Department of Higher Education briefing on its Strategic plan and Budget

Meeting report

Ms Marry Metcalfe, Director General, Department of Higher Education and Training, addressed the Committee and explained the strategic plan comprised seventeen sections. (See attached presentation).    Three timeframes was covered in the strategic plan. The Department had a 20 to 30 year perspective and was in consultation with stakeholders. The Department focussed on human resource development. She pointed out that only 30 to 40 percent of vacancies were filled in the Department at present. Referring to the structure of the Department, she said that they had copied the old Department of Education’s organogram. This would however change as the Department went through organisation development.

She went on to explain that because the DHET was a new department, it had to establish a baseline for the budget even though there was nothing that they could take from the past.

The Chairperson interjected and said that it was a common perception that people going through the education system were not getting a quality education. Of the 1, 4 million learners that entered the system 12 years ago, only 550 000 had reached matric. Of this group on 350 000 had passed matric. He said that he would hope the DHET plan had addressed these kinds of issues.

Ms Metcalfe replied that the strategic plan addressed the issues raised and aimed to raise the number of people entering the higher education system.

Mr T Tredoux, Chief Financial Officer in the DHET, continued to address the Committee and explained the budget. He said the funds from the old Department of Education budget had been split and was used this to get the baseline values.

Mr W James (DA) asked what the status was of the transfers that had to come to the DHET.

Mr Tredoux said that the transfers would only happen after 1 April 2010 as they had to wait on the South African Revenue Service (SARS). The funds from the Department of Labour had already been transferred.

Mr James (DA) questioned whether the DHET had set aside enough funds for administration support, especially for the FET colleges. He felt that more capacity was needed.

Mr G Lekgetho (ANC) asked the delegation for their contact details at their office. He also added that when they had visited the Education Department, they were told that they would be in a new building yet they had not found the DHET in the building.

Ms Metcalfe said that it was very difficult to say whether they had sufficient money in the budget. She explained that thirteen chief directorates were overseeing the five programs of the DHET. When the organisational development exercise was carried out, they would have to decide whether this was appropriate.

Mr Tredoux explained that the original Department of Education was in a new building. With the split of the Department, the Department of Basic Education had stayed in the new building together with the examination service. The DHET had remained in the old building.

The Chairperson requested that the DHET provide the Committee with the contact details of the people in management.

Ms N Magazi (ANC) asked whether the Committee still had to approve the budget of the Department.

The Chairperson said that they could still change things, but that Parliament had capacity constraints.

Ms N Vukuza (COPE) questioned the fact that the DHET had a baseline in its budget. She pointed out that this was not a real baseline as the DHET was new. The real baseline would only be established later. Since it was a new department, she felt that the DHET focus on its image and communication.

Ms Metcalfe said that they would welcome the Committee’s input on the strategic plan, as it would help them.

Mr Tredoux confirmed that it was not an actual baseline but that National Treasury had constructed it.

Mr A Mpontshane (IFP) asked for more clarity about Program 1 regarding everything that was included under Corporate Services.

Mr Tredoux agreed that they could supply the Committee with a written summary to explain the details.

Mr F Patel, Deputy Director General, DHET, addressed the Committee on Program. He added that the strategy had been approved by Cabinet and that a Human Resource Development Council would be established and chaired by the Deputy President. This would be launched within the next two months. There were also a number of bilateral and multilateral obligations, DHET were responsible for. These were mainly in the African Union (AU) and Southern African Development Community (SADC).  An integrated management information system was to be set up by the end of the financial year. He added there were three items of legislation, which needed attention. These three bills also followed different constitutional processes. He explained that the Higher Education Amendment Act would make minor technical changes to some legislation. The Skills Development Act only refers to the Minister and this needed to be clarified since the department had split.

Mr Fransman (ANC) referred to the issue around career guidance and said that there was no need for real planning as the information was available. It just had to be pulled together. He said that there were many community organisations that were doing career guidance but that the old Department of Education was not willing to use it. Referring to the international relations, which the DHET dealt with, he said that it was important that the skills, especially in the SADC region, be mobile.

Mr James (DA) added that vocational guidance was vital. It was not the information that was the problem however, but rather how it was communicated.

