECs who are my
colleagues and are present here, stakeholders in education and hon
members, I cannot but agree with the hon Lovemore that what we
require in our country is massive change and by merely dealing with
matters in a fragmented way, we will not be able to turn the
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situation around. I do not disagree with the hon Lovemore when she
says that indeed our vision must be cast high. Our attitude and
altitude must be such that we are motivated to do even better; and
by setting goals which are moderate, we certainly will not be able
to turn things around.
Hon members, it is rather instructive that hon Lovemore chooses
Kimberley High and Parktown High, two schools which were privileged,
as examples of models of excellence. I would, on the other hand,
like to choose three schools that I visited two weeks ago in the
Free State. These are schools in the rural area which are committed
to mainstream education and function under very difficult
circumstances. These schools recognise and realise that the
disparities that occur have not occurred by accident, but as a
result of the legacy of the past. But, when we talk about
differences and disparities in infrastructure, we do so recognising
that these were not imposed by the current government, but were
inherited as a result of the demeaning colonialist past that we have
had. That is something that we have to recognise.
Hon members, the schools that I would like to speak about are the
following: Letlotlo Primary School, which is in the rural area of
the Free State, is committed to mainstream education, ensuring that
learners receive the opportunity to enhance their ability to read
and write, read with understanding, and improve their literacy and
numeracy skills. Quite interestingly, in this particular environment
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we see the instructional and institutional leadership that is
present and a committed principal who understands that the
curriculum is central to doing well. This is what Nidu says, that
there has indeed been a move away from the understanding that the
principal is no longer merely an administrative leader of the
school, but indeed an implementer of the curriculum.
There was recognition of the fact that children who come from poor
circumstances ought to be provided with a caring and loving
environment to ensure that they enhance the opportunity of providing
quality education to them. Quite interestingly, in that school there
were more than 50 learners in a class. Notwithstanding the fact that
overcrowding was a reality, there was a commitment by each and every
educator to ensure that those children who come from poor economic
backgrounds should not be disadvantaged. What I am saying to you is
that we have a particular responsibility to instil hope in our
people, and that the rural child who suffers deficits is not
ignored. Indeed we must acknowledge, applaud and laud those
thousands of educators who work under very difficult circumstances
to ensure that we provide quality education to our children.
Let me give you another example. On the very same day we visited a
school called Manthatisi Secondary. The school has more than 320
learners, but provides hostel accommodation for more than 1 000
learners from nearby areas. The difference here is that the
principal of that particular school and the educators recognise that
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those children are not children that are cohort learners in that
particular school but, notwithstanding that, provide their time and
energy to ensure that those learners are taken care of; they take
pride in those learners, and the hostel facilities are indeed
protected, looked after and cared for by those educators. That means
they understand what the meaning of being in a caring and humane
society is all about. These are the people who inspire hope in our
people.
Similarly, if one goes to Leswane Full Service Primary School in the
area, we have a principal – in fact, we were received by a community
of more than 200 people who were very excited that the district
director and the Deputy Minister were there, and wanted to hear from
us what we brought to them. Wherever we went, we saw hope in the
eyes of children, progress and a belief that indeed tomorrow will be
better than yesterday.
Hon Chairperson, indeed we have challenges in our country. We have
never pretended that literacy and numeracy are not a problem. We
were bold enough to say that we would subject each and every child,
from Grade 1 to Grade 6, to a literacy and numeracy test. We knew in
advance that the children would not perform well, but we wanted our
parents, society and nation to confirm the reality that indeed we
have challenges in literacy. As a result thereof, there was an
awakening in society to say that surely, as parents, we have a
responsibility to ensure that we too contribute to the meaningful
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progress of the child in school. The result of that is that after
having tested 5 million, 500 children are already in the second year
as a result of the resources that we provided, the emphasis being on
content knowledge, motivation, and accountability mechanisms, our
children – Grades 1, 2, 3, 4 and 5 - have indeed improved.
I am not saying that is optimal performance. What I am saying is
that there is a clear sign of progress. What the opposition is not
saying to you is that in the past three years, we have consistently
had progress both in primary and high schools. It is this Minister
that has brought education, early childhood development, ECD, to the
centre of attention of society. [Applause.] It is this Minister that
has indicated to society to please not look at our performance in
Grade 12, but to look at our performance right from the beginning,
ie from Grade 1. [Applause.]
Indeed, it is this Minister that has provided more than 55 million
workbooks in 11 official languages to our children. Even Nidu and
every educator say that those textbooks have contributed
significantly and substantially to the improvement of the ability of
learners in terms of both literacy and numeracy. These are massive
changes.
Massive changes are when you do not just feed 100 000 children;
massive changes are when you feed more than 8 800 000 children every
day, and you say that you are taking care of your children. Massive
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change means that you are not providing for only certain privileged
children, but massive change means that you are providing workbooks
in literacy and numeracy from Grade R to Grade 9 to all children
across all quintiles in the system. [Applause.]
Massive change means that you are not testing only a cohort of 100
000 learners. Massive change means that you are testing 7 200 000
learners so that we can say, in each and every class, school and
district, we are able to compare the ability of our learners and
determine where indeed progress has been made. [Applause.] Massive
change means that from here to there, there has been a 15 000
increase of in terms passing matric. Massive change means that in
the past five years we have more than doubled the number of matric
passes Massive change means that in the past five years more than
70 000 learners have indeed qualified for a bachelor’s degree.
[Applause.]
These are significant changes that we must say we have made
together. That does not detract from the reality that our challenges
in the country are enormous. That does not detract from the reality
that indeed we have to instil greater discipline. That does not
detract from the reality that as a collective across all political
party lines, parents and society, we have to recognise that the
challenge of education is so huge that we have to pull together
indeed to make a difference.
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What is it that we should do? What is it that we believe we have
done right? The hon Lovemore should do what a curriculum implementer
does. She should look at the delivery agreement. What are the key
issues that we set out in the delivery agreement? That is an
agreement that was signed between the Minister and the President to
which we and the MECs of education are all bound. That agreement
says, firstly, that early childhood development is at the centre of
a successful programme in education.
Today we can celebrate the fact that approximately 90% of our
learners, some 880 000 learners, are in Grade R and have received at
least one year of formal training. Today we can celebrate the fact
that every child that goes to Grade R receives a workbook on
literacy and numeracy free of charge from this particular
government. [Applause.] This never happened before, not in the past
50 years. [Applause.]
Today we can celebrate the fact that the Department of Social
Development is going to embark on a One Thousand Days campaign so
that the child, from birth to three years of age, receives important
cognitive, emotional, educational health support. That means that
ECD is a reality in the lives of South African children.
What is the second point? The second point is accountability. We
said that we cannot have a system and make massive changes unless
there is accountability amongst educators, the principal of the
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school and the district. Every quarter of every year this Ministry
meets with every district director across the country to determine
what the challenges are, learn from each other, and determine the
path for the future. This has contributed to a consistent
improvement in the achievement of our learners across the system and
that is indeed the reality.
In the schools that we visited we discovered that indeed for the
first time, subject advisers were visiting schools. The district
directors were indeed recognising their roles and responsibilities.
Look at where the Free State was and why it has improved. It has
done so because it recognises the importance of districts. It
recognises that everybody has to play a particular role. We cannot
pretend that these changes are not realities. We cannot pretend that
when we go to the Eastern Cape that new schools are being built.
We recognise and affirm the fact that there are huge challenges in
relation to sanitation and electricity, but let us not be blind to
the fact that changes are indeed taking place in our country. I
think one can only say that those who are parochial, those who do
not want to see something positive, those who want to demotivate our
children and instil in them the belief that they can never be
successful are those who stand on podiums and say nothing has
changed, the past was better than the future.
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Who amongst you went to school in Grade 1 and received four books?
Not one amongst you! [Applause.] You received an exercise book and
an exercise was written on the chalkboard. But, today every child
receives it and then you say, “our children do not receive books”.
Those are the realities. You are the product of apartheid education
and some of us have gained from it. There are those on the right,
others still remain on the left. That is the reality of apartheid.
Hon members, let us recognise one thing, that education itself ...
[Interjections.] oh please, could I say in a kind and polite way,
shut up, you make no sense! You can object if you want to. I am
telling you to shut up! Hon Chairperson, I do not wish to take any
questions. [Interjections.]
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon Deputy Minister, will
you take your seat, please!
Mr D A KGANARE: Chairperson, on a point of order: Is it
parliamentary for the Deputy Minister to tell another hon member to
shut up?
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon Deputy Minister, will
you just withdraw the words ``shut up’’ please!
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The DEPUTY MINISTER OF BASIC EDUCATION: Hon Chairperson, I will
withdraw the words ``shut up’’ but certainly ask for the protection
... [Interjections.]
The HOUSE CHAIRPERSON (Mr C T Frolick): Deputy Minister, thank you.
You may continue.
The DEPUTY MINISTER OF BASIC EDUCATION: Hon Chairperson, thank you
very much!
The HOUSE CHAIRPERSON (Mr C T Frolick): May I also request that
while we do allow interjections, we cannot allow ongoing commentary
while the speaker is on the podium. Let us just observe that
protocol so that we can maintain the decorum of the House.
The DEPUTY MINISTER OF BASIC EDUCATION: Hon Chairperson, thank you
very much. It has been said that there are some, such as a drunkard
who leans against a lamp post for support, while others go to the
lamp post for enlightenment and illusion. So, one has to distinguish
between those two. Comments that come from some quarters would be
regarded in the appropriate way.
Hon Chairperson, what I am saying is that education is indeed an
Apex Priority. It is the collective responsibility of all of us to
ensure that we indeed make our contribution. The challenges, we will
say, are enormous and indeed more has to be done. We take comfort in
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the fact that indeed there is a collaborative spirit between Sadtu
and the department and we have to build on that. This is because we
cannot sacrifice millions of our children at the altar of political
expediency. I think all unions must recognise the fact that we have
that particular responsibility. Overall, there has been recognition
of that fact.
As we go to places such as the Free State and North West, which we
will be visiting on Friday, we recognise that thousands upon
thousands of Sadtu educators are working under difficult
circumstances, are passionate about education, and indeed want to
make a difference. We do believe that they, as a collective, have
the responsibility to ensure that the few that seek to tarnish the
image of the professional person indeed do not succeed.
Chairperson, at the heart of what we are doing is that we have to
ensure that what occurs in the classroom is optimally for the
benefit of the learner. It is called ``backward mapping’’. It is
called looking at the way real education and learning has to take
place. We have established 114 teacher resource centres to ensure
that in-service training, inset, and pre-service training and preset
education take place; that content knowledge is being passed on; the
workbooks that we are disseminating are being used productively by
the educators; and the methodology is correct, especially in the
foundation phase so that our children can indeed benefit from that
particular exercise. This is not by accident. This is massive
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change. That means in every district in the country you would have a
teacher resource centre, where there would be community practices of
learning, and where unions would get together and ensure that, as a
collective, they make a difference in the lives of our children.
Hon Chairperson and hon members, I am optimistic. I think we
recognise our collective responsibility across political lines, of
this particularly important Apex Priority. If indeed South Africa is
to develop in the right direction, it means that we have to take the
burden that we have imposed on ourselves as parents and adults to
ensure that we provide whatever support we can to our rural learners
in particular, but to our learners generally. It is us who must
motivate and inspire them. If we fail to do so and diminish their
belief in their ability, capacity and potential, then certainly we
are betraying the future of these very children that we see and say
we represent. I thank you most kindly. [Applause.]
Mr C M MONI: Hon House Chairperson, hon Ministers, Deputy Ministers,
hon members, distinguished guests, ladies and gentlemen, I am going
to talk about broadening access to quality education for all.
Education is a means of promoting good citizenship as well as
preparing our people for the needs of a modern economy and a
democratic society. The ANC government aimed at ensuring the
progressive realisation of universal schooling, improving quality
education and eliminating disparities.
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Chairperson, I would like to remind this House of what uTata uMadiba
said about education:
Education is the great engine of personal development. It is
through education that the daughter of a peasant can become a
doctor, that a son of a mineworker can become the head of the
mine, that a child of farm workers can become the president of a
great nation. It is what we make out of what we have, not what we
are given, that separates one person from another.
The ANC adopts the view that the task of broadening access to
quality education should remain at the centre of all our efforts to
build our nation. This stance is founded on the understanding that
education plays a crucial role in broadening the scope of social and
economic emancipation for all of our people. The ANC continues to
hold education as a key mechanism to enable people to define their
identities, take control of their lives and participate confidently
and effectively in the social, political and economic life of our
society. To this end we regard education as a matter of public
interest, relevantly serving as a critical foundation for the
advancement of human dignity, equality, human rights and freedom,
nonracialism and nonsexism.
Research shows that the ANC government, together with South African
people, are joining hands in an effort to improve the quality of
education and to make it accessible to the majority of all South
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Africans. It shows that we are all beginning to recognise in the
most practical way that education is central to the success of a
whole range of other human endeavours. Our reconstruction and
development efforts, the renaissance of the entire continent of
Africa, and our successful interaction in the global village, depend
largely on the progress we make in educating our population. There
has been a significant increase in the percentage of individuals
aged 5 to 24 years attending an education institution between 1996
and 2011.
Over the years there has been a steady decline in the percentage of
adults who have not received an education. The percentage of persons
20 years and older who have no schooling decreased from 19,1% in
1996 to 8,7% in 2011, whilst those with education higher than Grade
12 increased from 7,1% to 12,3% during the same period of time.
Chairperson, most of the individuals without schooling were
generally black Africans, but even so their numbers decreased from
24% to 10,5% in 2011. Our people continue to bear the socioeconomic
burdens that were imposed by the apartheid legacy. This legacy makes
it difficult for our people, particularly children from poor
communities, to get the required opportunities to define their lives
and participate meaningfully in the socioeconomic life of our
society.
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It is within this view that government has elevated the task of
broadening access to quality education as a priority that we should
be working together to realise. As the ANC, we believe that such a
trajectory lies at the centre of the call for working together made
by the President in his state of the nation address in 2013.
Education is a concern for all of us and we can only make it work
better for our people if we are prepared to converge and synergise
our efforts of working together.
I believe that it is therefore imperative that our government works
to address the socioeconomic burdens to ensure that all our children
can have access to quality education, in order to enable them to
participate fully and meaningfully in the socioeconomic life of
society. Dealing with socioeconomic burdens should continue to be a
priority for our government, specifically the Department of Basic
Education. Such an understanding is against the backdrop that these
challenges are potentially eroding the gains we have made with
regard to ensuring that every one of our children receives the
education to which they are entitled in terms of our constitutional
obligations.
The ANC decided at its national conference in Polokwane to assign
top priority to education. In order to give practical expression to
this decision, we felt that the then Department of Education was too
big and overburdened, with a vast and comprehensive series of tasks
and functions that were often beyond the management and leadership
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capacity of a single government department. Arising from this
concern, it made more meaningful and practical sense to group
together issues relating to the special focus area of basic
education, while separating these from issues relating to higher
education. This gave birth to a split of the Department of Education
into two new Ministries in the new government structure, namely the
Ministry of Basic Education and the Ministry of Higher Education and
Training.
Chairperson, our observation as the portfolio committee has been
that this decision was an appropriate step in the right direction as
it has streamlined activities and focused the Department of Basic
Education on issues that matter at that level of our education
system. However, we want to encourage continued co-ordination
between the two Ministries, as the two departments are
interdependent. In essence, we consider this as vital for a flawless
transition of students from one level to the other.
Chairperson, the structural changes instituted by the government in
2009 served as an important signal for a strong sense of
accountability for service delivery. The Cabinet lekgotla held in
2010 adopted the 12 outcomes for government. These outcomes served
as the basis of our service delivery activities. One of these
outcomes was an improved quality of basic education. This speaks to
our oversight mandate as the Portfolio Committee on Basic Education.
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Flowing from this outcome, the Minister of the Department of Basic
Education, Mrs Angie Motshekga, as well as the members of the
executive councils for education, committed to the agenda of working
towards improving the quality of education in the service delivery
agreements signed with the President.
The service delivery agreement of the Minister covers output areas
such as improving the quality of teaching and learning; undertaking
regular assessments to track progress; improving early childhood
development; and ensuring a credible outcomes-focused planning and
accountability system. We are confident that this is the right step
towards broadening access to quality education for all. We can
already see the benefits of this move.
Chairperson, the question of access to quality education remains on
the agenda of the government led by the ANC. As such, the department
has identified the annual national assessments, ANA, as a strategic
tool for monitoring and improving the level and quality of basic
education, with a special focus on the foundational skills of
literacy, numeracy and life skills.
The department initially introduced the annual national assessments
for learners in Grade 3 and Grade 6 as a diagnostic tool to inform
us of the health of our schooling system and how we could go about
shaping our interventions going forward. In 2012, we expanded ANA to
include learners in Grade 9. The findings of the annual national
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assessments have provided the department with important lessons on
what it should do to improve the health of our schooling system.
The findings of the 2012 round of ANA revealed an overall
improvement in learner performance across grades. Significant
improvements were observed in the foundation phase, in particular.
However, the report also revealed depressing levels of performance
in Grades 6 and 9, particularly in mathematics and languages, which
is an indication that there is a need for focused interventions at
this level.
Chairperson, our engagements with the department during our budget
review meetings for 2013-14 gave us confidence that the department
is treating this initiative with the seriousness that it deserves.
For instance, tests for ANA 2013 have been set, reviewed and
versioned. Two forms of tests have been piloted, and results from
the pilot are being incorporated into the tests. The timetable for
ANA 2013 has been approved by the Heads of Education Departments
Committee, Hedcom, and procurement of service providers for
printing, packing and distribution is in progress.
More than R260 million has been set aside for the implementation of
national assessment and public examinations. As part of the
department’s response to the findings of ANA, the department took an
unprecedented step of developing and distributing workbooks to all
Grades 1 to 9 learners in all of our more than 24 000 public schools
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across the country, benefiting over 11 million learners. However,
the department also provided 900 000 workbooks to all our Grade R
learners.
It is not only workbooks that were made available to schools, but
also textbooks through partnerships with private sector partners
such as the Mark Shuttleworth Foundation. However, we realise that
it would be unsustainable for government to renew textbooks for the
entire learner population every year. Therefore, we call on parents,
teachers, learners and communities at large to work with government
to ensure 100% retrieval of textbooks.
We have prioritised early childhood development based on its
potential to contribute positively to learner performance in the
subsequent years of schooling. As such, the Grade R programme
remains one of the department’s critical interventions. We commend
the fact that the department has done very well in broadening access
to Grade R. For instance, in 2012 the government of the ANC
committed over R3 billion to expanding accesses to Grade R
education. Currently, over 90% of public schools offer Grade R
education. In 1999, South Africa had just over 150 000 learners in
Grade R. However, by the close of 2012, the number had increased to
about 800 000. Currently, there are more than 22 000 Grade R classes
in our schools.
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The high increase of learners aged five who are attending
educational institutions in particular is attributable to such
factors as the provision of nutrition to Grade R learners in public
or ordinary schools; increased subsidies to ECD practitioners;
cheaper fees paid by parents at public ordinary schools offering
Grade R; the automatic acceptance of registered Grade R learners to
Grade 1 in public schools; and the increase in the registration of
ECD centres by the Department of Social Development.
A major task at hand is universalising access to Grade R education
by 2014. This is particularly important as research indicates that
access to early childhood development programmes improves learner
retention and performance in subsequent years of schooling. The
2013-14 budget for basic education is a reflection of our response
to our commitment to improving the quality of our ECD programmes by
allocating more resources.
We have noted with content that we are on our way to meeting our
commitment to the Millennium Development Goals by 2015. Goal 2 of
the Millennium Declaration commits us to ensuring that by 2015
children everywhere, boys and girls alike, should be able to
complete a full course of primary schooling. In terms of this goal,
we have done well in expanding access to universal primary
education. Pursuing universal primary education for all is
imperative; indeed, it is a central part of our commitment to the UN
Millennium Development Goals.
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However, focusing on girls poses particular and considerable
challenges, but offers considerable benefits that far outweigh these
challenges. Girls’ education, in particular, is an integral part of
virtually every aspect of the development of our nation.
Since 1994, South Africa’s net enrolment rate in both primary and
secondary schooling has increased dramatically, with the
participation rate among girls being the highest compared to global
standards. [Time expired.] [Applause.]
Mrs C DUDLEY: Chair, hon Minister and Deputy Minister, despite the
efforts and the progress that I have seen, the people of South
Africa are extremely frustrated that it is taking so long to deliver
improved quality education to meet the human resource development
needs of the country and to end poverty and inequality. With this in
mind, the ACDP welcomes the budget increase of almost 6%.
Government’s mantra of ``do more with less’’ is now becoming ``do
more with more’’. In the case of the Department of Basic Education,
DBE, it’s no less a challenge as underspending and lack of delivery
have been serious problems, particularly in the area of
infrastructure backlogs.
In the last financial year the department received R2,3 billion to
replace 496 schools and to provide 1 257 schools with water, 878
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schools with electricity and 868 schools with sanitation. Only 12
out of 49 mud schools in the Eastern Cape were replaced, only 106
schools got water, 144 got sanitation and 118 got electricity. This
resulted in nearly R1,7 billion for infrastructure being redirected
away from Basic Education, and it’s a great shame.
Apart from infrastructure, quality education requires quality
teachers and quality textbooks. These are two areas in which the
department in some way has failed to deliver.
The ACDP regards the disruption of learners’ studies by union
activities as extremely problematic and we are calling on government
to commit fully in ensuring that the teaching profession is held to
a higher professional standard. The DBE promises to improve
accountability measures to ensure that all teachers are in school,
on time, regularly and teaching. Seriously this begs the question,
why have you waited until now because this is not exactly a new
revelation?
The ACDP has welcomed the National Education Evaluation and
Development Unit’s 2012 report on the state of literacy, teaching
and learning in the Foundation Phase. There are grave concerns about
poor levels of reading and it is in the Foundation Phase where the
education battle is often won or lost.
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We note that problem areas identified include difficulties
experienced by teachers and learners regarding language. We support
the introduction of English as a compulsory additional language in
African language schools. Learners must have a solid grounding to
assist them when they move from the Foundation Phase to the
Intermediate Phase. A good grounding, of course, in a learner’s home
language is just as important and we welcome the new policy that
will come into effect in 2014, mandating the learning of an African
language in all schools.
Provincial education departments have been cutting independent
schools’ subsidies unilaterally by as much as 40%, which is not in
line with the present norms and standards for school funding. These
subsidy cuts have resulted in some schools closing down and others
operating under impossible financial constraints. The ACDP is
calling for allocations to independent schools to be made by
National Treasury and ring-fenced at provincial level. [Time
expired.]
Mr I S MFUNDISI: Hon Chairperson and hon members, we consider this
budget at the time when the department has been embroiled in a
controversy for years. But so far in the past year in particular,
the controversy has been as far as the textbooks are concerned. The
sad news is that at the end of April as many as 19 schools in
Limpopo were still without the requisite textbooks despite the
department’s vehement denial of such facts.
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It is disappointing that threats of disciplinary actions are issued
against school principals who disclose the department’s failure to
deliver. School principals are mouthpieces of the poor children and
they should not be silenced. It means that the children of these
communities will be condemned to a life of poverty and
underdevelopment.
The shortage of furniture in some schools is another area in which
the department continues to fail dismally. Hundreds of thousands of
pupils are forced to learn sitting on the floor because there are no
desks in their schools. It is a disgrace that almost 20 years since
democracy there are still so many mud schools.
It is unfortunate that as recently as yesterday, it has been brought
to light that teachers are incapable of imparting skills on
reasoning. It is absurd to argue that the teachers in question come
from the old order and were trained to teach labourers. Even if that
is the case a responsible government department should have upgraded
their skills to meet modern demands. It has, of course, to be borne
in mind that when the ANC said they were ready to govern it actually
meant that they were ready to do so and geared to improving the
quality of life of the people. Gone are the days of passing the
buck.
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The low numeracy and literacy levels are unacceptable. Without
secure foundations of literacy and numeracy, our learners will never
obtain the high skills needed by the nation to address poverty and
inequality. The findings of the National Planning Commission that
the quality of schooling is substandard, especially in township and
rural schools, clearly indicate a crisis now and for the future.
While strike action is a right, the ease with which teachers quickly
abandon their duties to take to the streets for their wage demands
needs urgent attention. Teaching is a labour of love. Leaving
classes unattended should be the last thing for professionals to do.
One wishes that they could take a leaf from the book of the
nonagenarian, Mama Qwelane of Mpumalanga, whose matric classes pass
with flying colours. She really deserves the Baobab Order recently
awarded to her by the President.
We remain astounded by the manner in which school-going children are
inconvenienced by being sent from pillar to post as their schools
are amalgamated without paying due consideration to issues such as
their transport to such schools. [Time expired.]
Mr Z S MAKHUBELE:
Hon Chairperson, hon Minister, Deputy Minister, hon
Members of Parliament, distinguished guests, ladies and gentlemen, allow
me first to talk to the issue of corruption as raised by Cope. An
impression is being given in the country that it is only the opposition
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parties that are serious about corruption and the ANC-led government is
not.
The point that was referred to with regard to EduSolutions and all other
cases, are being followed by the institutions that are doing so under
the initiative of the ANC-led government. You know as well that at its
53rd ANC National Conference – Mangaung-, the ANC resolved to ensure
that all its members who are associated with corruption activities
should be dealt notwithstanding the view that a person is presumed
innocent until proven guilty. It’s known that we are serious about
corruption and not everyone, but the ANC.
Chairperson, as the ANC we believe that the quality of an education
system cannot exceed the quality of its teachers. As such, we are of
the view that the successful implementation of our national
curriculum depends on the strength of our teacher development
programmes. Teachers are the essential drivers of quality education
for all. We therefore commend the department for taking the
initiative to make teacher development a focal point of their 201314 plans, and realising that this complex task can only be executed
as a joint responsibility shared amongst all those involved in
education.
We are confident that this view will go a long way towards
reinforcing the gains that we have made in this area. The ANC
emphasises therefore that an investment in education is a
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prerequisite for building a country that works and, most
importantly, that advances the ideals of our Constitution.
For us to make education an Apex Priority in the country, our
teachers must play their part. They must turn the image of the
profession around. Through professional conduct like coming to
school on time and doing their work diligently, the teaching
profession will regain the respect of the community. We will revert
to the situation of years ago, when teachers were revered members of
the community that people looked up to. We want children to look up
to the teachers and learn from them more than from the formal
curriculum.
Through watching the conduct of teachers, learners must want to be
successful, respectful and to be good citizens who will take the
country forward to prosperity. Our teachers therefore carry an
enormous responsibility on their shoulders. They carry the dreams
and hopes of the nation. The manner in which they raise and nurture
our precious children will help us build the model South African
citizen. We will build the country that national heroes and heroines
such as Pixley ka Isaka Seme, Chief Albert Luthuli, Ruth First,
Dorothy Nyembe, Nelson Mandela, Walter Sisulu and many more
sacrificed life’s comforts to establish. Those who do not believe in
the noble vision of our forebears do not belong to the profession.
They will continue giving the profession a bad name and besmirch the
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name of all teachers, including those who are dedicated to their
work.
The challenges facing teacher education and development in
South Africa are substantial. These include the lack of access to
quality teacher education and development opportunities for
prospective and practising teachers; a mismatch between the
provision of and demand for teachers of particular types; the
failure of the system to achieve dramatic improvement in the quality
of teaching and learning in schools; a fragmented and unco-ordinated
approach to teacher education and development; and the tenuous
involvement of teachers, their organisations and other role-players
in teacher education and development planning.
We want to congratulate all those who participated in the crafting
of the Declaration of the Teacher Development Summit in 2009, as it
has culminated in the collaborative work that gave birth to
production of the Integrated Strategic Planning Framework for
Teacher Education and Development in South Africa, 2011-2025. We
urge the department and all involved to begin with the
implementation of the plan so that we may begin to reap the fruits
of an improved quality teacher education and development system, as
a critical lever for the improvement of the quality of teachers and
teaching. We commend President Jacob Zuma for identifying the need
to investigate conditions of service of public servants, more
specifically teachers.
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As noted in the state of the nation address, and I quote:
All successful societies have one thing in common, they invest in
education. Decent salaries and conditions of service will play an
important role in attracting, motivating and retaining skilled
teachers.
We are confident that this move will serve as a boost to the
department’s efforts which aim at developing teachers and attending
to their needs. The cherry on top was the announcement that teachers
will receive first priority. We therefore urge all teachers to
ensure that the service they provide in our schools is worth the
amount of investment the state will make in teachers. Our
expectation in this regard is that the review must also consider
enforcing teacher incentives for those working in rural areas and in
difficult conditions of service that do not befit the stature and
professionalism of the teaching profession. This will go a long way
to enticing more teachers to the rural areas.
We acknowledge the fact that state-employed educators with at least
a three-year postmatric qualification are now over 96%. However, the
challenge that we are facing is that of the competency of some of
our teachers to be able to meet the expectations of our streamlined
national curriculum. This was also confirmed by the recently
released National Education Evaluation and Development Unit, Needu,
report which exposed critical weaknesses in this regard.
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Further, the shortage in maths, science and technology teachers in
the system is becoming a cause for concern. However, we are
confident that the plans that were presented to us by the branch
that deals with teachers in the department will go a long way
towards enhancing the capacity of our teachers to deliver our
national curriculum. We need to have a better understanding of the
supply and demand nexus.
We need to improve the public image of the teaching profession, and
attract more young and talented people into the education system. It
is an open secret that our teachers in the system are aging. We
commend the department for establishing the Funza Lushaka bursary
scheme, which offers bursaries for undergraduate studies in
mathematics, science and languages. By the end of 2012, the
department awarded around 11 500 Funza Lushaka bursaries. The
estimated allocation for 2013-14 is R900 million. This will make it
possible for more than 14 000 bursaries to be awarded in the current
financial year. This is an increase of 3 000 bursaries from the
2012-13 financial year.
In order to enhance new teacher recruitment initiatives, the
department is targeting learners from rural and poor communities to
assist them to access Funza Lushaka bursaries. More than 100
bursaries have been awarded to students through this approach.
However, the department should note that few students are enrolling
to teach Foundation Phase and Intermediate Phase. There are
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allegations that the bursary scheme does not have an intake of
Afrikaans speakers and therefore this should be looked into,
Minister.
We urge the department to develop a tracking system to
monitor bursary recipients both during their study period and once
they are employed in order for them to meet their contractual
obligations. We also urge the department to evaluate the programme
in order to measure its impact in increasing the number of quality
teachers in priority areas.
In terms of the use of information communication technology in
teacher professional development, the department is working in
collaboration with the University of South Africa, Unisa, in the
resourcing of 45 teacher centres. A budget of R87 million has been
earmarked for the initiative.
We believe that challenges with teacher supply and demand have led
to some of the unintended consequences such as delivering of
undergraduate studies to students who are not physically onsite to
receive their education. That is, rather than attending full-time in
a conventional classroom, lecturers and students communicate through
the exchange of electronic media and other sources. We are of the
view that a face-to-face interaction allows the student to acquire
essential social skills necessary for working as a teacher, and
gives the student a chance to be socialised into the culture of what
it really means to be a teacher in the first place.
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This system of attaining qualifications has been criticised for
providing us with teachers who have a qualification, but who are not
adequately competent to face the challenges in our schools. We urge
the Department of Basic Education to work with the Department of
Higher Education and Training to look into this matter. The
reopening of teachers’ colleges by the Department of Higher
Education and Training is a welcomed idea.
We are of the view that all teachers need to enhance their skills
for the effective delivery of our national curriculum. Research
reveals that continuing teacher professional development succeeds
best when teachers themselves are integrally involved in their own
development and are given space to reflect on their practice. As
such, we commend the department for forging ahead with the
continuing professional teacher development programme. The programme
will ensure that current professional teacher development
initiatives contribute more effectively and directly to the
improvement of the quality of teaching and learning.
We welcome the fact that the department has included an allocation
of approximately R10 million for this programme in their plans for
2013-14. We urge the department to forge ahead with the
implementation of the plan in order to advance our movement towards
quality education for all.
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Teacher accountability is at the centre of our work towards quality
education for all. Recently, the department commissioned a study on
integrated quality management system that revealed some inherent
deficiencies in the system. The department indicated that
discussions at the Education Labour Relations Council on the quality
management system would be finalised by the end of April 2013.
Thereafter, the Minister would be requested to declare the policy on
the matter, should an agreement be reached. It is envisaged that the
training of teachers would be undertaken in the second quarter along
with the existing integrated quality management system.
In addition, there are plans to enhance accountability of officebased educators. This will include reviewing of the current
performance management development system through reopening
discussions on the education management system.
The department has established teachers’ centres across the nine
provinces with a view to bringing teacher development opportunities
closer to teachers. We welcome the fact that the department has
included in its 2013-14 plan the strengthening of the capacity of
existing teachers’ centres so that they are in a position to support
teachers on content knowledge, pedagogical content knowledge and the
effective implementation of the Curriculum Assessment Policy
Statements.
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Effective and efficient leadership and management are increasingly
considered as crucial in any organisation whose mission is to strive
towards excellence. As the ANC, we are of the view that effective
school management creates an environment for high performance and
service delivery. Research shows that newly appointed school
principals experience great difficulty in adapting to the role of
principalship. The internal monitoring and evaluation processes of
the department have revealed challenges with the implementation of
policy at school level. To this end, we would like to congratulate
the Department of Education for introducing targeted initiatives to
address this product of the legacy of the past. We are delighted by
the fact that the department introduced a new threshold
qualification for aspiring school principals as part of the wider
strategic view to address the challenge of poor standards of
performance in the public schooling system.
While we believe that more still needs to be done, we should not shy
away from the good stories emanating from our programmes. But one of
the challenges we present to the department is, how long will we
speak of the troubling temporary teachers phenomenon without finding
the necessary solution? The ANC encourages a strong resolution of
this phenomenon on an equal footing across provinces. Under the
guidance of the national department, provinces need to come up with
a strong policy position on dealing with teacher vacancies, and
movement of seemingly elusive teachers to where they are needed.
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For how long will we hear about continued misconduct and absenteeism
of teachers while we watch? How long will we hear about the
streamlining of the SA Council for Educators, Sace, Education Labour
Relations Council, ELRC, and departmental disciplinary cases, more
especially where schoolgirls are victims of sexual harassment
because they are more traumatised when they are subjected to three
different processes dealing with the same thing, that degrades their
person? As the ANC we support this Basic Education Budget Vote for
2013-14. I thank you. [Applause.]
Mr R B BHOOLA: Hon Chairperson, education is the strongest means of
social empowerment and should be used to drive out the inequalities
that hamper our society. Those who have always gone to Model C
schools must not be hypocritical, and when the conditions of the
poor are systematically improved, they should not shout to protect
the privileged on the one hand and suppress the poor on the other.
[Interjections.] If one looks objectively at where education was in
1994 and where it is today, one will take particular note of the
fact that our matriculants have almost doubled.
We have come a long way, but that does not mean that there is not a
lot of work to be done. We applaud the Minister for her stance in
concluding a truce in regard to the protest action. Having said
that, a programme of action must be implemented to deal with the one
month’s work that was lost. The MF is concerned about overcrowding
in schools. We have not decreased the learner and educator ratio for
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the past three to four years. We as government are absolutely
responsible. I understand that we are going through an economic
recession, but something must be done.
The hon President made a statement with regard to the improvement of
the salaries of educators. How was that catered for in the budget?
Has the budget catered sufficiently for the roll-out of the
nutrition programme to all schools? We must ensure that the rural
incentive is paid to educators in terms of the performance
management development system.
The issue of the improvement of quality teacher training is divided
in many areas. Do we have sufficient training institutions for
educators? It is clear that we don’t, especially when the unions are
establishing their own. We need to take this matter forward. The MF
suggests that we refer this matter to a task team, to come up with
proposals identifying institutions in all of the provinces.
We have a great number of qualified and underqualified educators. We
need to train more teachers and more funding must be directed
towards these concerns as the MF views this as a neglected area. The
MF further calls for an urgent audit and a programme to fast-track
the eradication of backlogs, particularly in the building of schools
and classrooms.
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Although the Minister has taken the issue of the insults to the
equality courts, it is not enough. The media is using pictures to
identify people who were demonstrating with those unethical slogans.
The provincial department must deal with it as cases of misconduct
because it’s definitely a breach of the demonstrators’ contractual
obligations. [Interjections.] [Applause.] One cannot raise issues on
the street and blame the Minister, instead of raising them in the
bargaining council. [Applause.] [Interjections.] Without
antagonising the Minister, I believe that if there are any people
who have misrepresented us and signed agreements without her
authorisation, she needs to get rid of them.
The Minister must take heed of the growing spectra of the
population, and be reminded of and guided by the National
Development Plan, NDP. The MF further proposes a strong maintenance
budget which should be maintained by a huge amount. Each year the
fiscus must provide, so that on the one hand we maintain that which
we have, upgrade that which is in a poor condition and, in certain
instances, rebuild.
We have a collective responsibility to ensure the dignity and safety
of women. As more women enter public spaces for education or work,
there are more reports of violence against them. The MF stands in
solidarity with our girl-children and women. We further emphasise
... [Time expired.] [Applause.]
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Mr K J DIKOBO: Hon House Chair, hon members and hon guests, South
Africa has indeed made strides towards achieving education for all.
The records show that we are nearly at 100%. The biggest problem
that the country has not been able to address is that of quality.
The report released by the National Education Evaluation and
Development Unit, Needu, confirms what we have known. It confirms
what the Annual National Assessments, ANA, and other reports have
told us, that the quality of education in the majority of our
schools is poor. The Needu report tells us that many teachers cannot
teach at a higher cognitive level. Children are by and large taught
to reproduce.
However, before we lynch teachers, let us remember that these
teachers did not produce themselves. They can only teach what they
were taught. Azapo therefore calls for more investment in the
development of teachers. No education system can be better than its
teachers. With regard to the three T’s, and the three hours of
contact, researchers have told us that in township and village
schools, children are taught three and a half hours on average per
day, instead of seven hours. That is why we become alarmed when we
hear that there will be work-to-rule, or go-slows. If a teacher who
teaches three hours per day embarks on a go-slow, does it mean that
the teacher is going to teach for one hour per day?
We want to add our voice to those who accuse the Minister and her
department of undermining collective bargaining. How could she
withdraw from a collective agreement without putting a new proposal
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on the table? We assume that she has legal advisers, who should have
told her that it was not legal to do so.
Azapo is glad that the threat of industrial action has been removed.
The threat should not have been there in the first place because, as
the Minister should know, unions cannot strike on a dispute of
right. People go to court for that kind of dispute. Did the hon
Minister’s legal advisers not tell her that? It is unfortunate that
the decision to stop the threat of strike action was also taken
outside the bargaining council, the Education Labour Relations
Council, ELRC ... [Interjections.] ... once more undermining
collective bargaining.
We did not say anything in our speech about money, because Azapo
believes the problem in our system is not about money, but about
leadership, commitment and the management of our schools and
systems, including the department. Azapo supports Vote No 15. Thank
you. [Applause.]
Mnr D C SMILES: Agb Voorsitter en lede, die agb Minister en
Adjunkminister van Basiese Onderwys het gister met die SA
Demokratiese Onderwysersunie, Sadou, vergadering gehou. Vandag in
hierdie Parlement hou die Minister vergadering met die mense van
Suid-Afrika oor die onderwys van hul kinders. [Tussenwerpsels.] Die
mense van Suid-Afrika sal die Minister en Sadou aanspreeklik hou vir
die ooreenkoms wat hulle gister bereik het.
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Van my kant af wil ek vandag my nek uitsteek om vir die Minister te
waarsku dat as sy nie vir Sadou kan beheer nie, gaan die mense van
Suid-Afrika met haar afreken. Hulle gaan dalk vra dat sy moet
bedank. [Tussenwerpsels.]
Die agb Adjunkminister het probeer om my kollega se toespraak af te
kraak, maar hy het ongelukkig daarin gefaal. [Tussenwerpsels.] Al
wat gebeur het ... [Tussenwerpsels.] [Gelag.] ... is dat hy net
daarin geslaag het om weer eens, soos die ANC gewoonlik maak,
apartheid te blameer. [Tussenwerpsels.] Dit is ’n ou snaar wat hy
elke dag en elke jaar hier kom tokkel ... [Tussenwerpsels.] ... en
hy moet daarmee ophou. [Tussenwerpsels.]
Ek wil voortgaan deur aan die agb Minister te sê dat my kollega ’n
rigtinggewende toespraak gelewer het, en as ek sy was, sal ek
definitief luister na wat my kollega gesê het en dit implementeer.
[Tussenwerpsels.] Ek wil graag op een aspek fokus, en hierdeur wil
ek probeer om aan te dui wat die tekortkominge in voorskoolse
onderwys is. (Translation of Afrikaans paragraphs follows.)
[Mr D C SMILES: Hon Chairperson and members, the hon Minister and
Deputy Minister of Basic Education had a meeting with the SA
Democratic Teachers’ Union, Sadtu, yesterday. Today, in this
Parliament, the Minister is meeting with the people of South Africa
about the education of their children. [Interjections.] The people
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of South Africa will hold the Minister and Sadtu accountable for the
agreement that they have reached yesterday. From my side, I want to
stick my neck out to warn the Minister that if she is unable to
control Sadtu, the people of South Africa will hold her accountable.
They might ask her to resign. [Interjections.]
The hon Deputy Minister tried to slate my colleague’s speech, but
unfortunately he failed in doing so. [Interjections.] The only thing
he managed to do ... [Interjections.] [Laughter.] ... was to succeed
in blaming apartheid once again, as the ANC usually does.
[Interjections.] It is an old song that he comes to sing here, every
day and every year ... [Interjections.]
... and he must stop with
that. [Interjections.]
I want to continue by saying to the hon Minister that the speech
delivered by my colleague is indicating which course to take, and if
I were her, I would definitely heed what was said by my colleague
and implement it. [Interjections.] I would like to focus on one
aspect, and in this way make an attempt to indicate the shortcomings
in preschool education.]
The DA doubts that the Department of Basic Education will, in terms
of the Action Plan 2014, achieve their target of 80% of universal
access to Grade R. Early childhood development, ECD, is one of the
top priorities of the NDP, and also of the department. However,
unless the other provincial education departments drastically
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improve their action plans and follow the exceptional example set by
the Western Cape Education Department, WCED ... [Interjections.] ...
the expansion of ECD will not happen as it is planned by the
department. [Interjections.] As a national co-ordinating body, the
department ...
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon member, please take your
seat. Yes, hon Deputy Minister?
The DEPUTY MINISTER OF TRADE AND INDUSTRY (Mrs T V Tobias): I want
to find out whether the hon member will take a question.
Mr D C SMILES: Sorry, I’m not taking a question. [Interjections.] As
a national co-ordinating body ...
The HOUSE CHAIRPERSON (Mr C T Frolick): Order, hon members!
Mr D C SMILES: ... the department must urgently recommend that
struggling provincial education departments learn from the WCED ...
[Interjections.] ... when it comes to ECD. [Interjections.] The WCED
has already achieved its ECD universal access targets, and to some
degree exceeded those targets. [Interjections.]
Our concern, which coincides with that of the Portfolio Committee on
Basic Education, stems from a lack of competent ECD teaching staff,
as well as a lack of quality learning materials and other relevant
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resources that must be provided for Grade R learning and teaching.
[Interjections.] The Department of Basic Education has identified
that this is a major obstacle to their delivering on ECD. However,
the plans do not adequately address this problem. As my colleague
indicated, the plans are incremental in nature. Let me explain.
Thousands of learners with disabilities of school-going age are not
in schools - thousands of them! Why? It is because ...
[Interjections.] ... the Department of Basic Education has an
incremental approach towards implementing White Paper 6 of 2000 on
inclusive education. [Time expired.] [Applause.]
Ms N GINA: Hon Chairperson, hon Ministers, hon Deputy Ministers
present in the House, hon Members of Parliament, distinguished
guests in the gallery, ladies and gentlemen, I greet you all.
Education is indispensable to social and economic development and to
the future of our youth. Education in our country was used as an
instrument of subjugation. Now we want it to be an instrument of
liberation and empowerment.
With education we can advance the ideals of our Constitution. We can
promote democracy, nonracialism, nonsexism, decent standards of
living and security for all, and fight inequality. The National
Development Plan, NDP, is a long-term strategic plan of what the ANC
government wants to achieve by 2030 to ensure that all South
Africans attain a decent standard of living through the elimination
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of poverty and reduction in inequality. Among the core elements of a
decent standard of living identified in the NDP is education.
Allow me, Chairperson, to touch on the issues raised by hon Lovemore
when she came up here and had the guts to talk about radical and
massive change when it comes to educational issues. As I was sitting
there, I was wondering what hon Lovemore was talking about? What is
the definition that she can put when she talks of massive change? As
me, I was wondering, because in the Western Cape, where the
Department of Basic Education is under the leadership of her party,
we find unprocedural processes of closing down schools.
[Interjections.] You have to listen, that is why I said unprocedural
processes of closing down schools when it comes to the department of
basic education in the Western Cape.
I was asking if that is the massive change that hon Lovemore was
talking about. When you go around the Western Cape and visit farms
owned by most of the people coming from her party, we find that
learners experience unconducive conditions. If you ask, who are
those learners going to those schools? Most of the time those are
the children of farm workers, and I then ask myself, is this really
the massive change that hon Lovemore is talking about? [Applause.]
