Department of Higher Education and Training on its Strategic Plan & Annual Performance Plan 2015/16

Meeting report

Chairperson's opening remarks
The Chairperson welcomed the Committee members, the Deputy Minister, Mr Mduduzi Manana, the Director General of the Department of Higher Education and Training (HET), Mr Gwebinkundla Qonde, and his team from the Department.

The Committee Secretary, Mr Anele Kabingesi, conveyed the apologies from the Minister of Higher Education and Training, who was unable to attend the meeting because he was attending a Cabinet meeting, Ms J Kilian (ANC) who had been granted leave to attend to personal matters, and Mr M Tshishonga (AGANG), who was attending a meeting with the Secretary to Parliament.

The apologies were accepted..

Minutes

 
The Chairperson said that the purpose of the meeting was to consider the Strategic Plan (2015/16-2019/20) and Annual Performance Plan (2015/16 MTEF), as required by the Public Finance Management Act and Money Bill Amendment Procedure and Related Maters Act. The Minister was commended for tabling the Strategic Plan and Annual Performance Plan from the Department and its entities on the 11 March 2015, and these had been referred to the Portfolio Committee for consideration on the same day. The role of the Committee was to assess the targets and indicators of the reports against Government priorities, objectives of the White Paper for Post School Education and Training, the National Development Plan Vision for the Post School Education and Training sector, and other socio-economic demands of society. In preparation for the presentation, the Portfolio Committee had already met with the Finance and Fiscal Commission (FFC) and the Auditor General of South Africa on 11 March 2015.

The Portfolio Committee was aware that the Department had received an allocation of R41.8 billion, excluding direct charges, for the 2015/6 financial year and this allocation was not sufficient, considering the challenges of the post-school education and training sector. Even the FFC in the meeting on 11 March 2015 acknowledged that the funding of post-school education and training as a whole was a concern and a new framework would have to be introduced in South Africa based on different funding principles and on a policy of institutional differentiation. The Committee also noted that the Auditor General of South Africa (AGSA) did not have any significant findings on the Department’s indicators and targets of 2015/6 APP in the three programmes that they had assessed. However concern was raised that out of the 21 Sector, Education and Training Authorities (SETAs) assessed, eight of them did not meet the requirements on their indicators and targets of the 2015/6 APP. The Committee hoped that the Department would work closely with these SETAs to ensure that their targets were corrected and resubmitted.

DHET on its Budget, Strategic Plan and Annual Performance Plan

The Deputy Minister of Higher Education and Training was invited to give opening remarks and an overview of the presentation.

Mr Manana said it was mandatory for Government departments to produce five-year strategic plans for the beginning of every five-year political mandate, following the national elections. For this reason, the strategic planning session was held between 26 and 27June 2014. It was during this session that the Minister of Higher Education and Training sought to emphasise the importance of implementing the White Paper and the imperatives of the National Development Plan. Following this session, in August 2014, the Director General had held a three-day department-wide strategic planning session with members of the senior management. The Department used this session to strategise on delivery expectations in terms of the White Paper, the Medium Term Strategic Framework (MTSF), the National Development Plan and other directives from the ministry. There was now acknowledgment from all quarters that higher education in this country was at a disadvantage, and whatever the ministry did would  be a response to the increasing demand with the little that was available, but they refused to be despondent in that regard. The presentation on the Department’s five-year Strategic Plan 2015/16-2019/20 and Annual Performance Plan 2015/16 had been prepared and submitted to the Portfolio Committee. The delegation from the Department, with the Director General, would  present and brief the Portfolio Committee on them.

Mr Qonde, Director General, said the various heads would present on the different sectors. The Strategic Plan was the second one since the Department was established in 2009, after proclamation by the President of the Republic of South Africa. The Department was responsible for all post-school education and training in the country, which included 26 universities, 50 technical and vocational education and training (TVET) colleges, and 21 Sector Education and Training Authorities (Setas). It was also responsible for adult education and training for the entire country, and the human resource development committee chaired by the Deputy President of the South Africa, although the secretarial work was done in the Department of Higher Education and Training. There were also a couple of quality councils residing within this portfolio. It was the coordinating department for Outcome Five of Government’s 14 outcomes, for “a skilled and capable workforce to support an inclusive growth path”.

In 2014, the Department had released a White Paper for Post-School Education and Training (PSET). The White Paper had been preceded by the release of the Green Paper in 2012 by the Minister of Higher Education and Training with the intention of soliciting the views of the public. In that process, over and above numerous discussions with all sectors across the country, the Department had received over 200 submissions that further engaged and contributed quite a lot in realising the interest of the public in the process towards the final development of the White Paper. The White Paper’s main focus was on the shape, size and type of the system as a whole. The White Paper had created a framework that defined the Department’s vision for PSET, its focus and priorities. The Strategic Plan covered the period 2015 to 2020 and was informed by the vision espoused in the National Development Plan, the 2014-2019 Medium Term Strategic Framework (MTSF) and the imperatives of the White Paper and other strategic documents.

The strategic overview of the Department had been calculated in the vision, which was to lead post-school education and training for growth. Growth included both quantitative and qualitative factors. The mission of the Department was to provide national strategic leadership in support of an integrated post-school education and training system towards improved quality of life of the South African citizenry.

The first strategic goal was to provide a sound post-school education and training legislative framework with a view to steering the system to provide an enabling environment for teaching and learning research, innovation as well as training. The second strategic goal was to provide post-school education and training services for curriculum programmes, teaching and learning infrastructure, facilities and anything that would  allow the Department to provide quality services in so far as the provision of curriculum in the system was concerned. The third strategic goal was to provide post-school education and training capacity with requisite resources, including retraining of staff. The programme looked at intervening in order to ensure that the Department developed the capacity to produce more and properly trained lecturers. The fourth strategic goal was to facilitate a strong stakeholder network. The Department realised that it was important to build linkages between industry and institutions to enable the training of the right set of skills required by society, as well as by industry throughout the country.  The fifth strategic goal was to ensure continuous business excellence within the Department of Higher Education and Training and to improve efficiencies in the manner in which the Department discharged its responsibilities towards realising all these strategic goals.

In line with the strategic goals identified, the Department would  first develop and review a legislative framework aimed at steering the post-school education and training system in line with the imperatives of the White Paper. Secondly the Department would  expand and improve the quality of post-school education and training by introducing appropriate teaching and learning support interventions for universities and technical and vocational education and training (TVET ) colleges, as well as artisan development. Thirdly, the Department would  establish, develop and expand new institutional-type community colleges primarily to promote education and training opportunities for those young people who could not access the universities and TVET colleges so that they were afforded an opportunity to attain a skill that would  be useful in the economy of the country. Fourthly, the Department would  improve the capacity of the system through infrastructure development for technical and vocational education and training. This was possible through the emphasis of the aim of controlling and expanding the present number of campuses and requisite facilities to enable training in important and scarce fields, such as technicians and artisans. Fifthly, the Department would  maintain good stakeholder relations in support of an effectual post-school education and training. It would  seek cooperation from industry with the aim of controlling the processes of curriculum redesign as well as the packaging of programmes that were offered in the system, so that they were relevant to both the industry and the needs of the communities, with the view of serving the entire country. Lastly the Department would  ensure good corporate governance including effectual resource management within it and its entities. The Department of Higher Education and Training was the department with the highest number of entities reporting to it in the form of universities, colleges, sector education and training authorities, and quality councils. The Department should use such a position in order to advance the goals of all post-school education and training, and ensure that in the process it improved efficiencies and effectiveness in achieving the strategic goals.

