Film & Publication Board and Government Printing Works: Strategic plans 2012

Meeting report

Election of Acting Chairperson
The Committee elected Mr A Gaum (ANC) as acting Chairperson.

Film and Publication Board: Strategic Plan 2012
Ms Thoko Mpumlwana, Chairperson, Film and Publications Board, noted that the Film and Publications Board (FPB) had difficulty keeping up to date with the technological advancements, because technology in the industry was always changing, and would have to keep alert and work closely with other government departments like South African Police Service (SAPS), Department of Communication and the two Departments of Education. FPB wanted to outsmart the individuals who were replicating the FPB logo.

Ms Fisher, Chief Operating Officer, FPB, noted that the mandate was based on protecting children from exposure to harmful and inappropriate content, punishing the use of children in pornography and regulating films and games. Recently, the vision of the FPB changed, to focus more on content. FPB was a leading and credible regulator of the content of films and games, and this regulation would protect and inform individuals. FPB monitored the industry, facilitated reporting of child pornography and took steps to punish the perpetrators. FPB mission also aimed to classify content to align with societal norms and values, and to empower the public to make informed decisions. FPB also focused on cyber bullying. It worked with international agencies, who could help the FPB in its role of cyber protection. The ultimate goal of the FPB was to introduce online child protection.

She gave a situational analysis and noted that FPB needed new measures to protect children, and empower children to make the right choices, by regulating films, publications and games (FPGs), and she said that 20 000 FPGs were classified over the last three years.  There had been a decline in the number of FPGs submitted, due to increased monitoring and industry trend analysis.

Ms Fisher said that FPB had had significant challenges over the last five years. The FPB had limited capacity and capabilities in IT, research, project management, industry specific skills and systems. It was aware of the need to educate parents, teachers and children and these guide lines should be tested against societal norms. There was also a need to improve registration, submissions and compliance by all distributors. A review of the legislation was needed.

Ms Fisher then outlined and explained the strategic outcomes, giving the objectives and key initiatives for each (see attached presentation for details). The first strategic outcome was based on effective and visible regulation of FGPs to protect children and to inform the general public, and here she stressed strategic partnerships and stakeholder relations and international regulatory alignment. The second strategic outcome related to informing the general public about the mandate of the FPB, and this encompassed outreach and awareness, regulatory repositioning and public relations. The third strategic outcome related to effective and efficient management of FPB operations, and meeting the needs of the mandate. FPB intended to implement a turnaround strategy, to increase its revenue base by 2%, manage human resources and customer care skills, formulate new regulatory police, and formulate amendments.

Mr M Molapo, Council Member, FPB, presented the budget. He noted that the anticipated sources of revenue were the R69.3 million grant from Department of Home Affairs, classification fees of R8.2 million, registration fees of R 1,1 million, costs of annual renewal of registration certificates of R500 000 and interest of R201 000, bringing the total to R79.373 million. The budget for operating expenditure comprised personnel costs of R33.2 million, other operating costs of R14.84 million, governance of R2.6 million, professional services of R 7,22 million, and communication and marketing of R9 97 million.

He outlined some of the projects and their anticipated costs, including the Classifiers reporting system (R 215 000) the Online content Regulation systems (R140 000), Monitors’ Reporting System (R200 000) and other projects totalling R555 000. All expenditure, including capital expenditure of R800 000 and capital expenditure on ICT of R2.3 million, was estimated as R79.37 million.

Over the next five years, FPB would be upgrading systems to be in line with the market.

Discussion
Mr M Mnqasela (DA) asked what the relationship was between the FPB and the SABC, and what progress had been made with the other departments.

Ms Mpumlwana responded that the FPB did not regulate the content on TV and had written to the broadcasters to implement a single system that would regulate the content.

Mr G Mcintosh (COPE) asked about the definition of societal norms, blocking of sites and expressed concerns about the budget.