Ms Vukuza (COPE) stated that the DHET was a new department and therefore the opportunity was there for them to do things in a new way. She felt however that from what she had heard so far it seemed that they were doing things as before. She also asked for clarity about the human resource program. She wanted to know whether this was providing human resource development for the DHET or for South Africa.

Mr G Radebe (ANC) wanted to know what timeframes were in place to deal with the different legislation. Referring to social inclusion, he said that it was important for the Minister to remove barriers for students.

Ms F Mushwana (ANC) referred to the strategic objectives in the presentation and asked what timeframes there were for these objectives.

Mr Patel said that there was no coherent strategy where career guidance was concerned. This needed to be addressed urgently and would require much effort. He promised DHET would submit a report to the Committee regarding the international relations commitments. He explained that the HRD program was there to develop a human resource strategy for the country. He added DHET was eager to engage with the Committee around the objectives and deliverables that was in the strategic plan. He added that it was hoped that the legislative amendments would be done in the last session of Parliament in 2010. The specific timeframes for the objectives were given in the strategic plan.

Ms Metcalfe agreed that the career guidance system was a fragmented one and that would like to work with the Committee on this issue.

Mr Fransman (ANC) reiterated that the career guidance system needed to be speeded up. The youth needed to know where they could go to get information. It was also important that the DHET find out who the unemployed youth of the country were.

Ms Metcalfe (ANC) said they all needed to work together on this issue and welcomed the passion that was shown around this issue. This needed to be done across the departments and sectors as labour and organisations such as the Youth Development Agency all had a role to play.

Ms Vukuza (COPE) added that it was important that learners get the information about career options so that they did not end up doing courses, which are not best for them.

Ms Menon, Deputy Director General in the DHET, addressed the Committee on Program 3 of the strategic plan.  She added that the funding formula for higher education institutions would be reviewed. It was also important that access to learning institutions be improved. A Higher Education Summit would be held in April 2010.

Mr James (DA) wanted to know how better quality could be assured from universities as lots of money was being spent on universities.

Ms Vukuza (COPE) asked whether Program 3 and 4 communicated with each other. She stated that universities were institutions of teaching and research and wanted to know if the DHET also had a research section. She also felt that the supply chain needed to be improved where universities were concerned.

Ms Mushwana (ANC) referred to the issue of social inclusion and stressed its importance where universities were concerned.

Mr S Makhubele (ANC) noted that R439 million had been set aside for infrastructure in the budget. He said that there was still a demand for universities in previously disadvantaged communities. Access to universities was also still a problem and difficult for learners. He was also concerned about underspending at universities and whether it could be tracked. He also wanted to know whether the DHET could track graduates from these institutions and whether there was a system in which the universities could be accountable to the DHET.

Mr Radebe (ANC) said that the new university system had to reflect democracy. He was concerned that there was still no university in Mpumalanga and the Northern Cape even though the President had announced that these would be built.

The Chairperson suggested that the DHET report at its next meeting on the progress of this issue.

Ms N Gina (ANC) referred to private higher education institutions, she said that there was frustration with these institutions and wanted to know what measures were in place to address this.

Mr Fransman (ANC) asked whether the DHET could give them the actual input at the end of the year from universities and what the success rate and dropout rate was for them.

Ms Menon stated that the quality of the graduates was of great concern to the DHET and that there would therefore be a great focus on teaching and learning at these institutions. This would be done at the Council of Higher Education (CHE) and the Quality Council for Trades and Occupations (QCTO). Funds were available to improve the quality of lecturers and there was a concerted effort to address this. There would also be a focus on curriculum development. 

There was a strong articulation between the Human Resource Development South Africa and the universities. There was data on the universities as far as lecturers, research, etc. This data however was normally two years behind. They were trying to strengthen the reporting used and trying to make it uniform.  She added that the Minister would be reviewing the issue of accommodation at universities. These shortfalls would be investigated and should be done at the end of 2010. A number of new residences were also being built at present

She also added the National Student Financial Aid Scheme (NSFAS) was being used by the universities. Referring to underspending, she said that the universities submitted their financial statements to the DHET in June of every year. Feedback is then provided to them. So far there had been no major problems regarding underspending. A task team had been established to investigate the building of the universities in Mpumalanga and the Northern Cape. This task team was investigating the type of university needed and the appropriate governance structures.. 