The focus in the next five years would be to expand access to education and training for youth and adults substantially, regardless of whether they had completed school or not. Further, the Department would  improve the alignment between universities, TVET colleges, SETAs, the South African Qualification Authority (SAQA) and quality councils, in an effort to improve student and learned mobility across institutions and qualifications. The Department was working hard at controlling the alignment. There was adequate articulation within and across the entire system in so far as areas of provision were concerned, as well as ensuring differentiation within the system. The capacity for development in areas of need, with a view of developing human resource capacity for the country, would  benefit the economy in general. In addition, the Department would  expand the availability of opportunities for workplace training for students in colleges and universities and to expand other forms of workplace training, such as learnerships and apprenticeships.

The Department would  also ensure that the post-school education and training system prioritised funding of the marginalised, enabling them to access post-school institutions and fulfil dreams of careers thought to be unrealisable. There were quite a number of interventions through foundations, groups, targeted bursaries, the national skills fund, as well as other sources of funding. This was an area where everyone’s contribution was welcome in order to cover everyone in need in respect of accessing opportunities to further the society. The Department would  further develop post-graduate studies to ensure the expansion of the academic profession and development of high level knowledge and skills. Provision based on open learning principles would be diversified to improve learning opportunities across the post-school education and training sector by expanding and strengthening the post-distance educational landscape. Not everyone would like to be in a contact situation, as some people would  like to use facilities such as self-education. This was an area where a lot of research and resources had been invested in order to get it right as one of the quality areas for providing education and training.

The Department would  integrate disability into the broader policy arena by introducing a national policy to guide education and training institutions in the post-school domain. This was one of the critical areas where a sizeable amount of resources had been put in ensuring that it was addressed across the institutions. Further, Recognition of Prior Learning (RPL) would be integrated into the post-school education and training system.

Financial Information

The Director General said it was important to note that the financial resources available at the moment might not be quite sufficient to addressing what the Department thought should be attended to. It required that what was available at the Department’s disposal needed to be utilised and managed sufficiently so that the impact could be optimised and showed value for money on the resources that were being deployed across the system.

Mr Theuns Tredoux, Chief Financial Officer, DHET, informed the Committee that the financial information would comprise a look at the Department’s structure, budget and expenditure trends, a summary of the allocations per programme and economic classifications that covered key expenditure items, and the key budget pressures that were facing the Department’s financial performance.

The budget had a direct charge which was the skills levy revenue collected by the South African Revenue Services (SARS) for the SETAs and National Skills Fund (NSF), which was not regarded as direct fund but a direct commitment from the National Revenue Fund.

For the 2015 MTEF, the Department’s budget (excluding direct charges) increased at an annual average rate of 5.9%, from R39 billion in 2014/15, to R43 billion in 2017/18, which was basically coverage for inflation and not any real growth. The amount for allocation in 2015/16 was R41.8 billion, which was an increase of R2.9 billion, which was a nominal increase of 7.3% on the current 2014/15 allocation, excluding direct charges. The direct charges, the skills levies for SETAs and NSF, increased at an annual average rate of 9.6%, from R13.2 billion in 2014/15 to R17.4 billion in 2017/18. The Department’s budget was dominated by university education, which represented 78.5% of the budget in 2015/16, which was mainly as a result of the subsidies for universities. As a result, transfer payments also dominated the budget in terms of the economic classification of expenditure.

Normal departmental services (excluding university transfers, transfers to public entities, TVET colleges, adult education and training centres, other organisations and earmarked funds) represented 18.67% of the budget.

Compensation of employees amounted to R7 308.2 million (17.5%) for 2015/16. The remaining funds for normal operations amounted to R505.3 million in 2015/16 which represented 1.21% of the budget to manage the Department and all its entities.

The Department received an additional allocation of R15.9 Billion over the MTEF which was linked to the function shift of TVET and adult education training. Over three years the Department had received an additional R15.9 billion. This included R7 billion from Provincial Education linked to the provincial equitable share for the TVET and the Adult Education and Training (AET) function shift managed previously with the provincial departments, and R8.9 billion from the TVET conditional grants to provincial government for the TVET colleges function shift from provincial to national -- R2.8 billion in 2015/16, R 3 billion in 2016/17 and R3.1 billion in 2017/18.

Mr Tredoux referred to the key budget pressures facing the Department. While it acknowledged the current fiscal constraints of the Government, the numerous challenges in the Department had a serious impact on its service delivery requirements. There was pressure in terms of growth and expansion and it was very difficult for the Department to meet all of these requirements. As indicated in previous meetings, the Committee needed to look at the funding of the TVET sector specifically in relation to the subsidisation, if it was compared to the current subsidisation of universities. Infrastructure development at the universities had a dedicated grant as opposed to the lack of a similar grant in the TVET sector. Limitations were placed on Departmental operations due to the capping of compensation of employees and the inability to roll out the new staff establishment and regional presence. Institutional monitoring and evaluation was limited to most critical areas. As previously discussed, monitoring and evaluation of the institutions would require additional funding as it was a critical role.

At the moment resources were very limited and linked to the reports submitted by all the different institutions, while monitoring visits to those institutions were very limited. An illustration was the reliance on the National Skills Fund (NSF) project support, such as the funding of the activities of the National Artisan Moderation Body (NAMB) that started three years ago, in 2012/13. At that stage the fiscal framework was such that it was expected by 2015/16, through voted funds, the NAMB would be funded. Unfortunately, that was currently not possible and the Department still relied on the NSF funding in order to ensure that NAMB was operational. An immediate pressure was the management of the TVET and AET function shift. The Department had believed that it would receive additional funding that would allow it to manage the process. However, no additional funding had been provided. There were serious cost implications in terms of the examination services.

With regard to financial performance, the Department had managed to remain within its budget since being in operation from 1 April 2010. The Department had under-spent voted funds in the last four years, and the under-spent amount for 2013/14 was R1 931 000. The under-spent amounts were committed for specific goods or services, including outstanding claims for examiners and moderators. Unfortunately under-spent funds could not be rolled over. To date the Department had received unqualified audits.

Administration

Ms Lulama Mbobo, Deputy Director General, DHET, said the purpose of the administration programme was to provide strategic leadership, management and support services to the entire Department. There were three strategic objectives within the five-year period. The first was to ensure effective human resource management within the Department by filling 90% of vacant funded positions and the implementation of an effective performance management system under targets set by the Department of Public Service and Administration. Currently the Department faced only an 8% vacancy rate. It was clear that the Department had surpassed the target in the previous financial year. However considering factors of natural attrition, the Department wanted to remain at 10% vacancy rate. The other performance indicator was that all disciplinary cases had to be resolved within 90 days. The target was achievable considering the internal dispute resolution process within the Department. The last performance indicator was that the average lead time from a recruitment requisition being received from the respective branch until the appointment recommendation by the selection committees was made, should be 180 days. This was also a target set through the Department of Public Service and Administration.

The second strategic objective dealt with effective financial management. The Department had to ensure effective financial management through the application of good financial management systems, including management accounting, financial accounting and supply chain management in line with the requirements of the Public Finance Management Act. There were two performance indicators for this strategic objective. Firstly where the Auditor General had made findings or management comments, the Department intended resolving tem 100% over the five year period. The second performance indicator required the Department to pay any invoice by a creditor within 30 days.

The third objective was to improve efficiency through the development of approved annual information communication technology (ICT) procurement plans for the implementation of the necessary infrastructure and systems. The Department was in the process of analysing the approved ICT procurement plans for the 2015/16 financial year.

Human Resource Development, Planning and Monitoring Coordination

Mr Firoz Patel, Deputy Director General said the purpose of the Human Resource Development, Planning and Monitoring Coordination programme was to provide strategic direction in the development, implementation and monitoring of departmental policies and Human Resource Development (HRD) strategy for South Africa.

