Strategic Plan for MTEF Cycle 2003-2006

Meeting report

PUBLIC WORKS PORTFOLIO COMMITTEE
21 May 2003
STRATEGIC PLAN FOR MTEF CYCLE 2003- 2006

Acting Chairperson: Mr B Radebe (ANC)

Document handed out:
Strategic Plan for MTEF Cycle 2003/4 to 2005/6

SUMMARY
The Strategic Plan for the Medium Term Expenditure Framework (MTEF) Cycle of 2003 to 2006 for the National Department of Public Works was explained by the Director General. He outlined the shift in strategy and the key challenges the Department faced.

It was noted that under-funding to the tune of R592 million will result in a shortfall in the Community-Based Public Works Programme so that a number of potential temporary jobs opportunities have therefore been lost.

MINUTES
Strategic plan for MTEF Cycle for National Department of Public Works (NDPW)
Mr James Maseko (Director General: NDPW) noted that the department is committed to work in accordance with their Strategic Plan. Prior to going through the Plan, he outlined the multi-year planning cycle that the Government adopted in 1999 known as the three-year Medium Term Strategic Framework / Medium Term Expenditure Framework (see document for full details).

The Department's three strategic goals are:
· Contributing to economic growth, investment and employment by effectively transforming the Construction and Property Sectors
· In ensuring a concerted attack on poverty the NDPW will, as part of a comprehensive Government-Wide Expanded Public Works Programme, implement Community-Based Public Works initiatives.
· Transforming the NDPW to be strategically positioned for optimising the value of the State's immovable asset portfolio for effective service delivery.

The Director General outlined the Key Challenges facing the NDPW:
· Lack of uniform guidelines regarding various aspects of public immovable asset management in all organs of the State.
· Inadequate maintenance budgets that negatively impact on the environments where various public services are delivered.
· Absence of an integrated information systems and appropriate skills to deliver on the Department's mandate.
· Industry-wide challenges like:
- Capacity constraints within the Construction industry ;
- Shortage of skills:- inability to attract new skills;
- Skewed ownership within the construction and property industries;
- Transform the physical environment to improve service delivery.

The Department's main emphasis during the 1999 - 2003 MTEF cycle was on providing services to Client Departments. Departments negotiated funds for projects with National Treasury who then allocated the funding to Public Works. In the last two years Treasury has allocated funds to the Department to give them direct control over such funds.

With this change, there has also been a shift in strategy so that the Department is being restructured into three separate branches:
- owner/custodian of the State's immovable assets, responsible for policy-making, regulation of Construction & Property Sectors and National Public Works Programme
- accommodation and
- asset management services to Clients Departments and Institutions

Parliament will hopefully approve the Government-wide Immovable Asset Management Bill early in 2004 which will assist with its new strategy.

The Department's budget allocation is far inadequate to fund the Department's critical programmes.
The Department has demonstrated capacity to spend its allocated budget, as evidenced by its over-expenditure. The difference between the Requested and Approved Budgets for 2003/4 is R592 million. The implications of the under-funding for this financial year include a shortfall in the main in Community-Based Public Works Programme (CBPWP). A number of potential temporary jobs opportunities have therefore been lost. There however exists a window of opportunity in that additional funding may still be found around October during the consideration of Adjustment Estimates Appropriation Bill.

To this end, the Department appeals to the Committee to provide whatever support it has to ensure that additional funding is received as indeed, the cut back on expenditure is not a realistic solution to the problem.

Discussion
A question was asked about the unfilled posts in the department. Mr Maseko replied that although there is a great demand for jobs in the country, there are only a small number of academic graduates who posses the skills required by Public Works.

Questions were also asked about land re-distribution, heritage protection rules, job creation programmes for communities.

The meeting was adjourned.