Ms Metcalfe added that the DHET did not provide services to students. The challenge for the DHET was to ensure that the services rendered was done well.  She pointed out that the DHET did not have a research section but outsourced this function when it was needed. Referring to the NSFAS she said that the Minister would release a report on it on 16 March 2010. On the issue of social inclusion, she said that the DHET wanted to increase access for all even those who had not achieved a basic education qualification. She stressed that the DHET focussed on post schooling and not post secondary schooling. They wanted to ensure that there would be multiple pathways to achieve an NQF 4 qualification. Commenting on the new universities, she said that it was important that thorough research was done so that the universities in Mpumalanga and Northern Cape could compete with the other universities.

Mr Fransman (ANC) said that when the Committee said that the two universities need to be speeded up, they did not mean that there should not be proper planning. The task team had been set up in 2008 already and the President had also pronounced on it, yet it seemed as if there was no progress. He also wanted to know what kind of university would be built as far as skills and research was concerned. He also said that the strategic plan was not very clear about what was expected from the DHET and wanted to know if this was because it was a new department. He also felt that the outcomes were not very specific.

Mr Lekgetho (ANC) said that the Student Representative Councils (SRCs) had a history and power in higher education institutions and wanted to know if there were any relations between the DHET and these organisations especially the South African Students Congress (SASCO).

Ms Metcalfe continued to address the Committee on Program 4 and 5.  She added that the DHET would focus in this program on the Further Education and Training (FET) Colleges and Adult Basic Education and Training (ABET) post literacy. She explained that the FET colleges were to be a national function. Before the new department had been established, it had been the responsibility of provinces. There was strong support for this change across all parties as there was a need to integrate the post school system. The money given to provinces for FET Colleges would be transferred to the DHET. The Minister would also be setting up Council of Education Ministers, which would include all the MECs for the DHET as well.

She added that the Education Labour Relations and Conditions of Service was a very complex part of the program to manage. She reminded members that FET College staff was not employees of the DHET but of the FET College Council. It was therefore quite complex to sort out the conditions of service in this sector, but needed to be resolved.

Much work was also needed in the area of the National Certificate Vocational (NCV) courses. Industry had voiced concern that there were some skills lacking in these NCV courses compared to the old National course for artisans. The DHET was also looking at adult specific matric, which was different to the present matric. There was a need for this; there were a number of people who had not had the opportunity to complete their schooling. Referring to the examination function, she said that it was housed with the Department of Basic Education as present although it actually fell under the DHET. This was still an issue grappled with. DHET did not want a central FET exam but wanted each FET College have their own. She stressed that the DHET had limited funds for the huge challenges it had to deal with.

There were huge challenges especially in the skills development section. There was also great concern about the standard of artisans and the National Artisans Moderation Board (NAMB) was established to look at this. The under performance of the SETAs was also a concern and the DHET was looking at this and investigating how the SETA landscape would be changing. She emphasised the complexity of the DHET and that it was therefore important for them to interlink with the Committee. To do everything however they would need more money.

Mr Lekgetho (ANC) stated that his question regarding SASCO had not been answered.

Mr James (DA) wanted information about the FET Colleges such as the staff complement, vacancies, etc. He stressed that the FET Colleges needed a lot of work. Some of were dysfunctional. The funding formula for FET Colleges also needed to be investigated. He suggested that the Committee meet with the Committee on Economic Development and with the relevant Ministers, as there was a link between the two.

Mr Radebe (ANC) added that the budget for FET Colleges was still low compared to the universities. The SETAs also needed to respond to the five key priorities mentioned by the President. He also wanted to know what system was in place to monitor the “fly by night” colleges.

Ms Metcalfe said that the DHET had good relations with SASCO. It was however the various institutions’ responsibility to keep in touch with student issues. She agreed that the FET issue was a complex one and that a lot of work needed to be done. There was not enough capacity to deal with this however. She stressed that there were concerns with the funding of these institutions. Some colleges however were very strong while others were very weak.

Mr Fransman (ANC) said that it was important to interrogate what the cost drivers were in the education sector. He felt that the Committee needed to support the DHET in its efforts to get more money. He was also concerned about rollovers that happened in the Department.

The Chairperson adjourned the meeting and said that the outstanding issues would be dealt with in the following Tuesday’s meeting.