There were four strategic objectives in this programme. The first strategic objective was to develop new post-school education and policies. The target for this objective was for the policy and guidelines for recognition of Prior Learning (PRL) to be developed and gazetted, the policy framework on disability to be developed, the policy framework on social inclusion to be published and policy guidelines on articulation to be developed and gazetted.

The second strategic objective was to develop a Sectoral Monitoring and Evaluation Framework for effective implementation of oversight of the post school education and training (PSET) system and produce annual monitoring reports by 31 March 2020.

The third strategic objective was to develop and implement three teaching and learning support plans aimed at improving access to quality teaching and learning in the PSET system by 31 March 2020. For 2015 the Department aimed at ensuring that there were two teaching and learning support plans for PSET approved. A flexible model of learning delivery would be conceptualised and an implementation strategy developed and approved, and the prototype of a learning management system for an open learning system would be developed and approved.

The fourth strategic objective was to develop management information systems for colleges, SETAs and private post-school institutions by 31 March 2020. The performance indicators would be the development and approval of the information and management systems. Under this category was the development of the “i Wil” registration system for learners seeking work-integrated learning opportunities. The second performance indicator was the publishing of statistical reports. Two reports were published -- the annual report on skills supply and demand, and the annual post-school statistical report. This year the Department had published a list of occupations in high demand and the annual report on skills supply and demand would therefore be a full report.

University Education

Ms Diane Parker, the Acting Deputy Director General in charge of the University Education Branch, said the purpose of the branch was to develop and coordinate policy and regulatory frameworks for an effective and efficient university education system. The branch provided financial support to universities, the National Student Financial Aid Scheme (NSFAS) and national institutes for higher education. The main focus of the branch was to support the development and growth of the system as described by the Director General. From that perspective, the branch needed strong oversight on the findings used in the system.

There are six strategic objectives for the five years, and it was noticeable that one of the main strategic objectives was linked to the oversight and monitoring role. The first objective was to develop 13 new and review six policies/regulations/pieces of legislation to ensure sound provision of university education by 31 March 2020. This was linked to the White Paper processes in terms of the focus of the Department. In 2015/16, the two specific pieces were linked firstly to a new policy on the provision of student housing at South African public universities. This had already been published as a draft policy and would be finalised this year. The second piece was linked to regulating Private Higher Education Institutions (PHEIs), and this was around monitoring PHEIs specifically on the system. This piece had also been previously drafted, public comments had been received, and itwould be finalised during the current financial year. The third piece was the Revised Higher Education Act which the Department intended to submit to the legislative process this year.

The second strategic objective was to develop two integrated plans that would enable collaboration between university education and other PSET sectors by March 2020. This was a five-year objective and there were no specific outputs for 2015/16, as the Department would be in the development phase during this period.

The third objective was to monitor and evaluate the higher education sector. This was linked to ensuring that the funding provided for institutions was effectively utilised, and that any problems in the system could be identified timeously. The Department looked at providing 13 annual oversight reports each year through the five-year period. However in 2015/16, there would be 12 reports. One of the reports on the teaching learning capacity improvement programme would not be done this year because that programme had been developed only in 2015/16.

The fourth strategic objective was developing and implementing a Teaching Learning Development Capacity Improvement Programme (TLDCP) covering five plans to improve the capacity of universities in terms of teaching and research by March 2020. The plans would be in the fields of early childhood educator development, primary teacher education, TVET college lecturer education, community college lecturer education and special needs teacher education. This programme would be developed within a budget support programme from the European Union.

The fifth strategic objective was to provide support to current and prospective students in higher education institutions by March 2020 through the development and implementation of a concise capacity development strategy and programme, as well as the Central Applications Services. In 2015/16, the Department would look at developing the student leadership capacity development strategy and programme which should be implemented by October 2015. In addition, the Enterprise Architecture for Central Applications Services would be developed and approved by March 2016.

The sixth strategic objective was to produce and publish a first-time-entering undergraduate cohort analysis report annually. This was an important issue, because it would enable the Department to understand the reporting system. The first analysis would be the 2005 to 2008 first-time-entering undergraduate cohort analysis report, to be published on the Department’s website by March 2016. The rationale behind the 2005 to 2008 period was the need for long retrieval of data in order to understand the cohort.

The last strategic objective was to facilitate the stakeholder network through the establishment of a BRICS think tank and participative academic forum. The Minister of Higher Education and Training had been given the responsibility for the think tank process, and the Department would be producing a report on the same annually.

In terms of system targets, a number of system targets had been identified. There targets would be monitored by the Department in the monitoring report for the system, and here the Department had used the number of students enrolled in public higher education studies at the universities, success rates at universities, graduates in engineering sciences from universities, graduates in initial teacher education in universities, proportion of universities meeting standards of good governance and research masters graduates. Post graduate monitoring would involve monitoring PhD and research Masters graduates.

Expected outcomes would also be monitored. The Department would monitor the universities offering accredited TVET college qualifications, the number of university academic staff with PhDs -- which was expected to increase to 42% in 2015/16 -- and the number of additional first-time black and women entrants to the academic workforce, which was linked to the Staff in South African Universities Programme. Other areas being monitored were the number of first year students in foundation programmes, the number of eligible university students obtaining financial aid and the graduates in human health and animal health sciences from universities.

 

Vocational and Continuing Educational and Training

Dr Bheki Mahlobo, Acting Director General in charge of Vocational and Continuing Education and Training said the purpose of the branch was to plan, develop, monitor, maintain and evaluate national policy, programmes, assessment practices and systems for vocational and continuing education and training, including for TVET colleges and post-literacy adult education and training.

The branch had six strategic objectives. The first objective was to develop six and review five legislative and guiding frameworks aimed at steering the Vocational and Continuing Education and Training sector by 31 March 2020. It was important to understand that the branch was inheriting functions from provinces in both adult higher education institutions and colleges, and as a result the Department had to realign its objectives to indicate that it was fully responsible for these functions, and all the branches’ guidelines and frameworks must align to this function. The targets were governance and policies for TVET colleges, staffing norms and standards for Continuing Education and Training Colleges (CETCs), and conduct policy for National Senior Certificate for Adults (NASCA) which was a new qualification for adults. The other target area was the guidelines for standardised implementation of Occupational Programmes which required a great deal of focus in order to increase the systems in place for growth of occupational progress. Further targets were the development of policy directives for TVET College ICT systems and governance policies for community colleges. With regard to revision, it was the TVET colleges’ monitoring, evaluation and support model that needed to be revised so that it was also alive to the exclusive nature of competence of the Department for these functions.

The second objective was to standardise the level of governance across Vocational and Continuing Educational and Training (VCET) institutions by 31 March 2020 and to monitor and take appropriate action when deficiencies were detected. By 2015/16 at least two monitoring and evaluation reports on VCET would be produced and approved where deficiencies were detected.

The third strategic objective was to develop and implement six teaching and learning support plans for VCET institutions by 31 March 2020. The teaching and learning support plans were actually focused on improving the quality of output, to support lecturers to deliver better, and to focus on the students’ capacity to cope with learning at TVET colleges. In 2015/16, the branch would develop the annual teaching and learning plan and a protocol on the secondment of sector specialists to work in TVET colleges and lecturers exposed to the work place, would be developed and approved.

The fourth strategic objective was to improve success in programmes offered at VCET institutions by developing and implementing appropriate student support plans by 31 March 2020. The target for 2015/16 was to develop and approve one annual student support service plan for VCET.