If it is so, I do not think that is the change that we need to
follow as a country.
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The question of creating a caring and supporting learning and
teaching environment for learners and educators is at the core of
our efforts to ensure access to quality education for all. This
speaks directly to our task of addressing health, social and
emotional barriers that prevent learners from participating fully in
teaching and learning activities. The ANC believes that every school
should inspire learners and educators to want to come to school and
learn and teachers to teach to the best of their potential.
We debate this Budget Vote against the backdrop of three disturbing
events, where satanic activities claimed the lives of children in
schools; increased incidents of bullying, and, where we saw learners
leaving their classes to join protest marches or service delivery
protests. As the ANC, we condemn such behaviours and wish that
learning should take place unhindered and in a caring and supportive
environment. We strongly call for that since education has been made
a societal issue in our country. Let us see all communities making
sure that education is treated as a priority and a societal issue.
When hon Mpontshane came to speak on the podium today, yes, he
delivered a very good speech ... [Applause.] ... but I was concerned
again ...
... ukuthi kanti umuntu usheshe akhohlwe ngale ndlela. Uma
umhlonishwa uMpontshane ekwazi ukuma impela phambi kwezakhamuzi
zonke zaseNingizimu Afrika akhulume, agxeke ukuthi ezemfundo
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ziqhutshwa kanjani, okwenzeka ezikoleni aphinde akhulume nangezinto
ezithinta izakhiwo zezikole.
Ngiyafisa ukumkhumbuza umhlonishwa uMpontshane ukuthi mina naye
singavumelana kulokhu ukuthi sivela esiFundazweni saKwaZulu-Natali
lapho inhlangano yakhe ibuse khona iminyaka eminingi. Ngonyaka we1994 uma uKhongolose ethatha umbuso, isimo esizifice zikuso
ezemfundo kulesiya sifundazwe kube yisimo esishaqisa igazi. Kodwa
njengamanje ngiyafisa ukukhumbuza umhlonishwa ukuthi yimaphi
amagxathu asenzekile la, nalapho kubonakala khona ukuthi ngempela
ukhona uhulumeni wabantu futhi uyazilungisa izinto ezinjalo?
[Ihlombe.]
Kukho konke ngiyafisa uma umhlonishwa uMpontshane ekhuluma
nangokwenatshiswa kwezinsiza uma kufundiswa, ngingabalula isigameko
esisodwa ngaphansi kohulumeni wenhlangano yakhe wawubona ngomgwaqo
omuhle owenziwe obonisa ukuthi uya esikoleni lapho mhlawumbe
kunenkosikazi yomholi wenhlangano yakhe. Ubone ukuthi yiwona mgwaqo
owenziwe. [Ubuwelewele.] Yilapho ngizibuza khona ukuthi yikho yini
lokhu ukusatshalaliswa kwezinsiza zokufundisa lezi akwazi ukuzoma la
akhulume ngazo. [Ubuwelewele.] (Translation of isiZulu paragraphs
follows.)
[... that a person easily forgets. Can hon Mpontshane can actually
stand in front of all South African citizens, and criticize the
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processes of the Department of Education and further touch on the
schools infrastructure?
I wish to remind hon Mpontshane - and he can agree with me - that we
both come from the province of KwaZulu-Natal, where his party ruled
for many years. In 1994 when the ANC took over, the state of the
educational system in that province was shocking. I now wish to
remind the hon member about the stages that have unfolded here which
prove that indeed there is a democratic government and it is fixing
such things. [Applause.]
In all that has been said, I wish that when hon Mpontshane talks
about the distribution of educational resources, I can mention one
incident under the leadership of his party, and that is that you
would find a tarred road leading to a school where there was perhaps
a wife of a leader of his party teaching at that school. And that
would be the only tarred road. [Interjections.] That is when I asked
myself if that was the kind of distribution of educational resources
that he stood up here to talk about. [Interjections.]]
Mr A M MPONTSHANE: Chairperson. Chairperson ...
The HOUSE CHAIRPERSON (Mr C T Frolick): Order, hon members! Hon
member, will you take your seat please.
Mr A M MPONTSHANE: Chairperson ...
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The HOUSE CHAIRPERSON (Mr C T Frolick): Yes, hon member.
Mr A M MPONTSHANE: Chairperson, is the hon member comparing this
with the Nkandla development?
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon member, that is not a
point of order. Continue, hon member.
Ms N GINA: Thank you, Chairperson, sexual violence has imposed
itself as an evil force against women and children that keep
disrupting the peaceful fabric of our society. Recently, we have
been shocked by an incident where learners videotaped themselves
having sex in a classroom. We believe that this is an indication of
a much deeper societal issue, to which even young people, who were
not directly affected by a system that taught us not to value
ourselves, seem to ascribe very little value in terms of who they
are as persons.
We believe that part of the problem is that sexual harassment and
violence are currently far too common on our streets, homes and in
our schools. The ANC condemns all these evil acts and is fully
committed to eradicating this scourge. Our goal is to eliminate all
forms of unacceptable behaviour. We believe that men and women, boys
and girls, should be treated as equals and with respect, and be
cared for in terms of our Constitution.
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Our teachers are placed in a strategic position to identify and
manage cases of sexual abuse. As such, for the 2013-14 financial
year the department has planned training for teachers on how to go
about this undertaking. The handbook called Speak Out has been
written especially to help our precious youth to handle any sexual
abuse they may encounter while at school or at home. This handbook
will help them understand what sexual harassment and violence is so
that they are quickly able to recognise and act on it. The handbook
will also guide them regarding steps they must take so that the
person guilty of sexual abuse is forced to stop and face the
consequences of their unacceptable behaviour. In addition, the
handbook also provides an extensive list of useful contacts, which
will also help to connect learners to people who are specially
trained to assist them with handling sexual harassment or violence.
For the 2013-14 financial year, we are proud to see that the
department is linking 4 000 additional schools with their local
police stations to establish a database of all linked schools as
well as train school safety committees. The department will be
making a transfer payment of R50 000 to Childline South Africa to
assist the department with cases. In addition, we have set aside an
amount of R241 000 for psychosocial support cases, and approximately
R1,5 million for social cohesion and equity in education.
We are still faced with the reality of communities that thrive on
illegal drugs. Research reveals that the number of young people
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using tobacco and alcohol is increasing. We believe that drug
dealers target learners in order to further their criminal acts,
which corrode the fabric of our society. In our view, the use of
alcohol and drugs by learners compromises teaching, learning and
safety in schools. For instance, we know that the use of drugs by
learners has serious scholastic consequences such as poor academic
performance, absenteeism, and even places learners at high risk of
dropping out of school.
We appreciate and commend the department for coming up with a draft
National Strategy for the Prevention and Management of Alcohol and
Drug Use Amongst Learners in Schools. We believe that the
implementation of the strategy will, amongst other things, ensure
that schools are alcohol- and drug-free zones; learners have
increased knowledge of life skills and the confidence to decide
against the use of these substances; that they will be able to
manage alcohol and drug use problems to enhance learning outcomes
and the retention of learners.
The government of the ANC has made massive strides in dealing with
HIV/Aids in South Africa. We have expanded access to counselling and
medication for those affected and infected by HIV. As a result, many
families have been somewhat relieved of complexities associated with
HIV/Aids. We further commend the department for providing life
skills education materials for training teachers and ensuring that
we have functional school-based support teams. For the 2013-14
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financial year, the department has set aside an allocation to be
used in terms of the Department of Basic Education’s Draft
Integrated Strategy on HIV, STIs and TB.
The department also plans to review the 1999 policy on HIV/Aids that
currently exists in order to boost the notion of schools as centres
of care and support. We believe that the notion of care and support
is an appropriate vehicle for taking our efforts foward towards
quality education for all.
Ngesintu sike sithi umhlola uyakhuzwa. Uma kunento eyisimanga
eyenzekayo kuphuma wonke umuntu ababaze ukuze umhlola ubaleke. Nathi
njengamanje siyinhlangano kaKhongolose sithi umhlola esiwubona
uqhubeka ezikoleni nasemphakathini wethu othinta kakhulu ukukhula
kwabantwana bethu bamantombazane abasakuleli zinga lokuba
ngamatshitshi. Umhlola lowo okudingeka ukuthi siwukhuze. Sithi
emphakathini, asivikeleni izingane zethu.
Okubuhlungu kakhulu-ke engifisa ukukusho ukuze kubonakele ukuthi lo
mhlola uKhongolose uyawukhuza ngempela yilapho kutholakala ukuthi
kukhulelwe umntwana wesikole osesemazingeni aphansi. Uthole ukuthi
uthisha, lo umzali athathe ingane wayoyibeka ezandleni zakhe,
uyathinteka kulowo mhlola owenzekile. Cha, lapho ngiyababaza
ngiyakhuza ngithi, sizwe esimnyama ake siwukhuze umhlola.
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Sithi kothisha bethu abantwana bethu beze ezikoleni ngoba befuna
ukunakekelwa. Asikwazi ukuthi sinithole nithinteka kulezo ziga
ezinjalo. Nawo wonke umphakathi okhona sithi kuwo, uma umntwana
oneminyaka eyi-16 ekhuleliswa uwena baba oneminyaka engama-50 kuya
phezulu. Siyabuza ukuthi siyaphi siyisizwe sase-Afrika? Umhlola
lowo! Sithi asibambisaneni sonke wonke umuntu azi ukuthi
silungiselela ikusasa lethu. Akube yinto esithi siyagcina ngayo
ngeke siyibone iphinde yenzeka. [Ihlombe.] (Translation of isiZulu
paragraphs follows.)
[In the African tradition, when a disgraceful act occurs something
is done to chase it away. If an evil act has befallen someone, all
members of the community come together and speak against that evil
action. As the ANC, we are also saying that what we see happening in
our schools and in our communities, which mostly affect our
adolescent girls, is a disgraceful act. This is an evil act that we
must disapprove of. We are saying to the communities, let us protect
our children.
The most painful thing that I wish to mention, so that it is clear
that the ANC disapproves of this disgraceful act, is an incident
where a school-going child in foundation phase falls pregnant and
you find that the teacher whom the parent has entrusted with her
child is the culprit. I am expressing my strong disapproval of this;
let us come together as Africans and speak against this disgraceful
act.
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To our teachers we are saying: Our children are attending school
because they need to be taken care of. You cannot be involved in
such incidents. From the community at large we want to know, where
are we going as Africans if a 50-year-old man impregnates a 16-yearold? That is a disgraceful act! Therefore we are pleading with you
that we work together and everyone must know that we are doing this
for our future. Let this be something which we can say has happened
for the last time and will never happen again. [Applause.]]
We are mindful of the fact that as South Africa we have made
significant progress since 1994 towards achieving gender parity in
basic education. In fact we have gone beyond achieving gender parity
to the extent that girls are now in the majority in terms of
enrolment in secondary schools. Again, we are also mindful of the
fact that, as South Africa, when it comes to access to basic
education, we have exceeded the target that we have set for 2020,
the 80% target.
Okungiphatha kabuhlungu uma ngizothinta leyo ndawo, khona manje kade
sinomhlonishwa u-Smiles ovela enhlanganweni eseceleni kwami. La
umhlonishwa bethi unongabazane ngokuthi njengezwe sizokwazi ukufika
emigomeni esazibekela yona yama-80% yokuqeqeshwa kwabantwana
besesemazingeni aphansi early childhood development, ECD.
Ngiyafisa ukuthi ngikuqhakambise lokho ukuthi, mhlonishwa Smiles,
kuyokusiza ngesinye isikhathi ukuthi ufunde izincwadi esizitholayo
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ekomidini, ulalele uma unqena ukufunda ngoba njengamanje siyizwe
laseNingizimu Afrika sesiwudlulile ngisho umgomo wama-80%.
[Ihlombe.] Njengamanje uma sikhuluma ngokuthi abantwana bethu
bafinyelela kanjani ku-ECD, sesikudlulile saze sagamanxa kukhona.
(Translation of isiZulu paragraphs follows.)
[I am very sad now that I am going to touch on the same issue that
we have just heard about from hon Smiles, from the party next to me.
This hon member was saying that he doubted that we would meet the
target of 80% that we set for ourselves for the training of our
children in early childhood development.
I wish to highlight this for hon Smiles. It will help if you read
the letters we receive from the committee, or to listen if you are
too lazy to read, because right now, as South Africa, we have
exceeded the target of 80%. [Applause.] Right now, when we talk
about how our children can access ECD, we have exceeded that.]
We are standing at 93% when it comes to access of our learners to
ECD placing. Yes, I will agree ... [Interjections.] Okay.
ILUNGU ELIHLONIPHEKILE: Ukufunde encwadini kwawena lokho!
[Ubuwelewele.]
Nk N GINA: Ngiyajabula sihlalo uma umhlonishwa ethi ngiyifunde
encwadini ngoba kusho ukuthi yena konke akushoyo usuke ekubonile.
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Angazi-ke ngoba noma siphuma siya ngaphandle besiphuma naye
umhlonishwa u-Smiles senza konke. (Translation of isiZulu paragraphs
follows.)
[An HON MEMBER: You must also read this for yourself!
[Interjections.]
Ms N GINA: I am happy, Chairperson, if the hon member says I must
read this, because it means that whatever he says is something that
he has read. I do not know though, because when we went out there
with hon Smiles we all did everything.]
So, when it comes to other challenges, yes, we can agree that we
still need to do more. We still need to make sure that the ECD
practitioners are well trained. We still need to make sure that the
curriculum is well developed. But even at the same time, we would
like to commend the Minister’s department. We see for the first time
learner workbooks being provided for that section of our education.
[Applause.] That is the basics of our education. That is where we
all agree that we need to intensify and make sure that we lay a
solid background for ECD, and we are seeing great strides towards
that.
Sometimes it is very disturbing to see a person coming here to
grandstand whilst knowing very well that much progress is being made
when it comes to that. The total budget set aside for the 2013-14
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financial year for this branch, branch number five, for social
activities for basic education is R5,187 million ...
[Interjections.] ... yes it is too big. [Laughter.] The bulk of that
budget is earmarked for the National School Nutrition Programme
Conditional Grant, NSNP. The NSNP grant caters for our learners’
meals. The NSNP has already reached over eight million learners and
is currently in more than 20 520 schools nationally in quintiles 1
to 3 primary schools and quintiles 1 to 2 secondary schools.
The programme has been extended to include quintile 3 secondary
schools in the 2011-12 financial year. We need to stand tall in
acknowledging the huge impact the programme is making. The spin-offs
from this programme are huge. For instance, when we look at the
spin-offs from this programme, we see a huge drop in the drop-out
rate of learners, because we understand that learners cannot go to
school hungry. This is one of the benefits we get from this huge
programme the department has come up with.
The project has become the trademark of healthy eating in our
schools through offering quality meals. This programme has created
jobs for thousands of food handlers and continues to empower small,
medium and micro enterprises that are service providers at our
schools. While our children are getting healthier, more jobs are
being created and the local economies are growing. We now have few,
if not no, cases of nonfeeding across the country. However, we
commend the Minister for the launch of the department’s partnership
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with one of the big businesses, Tiger Brands, in the initiative to
provide breakfast to our learners. This has also shown much fruit
being reaped from that.
The level of latecoming has dropped, because learners know that in
the instances where this initiative has been started, they get
breakfast, which compels them to arrive at school early. Thus the
fruits we envisage are that more quality education is going to be
received in our schools.
Lastly, there is the issue of sports. When it comes to our schools,
we need to commend the Department of Basic Education for the brave
stance they have taken in making sure that physical education and
sport are part of the curriculum at school. We urge the Department
of Sport and Recreation to come on board and make sure that they
cater for that. We further urge municipalities out there to make
sure that sports grounds are provided for education. That is one of
the strides that the department has made when it comes to these
social responsibilities of theirs.
All in all, we need to applaud. It has never happened before in
history that we look at these activities, which are more than the
core duties of education, being performed the way they are. I think
that the department, led by Minister Angie Motshekga, should be
applauded when it comes to these activities in our schools.
[Applause.]
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Since I have a minute left, allow me, Chairperson, to respond again
or to comment on what hon Mfundisi came up here to say today.
Bab’uMfundisi, kuhle ukuthi uma ugxeka, ugxeke ube wazi ukuthi
okugxekayo kuyiqiniso kangakanani. Ukuma kwakho la uzokhuluma
ngezikole ezingakhiwe - ngiyajabula ngoba siwuKhongolose ... [Mr
Mfundisi, it is good that when one criticizes, one should know the
facts about what one is criticizing. For you to come up here and
talk about schools that have not been built - I am happy because, as
the ANC ...]
... we do acknowledge that we still have shortcomings, but...
... umsebenzi awumile kangangokuthi ayisekho into eyenzekayo.
NoNgqongqoshe naye ukwazile ukuma la abe nesibindi sokukusho lokho.
Kodwa engifisa... [Ubuwelewele.] [... the work is not standing still
to the extent that
nothing is happening. Even the Minister was able
to stand here and be brave enough to say that. But I wish ...
[Interjections.]]
The ANC supports this Budget Vote. Thank you. [Time expired.]
[Applause.]
The MINISTER OF BASIC EDUCATION: Chairperson, in closing, let me
thank all members who have participated in the debate and say that
their perspectives have indeed enriched our work. However, let me
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also acknowledge and recognise the presence of Mr Sizwe Nxasana, the
chief executive officer, CEO, of FirstRand Bank Limited and also the
chairperson of Xanax Foundation and Mr Godwin Khosa, the CEO of Jet
Education Services.
I’m recognising these two gentlemen in particular because they are
at the heart of the education collaboration framework we have put in
place. We would like to come and inform the portfolio committee on
this very important initiative, which is a response to the call made
in the National Development Plan for intersectional co-operation to
improve educational outcomes in working with various stakeholders.
This follows the dialogue we convened in December which will
implement targeted programmes that include districts as systematic
change interventions. Therefore, thank you very much, Mr Khosa, and
Mr Nxasana for coming. [Applause.]
Just to respond quickly to the matters raised by colleagues on the
left. It is quite sad and very disappointing that organisations that
one takes seriously don’t seem to take themselves seriously. They
peddle rumours, put unsubstantiated matters forward and do what
we’ve removed - rote learning. One says to the nation, here are the
challenges and here is the progress and they distort it; here are
the challenges, minus the progress, and this is very sad. There is
nothing new that has been said which we had not said.
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Hon Lovemore, these documents – I think it is also very important
for us to learn quite quickly – about the vision of our education
system are contained in the correct South Africa Schools Act
documents. These documents tell you what the vision of education is.
I don’t know whether you want to see it everywhere and on everything
we have written. The targets are contained in your delivery
agreement. Perhaps the reason why you are unable to really recognise
those targets is because we have reached and surpassed them. That is
why you don’t see them. They are in your delivery agreement; go and
look for them.
It is very sad that we publish reports to inform South Africans
about progress in the spirit of transparency and accountability, but
what happens? These are the challenges; these are the challenges; we
can’t deal with rote learning. Let us not be parrots. Let us come
with fresh ideas. We are looking forward to them. However, it is
quite sad to be on the left and I pity those who left home to go to
the left. You can see they are just as wounded as those on the left.
Come back, because this is sad and you are going to find yourselves
being parrots and repeating things. [Interjections.]
The HOUSE CHAIRPERSON (Mr C T Frolick): Order, hon members!
The MINISTER OF BASIC EDUCATION: In closing, I must say that
overall, South Africans have a government which knows the schooling
system well, that learns from national and international experience
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when reporting on its successes and is brave and honest enough to
acknowledge the significant challenges that it faces. All South
Africans should take pride in that. In the last few years, both
national and international data - not me – pointed to the fact that
we are on the upward improvement path. The choices we have made over
the years have not always been easy. However, on the whole they have
been right ones and we are beginning to enjoy the fruits of our
efforts.
International results, not me, confirmed that there were significant
improvements in maths and science in 2011. That is why they are not
talking about it; because it is something positive. If it was
negative, they would be hopping up and down, saying, yes, you have
not improved. We have improved. [Applause.] South Africa’s
improvement is seen in terms of the largest learner performance
improvement compared to other countries in the last decade. We have
improved the number of enrolled learners and doubled the number of
matriculants. We are on track. When you talk about textbooks, say
where we were. In 2007, our rate of delivery was at 45% and in 2011
we exceeded 80%. [Applause.]
Mr Madisha, when we procured textbooks in Limpopo, we saved almost
R800 million without putting it in any plastic bag. It went back to
Treasury. [Laughter.] There are better policies and teacher
development plans. I think my colleagues have said it; let us not
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tan all teachers with the same brush. We have good teachers who have
produced distinctions that we are proud of.
In the past, when I was a teacher, I had a learner who had 4
distinctions. This learner was made to repeat matric because an
African child could not get distinctions. Under this government,
thousands of distinctions are obtained and we celebrate when black
learners pass. We don’t ask them to repeat because we don’t believe
that black learners cannot pass. [Applause.]
Therefore, we are saying, rather than doing rote learning and taking
challenges minus successes, let us be honest and say, indeed, under
this government, the future is bright and tomorrow will be even
better than today. So, hon members, I thank you very much. I wish to
say to South Africans, long live the ANC! Long live!
[Interjections.] [Applause.]
Debate concluded.
ADDRESS BY PRESIDENT OF FEDERAL REPUBLIC OF NIGERIA, G E JONATHAN,
AT JOINT SITTING
(Announcement)
The HOUSE CHAIRPERSON (Mr C T Frolick): Order, Order! I wish to
remind members that His Excellency President G E Jonathan, the
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President of the Federal Republic of Nigeria, will be addressing a
Joint Sitting of both Houses at 14:00.
The debate on Vote No 28 - Economic Development is scheduled to
commence at 15:30 this afternoon.
Business suspended at 12:57 and resumed at 15:32.
APPROPRIATION BILL
Debate on Vote No 28 – Economic Development:
The MINISTER OF ECONOMIC DEVELOPMENT: House Chairperson, hon members
and invited guests, I have the honour to present the fourth budget
of the Economic Development Department. Given our responsibility to
integrate efforts across different departments on economic
development, our success lies in its collaboration with other
Ministries and spheres of government.
In these opening remarks to the debate, I will draw attention to the
substantial progress made in the economy over 19 years of ANC
governance. I will point at the successes of this administration in
recovering from the recession we inherited in 2009 due to the global
economic crisis. I will share our progress to develop policy
coherence in the past year to improve infrastructure construction
and use it to promote skills and industrialisation; to expand
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funding; to refocus competition and trade policy on jobs; to
facilitate new investment in the economy; and of course the steps we
are taking to improve small business and youth employment.
In short, I will make the point that we have solid achievements,
whilst acknowledging the many challenges that we face. I welcome
members of the public in the gallery who represent the human faces
behind the economic achievements. [Applause.]
Hon members, in 50 weeks’ time, we will be celebrating 20 years of
democracy. The economy we inherited in 1994 was broken,
characterised by low growth and weak job creation. More
fundamentally, it was structured to serve the needs of some rather
than all. It focused on the needs of corporations rather than
people. In contrast, we have created an inclusive economy seeking to
address the needs of all South Africans, 51 million people, not
merely 4 million.
What is our record? Gross domestic product, GDP, growth is up. In
the 19 years before 1994, annual growth was 1,6% compared to 3,2%
annually in the 19 years since. This is despite the global economic
recession. The value of our gross domestic product today, the value
of our economy, is R3,2 trillion, 83% larger than in 1993. This is
stewardship under four ANC administrations. This is how democracy
has outperformed apartheid on the metric of growth. But, growth must
create jobs and equitable development.
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Prior to 1994, hon members, there were between 8 and 9 million
employed South Africans. Today, we have more than 13,6 million
employed people. More than 4 million new jobs were created under the
democracy. Under this administration, we developed stronger planning
and policy cohesion. The National Development Plan provides the
country’s vision for overall economic and social development;
integrating policies; demographic shifts; governance and state
capacity issues into a coherent framework. It is complemented by
government’s economic strategy, the New Growth Path, NGP, and the
detailed plan set out in the Industrial Policy Action Plan, Ipap,
and the National Infrastructure Plan.
We are now in action mode, as President Zuma remarked in January:
Some of the key programmes of the National Development Plan are
already being implemented. These include the New Growth Path
Framework with its major infrastructure development programme as
well as the state-led industrial policy.
Yesterday, hon members, Statistics SA released its latest employment
data. It shows that employment has begun to grow again with the gain
of 44 000 new jobs in the first quarter of 2013. Over the 12 months
up to the end of March this year, nearly 200 000 new jobs were
created in difficult domestic and global circumstances. The biggest
job gains were in agriculture, followed by manufacturing and
community services.
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These figures show that our transformation policies are having some
success despite the headwinds from the global slowdown. But,
unemployment levels are still stubbornly high. Our task is to
consolidate these gains and accelerate job growth for unemployment
constitutes the biggest economic challenge for the country. We must
begin to see a decline in the levels of joblessness. That is the
task that we have taken on through the New Growth Path.
Consider, hon members, that from October 2010, when the NGP was
adopted, to date 646 000 new jobs were created – additional jobs. Of
these, 366 000 new jobs were created for women, 57% of all the jobs
that were created. [Applause.] As South Africans, we need to bank
these positive trends and commit to do more. Our GDP has recovered
from the 2009 recession and is now R750 billion higher in current
rands, or 9,4% in real terms, than at the low point of the
recession. The economic output of no less than 38 other countries,
including the UK, Holland, Spain, Italy and Portugal, are still
lower than what they were before their recessions.
I wish to welcome and acknowledge one of our visitors today, Richard
Matsomela. [Applause.] He is a worker at the BMW factory in Rosslyn.
He was placed on special training financed through the Training Layoff Fund, one of the new tools created by government in 2009 to
respond to the recession. Production recovered at BMW, the company
expanded and Richard now again works on the assembly line for the
new three series BMW made in South Africa and exported to the rest
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of the world. [Applause.] This is active partnership with the
private sector and organised labour.
The New Growth Path mapped out a labour-absorbing economic
trajectory. Under the infrastructure jobs driver and through the
leadership of the President, we developed a National Infrastructure
Plan, co-ordinated by the Presidential Infrastructure Co-ordinating
Commission, PICC, to which the Economic Development Department
provides technical support. We made real progress in laying the
physical platform for growth and development over the past year,
working with Minister Nkwinti and other members of the management
committee. What is the outcome? Construction levels are up. Visitors
in the public gallery illustrate what our programme is doing.
I would like to recognise Ms Elakanyani Ndlovu, a 30-year-old
African female electrical engineer ... [Applause.] ... who is part
of a team building one of the world’s largest coal-fired power
stations, Kusile, near Witbank in Mpumalanga. [Applause.] Ms
Kedisaletse Maseko, another member of the gallery, is a welder
employed on the new locomotive build programme in Koedoespoort.
[Applause.] I would also like to welcome Mr Thomas Solomon, who is a
contractor who lays tar on roads in the Western Cape. [Applause.]
They are part of more than 150 000 workers currently on PICCmonitored construction sites across the country building roads,
power stations and dams; deepening our ports; building schools;
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laying broadband cable; manufacturing components; and changing the
spatial patterns of the past.
The project pipeline for the new infrastructure projects has been
developed into the 20-year R4 trillion plan, a blueprint for our
generation. Spending levels are up too. Indeed, during this
administration, when we complete our mandate, we would have spent
roughly R1 trillion on infrastructure - not budgeted for, not on our
books, money that would actually have been spent - compared to half
that sum in the previous five years, and substantially more than in
the last five years of apartheid. Even when adjusted for inflation,
this is a remarkable achievement.
We now monitor every quarter how much has been spent; what
construction has actually taken place; and how many people are
employed in construction projects. That portfolio of projects is
worth R900 billion. Working closely with Minister Gordhan through
the PICC, R19 billion in new money or reprioritised resources were
identified for infrastructure projects over the next three years,
integrated governance. State capacity challenges, including those
identified in the National Development Plan, as articulated by
Minister Manuel, are being addressed; including improved
environmental processes, the work of my colleague Minister Molewa
and the new Infrastructure Development Bill recently released for
public comment.
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Hon members, we need to bring the cost of infrastructure build down.
Private sector collusion and price-fixing cost the state many
billions of rands in previous infrastructure projects, including the
2010 World Cup stadiums’ build. The competition authorities have
identified 300 cases of irregular and illegal behaviour by the
private sector in the construction industry on projects valued at
about R47 billion. Eighteen construction companies, including the
top six firms, have now confessed and are in discussions on
settlement with the competition authorities. We are determined to
ensure that we develop an affordable infrastructure build programme
and that our tax rands do not improperly find their way into private
pockets. The competition probes extend wider than infrastructure and
include input costs across the economy to improve competitiveness
and reduce costs for consumers.
Following discussions with Minister Motsoaledi, I am pleased to
announce that the Competition Commission will conduct a market
enquiry into the private health care sector. As ordinary South
Africans will know, private medical care is becoming unaffordable.
The enquiry will use the new powers under section 6 of the
Competition Amendment Act of 2009 and will examine the pricing,
costs and the state of competition in the sector. It is expected
that the enquiry will commence before the end of September this
year. The authorities are ensuring that public interest tests in our
law are met when companies acquire existing operations.
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I would like to welcome Mr Emmanuel Motumi. [Applause.] He is one of
a few hundred workers reinstated by the Competition Appeal Court at
Walmart following its purchase of a local retailer. Government’s
efforts led to the Competition Appeal Court ordering the creation of
a fund of up to R240 million for local supplier support by Walmart.
The judgement expanded competition jurisprudence and ensured that
the central economic imperative of our time, namely jobs and local
industrial capacity, is pivotal to competition policy. It
demonstrates our commitment to policy integration and coherence.
Trade policy is being harnessed to support infrastructure roll-out
and to support agroprocessing industries that are infrastructure
users. They range from poultry to tomatoes. More will, however, need
to be done to support farming jobs and agroprocessing as part of our
food security strategies.
The Ports Regulator has introduced a differentiated port tariff that
encourages the export of manufactured goods rather than raw
materials. We earlier heard the President of Nigeria talking about
an Africa that no longer exports raw materials to others. These are
the steps we are taking to begin to turn that around in our own
country, South Africa. We are using the infrastructure programme to
address skills and industrialisation challenges. We now have a
skills model for all major infrastructure projects over the next
20 years, developed through working closely with Minister Nzimande
and Minister Nxesi; the engineering industry; the construction
regulator; and the private sector.
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Hon members will be pleased to know that, for example, with the
Umzimvubu Dam in the Eastern Cape, we can now quantify the number of
bricklayers, carpenters, engineers, plumbers and so on, that we need
for every quarter of the five-year build programme. This will help
universities and further education and training, FET, colleges to
plan their student intake and the graduate output. On
industrialisation, EDD has worked with Minister Davies and Minister
Gigaba on measures to provide a major boost to local manufacturers
through the infrastructure roll-out programme. It is about the
Proudly South African programme and Buy Local programme. State-owned
companies deepened their supplier development plans.
In complementing these efforts, because we’ve got to integrate the
different things we do. The Industrial Development Corporation, IDC,
has set up a localisation unit and increased its five-year plan for
industrial funding that’s available to R102 billion. Over the past
two years, the IDC increased actual funding approvals substantially
to about R27 billion. So, it’s not plans on paper, the money is
beginning to flow through the investment pipeline. This is
48% higher than the previous two years. We have success stories out
of these interventions. In the past, for example, we imported buses
for the infrastructure roll-out of inner city public transport. We
drove in a recently acquired bus in Johannesburg, and chances are
that it was made in Brazil.
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Last year, to implement the Local Procurement Accord, new policies
were introduced. They led the cities of Johannesburg and Cape Town
to order 240 locally assembled buses. I would like to welcome
Ricardo Truby, who is with us today. Welcome, Ricardo! [Applause.]
He is a production line worker for the Cape Town buses, where the
IDC provided bridging finance. The first locally assembled bus for
Johannesburg will come off the production line in June 2013 from a
Germiston factory. This is real progress with industrialisation.
[Applause.]
Hon members, when this administration came into office, all our
minibus taxis were being imported. Today, two taxi assembly plants
have been set up by Toyota and Beijing Automobile Works, BAW. I wish
to recognise Ms Brenda Smith, who is with us today. [Applause.] She
is a supervisor on Toyota’s new taxi line. [Applause.] Hon members,
through the work that she and others are doing in the taxi industry,
by 2015, two out of three new minibus taxis will have been assembled
here in South Africa. [Applause.] This too is real progress with
industrialisation.
The country will expand its rail transport very significantly in the
next 20 years. The IDC is working with companies in the sector to
use a R198 billion procurement to build coaches, locomotives and
wagons, and create local jobs. We have already landed one export
contract to supply trains to Mozambique. These success stories in
transport – because I have taken a few transport ones - are
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replicated in other parts of the infrastructure programme, such as
the new condenser unit commissioned from a local company for the
Kusile Power Station. Working with Minister Peters, we plan to
improve the localisation impact of wind and solar energy, so that
green energy creates local jobs. The industrialisation drive is at
the centre of our work.
Last year, the IDC concluded a R3,4 billion deal to take majority
ownership of Scaw Metals Group, a large diversified manufacturer of
steel products for the infrastructure sector and industry. It
employs 7 000 workers. It is the only producer of locomotive frames
in southern Africa. When Anglo American Corporation decided to
divest from the asset, we ensured that this critical national asset
was placed in local hands rather than asset stripped and closed
down. I am pleased to have Ms Patricia Mashigo, an artisan and
production team leader at Scaw Metals Group present today, together
with Group Manager, Mr Paul Zinn. [Applause.]
Scaw Metals Group operations in South Africa have a crude steel
production capacity of about 600 000 tons per year. It has
manufacturing operations in Canada, Australia, Italy, Namibia,
Zimbabwe and Zambia, which also serve as important distribution
channels for its products. A sophisticated industrial strategy, as
outlined in the Industrial Policy Action Plan, requires the
injection of foreign and local capital, know-how and innovation. I
would like to offer a few examples of progress we are making.
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Asia’s largest commodities trading company, Noble Resources, is the
main investor in one of two advanced soya-crushing plants under
construction. In the past twelve months, the company invested about
R2,2 billion in the local economy. I acknowledge the presence of
Mr Ronald Jettin, the local chief executive officer, CEO, of the
company who is here with us. [Applause.] Later this week I will host
the senior management of the company to consider additional
investment in South Africa.
We attracted Turkish investment in the manufacturing of stoves in
East London, the Defy plant, and to restart the Cape Town-based
steel mill Cisco in August this year with a R250 million investment,
which points to a growing appetite by investors to manufacture goods
in South Africa. I would like to welcome Mr Turanli, the President
of the new shareholding company of Cisco, who flew in from Turkey,
and the Turkish Ambassador, Kaan Esener, who is with us today.
[Applause.]
Hon members, these efforts are supported by greater beneficiation of
our natural resources. In July this year, the largest manganese
sinter plant in the world, backed by the IDC, will open in the town
with the quaint name of Hotazel in the Northern Cape. I welcome the
major shareholder, Ms Daphne Nkosi, whose company will be producing
2,4 million tons of manganese sinter for ferromanganese smelters.
[Applause.]
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Hon members, following public consultation, I have decided to issue
a trade policy directive in terms of section 5 of the International
Trade Administration Act to limit the export of scrap metal so that
this resource ... [Interjections.]
The CHIEF WHIP OF THE OPPOSITION: House Chairperson, I have a point
of order. I think the hon Minister has forgotten the name of the
Guptas on his donors list. [Laughter.]
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon member, that is not a
point of order. Let us avoid frivolous points of order.
The MINISTER OF ECONOMIC DEVELOPMENT: I will encourage the hon
member to ask the leader of his party what the nature of her
relationship is in that case. [Applause.]
Hon members, following public consultation, I have decided to issue
a trade policy directive in terms of section 5 of the International
Trade Administration Act to limit the export of scrap metal so that
this resource is used in South African foundries and steel
factories, saving energy, creating local jobs and promoting
infrastructure development. To strengthen regional integration,
manufactured exports to the rest of Africa rose by about R20 billion
or 21% in this past year, now accounting for more than 90 000 jobs
in South Africa.
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Tomorrow, we will be hosting the World Economic Forum Africa Summit
here in Cape Town, and this follows the successful Brazil, Russia,
India, China and South Africa, Brics, Summit hosted by President
Zuma six weeks ago, wherein we announced the establishment of a
Brics-led development bank and signed a number of partnership
agreements with Brics countries and investments.
Hon members, the New Growth Path calls for greater economic
inclusion, through small business development and youth employment.
Today, 1,6 million more young people under the age of 35 are working
than in 1995, and school and university enrolments are dramatically
higher, as even critics of government concede. As University of
Stellenbosch research released a few weeks ago show, in less than a
generation we have more than doubled the number of graduates in our
labour market. Three weeks ago, we signed a Youth Employment Accord
at Hector Pieterson Memorial in Soweto, in front of a 2 000-strong
crowd of young people, bringing together the efforts of the public
and private sectors. The Youth Employment Accord provides for a
comprehensive approach, which includes incentives, commitments and
action to address the problem from its starting point, inadequate
skills formation. It provides for work experience through
internships and, most importantly, new jobs for young people.
I would like to welcome the delegation of youth leaders led by
Thulani Tshefuta and Yershin Pillay, who is in Cape Town today to
attend a workshop on youth entrepreneurship and the Youth Employment
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Accord. Welcome to the youth team! [Applause.] To support the Youth
Employment Accord, the IDC announced a R1 billion Youth Fund to
provide concessional lending to youth-owned enterprises that create
jobs. I am pleased to announce today that the new Small Enterprise
Finance Agency, Sefa, will make R1,7 billion available, over the
next five years, to youth enterprises with a target of R220 million
in this financial year. [Applause.] This combined “fighting fund”,
if you like, of R2,7 billion is mobilised so that young people are
mainstreamed into our economy. My small business advisory panel has
noted the substantial resources available to small businesses
through various Budget Votes, but delivery is fragmented, costly,
with very little integration of funding and business support. We are
beginning to address this, though our work is by no means done.
In April last year, we launched Sefa, bringing together three small
business funding programmes, bedded down the institution and
expanded the lending rate. Last year, Sefa approved loans worth
R435 million, which is 106% higher than its predecessors did the
previous year. We have now created the machinery to vastly increase
access, impact and the level of small business support. By next
year, Sefa plans to approve annual funding of more than R1 billion
to more than 20 000 small, medium and micro enterprises, SMMEs. That
is practical action to support people entering the economy.
I would like to welcome Ms Magdalena Paledi, a female entrepreneur
contracted by Anglo Platinum who is here with us today. [Applause.]
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She is building a school in Serafa village in Sekhukhune. Her
company is a beneficiary of Sefa funding. Over the next five years,
Sefa plans to provide R2,3 billion for women-owned enterprises, with
R295 million this year, so that women are more actively represented
in the economy, but also, so that the economy can benefit from the
enterprise that drive the energy of women.
We financed a training programme for 100 young people in partnership
with the SA Institute of Chartered Accountants. One of the graduates
is here today, Ms Thandeka Nyani, who works in the Sefa business hub
as an accounting clerk supporting small business clients. I am
pleased to announce that a further 170 young people will be enrolled
in this programme from this year. [Applause.] We now intend to take
the small business programme to our people through 18 large
community roadshows, meetings in rural areas and townships, with a
special focus on youth and women.
To meet the numerical targets in the Youth Employment Accord,
government entities will adjust regulations and tender conditions to
bring more young people into infrastructure programmes, the green
economy, call centres and other business process services. Social
dialogue has been stepped up. Last year, EDD provided support to the
Presidency to conclude the October Social Accord that brought the
strike wave in the mining sector to an end. Ministers Chabane,
Shabangu and Oliphant are now driving the follow-up of this accord.
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I have released a report today on the progress with the various
accords on skills, the green economy, local procurement and basic
education.
I would like to welcome learners from Litha Primary School who are
with us today. They are benefitting from one of the social accords
through the adopt-a-school pledge. [Applause.] Looking ahead, we
need an accord or social agreement to address industrial relations
in infrastructure programmes.
Hon members, the budget allocation for this financial year for the
Economic Development Department amounts to R772 million, of which
R231 million goes for small business funding; the amount of
R193,8 million for the competition authorities; the amount of
R79,8 million for trade administration; and R108 million to the IDC
for the agroprocessing fund. The department’s budget for operations
and capital spending is R159 million. Hon members, the Budget Vote
of EDD is a window across programmes in many different departments
and all of them have helped to achieve these goals.
I would like to thank my colleagues in the economic cluster; those
who work with the department in the PICC; Deputy Minister Mkhize;
the director-general, Ms Jenny Schreiner, and her predecessor,
Saleem Mowzer; the agencies and the heads of the Competition
Commission and Itec; the Development Finance Institutions; the heads
of the Industrial Development Corporation and Small Enterprise
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Finance Agency; and the staff of the department and the Ministry.
Our work benefitted from engagements with social partners. I would
like to thank the shop stewards, managers and workers who are
driving economic development in the cold phase of our economy.
Finally, I would like to thank my family for their support.
I now table the Economic Development Department’s budget for
consideration by this august House. Thank you very much. [Applause.]
Mrs E M COLEMAN: Hon Chairperson, Minister Patel, Deputy Minister
Mkhize, other hon Ministers and Deputy Ministers from the Economic
cluster present here, Members of Parliament, distinguished guests,
special guests of the Department of Economic Development, ladies and
gentlemen, let us from the outset, congratulate the department for
its positive audit outcome once again. [Applause.] Since its
inception it has been receiving unqualified audit outcomes. This
represents an institution that has good corporate governance
practices.
There is a saying that goes that the future can be defined by where
we come from. Thus defining the historical background will clearly
define the Department of Economic Development, its mandate and its
objectives. In addition, it would be important to give the
highlights about the department’s evolution. The policy origins of
the department is to be found in the economic transformation
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resolution of the 52nd National Conference of the ANC held in
Polokwane in December 2007. The conference resolved the following.
Firstly, in order to achieve the necessary economic growth and
development, the building of the strategic organisational and
technical capacities of government in the context of a democratic
developmental state is essential. Secondly, a strengthened role of
the central organs of state, including - through the creation of an
institutional centre for government - wide economic planning with
the necessary resources and authority to prepare and implement long
and medium-term economic and development planning, have to be
established. Lastly, the integration, harmonisation and alignment of
planning and implementation across all three spheres of government
and with the development finance institutions and state-owned
enterprises, including - through the development of coherent
intersectoral at national level and the alignment of local
implementation in terms of the Integrated Development Plans, IPDs,
of metro, district and local municipalities, had to be realised.
It was in the light of the above that the Department of Economic
Development, EDD, was established in July 2009. It is just only four
years old and it begins its fifth year. The department was created
with the sole aim of creating decent work through meaningful
economic transformation and inclusive growth. The ANC-led government
through the EDD for the past four years, despite its young age, has
managed to co-ordinate a response plan to the global economic
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crisis; processed its mandate on the alignment of jobs; completed
the development of the New Growth Path in 2010; aligned the work in
government to the New Growth Path; started implementing Outcome 4 on
jobs and growth; and launched work on the infrastructure jobs
driver.
It refocuses the Industrial Development Corporation, the Competition
Authorities and the International Trade Administration Commission on
jobs. It has initiated dialogues to develop social accords on key
NGP areas. The latest one is the signing of the Youth Employment
Accord. As the department, we recommend that we need to expedite the
implementation of this accord.
We managed to consolidate small business entities, that is, merging
the SA Micro Finance Apex Fund, Samaf and Khula Enterprise Finance
into one entity now called Small Enterprise Finance Agency, Sefa. It
has been fully integrated under the Industrial Development
Corporation, IDC. We have launched and implemented the
infrastructure plan and strengthened NGP focus on industrial policy.
The President, in his state of the nation address, re-emphasised the
importance of infrastructure as a vehicle for job creation. A number
of infrastructure projects were indentified for implementation. The
department should be commended for its active role in the
Presidential Infrastructure Co-ordinating Commission.
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The Minister is the head of the Presidential Infrastructure Coordinating Commission’s Secretariat. The department’s key role is
that of co-ordinating and integrating the work of various
departments and providing secretarial services to the PICC with
regard to the implementation of the National Infrastructure Plan. In
the light of this we would like to commend the collaborative
approach and efforts in the above regard by the government. This
shows the dying of the silo approach in doing government business.
Having said the above, it is worth mentioning also that this could
not be achieved without challenges. In the committee’s engagement
with the department the following challenges, amongst others, were
noted. Firstly, the policy mandate of the department is quite clear.
It was established to ensure integration of existing functions and
mandates of government departments; to co-ordinate the work of
finance institutions and regulatory agencies; and to implement the
plans and decisions of the executive structures of government with
the main focus being on ensuring achievement of better jobs and
industrialisation.
The scope therefore tends to be wide and it cuts across other
government departments. Thus it requires extensive co-ordination and
co-operation with other departments. If not really attended to, this
may pose a serious challenge to the achievements that we have made.
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Secondly, there is a lack of an impact assessment and monitoring
tool which would enable easy reporting of the department, entities
and other stakeholders on the impact of development issues such as
jobs, poverty, inequality, small, micro and medium enterprises,
SMMEs, development, etc. Moreover, the existence of such a tool
would have enabled easy monitoring of the NGP targets.
Thirdly, the role of the regulatory bodies in ensuring industry
competitiveness, fair trade and addressing anticompetitive behaviour
will need to be enhanced. It is clear that, going forward, we need
to ensure that we also assess the outcomes of the decisions made by
the regulatory bodies. This will enable us to determine the impact
of those decisions on the poor and the development of the SMMEs and
co-operatives. For example, we would want to be able to answer
questions such as what happens after price collusions have been
detected, confirmed and a penalty charged on food prices. Does the
baseline price change or remain high to the detriment of poor
households? As a consideration, do we need to enforce certain
conditions that would favour poorer households or reciprocity
commitments towards attainment of government goals?
Fourthly, there is the enhancement of co-ordination of the work of
the national and provincial economic development departments. We
still see elements of silos in some instances. We feel that this
needs to be strengthened together with the human resource capacity
that would ensure speedy processing and implementation of priority
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initiatives and projects by the department. We see this as a major
challenge.
Notwithstanding the above challenges, we would still want to welcome
and commend the department for having taken a positive approach
addressing most of the above challenges. For example, an impact
assessment and monitoring tool is in the process of being developed
to monitor and assess the impact on the work of entities with regard
to job creation and other development indicators.
Going forward, the entities that report to the department will be
held accountable for direct impact on jobs and development. In
future, the department would therefore be able to give detailed
reports with regard to impact and progress made on jobs.
While we look at internal challenges we should not fall short of
mentioning other external challenges that serve as a hindrance to
the advancement of the work of the department and government as a
whole. The external challenges that confront our country have been
the subject of considerable debate both in the world economic
forums, amongst economists and developmental economists. What has
been central to these debates is that classical economic theory has
contributed manifestly to the global economic challenges we have
today.
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The ANC-led government’s response reflects the growing progressive
economic theory posture that the state must of necessity intervene
in the economy so as to ensure the necessary growth required to
build the economy. Our countercyclical fiscal economic stance, as
articulated in the New Growth Path, provides the strategic economic
approach and provides for continued financing of the infrastructure
programme and the industrial strategy, both of which will result in
greater levels of growth in the economy over the medium-term.
It is also important to indicate that despite the department having
made much progress within its four years of existence, there is
consensus that more still needs to be done. The unemployment level
is still high and youth unemployment in particular is still a
challenge. I think we’ve heard the statistics by Statistics SA. I
don’t need to go through it, especially its impact on the youth.
The need to improve performance of productive sectors of the
economy, like manufacturing, mining and beneficiation, agriculture
and agroprocessing, cannot be overemphasised. More still needs to be
done with regard to the development and financing of the SMMEs and
co-operatives, especially with more focus on women, youth, the
disabled and rural population. Together with the department, as the
portfolio committee, we are prioritising our interventions in this
regard. For instance, a round table forum is being organised to look
at the challenges facing the survivalists, SMMEs and co-operatives,
including women, people living with disabilities and those in the
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rural areas with the whole aim of finding appropriate and effective
solutions. My colleague hon Mabasa will elaborate more on this
subject.
The triple challenge facing the country is multitude and have
manifested themselves over a long period since the apartheid era.
The challenges require effective and honest dialogue, co-ordination
and strong partnerships involving both the private sector and public
sector, not forgetting civil society.
It is important to note that the Budget Vote today is well timed. It
is happening against the backdrop of the World Economic Forum on
Africa 2013, which is starting tomorrow just behind this venue, thus
bringing hope to finding solutions to the economic growth challenges
facing not only South Africa, but also the continent. We would like
to join the leadership of the country in welcoming the distinguished
guests and members participating in the World Economic Forum. We
wish them successful deliberations and outcomes.
In conclusion, let us not forget that the socioeconomic challenges
facing our country will need much more than the Department of
Economic Development’s effort, but rather a concerted effort from
every member of this nation, including the partnership I have
alluded to earlier.
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Let me thank the department and its entities for their continued cooperation and wish them well in their 2010 endeavours. We would also