Ms Fisher noted that blocking of sites was not an easy issue. Although FPB could not prevent children from using the internet, it did work with the search engines, like Google, to reduce the chances of children coming across adult content. The ultimate goal was to have age verification systems. It was not possible to set a single standard for societal norms as every person was more liberal or conservative than others. However, FPB used broad convergence, to check information collected.

Mr Molapo responded, in relation to the budget, that FPB was regulated by National Treasury, and was unable therefore to budget for a surplus or dividend.

Mr M Freitas (DA) asked what the FPB was going to do about the logo.

Ms Fisher explained that FPB did not want anyone else to reproduce their logo and benefit from it. Therefore, businesses would need the permission of the FPB to use the logo.

Mr Freitas enquired what kind of research FPB did.

Ms Fisher said that the FPB did a wide variety of research, which would differ from year to year.

Mr Freitas asked about the 2% revenue increase.

Mr Molapo explained that the 2% revenue increase came from the logo registration.

Ms G Bothman (ANC) wanted clarity on registration and the interest received.

Mr Molapo explained that the FPB received revenue from all the individuals who registered with the FPB, and funds not used immediately would be held in a fixed deposit, accruing interest.

Ms Bothman asked how classification was done, and whether FPB had a role to play in respect of music.

Mr Molapo said that classification depended on the type of movie. Ms Fisher added that the FPB did regulate music videos.

Ms N Mnisi (ANC) asked about awareness programs on the ground.

Ms Fisher responded that the FPB had been running awareness and education programmes for the past ten years, and had reached 60 000 people last year in all kinds of areas. The FPB educational programmes, such as its “Back to School” campaign, would raise awareness about cyber safety.

The Acting Chairperson asked about capacity, skills and staff.

Ms Fisher responded that the FPB tried to utilise all staff fully and also focused on partnerships.

Government Printing Works Strategic Plan 2012/13-2014/15
Professor Anthony Mbewu, Chief Executive Officer, Government Printing Works, noted that the strategic plan focused on specific processes, and set out where the organisation wanted to be in the medium and long term, the current status and the measurable targets. He explained the operating model, and also explained that the Government Printing Works (GPW) had converted to a Government Component, meaning that it must be sustainable and profitable. GPW would remain focused on its core business of security printing.

GPW aimed to be the state’s mandated security printer, and to provide cost effective, reliable and timeous service to all spheres of government. It would also provide the public with information and disseminate government information. It was firmly committed to values of reliability, integrity, accuracy, and achieving stakeholder satisfaction.

Prof Mbewu explained that through a production process optimisation, GPW aimed to develop appropriate facilities for efficient and cost competitive production and best practice for the high security printing environment. A budget of R583 million had been allocated over the MTEF period.

The asset replacement programme would entail the replacement of outdated technology and machinery, The majority of the machinery was in poor condition, and there had been technological advancements made in the printing industry in the last twenty years. GPW currently lacked capacity to produce high security printed material and would need to be in line with international printing standards. In order to do so, it would be spending R310 million over the MTEF period.

Linked to this was another strategic goal for technical migration. GPW would operate according to accepted ICT governance and ICT legal compliance. GPW would also acquire hardware and software to accommodate the new IT systems and services. It aimed to achieve an electronic Government Gazette, proper IT sourcing strategy and effective IT asset management.

The strategic goal for the GPW Establishment involved full implementation of the new GPW structure, and migration of staff to the new approved structure. Insofar as marketing was concerned, GPW would consolidate business opportunities and customer focus, develop the GPW brand, focus on customer retention, business development and development of an aggressive regional marketing strategy. These objectives would ensure organic growth and a vibrant financial organisation.

Prof Mbewu then gave some further details under each of those plans. In respect of operations management, outdated technology and machinery would be replaced, GPW would be cost competitive and would produce high quality security products such as IDs and passports. The GPW wanted to achieve product and service excellence. Its financial management would comprise accurate planning and forecasting, maintaining optimal cash flows and working capital, managing financial risks, and implementation of a new system to reduce adverse audit findings and qualifications. The cost/product pricing system and strategy would be reviewed to reduce waste and spoilage.