The fifth strategic objective was to ensure a geographic spread of VCET institutions through the establishment of 21 additional sites of delivery for VCET institutions, including 12 TVET campuses and nine CETCs by 31 March 2020. In the Director General’s explanation on building capacity, the capacity to be looked at was the capacity for the lecturers to deliver and the capacity to increase institutions to cater for the increase in enrolment. The target was therefore the development of a macro infrastructure and maintenance plan for CETCs and establishing six TVET college campuses as part of building capacity for research institutions.

The last strategic objective was to establish a coordinating structure for support and research in the VCET sector by 31 March 2020. The target for this objective was to develop and approve a strategy on strategic partnerships with key stakeholders.

The percentage of public TVET college examinations centres conducting national examinations and assessment in compliance with national policy was targeted to increase to 100 % in 2015/16. The branch was also using the performance indicator of a TVET throughput rate of 10%, which was a new indicator. The other indicator in the 2015/16 year was the ability of public TVET colleges to accommodate 1 000 students. A questionnaire had been circulated to find out which colleges had old accommodation structures and the number of beds. The research would form the baseline of a performance indicator which would progressively be built till 2020. The number of funded NC(V) Level 4 engineering students obtaining qualification within the stipulated time was also a new indicator, set at 10% in the year 2015/16. A further new indicator was the number of TVET institutions that were compliant to governance standards by 2019, and the percentage increase every year thereafter. The branch understood that institutions were not at the same level in terms of governance capabilities. In 2015/16, the branch was targeting an increase of 20%, and a 100% increase in the following years. The branch also targeted to start the number of TVET lecturers undergoing specified hours of work in their industry for specified periods every two years from 2019, at 6% in the year 2015/16 and increase the number thereafter.  

Skills and Development

Mr Zukile Mvalo, Acting Deputy Director General, Skills Development, said the purpose of the skills development programme was to promote and monitor the national skills development strategy, and develop a skills development policy and regulatory framework for an effective skills development system.

The first strategic objective was to steer and support skills development institutions to implement the National Skills Development Strategy through the development of four new and six revised policies including legislation, regulation and guidelines by 31 March 2020. The performance indicator was to develop and approve new skills development steering mechanisms. The target in 2015/16 was to develop and approve a workplace-based learning policy by the Director General in December 2015. The other targets included developing a governance charter for SETAs, approved by March 2016, tabling an occupational team policy recommendation by December 2015, and developing and approving SETAs’ governance standards. The other performance indicator was to revise skills development steering mechanisms, to be achieved by the Minister reviewing and approving both the SETA landscape and National Skills Development Strategy by March 2016.

The second strategic objective was to standardise the level of governance across SETAs by 31 March 2020, to monitor and compile annual/quarterly reports and to take appropriate action where deficiencies were detected. The key performance indicator was to produce and approve four SETA monitoring reports on skills development.

The third strategic objective was to effectively manage artisan development assessment services, inclusive of Recognition of Prior Learning (RP)L in order to produce 24 000 qualified artisans per annum by 31 March 2020. The performance indicators were first, to allow the average lead time from trade test applications received until trade test conducted, to be completed within 100 days. The second indicator would be increasing the number of new artisans registered nationally per annum to 29 750. The third indicator was to allow 20 110 new artisans to be qualified per annum. The fourth indicator was to create a 50 % pass trade test rate for national artisan learners.

The fourth strategic objective was to enhance the national information system in order to improve the collation of artisan information and skills development levy information for monitoring and evaluation, as well as reporting, by 31 March 2018. The performance indicator was to design and approve a single national artisan development information management system.

The expected outcome to be monitored and reported by the programme was, firstly, by creating a target of 45 000 work-based learning opportunities from a baseline of 49 678. Secondly, to increase the national artisan learners’ trade test pass rate to 50%, from a baseline of 45%. Thirdly, to increase the proportion of national artisan learners employed or self-employed to 67%, from 65%. Lastly, to achieve a 100% proportion of SETAs meeting standards of good governance.

Discussion

Administration

Ms S Mchunu (ANC) acknowledged that the goals of the NDP found expression in the Strategic Plan and the APP. It had been reflected that positions for three acting Deputy Director Generals (DDGs) in university education and research programmes had not yet been filled. The DDG for University Education has held the position in an acting capacity for over three years, but in terms of Section 3.5.3 of the Public Service Regulations, an employee should not act in a higher vacant post for an uninterrupted period exceeding 12 months. The Department was asked when it was intending to fill these vacant posts.

Dr B Bozzoli (DA) noted that a lot of reports, strategies and policies were being expected of the Department in the current financial year and the next five years. The Department was asked how it would cope with all the demands to produce these reports, strategies and policies, which seemed like a huge administrative burden for a Department that admitted it was short of funds and presumably manpower.

Mr Y Cassim (DA) asked four questions. Firstly, had the acting DDGs the DDG for University held their positions for a period of more than 12 months, noting the limit set by the Public Service Regulations? Secondly, had any timelines been set within the APP with regard to the reporting on the forensic audit, as announced by the Minister? Thirdly, had any funds been received for the policy on student housing, since the policy had previously been delayed due to a lack of funds although, according to the strategic plan, the policy was to be finalised by September 2015. Lastly, the Strategic Plan stated that the Higher Education Amendment Bill would be tabled before Parliament in March 2015, but it was yet to be tabled. The Department was asked when the tabling of the Bill was expected.

Deputy Minister Mr Manana conceded that the issue of vacancies in the DDG position was better answered by him, since it involved top management. He agreed that the period of 12 months had been exceeded. However, the Ministry had appeared before the Committee to explain the difficulties experienced in filling the vacancies. The Department had conducted interviews for the DDG for University Education, and would be carrying out the same for the DDG, Skills Development. By the end of April 2015, all the vacant acting positions would be filled, since the matter was being prioritised. The Department of Public Service and Administration (DPSA) was aware and had been engaged.

The Director General said the Committee should acknowledge the ground-breaking medical research of Stellenbosch University.  It showed the capacity of the South African system to come up with that kind of research and set the pace for the entire world. This was an outcome that was the result of intensive research. The development of research in South African universities should be acknowledged.  

Mr Patel said the time frame for the Higher Education Bill may have been planned, but the Department had come across a particular hurdle in the requirement to consult, and the decision making could not be rushed through. There had been quite a protracted process with consultation with stakeholders on some amendments. The report on the recommendations had been signed the previous day and forwarded to the Director General. The Department still intended to meet the timeframe for submission to Parliament, because it would request the Minister to assist in expediting and fast tracking the process with the Head of Parliamentary Business. The procedure was that the Department would go out on its own to get public opinion and thereafter the Minister would table the Bill before the Cabinet.

In response to Dr Bozzoli’s question on delivery, despite an overwhelming workload and under-funding, the Department’s work was based on policy and framework. In the previous years, the Department had met its targets in producing policies, regulations and plans. Unfortunately, the Human Resource department was not involved in the procurement processes. A number of these policies were in draft form and had now been concluded.

Ms Parker said many of these policies had been gazetted for public comment and were in the process of being finalised. In terms of the monitoring and evaluation function, this was the work of the Department and it was confident that it could carry out this function.

In response to Mr Cassim’s question on student housing policy, the Director General said there had been a substantial allocation of around R8 billion for infrastructure in the MTEF, and the Department had worked out different ways which it would be engaging with potential funders. The Department was also in the process of organising a symposium to look at how and where funds could be sourced for student housing.

Human Resource Development, Planning and Monitoring Coordination

Mr E Siwela (ANC) quoted the Minister, as saying during the strategic planning meeting in August 2014 that one of the Department’s priorities in 2015/16 would be to develop a national framework for post-school education and training which would serve as an implementation plan for the White Paper on education and training. Mr Siwela inquired why the the APP was seemingly silent on this priority.