want to thank the members of the portfolio committee and its support
staff for their continuous wisdom in overseeing the work of the
department. We recommend that the House supports the EDD Budget
Vote, No 28, of R771,466 million. I thank you. [Applause.]
Mr K S MUBU: Chairperson, hon Ministers, hon Deputy Ministers, hon
members, distinguished guests, ladies and gentlemen, the Department
of Economic Development is four years old this year, after having
been established in 2009. Amongst other things, it was meant to
promote economic development through participatory, coherent and coordinated economic policy and planning for the benefit of all South
Africans.
The DA believes that the department is an unnecessary addition to an
already bloated and large executive team. [Interjections.] It is our
view that this department was created as a payback or reward by
President Zuma to some elements that supported his ascendency to the
highest political office in the land. The department is unnecessary
and much of what it does and performs is done by other departments.
For example, some of the functions and oversight responsibilities
have been cannibalised or cloned from other departments, such as the
Department of Trade and Industry, DTI, and the Treasury, in order to
give it credence, relevance and legitimacy. In fact, the only thing
the department does is co-ordinate, co-ordinate, and co-ordinate.
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It should be noted that the department’s target of creating five
million jobs by 2020 is a distant dream, given the fact that the
country is facing slow economic growth, which has been revised down
to 2,8% by the International Monetary Fund, IMF, for this year. The
unemployment figures that were released yesterday by Statistics SA
show that we are far from achieving work opportunities for the
4,6 million people who are currently out of work.
The New Growth Path, which the department sees as a way to eliminate
unnecessary red tape, to improve competition, and to enhance
development skills should be abandoned in favour of the National
Development Plan, NDP, which is South Africa’s only hope of
achieving economic growth and creating jobs. The NDP has been
embraced by business and other sectors as the answer to addressing
South Africa’s many socioeconomic ills, except, of course, for
Cosatu and some of its affiliates who characterise it as lacking
concrete proposals for tackling the problems of poverty, inequality
and unemployment.
The DA sees the NDP as having set some laudable goals for addressing
some of the challenges. Our leader, Helen Zille, had stated that the
DA’s 8% growth plan “dovetails in large measure with the NDP”. She
said:
We believe it is the plan behind which South Africans can unite to
achieve a sustained economic growth rate of 8%. We know that no
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country has ever overcome poverty and unemployment without
substantial sustained economic growth. This must be our central
focus.
I agree with the Minister in the Presidency, Trevor Manuel, who once
said:
But if we do not at least double the size of our economy, there
won’t be labour absorption and then the big risk that afflicts our
country is that tens of millions of unemployed and frustrated
young people will burn the country down.
The recently signed Youth Employment Accord will fail to provide any
workable solutions to the youth unemployment crisis facing this
country. This is because the Youth Employment Accord does not
include a youth employment tax incentive. It is contradictory to the
NDP and will not be effective in creating the 4,7 million jobs we
need to provide for South Africans under the age of 34. In short, it
is economically unsound, unrealistic, and will have distortionary
effects on the economy. The DA has always advocated the
implementation of a youth wage subsidy, which the President
announced in 2010 in his state of the nation address. Of course, the
pressure from Cosatu has resulted in a watered-down version of the
original idea of a youth wage subsidy.
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The DA had proposed the rolling out of a national wage subsidy
programme to reduce barriers and encourage job creation. The plan
had envisaged the introduction of a comprehensive vocational
training and apprenticeship programme as a tool to address critical
skills shortages and enhance the interface between planning and
employment and reforming Nedlac so that it is not dominated by
economic insiders but rather works to promote economic growth, job
creation and poverty reduction.
The DA had proposed the expansion of the National Student Financial
Aid Scheme to help more people to access higher education and to
gain marketable skills. As we all know, the department plays an
oversight role over three regulatory bodies and two development
finance institutions, namely the Competition Commission, the
Competition Tribunal, the International Trade Administration
Commission, the Industrial Development Corporation, and the Small
Enterprise Finance Agency, Sefa.
An economist was once asked whether markets were good or bad for
economic development. In reply, the economist said that markets are
as good as the economy they keep. Competition policy means making
markets work, by ensuring that companies keep good company. That
means that they do not collude against consumers and that they
compete to win customers.
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The Competition Commission needs to be commended for its crackdown
on the cartel of six competing companies in the glass manufacturing
industry who came together to avoid competition, by agreeing to fix
the price of their product at a higher level than the price that
would have been determined in a competitive market. This is not only
bad for customers, but it is also bad for the economy. The
commission also needs to be commended for its recent exposure of the
major construction companies in their bid collusion in the building
of Fifa Soccer World Cup infrastructure prior to 2010. As we all
know, this commission was set up to investigate such complaints of
collusion, cartels and price-fixing, whilst the Competition Tribunal
and Competition Appeal Court act as adjudicating bodies.
As of 1 April 2013, the Competition Amendment Act came into effect,
thereby providing the commission with teeth to undertake market
inquiries into the various sectors of our economy. I understand that
the first such market inquiry involved the health care sector where,
according to the Minister of Health, Dr Aaron Motsoaledi, prices are
artificial and distorted.
In my view, the other sectors that need investigation are the print
media industries, the food retail, the food production, and the
cellular industry. The cellular industry in this country has been
accused of ripping off the consumers by charging one of the highest
call rates in the world. In order for the Competition Commission to
undertake the market inquiries, it is important that it is equipped
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with the necessary skills and personnel. I wish therefore to appeal
to the hon Minister to provide the commission with adequate
resources to undertake this important task of protecting the
consumer.
The Competition Commission therefore plays a very critical role in
the economy of this country, particularly given the fact that we
have such high unemployment levels. Its role should be seen as
managing the delicate balance between promoting efficiency whilst,
at the same time, protecting jobs by way of the public interest
provisions of the Competition Act. It is therefore with much concern
that we note that the commission is beset with serious governance
issues and reports of maladministration. It is also reported that
the Public Protector has launched an investigation into the
commission. Of course, the nature of this investigation is not yet
known.
With regard to these reports, last year in August, I posed a
parliamentary question to the hon Minister in which I wanted to know
how he was addressing these challenges in the Competition
Commission. His response was:
I have taken note of reports on internal challenges in the
Competition Commission. The best interest of the commission and
its staff require that internal processes be completed prior to
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any public statement being issued. The department is now
addressing these matters.
Last year, in November, I also wrote to the Minister to request a
report arising from that internal process that he referred to in my
question to him. Up to now, I have not received any response to that
letter. At the beginning of this year, I again sent a letter, in
which I asked the Minister whether I could please have a copy of
that report. Nothing has come forth. Needless to say, these reports
are disturbing, and the Minister should show that he is fulfilling
his responsibilities to the entity and the people of this country.
We are still awaiting clarity on the steps to be taken by the
Minister to ensure that the areas of concern are addressed as a
matter of urgency.
According to the study done by the Global Entrepreneurship Monitor
at the University of Cape Town, Graduate School of Business, earlystage entrepreneurial activity in South Africa last year dropped to
7,3% from a high of 9,1% in 2011. The report says this is below the
average of countries with a similar development level. The picture
painted by this report is rather bleak, Minister. It shows that only
14% of individuals intend to pursue a business opportunity within
the next three years; well below the 27% average. South Africa’s
established business rate of 2,3% is the second lowest in the world,
according to the report.
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This is a disturbing picture in view of the fact that small, medium,
and micro enterprises, SMMEs, are supposed to be the answer to
creating job opportunities for the multitudes of unemployed people
in this country. Another study found that SMMEs described the
regulatory environment in this country as complex, burdensome and
imposing unrealistic demands on business. South Africa has become
less accommodating to SMMEs over the past year. The study found that
74% of SMMEs agreed that running a small business has become more
difficult. The NDP also highlights the importance of SMMEs in
contributing to alleviating unemployment in this country. It further
highlights the need to reduce the cost of doing business for small
businesses and emerging enterprises.
It is important to note here that the Small Enterprise Finance
Agency is really failing SMMEs by allowing intermediaries to charge
up to 40% interest on small loans. At the same time, it has created
unnecessary red tape for entrants to the market, making it very
difficult for small businesses to grow and to create jobs. The
proposed Licensing of Business Bill by Minister Rob Davies of the
Department of Trade and Industry is an affront to the NDP and will
add an unnecessary regulatory burden to businesses, particularly
small businesses. Business Unity SA and small business
representatives have expressed concern that this Bill will be badly
enforced, as existing laws already make it harder for people trying
to run an honest business. We in the DA do not see how this Bill
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will improve efficiency in regulating and cutting red tape. In fact,
this Bill intends to impose more red tape on the system.
Chairperson, infrastructure development has been identified as
another way in which massive numbers of jobs can be created in this
country. In his Budget Speech, the Minister of Finance, Pravin
Gordhan, had indicated that over the next three years, R827 billion
is planned to be spent by the fiscus and state-owned companies to
build infrastructure. The Presidential Infrastructure Co-ordinating
Commission, PICC, which is supported by the Department of Economic
Development, has the responsibility of providing facilitation and
co-ordination of infrastructure development in the country. In view
of the crucial nature of the contribution to economic development of
the infrastructure roll-out programme, the DA is of the view that
this entity should be housed under the NDP and, by extension, the
Presidency and not under this department.
Direct foreign investment, is important for the country’s economic
development. However, conditions that are required to attract
foreign direct investment are sometimes threatened by hostile and
violent labour unrest as we have seen in the recent past. The recent
merger of Walmart and Massmart presented us with lessons on how to
treat foreign investors in our country. While the Department of
Economic Development and two other departments of government wasted
taxpayers’ money on unnecessary court action to oppose the merger,
it is gratifying to hear that Minister Rob Davies was reported to
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have praised the merger as a major success. Well done. It is also
reported that the R200 million Local Supplier Development Fund has
resulted in the production of 500 tons of fresh produce, in Limpopo
alone, to the value of R3 million within a period of six months.
Finally, the department has been allocated a budget of R772 million
for the 2013-2014 financial year for its programmes, namely
Administration, Economic Policy Development, Economic Planning and
Co-ordination, and Economic Development and Dialogue. This is an
increase of more than R75 million over the 2012-2013 period. I thank
you. [Applause.]
Mr L S NGONYAMA: Hon Chairperson, the unprecedented opulence in our
country of two nations contrasts with the deprivation, destitution
and economic oppression. Overcoming this problem has to be a central
part of economic development.
The severity of inequality in South Africa is reflected in the
country’s Gini coefficient, which is currently at 0,7. Employment
statistics released yesterday showed that unemployment has increased
by 100 000 in the last quarter. At present 4,6 million people are
unemployed and 2,3 million are discouraged work seekers.
According to the annual national perceptions audit of 2012, 54% of
respondents agreed with the statement: “I’m afraid I might never get
a job in South Africa.” This situation is untenable. There is no
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silver bullet that solves the problem of unemployment, whether
ideologically shot from the left or the right.
Poverty and inequality cause unemployment, and unemployment causes
poverty and inequality. It is a vicious cycle that must be broken.
The best and most useful economic strategies must be employed, with
no total commitment to ideological leanings.
If poverty and inequality are to be reduced, policy-makers cannot
rely on the so-called ruthless growth that leads to increased income
inequality. Contrary to some perceptions, inequality hinders growth.
If South Africa is to accelerate economic growth, it has to
mainstream the eradication of poverty. It has to be the core
priority of our economic policy.
Poverty is widening and deepening. Solutions are absent while
promises abound. Let us make no mistake; this is a ticking timebomb,
and the real danger lies in failing to genuinely address poverty,
inequality and unemployment. Now is the time for concerted and
concentrated action.
The National Development Plan, NDP, and the Industrial Policy Action
Plan, Ipap, talk about long-term visions and long-term programmes.
What is needed at the present moment is for the NDP to be divided
into five yearly programmes, so that it is effective and properly
monitored. The relationship between the unwieldy Department of Trade
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and Industry, DTI, and the slimmer Department of Economic
Development must be sorted out so that the mandate of the economic
department must be clarified and be explicit.
Overindebtedness of South Africans is a matter of great concern. In
July 2012, Property24 reported that 6,2 million consumers had
impaired debt records. Of these, 2,3 million had their accounts
handed over for collection. Another 3,8 million were three months
and more in arrears with some of their accounts.
Predatory microlenders and unsecured lending offered by African
Bank, the country’s biggest unsecured lender, amongst others, is
deepening the financial crisis and exacerbating poverty. We need to
know why this is allowed to happen despite the Financial
Intelligence Centre Act, Fica, being in place.
On the question of Small, Medium and Micro Enterprises, SMMEs, the
development finance institutions, DFIs, must make finance as well as
professional business support available, and not act like banks by
making the interest rate exorbitant, unreachable and unaffordable to
ordinary people. In addition to finance, training needs to cover
entrepreneurs who lack formal education in business. The private
sector incubators alone cannot be relied upon.
Industrial development zones, IDZs, and special economic zones
should be concentrated in areas where there is existing
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infrastructure. Here I refer to places like Dimbaza, Bophuthatswana,
Qwaqwa and even here in the Western Cape, in the Atlantis area. Idle
infrastructure deteriorates and creates no jobs. It is deplorable
that government is not making use of these available resources to
create jobs.
Economic initiatives such as the Pebble Bed Modular Reactor and the
Joule electric car, which cost our country billions of rands, were
quietly written off. Why was this allowed to happen? We have also
not been answered satisfactorily on why Mthombo, the proposed
refinery in Coega, has not yet come to fruition. What else is going
on at Coega?
With regard to manufacturing, the government has failed to create
downstream beneficiation of our natural resources like gold,
diamonds and platinum. We are effectively exporting jobs to other
countries, hence the higher unemployment that is facing us. The
model that renders the automotive sector workable is to be
commended. However, why is a similar model with regard to
agroprocessing not adopted? Perhaps the Brazilian model should be
used in this case.
While having some of the best universities on the continent, South
Africa has not exploited the available capacity for research and
innovation that would make our country the owners and developers of
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intellectual property. The Joule car is an example of a lost
opportunity.
With regard to international trade – through the International Trade
Administration Commission, ITAC - we have experienced agreements
that expose our country to the dumping of cheap goods in our
markets, especially from the European Union, EU. However, the
relevant Ministries have not intervened in this regard. Why is the
worsening of the balance of trade not being properly monitored?
With regard to the management of our Budget, the national debt has
increased by R1 trillion in the past five years. At the same time,
the Gross Domestic Product, GDP, has continued to be lower than
projected. If the national debt had been incurred to accelerate
infrastructure development only, the borrowing and expenditure could
have been regarded as countercyclical, but unfortunately this is not
the case.
Loss of moral values has seen a squandering of resources without
consequences. The more than R240 million spent at Nkandla is a
national scandal, and an insult to the poverty-stricken of our
country. The discontent of the workforce has therefore increased, as
evidenced during the Marikana massacre, and Ficksburg, where Andries
Tatane was mowed down by the SAPS.
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The same kind of desperation that inflamed the Arab Spring is now
increasingly evident in our country. The landing of the Gupta plane
at a national key point ... [Interjections.] ... shows how pervasive
the moral loss in our country has become. [Interjections.] Fair play
no longer exists, and blatant favours open the way for the well
connected. The continuation of this state of affairs will create a
negative investment environment for our country. [Interjections.]
Some intervention needs to be made in this regard.
The Public Infrastructure Co-ordinating Committee must be fully
energised as this can set a very good platform to create more jobs.
The department earned an unqualified audit, and therefore has the
opportunity to come out of the shadows and to exert itself for the
betterment of South Africa. A small window of opportunity is all
that is left as the clock continues ticking. I thank you.
[Interjections.] [Applause.]
Mnu Z C NTULI: Sihlalo, oNgqongqoshe abakhona, amaPhini, amalungu
ahloniphekile kanye nezivakashi zethu, inkulumo yami izogxila
entuthukweni yezimboni kanye nezindaba ezithinta ukuqhudelana,
nokuthi lokhu kube nomthelela ongakanani ekuthuthukeni komnotho.
Intuthuko yomnotho incike kakhulu ekusebenzeni kahle kwezimboni. Lo
hulumeni oholwa uKhongolose wethule inqubomgomo yokuthuthukiswa
komnotho wezwe phecelezi i-New Growth Path njengohlelo oluzokwazi
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ukuthi lufeze amaphupho esizwe entuthukweni yomnotho kanjalo nesizwe
ngokubanzi. (Translation of isiZulu paragraphs follows.)
[Mr Z C NTULI: Chairperson, Ministers present, deputies, hon members
and our guests, my speech will focus on the Industrial Development
Corporation, IDC, and the Competition Commission and the effect it
had on economic development.
Economic development is dependent on the effective operation of
industries. The ANC-led government presented the New Growth Path and
the Development Plan as a strategy that will fulfil the dreams of
the nation in the development of the economy and the entire nation.]
Chairperson, at the ANC’s 52nd National Conference in 2007 we
resolved that we needed to develop an active and well-resourced
industrial and trade strategy aimed at creating decent work. We now
have an Industrial Policy Action Plan 2 and a developmental Trade
Policy Strategy and Framework. These two policy documents are at the
centre of the New Growth Path and Development Plan. Whilst the
Industrial Policy Action Plan identifies sectors that should be
supported, a major challenge that it confronts is to prioritise
catalytic sectors, to build and broaden industrial linkages between
these sectors.
The Administration has placed jobs at the centre of the mandate of
the Industrial Development Corporation, IDC, and Competition
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Commission. This is consistent with the call in the manifesto of the
ruling party that was endorsed by the electorate in 2009. This is
what democracy is about, giving effect to the will of the people.
We have served in the portfolio committee since its establishment in
2009, and we have seen a dramatic shift in the level of industrial
funding and projects that the department has announced on its own or
through the agencies it is accountable for.
As the ANC, we welcome the expansion of investment approvals by the
IDC under the leadership of Minister Patel. This is a more active
IDC than the one we saw in 2009. In particular, it is helpful that
government is not only focusing on the level of funding, but also on
the cost of funding. Many companies have raised this as a serious
challenge, because their competitors in Brazil and China are
sometimes able to access cheaper loans.
The introduction of a new, low-interest facility to support
companies that create jobs is consistent with our electoral mandate.
This is what the ANC undertook to do and so we are pleased that the
department and the IDC have introduced a facility priced at the
prime interest rate less three percent. The IDC spent some
R27 million over the past two years alone and we now expect it to
deepen its developmental impact. We want to draw attention to the
move by the IDC to encourage youth entrepreneurship and jobs for
youth. This is what we mean by development. The Rl billion fund
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announced in Soweto must now be implemented with great energy so
that young people can be drawn into new decent jobs so that we can
offer hope to the young generation.
While the IDC has done well, there is more that our people expect in
the year ahead. We need to focus on poorer provinces. The products
of the IDC should be made more accessible at a local level. I
welcome that the IDC will also be part of the planned Small
Enterprise Financial Agency, Sefa, roadshows. The IDC should also
have a facility to assist local entrepreneurs with the technical
side of producing business plans.
The focus of the Competition Commission is greatly welcomed. There
is sometimes a view in the public debate that competition is an end
in itself, as if jobs do not matter or that jobs will simply come
automatically from competition. We think that the competition policy
is part of the tools that are available to government to help drive
the broader economic goals. Sometimes greater competition on its own
will be helpful in bringing new energy and innovation to a sector.
At other times, we need to place employment conditions in mergers
and acquisitions, as our laws clearly provide.
The economy must also provide opportunities for new entrants. For
this reason, it is right that we tackle monopolies and cartels. We
are pleased at the Minister’s announcement on the investigation into
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the private health care industry. Some of its practices border on
callously exploiting people’s illness for profit.
The Pioneer Food settlement set the trend of competition settlements
with companies that can benefit all South Africans. That settlement,
hon members, led to the reduction in the price of bread and flour.
It also led to a fine imposed on the company that allowed the
Minister to set up an agroprocessing fund, which is now administered
by the IDC.
In this budget, we will approve a further transfer of monies to the
IDC from the fines paid by Pioneer Foods. This fund is now creating
new jobs in agriculture and the food industry. Last year, the WalMart matter was finalised by the Competition Appeal Court. The WalMart settlement showed that government is determined to ensure that
any foreign company entering South Africa must support local
industrial capacity. It has led to many workers being reinstated by
Wal-Mart after they were retrenched just before the merger. It has
led to a R240 million fund to support local industry. I hope, hon
Mubu, you get the difference.
Hon members, the success with creating a manufacturing capacity for
the taxi industry is very exciting. I used to work at Toyota Motors
in Durban many years ago. I want to tell this august House that the
factory is now expanding and taking in more workers. Sifiso Mhlongo
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is a 39-year-old worker from KwaZulu-Natal. His hometown is that of
Impendle in the KwaZulu-Natal hinterland, near Pietermaritzburg.
UMhlongo ushadile unezingane eziyisishiyagalombili endala ineminyaka
eyishumi nesikhombisa ifunda ibanga leshumi nambili. Uqashwe laphaya
kwa-Toyota, eThekwini KwaZulu-Natali. UMhlongo kade engasebenzi
iminyaka emihlanu ephila ngemisebenzana emincane ehamba ebamba lapha
nalaphaya ukuze akwazi ukuthola okuya ngasethunjini. Lokhu bekwenza
impilo yakhe ibe nzima azizwe engeyona indoda emzini wakhe. Kuthe
ngoNtulikazi wezi-2012 uMhlongo wayesethola umsebenzi laphaya kwaToyota ngesikhathi kuvulwa inkampani yokuthi kwakhiwe amatekisi lawa
athutha abantu KwaZulu-Natali. Lokhu kumsizile uMhlongo wakwazi
ukuthi kube khona akwazi ukukuthola abuye nakho ezinganeni zakhe.
Uqashiwe laphaya kwa-Toyota ku-assembly line futhi miningana
imisebenzi ayenzayo ngoba uwumsebenzi oqeqeshekile. (Translation of
isiZulu paragraph follows.)
[Mr Mhlongo is married with eight children; the eldest is 17 years
old and is in Grade 12. He is employed by Toyota, in Durban in
KwaZulu-Natal. Mr Mhlongo was unemployed for five years and he was
making a living by doing odd jobs here and there. This made his life
difficult and made him feel less of a man in his own house. In July
2012, Mr Mhlongo got a job at Toyota when the taxi manufacturing
unit opened in KwaZulu-Natal. This has helped Mr Mhlongo with regard
to earning some money and providing for his family. He is employed
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at Toyota in the assembly line and he is also doing several other
jobs because he is multi-skilled.]
He is also used in the fitting of parts in the assembly line, parts
such as lights, pipes and radiators as he is multi-skilled.
UBaba uMhlongo uqashe laphaya ehostela laseWema eThekwini ukuze kube
lula ukuthi aye emsebenzini. Uhamba ngezinyawo uma eya emsebenzi
kwa-Toyota bese kuthi njalo ngezimpelasonto aye ekhaya eMpendle
ayobona izingane zakhe. UMhlongo uthi uyabonga kakhulu ukuthi
ukwazile ukuthola ithuba lokuthola umsebenzi akwazi ukondla izingane
zakhe. [Ihlombe.] (Translation of isiZulu paragraph follows.)
[Mr Mhlongo is renting at Wermer Hostel in Durban to make it easy
for him to go to work. He walks to work and goes home to Mpendle
every weekend to see his children. Mr Mhlongo says he is very
grateful that he was afforded an opportunity to get a job and to be
able to fend for his children. [Applause.]]
Our industrial policy is about creating opportunities for people
like Mr Mhlongo.
SiwuKhongolose sithi Sihlalo, sizoshintsha ukwenza ukususa lezi
zithiyo ezikhona ezibambezela intuthuko yezwe. Esesikwenzile
kuyinkomba yokuthi lokho esikuthunywe yisizwe namaphupho abaholi
abadala baKhongolose abanjengoLangalibalele Dube, uMafukuzela,
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oLilian Ngoyi, Walter Sisulu, Albertina Sisulu, Oliver Tambo, Chief
Albert Luthuli, naboBraam Fischer kanye nabanye abaningi sizowafeza.
Sizimisele ukufeza umbono wesizwe ngowezi-2030. (Translation of
isiZulu paragraph follows.)
[As the ANC, Chairperson, we are going to make some changes
eliminate these obstacles that delay the development of the country.
What we have already done is an indication of what we are deployed
for so that the aspirations of the nation and the veteran leaders
such as Langalibalele Dube, Mafukuzela, Lilian Ngoyi, Walter Sisulu,
Albertina Sisulu, Oliver Tambo, Chief Albert Luthuli, Bram Fischer
and many more, will be achieved. We are determined to achieve our
vision of 2030.]
We are determined to achieve our vision of 2030.
UKhongolose uthi asingalilahli ithemba. Ngiyabonga. [The ANC says we
must not lose hope. Thank you.] [Time expired.][Applause.]
Mr M HLENGWA: House Chairperson, hon members, at the outset let me
indicate that the IFP supports Budget Vote No 28. And therefore
everything I will say from this podium will be constructive. I hope
there will be no noise.
The Department of Economic Development is charged with the all
important mandate of spearheading job creation. Therefore the
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working of this department is and remains the measuring yardstick of
the progress we are making, or lack thereof.
At the epicentre of this focus is the National Development Plan,
NDP, which should be a magnet in attracting and aligning all
government plans. In this regard we trust, Mr Minister, that the New
Growth Path will immediately align itself with the goals, visions
and focus of the NDP.
Today I speak on behalf of millions of young people, my fellow
brothers and sisters who struggle daily with poverty and
unemployment a shared hopelessness. The desperation of our
unemployed young South Africans is mounting and their patience is
fast dwindling. In 2013, 19 years into our freedom and democracy, a
crisis is rapidly approaching as unemployment levels continue to
rise. We are sitting on a time bomb that should have exploded
already. As much as 25,2% unemployment is beyond critical the
efforts seeking to control the same are clearly not working.
It is in this vein that we must ensure that the plans and programmes
we are debating today ultimately translate into jobs or at the very
least job opportunities.
In preparation for this debate I took to Facebook to solicit views
of young South Africans on how best jobs could be created. And the
responses were at best constructive and hope-inducing. Although I
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cannot read all of them here for want of time, on the question of
jobs I will read what Nkululeko Wangempela Mdletshe said, for it
summarises best what young people feel should be done. He says: “It
is important that government focuses more on quality and sustainable
jobs...”
The IFP therefore fully supports the development of SMMEs and cooperatives. And we welcome the programmes that are being rolled out
by the Small Enterprise Finance Agency, Sefa, and the Industrial
Independent Corporation, IDC, to ensure that South Africans are
enabled to create and build their own sustainable livelihoods
through the business and entrepreneurial support they are receiving.
This moves South Africa away from dependency and firmly onto the
course of sustainability, self-help and self-reliance.
We impress on the department the importance of ensuring that Sefa
reaches all South Africans, especially those in rural areas who were
hardest hit by apartheid. Moreover, the duplication and overlap of
roles and functions, with regard to co-operatives, between the
Departments of Economic Development and Trade and Industry is of
serious concern and a catalyst for confusion. This must be resolved.
The IFP has, as its contribution to the development of cooperatives, employed an expert on co-operatives from Kenya and is
already training rural women on co-operatives in KwaZulu-Natal and
other areas.
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The failure to implement the youth wage subsidy does not in any way
inspire hope and confidence in government’s commitment to see
through its own initiatives. And therefore, the National Youth
Accord should not face the same fate of union resistance and a
government that continually buckles under pressure.
The issue of jobs remains the most important and the most pressing
matter that requires bold leadership from the Department of Economic
Development. The IFP maintains that government should strive towards
the creation of a conducive environment for businesses to operate
and create jobs.
We are of the view that political freedom needs to be translated
into opportunities and access to economic and social sustainable
livelihoods for all. We cannot standby and watch those in power loot
the country, whilst they sing the NDP 2030 economic emancipation
lullaby to the poor. The year 2030 is today, and should not be seen
to be 17 years from now.
The multiple accords signed by government departments nationally and
internationally, particularly those related to job creation must be
brought to life.
The Economic Development Department, EDD, must also ensure, Mr
Minister, - we are expecting, from now on – that this department has
its finger in every single pie, because the Department of
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Performance Monitoring and Evaluation is obviously failing to hold
your colleagues and their departments to account. It is in the
collective interest of economic development that all departments
contribute positively and progressively towards the creation of a
healthy and vibrant economy that is conducive to growth, development
and job creation.
Therefore, Mr Minister, you must throw the book at all your
colleagues who are not working towards the creation of such an
economic environment, tell them - and you have got our support on
this - it’s either they shape up or ship out! I thank you.
[Applause.]
Mof M M MOHOROSI: Modulasetulo, Letona e leng Mohlomphehi Patel,
Motlatsi wa Letona ya hlomphehang, Mme Mkhize, ditho tse hlomphehang
ka mona ka Ntlong le baeti ba hlomphehang, katleho ya tokoloho ya
rona ya selemo sa 1994 e neile batho ba Afrika Borwa monyetla wa ho
batla kgolo ya moruo. (Translation of Sesotho paragraph follows.)
[Ms M M MOHOROSI: Chairperson, hon Minister Patel, hon Deputy
Minister, hon Mkhize, hon members in the House as well as
distinguished guests, the success of our freedom in 1994 has
afforded people of South Africa the opportunity to aspire towards
economic growth.]
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The ANC’s 2009 Election Manifesto outlined a clear and unambiguous
path for government in its role in trade and regional integration.
It stated that the struggle against poverty and underdevelopment is
also an international struggle; that foreign policy would need to
continue to focus on efforts of reconstruction and development in
the Southern African region and Africa in general.
In this context, the ANC government has continued to play a leading
role in working towards regional economic integration in Southern
Africa, and socioeconomic development on the continent.
Specifically, this has meant building cohesion, unity, democracy and
prosperity in the Southern African Development Community, SADC, and
strengthening our capability to respond to the challenges we face.
The regional economic integration in Southern Africa that we speak
of as the ANC is premised upon a fair, equitable and developmental
basis, promoting SADC integration based on a developmental model
that includes infrastructure development, co-operation in the real
economy and development of a regional supply chain.
The approach is informed by the ANC and government’s national
economic policy framework, the New Growth Path. This provides bold,
imaginative and effective strategies to create the millions of jobs
South Africa needs. Of course, as the ANC, we agree that we need
jobs because we are saying: A better life for all.
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The framework also lays out a dynamic vision for how we collectively
can achieve a more developed, democratic, cohesive and equitable
economy and society over the medium term in the context of sustained
growth. The shift to the New Growth Path has required leadership and
strong governance. It has, in its implementation, taken into account
new opportunities, the economic strengths we have, and tried to deal
effectively with the constraints we face. Changing the character of
the South African economy and ensuring that the benefits are shared
more equitably by all our people, particularly the poor, is a task.
Let me assure you, we are equal to that task.
That unemployment is very high, we as the ANC are saying we are
aware of. Because the hon Ngonyama is from the ANC, he knows about
unemployment and poverty, and has been talking about these things.
They did not start today, but started a long time ago. He failed
during his time as Minister in the ANC-led government. [Applause.]
The strategy calls for a case-by-case analysis of tariff setting, ie
each sector must be considered in its own right and in relation to
its strategic role in the linkages of the economic structure. In
this context, it is important that concrete trade policy instruments
are urgently applied to support the domestic production of the types
of goods that we have agreed to support through the Industrial
Policy Action Plan, Ipap, and foster linkages between our growth
sectors.
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Emphasis should be placed on entering into highly beneficial
bilateral trade agreements with nontraditional trading partners so
as to tap into the potential presented in emerging markets such as
China, India, Brazil and many African economies.
The HOUSE CHAIRPERSON (Mr C T Frolick): Order, hon members! Your
noise levels are too high. I find it difficult to follow the speaker
in front of me. I think it is also in the interest of all members
that we listen to one another so that when we debate, we know what
we are debating about. Continue, hon member.
Ms M M MOHOROSI: This serves as political education of others.
Re na le dikamano le naha ya Brazil, Russia, China le India.
Haufinyana re ne re tshwere kopano ya Brics e bileng le katleho e
kgolo. Hona ke pontsho ya hore moruo wa rona o tla tswela pele ho
ntlafala ho feta hona jwale. Ke e meng ya meralo eo re nang le yona
bakeng sa ho fedisa bofuma. Ho molemo hore batho ba letsohong la ka
le letshehadi ba ithute, ba mamele, ba bale mme ba etse diphuputso.
(Translation of Sesotho paragraph follows.)
[We have relations with Brazil, Russia, China and India. Not long
ago we hosted the Brics summit, which was a great success. This is
an indication that our economy will continue to improve to more than
what it is now. These are some of the plans we have for the
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alleviation of poverty. It is advisable for people on my left hand
side to learn, listen, read and conduct research.]
As the ANC, we envisage an economy that fosters economic and
regional integration; an economy that fosters relations with the
global environment and has mutual relations with the North and the
South, and is an essential component of a balanced regional economy
which contributes to the growth and prosperity of Africa. The above
are some of the elements that form the vision of the economic base
of the national democratic society that we as the ANC seek to
create.
Regional integration is one of the bases to foster inter-African
relations that we as the ANC have pursued and will continue to
pursue. This has been expressed through organisations such as the
Southern African Development Co-ordination Conference, SADCC, the
Preferential Trade Area for Eastern and Southern Africa, PTA, and
the Economic Community of West African States, Ecowas.
From the onset we said that regional integration in Southern Africa
would have to be based on the agreement of all countries in Southern
Africa in order to form this regional economic community. This was
because of our understanding, as the ANC, that this would enable
balanced and stable regional economic development so that our
relations with our regional compatriots would not, postapartheid, be
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perceived as what it was during apartheid, a hegemonic regional
power.
Our attempts to accelerate the economic integration of the Southern
Africa region through our goal of creating a free trade agreement
within the SADC will be based on the premises of mutual benefit,
equity and balance.
Ke kahoo Mokgatlo wa Industrial Development Corporation, IDC, o
thusang dinaha tse potapotileng Afrika Borwa. Re ka bua ka
boikgantsho ka tswelopele tse entsweng ke Mokgatlo wa IDC mane
Botswana, Lesotho, jj. (Translation of Sesotho paragraph follows.)
[That is why the Industrial Development Corporation, IDC, is
assisting countries surrounding South Africa. We can proudly talk
about developments done by the IDC in Botswana, Lesotho, etc.]
The idea was and still is to increase South Africa’s interests
through our ANC-led government when it comes to relations with our
traditional trading partners like the European Union.
We reflect on the legacy of apartheid and we are affirmative when we
say that the ANC-led government has made great achievements and as
such there is sharper regional and continental focus by our
government.
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South Africa is an essential component for regional and continental
integration. This is because there is immense work that needs to be
done to rapidly eradicate the challenges of poverty and sustained
economic development, which are remnants of our colonial past. The
notion is to eradicate poverty by ensuring that dependency on our
colonisers is not entrenched through aid.
One of the drivers of regional integration is mainly continental,
the New Partnership for Africa’s Development, Nepad. Nepad basically
calls for a mutual vision and a goal to eradicate poverty and
replace this with a programme of sustainable economic growth and
development. Ours, as the ANC-led government, is to implement
economic programmes that will attain growth whilst eradicating
poverty that will encourage investment, infrastructure, agriculture
and regional integration.
Batho ba batsho ho tloha kgale ba lekanngwa le bofuma. Le hona jwale
ho thata ho ba basweu hore ba amohele hore batho ba batsho le bona
ba ka kgona ho una molemo moruong ona wa naha ya rona. O tla bona le
ho utlwa ha motho e motsho eka o a iphumana, ho ba le lerata ho tswa
ho baqolotsi ba ditaba le mekga ya kganyetso hobane ba dumela hore
ntho e nngwe le e nngwe e fumanwang ke motho e motsho ke bobodu.
(Translation of Sesotho paragraph follows.)
[Black people have always been identified with poverty throughout
the years. Even at this juncture it is difficult for whites to
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acknowledge that black people can also benefit from the economy of
our country. When a black person realizes his/her potential, there
are rumours of corruption from journalists and opposition parties
because they believe that anything that a black person achieves is
as a result of corruption.]
Hon Chair, thank you very much! [Time expired.][Applause.]
Mr M H HOOSEN: Hon Chairperson, I want to start by congratulating
the hon Minister because today he has successfully managed to fool
many people into believing that the Department of Economic
Development is actually achieving its mandate of developing the
economy and creating jobs.
The hon Minister announced that R1,7 billion has been set aside by
the Small Enterprise Finance Agency, Sefa, for youth
entrepreneurship. This is simply not true. In the recent
presentation in our committee, Sefa has informed us that of that
R1,7 billion, only 30% has been set aside for youth-owned
enterprises. The proof is in this document, hon Minister.
This is nothing short of a desperate attempt to recover lost ground
in an election year to make up for the damage caused by the ANC for
not implementing the President’s promised youth wage subsidy.
Therefore, we had the Minister engaged in a hastily convened Youth
Employment Accord signing ceremony which is a nonbinding agreement
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anyway. It’s like a ``pinkie promise’’ to create jobs for the youth
because if the role-players don’t keep their word, the Minister
can’t really do anything about it and he would just be angry with
them for not playing with him.
This is just another public relations exercise aimed at fooling the
poor and vulnerable youth who, for the past two decades, have been
fed with promises, plans and excuses. We have heard all sorts of
feel-good stories about how much of investment is being made in
infrastructure development. Yes, we must give credit for that. But
most of these projects are not being driven by this department
anyway. The Minister simply cuts and pastes and borrows from the
successes of other departments and reports these projects as the
successes of his department. The Minister and the department have
been relegated to a co-ordinating role and he is simply playing with
the toys of his Cabinet colleagues, while claiming them as his own.
We all recognise that massive opportunity exists in our country to
create much needed jobs by investing more resources in small
businesses. This is covered quite extensively in the National
Development Plan, NDP, and the New Growth Path.
Is this department really serious about developing small business?
The fact that the Industrial Development Corporation, IDC, has set
aside about R100 billion for big business and only R1 billion for
the development of small businesses is a clear indication that this
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department and the Minister are not serious about developing small
businesses in South Africa.
It comes as no surprise therefore that the latest unemployment
figures have now risen to 25% and the promise to create those
five million jobs by 2020 will not achieve its target if we continue
on this nongrowth path.
The Minister, in his reply, would give us the worn excuse that it is
the fault of the global economic environment and it would take some
time for us to realise these jobs in the New Growth Path. Hon
Minister, neither we nor the South African public buy this story any
longer.
This is the department that is struggling for relevance. If Minister
Patel wants to become more relevant and develop the economy through
more job creation intervention, then this department must identify
and create real economic opportunities for the historically
disadvantaged and the poor. I thank you. [Time expired.] [Applause.]
Nkul X MABASA: Mutshamaxitulu, Holobye Patel, Vaholobye lava nga
kona, Xandla xa Holobye, Hlengiwe Mkhize, Swirho swa Huvo na manana
un’wana loyi ndzi n’wi hloniphaka swinene loyi a nga kona eka
vaendzi lava nga kona haleno, Manana Daphne Mashile-Nkosi ...
(Translation of Xitsonga paragraph follows.)
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[Mr X MABASA: Chairperson, Minister Patel, Ministers present, Deputy
Minister, Hlengiwe Mkhize, members of the House and another mother
whom I respect so much who is amongst the guests present here, Mrs
Daphne Mashile-Nkosi ...]
... I’m dedicating this speech to two very special people who are
now late. We lost the first one last year, and the worst loss was a
day before yesterday. Last year, we lost Mme Ruth Machobane, a
genius at her best. Blind as she was, she helped to establish the
National Organisation of the Blind in South Africa, Nobsa. The day
before yesterday we lost the chairperson of the ANC branch in
Pimville, the Mpete Mosaka Branch, where I am a member. We have lost
Ephraim Nkwe, a founder member of the South African Youth Congress.
He, together with Comrade Rapu Molekane, contributed in the
liberation of this country.
Before I go very far, I want to illustrate that small, medium and
micro enterprises, SMMEs, and co-operatives are very real. Look at
these beautiful school shoes; they are from co-operatives. Look at
this beautiful bag. It is manufactured by the Soweto Empowerment
Zone in Diepkloof. Look at this briefcase and see how it locks and
unlocks. Again, it is manufactured by the Soweto Empowerment Zone in
Diepkloof. Look at this “xibelana” [traditional Vatsonga female
robe] ... [Interjections.]
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The HOUSE CHAIRPERSON (Mr C T Frolick): Order, hon members! Hon
member, would you return to the podium, please. [Applause.]
[Laughter.]
Mr X MABASA: My apology, Chairperson.
Xibelana xi endliwile hi vamanana ... [The traditional Vatsonga
female robe is made by women ...] [Interjections.]
Mr S B FARROW: Chairperson, on a point of order: Actually, you
answered one of the things that I wanted to raise about walking away
from the podium when delivering a speech ... [Interjections.]
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon members, I can’t hear
the hon member while you are interjecting.
Mr S B FARROW: Normally, if there is any display of this nature, I
would suggest that it be done outside of this House or in the
exhibition. You can describe the items to the people working at ...
[Interjections.]
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon member, your point is
noted. Hon member, continue with your speech, please.
Mr X MABASA: This pipe is used in the industry. I want to notify the
complaining member that this is in made South Africa and is also
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manufactured in Diepkloof, in Soweto. [Applause.] This is just to
show that SMMEs work. [Interjections.] If you avoid provoking me, I
may also avoid the temptation of reminding you that we are meeting
all these challenges because of your granddad, Verwoerd. [Laughter.]
[Applause.]
The Budget Vote of the Department of Economic Development allows us
to focus on small businesses and youth employment - two themes that
the other hon members have spoken about in this august House. I have
another bullet which I can produce; please behave.
As the ANC, we measure human welfare not only by the rate of growth
of the economy, but by whether the economy grows to create jobs,
empower the rural poor, bring township residents into the economic
mainstream and offer hope to young people. Job creation is very
important in this regard. Our challenge is therefore to find ways in
which more of the nation becomes productive in the real economy - in
the productive economy and not in stock exchanges.
This is where development of small business and co-operatives become
so vital to our programmes in the National Development Plan, New
Growth Path and the National Infrastructure Plan.
The history of small business support has never been good. During
apartheid days black people were excluded from the mainstream
economy. The only thing they were allowed to do was to buy, but not
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to sell. Licensing laws, property laws and business restrictions
were hindrances. I can go on and on and this could take me back to
Hertzog. [Laughter.]
While the democratic era changed much of these, we had not cracked
the challenges of small business funding. Two years ago we had a
multiplicity of funding agencies at national, provincial and local
level. I am pleased that through the efforts of the Ministry of the
department, we now have at least one small business funding agency
at the national level. In the ANC we believe that co-ordination is
the way to go. It is not a weakness, but a strength. [Applause.]
In the portfolio committee we have been engaging with the new agency
to ensure that it is not simply the same as its predecessors. We
want Small Enterprise Finance Agency, Sefa, to lend more - and be
less expensive than other agencies - to the electorate and the poor.
Last year, this agency improved its lending rate to more than
R400 million. This is twice as high as it was under the previous
agencies, Khula and the SA Micro-Finance Apex Fund, Samaf. Once more
integration is positive, therefore we welcome it. But even though it
has increased substantially, it is still low and we want it to
increase so that we make a meaningful impact on the lives of people.
We raised this with the Minister of the Department of Economic
Development earlier this year in the portfolio committee, and I am
pleased to acknowledge that there is a big turnaround.
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The announcement made by the Minister today that Sefa will increase
its lending from 2014-15 financial year to over a billion rand is
very welcome. We are concerned as representatives of the ANC in
Parliament that many middlemen, in the form of retail financial
institutions, are taking money from the state and lending it to the
small business person at too high rates. The government aims and
targets helping these people. We don’t want the middleperson who
charges so much that by the time the money reaches the end user,
much of it is depleted.
Few weeks ago, Sefa held a mini roadshow in my area, Soweto, to
showcase some of their products. That was helpful, but Soweto is big
and we need many more roadshows. Minister, you mentioned 18
roadshows. But if you look at the whole country, 18 are not going to
take us anywhere. You better have ways to multiply them.
Government must not hide the good things that it does. Communicate
what you do. We are communicating now so that people may not say we
communicate because it’s election time. We communicate all the time.
One of the challenges we confront in South Africa is high youth
unemployment. Not all youth find jobs in big companies. We must
therefore help young people to use their skills and energy to start
their own businesses and co-operatives. Let us be realistic, many of
the commercial banks would be reluctant to back a young
entrepreneur. Yet, youth entrepreneurs created Facebook and Google
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of this world. That is where Sefa comes in to provide a first loan
to young people.
What I’m wearing here is a black economic empowerment and cooperatives product. [Applause.] The trousers that I’m wearing here
are also the product of the co-operatives. Mme Olga from Pimville
made this attire. [Applause.]
The date of 18 April, on which the Youth Employment Accord was
signed in Soweto, coincides with the day when the most important
person, Enoch Sontonga, the writer and composer of Nkosi
Sikelel’iAfrica passed on. This is a very historic day.
I support the Budget Vote. [Time expired.] [Applause.]
Mnu B H HOLOMISA: Mhlalingaphambili, namalungu abekekileyo ale Ndlu
yoWiso-mthetho, ndiphakamela ukuxhasa le Voti yoHlahlo-lwabiwo-mali
yama-28. Ningaqhwabi kakhulu, niza kulila kwangoku. [Kwahlekwa.]
(Translation of isiXhosa paragraph follows.)
[Mr B H HOLOMISA: Hon Chairperson and honourable members of the
National Assembly, I support the Budget Vote No 28. Don’t be too
excited and applaud much; you will be disappointed very soon.
[Laughter.]]
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The dismal performance regarding employment proves beyond reasonable
doubt that government’s economic policies have failed to grow our
economy at the levels required to reduce unemployment and eradicate
poverty. This occurs against the background of the ever increasing
gap between the haves and the have-nots. In addition, South Africa
seems to be on a fiscal slippage. In the 2007-08 financial year, our
budget balance declined from a surplus of 1,7% to a deficit of 5,2%
in the 2012-13 financial year. Our debt to gross domestic product,
GDP ratio has increased from 23% in 2008 to approximately 40% in the
2012-13 financial year.
Corruption and wasteful expenditure in government have reached
crisis levels. With the bleak picture I have sketched thus far, it
is not difficult to conclude that South Africa is on the slippery
slope to becoming a subinvestment-grade country. We need to take
decisive steps to turn the situation around and there are,
unfortunately, no shortcuts to long-term success.
To reduce unemployment, government needs to develop an environment
that is conducive for small and large businesses to flourish. It
must not be the current situation where you find companies that
employ workers from neighbouring countries. The so-called outside
investors that we find in every corner of South Africa do not give
work to South Africans, but exclusively employ their families and
friends.
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We have to consider whether businesses should not be compelled to
ensure that 60% to 70% of their staff complement is made up of South
Africans. Government can develop the aforementioned environment by,
amongst other things, ensuring that there is the required level of
labour flexibility in the economy. This means that the labour market
framework should enable businesses to frame appropriate responses to
changes in market conditions. For this to succeed, government would
need to begin to reign in its alliance partner, the Congress of
South African Trade Unions, Cosatu, which seems only to be
interested in protecting the interests of the employed at the
expense of the unemployed.
In conclusion, in the past many raw materials were processed
domestically, but today most of these factories are closing down in
droves. The common denominator is their inability to compete with
imports from countries where such products are subsidised by their
governments. Government needs to root out corruption and wasteful
expenditure in the system and adopt policies that are aimed at
reducing its deficit and debt accumulation.
Andinibethanga kakhulu noko, ndicebisile. [I didn’t criticise you
that much, I have advised. [Laughter.] [Time expired.]
Mr S J MOHAI: Chairperson, Ministers and Deputy Ministers, hon
members, it is important to note that the Minister has presented a
comprehensive account of the performance of South Africa’s economy
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and once more dispelled the myth, particularly within the opposition
parties, that the South African economy is crumbling. It
particularly covers the massive investment in infrastructure that
has got to encourage industrialisation of our economy, thus breaking
the old apartheid economic structure. It could be that the fear of
the DA and ID is located within that framework.
In February last year, our President, Jacob Zuma, inspired the
nation during the state of the nation address with his vision on
infrastructure development. He presented a bold plan to the nation,
which was received well. Speaking today in the Budget Vote, it is
pleasing to note the progress we are making with regard to the
transformation of our economy. This is indicative of the bold plans
and actions that have characterised systematic implementation of our
transformation agenda.
Before I go any further, let me state that we are in a critical
moment in unfolding our social transformation, in which the need to
alter economic relations is looming larger as a main terrain and the
pillar of our overall social transformation. It seems the
consolidation of our democracy, going forward, largely depends on
economic transformation. There can be no meaningful social progress
without economic transformation.
Infrastructure development has long been identified as a major
catalyst for economic growth and development in the policy positions
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and perspectives of the ANC. It is the hub for driving economic
restructuring, transformation and development for meeting the
economic and social needs of our people and for driving
industrialisation. Such an industrialisation must put job creation
and competitiveness of our economy at the centre of its outcomes.
That is where the ripple effect of infrastructure comes in handy.
Infrastructure development must create jobs in the construction of
facilities, materials and machinery.
Infrastructure development must create jobs and build the
competitiveness of our export industries by developing and expanding
local technologies and machinery in the industries. Infrastructure
development must therefore strengthen and develop the entire value
chain of our local industries. Production industries must benefit on