ICT governance would comprise high level information security and control measures, aimed at minimising harm to GPW business from potential vulnerabilities and threats. Strategy formulation and planning would entail a common framework for inclusive business aligned operational and tactical decision-making, and IT that would be security minded, performance based and aligned to GPW business. An integrated environment with scaleable and optimised processes would be included in the architecture management. GPW aimed to achieve better coordination of IT projects, a secured infrastructure and a centralised and efficient help desk and service management processes.

GPW needed a proper IT sourcing strategy, and to develop and retain good IT skills and IT asset management. IT service needed to be effective, well coordinated and have an effective help desk and service management process. Supply chain management needed to reduce stock levels, phase out redundant stock, and adhere to the revised Broad Based Black Economic Empowerment (BBBEE) guidelines. The supplier database needed to be updated.

GPW had a new structure, had finalised outstanding job descriptions and was continuing with the job evaluation process. A migration plan had been drawn, in consultation with labour, and a communication strategy for migration of staff to the Government Component. GPW had revised, developed and customised policies, had put in place training partnerships and had spent time spent on training for talent management and leadership development. GPW wanted to determine critical jobs, determine jobs in line with the broader public service, and had negotiated with Department of Public Service and Administration for a special dispensation. Performance management systems would be based on job descriptions and alignment of work plans.

GPW had updated the security systems, and introduced vetting systems for key personnel. GPW needed an internal audit department, and this would attend to developing internal audit and risk management plans and monitoring compliance with Public Finance Management Act (PFMA) and related regulations. GPW had worked on setting up a marketing department. It would expand the range and value of products, the scope for sophisticated printing services, and the conversion into a Government Component would enable the transformation process and turnaround.

Some of the key projects included a new security printing division, new ID smartcard, and implementation of the E-Gazette, creating capacity to print passports and visa pages in-house, implementation of new ERP systems and development of a new facility at Visagie Street.

Mr Rassie Barnard, General Manager: Financial Services, GPW, noted that GPW had been working on new ERP software solutions, which would include Hiflex (production systems), Microsoft dynamics AX (financial), Microsoft share point, intranet and internet. Mr Barnard added that GPW tried to be financially sound, increase cash flow, have funds available and manage revenue streams effectively. He outlined the budget changes in the areas of administrative expenditure, employee benefits, depreciations and provisions.

Discussion
Mr Mnqasela asked why GPW delegation was involved with DPSA, and why the vetting system was not the same for all employees.

Prof Mbewu responded that the GPW was in need of qualified individuals, and that was why it had held discussions with the DPSA. The vetting system at the GPW was based on job title

Mr Mnqasela asked if the E-Gazette would be available in all 11 official languages.

Prof Mbewu answered that the E-Gazette would be made available for all citizens of South Africa.

Mr McIntosh noted that the number of ID books and passports had dropped, but the GPW had doubled the sales in value.

Mr Andries Mosona, Factory Manager, GPW, said that IDs and passports were not the only products that the GPW produced, but that GPW also did work for other government departments, including Department of Justice and Constitutional Development.

Mr McIntosh asked who printed maps and stamps.

Prof Mbewu answered that this was not within the mandate of the GPW.

Ms Bothman asked for clarity on the reference to market related salaries. She asked if the budget related to GPW only, or to Department of Home Affairs.

Prof Mbewu said that GPW had been in communication with Department of Home Affairs concerning market related salaries, to ensure an environment that was holistically applied for all employees. Whilst the current budget related to the GPW, it must be remembered that Department of Home Affairs was the primary stakeholder for GPW.

Ms Bothman noted that despite GPW now having more employees, it seemed still to be outsourcing work.

Prof Mbewu said that GPW still needed skilled individuals to run the high-tech machinery.

Ms Bothman asked for clarity on “sundry expenditure”.

Mr Barnard explained that production assets came from other countries and the expense was due to currency exchange.

Ms H Makhuba (IFP) asked how the E-Gazette would be distributed.

Prof Mbewu said that GPW was working on its own website, which would host the E-Gazette.

The meeting was adjourned.