Ms M Nkandimeng (ANC) asked when the Higher Education Bill would be tabled in Parliament, since the Strategic Plan stated that it would be tabled by March 2015 and finalised during 2015/16.

The Chairperson noted that the Department had international agreements that were to end in 2014 The one with Cuba was ending in 2015 and the one with Rwanda was ending in 2014. Were there any plans for renewing these agreements, and were there any other international agreements catered for in the strategic plans? The Department had reported that there was a plan to establish a professional body, similar to the one for college lecturers, and he asked where such a plan was accommodated in the strategic plan.

Mr C Kekana (ANC) asked about the position of the collaboration between the Department and Department of Home Affairs to issue special permits to persons with scarce skills, to enable them come and teach in South Africa. Secondly, the Stellenbosch University had been congratulated for its ground breaking research, but it should be noted that the ground breaking research involved only the medical industry. What was the position of other disciplines, such as engineering? When the TVET institutions were set up in the provinces, administrations would have to be beefed up, principals would have to be appointed, and training of financial officers administrative and financial matters would be needed so that they were ready to run. What was the progress of this process?

The Chairperson asked the Director General to comment on the shifting of the agricultural colleges.

The Director General, in response, referred to the implementation plan of the White Paper, which was ongoing. The first step was to work out the terms of reference in respect to implementing the goals of the White Paper, after which the Department would put out an advert asking for an expression of interest to serve in the exercise, highlighting the combination of skills required in the exercise, such as actuarial scientists and planners. The Department had received very interesting responses and was scrutinising these expressions of interest. The Department was also in the process of appointing a project manager to run the exercise. In respect to agricultural colleges, there was a team working with the government departments to work out the process of transferring these colleges to the Department of Higher Education and Training. With respect to nursing colleges, the Department was engaging with the Department of Health on how best to collaborate in respect of training in this area.

Ms Parker expanded on the national plan for post-school education and training, which was one of the integrated plans mentioned in the strategic plan. The final plan would not be developed in 2015/16 but in the next year. With regard to the ground breaking research being only in medicine, this was not the correct position, since there had been research in other fields such as mining, engineering, nano-sciences and in the system as a whole, where there was some cutting edge research that was being developed by the Department.

Dr Bheki Mahlobo, Deputy Director General, DHET, in response to the question about creating a structure for TVET, said the Department had started the process and had engaged with the current sectors. However, in the experience of the Department, in an APP one did not include an indicator that was contingent to other things outside the control of the Department. The Department had to sort out the norms and standards in terms of the practice in a TVET college. Secondly, the TVET environment was not a monolithic environment like the other institutions, because the lecturers were specialised in different skills. Therefore, when creating a council structure, the TVET must accommodate the diverse nature of staff in the TVET colleges. Thirdly, it was gradually becoming a complexity to keep establishing public entities and this function of professionalising the TVET college environment could easily be housed in the Department.

Mr Patel, in response to the question about the tabling of the Higher Education Bill, said that the Department had planned to table it in March 2015. The Annual Performance Plan process began around August-September 2014, but the Department had come across some blockages that needed consultation and arbitration. He acknowledged that there were less than two weeks left, and if the Minister were to get public comments on the Bill then there would be a delay. The Department would try to sort out the delay and would try to fast track it through the Leader of Government Business.

With regard to international agreements, specifically with Rwanda, there was a draft agreement being shared with the Rwandese. All international agreements were assessed and reviewed when they came up for renewal and the Department was busy with the pilots. There were quite a number of international agreements and the Department could provide a list.  In response to Mr Kekana, Home Affairs under their own legislation prepared the critical skills list, although the DHET did not view the skills as critical, categories of work permits were required. Home Affairs, in collaboration with the Department, had published a list which included maths and science skills and thereafter it was between the prospective employer and Home Affairs to expedite the issuing of work permits.

University Education

Dr Bozzoli asked for clarification on how the Institute of Humanities targets were set, what targets had been set and what targets had been achieved last year, since the APP was not clear on this. Secondly, it was evident that the strategic plan sought to increase the number of students, but there was also a need to increase the number of teachers to enable efficient services. However, but it had come to light through the Department of Basic Education that the quality of teacher education left a lot to be desired. What guarantee was set by the Department that the expansion of teacher education would not perpetuate the mediocrity in the expansion? Lastly the Department’s function was to regulate -- what safeguards were in place to prevent over-regulation, noting that universities all over the world were complaining of managerial dominance to the extent that the University of Denmark had had a sit-in protest over the issue. Although that sounded like the university’s fault, it was connected to the government, which expected a lot of administrative feedback from universities and made them deliver targets which were the responsibility of the government. Dr Bozzoli asked whether the Department was concerned about managerial dominance by the Government, since it seemed like the expectations from its policies converted universities into Government departments. Managerialist dominance by the Department would make the universities operate like bureaucracies, rather than teaching institutions. This led to resentment by the teaching staff that had to fill in numerous forms in order to satisfy the demands of bureaucracy, instead of actually teaching.

Ms Mchunu noted that the purpose of the university education branch was to provide financial support to universities, NSFAS and national institutes for higher education. According to her knowledge the operation of the National Institute of Higher Education ceased to exist in 31 December 2014 and the administrators were finalising the legal closure by 31 March 2015. She requested clarity on the nature of financial support, as highlighted under the purpose of the university education branch under the APP. Lastly, she inquired whether the Department was in a position to meet the deadline on the implementation of the national digital library.

Mr Cassim was concerned that some specific promises, whether political or not, were made and were not followed through or referred to in the APP. In President Jacob Zuma’s State of the Nation Address last year, he spoke about the first intake of medical students at the University of Limpopo. There was no time frame, since the intake was supposed to happen in January 2015, but this had not been achieved. Secondly, in last year’s APP, the NASFAS pilot project had specific roll out plans whereby in 2015, 70% of institutions would come out of the pilot project and 100% in 2016. However the APP stated that the pilot projects would be phased once challenges had been addressed. A lot of money had been invested and there were no timelines in place. What were the challenges being faced and were these challenges related to the influx of staff in the NASFAS institutes, and when would a timeline be set?

The throughput rate at universities was targeted at 30%, although this was a new indicator. Mr Cassim asked for the trends and clarity on what informed the trends of the throughput rate that had existed in that sector. Further, Mr Cassim requested clarity on the targets around students being assisted by financial aid, because there was some contradiction -- the Strategic Plan stated that 205 000 students were eligible for funding, but did not differentiate between university students and TVET students. However, in the APP there was a differentiation, where there were a number of university students and 200 000 TVET students, although that might be an error, particularly on the 205 000 TVET students. There was a target of over 1 000 000 head count enrolments, and then there was a target of financing 205 000 students. Did the Department believe that this would allow for previously disadvantaged South Africans to access the economy in the long term and access education in the short term?

Mr Siwela said that there had been an outcry about the shortage of teachers and there were complaints of teachers coming out of the universities not being properly trained for work. This had resulted in calls for the reinstatement of colleges to train teachers, and it was expected the Department should have addressed this in the APP. Secondly, there had been a meeting between the task team and the reference groups on the progress in implementing the recommendations of the Ministerial Task Team review on the funding of universities. The chairperson of the task team had reported that the Minister had made R10 million available to establish a monitoring and evaluation unit for the Department. Was this R10 million additional or new money from the National Treasury, and if not, had reprioritisation been done and if so, from which programmes.

Ms Nkadimeng quoted the President, in the State of the Nation Address, as having said that in January 2015 there would be a new intake in the new medical campus of the University of Limpopo, and she asked why this priority had not been achieved.