a sustainable basis from our infrastructure roll-out. That is the
only way we can be competitive in international markets. The
government therefore has to effectively use its procurement, which
is relatively large, to develop local production industries.
The New Growth Path, NGP, whose main industrialisation programmatic
base is the Industrial Policy Action Plan, Ipap 2, advances these
goals to a large extent. The National Development Plan, NDP, also
takes this goal of infrastructure development forward by seeking to
build local production industries. The world economy is now
integrated and operates seamlessly. South Africa is a relatively
small economy that can succeed better when it has sound links with
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other large emerging economies such as China, India, Brazil and
Russia in the conglomerate of Brazil, Russia, India, China and South
Africa, Brics.
Africa should not only be our growing trading partner, but our
starting point. Today, trade among developing economies is much more
possible because machinery and technologies for production are no
longer an exclusive monopoly of the main global centres of Europe,
United States of America and Japan, like it was approximately 30
years ago. This can have the desired effect of progressively
changing the skewed global economic structures and also really
change developing economies in the south for the better.
We should therefore welcome the R827 billion being spent by stateowned enterprises in the current Medium-Term Expenditure Framework,
MTEF, as well as the R430 billion that is being spent by government
departments on social infrastructure in the areas of education,
electricity, health and roads. Alongside these allocations, we
should also welcome the reforms in the procurement of
infrastructure. These reforms are aimed at improving or
strengthening the efficient delivery of infrastructure within the
allocated budget.
The construction industry is historically an industry of a few large
players who dominate the entire value chain in the industry.
Government procurement must be continually improved to change the
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sad reality that persists. The recent cases of collusion reported in
the media and highlighted by the Minister earlier on are now being
investigated by the Competition Commission and are also a sad
reminder of monopoly tendencies that are widespread in the
construction industry.
Our competition authorities must therefore strengthen their
mechanisms not just to minimise monopoly, but to root it out in its
historical and contemporary manifestations. Monopoly blocks new
entries and thus denies industry the necessary growth. Monopoly
escalates prices because it is by nature rent-seeking and rentsecuring.
Rail is a major opportunity to address both passenger and goods
transport. I am very happy that the new Majuba Railway Line will be
built in Mpumalanga this year to transport coal and ensure that our
roads are not clogged with trucks. I applaud the announcement by hon
Minister Patel that the state will localise the manufacture of
trains, including locomotives, coaches and wagons. That will create
jobs for South Africans and help to industrialise the country.
There are threats to effective infrastructure build. One of them is
bureaucratic delays and another is high costs. With the
Infrastructure Development Bill before this House, we believe it
will go a long way in dealing with such bottlenecks.
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The significance of the Local Procurement Accord is that it brings
together the private, public and labour sectors to drive local
procurement for the creation of jobs and will also help to improve
competitiveness of our economy. These NGP Accords are not just paper
agreements, therefore their success should be measured by the impact
they make in achieving their development goals. The consistent
commitment and reliability of all partners in driving the
implementation of these accords is therefore very important.
We applaud the decision to set up a localisation unit for the
Industrial Development Corporation, IDC, which will look at every
infrastructure project to determine if its components can be made in
South Africa. The Presidential Infrastructure Co-ordination
Commission, PICC, drives the national infrastructure plan to coordinate the activities of 18 strategic infrastructure projects in a
manner that will change the economy in relation to production,
employment and equity.
This plan will therefore bring to the fore the necessary
strengthening of the co-ordination of infrastructure projects in
both planning and delivery so as to get maximum economic gains. Part
of these economic gains should be a big expansion of our skills,
based particularly in the area of artisans and engineering skills.
To conclude, Chair, the ANC, as a leading force for unfolding the
fundamental social transformation agenda mandated by its 53rd
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national conference in Mangaung, will ensure that these progressive
policies, which will be for the better and change the conditions of
life of our people, will be implemented without fail. We will not be
diverted, for this is not just a mere debate for its own sake.
Through this we seek to strengthen our resolve for better life for
all our people.
The re-organisation of government architecture, as spelt out by the
hon Minister, will only help to bring faster change and propel us to
greater heights. Let me once more emphasise that, since we are
nearly 20 years into our democracy, the dominance of the economic
transformation in our polity is proving decisive on a daily basis.
In the current political and economic climate it seems we will fail
or succeed based on the progress we make on the economic front. And
I dare say that, based on the resounding success we have made in the
delivery of social services and the ANC track record, working with
our people, we will not fail. The ANC supports the Economic
Development Budget Vote because it is a budget forever. Thank you.
Mr S N SWART: Chairperson, the ACDP shares the concerns expressed by
most speakers that the biggest challenge facing us is jobs, jobs,
jobs. I’m sure members of the gallery will agree with that. The
question arises: How many jobs has this department actually created?
Yesterday Statistics SA indicated that 25,2% of South Africans are
jobless, depending, of course, on the definition you use. Clearly,
steps need to be taken to address this. We know there is consensus
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that the way forward is the National Development Plan. We are widely
in agreement with that across the board.
However, how do we achieve this growth? Is it realistic to say the
New Growth Path will achieve 5 million jobs over the next 10 years?
Yes, we would all like to see that, but are the plans in place and
how we will achieve those employment targets? Clearly, we have to
double the rate of economic growth. That is the key aspect. We’ve
got to move away from 2,8% to 7% and more sustainable growth. This
we need to do. We should not only blame the lack of growth on the
global climate, but also on our domestic challenges.
Whilst we appreciate that there is no textbook available to teach us
how to acquire this 5% to 7% growth and create more than 5 million
jobs, let us look at other emerging market countries such as Brazil,
India and China. The ACDP trusts as well that our membership of
Brazil, Russia, India, China and South Africa, Brics, will help and
assist us in this learning curve to achieve that goal.
The ACDP also supports the departure from a consumption-driven to a
production-driven economy. The focus of the state on infrastructure
is correct. Growth must not be an aim but must focus on job
creation. However, we also need to look at productivity and that is
the key. We need to look at that in order to be more globally
competitive to achieve our economic growth targets.
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It is undoubtedly so that productivity, innovation and
entrepreneurship are key economic growth aspects for job creation.
These aspects and programmes need to be supported. We all know that
entrepreneurs hold the key to unlocking the potential for increased
economic growth and job creation. They need to be supported in every
way possible. We see many of them here in the gallery. We, as the
ACDP, applaud the good work that they are doing.
The ACDP supports the New Development Plan, and to a certain degree,
the New Growth Path and the Industrial Policy Action Plan. We differ
to the extent to which the state itself creates jobs. Obviously, it
must be a partnership and, Minister, you are on record as saying
there must be the necessary partnership to create this national
environment for job creation. We support your efforts for social
dialogue and taking Nedlac to a greater level. We are, however,
concerned about the state of collective bargaining in South Africa.
I think everyone is concerned about that because agreements have
been breached and ignored, as we saw in the mining sector.
The ACDP, however, will support this Budget Vote and we thank you
for the good work that has been done. Thank you. [Applause.]
Mrs I C DITSHETELO: Chairperson, the UCDP supports the Budget Vote,
but job creation is central to economic development. For ordinary
people, economic development means waking up to a good, decent job
and to be able to provide for their families. There are a number of
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things that need to be addressed before we can positively make a
difference to current unemployment statistics.
If the World Economic Forum ranks South Africa’s labour laws the 7th
lowest among 139 countries, then this is an area worthy of
attention. Poor education outcomes also aggravate the issue of
unskilled labour and compromise sustainable economic development.
Infrastructure inadequacies also play a major role in determining
economic growth, hence the recent commitment to spend much of the
country’s budget is most welcome. However, infrastructural spending
is riddled with its own set of problems, like tenderpreneuring and
corruption, which make the country move at a snail’s pace in spite
of huge resources allocated. However, we need to continue addressing
infrastructural constraints, especially in energy.
The role of state-owned enterprises need clear clarifications so
that they can have a significant impact on the reduction of poverty
and the establishment of sustainable development. Even though the
idea of nationalisation seems to have been abandoned, there remains
a need to empower workers through share ownership schemes so that
they may acquire a stake in the rich mineral resources of this
country.
The private sector has a role to play in order for us to see
continued sustainable development. For instance, food retail
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companies need to be encouraged to establish partnerships with
emerging farmers. The last issue I want to speak about is economic
freedom, without which it is almost impossible to have other
freedoms. It is also an insult to call people ``free’’ when they
remain bound to economic underdevelopment. There are many proposals
in this regard. I admit that they all deserve our attention if we
possess the political willingness to address economic development. I
thank you. [Applause.]
Mr T D HARRIS: House Chairperson, this department’s flagship
document, the New Growth Path, suggests that its ideas can create
5 million new jobs by 2020. Lets see how that is going.
On the day that the Minister tabled the New Growth Path in November
2010, there were 6,5 million unemployed South Africans. Today there
are almost 7 million. So, right now there are 500 000 more
unemployed people than there were the day the New Growth Path was
introduced.
The increase in unemployment during the lifetime of the New Growth
Path is probably not a direct result of the muddled policies in the
document, because almost all of them have not been implemented,
thankfully. The whole country has been talking about the National
Development Plan instead.
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However, unemployment has almost certainly been worsened by the
ideological stand-off between the ideas coming out of the Department
of Economic Development on the one hand, and those coming from
National Treasury and the National Planning Commission on the other.
The best example of this is seen in the shameful Youth Employment
Accord published last month under the stewardship of Minister Patel
and the Department of Economic Development. I encourage all the
members of this House to go and read this document. I’m sure they
will agree with me that it is one of the weakest documents that this
government has ever worked on.
Most of the ideas in the Youth Employment Accord will simply not
work for creating new jobs. There is no way that youth brigades or
youth co-operatives can even begin to create the millions of jobs we
need for young South Africans. This idea of youth set-asides would
have a significant distortionary effect on the labour market. Most
importantly, the Youth Employment Accord reads like an embarrassing
effort to oppose Treasury’s youth employment tax incentive. Not only
does it lack any reference to the incentive, but it also actively
speaks out against it.
This means we are in an extraordinary situation, in which National
Treasury has now tabled not one, but two tax incentives to subsidise
the employment of young people. Whilst the so-called Youth
Employment Accord is meant to represent the overall strategy to
tackle youth unemployment in South Africa, it leaves out the tax
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incetives entirely. It is a tragedy for this government to have an
ideological stand-off blocking progress in the exact parts of
Cabinet that should be working to create jobs.
Thirty-eight percent of South Africa’s workforce cannot find work,
or has given up looking. In the past three months, the ranks of the
unemployed nationally have increased by 73 000. This is despite the
best efforts of the Western Cape, where we’ve brought the number of
unemployed workers down by 16 000 in the same period.
Imagine how many more workers could have had the chance to join us
in the gallery today if government worked hard at bringing down the
cost of doing business, as they do in Minister Patel’s vague record.
Over the past five years, we have given this department R2,7 billion
of taxpayers’ money. With this money, the department has achieved
three things.
Firstly, it has published six accords that together have not created
a single job. Secondly, it has given Cosatu a voice in the economic
cluster. Lastly, it has worked hard to provide ideological
opposition to Treasury and the National Planning Commission,
blocking new policies and reforms that would start to tackle the
world’s highest rate of unemployment. In anybody’s book that is not
good value for money. I thank you. [Applause.]
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The DEPUTY MINISTER OF ECONOMIC DEVELOPMENT: Hon Chairperson, I
would like to thank the Minister, the director-general and the
officials for the support that they have given to the department up
till this day. I want to start off by reflecting on a historical
statement, which I recall occurred at the business and labour
hearings of the Truth and Reconciliation Commission, where Prof
Sampie Terreblanche, an academic, economist and writer, to name a
few of his credentials, testified to the effect that apartheid was
beneficial to white-owned businesses, because it was an integral
part of a system premised on the exploitation of black workers and
the destruction of black entrepreneurial activities.
Therefore, I logically attribute this debate to Mrs Charlotte
Maxeke, a gallant freedom fighter, fearless tigress, scholar and
leader of the struggle against the Natives Land Act of 1913. This
legislation was part of the machinery which was established to
systematically impoverish, marginalise and exploit the oppressed.
Of course, we have to look at our Constitution, for it entrenches
economic and cultural rights in an unprecedented manner. Our own
first President of the democratically elected government, Mr Nelson
Mandela, stated that no political democracy can survive and flourish
if the masses of our people remain in poverty, without land and
without tangible prospects for a better life.
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Along the same lines, the Freedom Charter states that the people
shall share in the country’s land. Of course, logically, our
President, Mr J G Zuma, stated in his state of the nation address in
2009, at the birth of this historic department, that the creation of
decent work will be at the centre of our economic policies and will
influence our investment attractions. I think the Minister was able
to demonstrate the progress made by this department thus far.
There has been a reference to the New Growth Path, NGP, and of
course there are some misunderstandings. If you take a look at where
we come from, which was a systematic system, legalised over many
years, which was meant to destroy jobs, I think we should be
realistic in saying that the NGP of the Department of Economic
Development is undoing that process. It has to be intense as it is
being implemented and it is going to take time.
Sectors have been identified, and we have heard a lot about what has
been achieved through infrastructure development and the mining
value chain. They include beneficiation, agriculture and agroprocessing, rural development, manufacturing, tourism, the creative
industries and high-level services.
According to all monitoring and evaluation reports, it is clear that
we are a nation at work, with a clear vision to achieve our job
targets. Of course, we have to admit that we still have people who
are vulnerable in our midst, like women, the youth, the disabled and
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people in rural communities. Unfortunately, they are still
predominantly black and they constitute 60% of our society.
We would recall that last year, Africa as a whole lived through the
trauma of the Arab Spring uprisings, and we are hard at work to
ensure that we convey a sense of hope to our young people through
the work that will emanate from the signed Youth Employment Accord.
We are determined and resolved to work within a sustainable and
comprehensive strategy, whereby young people have access to skills
that are strategic and that are relevant to industries of interests.
We firmly believe in the future of this country and have embraced
the National Development Plan Vision 2030 as ``umkhombandlela
wethu’’ [our guide.] Our Minister in the Presidency: National
Planning Commission, Mr Trevor Manuel, said during the launch of the
country’s overall vision for South Africa that the plan we hand over
is about the actions that all of us should take to secure the future
chartered in our Constitution.
Of course, along the same lines as the NGP, the emphasis is on
partnerships. It is not about government, the Opposition or the ANC
not having done that, but it is a national call for all of us to
work strategically in partnerships to find ways of making
breakthroughs.
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When it comes to the question of the youth, the department will
continue to tackle youth unemployment, using whatever resources are
available, not only within the department or the sector, but also
among our partners in the private sector. The whole area of
information communication technology, ICT, given its dynamic nature,
hold great prospects for young people and they seem to be attracted
to it, as well as areas of manufacturing.
The policy pillars of inclusion and sustainability are very, very
important. We are working hard to learn, as we visit our most
vulnerable communities, like the 23 poorest municipalities that we
are having dialogues with on an ongoing basis. One of the lessons
that is uppermost is the need to integrate and co-ordinate our
efforts, as we have done at the level of infrastructure development.
Support for small and medium enterprises and co-operatives should be
enhanced and we are basically looking at a possible model whereby we
invest at a higher level during the phase of entry, given the
challenges of the new entry phase. In most instances people’s cooperatives and small, medium and micro enterprises, SMMEs, have not
been sustainable, mainly because we did not invest heavily in their
capacity building from the beginning. We do believe that through
trade policies, we can leverage and continue, like the Industrial
Development Zone, IDZ, to make sure that our SMMEs are empowered to
be suppliers to big industries. In that way they will move beyond
survival and become suppliers of choice.
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I learned a good example from a colleague, the Deputy Minister of
Transport, Ms Sindiswa Chikunga, with regard to the rolling stock
programme of the Passenger Rail Agency of SA, Prasa. She has gone
public nationally and, accompanied by many of us, has clearly stated
that the vulnerable groups, which are people from rural areas, women
and our youth, will benefit from this as manufacturers, not only
with regard to social services. They have set aside huge amounts of
money to ensure that it happens, and the multinationals that are
benefiting from this are given clear conditions to support the
skills development, which of course will mean that many more of our
young people are included.
Through other projects we are also learning to support those that
are run by women, like poultry farming in KwaZulu-Natal, under the
leadership of Dr May Mkhize. This clearly says that we need to
invest in the whole value chain, the breeding, the abattoir,
packaging, quality, storage and enterprises. In that way, we are
clearly turning the tide around, where women will be given support
on a small scale and they are empowered to enter the whole value
chain.
In the area of waste management, we have also had interactions with
communities like Alexandra township, and again the strategy there is
to find ways of ensuring that our vulnerable groups participate at
all levels, not only in waste collection, but also by using new
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technologies in creating alternative energies, and also in moving on
to producing manure and using it for farming.
In conclusion, I would like to reiterate our commitment by using an
example from a children’s book which many of you might know. It is
about an ugly duckling that was laughed at and scorned by the swans.
One day that ugly duckling became a beautiful swan that all the
swans admired. It is time that we turn small businesses into
beautiful swans – which will be a solution to joblessness – instead
of treating it like ugly ducklings. The meaning of this children’s
story is that we cannot afford to support SMMEs half-heartedly, as
they are key to growing an inclusive economy, creating massive
employment and also skilling our people without any threat. I thank
you. [Applause.]
Mof D R TSOTETSI: Mohlomphehi Modulasetulo, Maloko a Hlomphehileng a
Palamente ho ya ka ditulo tsa lona jwalo, le baeti ba rona ba
hlomphehang ba bohlokwa, ba entseng hore e be kajeno re bitswa
Maloko a Palamente, pele ke bua ka moruo o motala, ke tla rata hore
ke re le se ke la makalla maratanyana a bang teng ka hara Ntlo. Nako
yane ya dikgetho e se e fihlile. Jwale, ka ho hopola hore dimilione
tse leshome le motso o le mong tsa batho ba kgethileng ANC di ntse
di le teng, ebile manane a tlo eketseha, ke ka hona re ntseng re
itlatlarietsa. Jwale, le se ke la makala. (Translation of Sesotho
paragraph follows.)
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[Mrs D R TSOTETSI: Hon Chairperson, hon Members of Parliament, and
our distinguished guests who made it possible for us to be called
Members of Parliament today, before I speak about the green economy,
I would like to say that you should not be amazed by the noises that
are sometimes experienced in this House. Election time is almost
here. So, if we could keep in mind that 11 million people who voted
for the ANC are still around, and that the numbers are going to
increase, we would understand why there is so much commotion. So, do
not be amazed.]
The green economy benefits households, business communities and the
government, local government in particular, as it is the structure
that deals with people directly on a daily basis. Through the green
economy, municipalities could enhance their revenue base and
strengthen local economic developments, wherein small, medium and
macro enterprises, SMMEs, and co-operatives, co-ops, find
expression. In my previous deployment at Emfuleni Local
Municipality, I happened to be part of the team that undertook a
study tour to the Netherlands. The best thing that we learned is the
impact of an incentive as a reward for compliance. People take their
domestic garbage to the municipality and this garbage is separated
and weighed. The amount of garbage reduces the amount which was
supposed to be paid on rates. We hope that our municipalities would
consider that.
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One of the research documents produced by the Industrial Development
Corporation, IDC, and the Development Bank of South Africa, DBSA,
team in 2011, it is spot-on regarding green jobs, ie employmentcreation potential of approximately 98 000 new direct jobs on
average in the short term; almost 255 000 in the medium term; and
around 462 000 employment opportunities in the formal economy in the
long run. By now, the numbers have increased.
Eo hee ke ntho eo re e bitsang tsebo e tlwaelehileng, hore dipalo di
atile ... [This is what we call common sense, the numbers have
increased ...]
... but the DA will always deny that ...
... empa re a tseba hore ke tsebo e tlwaelehileng, e a tsebahala.
[... but we know that this is common sense, it is well known.]
However, common sense is not always common. For instance, “ANC
evaporating into thin air in 2019 because it delivered nothing”.
O a bona ena hee, le dibuka tsa ntshetsopele ya mathomo ya bongwana
ha di na yona tsebo e tlwaelehileng e tjena, eo re e bitsang ka hore
ke keretjhe ha re bua ka sekgowa ... [Concerning this issue, even
books on early childhood development do not have such common sense,
which is what we call “crèche” in English ...]
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Possibly in one of the institutions for mentally challenged people
...
... re ka e fumana tsebo e tlwaelehileng e jwalo. [... we can find
such common sense.]
At least, in such cases the particular common sense would be
understandable and tolerated.
The second draft of the National Water Resources Strategy released
recently by Minister Molewa warns that South Africa is at risk if
water is not properly managed and responsibly used. Rural
communities are hardest hit as far as the scarcity of water is
concerned. This scarcity has an adverse impact on all efforts for
development as most of them depend on agricultural development, an
area which they can master and excel in if water is adequate.
However, we must not lose sight of the Presidential Infrastructure
Co-ordination Commission, PICC. We hope the PICC has the necessary
capacity to fast-track rural development and development in general.
We must also take care of the cost of doing business so that we
attract foreign investment without compromising local procurement.
Mr Patel and members of the Committee on Economic Development shared
their achievements with us while, at the same time, we acknowledged
weaknesses and bottlenecks, some of whom are as a result of
resistance by those who said the ANC would rule South Africa over
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their dead bodies. But, here is the ANC, governing South Africa over
their living bodies! [Applause.]
However, we must rise above petty and cheap politics and acknowledge
previous oppressors and beneficiaries of apartheid laws who have
seen the light. Seeing the light has little to do with joining the
ANC and its alliance partners, but has more to do with the mindset.
Hon member Mubu, my friend, if you want to speed up service
delivery, you decentralise the whole and deploy people in terms of
their special skills. That is why tertiary institutions have
lecturers and schools have teachers who specialise in various
subjects. Imagine what would happen if one teacher was teaching all
the subjects? This used to be the situation during apartheid.
Apartheid has inflicted a lot of harm to most of us. But, little did
we know that it had caused irreparable damage to the mindset of some
until we heard them speaking.
Mme Ngonyama, mngani wami, I trusted your listening skills but you
really disappointed me. The Minister had gone to town tabulating
achievement and plans in place, but you still say we have done too
little to measure. The promises that you are referring to are
commitments which are tabulated explicitly in the Green Economy
Accord that you all know about.
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Mme Hlengwa, there will never be a time when all the people in any
country are employed. South Africa is worse as big business retrench
workers whenever they demand what is due to them. Labour is not
donated but sold to the highest bidder. It is painful to see
companies take advantage of the plight of our foreign brothers and
sisters. They see them as a variable to minimise costs. That is
cheap labour to the detriment of the good plans for job creation and
economic growth.
Fortunately, Mme Hlengwa, age is on your side. Soon, you will
understand the old trick of divide-and-rule. You have never worked
for these predators. Otherwise, you wouldn’t be expecting government
to undo what was practised for over 50 years in one night.
Hon member Hoosen, the prophets of doom that came before you failed
to educate you. They became frustrated and ended up singing,
``Nelson Mandela, ha ho na ya tshwanang le wena’’. [“Nelson Mandela,
there is no one like you”.] Why don’t they sing about other leaders
who equally contributed to the struggle against apartheid? The same
Mandela was labelled one of the most dangerous terrorists.
The things that you say about Minister Patel are the same things
they said about our former freedom fighters, but today they bow
before them. It is because of the DA, or IDA, that most black people
are not educated. Illiterate as they are, when coming to election
time, make no mistake, they will vote for the ANC.
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Hon Harris, you are always negative and I think it is now time for
government to assist you. Hon member Motsoaledi and his team must
organise psychologists for you. You are too young not to be able to
read and interpret documents, and see where and what government has
delivered, where it has failed and why. You are one of the people
who are privileged to have received a better education.
Jwale, motho o a ipotsa hore na o ile wa pasa jwang sekolong. Ka
nako e nngwe ha o pase hoba o arabile dipotso ka nepo; empa ka nako
e nngwe o pasa hobane o arabile dipotso ka puo ya Afrikaans, ho sa
kgathaletsehe hore na di nepahetse kapa di fosahetse. [Ditsheho.]
[Mahofi.] (Translation of a Sesotho paragraph follows)
[Now, one wonders how you passed in school. Sometimes a person does
not pass because they answered questions correctly; but sometimes
they pass because they answered questions in Afrikaans, irrespective
of whether they were correct or not. [Laughter.] [Applause.]]
Coming back to the green economy ... [Interjections.] No, I am
trying to skip some. I’ll talk about the importance of nurturing the
environment. This is an action which brought about the concept of
``green economy’’. I agree that the green economy is usually an
economic revolution, not only in South Africa, but worldwide. A
number of projects in the green sector have been initiated, such as
the 28 projects in wind, solar and small hydro technologies; rolling
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out of the solar water geyser; and the establishment of the Green
Fund.
The projected 300 000 jobs that are going to be created over the
next decade through the green industries will be achievable through
these inventions and many others that are in the pipeline. The
Industrial Development Corporation’s role as a driving force of
commercially sustainable industrial development has not gone
unnoticed. It has done a lot to put us where we are today.
Successful projects such as DCD Wind Towers factory; bioethanol
projects both in the Eastern Cape – Hon Ngonyama, Eastern Cape is
included this time; - the SA Calcium Carbide project in Newcastle;
and the Russell Stone soy crushing plant in Bronkhorstspruit are
examples of some projects funded through the IDC, which are a means
of enhancing industrialisation. The benefits of these projects are
manifold. They include environmental localisation and rural
development benefits, and target poorer provinces for downstream
development.
As for the household food that is left over fresh or stale - the
paper in the yard, and small pieces of metal - could manufacture
compost. But, is there a market for that compost? In as far as our
wellbeing is concerned, we have the power to make or break. If you
go to the landfill site and stand there for some time, just next to
a small heap of rubbish, you will feel the heat coming out of it.
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That is the energy which is generated by that rubbish. It happens
the natural way, but now we have sophisticated means to generate
energy taking into consideration the fact that we have deadlines to
meet.
To further quote the Green Jobs document verbatim:
The largest contributions to job creation are likely to be
associated with natural resource management due to the rich
endowment of natural capital in South Africa and the need for its
commitment for its preservation.
Government has proved its commitment to natural resource management.
We have passed the National Environmental Management Act, 59 of
2008, Nema. The Act talks to policies, standards and regulations.
Nema calls for greater collaboration and alignment of departments.
For instance, Department of Health should guard against
noncompliance relating to medical waste.
The Department of Mineral Resources must take care of the mines that
contaminate water, and they do not cover unused, depleted mines. The
Department of Agriculture – it is unfortunate that member Lekota is
not here, but it is meant to assist hon Lekota - must punish people
who mercilessly kill horses and donkeys and dump them in open fields
next to human settlement areas. The same applies to dogs, hon Huang.
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The Department of Justice capacitates the relevant authorities to
bite hard on noncompliance. Not only is the environment affected,
but our health as well. This also impacts on the labour force.
People become infected and are forever on sick leave. We need a
healthy workforce so that we accelerate the Green Economy.
Water pollution is the most deadly element or component of the whole
cycle. I hope we are observing the cycle, the ecosystem. If the
environment is not nurtured, it will be a vicious cycle. The hazards
that come with climate change are as a result of noncompliance with
legislation and irresponsible behaviour, littering and polluting of
air and water, which are sources of life and development. [Time
expired.] [Applause.]
The MINISTER OF ECONOMIC DEVELOPMENT: House Chairperson, I would
like to start off by inviting hon members from all parts of the
House as well as members of the audience to join us at the reception
in the New Assembly Restaurant at a modest reception, I point out,
immediately after the conclusion of this debate.
It’s clear that there is consensus on some issues in this debate.
Jobs are central. Inclusive growth is important, and by that we mean
both higher rates of growth, but also more job-absorbing growth. The
question is how. And I think what we have been able to do as the
executive and what a number of Members of Parliament from the ruling
party did was to spell out, indeed, concrete ways how we are doing
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that, how we are making an impact as government, how we are making
an impact as Cabinet and how we are making an impact as a department
through many excellent interventions, some great ideas which we will
take forward. But not all the interventions have maintained that
high standard. Perhaps, as someone pointed out, because an election
is around the corner.
Hon Harris says that the Youth Employment Accord is shameful, it is
the weakest document of government, it is going to fail, and so on.
I have brought a copy of the Youth Employment Accord for the hon
member. I will draw his attention to page 24. On page 24, I will
draw his attention to the fact that one of the signatories of the
accord is a certain Mr Gana Makhashule. Mr Makhashule is the federal
Deputy Chairperson of the DA ... [Applause.] ... and until last
week, he was the leader of the DA youth. He signed the accord on
behalf of the DA youth. Perhaps he is a little bit more passionate
about employment of young people and a little bit less concerned
about the grandstanding that we saw from the hon Harris. [Applause.]
The hon Harris, of course, is described on the website as ``shadow
minister of finance’’. One of the requirements of a minister of
finance is the ability to count. I think it is fairly intrinsic to
the job. So, if you aspire to be the shadow minister - hopeful one
day you will get to be more than the shadow minister - although that
may be a very long time from now, let’s, in the meantime, use the
time to count. [Laughter.]
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On the website yesterday, before looking at anything, when the
Statistics SA Quarterly Labour Force survey came out, Mr Harris
rushed to print and he says in print:
Fortunately, the DA-run Western Cape bucked the negative trend by
creating 8 000 jobs in the quarter, seeing unemployment reduced
further.
I have brought the hon Harris a copy of the Quarterly Labour Force
survey. I have taken the time to mark it with post-it notes. I draw
his attention, amongst others, to the areas that indicate what has
happened to employment in the Western Cape in the first quarter of
this year ... [Interjections.] ... 14 000 jobs were lost.
[Applause.]
Now, we don’t celebrate that, because those are our people. Those
are people for whom we need to try to get jobs, but what we do want
to point out is that, as hon Ngonyama said, “Unemployment has no
silver bullet”. It means really working on it consistently in a
stubborn focused way, and hon Mabasa showed us examples of concrete
ways in which jobs have been created. I am going to leave a copy of
the Quarterly Labour Force survey here for the hon Harris.
[Laughter.]
I will also leave a copy of the Youth Employment Accord here for him
so that he may be able to see what I have said. But it seems to me
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that, unfortunately, these things don’t reside only in one member.
The hon Mubu, who is generally very pleasant in our committee until
an audience appears, as today, pointed out that the Walmart matter
is a waste of public money. I will draw the hon Mubu’s attention to
the hon Ntuli, who provided a sharp, incisive, sophisticated
understanding of competition policy. Please study the Hansard; it
will be of great use to you. [Applause.] [Laughter.]
The hon Hoosen, who also aspires to be a shadow-something at some
stage, posed a question. He says the information we gave in the
Small Enterprise Finance Agency, Sefa, is not correct. I have a copy
of the Sefa presentation here; I have a calculator here and I will
leave a copy of the Sefa business plan for you. I have added up the
five years; I have added 30% and I am happy - over a cup of coffee to show hon Hoosen how to do a percentage calculation. [Applause.]
[Laughter.]
Finally, hon House Chair, I would make the point that part of the
drama of a debate is this kind of thing. It spices up the discussion
and makes it less boring, and so on. But employment is serious,
economic development is serious, fighting poverty, inequality, is
serious. We need to build consensus to work together.
When the economy actually creates 44 000 jobs in three months, let’s
celebrate it. When it creates 199 000 jobs over 12 months, let’s
celebrate it. We are South Africans together. We are in this
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together, and we can win the battle against poverty, unemployment
and inequality together. Thank you very much. [Applause.]
Debate concluded.
The House adjourned at 18:19.
__________
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
FRIDAY, 26 APRIL 2013
TABLINGS
National Assembly and National Council of Provinces
1.
The Speaker and the Chairperson
(a)
Strategic Plan of the Public Protector of South Africa for 2013-2016 and Vision for 2020.
MONDAY, 29 APRIL 2013
TABLINGS
National Assembly and National Council of Provinces
7 MAY 2013
1.
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The Minister of Home Affairs
(a)
Agreement between the Government of the Republic of South Africa and the Government
of the Republic of Italy regarding Exemption of short term Visa requirements for holders
of Diplomatic, service and official Passports, tabled in terms of section 231(3) of the
Constitution, 1996.
(b)
Agreement between the Government of the Republic of South Africa and the Government
of the Kingdom of Spain regarding the waiver of Visa requirements for holders of
Diplomatic Passports, tabled in terms of section 231(3) of the Constitution, 1996.
(c)
Agreement between the Government of the Republic of South Africa and the Government
of the Republic of Panama concerning Reciprocal Exemption from Visa requirements for
holders of Diplomatic, Official, Consular and Special Passports, tabled in terms of section
231(3) of the Constitution, 1996.
(d)
Agreement between the Government of the Republic of South Africa and the Ministry of
Interior of the Republic of Cuba regarding the provision of Technical Solutions and
Support, tabled in terms of section 231(3) of the Constitution, 1996.
COMMITTEE REPORTS
National Assembly
7 MAY 2013
1.
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REPORT OF THE STANDING COMMITTEE ON APPROPRIATIONS ON THE
APPOINTMENT OF DIRECTOR FOR THE PARLIAMENTARY BUDGET OFFICE,
DATED 26 APRIL 2013
1. The Parliamentary Budget Office
Section 15 of the Money Bills Amendment Procedure and Related Matters Act, Act No. 9 of 2009 (the
Act), establishes the Parliamentary Budget Office. The Parliamentary Budget Office must provide an
independent, objective, professional advice and analysis to Parliament on matters related to the budget
and other money Bills. It also makes it the responsibility of the Director to manage the Parliamentary
Budget Office. The Director must be appointed by resolution of both Houses of Parliament, after a
recommendation of the Committees on Finance and Appropriations of both Houses. In terms of
subsection 15(7) of the Act, any committee considering making such recommendation contemplated in
the Act must do so in an open and transparent manner. In addition, the aforementioned Committees
must also recommend to the Houses of Parliament the conditions of service for the appointee.
2. Setting up of Budget Office and Appointment of Director
On the 24th May 2012, the National Assembly, citing technical challenges that have become apparent
during the implementation of the Act, passed a resolution instructing the Standing Committee on
Finance (the Committee) to review the Act with a view to introduce amending legislation if necessary.
A Political Task Team was appointed to advise the Houses on the implementation of the Act, and to
consider pertinent aspects relating to the implementation of the Act. The matter of the appointment of
the Director to the Parliamentary Budget Office also received the attention of the Task Team.
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Since May 2012, Professor M I Jahed was seconded from the Development Bank of South Africa
(DBSA) to assist Parliament in the process of setting up the Parliamentary Budget Office.
The project led by Prof. Jahed has been able to outline and clarify the functions and scope of the
office, design an operational structure, establish networks with external stakeholders and engage
political parties and relevant Committees.
The Task Team was satisfied with the work that Prof. Jahed has accomplished within a limited period
of time and resources. In addition, the Task Team was of the view that it was important to ensure
continuity in the work that has been initiated. To this end, the Task Team recommended to the four
Committees charged with the responsibility of identifying the Director for the Parliamentary Budget
Office to consider Prof. Jahed for appointment as Director.
3. Prof. Jahed’s Profile
Prof. Jahed holds a PhD in Economics and obtained experience and expertise in economic
development, economic policy formulation, and public and development management. He served as a
senior economic planning specialist at the DBSA, was appointed Deputy Director General: Office of
the Premier Limpopo Province, responsible for economic growth and development, economic policy,
economic planning, transformation and provincial administration.
Prof. Jahed joined the South African business sector representative group, the National Business
Initiative, as Director of Economics. From 2003 to 2005, Prof. Jahed was seconded by the South
African Presidency as Chief Economist and Head of Policy, Strategy and Research of the New
Partnership for African Development (NEPAD) Secretariat. From 2005 to 2010, Prof. Jahed was a
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Professor at the University of Witwatersrand (Wits) in the Graduate School of Public and
Development Management (Wits Public and Development Management (P&DM)). Prof. Jahed taught
macroeconomic policy, public economics and public finance, and supervised Master’s and Doctoral
candidates. Prof. Jahed continues to serve as Visiting Professor at Wits P&DM.
Since May 2010, Prof. Jahed has been employed at the DBSA as Divisional Executive: Policy and
Integration. In addition to being appointed to the National Presidential Broad Based Black Economic
Empowerment (BBBEE) Advisory Council, Prof. Jahed serves on various Boards including,
Chairman: Magalies Water Board and Director: Small Business Project.
4. Committee’s Deliberations
The Standing Committee on Appropriations deliberated on the recommendations of the Task Team,
and on Prof. Jahed’s profile. In reaching its decision on the matter, the Committee took into
consideration the substantive interactions that Prof. Jahed has had with the different political parties
and with individual members, his extensive expertise in finance and economics, and the degree of
professionalism with which he has conducted his work over the past eleven months. Based on the
above points, the Standing Committee on Appropriations is of the view that Prof. Jahed is a suitable
candidate to head the Parliamentary Budget Office.
The Committee having engaged and tested the suitability of Prof. Jahed as the Director of the
Parliamentary Budget Office, recommended that he be offered a 5 year employment contract to head
the office in line with section 15 (5) (b) of the Act.
5. Conclusion and Recommendation
7 MAY 2013
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In accordance with subsections 15(5) (a) and (b) of the Act, the Standing Committee on
Appropriations recommends as follows:
5.1
That Professor MI Jahed be appointed as Director of the Parliamentary Budget Office.
5.2
That the appointment of the Director of the Parliamentary Budget Office
be subject to
agreement to a 5 year performance based renewable contract with the conditions of service
(including salary and allowance) being substantially the same as those of the top rank of the
public service as per subsection 15(5)(b) of the Act.
Report to be considered.
TUESDAY, 30 APRIL 2013
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Classification of Bills by Joint Tagging Mechanism (JTM)
(1)
The JTM in terms of Joint Rule 160(6) classified the following Bill as a section 75 Bill:
7 MAY 2013
(a)
Page 211 of 329
South African Human Rights Commission Bill [B 5 – 2013] (National Assembly –
sec 75).
(2)
The JTM in terms of Joint Rule 160(6) classified the Protection of Traditional
Knowledge [PMB 3 – 2013] (National Assembly – sec 76), introduced in the National
Assembly, as a section 76 Bill and as a Bill falling within the ambit of section 18(1) of the
Traditional Leadership and Governance Framework Act, 2003 (Act No 41 of 2003).
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Police
(a)
Civilian Secretariat for Police Report on SAPS (South African Police Service) Compliance
with the Domestic Violence Act, 2011 (Act No 2 of 2011), for the period April 2012 to
September 2012.
(b)
Policy guidelines for the selection of national priority offences by the National Head of the
Directorate for Priority Crime Investigation (DPCI).
(c)
Policy guidelines for the referral to the DPCI by the National Commissioner of any offence
or category of offences for investigation by the DPCI to Parliament for concurrence.
THURSDAY, 2 MAY 2013
7 MAY 2013
Page 212 of 329
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Calling of Joint Sitting
CALLING OF JOINT SITTING OF PARLIAMENT
The Speaker of the National Assembly, Mr M V Sisulu, and the Chairperson of the National Council
of Provinces, Mr M J Mahlangu have called a joint sitting of Parliament for Tuesday, 7 May 2013 at
14:00 in terms of Joint Rule 7(2), for Mr G E Jonathan, President of the Federal Republic of Nigeria,
to address Parliament.
M V SISULU, MP
M J MAHLANGU, MP
SPEAKER OF THE NATIONAL
CHAIRPERSON OF THE
ASSEMBLY
NATIONAL COUNCIL OF
PROVINCES
2.
Draft Bills submitted in terms of Joint Rule 159
7 MAY 2013
(1)
Page 213 of 329
Electoral Amendment Bill, 2013, submitted by the Minister of Home Affairs.
Referred to the Portfolio Committee on Home Affairs and the Select Committee on
Social Services.
3.
Referral of Bill to National House of Traditional Leaders
(1)
The Secretary to Parliament has, in accordance with section 18(1) of the Traditional
Leadership and Governance Framework Act, 2003 (Act No. 41 of 2003), referred the
Protection of Traditional Knowledge Bill [PMB 3 – 2013] (National Assembly – sec 76)
to the National House of Traditional Leaders, which must, within 30 days from the date of
the referral (2 May 2013), make any comments it wishes to make.
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Home Affairs
(a)
Agreement between the Government of the Republic of South Africa and the Governments
of the Benelux States on the Exemption of Visa Requirements for holders of Diplomatic,
Official and/or Service Passports, tabled in terms of section 231(3) of the Constitution,
1996.
COMMITTEE REPORTS
7 MAY 2013
Page 214 of 329
National Assembly
1. Report of the Portfolio Committee on Trade and Industry on the Intellectual Property Laws
Amendment Bill, dated 2 May 2013
The Portfolio Committee on Trade and Industry, having reconsidered the Intellectual Property Laws
Amendment Bill [B 8B-2010] (the “Bill”) referred to it by resolution of the National Assembly
adopted on 14 March 2013 (Announcements, Tablings and Committee Reports, 15 March 2013), and
reclassified by the Joint Tagging Mechanism (JTM) as a section 76 Bill, reports as follows:
1.
In the committee’s report dated 6 March 2013 (Announcements, Tablings and Committee Reports,
dated 6 March 2013), the committee concurred with the President’s views that the Bill is not a
Money Bill and therefore does not fall under section 77 of the Constitution, 1996, and further,
after having been advised by the JTM, agrees that provisions of the Bill substantially affect certain
matters listed in Schedule 4 of the Constitution, in particular traditional leadership and cultural
matters, and should therefore be dealt with in terms of the section 76 of the Constitution.
2.
By resolution of the National Assembly adopted on 14 March 2013, the Intellectual Property
Laws Amendment Bill [B 8B – 2010] was submitted to the JTM for reconsideration of its
classification, and would be referred to the National House of Traditional Leaders (NHTL) for
comment (Announcements, Tablings and Committee Reports, 18 March 2013).
3.
In a letter dated 10 April 2013, the NHTL submitted its comments on the Bill for consideration by
the committee in accordance with section 18(1) of the Traditional Leadership and Governance
Framework Act, 2003, Act No. 41 of 2003.
7 MAY 2013
4.
Page 215 of 329
The committee, having considered the comments of the NHTL, is of the opinion that the
substance of the comments received from the NHTL does not materially differ from the original
comments presented to the committee on 20 October 2010 and accordingly is satisfied that it has
duly considered all comments made by the NHTL.
5.
After deliberations, the committee recommends that the Bill is adopted without amendment. The
DA objected.
Report to be considered.
CREDA INSERT - T130502e-Insert2 – PAGES 1069 - 1090
CREDA INSERT - T130502e-Insert3 - PAGES 1090 - 1096
FRIDAY, 3 MAY 2013
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Rural Development and Land Reform
(a)
Report of the Communal Property Associations for 2011-2012, tabled in terms of section
17 of the Communal Property Associations Act, 1996 (Act No 28 of 1996).
7 MAY 2013
2.
Page 216 of 329
The Minister of Finance
(a)
Government Notice No R. 32 published in Government Gazette No 36083, dated 25
January 2013: Amendment of Schedule No 3 (No 3/1/691), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(b) Government Notice No R. 98 published in Government Gazette No 36147, dated 15
February 2013: Amendment of Schedule No 1 (No 1/1/1463), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(c)
Government Notice No R. 104 published in Government Gazette No 36147, dated 15
February 2013: Amendment of Schedule No 2 (No 2/1/347), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(d) Government Notice No 145 published in Government Gazette No 36192, dated 27
February 2013: Fixing of rate per kilometre in respect of motor vehicles for the purpose of
section 8(1)(b)(ii) and (iii) of the Income Tax Act, 1962 (Act No 58 of 1962).
(e)
Government Notice No 147 published in Government Gazette No 36195, dated 27
February 2013: Area demarcated by City of Cape Town as urban development zone, in
terms of the Income Tax Act, 1962 (Act No 58 of 1962).
(f)
Government Notice No R. 178 published in Government Gazette No 36226, dated 15
March 2013: Amendment of Schedule No 4 (No 4/2/364), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
7 MAY 2013
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(g) Government Notice No 216 published in Government Gazette No 36277, dated 20 March
2013: Publication of allocations, in terms of the Division of Revenue Act, 2012 (Act No 5
of 2012) as amended by the Division of Revenue Amendment Act, 2012 (Act No 18 of
2012).
(h)
Government Notice No R. 242, published in Government Gazette No 36320, dated 27
March 2013: Amendment of Rules in terms of the Customs and Excise Act, 1964 (Act No
91 of 1964).
(i)
Government Notice No R. 243, published in Government Gazette No 36320, dated 27
March 2013: Amendment of Rules (DAR 115), in terms of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(j)
Government Notice No R. 225, published in Government Gazette No 36279, dated 28
March 2013: Amendment of rules (DAR 114) in terms of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(k) Government Notice No R. 227, published in Government Gazette No 36294, dated 28
March 2013: Amendment of Schedule No 1 (No 1/1/1466), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(l)
Government Notice No R. 228, published in Government Gazette No 36294, dated 28
March 2013: Amendment of Schedule No 1 (No 1/2B/159), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
7 MAY 2013
Page 218 of 329
(m) Government Notice No R. 229, published in Government Gazette No 36294, dated 28
March 2013: Amendment of Schedule No 1 (No 1/3A/18), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(n) Government Notice No R. 230, published in Government Gazette No 36294, dated 28
March 2013: Amendment of Schedule No 1 (No 1/3C/19), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(o) Government Notice No R. 231, published in Government Gazette No 36294, dated 28
March 2013: Amendment of Schedule No 1 (No 1/3D/120), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(p) Government Notice No R. 232, published in Government Gazette No 36294, dated 28
March 2013: Amendment of Schedule No 1 (No 1/5A/157), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(q) Government Notice No R. 233, published in Government Gazette No 36294, dated 28
March 2013: Amendment of Schedule No 1 (No 1/5B/158), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(r)
Government Notice No R. 234, published in Government Gazette No 36294, dated 28
March 2013: Amendment of Schedule No 6 (No 6/1C/34), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
7 MAY 2013
(s)
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Government Notice No R. 235, published in Government Gazette No 36294, dated 28
March 2013: Amendment of Schedule No 6 (No 6/3/35), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(t)
Government Notice No 286, published in Government Gazette No 36315, dated 28 March
2013: Effective date for electricity tariff determination for municipalities and municipal
entities, in terms of the Local Government: Municipal Finance Management Act, 2003 (Act
No 56 of 2003).
(u) Government Notice No R. 248, published in Government Gazette No 36308, dated 5 April
2013: Amendment of Schedule No 4 (No 4/2/365), in terms of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(v) Government Notice No R. 249, published in Government Gazette No 36308, dated 5 April
2013: Amendment of Schedule No 5 (No 5/3/108), in terms of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(w) Government Notice No 271, published in Government Gazette No 36337, dated 12 April
2013: Commencement date of Act and date with effect from which person may not perform
credit rating services or issue credit rating unless registered as credit rating agency, in terms
of the Credit Rating Services Act, 2012 (Act No 24 of 2012).
(x) Government Notice No R. 269, published in Government Gazette No 36338, dated 12 April
2013: Amendment of Schedule No 1 (No 1/1/1467), in terms of the Customs and Excise
Act, 1964 (Act No 91 of 1964).
7 MAY 2013
(y)
Page 220 of 329
Government Notice No R. 291, published in Government Gazette No 36372, dated 19 April
2013: Amendment of rules (DAR 1/8), in terms of the Customs and Excise Act, 1964 (Act
No 91 of 1964).
COMMITTEE REPORTS
National Assembly
1. Report of the Portfolio Committee on Energy on the Independent System and Market
Operator Bill [B9 – 2012] (National Assembly – Section 76(1)), dated 30 April 2013:
The Portfolio Committee on Energy, having considered the subject of the Independent System
and Market Operator Bill [B9 – 2012], initially classified by the Joint Tagging Mechanism as a
Section 75 Bill and subsequently re-classified as a Section 76(1) Bill, referred to it, reports the
Bill with amendments [B9A – 2012].
Recommendations
The Portfolio Committee on Energy recommends that the National Assembly requests the Minister of
Energy, acting in consultation with the Ministers for Public Enterprises, Finance and Cooperative
Governance and Traditional affairs, to:
a) Conduct a due diligence study in order to determine the feasibility and implications of the
transfer of transmission assets and to submit a final report to the National Assembly by 30
November 2013;
7 MAY 2013
Page 221 of 329
b) Conduct a cost benefit analysis of the possibility of incorporating the transmission assets into
the Independent System and Market Operator (ISMO)
c) Further conduct a cost benefit analysis of establishing a Transmission System Operator (TSO);
or any other arrangement suitable to the South African situation.
d) Ensure that the efforts on the restructuring of the entire electricity sector be addressed as matter
of urgency.
Report to be considered
2. REPORT OF THE PORTFOLIO COMMITTEE ON HOME AFFAIRS ON THE ANNUAL
PERFORMANCE PLAN AND BUDGET VOTE 4 OF THE DEPARTMENT OF HOME
AFFAIRS AND ITS ENTITIES, DATED 30 APRIL 2013
The Portfolio Committee on Home Affairs having met with the Department of Home Affairs (DHA),
Government Printing Works (GPW), Film and Publication Board (FPB) and the Electoral Commission
(EC) reports as follows:
1. Introduction
The Portfolio Committee on Home Affairs has a mandate to conduct oversight over the Department of
Home Affairs and its entities (GPW; FPB and EC). The Committee met with the Department of Home
Affairs on 19 March 2013, Government Printing Works and the Film and Publication Board on 26
March 2013 and the Electoral Commission on 16 April, 2013 to scrutinize their Strategic Plans,
7 MAY 2013
Page 222 of 329
Annual Performance Plans and budgets. This was in order to ensure that their budgets were aligned
with their respective Strategic Plans, Annual Performance Plans and priorities of Government.
2. Presentation by the Department of Home Affairs (DHA)
The mandate of DHA is derived from various acts of Parliament and policy documents. The DHA’s
services are categorised into two broad categories, namely; Civic Services and Immigration Services.
These two broad categories must ensure the efficient determination and safeguarding of the identity
and status of citizens and provide for the regulation of immigration to ensure security, promote
development and fulfil South Africa’s international obligations.
2.1. The DHA’s Strategic goals/ outcomes over the medium term were to:

Secure South African citizenship and identity through regulating and overseeing the provision of
enabling documents such as identity documents and passports and maintaining the National
Population Register (NPR).

Ensure effective and secure management of immigration to facilitate the movement of people
through ports of entry.

Provide services to the public that are efficient, accessible and corruption free.
The above are in line with the three Outcomes of Government that apply to the DHA; namely;
Outcome 3: All people in South Africa are and feel safe.
Outcome 5: A skilled and capable workforce to support an inclusive growth path.
Outcome 12: An efficient, effective and development oriented public service and an empowered, fair
7 MAY 2013
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and inclusive citizenship.
Under each outcome, the department set strategic objectives in order to achieve that particular
outcome.
Strategic objectives for Outcome 1: To Secure South African citizenship and identity:

To ensure that the registration at births is the only entry point for South Africans to the NPR. The
DHA planned to ensure that 642 000 births were registered within 30 days; 40 additional health
facilities were operational for online birth registration and eight additional stakeholder forums were
launched and functional during the financial year 2013/14. The Late Registration of Births (LRB)
was reported as a major problem and the DHA planned to ensure that a strategy was developed and
implemented in nine (9) provinces to reduce LRB.

To issue Identity Documents (IDs) to citizens turning 16 years of age and above. The DHA target
is to issue 100 000 ID Smart Cards in 2013/14 financial year. The DHA piloted with 100 ID Smart
Card in 2012. The initial target for piloting was 2000 ID Smart Card in 2012 and it was reduced to
100 ID Smart Card so that the DHA could manage the pilot efficiently. The ID Smart Cards will
replace the current green ID . It was reported that the rollout of the ID Smart Cards will be done in
2013. The Minister of Home Affairs will detail the rollout plan during the Budget Vote briefing
scheduled to take place on 9 May 2013. By 2015/16 the DHA will have issued 8 million ID Smart
Cards to citizens.

To ensure the registration and identification of all South African citizens and foreign nationals to
enhance the integrity and security of identity. In order to implement the ID Smart Card, offices of
7 MAY 2013
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the DHA will rollout Live Capture functionality for passports and IDs to 70 offices nationally.
Strategic Objectives for Outcome 2: Immigration managed effectively and securely in the
national interest including economic, social and cultural development:

To ensure a secure, responsive and flexible immigration regime in support of national security,
priorities and interests. The DHA planned to develop an immigration and refugee policy for
consultation. The policy will deal with management of asylum seekers and refugees and economic
migrants within Southern African Development Community (SADC) and attracting and retention
of migrants with critical skills.

To implement effective and efficient asylum seeker and refugee management strategies and
systems. The DHA will ensure that One Status Determination Committee (SDC) with a minimum
of two subcommittees is established and operational in three Refugee Reception Offices (RROs) in
the country.

To facilitate the efficient movement of bona fide traveller to support national interests, and to
prevent and prohibit the movement of undesirable persons in the interest of national security. The
Border Management Agency (BMA) will be established under the responsibility of the DHA and it
will ensure that an operating model was developed for approval by Cabinet. A Draft Bill for the
BMA will be submitted to Cabinet for approval.
The DHA will roll out an infrastructure development programme to 11 priority ports of entry to
improve residential and office accommodation. An additional 13 ports of entry will be equipped
with the Enhanced Movement Control System (EMCS) and biometric technology will be piloted at
7 MAY 2013
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the OR Tambo International Airport (ORTIA). The e-permitting system will be designed and
approved in 2013.

To contribute towards realising a positive skills migration trend of around 50 000 migrants
annually. The DHA will approve a strategy to facilitate the attraction and retention of foreign
migrants with critical skills and issue 20 000 permits as per approved skills list during 2013/14.
Strategic Objectives for Outcome 3: A service that is efficient, accessible and corruption free

To transform the culture of the organisation in support of securing identity, citizenship and
international migration. The DHA will enrol and train 600 newly appointed officials in the
National Certificate: Home Affairs Services. It will further train 100 managers at senior, middle
and junior management in leadership development programmes.

To ensure ethical conduct and a zero tolerance approach to corruption the DHA Investigations
Case Management System will be customised and tested and ready for implementation and
accessible to all Justice, Crime Prevention and Security (JCPS) stakeholders. The DHA will
conduct an anti-corruption awareness campaign. It is planned that 85% of the misconduct cases
will be finalised within 60 working days.

To obtain a clean audit report. The target was for the DHA to receive an unqualified audit report
for the 2013/14 financial year. A target of 100% of valid invoices is to be settled within 30 days of
being certified.

To ensure secure, effective, efficient and accessible service delivery to clients. The DHA planned
7 MAY 2013
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to ensure that 15 offices were refurbished and vacant funded posts were filled within six (6)
months. It was reported that 95% of first issue IDs and 95% of re-issued IDs will be issued within
54 and 47 working days respectively for all applications within South Africa.
The DHA will ensure that 95% of machine readable passports (manual process) and 97% of
machine readable passports (electronic process) will be issued within 24 and 13 working days
respectively for applications within South Africa.
Fifty Percent (50%) of permanent residence permits will be issued with within eight months for
applications collected in South Africa and 85% of temporary residence permits for critical skills
are to be issued within eight weeks for applications processed within South Africa and abroad.
2. 2 significant achievements during 2012/13 financial year

The DHA was on target to achieve the annual target of 594 000 births registered within 30 days
and the annual target of 80 additional health facilities connected for online registration of births
and deaths is likely to be achieved.

Between October and December 2012, the DHA finalised 27 750 Late Registration of Births
cases out of the 30 900 received.

The DHA issued 787 949 IDs to the 16 year olds and above by the end of the third quarter.
Progress was made in developing specifications and testing of the ID Smart Card.

The unabridged birth certificate was launched on 4 March 2013.

The DHA contributed to the successful hosting of the African Cup of Nations (AFCON) in
January 2013.

The DHA secured office accommodation at Cape Town Harbour that will house all departments
7 MAY 2013
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that function in the maritime environment.

The Home Affairs Learning Academy, working with providers delivered several certificate
courses of high quality to officials. This included a National Certificate: Home Affairs Services
which had been piloted with 272 officials.

The settlement of invoices within 30 days had increased from 54% to 86% following the
introduction of an invoice/payment tracking register.
2. 3 Key Strategic Priorities over the Next three Years were reported as follows:

New policy and legislation on immigration.

Asylum seeker management.

Establishing the Border Management Agency (BMA).

Permit Transformation.

Infrastructure at Ports of Entry.

Eradication of the Late Registration of Births and duplicates.

Ensure all citizens of 16 years and older apply and receive IDs.

The Department of Home Affairs and its officials take steps to protect the NPR.

Implement Live Capture, ID Smart Card, E-document management, a paperless environment and
the National Identification System.

Ensuring that all necessary controls, processes and systems are in place.

