Committee Report on Department of Communications and its entities 2012 budget

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Communications and Digital Technologies

04 May 2012
Chairperson: Mr S Kholwane (ANC)
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Meeting Summary

The Committee considered and adopted (with amendments) its report on the Department of Communications and its entities 2012 budget.

The majority of comments from Members related to grammar, language and structure of the report.

Further recommendations by Members to the report included that- (i) the Minister expedited action on appointment of Board Members to the Universal Service and Access Agency of South Africa Board (ii) SABC must comply with the provisions of legislation with regard to separation of public and commercial services when it presented its strategic plan (iii) the Committee hold a workshop with all entities related to the Department (iv) pending disciplinary hearings in the Universal Service and Access Agency of South Africa be speeded up and brought to finality.

The report was adopted subject to effected corrections and recommendations.

 

Meeting report

The Chairperson welcomed Members and informed them that Brand South Africa (BSA) would fall under the auspices of the Committee’s report for the current financial year for purposes of the budget debate in the House.

The Chairperson requested Members comments on the Communications Budget Vote Report (the report).

Committee Report on Department of Communications 2012 budget

The majority of comments from Members were based on correcting grammar, language and structure of the report.

Mr A Steyn (DA) suggested that figures in the Committee’s report be reflected exactly as they appeared in the Department’s budget rather than rounded up to the nearest whole figure.

The Chairperson asked for Members opinion on the suggestion.

Members agreed with Mr Steyn’s suggestion.

Ms F Muthambi (ANC) highlighted that the statement in Paragraph 4.3 of the report that the Committee commended the Minister’s swift action in removing the Universal Service and Access Agency of South Africa (USAASA) Board did not represent the entirety of the Committee’s position.

The Committee had in addition specifically requested that the Minister expedite the appointment of new board members.

The Chairperson suggested that this be included in the final recommendations of the Committee.

Mr Steyn drew Members attention to the part of the report under Paragraph 3.4, which stated that USAASA required an addition funding of 620,000,000 for Set-Top boxes subsidy. During the Committee’s meetings with the Department, the Committee had been informed by USAASA that it was responsible for both the subsidy of the arial and the installation costs, which it had not budgeted for within the current financial year, hence only half the people it had targeted for the subsidy would in fact be getting the subsidy under its current budget. He suggested that this be reflected as part of the Committee’s concerns under Paragraph 4.3.

The Chairperson explained that the Department’s first submission to Cabinet did not cover costs for the arials and installation costs but that its resubmission did in fact cover these costs. It was hoped that approval for other years would cover the deficit from the current financial year although there were no guarantees yet. However, he concurred that the Committee’s report should highlight its concern that only half the people initially targeted for the subsidies would actually benefit.

Mr Steyn asked for clarification on the statement ‘the Committee had noted the funding model of the public broadcaster’ under Paragraph 4.4.

The Chairperson explained that the Committee had noted from the presentation by the South African Broadcasting Commission (SABC) that it was underfunded and called for a review of its funding model which was grossly insufficient.

Mr Steyn suggested that the statement be rephrased to specifically state that the Committee regarded the lack of funding to SABC from the government as a major issue.

Mr Steyn recommended that the Committee’s concerns addressed under Paragraph 4.4 should include concern about the Department’s lack of Performance Agreements for its senior officials.

Recommendations

Members made additional recommendation to those already contained in the report.

Ms Mthambi suggested the Committee recommend that: (i) the Minister expedite action on appointment of Board Members to the USAASA Board. (ii) SABC must comply with the provisions of the PFMA and Public Act with regard to separation of public and commercial services when it presented its strategic plan.

Mr Steyn made the following recommendations to be included in the Committee’s report: (i) that the Committee hold a workshop with all entities related to the Department. (ii) that pending disciplinary hearings in the USAASA be brought to finality.

Mr Steyn moved for the adoption of the report subject to the corrections, Ms Muthambi seconded this motion.

The report was approved with amendments.

The meeting was adjourned.

 

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