Mr Kekana reverted to the answer by Ms Parker, and stated that the research was not really ground- breaking and it was mostly for international, rather than national, purposes. Secondly there was the issue of export of raw materials, and the engineering profession not adding any value to these materials while they were in South Africa. If there was ground breaking research, then the raw materials, such as in mining, would not be exported but utilised in South Africa, although some value needed to be added through research.

The Chairperson asked for information regarding the possibility of clustering SETAs and whether there was any feedback on the progress of attaching SETAs to colleges.

The Director General clarified that the process was not really about clustering SETAs, but involved the process of reviewing the entire landscape. Investigations and studies would have to work out and advise the executive as to the best landscape that would allow SETAs to administer their affairs efficiently and effectively. The process was still ongoing and the landscape was currently being reviewed. It was difficult to determine the outcome of the investigation at this stage.

The APP was not supposed to cover all priorities, as it mainly outlined the framework in respect of the annual performance plan, which would indicate some kind of high level targets and activities, but was not the totality of what the system was about and incorporating the entire system and sector.

With regard to the risk of over-regulation, the Department’s framework took the approach of discussing matters quite intensely with all present structures in each of the sectors including the process of public involvement, over and above the requirement of gazetting and involving other stakeholders. The Department was quite mindful of not over-regulating, but only regulated to the extent that it would assist the system to be able to perform better, after due consideration and engagement. Therefore the question of elaborate engagement always preceded whatever policy and regulation of the Department was under consideration.

With respect to the University of Limpopo, the medical campus was under way but there were certain processes that had to be completed, such as accreditation. The University of Limpopo had already rolled out and submitted the application for accreditation. In the first instance, the University had sought approval from the Professional Councils of South Africa, which had given the go ahead, as well as the Council of Higher Education (CHE). CHE had raised a number of issues which needed to be considered and had impacted on the offering of programmes, which would take place in 2016 instead of 2015. This was evidence of the process of elaborate engagement, where the Department honoured all the processes that had to be undertaken.

There would be 205 000 students benefiting from NASFAS support and 200 000 students who would benefit from TVET Colleges. These were students who ordinarily would not have had access to higher education without the help of NASFAS, and therefore it had a huge impact. Acknowledging that as huge as it was, it would not be enough since every student who had not benefited from funding was a worry and the Department would have to think of various forms of engagement mechanisms in collaboration with various structures in the institutions on how these areas of shortfall could be attended to. The Department, together with Wits University and Tshwane University of Technology (TUT) had been able to cover over 20 000 students in this current academic year, and there had been a shortfall of about 2 000 students. The Department had to engage with the TUT on addressing this shortfall. The question of proportionality and the extent to which NASFAS would benefit more than 205 000 students was not a matter that the Department could overlook. Instead the Department would look at how the shortfalls could be addressed through collective engagement.

Ms Parker, in response to the issue of the financial support by the National Institute for Higher Education (NIHE), the two institutes in Western Cape and Mpumalanga had been disestablished. There was also the National Institute of Humanities and Social Sciences, which was being supported through the Department. In terms of the funding of the Humanities Institute, the Department had baseline funding that provided the Institute with operational funds. The Institute sets its own targets and has its own strategic plan and APP which are sent to the Department and are evaluated, published, and finalised in the same way as other institution’s APPs. The Institute had found funding for its projects through various sources, while the Department was funding specifically the operating funds provided in the budget. The NSF was supporting many of the programmes of the Humanities Institute, and these programmes were developed in consultation with the system.

With regard to the issue of teacher education, expansion and quality, the Committee would be aware that the expansion of institutes had been taking place in terms of numbers, and the quality issue had been on the agenda for a number of years. The first quality issue had been developing standards for teacher education, which had been implemented. In terms of the integrated teacher education plan, the Department was in the process of looking at improving teaching aspects, developing a teaching practice platform and developing teaching schools and professional practice schools. This was one of the key areas in improving the quality of the output of teachers. Some research had been undertaken, specifically at the University of Johannesburg, around the structure, rules and standards of teaching schools. The Department, together with the Department of Basic Education, was in the process of examining the research to look at setting up teaching schools. Currently the University of Johannesburg had a dedicated teaching school at its Soweto campus, and there was also a dedicated teaching school at the University of Mpumalanga.

The issue about the quantity and size of teacher education had mostly been dealt with. The current dealings were in the shape and kind of teachers produced. It was clear to the Department that the foundation of teacher programmes needed more quality teachers coming out of them, and teaching in various languages. This had been the focus of the Department in the past years. In going forward, the Department needed to look at other facts, and that was the rationale behind the Teaching Norms Capacity Support Paper, which was about understanding the shape and how to develop the capacity for TVET college lectures, primary school teachers etc.

In addition to what the Director General had said about overregulation, an assessment of all specific policies revealed their development from specific research programmes in the system, or issues arising in the system. For example, one of the policies was the internationalisation of higher education. The Department had been approached in response to the need for a national policy on the internationalisation of higher education, since it was operating in an ad hoc manner.

The national digital library process was not referred to directly in the APP because the Department was in the process of developing a model for its implementation. The founding of this would be dealt with in terms of the funding formula.

The Department would work on the dialogue that had been initiated, and this would lead to review of the NSFAS Act. It had not been reflected in the APP because there was quite a long process before the Department implemented the review.

The funding review was one of the policies that would come up in the next review year. The R10 million for the Sector Monitoring Evaluation Programme had already been identified, and was in the Ministerial statement for university funding. There was an allowance that had been specifically indicated for the programme. The funding was intended to ensure the Department monitored effectively the use of teaching development, infrastructure, training, research and development funds. and that the system was publicly accountable for these specific funds. The R10 million therefore had been earmarked to allow the Department to develop the Sector Monitoring Evaluation Programme.

Ms Parker thanked Mr Kekana for his comments on the efficiency of cross-discipline ground-breaking research, but acknowledged that it was subject to debate. The Department was being responsive and wanted to develop a further cutting edge research system, but it was presently in the current university systems and it would be difficult to provide further examples to the Committee.

Mr Cassim followed up on his question on the trends of the throughput rate and the rolling out of the NSFAS pilot project.

Ms Parker in response to the rolling out of the NSFAS pilot project, said the NSFAS had its APP and had indicated that it looked towards rolling out the project and would bring further institutions on board. The whole point of carrying out a pilot project was to check and evaluate systems and to ensure that they were effective. In the first year of the pilot, a decision had been made by NSFAS board that it would not expand the pilot to new institutions in 2015 because it needed to make sure all the systems worked effectively, and the Department had worked through every single issue that had arisen. NSFAS in their own APP would look at how they would roll out the project in the future. According to NSFAS, at the end of the 2015/16 financial year, they would be in a position to roll out the pilot to further institutions.

The Department had begun to carry out some cohort studies from 2004 regarding the throughput rate. However, these cohort studies had never been published in the system. Therefore national cohort studies for 2004, 2005 and 2006 had already been carried out and the Department would be updating the studies from 2008 to the current year. The Department would thereafter look at the analysis in the entire system to understand the trends. The target in the APP referred to the cohort analysis in place, but it included the system as a whole, which included the distance learning and the contact institutions. There was a big difference between the distance learning institutions (mainly UNISA) and contact institutions. The difference was partly due to the amount of data required to deal with the cohort for UNISA. For example, a student doing a three or four year programme through distance education part-time, it was possible to take ten years and the final throughput could be seen ten years after registration. If the throughput rate was divided between the contact institutions and the distance learning institutions, the contact institutions would have a higher throughput. Further, an analysis of specific programmes showed that the throughput varied. The rationale behind the throughput analysis was to allow the Department to publish publicly and secondly, through the data analysis programme, to identify where the high risk areas were to enable the Department to work with universities to deal with the high risk areas, specifically utilising the identified development funds.