Establishing sound leadership, management and organisational discipline at all levels and build a
strong Monitoring and Evaluation function supported by reliable management information.
2.4 Budget of the Department of Home Affairs
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The DHA has three budget programmes, namely, Administration; Citizens Affairs and Immigration
Services.
2.4.1. Programme 1: Administration
The programme provides leadership, management and support services to the Department of Home
Affairs.
2.4.2. Programme 2: Citizens Affairs
The programme provides secure, efficient and accessible services and documents for citizens and
lawful residents. The programme provides the management of the branch for both the head office and
frontline offices and regulates all matters relating to the NPR. These include maintaining an accurate
register of all citizens and immigrants who had acquired the right to permanent residence; registering
births, deaths and marriages; providing travel and citizenship documents; providing financial
assistance to citizens abroad who wish to return to South Africa but have no means and determining
and granting citizenship. The DHA also develops, manages and coordinates the departmental footprint
in relation to opening new offices; deploying registration facilities at health facilities; and deploying
mobile offices in rural areas where Home Affairs does not have permanent offices.
The programme also provides for all civic, immigration and refugee affairs functions in all the
provinces. The transfers to Government Printing Works, Film and Publication Board and Electoral
Commission also fall within this programme.
2.4.3. Programme 3: Immigration Services
7 MAY 2013
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The programme facilitates and regulates the secure movement of people through ports of entry into
and out of South Africa; determines the status of asylum seekers; and regulates refugee affairs.
The programme facilitates the entry and departure of persons into South Africa in line with the
Immigration Act (2002). It records their movements on the Movement Control System (MCS) and
controls the processing of applications for permanent and temporary residence permits, including
work, study, business and other permits. Immigration Services also deals with the immigration matters
in foreign countries and detects and deports illegal immigrants in terms of the Immigration Act (2002).
In addition, this programme issues enabling documents to refugees. The Head Office is responsible for
providing strategic leadership for refugee reception office operations.
2.4.4. Budget Expenditure Trends
The DHA received a total allocation of R6.56 billion in 2013/14. This was a 22.7% increase in
nominal terms from its 2012/13 budget. When the nominal increase for 2013/14 was considered
against the 5.6% projected inflation for the year, the real increase to the budget of DHA was 16%
(R866 million). This increase was primarily due to the 72% growth in real allocation to the Electoral
Commission amounting to R624.2 million (R707 million in nominal terms). This increase was to allow
for the preparations for the 2014 Provincial and National elections. If the increase to the Electoral
Commission is omitted, the increase to the overall budget of the DHA is 5.4% in real terms. In
contrast, the overall government expenditure for 2013/14 was projected to grow by 8.9%.
Spending over the medium term will mainly focus on the following:

Implementing the modernisation programme of the DHA.
7 MAY 2013

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Developing and implementing a risk based approach to immigration and other policies in support
of national priorities.

Strengthening the effectiveness and efficiency of the refugee status determination and refugee
management processes.

Establishing the Border Management Agency (BMA), and

Establishing and maintaining secure identity systems and issuing of enabling documents.
By spending as indicated above, the department will contribute to the achievement of the three
departmental outcomes which in turn contribute to the three government outcomes that have
implications to the work of the department.
DHA Budget per Programme change (Rm)
Programme
Budget
Nominal Real
Nominal
Real %
increase
increase
%
change in
in
in
change
2013/14
2013/14
2013/14
in
2013/14
2012/13
Programme
2013/14
1: R1 572.5
R1 871.6
R299.1
R199.8
19.02%
12.71%
2: 3 203.3
4 048.7
845.4
630.7
26.39%
19.69%
3: 577.2
647.5
70.3
36
12.18%
6.23%
6 567.8
1 214.8
866.5
22.7%
16.19%
Administration
Programme
Citizens Affairs
Programme
Immigration Affairs
Total
5 353.0
7 MAY 2013
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P ro gr a m m e 1: A dm i ni s t r a t i on a c c ou nt e d fo r t h e 2 8 .5 % o f t h e D H A bu dg e t a n d i t r e c ei v ed 1 2. 7%
o r R 19 9. 8m i l l i on m o r e f o r 20 13 / 1 4. T hi s w as d ue t o t h e s i gn i f i c ant i n cr e a s e i n a l l o c a t i o n fo r
o f fi c e ac c om m od a t i o n (3 7 % ) a nd T r an s v e rs a l In f o rm at i on T e c hn ol o g y ( 2 2 % ).
P ro gr a m m e 2: C i t i z en A f f a i r s i s t h e b i gge s t p ro gr a m m e o f t h e DH A an d ac c ou nt ed fo r 6 1. 6 % of
t h e D H A bu d ge t . Th e p r o gr am m e al l o c at i on i nc r e as e s b y 2 6 % or R 8 4 5. 4m i l l i on i n n om i n a l
t e rm s . Th i s w as du e t o t h e s i gn i fi c ant i n c r e as e a l l o c at ed t o t h e EC . The b ud ge t al l o c at i on f o r t he
F P B sh ow e d a n i n c r e as e o f 1 2% (R 8. 5 m i l l i o n i n r e al t e rm s ) an d t h e b u d get al l o c at i on fo r t h e
G P W d e cl i ne d b y 6 % i n r e al t er m s .
W i t ho ut t he EC bu d get a l l o c at i on , t h e i n c r e as e t o C i t i z e n A ff a i r s w as on l y 0 . 3 % ab ov e
i n fl at i on i n 20 13 / 1 4. T h i s m us t b e c on s i d e r ed a ga i n s t t h e f a ct t h at C i t i z en A f fa i r s d e c l i n e d b y
1 4 % i n r e al t e rm s or R 3 0 6 .3 m i l l i o n f r om 20 11 / 1 2 t o 2 01 2/ 13 .
P r o g r a m m e 3 : Im m i g r a t i o n A f f a i r s a c c o u n t e d f o r 1 0 % o f t h e b u d g e t r e c e i v e d b y D H A . T h e
p r o gr am m e r e c e i v e d a 6 . 23 % i n c r e as e i n 20 13/ 1 4 c om p a re d t o a 4 .2 % d e c r e a s e f rom 2 01 1/ 12 t o
2 0 12/ 13 . T hi s eq u at ed t o a R 3 6 m i l l i o n r e al i n c r e as e s (R 70 m i l l i on i n n om i n al t er m s ). T h e
i n cr e a s e w a s m os t l y d u e t o t h e 22 % (R 43 .4 m i l l i o n) r e al i n c r e as e i n t h e al l o c at i on t o t h e
A d m i n i s t r a t i o n S e r v i c e s s u b - p r o g r a m m e . T h e l a r g e s t s u b - p r o g r a m m e ( Im m i g r a t i o n S e r v i c e s )
o n l y r e c e i v e d 0 . 4 % r e a l i n c r e a s e . T h e s m a l l e s t t w o s u b - p r o g r a m m e s : Im m i g r a t i o n M a n a g e m e n t
and As yl u m S eek ers b ot h recei ved a real p ercen t age cut o f, of aro und 1 0 %.
In t erms of eco no mi c cl assi fi cat io n, ‘C om p en sati on o f Em plo yees ’ acco unt ed for 41% o f DHA
s p e n d i n g . It r e c e i v e d a 6 . 2 % i n c r e a s e ( o n l y 0 . 8 % a b o v e i n f l a t i o n ) . D e s p i t e t h e e x p a n s i o n o f
offi ces and st aff s ho rt ages , t he p roj ect ed p erso n nel n umb ers fo r the t hree year m ed ium t erm ,
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s ho w n o gr o wth i n th e s t a f f c omp lim e nt o f 10 71 6 .
3. Entities of the Department Home Affairs
3.1. Government Printing Works (GPW)
The mandate of the GPW is to provide security printing to the South African government and it was
converted to a full government component in terms of the Public Service Act (1999) in 2009, enabling
it to start operating on sound business principles. The entity’s main strategic objective is to establish
itself as the printer of choice in the SADC region by assisting its customers to effectively combat the
complex problems of identity theft and document fraud.
It has three key strategic priorities that had been identified for the medium term:

Develop the printing works as government component organisation that performs flexibly and
within regulated parameters, as a sustainable ring fenced business entity.

Optimise processes and facilities to increase operational effectiveness and improve customer
service.

Develop an efficient, effective, well trained and appropriately remunerated workforce.
The GPW has four branches with 18 strategic objectives as follows:

Operations and Production.
-
Strategic Objective 1: Functional and secure production facilities. The current building is not
suitable for development of secure printing facility.
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-
Strategic Objective 2: Secure Production equipment.
-
Strategic Objective 3: Production of security printed materials.
-
Strategic Objective 4: Operational and control processes.

Strategic Management.
-
Strategic Objective 5: Coordination and distribution of government information. GPW also
distributes government gazettes through its website.
-
Strategic Objective 6: Availability of Information Computer Technology (ICT).
-
Strategic Objective 7: Secure ICT environment.
-
Strategic Objective 8: Continuous printing process improvement.
-
Strategic Objective 9: ICT support services.
-
Strategic Objective 10: Awareness of GPW. Although the Marketing branch had not been
established, GPW wants to raise awareness of its products and services.
-
Strategic Objective 11: Production diversification. To ensure the sustainability and growth of
business.
-
Strategic Objective 12: Develop and implement a marketing strategy. GPW wants to retain and
grow the market already developed
-
Strategic Objective 13: Security Risk Management system. GPW is in the process of developing a
secure risk management plan.
-
Strategic Objective 14: Provide independent and objective assurance and consulting services to
management.

Financial Services.
-
Strategic Objective 15: Financial and supply chain management. The GPW aims to achieve an
unqualified audit opinion.
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
Human Resources.
-
Strategic Objective 16: Ensure an adequate and trained workforce
-
Strategic Objective 17: Special remuneration dispensation. GPW was losing critical skills to the
private sector and it had requested a special dispensation from the Department of Public Service
and Administration
-
Strategic Objective 18: Develop and implement labour relations and employee wellness
management policies, processes and programmes.
The GPW generates revenue mainly from printing materials such as examination papers, identity
documents and passports as well as from non-security documents such as statistical reports, annual
reports, brochures and standard office stationery. The GPW will not require funding from government
from 2014/15 onwards. This is because the GPW will make sufficient profit to sustain itself.
The spending over the medium term will focus on the following:

The asset replacement programme

Developing the entity’s production facility. The facility will provide office accommodation.
The following were mentioned as key projects to be undertaken by the GPW:

Installation and commission of new security printing division.

The new ID Smart Card.

Implementation of the E-Gazette.

Create capacity to print passport visa pages in-house.

Implementation of new ERP system
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
Development of the new facility at Visagie Street.

Polycarbonate card manufacturing plans.
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3.2. Film and Publication Board (FPB)
The FPB derives its mandate from the Films and Publication Board Act (1996) with the Deputy
Minister of Home Affairs as its executive authority. The Chairperson of the FPB council is the
administrative head of the board. The board is mandated to regulate the creation, production,
possession and distribution of films, games and certain publications. Among other provisions, the act
prohibits the use of children in pornographic films or publications or on the internet. The board is also
responsible for monitoring age restricted business premises for compliance with their licence and
registration terms.
The FPB’s strategic goals over the medium term were to:

Provide consumer advice that will enable adults to make informed viewing, reading and gaming
choices for themselves and the children in their care.

Protect children from exposure to disturbing and harmful materials and from premature exposure
to adult experiences.

Make punishable the use of children in or their exposure to, pornography.
The FPB main source of revenue is a transfer from the DHA and other sources of revenue include fees
from classifying films and publications, registration fees for new distributors and annual renewals of
distribution licences.
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Over the medium term, spending will focus on expanding activities aimed at preventing child
pornography on the internet. This will mean working closing with international organisations;
researching human trafficking trends; classifying films and ensuring that internet users, especially
children were warned of sites containing pornographic material; and monitoring distributors and
traders for compliance.
3.3. Electoral Commission (EC)
The Electoral Commission is a Chapter 9 institution reporting to Parliament and it was established in
terms of the Electoral Commission Act (1996).In terms of section 190(1) of the Constitution, the
Electoral Commission manages the national, provincial, local elections. It ensures that the elections are
free and fair and declares the election.
The EC had identified five strategic goals:

Achieving the pre-eminence in the area of managing elections and referenda.

Strengthening electoral democracy.

Strengthening a cooperative relationship with political parties.

Strengthening institutional excellence and professionalism at all levels of the organisation.

Strengthening institutional governance.
Each strategic goal has a number of strategic objectives which are listed as follows as per:
Strategic Goal 1: Achieving the pre-eminence in the area of managing elections and referenda.
-
Strategic Objective 1.1: Ensure accessibility and sustainability of voting facilities and processes by
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establishing and applying infrastructure to meet operational demands for each electoral event.
-
Strategic Objective 1.2: Ensure efficient electoral processes by defining, specifying and procuring
election materials and equipment for all electoral events.
-
Strategic Objective 1.3: Increase voter participation in elections.
-
Strategic Objective 1.4: Maximise electoral justice for all stakeholders in the electoral processes.
-
Strategic Objective 1.5: Enhance the credibility of the voters’ roll.
-
Strategic Objective 1.6: Improve compliance with legal prescripts.
-
Strategic Objective 1.7: Continuously improve the legislative framework.
Strategic Goal 2: Strengthening electoral democracy.
-
Strategic Objective 2.1: Encouraging citizen participation by providing continuous education.
-
Strategic Objective 2.2: Providing strategic and thought leadership.
-
Strategic Objective 2.3: Broadening research agenda and issuing publications.
-
Strategic Objective 2.4: Increasing visibility through proactive consultation, effective
communication and presence.
-
Strategic Objective 2.5: Facilitating platforms for political dialogue.
-
Strategic Objective 2.6: Cultivating an environment for free and fair elections.
-
Strategic Objective 2.7: Constantly engaging the media
Strategic Goal 3: Strengthening a cooperative relationship with political parties.
-
Strategic Objective 3.1: Conducting a predetermined number of liaison sessions, commensurate
with the prevailing electoral phases, with political parties on national level, on provincial level and
municipal level.
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Strategic Objective 3.2: Annually ensuring that the funding in respect of political parties from
Parliament is distributed as defined in the relevant legislation.
Strategic Goal 4: Strengthening institutional excellence and professionalism at all levels of the
organisation.
-
Strategic Objective 4.1: Strengthening risk management.
-
Strategic Objective 4.2: Maintaining sound industrial relations.
-
Strategic Objective 4.3: Striving to comply with national climate change policies.
-
Strategic Objective 4.4: Building institutional memory.
Strategic Goal 5: Strengthening institutional governance.
-
Strategic Objective 5.1: Refining institutional governance arrangements (including the
Commission’s structures and committees.
-
Strategic Objective 5.2: Exercising oversight: monitoring, evaluation and support.
Spending focus for the EC over the medium term will be on the 2014 national and provincial elections
and registration drives that will be conducted during the elections. The expenditure by the EC
increased from R806 million in the 2012/13 financial year to R1.49 billion in 2013/14 and over the
medium term. The expenditure is expected to increase to R1.6 billion by 2015/16 due to preparations
for the 2014 national and provincial elections and 2015 local elections. The largest programme with
the budget allocation of 60% of the EC budget is the Corporate Services which included human
resources, staff development, Information Technology, financial and facilities management. The
budget allocation for this programme increased by R336 million or 55% after inflation from 2012/13
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to 2013/14 financial year. The second largest programme is the Electoral Operations, which comprised
20% of the total budget of the EC, increased from R149 million in 2012/13 financial year and the
largest growth was in the Outreach programme which received an additional R164 million.
4. Recommendations
Based on the engagement between the Portfolio Committee on Affairs and Department of Home
Affairs (DHA) as well its entities, the Committee recommend the following to the Minister of Home
Affairs:
4.1.
Consider ways of preventing the increase of spending on the deportation of illegal foreigners.
4.2.
Ensure that the outstanding issues on the Foreign Affairs Trading Account are finalised.
4.3.
Ensure that vacant funded posts in the Department of Home Affairs (DHA) are filled within
four months as directed by the President during the State of the Nation Address (SONA).
4.4.
Ensure that the DHA expedite the employment of persons with disability in order to work
towards achieving the benchmark of 2% set by government.
4.5.
Ensure that the Department’s Annual Performance Plan is better aligned with the National
Development Plan (NDP).
4.6.
Ensure that mobile offices are functional in order to assist in eradicating late registration of
birth, especially in the rural areas.
4.7.
Ensure that there is a better working relationship between the DHA and the Department of
Health on online registration of births in health facilities.
4.8.
Ensure that the DHA works with other government departments in the Justice, Crime
Prevention and Security (JCPS) cluster in order to protect the coastline. The DHA should have
more accurate numbers of undocumented migrants.
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4.9.
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There should be considerable planning in the establishment of Border Management Agency
(BMA) by the DHA as it has significant responsibilities.
4.10. Ensure that the DHA reduces the amount of time taken for processing Permanent and
Temporary Residence Permits. The DHA should brief the Portfolio Committee on Home
Affairs on any plans to privatise Visa/Permit applications.
4.11. The IT systems of the DHA were still not sufficiently integrated. The Information Technology
(IT) Modernisation Project of the DHA should be prioritised.
4.12. Ensure that the DHA addresses the audit findings raised by the Auditor-General (AG) in the
Annual Report for 2011/12.
4.13. Ensure that the DHA in future submits the Draft APP/Strategic Plan to the Portfolio Committee
before it is tabled to Parliament.
4.14. Ensure that measures are taken to address court rulings on the closure of Refugee Reception
Offices.
4.15. The Government Printing Works (GPW) should market itself better.
4.16. The GPW’s Annual Performance Plan needs to have outcomes based strategies and to consider
the National Development Plan.
4.17. The respective roles of the Film and Publication Board (FPB) and other stakeholders involved
in the fight against child pornography need to be formalised.
4.18. The Electoral Commission (EC) should consider having plans with regard to political
intimidation when training staff during elections.
4.19. The EC should work towards strengthening the Political Liaison Committees (PLCs).
4.20. The EC should be innovative in attracting voters to come to voting stations during elections.
4.21. Voter education of the EC should be simpler and focus on what voters need to know.
4.22. The EC should address the audit findings raised by the Auditor-General during 2011/12.
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5. Conclusion
The Portfolio Committee on Home Affairs would like to thank the Minister of Home Affairs, Deputy
Minister of Home Affairs, and the Chief Executive of the Government Printing Works, the Council of
the Film and Publication Board and the Commissioners of the Electoral Commission for showing good
leadership over their respective areas of work.
The Committee accepts the Annual Performance Plan of the Department and its entities.
Report to be considered.
(The following report replaces the Report of the Portfolio Committee on Social Development which
was published in the Announcements, Tablings and Committee Reports of 02 May 2013, on page
1069).
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MONDAY, 6 MAY 2013
ANNOUNCEMENTS
National Assembly
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The Speaker
1.
Correspondence from Chairperson of Human Rights Commission
(1)
A letter, dated 4 February 2013, has been received from the Chairperson of the Human
Rights Commission, informing the Assembly of severe challenges being experienced by the
Commission in regard to its 2013-14 budget allocation, despite the recommendations by the
Portfolio Committee on Justice and Constitutional Development in its Budgetary Review
and Recommendation Report dated 30 October 2012, and requesting assistance to enable
the Commission to fulfill its constitutional mandate.
Referred to the Portfolio Committee on Justice and Constitutional Development.
2.
Correspondence from Chairperson of Commission for Promotion and Protection of Rights
of Cultural, Religious and Linguistic Communities
(1)
A letter, dated 8 April 2013, has been received from the Chairperson of the Commission for
the Promotion and Protection of the Rights of Cultural, Religious and Linguistic
Communities, informing the Assembly of an investigation by the Public Protector and
another by a private investigator into alleged breaches of the Commission’s recruitment and
selection policy and other staff grievances, and undertaking to inform the Assembly of the
outcome of the investigations as soon as they have been concluded.
Referred to the Portfolio Committee on Cooperative Governance and Traditional
Affairs.
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TABLINGS
National Assembly and National Council of Provinces
1.
The Speaker and the Chairperson
(a)
Report of the Parliamentary Oversight Authority on its activities during 2012.
The Parliamentary Oversight Authority wishes to report on its activities during 2012 in line with the
mandate and functions assigned to it in the Governance Model.
The Parliamentary Oversight
Authority reports as follows:
1.
Background
Parliament’s Governance Model was adopted by the National Assembly and National Council of
Provinces on 29 March 2007.
The Governance Model provides for a Parliamentary Oversight
Authority (POA) which accounts to Parliament and is broadly responsible for formulating policy
directives for the various services and facilities of Parliament; and ensuring policy implementation by
giving a broad indication of the levels and extent of the required services and facilities for Parliament,
while monitoring their implementation.
The mandate of the POA is therefore to ensure that an appropriate system of governance, by which
Parliament is managed and controlled in support of its strategies and policies, is in place.
2.
Meetings of the POA
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The POA met on seven occasions during 2012. Meetings were held on 29 February 2012, 30 May
2012, 29 August 2012, 23 October 2012 and 14 November 2012.
Two special meetings were convened on 23 May 2012 and 6 September 2012 to brief members on the
disciplinary proceedings in respect of the Secretary to Parliament, Mr Z A Dingani.
3.
Matters considered by the POA
The POA deliberated on the following substantive matters during the year under review:
3.1
Secretary to Parliament
On 23 May 2012 the POA was briefed on a report from the Auditor-General on the advance paid to the
Secretary to Parliament, Mr Z A Dingani, for the construction of a perimeter wall around his residence.
The Auditor-General investigated the matter on request of the Executive Authority of Parliament who
requested the investigation in terms of section 67(2) of the Financial Management of Parliament Act
(Act No 10 of 2009).
The POA considered and accepted the report and the recommendation of the Auditor-General that
disciplinary action be instituted.
On 6 September 2012 the POA was briefed on the recommendations of the disciplinary committee
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On 11 September 2012, the National Assembly and the NCOP, meeting in separate sittings, resolved to
accept the findings of the disciplinary committee and the recommendation that Mr Dingani be
dismissed with immediate effect.
3.2
Report of the Auditor-General on Vote 2, Parliament of South Africa 2011/12 and Annual
Report of Parliament 2011/12
On 29 August 2012, the POA was briefed on the Report of the Auditor-General on Vote 2, Parliament
of South Africa (2011/12 Audit Report) and the Annual Report of Parliament 2011/12.
In terms of the Annual Report of Parliament it was noted that during the year under review work had
commenced to ensure that the Constitutional and Legal Services Office, the Legislation and Oversight
Division and the International Relations and Protocol Division were strengthened. Work on the
establishment of the Budget Office, as required by the Money Bills Amendment Procedure and
Related Matters Acts, had also received attention.
Furthermore, a number of priority projects had been identified to give effect to the implementation of
Parliament’s strategic plan for the 4th Parliament.
These projects included those to further the
development of the public participation model and strategy, the enhancement of library services and
the development of a coordinated oversight approach.
Irregular expenditure amounting to R12 026 659 had been condoned in terms of the Financial
Management of Parliament Act and the authority given to the Accounting Officer. This was done after
it had been established that, in all instances, Parliament had benefitted from the goods or services
procured, but that proper process as prescribed by the policies and procedures of the institution had not
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been followed. The procurement in this regard related mostly to instances where goods or services had
been procured after the enabling contract with the service provider had expired. Parliament migrated
from a procurement system to a supply chain management system to ensure that these instances did not
reoccur.
The Report of the Auditor-General issued Parliament with an unqualified opinion. There was one
matter of emphasis as an error had occurred in 2011 as a result of a restatement of the value of post
retirement medical aid benefits.
Two areas where Parliament had not complied with laws and regulations in terms of the Financial
Management of Parliament Act related to the payment of invoices within 30 days of receipt thereof
and the non-charging of interest on overdue debt. A project had been put in place to address these
matters.
3.3
Budget proposal 2013/14
The POA considered Parliament’s proposed budget for 2013/14 on 23 October 2012 and also on 14
November 2012.
In making the recommendation on the budget allocations for 2013/14 the following factors were taken
into consideration:
i)
Alignment of the budget allocations with Parliament’s strategic policy imperatives and
priorities by taking into account the annual performance plan with key performance indicators.
ii) Parliament’s Policy Imperatives.
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iii) Parliament’s allocation from National Treasury indicating a 5% increase over the budget of the
2012/13 financial year.
iv) The spending trends for the past three years of the various divisions and sections on activities
to achieve the objectives of the institution.
v) Savings to allow for reprioritization.
The recommended budget request exceeded the Medium Term Expenditure Framework (MTEF)
indicative figure by R64.8 million. This was made up as follows:
The recommended allocation exceeded the indicative for Programme 1: Administration by R15.4
million. This amount was being requested for, amongst others, legal drafting capacity, the increased
insurance premium on personal accident insurance covering Members and staff, Supply Chain
Management Office capacity, capcitation of the Office of the Spokesperson and building capacity in
the Office for Institutions Supporting Democracy.
The recommended allocation exceeded the indicative for Programme 2: Legislation and Oversight by
R33.4 million. This amount was being requested for, amongst others, a second instance of Taking
Parliament to the People, the appointment of content advisors, travel by committees per the agreement
to increase the allocation by R5 million per year and subscriptions for the library and online books.
The recommended allocation exceeded the indicative for Programme 3: Public and International
Participation by R16 million. This amount was being requested for the radio broadcasting contract
with the SABC.
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The funds required for the operations of the Parliamentary Budget Office were not included in the
request. The initial funding for the establishment of the office was provided for by Parliament through
its retained funds in the 2012/13 financial year.
Retained funds amounting to R141 million were approved for funding of priority projects. (Appendix
A contains a list of prioritized projects).
In terms of programmes 4, 5 and 6, the percentage of the total budget in respect of programme 4,
Members Facilities was 10.76%. The percentage of the total budget for programme 5, Associated
services (political party allowances) amounted to 16.75% of the total budget and for programme 6
(Members’ remuneration) amounted to 23.15% of the total budget.
It was noted that proposed projects emanating from Parliament’s Policy Imperatives in regard to
nation-building, social cohesion and cooperative governance should be considered for prioritization
and a comprehensive scoping and costing exercise undertaken. Consideration could be given to the
utilisation of retained funds for implementation of these projects. All proposed projects were listed in
the strategic plan per strategic objective and emanated from Parliament’s Policy Imperatives. These
projects would all require representation of Members and the establishment of governance structures to
oversee their implementation.
The proposed projects were the following:
i) Project to establish a Parliamentary Knowledge institute (under the strategic objective to
strengthen the oversight function and establish a strong culture of overseeing executive action).
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ii) Project to Improve effectiveness of the Constituency mechanism and Constituency Offices (under
the strategic objective to increase public involvement and participation and build a responsive
people’s Parliament)
iii) Project to deepen and entrench democracy (under the strategic objective to strengthen co-operative
government and foster improved co-operation and relations).
iv) Project to develop a mechanism to improve nation building (under the strategic objective to
strengthen co-operative government and foster improved co-operation and relations)
The POA confirmed the recommendation by the Parliamentary Budget Forum that the budget proposal
for 2013/14, as presented to it on 23 October, be accepted as a basis for discussions between the
Executive Authority and the Minister of Finance as required by section 17 of the Financial
Management of Parliament Act.
3.4
Secretary’s Quarterly Reports
The Secretary presented Quarterly Reports to the Parliamentary Oversight Authority for the specific
quarter under review.
The reports reflected on the achievement of the strategic objectives of
Parliament as provided in the Strategic Plan and the programmes reflected in the Estimates of National
Expenditure, Vote 2, for the 2012/13 financial year.
The reporting format was dictated by the Financial Management of Parliament Act (section 52) which
required the Accounting Officer to report on the implementation of the Annual Performance Plan.
A process of integrated strategic planning, budgeting and reporting for divisions was put into place to
address the concerns raised by members of the Parliamentary Oversight Authority around the nature of
information contained in the Secretary’s Quarterly Reports.
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The initiative aimed at achieving improved reporting and accountability by increasing the relevance,
appropriateness, accuracy and presentation of information. In the past Quarterly Reports had focused
solely on activities and operational issues, however, the initiative aimed to assist the Parliamentary
Oversight Authority to focus on the outcomes and impact of Parliament.
Therefore, by using existing information on quarterly activities and outputs, strategic implementation
of medium term outcomes would be monitored through the translation of outputs into expected
outcomes.
3.5
Joint Whips’ Forum
The Governance Model of Parliament provides for a Joint Whips’ Forum.
According to the
Governance Model this forum is mandated to facilitate consensus on matters of mutual interest
referred to it by the Presiding Officers and to channel members’ perspectives to the Parliamentary
Oversight Authority. The Joint Whips’ Forum is to be co-chaired by the Chief Whip of the Majority
Party in the National Assembly and the Chief Whip of the National Council of Provinces.
The Presiding Officers wrote to the co-Chairpersons of the Joint Whips’ Forum in July 2012 to request
that they proceed with convening a meeting of the Joint Whips’ Forum. Secretariat support for the
Forum would be provided by the Office of the Secretary to Parliament.
At a meeting of the POA on 29 August 2012 it was noted that the composition of the Joint Whips
Forum, as proposed in the Governance Model, was too large and could prove unworkable. The
Executive Committee had therefore agreed that, as an interim measure, the composition of the Joint
Whips Forum should be as follows:
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i)
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the Chief Whip of the Majority Party in the National Assembly
ii) the Chief Whip of the NCOP
iii) the Chief Whip of the largest Opposition Party; and
iv) a designated senior whip of each political party or group of smaller parties represented in
Parliament, irrespective of which House this representative came from.
During the course of 2012 the Parliamentary Oversight Authority referred the following matters to the
Joint Whips’ Forum for consideration and report:
i)
the Constitution of the Sports Council
ii) the Nation building and heritage committee
iii) the Inter-faith Council
iv) Parliamentary Democracy Offices
v) The language of bills
In addition to these matters the Joint Rules Committee also referred the Attendance Policy for
Members to the Joint Whips’ Forum.
3.6
Parliamentary Oversight Authority study visit to the European Parliament
The Parliamentary Oversight Authority undertook a study visit to the European Parliament in Brussels,
Belgium, from 24 – 26 April 2012.
On 9 September 2011, Speaker M V Sisulu held a meeting with the President of the European
Parliament, Mr J Buzek, during the G20 Speakers meeting in Paris, France. President Buzek then
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extended a formal invitation to the South African Parliament to undertake an official visit to the
European Parliament.
The invitation was discussed by the Parliamentary Oversight Authority on 2 November 2011 and it
was agreed that a concept document for the study visit would be developed. The concept document
for the study visit was agreed by the Parliamentary Oversight Authority on 29 February 2012.
The Parliamentary Oversight Authority, in terms of the Governance Model of Parliament, is mandated
to put in place the appropriate systems of governance by which Parliament is managed and controlled
to ensure an effective and efficient Parliament.
Parliament has also made significant strides in strengthening its internal governance systems through
the implementation of the Financial Management of Parliament Act.
The Parliamentary Oversight Authority sought to engage with the European Parliament around the
systems and procedures which enabled it to operate effectively.
Information sharing on areas of participation and oversight of the budget of the European Parliament,
internal governance structures and the formulation of policy directives for the services and facilities
that support the European Parliament were key focus areas for the study visit.
In light of the importance of continued cooperation between the South African Parliament and the
European Parliament within the overall implementation of the SA-EU Strategic Partnership the study
tour also sought to enhance current and future working relations between core leadership figures in
both institutions against the backdrop of continued cooperation between our Parliament and the
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European Parliament in the implementation of the SA-EU Strategic Partnership and also the
implementation of the South African Legislative Sector Support Programme which is funded by the
European Union.
The full report of the POA on this study visit was published in the Announcements Tablings and
Committee Reports document on 24 October 2012.
4.
Outstanding Matters
The following matters remain before the POA for consideration:
i.
The matters, detailed above, referred to the Joint Whips’ Forum will be considered by the POA
once reports are received thereon.
ii.
The Review of Members Travel Facilities Policy arose as a result of policy gaps which had
been identified, as well as internal requests for information related to the usage of facilities by
Members. The review covered matters related to air journeys, travel by dependents, journeys
by motor vehicle and the definition of a Member’s dependent. On 16 November 2010 the POA
referred the matter for further discussion and report to the Quarterly Consultative Forum. The
Quarterly Consultative Forum together with the Chief Whips’ Forum established a Task Team
to deal with the matter. A report on the outcomes of the deliberations of this Task Team has
been completed and will be dealt with by the Parliamentary Oversight Authority early in 2013.
iii.
The proposed Integrated Sustainability Strategy for Parliament was considered by the POA on
30 May 2012.
At this meeting it was agreed that political parties would be given an
opportunity to engage with the documents before they were again discussed by the
Parliamentary Oversight Authority. The Office of the Secretary would, on request of political
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parties, make available the necessary staff to facilitate presentations to caucuses of political
parties on this matter.
iv.
The Task Team on Travel Facilities, initially established to look at the Members’ Travel
Facilities Handbook, was requested at the POA meeting of 23 October 2012 to also compile a
report on post retirement travel benefits for Members and to formally submit their proposals to
the Presiding Officers. The Task Team has completed its report and submitted it to the
Presiding Officers. As agreed at the meeting of the POA on 14 November 2012 this would be
a matter to be discussed by the Executive Authority and the Minister of Finance.
v.
At the beginning of the 4th Parliament the Parliamentary Oversight Authority reported on
Proposed Policies on Parliament’s Budget and Travel (Announcements, Tablings and
Committee Reports, 17 September 2009 and Announcements, Tablings and Committee Reports,
13 October 2009). The later tabling replaced Appendix A of the initial report which related
specifically to the guidelines for Parliamentary Travel Policy. The report, including Appendix
A, was adopted on 20 October 2009 with the proviso that the Parliamentary Oversight
Authority would give further consideration to the composition of delegations. The matter was
considered by the Parliamentary Oversight Authority on 26 May 2010 and again discussed on 8
September 2010 where it was agreed that the composition of international delegations would be
referred to the Chief Whips Forum of the National Assembly for consideration. In its Annual
Report of 2011 (Announcements, Tablings and Committee Reports, 22 March 2012) the
Parliamentary Oversight Authority noted that the report from the Chief Whips Forum on
international delegations was still outstanding.
vi.
On 26 July 2012 the Presiding Officers wrote to the Auditor-General to indicate that the
Financial Management of Parliament Act (Act 10 of 2009) would be referred to the Standing
Committee on Finance. The Act had originated in Parliament and it would therefore be for
Parliament to initiate the process of its amendment. This process would include, amongst other
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matters, consideration of amendments to the section of the Act that related to the oversight
mechanism. This matter is currently before Parliament
MV Sisulu, MP
M J Mahlangu, MP
Speaker: NA
Chairperson: NCOP
Date: ___________
Date: __________
ANNEXURE A – PRIORITISED PROJECTS
(a) Report of the Parliamentary Oversight Authority on “Facilities for Members of the National
Assembly and Permanent Delegates of the National Council of Provinces”.
Approved prioritised projects
1. Development of the Public Participation Model
2. NA Chamber Upgrade (systems and technology)
3. Institutional Restructuring
4. Video broadcast infrastructure upgrade
5. Enhanced Library Project
6. ICT infrastructure upgrades
7. Monitoring and tracking system (Oversight related)
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8. Development of My Parliament application (5th Parliament related)
9. Digital recording and transcription system
10. Organisational change and culture project
11. Members’ attendance system
12. Strategic Management process, system and capacity
13. 59th Commonwealth Parliamentary Conference
Second priority projects (to be approved)
1. Develop parliamentary constituency mechanism and improving the effectiveness of
constituency work
2. Establish Parliamentary knowledge institute (develop and implement knowledge management
strategy)
3. Develop programme to deepen and entrench democracy
4. Develop mechanism to improve nation building
(a) Report of the Parliamentary Oversight Authority on “Facilities for Members of the
National Assembly and Permanent Delegates of the National Council of Provinces”.
The Parliamentary Oversight Authority having considered proposed amendments to the handbook on
“Facilities for Members of the National Assembly and Permanent Delegates to the National Council of
Provinces” on 8 March 2013, reports as follows:
1. AIR JOURNEYS
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1. Wording amended to reflect the number of journeys per dependant category and not expressed as a
fraction of a journey.
Current wording:
“a dependant under the age of 2 years will be counted as one fifth of an air journey; and
a dependant over the age of 2 years, but under the age of 12 years will be counted as half an air
journey.”
Revised wording:
“a dependant under the age of 2 years 60 single journeys; and
a dependant over the age of 2 years, but under the age of 12 years 18 single journeys.”
2. Wording amendment to reflect current administrative process
Current wording:
Air journeys will only be reinstated for unused or lost air tickets when the Finance Section
receives the refund from the travel bureau or airline concerned.
Revised wording:
Travel entitlements for unused tickets will only be reimbursed when the ticket has been
submitted successfully for refund.
SECTION 4 JOURNEYS BY MOTOR VEHICLE
3.
Amendment to limit motor journeys against the journeys allocated to the Member only.
Current wording:
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If a member or her/his spouse or companion, dependant, parent or parent-in-law travels by
motor vehicle, the member is reimbursed for the full cost of the journey via the shortest route,
at the higher of the AA rate or the government rate per km, provided it works out cheaper or
the same as a journey between Cape Town and the member’s registered home/constituency
base. Each such journey is offset against the quota per financial year of air journeys.
Revised wording:
If a member or his her spouse or companion travels by motor vehicle, the member is
reimbursed for the full cost of the journey via the shortest route, at the higher of the AA rate or
the government rate per km, provided it works out cheaper or the same as a between Cape
Town and the member’s registered home/constituency base. Each such journey is offset
against the quota per financial year of air journeys.
4. Amendment to limit the maximum number of motor vehicle journeys permitted.
Current wording:
No current provision.
Revised wording:
A member may undertake a maximum of 10 motor vehicle journeys per financial year, unless
the member applies with motivation to be registered for additional journeys.
5. Amendment to clarify the criteria for claiming accommodation on route.
Current wording:
A member who travels a distance of more than 800km between Cape Town and his/her
registered home/constituency base is entitled to overnight accommodation on route to a
maximum of R1 150 per night dinner bed and breakfast
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Revised wording:
A member who travels a distance of more than 800km between Cape Town and his/her
registered home/constituency base is entitled to overnight accommodation on route to a
maximum of R1 850 per night dinner, bed and breakfast. The total duration of the journey may
not exceed 2 consecutive days.
SECTION 9 RELOCATION COSTS
6. Amendment to extend the eligibility for relocation cost to Members who resign or are redeployed
Current wording:
A person who has to relocate to the Cape Town area when elected or appointed to Parliament,
and a person who is not re-elected or re-appointed after an election and has to relocate to
her/his home base, may transport her/his belongings to Cape Town or to her/his home base,
whichever is applicable, by─
(a) using a Spoornet mini-container at the Secretary’s cost; or
(b) making use of a removal company at the Secretary’s cost to a maximum of R18 750
Revised wording:
A person who has to relocate to the Cape Town area when elected or appointed to Parliament,
and a person who is not re-elected or re-appointed after an election, resigns or is redeployed
and has to relocate to her/his home base, may transport her/his belongings to Cape Town or to
her/his home base, whichever is applicable, by─
1. using a Spoornet mini-container at the Secretary’s cost; or
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2. making use of a removal company at the Secretary’s cost to a maximum of R18 750
7. Amendment to select service providers for removal of household goods according to supply chain
processes
Current wording:
If a removal company is to be used, three quotations must be submitted. Payment is made
directly to the service provider. No money will be paid to a member.
Revised wording:
If a removal company is to be used, three quotations must be obtained. Parliament will
approve the vendor and make payment directly to the vendor. No money will be paid to a
member.
8. Amendment to extend the eligibility flights when relocating to Members who resign or are
redeployed.
Current wording:
A person who is not re-elected or re-appointed after an election, is entitled to two return flights
between her/his home base and Cape Town to enable her/him to pack and make arrangements
for the removal of her/his belongings to her/his home base. In addition, a member whose
dependants have to return to home base are entitled to one single journey from Cape Town to
home base.
Revised wording:
A person who is not re-elected or re-appointed after an election, resigns or is redeployed, is
entitled to two return flights between her/his home base and Cape Town to enable her/him to
pack and make arrangements for the removal of her/his belongings to her/his home base. In
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addition, a member whose dependants have to return to home base are entitled to one single
journey from Cape Town to home base.
SECTION 12 GENERAL CONDITIONS RELATING TO UTILISATION OF TRAVEL
FACILITIES
9. Amendment to enforce the registration of a home base and place of residence for dependants over
18 and under 27.
Current wording:
No current provision
Revised wording:
A dependant over the age of 18 and under the age of 27 applying for travel facilities is required
to register a home base and or a place of residence.
SECTION 14 ATTENDANCE AT APPROVED COMMITTEE MEETINGS WHILE
PARLIAMENT IS NOT SITTING OR AT VENUES OTHER THAN IN CAPE TOWN
DURING SITTINGS
10. Amendment to remove provision for daily allowance, no longer applicable
Current wording:
A member is paid a daily allowance, as determined from time to time by the Speaker: NA and
the Chairperson: NCOP, for attendance at approved committee meetings while Parliament is
not sitting, including a constituency period, or during sittings, at venues other than Cape Town.
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The member must complete a committee claim form.
Revised wording:
Provision removed
11. Amendment to clarify class of travel distinguishing between domestic and international.
Current wording:
Air Journeys
The class of air travel will be in accordance with 1. AIR JOURNEYS section 1(b)
Revised wording:
Air Journeys Domestic
The class of air travel will be in accordance with 1. AIR JOURNEYS section 1(b)
Air Journeys International
All journeys undertaken by Members on official business beyond the borders of South Africa
will be in business class
12. Amendment to increase hotel limit to market related pricing, and details the criteria for the
payment of S&T
Current wording:
Hotel or Similar Accommodation
A member is reimbursed as follows:
Dinner Bed and Breakfast: Actual expenses to a maximum of R 1 150 per day.
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S&T of R200 per day to cover lunch and other incidentals
Revised wording:
Hotel or Similar Accommodation
Hotel accommodation will be provided as follows:
Dinner Bed and Breakfast to a maximum of R 1 850 per day.
S&T of R293 per day to cover lunch and other incidentals
R200 per day to cover lunch
R93 per day to cover incidentals
If lunch is provided, the allowance will be limited to R93 to cover incidentals.
If a member departs before 12pm the allowances are payable for the day of departure.
If a member returns after 12pm the allowances are payable for the day of return
13. Amendment to detail the applicable specification for car hire and remove the reference to class
which is no longer a consistent industry measure.
Current wording:
Class of vehicle
A member is reimbursed for the actual cost for a Class B motor vehicle provided that it is
authorised by the Chairperson of a Committee when the Member is executing Parliamentary
activities.
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Revised wording:
A Member or Chairperson may be provided with a hired car when he/she is executing
Parliamentary duties, provided the trip is authorised by the Chairperson of a committee or the
House Chairperson.
Class of vehicle
Vehicles with an engine capacity of 1800 cubic centimetres or equivalent with radio, air
conditioning, power steering, central locking and airbag protection.
In all instances the number of vehicles authorised for hire must take into account the principle
of cost effectiveness and functional requirements.
SECTION 22 DECEASED MEMBER, SPOUSE/COMPANION, DEPENDANTS AND
PARENTS / PARENTS IN LAW
14. Amendment to make provision for family to attend a memorial or special sitting
Current wording:
No provision
Revised wording:
Pay for a maximum of 4 family members to attend a Memorial Service or sitting of the House
arranged by Parliament
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_____________________
______________________
MV Sisulu, MP
M J Mahlangu, MP
Speaker: NA
Chairperson: NCOP
Date: ___________
2.
Date: __________
The Minister of Trade and Industry
(a)
Bilateral Agreement between the Government of the Republic of South Africa and the
Government of the Republic of Iraq on Economic and Technical Cooperation, in terms of
section 231(3) of the Constitution, 1996.
(b)
Explanatory Memorandum to the Bilateral Agreement between the Government of the
Republic of South Africa and the Government of the Republic of Iraq on Economic and
Technical Cooperation.
(c)
General Notice No 238, published in Government Gazette No 36285, dated 22 March
2013: Categories of goods that are required to have a trade description applied to them, in
terms of the Consumer Protection Act, 2008 (Act No 68 of 2008).
(d)
General Notice No 380, published in Government Gazette No 36364, dated 12 April 2013:
Labelling of goods originating from East Jerusalem, Gaza or West Bank wrongly labeled
as originating from Israel, in terms of the Consumer Protection Act, 2008 (Act No 68 of
2008).
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COMMITTEE REPORTS
National Assembly
1. Report of the Portfolio Committee on Economic Development on Budget Vote 28 and the
Annual Performance Plan of the Economic Development Department for the 2013/2014 financial
year, dated 30 April 2013
The Portfolio Committee on Economic Development having considered Budget Vote 28 and the Annual
Performance Plan of the Economic Development Department for the 2013/2014 financial year reports as
follows:
1.
Introduction
The Department of Economic Development (the EDD) was established in July 2009. Its vision is to
create decent work through meaningful economic transformation and inclusive growth. The EDD’s
mission includes the following:

Coordinating the contributions of Government Departments, State Owned Entities and Civil
Society on Economic Development;

Contributing to efforts that ensure alignment between the economic policies and plans of the State
and its Agencies and Government’s political and economic objectives and mandate; and

Promoting Government’s goals of advancing economic development with decent work
opportunities.
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The EDD has tabled an Annual Performance Plan (APP) for the 2013/2014 financial year which is
based on the Strategic Plan tabled in March 2012 and which has the following strategic outcomeoriented goal and goal statement:

Promote decent work through meaningful economic transformation and inclusive growth; and

Provide participatory, coherent and coordinated economic policy, planning and dialogue for the
benefit for all South Africans.
The Policy Mandate of EDD is integration, coordination and implementation of economic
development initiatives and interventions in order to ensure economic growth on a new growth path
that creates jobs and reduces inequality.
The EDD Policy Framework that has emerged over the nearly four (4) years of its life is based on a
hierarchy of policy documents which are the following:

State of Nation of Address (SONA) annually;

National Development Plan November 2012 (policy);

New Growth Path October 2010 (strategy);

National Infrastructure Plan February 2012 (jobs driver);

Industrial Policy Action Plan 2 April 2013 (jobs driver);

Outcome 4, 5, 6, 7 delivery agreements;

Outcome 4: Decent employment through inclusive economic growth;

Outcome 5: Skilled and capable workforce to support inclusive growth;

Outcome 6: Efficient, competitive and responsive infrastructure;

Outcome 7: Vibrant, equitable, sustainable rural communities; and
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
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Framework for South Africa’s response to the international economic crisis.
EDD inherited a Legislative Framework that regulates the functioning of the entities that the Minister
of Economic Development oversees:
•
Industrial Development Corporation Act, 1940, as amended; The Competition Act, 1998;
•
Competition Amendment Act S16 (2008) s16 promulgated 2013; and
•
International Trade Administration Act, 2002.
The Portfolio Committee on Economic Development (the Committee) is seized with aligning its
oversight mandate with government imperatives of job creation, the reduction of income inequalities
and eradication of poverty. The New Growth Path is one of the instruments developed to achieve the
above stated goals.
The report compiled includes the budget vote and annual performance plan of the EDD only. The
report on the annual performance plans of state owned entities will be done separately due to time
constraints.
2.
Briefing on the Annual Performance Plan of the Economic Development Department
The Committee received a briefing from the EDD on its Annual Performance Plan for the 2013/2014
financial year on 16 April 2013. The Minister gave a detailed presentation, contextualising the Annual
Performance Plan of the EDD. The Minister was supported by the Director General and the following
is an overview of the presentation.
2.1
Background to EDD Planning Framework
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The Minister outlined the planning framework of the EDD, indicating that it comprises of the Strategic
Plan and the Annual Performance Plan (APP). The Strategic Plan is a multi-year framework within
which the EDD operates. The Minister indicated that the Strategic Plan is not normally revised
annually and it is expected to be tabled at the start of a new administration. The APP, on the other
hand, is an annual plan that sets out the performance indicators and budget that guides the work of the
EDD. These are broken down further into quarterly targets where appropriate. The Minister indicated
that he receives progress reports on performance from the respective divisions within the EDD. Further
reports on EDD’s performance against targets are reported to the National Treasury and Parliament.
2.2
Economic Development Policy Context
The EDD continues to promote decent work through meaningful economic transformation and
inclusive growth. It also continues to provide participatory, coherent and coordinated economic policy,
planning and dialogue for the benefit of all South Africans. It was mentioned that integration,
coordination and implementation remains key in the EDD’s policy mandate.
The EDD operates within a set legislative and policy framework and this was outlined in the
presentation. It was indicated that the EDD was going to introduce three (3) legislations for
consideration by Parliament and this includes the Infrastructure Development Bill, Amendments to
Competition Act and the International Trade Administration Act.
In his explanation the Minister mentioned that within the context of the EDD, the NDP is a broad
vision for overall economic and social development. It is also an integrator to connect the various
elements of public policy and implementation capacity. The NGP is an economic strategy designed to
shift the trajectory of economic development, including through identified drivers of job creation and
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achieving the NDP economic vision. The IPAP guides the re-industrialisation of the South African
economy and gives effect to the NGP manufacturing jobs driver. The National Infrastructure Plan
gives effect to the NGP infrastructure driver.
It was indicated that the EDD works with a range of other departments and agencies to support
common priorities and initiatives and this includes collaboration through the Economic and
Employment Sector Cluster and the Economic Development (MinMEC). The EDD will also continue
to provide support to the Presidential Infrastructure Co-ordinating Commission (PICC), especially as
the Minister is the head of the PICC Secretariat. The EDD will monitor and ensure implementation of
the already signed Accords. The Minister also indicated that since the Cabinet decision to conclude a
Youth Employment Accord to address high levels of joblessness among young people, the EDD had
been requested to coordinate work on the Accord.
2.3
Overview of progress made
The Minister gave an overview of the progress made during the period October 2010 to December
2012. In terms of jobs, it was indicated that there had been an increase of 603 000 jobs and women’s
jobs had increased to 283 400. African exports and trade with other African economies had directly
generated 25 000 jobs and there was a labour intensity growth from 0.8% to 0.9%. The biggest job
gains were recorded in Gauteng, Limpopo and KwaZulu Natal. The ratio of employed to dependents
declined from 2.86% to 2.77%. It was also indicated that South Africa was now a member of Brazil
Russia, India, and China (BRICS) block.
The Minister went further to indicate that during the period under review, Gross Domestic Product of
3% a year had been recorded and capital stocks had increased by 6.8%. The country had registered a
significant decrease in inequality during the period 2006 - 2011. Industrial Development Corporation
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(IDC) funding of R30 billion had been approved and a R4 trillion infrastructure plan had been adopted.
Manufacturing productivity was up and factories were using more capacity. International tourism was
up two times above the global rate and new film studios and film productions had been registered.
There had been new investments for the BMW 3-series, Ford Ranger, C-class Mercedes Benz and
African Taxi production. The Minister indicated that despite all these achievements, more was still to
be done especially on key plans outlined by the President in the State of the Nation Address (SONA)
and the National Infrastructure Plan (NIP). Examples of some of the key plans highlighted were:

. The eighteen (18) Strategic integrated projects covering the whole country;

150 000 construction jobs in state-led infrastructure projects monitored by the PICC

675kms of electricity transmission lines that were laid last year;

Majuba rail line, which is the first large new rail line laid by the state since 1986; and

De Hoop Dam together with the Mooi Mgeni Dam created a new water yield of 126 million cubic
meters, which is significantly more than the water consumption of the city of Mangaung and
Pietermaritzburg combined.
2.4
Challenges
The Minister explained some of the challenges facing the economic development sector and mentioned
these as the:

Unemployment levels which were still high and particularly youth unemployment

Need to improve effective implementation of decisions

Worsening global environment, rising electricity and other user costs and workplace and
community conflicts.
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2.5
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The Role of EDD in general and in the development of Infrastructure
The major role of the EDD included the convening of meetings of the PICC Council, the Management
Committee and rendering Secretariat support. The EDD will monitor and prepare quarterly updates,
provide oversight of the 18 Strategic Integrated Projects (SIPs). The quarterly reports will give update
levels of implementation, spending and jobs. The EDD will further coordinate information to develop
Skills Plans for every SIP and aggregate these into a National Skills Plan. The EDD was also charged
with working with the IDC on localisation plans for every SIP; collecting and analysing data on
quarterly infrastructure spending by key Public Agencies, Provinces, Metros and National
Departments for Cabinet to consider. Most importantly, the EDD had to identify blockages in
implementation and make recommendations to the PICC and Cabinet. EDD monitors worked to
deepen the 20 year project pipeline by ensuring proposals were subjected to feasibility processes and
that the necessary timelines were developed.
A significant function of the EDD is the support to the Minister of Economic Development in relation
to his oversight responsibilities in relation to the following Entities reporting to EDD:
– Development Finance Institutions: Industrial Development Corporation (IDC) and Small
Enterprise Finance Agency (sefa)
– Economic Regulatory Bodies: Competition Commission, Competition Tribunal, International
Trade and Administration Commission (ITAC)
The role and functions of these Entities were outlined as follows:
Competition Commission and Tribunal:

Reduce input costs in the economy;
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
Increase levels of competition;

Ensure mergers/acquisition approval promote public interest goals such as employment and small
business development; and

Investigate price-fixing and corporate collusion and take firm action.
International Trade Administration Commission:
•
Promote improved trade levels, with a focus on a developmental trade policy that promotes
industrialisation and jobs;
•
Reduce input costs for value-added products through lower tariffs or rebates of duty; and
•
Provide protection for industries as part of a plan to boost competitiveness and jobs.
The IDC, which is the country’s largest Development Finance Institution:
•
Increase the level of funding;
•
Decrease the time taken for approval of projects;
•
Reduce the cost of lending to local companies;
•
Shift to key New Growth Path sectors; and
•
Improve development outcomes: jobs, rural development.
SEFA, which is the new agency for small business funding:
•
Consolidate the work and operations of the three merged groupings into an effective small business
funding machine;
•
Improve the level of funding available;
•
Measure the impact on SMMEs and cooperatives;
•
Strengthen the capacity in rural areas and poorer provinces;
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•
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Consolidate the work with other agencies and departments as well as provinces and local
government; and
•
Promote training and communication projects to support small business: e.g. partnership with
South African Institute for Chartered Accountants (SAICA), launched on 18 July 2012.
The Minister in illustrating the role of the EDD with regards to infrastructure and localisation gave an
example of the bus, train, taxi integrated transport project which connects buses, trains and taxis to
provide urban workers with a cheaper and quicker means of travel. Other examples alluded to include
the manufacturing of buses by Marco Polo plant in Gauteng. All the projects cited promote
localisation, ensuring that manufacturing is done locally.
The EDD has played a unique role in Government through the initiation and signing of Social Accords
between social partners around strategic New Growth Path initiatives. The social partners of
Government, Labour, Business and the Community signed the following accords:
•
Basic Education Accord, 13 July 2011;
•
National Skills Accord, 13 July 2011;
•
Local Procurement Accord , 31 October 2011;
•
Green Economy, 17 November 2011;
•
Presidential Special Agreement October 2012; and
•
Youth Employment Accord, signed 18 April 2013.
An overview of the key phases of the EDD’s work from the year 2009 to 2013 was outlined. The
Minister indicated that the work had happened in ten (10) phases which started from the establishment
of the Ministry up to the launch and implementation of the infrastructure plan in 2013. The specific
phases were outlined as follows:
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
Phase 1: establish a Ministry for policy integration work (2009);

Phase 2: co-ordinate response to recession/global economic crisis (2009-11);

Phase 3: establish a functioning Department: EDD (2010-12);

Phase 4: transfer 6 public entities to EDD and begin process of mandate alignment on jobs (2010);

Phase 5: complete development of a New Growth Path: NGP (2010);

Phase 6: align work in government to NGP; start implementing Outcome 4: Jobs and Growth and
launch work on infrastructure jobs driver (2011-12);

Phase 7: refocus the IDC and Competition and Trade Commission on jobs (2011-13);

Phase 8: dialogue to develop social accords on key NGP areas (2011-13);

Phase 9: consolidate small business entities (2012-13); and

Phase 10: launch and implement infrastructure plan and strengthen NGP focus on industrial policy
(2012-2013).
2.6
Organisational Environment
The Minister indicated that the EDD had received unqualified audits since its establishment and the
necessary governance structures were in place. These included internal audit structures, audit
committee, bid adjudication committee, supply chain management capacity and Human Resources
(HR) related committees. Staff numbers had increased by 14% over the past financial year and 146
posts was targeted to be filled in the 2013/14 financial year. The EDD was expanding its premises to
new offices on the DTI campus with 2056 square meters of new space allocated during the past
financial year.
The Committee was also referred to the thirty eight (38) Key Performance Indicators (KPIs) covering
the four (4) programmes of the EDD which were contained in the Annual Performance Plan. It was
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indicated that the number of indicators had moved from forty one (41) in the 2012/13 financial year to
thirty eight (38) in the 2013/14 financial year, whilst the number of products had increased from one
hundred and forty eight (148) in the 2012/13 financial year to two hundred and twenty eight (228) in
the 2013/14 financial year. The respective KPIs and the number of outputs in the different categories
were outlined as follows:

8 Plans, strategies and instruments;

46 Meetings, dialogues and road shows;

67 Implementation actions including unblocking obstacles and policy interventions;

89 Reports and surveys monitoring, audits;

2 Agreements;

1 Industrial funding;

12 Capacity building and training;

3 Staff and administration targets;

228 is the total number of products.
In the 2013/2014 financial year the focus of the EDD will shift from policy development and planning
to greater emphasis on implementation, providing for the following:
•
Reviews of progress on all the Strategic Integrated Projects (SIPs) of the National Infrastructure
Plan (NIP);
•
Unblocking obstacles to the build-programme.
The Minister further indicated that the following will be considered going forward:

The Entities will now be held accountable for direct impact of their work on jobs and development.
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
A new indicator on jobs impact will be introduced and consolidated on a quarterly basis.

The EDD will evaluate rulings and outcomes of Economic Regulatory Bodies to strengthen and
monitor developmental impacts.

Developmental assessments will be done for Entities to assess their impact on jobs, Women, Youth
and Rural population.

Additional funding of R30 million has been allocated in the 2012/2013 financial year budget to
build capacity across Economic Regulators over next few years.

Action to promote African regional integration will be an explicit KPI An amount of R5 billion
will be targeted towards financial commitments for targeted NGP sectors, small businesses and
companies in distress. This budget includes an additional allocation of R450 million over the
medium term for the capitalisation of the SEFA through the economic competitiveness support
package. Small business funding will be complemented by other actions such as the promotion of
the SAICA partnership on skills

The Small business entities will have targeted road-shows and stakeholder sessions to
communicate available support facilities in government.
3.
Deliberations
The observations and deliberations of the meeting as raised by the Portfolio Committee Members (The
Committee) and responded to by the EDD are summarized and classified accordingly as follows:
3.1
Strategic Plan and Annual Performance Plan
The Committee acknowledged that the EDD’s mandate and scope is quite wide which poses a
challenge, however, it would be helpful if the EDD could identify and be more specific on its projects
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and initiatives and clearly outline these in their APP. Thus the Committee wanted to know as to what
specific projects or initiatives the EDD was going to focus on for the 2013/14 financial year.
The Committee raised concerns that the EDD’s indicators and most of its KPIs were not clear. The
Committee also requested the EDD to indicate as to which KPIs it ought to be measured or assessed on
and to also indicate progress on the Accords.
The Committee indicated that it will need an opportunity to engage on the expenditure estimates and
the budget implications of EDD’s work. The Committee therefore indicated that the budget of EDD
will have to be presented to the Committee at a later stage.
3.2
Implementation of NGP goals and initiatives
The Committee indicated that with regards to KPI 11, (Sector interventions aligned, evaluated and
improved) the EDD with Government could do more in developing the economy.
The Committee observed and indicated to the EDD that they had since noticed that there was a lot of
duplication on the delivery of outcomes within Government Departments.
The Committee mentioned that as much as all of the KPIs were important. It was critical to ensure that
the creation of jobs was of top priority and high on the agenda of the EDD. It was also of critical
importance to ensure that the poorer communities got the necessary education on economic assistance
and opportunities. Thus the EDD was requested to indicate as to what it was doing to ensure creation
of jobs and that the poorer communities are developed.
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It was further indicated that it was important for the EDD to give specific and measurable data on the
creation of jobs and progress made with the various projects.
The EDD was also asked to indicate as to what it was doing to ensure the employment and placement
of youth after training.
The Committee wanted to know which companies had benefited from the Distressed Fund and whether
it was possible for the EDD to give a report giving a breakdown of the beneficiaries in terms of gender
and race.
In response to the above, the EDD indicated that KPI 11 defines what the EDD will be doing and
indeed it was planning to enhance its work on this KPI and ensure that sector interventions are aligned.
The EDD further indicated that what was a major challenge was the issue of integration, as it is a cross
cutting issue.
On the issue of jobs, the EDD indicated that by the end of year 2012, there were increases especially in
the net new jobs. This was according to Statistics South Africa (StatsSA). On targets, the EDD was
focusing on African trade within the context of the NGP and thousands of jobs were being created out
of just trade within Africa. It was also indicated that global growth had continued to be a major driver
to the economic development targets in South Africa and that jobs could be created in the short term
by improving trade with new markets. However, long term job creation had to be done via sustainable
and long term infrastructure growth. The EDD further indicated that there was significant increase in
the net job growth and that unfortunately this was not usually noticed by the public at large. The
Committee was told that it was important to note that there were short and long term jobs so a job for
only a period of two (2) weeks could not be considered as a job because it was very temporary. The
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EDD emphasised that there was a need to ensure that targets and indicators were well understood and
reported within the appropriate context.
On the issue of educating poorer communities, the EDD indicated that KPI 23 (Road shows marketing
the products of the Small Enterprise Finance Agency to SMMEs) as indicated in the strategy was the
main instrument used to educate poorer communities. The EDD indicated that in its APP there needed
to be twelve (12) road shows to highlight the initiatives which government had for SMMEs and
smaller communities. It was also mentioned that an impact had to be made in communities to assist in
the education of poorer communities on opportunities, thus this new KPI was developed.
With regards to the Distress Fund, the EDD explained that the fund was for companies in distress.
There was a KPI which set a financial target for the outflow of money from government to companies
in distress, SMEs and NGP projects. It was indicated that this money was coming from the IDC and
SEFA. In 2012, the IDC got a loan from the China Development Bank and a portion of the money was
for companies in distress. It was elaborated that the idea of companies in distress came from a fund set
up by the IDC to support companies which were affected by adverse global economic situations and
not ordinary cash flow problems. It was not a grant but rather a loan and it was only given to
companies whose distress was as a result of global issues and the company had a viable business plan.
3.3
Alignment of Policies and policy initiatives
The Committee wanted to know what and how the EDD was going to ensure that the differences with
regards to the NDP were not going to compromise the implementation of the NDP which would have
an impact on the achievement of the NGP.
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The Committee also wanted to know whether there was coordination of work between staff that is
assigned in the Provinces and those in National Office.
With regards to the implementation of the NDP and whether there was consensus, the EDD, indicated
that there was consensus on many issues and that it should be taken into consideration that the NDP
and its implementation was an on-going process.
3.4
Infrastructure Projects and Initiatives
The Committee highlighted that the interruptions at the Medupi Power Station were a critical blockage
to the economic development of the nation. Thus the EDD was requested to indicate what it was doing
to manage the blockages in the advancement of this project and also ensure that the development of
this power station is not delayed by labour unrest.
In response the EDD indicated that on the blockages of infrastructure projects, the responsibility of
government was to intervene and resolve crises and blockages. On the Medupi project specifically, it
was mentioned that the Minister of Public Enterprises had led government’s intervention and that had
been greatly publicized and was successful. The EDD indicated that it was unfortunate that it would
not know or be able to predict future blockages so it could not cover this aspect of work in its strategic
plan. However, when such a blockage happens, the EDD moves in rapidly. Examples of such
interventions were common in the construction sector with shortages of cement, bitumen and other
building material. It was indicated that the unblocking of challenges in infrastructure projects was one
of the major duties of the EDD and .this required cooperation from other departments.
3.5
Organizational Structure and Personnel issues
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In light of the revised strategy, the Committee indicated that it was of the view that also the
organogram of the EDD had to be reviewed and aligned to the revised strategy, so as to ensure that the
capacity challenges are addressed.
A number of staffing issues were raised including the high staff turnover within the EDD and the high
vacancy rate. The Committee raised concerns about the vacant posts and wanted to know what plans
are there to ensure that the post are filled expeditiously. It was indicated that the issue of vacant posts
was becoming a concern as it had been raised several times before and the major concern being that
this would adversely affect the EDD’s capacity to deliver on its mandate The Committee also raised
concerns that there was no clear information on staff compliment, the number of vacant posts and how
the EDD was planning to fill the posts. The EDD was requested to present its revised organisational
structure or staff establishment and the strategy on how it planned to fill the vacancies.
In response to the above issues, the EDD indicated that:
With regards to staffing issues there was a process to map the staffing against budget programmes and
this was reflected in the strategic plan. It was also indicated that the EDD was currently aligning the
filling of posts per budget programme. The posts were going to be filled within the context of the
current APP.
The EDD indicated that there was a transitional structure that had been approved and it had been
funded across the Medium Term Expenditure Framework (MTEF) to the value of 166 posts for three
years. However, the evaluation was that the EDD needed to move forward cautiously and that because
of the planning process the EDD was involved in the last quarter, it had set a target of 146 to155
vacancies, moving to an outer year of 166 vacancies.
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The EDD also indicated that they were currently in the process of finalising their operational plans.
They were also looking at a spending plan, which was the costing of those operational plans and the
process of identifying exactly which posts were being funded. Once they had this, they would be able
to move towards the filling of vacant posts. The EDD undertook to report back to the Committee with
its transitional structure by end of May 2013. The EDD further indicated that it was in the process of
hiring a head hunting company that would assist in sourcing appropriate and the required personnel.
3.6
SMME Development, Youth and Rural development
The EDD was requested to indicate what it was doing about youth unemployment and to also explain
how far it was with the implementation of youth employment programmes.
The Committee registered its concern that economic development was concentrated mostly on the
main Metro areas and big Provinces. The EDD was requested to indicate what was being done about
the development of rural areas and other smaller and less developed Provinces.
The Committee emphasised the need for an establishment of an institution that would develop
entrepreneurs. Thus the Committee suggested that the EDD should consider advancing the idea of
developing and establishing a college or institution that will enhance the training and development of
entrepreneurs.
In response to the above the EDD indicated that:
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With regards to addressing youth unemployment, the management of EDD was working on the Youth
Employment Accord and it was going to give an update to the Committee. The Minister agreed to the
concern that the youth were having problems getting placements after training.
On youth employment, the EDD indicated that the signing of the Youth Employment Accord was
going to be signed by Thursday, 18 April 2013 and the Committee was going to be updated on its
implementation.
Regarding the development of rural areas, the EDD is a national department and does not interact
extensively and directly with communities. Much of EDD's work is done with other government
departments through which direct communications take place. The EDD ensures that the appropriate
levels of interaction, co-ordination and implementation take place. For issues relating to provinces the
EDD use the MINMEC and its technical forums. SMME and micro funding support is provided
through sefa via its national and regional offices as well as through retail financial intermediaries. It is
the intention of sefa to roll out an average of nine (9) branch offices per annum over the next five (5)
years. Industrial lending is provided via the IDC and its regional offices to industry and the business
community.
3.7
Other strategic issues
In light of the statement made by the Minister of Trade and Industry in support of the Walmart and
Massmart merger, the Committee wanted to ascertain what the EDD’s stance was on Mergers and
Acquisitions.
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Noting that the EDD also does work on Regional Integration the Committee enquired as to whether
there were any new signed trade agreements and the purpose of those agreements if there are. The
EDD was further requested to notify the Committee on any plans to sign further agreements. In
response to the above the EDD indicated that:
The Government’s stance and policy on Mergers had not changed and that the ultimate objective is to
protect South African jobs, grow the economy and improve infrastructure. It was explained that when
Wal-Mart/Massmart merger was done it had to be in terms of South African law. The EDD had to
ensure that the merger complied with the law. It was indicated that due process was followed and there
has been many positives since the merger took place and some of the positives are that the
employment standards and judicial issues were complied with. The court had ruled that a particular
amount of money be given by Wal-Mart for local infrastructural development.
With regards to trade agreements, there were no new agreements that had been signed by EDD.
4
Recommendations
Based on the deliberations with the Economic Development Department, the Portfolio Committee on
Economic Development recommends the following:

The EDD should intensify its influence on narrowing the gap between the economically
advantaged and disadvantaged Provinces.

The EDD should identify priority areas, be more specific on its projects and initiatives and clearly
outline these in the Annual Performance Plan (APP).

The EDD should come up with a monitoring tool to track progress on all identified projects.
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
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The creation of jobs is a top priority, thus the EDD should give specific and measurable data on the
creation of jobs, impact on jobs and progress made in relation to the implementation of the NGP.

It is noted that emerging economies world-wide, grow mainly by supporting SMMEs and
Cooperatives. Thus the EDD is urged to maximise its support for SMMEs and Cooperatives in
order to speed up economic growth.

The Committee supports the Youth Employment Accord and therefore urges the EDD to
implement it as a matter of urgency.

The EDD should focus on Africa Trade, within the context of the NGP in order to fast track job
creation opportunities.

The EDD should review its strategic plan on an annual basis together with its reviewed
organisational structure. The organisational structure should be presented to the Committee by end
May 2013.

The EDD should provide a monitoring and evaluation tool that will measure the impact of its
projects and programs.

The EDD should enhance its oversight role over the Economic Regulatory Bodies and ensure
transformation of their work to also enhance SMME Development.

The EDD should focus on the implementation of all the 18 strategic infrastructure projects,
especially those directed at the 23 poorest districts in the country.

The EDD should strengthen interventions on addressing monopoly pricing and monopoly value
chains and ensure that investigations on Anti-competitive behaviour are expedited.
Having considered the budget vote and the annual performance plan of the Economic Development
Department, the Portfolio Committee on Economic Development recommends that the House endorse
the 2013/14 Budget Vote 28 of the Economic Development Department.
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Report to be considered.
TUESDAY, 7 MAY 2013
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Bill passed by Houses – to be submitted to President for assent
(1)
Bill passed by National Council of Provinces on 7 May 2013:
(a)
2.
Division of Revenue Bill [B 2 – 2013] (National Assembly – sec 76(1)).
Draft Bills submitted in terms of Joint Rule 159
(1)
Sectional Titles Amendment Bill, submitted by the Minister of Rural Development and
Land Reform.
Referred to the Portfolio Committee on Rural Development and Land Reform and the
Select Committee on Land and Environmental Affairs.
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Deeds Registries Amendment Bill, submitted by the Minister of Rural Development and
Land Reform.
Referred to the Portfolio Committee on Rural Development and Land Reform and the
Select Committee on Land and Environmental Affairs.
COMMITTEE REPORTS
National Assembly
1. Report of the Portfolio Committee on Public Works on Budget Vote 7: Public Works and on
the Strategic Plans, 2012 - 2016 and Annual Performance Plans 2013 - 2014 of the Department
and its entities, dated 30 April 2013
The Portfolio Committee on Public Works, having considered the budget vote of the Department of
Public Works, the strategic plans and the annual performance plans of the department and its entities,
wishes to report as follows:
1.
Introduction
Following the tabling of the Department of Public Works Strategic Plan, the Portfolio Committee on
Public Works conducted public hearings with the Department of Public Works, Independent
Development Trust (IDT), Agrément South Africa (ASA), Construction Industry Development Board
(cidb) and the Council for the Built Environment (CBE).
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2.
Presentations by the Department of Public Works and entities
2.1
Department of Public Works
The mandate of the Department of Public Works (DPW) is the custodianship and management of a
significant portfolio of national government’s immovable assets. This includes the provision of
accommodation, rendering of expert built environment services to user departments at national
government level in the planning, acquisition, management and disposal of immovable assets. DPW is
also mandated to coordinate and provide strategic leadership in the implementation of the Expanded
Public Works Programme (EPWP).
During the 2013 MTEF (Medium Term Expenditure Framework) process, departments were requested
to reprioritise and reduce their baseline without requesting additional funding. Under reprioritisation of
the allocation, funds were shifted from low efficiency/priority expenditures towards areas of higher
efficiency/priority in determining new 2013 MTEF baseline expenditure estimates. The funds
emanating from the reductions will allow government to increase allocations to infrastructure projects,
and to finance the impact of higher than expected wage increases.
Over the MTEF an amount of R1.1 billion was reprioritised with R1 billion being reprioritised from
infrastructure and the balance of R100 million from Transfers and Subsidies (municipal services) and
machinery and equipment. The reprioritisation of funds was intended for the following projects under
the turnaround strategy that was announced by the Minister of Public Works in January 2012:
Turnaround team, Special Investigating Unit (SIU), Clean Audit, Project Management Support,
Immovable Asset Register, Lease review, Internal Audit Support and Treasury Technical Support
Unit.
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The reprioritisation of funds over the MTEF for turnaround is for both Programme 1 and 2 under the
following economic classification:
 Compensation of employees at R 329 million, Goods and services at R 508 million and Capital
assets (Software) at R 5 million.
 Other reprioritised budget over the MTEF is for the following:
 The Independent Development Trust (IDT) at R 150 million, EPWP Incentives Non-State Sector
at R 247 million and Council for the Built Environment (CBE) at R 30 million.
Over the MTEF the budget for the department was reduced by R8.407 billion and the reduction was
under the following:
 Infrastructure at R1.810 billion, Devolution of property rates at R6.487 billion and EPWP
integrated to municipalities at R110 million.
 Infrastructure budget was initially reduced by R810 million with R1 billion being further reduced
in January 2013 in line with Cabinet decision of creating fiscal space through the implementation
of further savings measure.
The reduced infrastructure budget includes R290 million being shifted to Department of Home Affairs
for Land Port of Entry infrastructure projects. Devolution of Property Rates Fund to Provinces was
reduced with the phasing out of the grant to Provincial equitable share. The reduced EPWP integrated
to municipalities was reduced in line with the expected reduction of one percent in 2013/14, two
percent in 2014/15 and three percent in 2015/16. The department received additional budget for
compensation of employees of R 124 million over the MTEF for higher than expected salary increase
for salary level one (1) to 12 in 2012.
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Public Works’ performance targets, as set out in its Strategic and Annual Performance
Plans for 2013/14
The performance of the Department is influenced by the Turnaround Strategy that was announced by
the Minister of Public Works in January 2012.
2.2.1 Programme 1: Administration provides strategic leadership and support services,
including the accommodation and overall management of the Department.
The following is reported:
Internal Audit and Investigation Services: Comprises an approved structure of 61 positions. The 61
positions are reported as inadequate to meet the demands of the Unit and require an additional 15
positions to carry out its required functions, which will bring the total staff compliment to 76.
The annual and quarterly targets are reported as follows:
(a)
An internal Audit Plan was developed and approved by 25 April 2013 by the Audit and Risk
Management Committee in the 1st Quarter, and the Plan will be revised and approved by the
Audit and Risk Management Committee in the 3rd Quarter.
(b)
A total of 12 Fraud Awareness Programmes/Workshops will be conducted across the
Department by 31 March 2014. Over the 4 Quarters, 3 Fraud Awareness Workshops will be
conducted over each Quarter.
(c)
Management and the Audit and Risk Management Committee will receive 1 progress report on
investigated cases per quarter.
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Strategic Management Unit: Staff complement of 19, but requires an additional 14 to bring it up to
the required 33 personnel to fully meet the objectives of the sub-programme.
The Unit is responsible for:
(a)
Tabling Strategic and Annual Performance Plans by March/April of each year.
(b)
Provides training to Branches and Business Units and Regions on performance information by
31 March 2014.
(c)
Update one (1) Risk Register per Branch/Business Unit at Head Office and Regional Offices for
2013/14.
(d)
Department to centralise policy and procedures portal created within the Knowledge Base
System.
(e)
The Departmental Risk Registers are to be updated at Head Office and the 11 Regions over the 4
Quarters.
(f)
Complete Risk Management training in the 2nd Quarter for the Risk Management Committee
members; EXCO; and Chief Directors.
(g)
Letters of appointment to be issued to 8 risk champions at Head Office and the 11 Regions in the
2nd Quarter.
(h)
Draft guideline/manual to be developed in the 1st Quarter for uploading of policies and
procedures on the Knowledge Base System.
(i)
The guidelines/manual submitted for approval for implementation by the business Units in the
3rd Quarter.
Monitoring and Evaluation (M & E) sub-programme: The Unit was established in 2008 and
remained with a vacancy rate of 75 per cent. The Unit requires capacity building to function and its
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current compensation of R4.7 million is expected to increase to R6.9 million over five years with the
filling of vacant positions.
The M&E sub-programme to:
(a)
Institutionalise the M&E Policy through training and reviewing the M&E Policy by 31 March
2014.
(b)
Develop customised performance indicators with the Provincial Public Works Sector by 31
March 2014.
(c)
Complete 4 Quarterly Reports on predetermined objectives.
(d)
Complete the Performance Information contained in Chapter 2 of the Annual Report according
to National Treasury Guidelines.
Intergovernmental Relations and Strategic Services (IGR) sub-programme: Since 2008/09, the
IGR consisted of a staff establishment of 10 officials. The IGR requires the following additional
service provision areas: Secretariat Services; Parliamentary Services; Stakeholder Management and
Public Entities sub-Units.
Finance and Supply Chain Management (SCM) sub-programme: In 2005, the Department
implemented an SCM Unit (which consisted of a minimal structure) at Head Office and Regions.
Personnel in Units were not necessarily SCM practitioners and comprised of contract workers and
interns.
In 2013/14, the focus will be on capacity building and adding an additional 70 new qualified SCM
practitioners at Head Office and the Regions. A dedicated Demand Management Unit will be
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established at Head Office and Regional level to provide support to line managers in the analysis of
procurement spending patterns. The Unit must also “scan the market to develop effective sourcing
strategies”.
The sub-programme will develop and review the following 3 frameworks by the end of March 2016:
(a) Framework for the institutionalisation of Acquisition Management.
(b) Framework for Contract Management Capability.
(c) Framework for Documentation Management.
For the 2013/14 reporting period, the Department reports the following:
SCM policy directives, delegations, business processes and structure developed by 31 March 2014:
(a) 1st Quarter the review and analysis of amendments of SCM Policy and directives.
(b) 2nd Quarter consultation on draft revisions of SCM Policy.
(c) 3rd Quarter Approval of SCM Policy by Accounting Officer.
(d) 4th Quarter Training on revised SCM Policy.
Corporate Services sub-programme: With a vacancy rate of 21.7 per cent, the sub-programme has a
total of 536 filled posts.
The Corporate Services sub-programme to:
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(a) Compile the Department’s Human Resources (HR) Plan and submit to Department of Public
Service and Administration (DPSA) by 1 April 2014.
(b) HR Plan to include: Workplace Skills Plan; Artisan Programme; and resourcing of core business of
the Department.
(c) Update the Department’s organisational structure by 31 March 2014.
(d) Develop 4 Health and Wellness Programmes (emotional; substance abuse; debt management;
awareness and education, physical wellness), in line with the Employee Health and Wellness
Policy.
(e) Department and external stakeholders to conduct 12 workshop/seminars on gender, disability and
youth mainstreaming.
(f) Screen 150 companies (including those appointed by the regional Offices) by 31 March 2014.
(g) Prioritise 100 personnel at head Office and the Regional Offices for vetting by 31 March 2014.
(h) Test and Install the Works Control Module on the Integrated Asset Management System.
(i) Begin phasing in the (requirements, business case and procurement), for the Integrated Financial
Management System (IFMS) HR module by 31 March 2014.
(j) Undertake 10 Public Participation programmes to reposition the Department brand to citizens by
31 March 2014.
(k) Participate in 2 exchange programmes and institutional capacity building initiatives conducted
within the Public Works Sector in the Southern African Development Community (SADC) region,
(for example Zambia), by 31 March 2013.
(l) Identify and facilitate 2 areas for training opportunities in the Brazil, Russia, India, China and
South Africa (BRICS) countries by 31 March 2014.
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2.2.2 Programme 2: Immovable Asset Investment Management seeks to provide and manage
Government’s immovable property portfolio in support of Government’s social,
economic, functional and political objectives.
The total approved establishment posts for Programme 2 equal 5 707 of which 5 098 positions were
filled as of 30 September 2012, and a vacancy of 618 posts.
The Asset Register Management Unit was established in August 2009 and experiences inadequate
current capacity.
The Department reported the following plans to achieve its quarterly and annual targets for 2013/14:
(a) Plans to verify and update a total of 54 647 according to National Treasury Minimum requirements
by 31 March 2014. In the 1st and 2nd Quarters, a total of 13 657 properties respectively; 13 663 in
3rd Quarter and 13 670 in the 4th Quarter.
(b) Plans to make 100 buildings accessible to people with disabilities in terms of the Capital Works
Implementation Programme (CWIP) in phases from the 2nd to 4th Quarters.
The Projects and Professional Services sub-programme requires skilled professionals to implement
the Government’s infrastructure programme. In the past 3 years, the Department was unable to attract
the required skills in line with the Occupational Specific Dispensation, as it also competes with the
private sector.
(a) The Department plans to create training opportunities for 500 graduates over the five-year Medium
Term Expenditure Framework (MTEF) period. The programme will require an annual allocation of
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R170 million over five years and an additional R100 million to provide resources and working
tools for the graduates.
(b) A total of 140 Level 3-4 Exempted Micro Enterprises will be appointed in 2013/14.
(c) A total of 7 contractors each will be appointed in 11 regions.
(d) A total of 55 contractors will receive Competency Certificates upon completion of training and
mentoring at the end of the 4th Quarter.
(e) Construction and refurbishment of artisan workshop facilities in 4 Regions (Polokwane; Umtata;
Pretoria and Cape Town) by the end of March 2014.
(f) The procurement (1st Quarter); appointment (2nd Quarter); and refurbishment of existing structures
(3rd Quarter); and continued construction of the facilities (4th Quarter).
Inner City Regeneration sub-programme: consists of 11 establishment posts of which (6 are vacant)
and 5 are filled. In March 2011/12, a proposal was made for 2 Construction Management Chief
Directorates aimed at creating more jobs in the built environment. The Directorates currently consist of
2 officials and require an additional 14 officials.
The Department reported the following:
(a) The sub-programme requires improvement of its information technology (IT) systems over the 5year period. The system must include the capacity to deal with large scale drawings; geographical
information; and extended presentations.
(b) There is a lack of adequate funding to implement programmes.
(c) Difficulty in attracting professionals which results in delays in planning outcomes.
(d) Complete development plans for 2 precincts (West Capital and Paul Kruger) by September 2013.
(e) Submit application to City of Tshwane in the 4th Quarter to have Salvokop proclaimed as a
township by March 2014.
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(f) Identify 4 sites within the Paul Kruger Precinct by the end of March 2014 for Head Office
accommodation of national departments.
(g) In 2013/14, an allocation of R70.1 million was made towards the 6 Precincts.
Operations Management sub-programme: Requires additional funding for the newly established
Chief Directorate Property and Facilities Management and its operations. In 2012/13, the subprogramme had a staff compliment of 4 838.
The Operations Management sub-programme will:
(a) Annually manage 2 723 leases at the Regional Offices, according to approved business practices
and directives.
(b) Develop a business case for Property Management to guide process of leasing private property by
31 March 2014.
(c) Implement the Lease Review Turnaround Recommendations by 31 March 2014.
(d) Appoint a service provider to manage the day-to-day Call Centre by 31 March 2014.
(e) Manage 51 049 day-to-day maintenance calls (opened and closed) according to day-to-day
guidelines.
(f) Conduct 2 376 main and follow-up inspections for State and leased facilities, and verify occupation
by 31 March 2014.
(g) Each Regional Office should conduct at least 216 inspections by 31 March 2014.
(h) Conduct main and follow-up inspections of 589 construction projects by 31 March 2014.
(i) Verify 10 590 under the custodianship of the Department to pay rates and taxes to municipalities
by 31 March 2014.
(j) Verify 7 700 State properties for the payment of municipal services.
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Key Account Management (KAM) sub-programme: has a staff complement of 60 people.
Additional 12 staff members are required due to the increased service delivery demands and the needs
of User Departments.
(a) The remaining (21 from a total of 46) Service Level Agreements to be signed with identified User
Departments by 31 March 2014.
(b) Ten User Departments from a total of 43 will receive training on User Asset Management Plans
(UAMP) in compliance with the Government Immovable Asset Management Act (No. 19 of 2007)
(GIAMA) by 31 March 2014.
(c) Complete 43 UAMP Templates (1-12) by 31 March 2014.
(d) Submit 11 Monthly Reports to 45 User Departments by 31 March 2014.
(e) Submit bi-annual reports to the Accounting Officer on the compilation and submission of UAMPs
by 43 User Departments and Entities to National Treasury in compliance with GIAMA.
Prestige Management sub-programme: The staff complement consisted of 30 people in 2012/13.
Over the MTEF period, a total of 85 prestige structures (against a target of 154), will be upgraded and
constructed by the Department. The Department will also implement the maintenance plan for prestige
assets.
The Department plans to develop two frameworks, provide training and sign SLA by 31 March 2014:
(a) Framework for Client Value Propositions defining service packages for two major Prestige clients.
(b) Policy Framework for Domestic Services and Interior Design and Décor.
(c) Sign Service Level Agreements with two Prestige clients’.
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(d) Two key Prestige Clients will receive training on User Asset Management Plans (UAMP) in
compliance with the Government Immovable Asset Management Act (No. 19 of 2007) (GIAMA).
(f) Provide Quarterly Reports on the compilation, submission and implementation of UAMPs by two
Prestige Clients through the planning process in compliance with GIAMA.
(e) Provide Quarterly Reports on the progress on implementation of all planning; acquisition;
maintenance and disposal of accommodation programmes for 2 key Prestige Clients.
2.2.3 Programme 3: Expanded Public Works Programme seeks to ensure the creation of work
opportunities and the provision of training for unskilled, marginalised and unemployed
people in South Africa by coordinating the implementation of the Expanded Public
Works Programme.
The EPWP sub-programme consists of a staff compliment of 260 (funded and posts including
additional posts to the establishment), from a staff establishment of 282. The sub-programme has a
vacancy rate of 22 people.
The following quarterly targets are reported:
(a)
A total of 255 municipalities are targeted to report on the EPWP by the end of the 2013/14
financial year. The quarterly target gradually increased by 60 for the first 3 Quarters and 75 in
the 4th Quarter.
(b)
The annual target for creating work opportunities is 1 230 000. The quarterly targets increases
by 300 000 in Quarters 1 to 3; and 330 000 in Quarter 4.
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A total target of 3 500 was set for youth participation in the EPWP. The quarterly target increases
from 500 in the 1st Quarter 750 in 2nd Quarter; 1 000 in 3rd Quarter and 1 250 in the 4th Quarter to
reach annual target.
2.2.4 Programme 4: Construction and Property Policy Regulation promotes the growth and
transformation of the construction and property industries, including uniformity and best
practice in construction and immovable asset management in the public sector.
The current staff complement consists of 25 officials. The Construction and Property Policy
Regulation Branch will require the following to fulfil the set priorities over the five year period: two
Directors, one Deputy Director and four Assistant-Directors.
The five-year budget requirement of the Programme was estimated at R78.5 million.
The following quarterly targets are reported:
(a) Two sets of legislation to be tabled in Parliament: Expropriation Bill by June 2013 and Agrément
South Africa (ASA) Bill by 31 July 2013.
(b) The Draft Expropriation Bill was sent out for public comment in March 2013. The public comment
phase ends on Tuesday 30 April 2013.
(c) Final Built Environment Professions Policy submitted for Ministerial Approval by 31 December
2013.
(d) Two business cases submitted for Ministerial Approval by end of March 2014: Independent
Development Trust (IDT) and Property Management Trading Entity (PMTE).
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2.2.5 Programme 5: Auxiliary and Associated Services seeks to fund various services, including
compensation for losses on the government-assisted housing scheme, assistance to
organisations for the preservation of national memorials, and meeting protocol
responsibilities for State functions.
The Programme does not have any staff and the support on State Functions is outsourced.
The programme reports the following targets for the 4 Quarters:
(a) Received a total of R50.8 million, an increase mainly to support State Functions (allocated a total
of R27.1 million), to provide for inauguration in 2014 and other related functions.
(b) A total of 12 Prestige events supported with infrastructure related services: 4 each for Quarters 1
and 2; and 2 each for Quarters 3 and 4.
(c) The programme does not have a staff complement as most of its tasks are related to transfers of
funding.
(d) Infrastructure support related to State Functions is outsourced to consultants.
2.3
Independent Development Trust (IDT)
The Independent Development Trust (IDT) is a Schedule 2 public entity in terms of the Public Finance
Management Act (No. 1 of 1999) (PFMA), reporting to the Minister of Public Works as the Executive
Authority. It is a development agency offering programme management and development advisory
services to Government departments and other development partners. The entity’s emphasis is on the
eradication of intergenerational poverty, especially among rural poor communities.
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A new Board of Trustees was appointed by the Minister of Public Works on 1 July 2012 to serve a 4year term from 1 July 2012 to 30 June 2016. The Board, inaugurated by the Minister on 25 July 2012,
is comprised of 11 members.
2.3.1 Strategic goals of the IDT
The strategic goals articulate the IDT’s responsibility to promote sustainable development in
poor and marginalised areas through delivery of integrated social infrastructure. The institution
aims to achieve these strategic goals by using resources in a prudent and efficient manner.
Programme 1: Integrated service delivery
Programme 2: Administration
2.3.2 Summary of the IDT 2012/13 Annual Performance Plan
The IDT reports on two programmes:
(a) Programme 1: Integrated Service Delivery.
(b) Programme 2: Administration.
These two programmes have key performance areas, (Programme 1 consisting of two and Programme
2 containing nine) stipulated areas.
Programme 1 focuses on enhancing government’s delivery capacity and integrated social infrastructure
development.
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Programme 2 concentrates mainly on administrative matters which include governance issues;
performance planning and management; risk management; corporate governance; sustainability and
monitoring and evaluations, amongst others.
The IDT has two sources of income:

Management Fees: R280 million for 2013/14 from R242.5 million in 2012/13

Provision based on 10% of gross Management Fees: Deficit of R28 million in 2013/14

Initiative Funding: 0 in 2013/14, but received R30 million in 2012/13.
The overhead expenditure of the IDT also increased from R419.3 million in 2012/13 to R437.7
million in 2013/14. The increase of R18.4 million is mainly due to an increased expenditure on
employee costs.
The cost increased from R249.7 million to 270.2 million in 2013/14, an increase of R20.4
million, an increase of 8.2 per cent in nominal terms. National Treasury projects an infla tion rate
of 5.6 per cent for 2013/14.
The expenditure of the Entity exceeds its Revenue by R130.7 million, a slight decline of its
2012/13 deficit of R137.8 million.
A total of 50 new or replacement schools have been targeted for the 2013/14 financial year which is an
increase of 10 schools. The quarterly report indicates a gradual increase in the number of schools
completed. However, reading the figures set out for the 4 Quarters is not very clear. If one reads it at
face value then the stated quarterly targets all exceed the total annual target for 2013/14.
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Agrément South Africa (ASA)
Agrément South Africa is the national centre for the assessment and certification of non-standardized
building and construction products and systems. It facilitates the introduction, application and
innovation of technologically sound solutions for the construction industry, by issuing fitness-forpurpose certificates for non-standard products.
2.4.1 Agrément South Africa’s Activities for 2013/14
During the year under review, Agrément South Africa highlights some of its activities which have
local and international impact. The activities planned for 2013/14 include the:
(a) Assessments and certification of non-standardised construction products.
(b) Facilitating the introduction, application and utilisation of satisfactory innovation and
technology development, in a manner that adds value to, and supports the construction
industry.
(c) Undertaking technical certification of new labour-intensive construction methods that include
the development of criteria for using thin concrete technology in road construction
(d) Awarding Agrément South Africa certificate of fitness-for-purpose for a new design for low
income housing. The design provides better indoor air quality; uses ‘zero wastage’; and
modular construction approaches; an innovative thin concrete foundation (reducing concrete
use by 1 tonne per house); thereby decreasing construction time.
(e) Technically assessing technologies that can improve the performance of dwellings in rural
areas (through improved traditional building methods) using lightweight building construction
technologies and materials.
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(f) Focusing on technical assessments of innovative products, which include environmental
assessments in accordance with SANS 10400-XA (Energy efficiency and Energy use in the
Built Environment).
(g) Improving the thermal performance of buildings to adapt to climate change and to reduce the
carbon footprint in the construction industry.
(h) Participating in the CSIR initiative to form and build strategic partnerships with the DBSA,
Sasol, Transnet and Eskom.
(i) Delivering and transferring key technical assessment solutions that have a social and publicgood impact.
(j) Implementing key solutions for government and communities through social and public good
projects.
(k) Managing cost control containment prudently to position itself for significant growth in the
near future. Maintain financial sustainability by increasing total technical assessment income
(reported as Other Income on page 43) to at least R1.695 million in 2013/14 and R1.839
million in 2014/15.
(l) Achieving a total of at least R10.662 million in 2013/14 and R11.569 million by 2014/15.
(m) Enhancing internal project management and technical assessment methodology.
(n) Member of the World Federation of Technical Assessment Organisations (WFTAO).
(o) Participating in the 17th Annual General Meeting of WFTAO in September 2013.
In addition to its ties with the WFTAO, it maintains close working relationships with the:
(a) Construction Industry Development Board (cidb).
(b) Council for the Built Environment (CBE).
(c) Independent Development Trust (IDT).
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(d) International Council for Building, Research Studies and Documentation (CIB report).
(e) National, provincial, and local government departments (for example the Departments of
Human Settlements, Science and Technology, Transport, and Public Works).
(f) South African Bureau of Standards (SABS).
(g) South African National Roads Agency Limited (SANRAL).
(h) National Home Builders’ Registration Council (NHBRC).
2.5
Construction Industry Development Board (cidb)
The cidb is a schedule 3A public entity and its main objective is to provide leadership to stakeholders
and to stimulate sustainable growth in, and reform and improvement of the construction sector for
effective delivery. It seeks to enhance the construction industry’s role in the country’s economy.
2.5.1 Strategic outcome oriented goals of the cidb
(a) Strategic Goal 1:
Provide contractor and client support through cidb Provincial Offices.
Through this goal the cidb plans to increase the participation of the emerging sector in the
construction industry, provide support in the enterprise development and reform the industry
players.
(b) Strategic Goal 2: Improve the Construction Registers Service through business excellence. The
cidb plans to maintain the integrity and reliability of the construction registers and improve the
efficiency of the contractor registration process.
(c) Strategic Goal 3: Improve compliance to and maintenance of the cidb prescripts and combat
fraud and corruption in the construction industry. The cidb plans to promote compliance with
cidb’s prescripts and minimize the rate of fraud and corruption.
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(d) Strategic Goal 4: Promote uniformity of construction procurement systems in the organs of
state. The cidb plans to improve infrastructure delivery.
(e) Strategic Goal 5: Monitoring the performance of the construction industry. The cidb plans to
monitor and evaluate the performance of construction industry.
(f) Strategic Goal 6: Improve the performance of the sector, and value to clients. The cidb plans to
promote contractor development and promote performance improvement.
(g) Strategic Goal 7: Improve the infrastructure delivery skills and management practices in the
construction industry. The cidb plans to support the development of infrastructure delivery
skills
(h) Strategic Goal 8: Build, strengthen and maintain relationships with stakeholders. The cidb
plans to facilitate information sharing amongst industry stakeholders to continuously improve
the performance and growth of the sector.
2.6.
Council for the Built Environment (CBE)
The CBE is a schedule 3A public entity and one of its main roles is to oversee the six built
environment professional councils who regulate the professions of Architects, Engineers, Landscape
Architects, Quantity Surveyors, Project and Construction Managers, as well as Property Valuers.
The CBE is responsible for the provision of strategic leadership to the six Professional Councils, and it
must also ensure that the various Professional Councils operate and adhere to the industries regulatory
norms and standards.
2.6.1 The CBE plans to focus on the following over the Medium Term Expenditure Framework
(MTEF):
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(a) Knowledge and practices of the Built Environment Professionals.
(b) Upgrade internal infrastructure that will assist the Research Department to become an efficient
knowledge hub for the Built Environment.
(c) School support programmes, through awareness campaigns and workshops to support
academic staff within universities.
(d) Roll-out of Built Environment career awareness programme; Mathematics and Science support
programmes in schools.
(e) Structured Candidacy Programme as well as work place training to accelerate professional
registration.
(f) Initiate mentorship projects to assess and accredit mentors within the CBE.
(g) The CBE to continue engagement with African counterparts and expand partnerships within the
Built Environment Professions through current international Memoranda of Understanding
(MOUs).
(h) Increasing the representation of women and black people within the Built Environment
Professions.
(i) Quarterly reports on three public functions of the professional councils, namely, professional
registration, appeal, and continued professional development.
3.
Conclusions
The Committee following its deliberations noted the following:
3.1
The Annual Performance Plans (APPs) of the Department of Public Works and some of the
entities were not specific; measurable; achievable; relevant and time-bound (SMART). The
APPs and the Strategic Plans were also not aligned.
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The collusion in the construction industry delays the progress of emerging contractors to move
up into higher grades as set out by the cidb Register of Contractors. The collusion may create
room for the misuse of State funds.
3.3
The Department of Public Works lacks several policies in its key programmes, including the
Department’ carrying out its role in terms of State functions.
3.4
The Department of Public Works and some entities do not meet the employment equity targets
in terms of its staff complement.
3.5
The challenges in the built environment professions are ongoing (particularly the provision of
experiential training for previously disadvantaged individuals and women) and can only be
rectified by the re-introduction of the Built Environment Professions Bill.
3.6
The contract signed between the Department and the service providers in the completion of the
Immovable Asset Register must stipulate that the consultants must not retain any information
on the Asset Register once the project has been completed.
3.7
The construction products certified by Agrément South Africa have wider application including
building energy efficient houses, and schools using innovative technologies that can assist in
reducing the large backlogs.
3.8
The implementation of Turnaround Strategy of the Department should be implemented with the
aim of stabilising the Department so it can deliver on its mandate.
4.
Committee recommendations
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The Committee recommends that the Minister of Public Works should:
4.1
Ensure that the Annual Performance Plans of the Department of Public Works and the entities
reporting to Public Works are specific, measurable, achievable, relevant and time-bound
(following the SMART-principle) by March 2014.
4.2
Ensure that in the next reporting period, the Strategic Plan documents and the Annual
Performance Plans of the Department of Public Works and entities are aligned.
4.3
Ensure that through the Construction Industry Development Board (cidb) and the Council for
the Built Environment (CBE) should make the engineering consultants accountable for the
services and professional advice that they provide in the built environment industry and a
mechanism should be created for accountability purposes.
4.4
Ensure that there are policies in place to regulate how the Department deals with State funerals
and other State functions.
4.5
Ensure that the Department has a policy on Prestige projects that would regulate the maximum
costs, type of furniture to be provided for offices and homes of the Ministers and the Deputy
Ministers. A separate policy should outline the minimum requirements of furniture to be
provided in the houses that accommodate ordinary members of Parliament.
4.6
Ensure that the Department has a Disposal Policy for the disposal of assets that are no longer
required by the Department.
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Ensure that the Department complies with the Employment Equity Act. The Department and
entities should adhere to the required employment percentage of the people with disabilities.
4.8
Ensure that the service providers contracted to assist with the Asset Register must hand over all
the information they have collected to the Department of Public Works as the custodian of such
information.
4.9
Ensure that the Expanded Public Works Programme (EPWP) principles are included in the
design of the projects within Public Works. The EPWP projects ensure that the major parts of
all projects are strictly labour intensive.
4.10
Ensure that the entities reporting to Public Works, e.g. CBE, should be involved in ensuring
that EPWP projects are designed to create jobs, and that the cidb should assist the emerging
contractors through its grading processes.
4.11
Investigate the impact of collusion in the construction industry, over and above the
investigations of the Competition Commission.
4.12
Investigate the role of consultants in collusion on large projects, for example, the Kimberley
New Generation Prison, that ended up with large variations, thereby inflating the initial budget
allocation for the project and report to the Committee before the end of the current financial
year.
4.13
Focus on ensuring that transformation in the Built Environment industry is sped up by
reintroducing the Built Environment Professions Bill in Parliament.
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Ensure that Agrément South Africa is provided with the necessary support for the entity to
popularise its products to other government departments.
Report to be considered.
2. REPORT OF THE STANDING COMMITTEE ON FINANCE ON THE APPOINTMENT
OF DIRECTOR FOR THE PARLIAMENTARY BUDGET OFFICE, DATED 07 MAY 2013
1. The Parliamentary Budget Office
Section 15 of the Money Bills Amendment Procedure and Related Matters Act, Act No. 9 of 2009 (the
Act), establishes the Parliamentary Budget Office. The Parliamentary Budget Office must provide
independent, objective and professional advice and analysis to Parliament on matters related to the
budget and other money Bills. A Director must manage the Parliamentary Budget Office. The Director
must be appointed by resolution of both Houses of Parliament, after a recommendation of the
Committees on Finance and Appropriations of both Houses. In terms of subsection 15(7) of the Act,
any committee considering making such recommendation contemplated in the Act must do so in an
open and transparent manner. In addition, the aforementioned Committees must also recommend to the
Houses of Parliament the conditions of service for the appointee.
2. Setting up of Budget Office and Appointment of Director
On 24 May 2012, the National Assembly, citing technical challenges that have become apparent
during the implementation of the Act, passed a resolution, instructing the Standing Committee on
Finance (the Committee) to review the Act with a view to introduce amending legislation if necessary.
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A Political Task Team was appointed to advise the Houses on the implementation of the Act, and to
consider pertinent aspects relating to the implementation of the Act. The matter of the appointment of
the Director to the Parliamentary Budget Office also received the attention of the Task Team.
Since May 2012, Professor M I Jahed was seconded from the Development Bank of South Africa
(DBSA) to assist Parliament in the process of setting up the Parliamentary Budget Office.
The project led by Prof. Jahed has been able to outline and clarify the functions and scope of the
office, design an operational structure, established networks with external stakeholders and engaged
political parties and relevant Committees.
The Task Team was satisfied with the work that the project has been able to accomplish within a
limited period of time and resources. In addition, the Task Team was of the view that it was important
to ensure continuity in the work that has been initiated. To this end, the Task Team recommended to
the four Committees charged with the responsibility of identifying the Director for the Parliamentary
Budget Office to consider Prof. Jahed for appointment as Director.
3. Prof. Jahed’s Profile
Prof. Jahed holds a PhD in Economics and obtained experience and expertise in economic
development, economic policy formulation and public and development management. He served as a
senior economic planning specialist at the DBSA, was appointed Deputy Director General: Office of
the Premier Limpopo Province, responsible for economic growth and development, economic policy,
economic planning, transformation and provincial administration.
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Prof. Jahed joined the South African business sector representative group, the National Business
Initiative, as Director of Economics. From 2003 to 2005, Prof. Jahed was seconded by the South
African Presidency as Chief Economist and Head of Policy, Strategy and Research of the New
Partnership for African Development (NEPAD) Secretariat. From 2005 to 2010, Prof. Jahed was a
Professor at the University of Witwatersrand (Wits) in the Graduate School of Public and
Development Management (Wits Public and Development Management (P&DM)). Prof. Jahed taught
macroeconomic policy, public economics and public finance, and supervised Master’s and Doctoral
candidates. Prof. Jahed continues to serve as Visiting Professor at Wits P&DM.
Since May 2010, Prof. Jahed has been employed at the DBSA as Divisional Executive: Policy and
Integration. In addition to being appointed to the National Presidential Broad Based Black Economic
Empowerment (BBBEE) Advisory Council, Prof. Jahed serves on various Boards including,
Chairman: Magalies Water Board and Director: Small Business Project.
4. Committee’s Deliberations
The Standing Committee on Finance deliberated on the recommendations of the Task Team, and on
Prof. Jahed’s profile. In reaching its decision on the matter, the Committee took into consideration the
substantive interactions that Prof. Jahed has had with the different political parties and with individual
members, his extensive expertise in finance and economics, and the degree of professionalism with
which he has conducted his work over the past eleven months. Based on the above points, the Standing
Committee on Finance is of the view that Prof. Jahed is a suitable candidate to head the Parliamentary
Budget Office.
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The Committee having engaged and tested the suitability of Prof. Jahed as the Director of the
Parliamentary Budget Office, recommended that he be offered a 5 year employment contract to head
the office in line with section 15 (5) (b) of the Act.
5. Conclusion and Recommendation
In accordance with subsections 15(5) (a) and (b) of the Act, the Standing Committee on Finance
recommends as follows:
5.1 That Professor M I Jahed be appointed as Director of the Parliamentary Budget Office.
5.2 That the appointment of the Director of the Parliamentary Budget Office be subject to agreement to
a 5 year performance based renewable contract with the conditions of service (including salary and
allowance) being substantially the same as those of the top rank of the public service as per
subsection 15(5)(b) of the Act.
Report to be considered.
3. Report of the Portfolio Committee on Communications on its deliberations on the Budget Vote
9: Government Communication and Information System (GCIS), and Media Development and
Diversity Agency (MDDA), dated 7 May 2013.
The Portfolio Committee on Communications, having considered the Strategic Plans and Budges of
GCIS and the MDDA, reports as follows:
1. Introduction
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Section 55 (2) of The Constitution of the Republic of South Africa, Act 108 of 1996, states that the
National Assembly must provide for mechanisms (a) to ensure that all executive organs of state in the
national sphere of government are accountable to it; and (b) to maintain oversight of (i) the exercise of
national executive authority including the implementation of legislation; and (ii) any organ of state. In
terms of the Public Finance Management Act, 1999, the Accounting Officers must provide Parliament
or the relevant legislature with their respective institution’s medium-term strategic plan and where
applicable with its annual performance.
The Money Bills Amendment Procedure and Related Matters Act was promulgated in 2009, by which
it vests powers to Parliament to reject or recommend budgets of departments, it also makes provision
for the implementation of recommendations emanating from the committee’s oversight.
The capacity to communicate effectively with constituents is a fundamental function of modern
governance. A key aspect of governance is how citizens, leaders and public institutions relate to each
other in order to make change happen. Without communication structures and processes which enable
the two-way exchange of information between state and citizens, it is difficult to imagine how states
can be responsive to public needs and expectations. Crucially, two-way communication allows citizens
to monitor the states’ activities, to enter into dialogue with the state on issues that matter to them, and
to influence political outcomes.
The Minister in The Presidency: Performance Monitoring, Evaluation and Administration, Mr Collins
Chabane, who is also the Executive Authority noted in the department’s 2010/11 Annual Report said:
“communication has become service delivery itself; providing for information for action, that people
can use to access services that will improve their lives. Communication now stands as a central support
to the visible implementation of our Programme of Action.” The aim of the report is to provide an
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overview of the 2013/14 Strategic Plan of the Department. This done, notwithstanding the fact that the
Department has not tabled an updated Strategic Plan, the Department has however tabled an updated
Annual Performance Plan for 2013/14 financial year on 13 March 2013. The Committee held briefings
with GCIS and MDDA on 15 March 2013.
1.1 Analysis of the 2013/14 Strategic Plan: Programme Structure Trends
During the past three financial years up to 2009/10, the department was organised into eight
programmes: (i) Programme 1: Administration; (ii) Programme 2: Policy and Research; (iii)
Programme 3: Government and Media Liaison; (iv) Programme 4: Provincial Coordination and
Programme Support; (v) Programme 5: Communication Service Agency: (vi) Programme 6:
International Marketing and Media Development; (vii) Programme 7: Government Publication; and
(viii) Programme 8: Communication Resource Centre.
During the 2011/12 Strategic Plan, following an internal organisational review, the Department
reviewed its structure into three key core programmes namely; (i) Programme 1: Administration; (ii)
Programme 2: Communication and Content Management; and (iii) Programme 3: Government and
Stakeholder Engagement.
Towards the fourth quarter of the 2012/13 financial year, the Department reviewed its programmes
from three programmes to four programmes and this necessitated alterations to the names of two of
the programmes as follows: (i) Programme 1: Administration – remains unchanged; (ii) Programme 2:
Communication and Content Management; is now Content Processing and Dissemination; (iii)
Programme 3: Government and Stakeholder Engagement; is now Intergovernmental Coordination and
Stakeholder Management; and (iv) Programme 4: Communication Service Agency – remains
unchanged.
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Oversight visits conducted by the Committee in 2012/13 to the North West, Gauteng and a follow-up
visit to the Eastern Cape remained an important tool to measure service delivery in practice toward
requisite budget allocations. The transformation of print media Indaba held in Gauteng in June 2012
also assisted the Committee to respond to issues emanating from the above-cited oversight visits.
2. Government Communications and Information System (GCIS) – R396 700 000
The GCIS Acting Chief Executive Officer, Ms Phumla Williams presented an overview of the
Strategic Plan of the Government Communication Information System. She explained that GCIS
engages in communication as service delivery, as communication is critical pivot in mobilising all
sectors of society in the realisation of the National Development Plan. The part of this mobilisation
effort is a focus on the achievements of government and the society as a whole during the first two
decades of freedom and democracy.
The fight against poverty and unemployment demands intensive communication of socio-economic
opportunities created by government for vulnerable citizens and communities, in terms of the key
priorities of government. Government’s focused infrastructure development programme presents a
powerful opportunity to showcase the changing face of the South African economic landscape and the
opportunities arising from this for individuals and enterprises.
The growth in digital and mobile communications presents government with the opportunity and
challenge to engage interactively with citizens and stakeholders, and to join in social conversations
rather than produce one-way communication.
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The primary role of GCIS is to provide strategic leadership in government communication.
Furthermore it aims to coordinate a government communication system that ensures that the public is
informed about government’s policies, plans and programmes.
The Department’s strategic goals over the medium term are:

ensure coherent, responsive and cost effective communications services for all government
programmes;

provide a comprehensive communication service on behalf of government to facilitate the
involvement of the majority of South Africans in governance, reconstruction and development,
nation building and reconciliation;

ensure strength, success and security of South Africa’s democracy through the rapid,
responsive and continuous communication of government’s achievements; and

ensure strategic alignment of the government communication system with the national
government agenda so that government wide communication reports on the five priority areas
of government: education, fighting crime; health; job creation and rural development.
2.1 Programme 1. Administration – R132 600 000
The purpose of the programme is to provide overall management and support for the Department,
through its sub-programmes, which include: (i) human resources management; (ii) strategic planning
and programme management; (iii) training and development; (iv) information management and
technology; (v) internal audit; and (vi) finance and supply chain management.
2.2 Programme 2. Content Processing and Dissemination – R97 000 000
The purpose of the programme is to provide strategic leadership in government communication for the
purposes of ensuring coherence, coordination, consistency, quality, impact and responsiveness of
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government communication. The programme has the following programmes: (i) policy and research;
(ii) products and platforms; and (iii) marketing and distribution.
2.3 Programme 3. Intergovernmental Coordination and Stakeholder Management – R120 000
000
The purpose of the programme is the implementation of development communication through
mediated and unmediated communication, and sound stakeholder relations and partnerships. The
programme has the following sub-programmes: (i) provincial and local liaison; (ii) media engagement;
and (iii) cluster communication.
2.4 Programme 4. Communication Service Agency – R47 200 000
The purpose of the programme is to provide media bulk-buying services and media production for the
entire national government. It is tasked with communicating the work of government through
implementing cost-effective media bulk buying in newspapers, radio, television, outdoor and digital
media, through relevant advertising messaging. As importantly, the programme works to capture
dynamic archives of South Africa’s history. The programme has the following sub-programme: (i)
media bulk buying; and (ii) media production.
3. Challenges
The Department raised the following as their key challenges: (i) limited fiscal resources; (ii)
institutionalisation of government communications; (iii) office space constraints – this was raised as a
challenge during the 2012/13 financial year – however, it is worth noting that GCIS will be moving to
its new premises in May 2013; and (iv) insufficient media bulk buying support from government
departments.
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4. Expenditure Trends
The spending focus over the medium term will be on implementing the national communication
strategy approved by Cabinet in June 2011 and providing for the operating lease, IT, security and
office furniture related to the new head office building, of which the Department is to take occupation
of in 2013/14. These activities will be carried out in the Intergovernmental Coordination and
Stakeholder Management and Administration programmes. In implementing the national
communication strategy, the Department will focus on ensuring that the strategy’s framework is
adopted at the provincial and local government levels and that their development communication
campaigns and programmes are aligned with the government communication programme.
The significant increase in spending in the Administration programme and on operation leases between
2009/10 and 2012/13 was mainly due to the R70 million once-off allocation for the new head office
building. Spending in the Content Processing and Dissemination programme decreased significantly
between 2009/10 and 2012/13 due to the Communication Service Agency sub-programme being
moved out of this programme to be established as a stand-alone programme. This was done to fulfill
the Department’s objective of providing media bulk buying and media production services to national
government departments. Spending on compensation of employees increased significantly in 2012/13
as the Department increased the number of personnel by five people, mainly at salary levels 3 to 13, in
order to implement the national communication strategy, establish the strategic planning and
performance management unit, and allow the Department to assist other department with media bulk
buying.
The Department receives additional allocation over the medium term of R3,4 million, R4,3 million and
R7,4 million for improved conditions of service. Cabinet approved budget reductions of R3,9 million,
R8,3 million and R13,1 million have been effected in spending over the medium term. These
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reductions, along with the accumulated effects of the reductions to the budget allocations in recent
years, have delayed some of the planned expansions of communications services, as detailed in the
national communication strategy. The Department has implemented measures, detailed within each
programme, to mitigate any potential adverse effect on the achievement of outputs.
As at 30 September 2012, the Department had 23 vacant posts due to retirements, resignations and
transfers to other government departments. The posts are to be filled within two months as per
departmental policy. The Department had 505 funded posts in 2012/13, of which 24 contract workers
are employed additional to the establishment. The ratio of support staff to line function staff is 1:3.
5. Media Development and Diversity Agency (MDDA) – R56 301 000
Transfers from GCIS R20 800 000, Media Stakeholders R28 046 000 and Other Income R7 465
000
The MDDA was set up in terms of the MDDA Act, 2002 (Act 14 of 2002) to enable historically
disadvantaged communities and individuals to gain access to the media. The mandate of MDDA is to:
(i) create an enabling environment for media development and diversity which reflects the needs and
aspirations of all South Africans; (ii) redress the exclusion and marginalisation of disadvantaged
communities and people from access to the media and the media industry; and (iii) promote media
development and diversity by providing support primarily to community and small commercial media
projects. The overall objective of MDDA is to ensure that all citizens can access information in a
language of their choice, and to transform media access, ownership and control patterns in South
Africa.
The MDDA’s strategic focus over the medium term will be on: (i) advocating for media development
and diversity; (ii) developing partnerships in advertising with the government departments, public
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entities and the private sector with a view to enhance the sustainability of small commercial media
projects; (iii) providing grant and seed funding for community and small commercial media; (iv)
providing capacity building interventions for beneficiary organisations and communities, including
mentorship and monitoring and evaluation; (v) strengthening and consolidating beneficiary projects to
levels of sustainability; (vi) conducting research and knowledge management; (vii) promoting media
literacy and a culture of reading; (viii) communicating and encouraging public awareness about the
media sector to a level where all South Africans have access to diverse forms of media; (ix) promoting
quality programming and production in community broadcasting; and (x) raising funds and mobilising
resources to strengthen the community and small commercial media projects for sustainability.
The MDDA has the following programmes:
5.1 Programme A: Community Media – R27 091 000
The purpose of this programme is to provide technical, non-financial and financial support to diverse
media platforms owned and controlled by communities. Its strategic objective is the ownership, control
and access to information and content production by communities.
5.2 Programme B: Small Commercial Media – R7 180 000
The purpose of this programme is to provide technical, non-financial and financial support to diverse
media platforms owned and controlled by independent publishers. Its strategic objective is the
enhancement of ownership and control by independent media entrepreneurs.
5.3 Programme C: Research, Training and Development – R3 949 000
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The purpose of this programme is to create and enhance a body knowledge regarding the media
landscape and capacity for a diverse media industry. Its strategic objective is a vibrant, innovative and
people-centred media.
5.4 Programme D: Monitoring and Evaluation – R1 491 000
The purpose of this programme is to assess grant agreement compliance and impact of MDDA funded
projects. Its strategic objective is to strengthen and promote a vibrant, innovative and people-centred
and diversified media.
5.5 Programme E: Human Resources – R2 518 000
The purpose of this programme is to develop MDDA human capital so as to deliver products and
services that delight stakeholders. Its strategic objective will be creation of an environment and
capabilities that deliver MDDA value products and services.
5.6 Programme F: Communications, Branding and Stakeholder Management – R5 061 000
The purpose of this programme is to enhance the MDDA brand as a leader in media development and
diversity. Its strategic objective is to make MDDA a well known, valued and reputable brand.
5.7 Programme G: Risk Management and Internal Audit – R1 659 000
The purpose of the programme is to limit the negative impact of organizational and environmental
risks by enhancing governance and accountability standards of the MDDA.
5.8 Programme H: Financial Management – R6 904 000
The purpose of this programme is to provide MDDA with overall financial and supply chain
management, and guide management in complying with legislative requirements, budget planning,
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financial management and administration. The strategic objective is to strengthen, grow and protect the
MDDA funding base.
6. Expenditure Trends
The MDDA is funded by transfers from the GCIS and grants from broadcast and print media. It also
earns non-tax revenue from interest generated on short term investments. Transfers received increased
from R39,3 million in 2009/10 to R44,8 million in 2012/13 due to the signing and enforcement of a
service level agreement with both print media funders and the broadcast media.
MDDA’s spending focus over the medium term will shift from taking on new projects to concentrating
on existing ones by maintaining their current level of funding in order to ensure their viability.
Spending increased significantly between 2009/10 and 2012/13 in order to meet the agencies grant
making objective of promoting and strengthening the small commercial print and community media
sectors. In 2012/13, 74,6 per cent of the agency’s R52,2 million budget was spent on these approved
grant applications. The number of projects supported in any given year depends on the quality and
quantity of the applications received.
MDDA expects to realise savings in excess of R2 million over the medium term from within the
objectives for fundraising and resource mobilisation and advocacy for media development and
diversity as a result of implementing cost saving measures. The measures included cutting down on
traveling and accommodation costs, taking on fewer new projects and conducting fewer seminars.
This, together with reductions in grant funding, accounts for the slower increase in spending projected
over the medium term.
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MDDA had 14 vacant posts as at 30 September 2012. The posts were vacant as a result of the new
structure approved in June 2012 and are scheduled to be filled in 2013/14. Personnel numbers over the
medium term are expected to increase to 29. Consultants used by the agency provide IT, internal audit
and risk management services, which are outsourced as the agency does not have the personnel to
perform these tasks.
The MDDA request an additional funding of R16, 839 million for the financial year 2013/14
broken down as follows:

Monitoring and Evaluation – R3,1 million: These funds are needed to strengthen the M & E
unit and increase the number of projects monitored yearly to more than 50.

Grant Funding – R10 million: Since the funds from Print funders are decreasing on yearly
basis additional funds are need to add to funds allocated to small commercial media sector
which is funded mainly from Government and Print funders contributions.

Implementations of Communications Strategy – R2,4 million: To increase public awareness
with regards to media development and diversity issues and also encourage an increase in
number of projects applications in rural areas.

Human resources vacancies – R1.339 million
o Senior Manager Communications – R540 000
o Project Officer (M & E) - R179 000
o Company Secretary – R620 000
o Total funding requirements – R16,839m
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7. Challenges
As identified in 2012-13, the sustainability of funded projects remains an ongoing challenge mainly
due to insufficient financial support by mainstream print media to the community print, as well as
insufficient financial support from all spheres of government to sustain the community media through
placing of advertisements that advocates government programmes and activities.
This was also identified during the Committee’s oversight visits in 2012 - 13 to the North West,
Gauteng and Eastern Cape provinces.
8. Observations and Recommendations
8.1 Observations
The Committee noted the following: (i) that MDDA had requested the National Treasury to facilitate
the transfer of the budget allocation for the purpose of capacity building of community radio
programme production from Budget Vote 27 to Budget Vote 9 (ii) that MDDA Board does not have a
Company Secretary as required in terms of sound corporate governance principles; (iii) that not all
national departments comply with the Committee’s 2012/13 recommendations to use community
media when advertising; and (iv) the slow pace towards legislative and policy review which needed to
be conducted in order to address sectoral challenges which relate to sustainability and tariffs.
Furthermore, the Committee expressed its concern over: (i) the state of existing Thusong Centres; (ii)
the empty GCIS stands at Post Offices; and (iii) the reduction in the print order of the Vukuzenzele
publication.
8.2 Recommendations
The Committee recommends that the Minister:
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must expedite legislation and policy review given the challenges facing community media
particularly in terms of transformation;
(ii)
should conduct an audit of compliance of national departments about the Committee
recommendations that national government departments and state owned entities
should
include advertising through community media; and
(iii)
MDDA provide a breakdown of funding for existing and new community media projects.
The Committee is satisfied with the GCIS Strategic Plan 2013 – 2017; its Annual Performance Plan for
2013 – 2014; and MDDA Medium Term Expenditure Framework and Annual Performance Plan for
the period 2013 – 2017 and accordingly supports its implementation.
Report to be considered.