Mr Mvalo emphasised that a student-centred mode adhered to the Department’s approach, and was the way to go. In terms of minimisation of risk, that was the mode that had been proven to be productive. This point had been emphasised to NSFAS, so that it could become efficient, effective and responsive. There was no doubt what the Department would want to see as a future dispensation in respect to making the funds available to the students in the system.

Vocational and Continuing Education and Training

Dr Bozzoli asked about the APP for the National Institute of Humanities Studies, since it was a new entity. There had been a change in orientation with regard to TVETs, where the Department was not a policy maker, but a manager. There was no indication that the Department had measured and analysed the number of lecturers needed in the TVET institutions in the next five years in the various areas, and whether these lecturers would be awarded bursaries. Secondly , there was the very disappointing figure that even though the President during the State of the Nation Address last year had promised that there would be 12 new TVETs, this figure had been cut down to six. The Department was requested to furnish the names of the six which were going to be completed and the names of those not going to be completed. Thirdly, the planned number of new artisans was an ambitious figure, which was welcome. However, according to the APP, the pass rate for the tests by the artisan was 50%. The Department should comment on the disjuncture between the planned number of new artisans and the number of artisans who were actually going to pass the practical test. Lastly, the target for issuing a certificate had been one year and had now been reduced to nine months, but this was disappointing. The Department should work on issuing the certificates after a short period, like in the matric system.

Ms Mchunu said that the Adult Education and Training and TVET examinations had been under-funded. Of greater concern was that what the Department had received from the Provincial Education departments was far below the estimated funds which would cater for the challenges and further entrenchment of quality services. It was worrying that the compensation costs for examiners had been relying on other programmes. What was the Department’s plan to mitigate these challenges? Lastly, the Minister had announced a review of the funding framework for TVET colleges and Adult Education and Training. When was the submission of this final report and consideration of the recommendations by the Minister for implementation?

Mr Siwela asked whether the Department had developed a minimum standard for the infrastructure, in line with the proposal of the NDP, to guide the construction of the development of the TVET colleges. Secondly, when would these TVET colleges be functional?

Ms Nkadimeng asked when the final report would be submitted and the recommendations considered following the announcement of the review of the funding framework for TVET and Adult Education Training by the Minister.

The Director General welcomed the comments on the National Institute for Humanities Studies. The point was well taken, since that was the work the Department was currently busy with, in collaboration with the Institute.

The Members were correct in raising the issues concerning the 12 new TVET colleges and the refurbishment of about four TVET colleges. The process entailed the tender advert which had actually happened in the first round, for all the construction and refurbishment of the TVET colleges, and a number of companies had been appointed to undertake that work. After undertaking a due diligence exercise, it had emerged out that only three companies were capable, according to the specifications of the tender. Currently construction was taking place on three sites. For the second round, an advertisement had to be drawn up and the processes were currently under way. The Department had expressed the importance of expediting the procurement process since it involved engineers and accountants, with the participation of the Department’s officials, including the legal team. The exact date of conclusion could not be given, as it was subject to the procurement approval process.

Mr Mahlobo, in response to the question of the issuance of the certificates, said the target set had taken into account that the Department had not got rid of its initial problem. The Department relied on the SETAs to give accurate data to allow them to issue the certificates. While the Department was gradually migrating to allow a new IT system for examinations, these two processes would be parallel until the Department was confident. As long as the Department relied on state information, the prognosis was not very good, and this was exacerbated by the constant reference to the SETAs, which were not quick.

In order to deal with the issue of examinations under the Adult Education and TVET education as an expenditure item, the Department had decided that it should completely re-engineer the structure of qualification, in consultation with quality councils. After re-engineering as part of the White Paper implementation, the Department had had to reduce the number of qualifications which lay in the TVET environment. An example was the savings made by cutting the trimester exams in the TVET to an annual single sitting. Consultation had been required between the Department and stakeholders, particularly within industry. A great deal of savings would be created.

With regard to the development standards for TVET infrastructure, at the beginning of the infrastructure project for TVET the Minister had requested the Department to develop what was considered a modern day TVET college. The Department’s structure plan was developed on a conceptual basis of an ideal TVET. The generic standard was not yet in place and it was from this perspective that the Department would roll out the standards of what it considered an ideal TVET.

In March 2015, the Minister had appointed a task force to review Adult Education and TVET funding norms. The Minister had given the task force team 11 months to submit a draft. At the end of February 2016, the taskforce would submit a final report on how the Department should approach the Adult Education and TVET framework in the context of community education and training, and a reconfigured post-school system, in conjunction with universities and SETAs.

Mr Mahlobo in response to the questions on the disjuncture between the increase in the number of new artisans and the low pass rates, said the targets set were within reach of the Department. In 2013 14 000 had been found competent, and in 2014 18 000 were found competent therefore the targets for both years had been met. The current targets had been set progressively and were not below the previously met targets. The Department was developing an In-House Gate Closure Programme that was going to be targeting those who did not pass, and who would come to the Department test centre. In December 2014, the Department had held a workshop with industry captains as well as all SETAs affected by artisan development in the country, and a university from Germany which had participated by sharing their experience in that area. The Department had come up with a strategy to improve the pass rate. Before the end of the year, the strategy would be opened to the public to enable participation. The targets for this financial year was 13 000, and there was a jump to 20 000 in the next financial year. The Department was confident that it would be able to meet these targets. In the past there had never been a policy towards artisans. The policy had been developed and SETAs had joined in and had committed R1 billion, and this was why the Department was positive at the meeting. The industry had also participated well in the process.

Dr Bozzoli, in response to the targeted number of artisans being 20 000, inquired whether this number included the artisans who would practice, or only the ones who would take the theoretical test. What number were intending to graduate with the full qualification?

Mr Mahlobo said that when an artisan had gone through the test it meant that they had passed both theory and work place experience.

Mr Kekana, in a follow up on the issue of artisan and engineering training, questioned whether the Director General was aware of any practical training offered to engineers, and said that there had been complaints about engineers from his experience in Public Works. The Committee realised that it was not a policy maker but it should influence policy in the direction in which the country was headed. However, this had not been happened. This was the main focus, and the system should be redesigned and reengineered to create jobs.

The Director General said the Department, in regard to the areas of practical training, continued to engage with professional bodies because the challenge was not necessarily students’ graduation, but also the question of accreditation by professional bodies. With respect to engineering, the Department together with the Engineering Council of South Africa, had developed a programme to assist the universities, historically disadvantaged institutions and other institutions in post-graduate training. More focus was on the new faculties of engineering in the historically disadvantaged institutions, where good work was being carried out. The Department’s foundation phase programmes in maths and sciences were looking at tackling this issue. As students came out of the basic schooling systems the number of them who get registered in these areas was not the desired number. However, the Department had developed interventions across the sector, in collaboration with industry players, in foundation phase programmes in order to ensure that disciplines such as maths were taken to another level. Further, the foundation phase programmes would increase enrolment and support post-graduation and assist students to register as professionals in their respective fields.

Dr Bozolli sought clarification how it was decided that two-tier colleges would be built at Nkandla.

The Director General clarified that it was not two-tier colleges, but two sides -- one side a campus, and a skills centre linked to the main campus. The Department had mapped all post school education and training in respect of universities, TVET colleges and campuses, and had established that in some parts of the country someone would have to travel a distance of about 350 kilometres before coming into contact with a post-education facility. In determining the location of these 12 TVET colleges, the school arrangement in the system was that the concentration was in the urban areas like Durban, Cape Town, Johannesburg and Port Elizabeth. As one moved further from these areas, the fewer the opportunities and facilities became. The areas affected the most were Eastern Cape, Limpopo, and KwaZulu-Natal provinces, so the spread had to take into consideration the filling of gaps. The main issue was the response of the Department and affording some measure of proximity and access to facilities.

Skills Development

The Chairperson invited questions on both Skills Development and Financial Performance.

Dr Bozzoli referred to the review of the SETAs in 2016 and whether the review could be moved closer since the SETAs were in a very bad way as they constantly received controversial audits. The Opposition received numerous letters of complaints. The SETAs seemed to be floundering and to leave them in their present state seemed irresponsible. Secondly, it was noted from the review that the Organisation for Economic Cooperation and Development (OECD) reviewed the TVETS -- would it be practical for the OECD to review SETAs since they were a difficult area and some international advice was welcome. Regarding the financial performance programme, it was agreed that there was not enough money.

Ms Mchunu commented on the review of the entire SETA system. It was concerning that serious challenges were experienced with some of the SETAs. The Department was urged to intensify the programme on SETAs with regard to governance and management, but they should continue until the review Programme was concluded by the Department.

The Chairperson followed up on the question regarding the progress of attaching SETAs to colleges. In the financial plan, in the CFO’s presentation it was clear that there was additional funding needed. What amounts should the Committee put in the recommendations for the budget in its report? Lastly, on the APP for 2015/16, what would be regarded as the Department’s apex priorities?

The Director General said the apex priority was the quality in the provision of programmes in the system. This was important, because quality would determine the type of product emerging out of the system and the usability of the product in society and the economy. The defining feature of an institution was the prestige of its academic programmes, because an institution teaches, trains and produces quality. It was not just a numbers game. Every parent wants their child to emerge from an institution as someone to be sought after in society in respect of the contribution they would make as a result of the capabilities and the skills acquired in the system. Quality was something that both the Department and the Committee should work towards, by ensuring that it was not just the availability of the opportunities but the utility of the opportunity. The question of quality of teaching, learning, research, innovation in the system was important and imperative.

In respect of the licensing of SETAs, the current regime ended on 31 March 2016. In the meantime, there was a process of reviewing what form they would take post 31 March 2016. It was thorough work which the Department was involved in. It was unpredictable, but the Department was outlining its mandate in the process and was being informed by various studies, investigations, research and numerous recommendations, which the Department was assessing cautiously.

Monitoring and evaluation was an area which the Department sought to improve and it would result in institutions being put into administration because of repeated failures and lapses in the system that the Department picked up, after doing everything together with the incumbent management and government structures. The last resort was to look at other mechanisms that were within the law in regard to monitoring and evaluation, and the support that the Department gave to the entities and institutions was seemingly being undermined by those entrusted with this responsibility. Monitoring and evaluation activities were a last resort since they placed a huge responsibility on the Department in terms of capacity. It meant assuming responsibility in other areas over and above what the Department had presented in the APP.

SETAs played a facilitation of training role and synergy between the workplace and entities and institutions where training was quality based, and ensured that there was a collaborative engagement and process in respect of the theoretical aspect of training and education, as well as workplace exposure. This was why the system had linkages and collaborative work between SETAs, colleges, universities of technology and comprehensive universities. Workplace exposure was afforded to all students going through the process in order to attain a qualification, as well as the necessary experience. and the DHET was making resources available to ensure that the process became seamless. It was working hard on this and believed that it would get it right, though it had experienced resistance.  

Mr Mvalo added that the heading nomenclature of the White Paper, both horizontally and vertically, was about linking the world of work and education. The Department took the area of turning TVET colleges into institutions of choice very seriously. Its origins from the National Skills Development Strategy (NSDS) 3 embraced this relationship, because NSDS 3 stated that its purpose was to encourage and actively support the operation of workplace training and theoretical learning and to facilitate training individuals from colleges or universities, or for periods of unemployed progression. Therefore when the Department came up with the idea that they needed to have these offices within TVET colleges, it felt that this area had been a missing link for some time and needed to be addressed aggressively by having SETA offices in colleges, especially targeting rural areas. There were currently 40 offices in campuses across the country.

Dr Bozzoli said she was unhappy with the five-year strategic objective, that SETAs would have the level of government standardised and would take reports where deficiencies were detected, by 2020. This should be done this year. The goal was very far away for institutions that appeared to be corrupt and failing. The goal should be reconsidered.

Closing statements

The Deputy Minister thanked the Committee for affording the opportunity to present the five-year strategic plan and the APP and the robust nature with which they had been able to engage with the Portfolio Committee. The question by Dr Bozzoli regarding the two campuses being built in Nkandla was a political statement, as the question should be why not Nkandla, since it was a vast area. At some point the Committee should carry out a site visit in the area. At some point when President Mbeki was in power, he had declared it as one of the poverty-stricken areas. These interventions were in response to that. It was not a matter of the President having come from that area. It was proper to clarify this, because the media was at the meeting. A further point of clarity was based on the concern over the attendance of the members of the executive that had been raised by Dr Bozzoli. Deputy Ministers were not members of the Cabinet, and it was quite justifiable for the Minister not to attend since he attends Cabinet meetings. The Deputy Ministers are members of the National Executive and therefore had certain duties to fulfil. They do not sit in Cabinet meetings but are expected to sit in Cabinet committees and clusters. The Cabinet meeting that was sitting on this day was a culmination of various Cabinet committees that had sat in previous weeks and therefore they were approving matters decided from the preceding two weeks. The Deputy Ministers were required to attend these meetings, because Cabinet could not approve without approval at the Cabinet committee level. The Leader of Government Business had been requested to engage with Parliament in order to deal with these contradictions. Although the Deputy Ministers intend to attend Portfolio Committee meetings, they were still expected to carry out their executive duties. The Portfolio Committee meetings sit on the same day as the Cabinet committee and Select Committee meetings. This should be taken into account when issuing apologies for absence in the Portfolio Committee meetings. A balance must be struck, because there was the expectation of accountability to the Portfolio Committee as an expectation of the law.

The Chairperson acknowledged receipt of the five year Strategic Plan and APP and thanked the Department for allowing the Committee to gain a deeper understanding of what the Department had planned to achieve on its mandate. It was clear that the Minister had a vision and this vision was aligned to the White Paper and the NDP. All that was needed now was the successful implementation of the Plan. The harsh reality was that for the implementation of the Strategic Plan and the APP, there was a need to fill critical funded vacant posts. The success of the Strategic Plan and the APP was anchored on human resources that would assist in their implementation.

The Committee had identified some gaps. Two practical examples were the time lines on the NSFAS forensic audit and the evasiveness in the explanation of the time lines and targets for lecturers. The Committee would like to proceed with standard practice -- if the plans cannot be achieved, then the Department would have to review them and take another step. Referring to the manner of implementation through experience was not a proper administrative standard. There must be a plan that was time bound, so that if it was not met then the Department would have to review it and inform the Committee about the review time line, and follow up. It would be in the best interests of the Department to deal with the problematic areas. This was an area of improvement -- a plan must be measurable and time bound.

The Department’s mandate was huge, dealing with 26 universities, 50 TVET colleges, 21 SETAs and other structures. Prioritisation of the budget in favour of the establishment of the monitoring and evaluation unit would be key, because the Committee looked forward to the Department intensifying its oversight over university education, vocational and continuing education and training.

The Chairperson thanked the Deputy Minister for attending the meeting and for his comments on striking a balance in attending Committee meetings. The Chairperson also thanked the Director General and his team for their thorough preparation, and appreciated the good working relationships which were needed to achieve the targets in regard to education.

Consideration and adoption of the minutes

The minutes of the meeting on 11 March 2015 were adopted without any amendments.

The meeting was adjourned.