Medium Term Budget and Programmes: Department briefing

Meeting report

PUBLIC SERVICE AND ADMINISTRATION PORTFOLIO COMMITTEE
2 March 2005
MEDIUM TERM BUDGET AND PROGRAMMES: DEPARTMENT BRIEFING

Chairperson: Mr P Gomomo (ANC)

Documents handed out:
Department Medium Term Budget: PowerPoint presentation
Department budget 2005 - 2006

SUMMARY
The Department of Public Service and Administration (DPSA) presented on its medium-term budget and programmes. The Director-General described their seven main programmes: administration; integrated human resources; information and technology management; service delivery improvement; public sector anti-corruption; international and African affairs; and planning, monitoring and evaluation. The Department would specifically be focusing on the implementation of its existing policies. He also outlined the Department’s operational strategy and accountability framework, human resource needs and employment equity targets. He then presented the Department’s medium-term expenditure framework - R167 726 000 for the 2005/2006 period – and amounts that had been allocated to each programmes in 2004/2005.

In the discussion that ensued, Members raised the Department’s employment equity targets. They also asked about the planned unified system of public administration; the remuneration of public sector workers; the Community Development Worker (CDW) programme; the Government Employees Medical Scheme (GEMS); and about progress in implementing the Department’s HIV/AIDS strategy.

MINUTES

Department briefing
Mr R Levin (Department Director-General) presented the Department’s medium-term budget and overall programme. He highlighted that the Department’s policy framework was already in place, and that the Department would be focusing on policy reviewing and implementation in the upcoming period.

Mr Levin then proceeded to discuss the seven programmes that the Department would be undertaking. These were:
1) The administration programme: Among other things, the implementation of the Community Development Worker Programme (CDW).

2) The Integrated Human Resources programme, further divided into six sub-programmes:
- Remuneration and Conditions of Service. Part of this would involve the implementation of the GEMS. It would also involve a review of the remuneration dispensation for certain categories of employees.
- Negotiations and Labour Relations sub-programme, involving seeing that sound labour relations policies were implemented in the public service sector.
- Implementation of the Employee Health and Wellness programme, which would also involve implementing an HIV/AIDS communication strategy.
- Implementation of Employment Practices and Career Management sub-programme.
- Human Resources Development, including implementing a unified system of administration for the entire public sector.
- Developing the Public Sector Education Training Authority further.

3) Information and technology management: Developing and implementing information technology systems in public service departments. It would also include the improvement of Phase 1 of the Batho Pele Gateway.

4) Service delivery improvement: Implementation of the Batho Pele management programme. There would also be an initiative to implement support to post-conflict countries in Africa, such as the Democratic Republic of the Congo. The Department would also establish service delivery improvement partnerships with selected provinces.

5) Implementation of public sector anti-corruption strategies.

6) International and African Affairs: Implementation of the NEPAD capacity development programme and the African peer review mechanism.

7) Planning, monitoring and evaluation: Providing reports on the state of service delivery and, in general, on government departments.

Mr Levin then discussed the Department’s operational strategy and accountability framework. The Department would comply with legislation on public services and labour relations, provide reports to the Minister and Cabinet, and undertake an internal audit. He also highlighted their human resource needs and representivity targets that had not been fully met.

Mr Levin then discussed the medium-term budget allocations. In 2005/2006, the Department would be allocated R167 726 000. In 2006/2007, this would rise to R177 348 000, with a further increase to R184 365 000 in 2007/2008.

Mr Levin also presented an overview of the 2004/2005 budget expenditures to the following programmes:
- the administration programme had received R38 947 000;
- the integrated human resources programme had received R46 759 000;
- the information and technology management programme had received R26 342 000;
- the service delivery improvement programme had received R27 165 000;
- the anti-corruption programmes had been allotted R1 837 000;
- the international and Africans affairs programme had received R 3 244 000; and
- the auxiliary and associated services were allocated R2 000 000.

Discussion
Dr A Luthuli (ANC) noted that many public sector workers, specifically nurses, teachers and other professionals, believed that their salaries were low. He enquired how the Department was seeking to address this issue.

Dr Luthuli also asked whether the Department had made progress in implementing its HIV/AIDS strategy. Had the Department engaged with other departments, such as the Department of Health, on HIV in the workplace?

A Member enquired about the details of the unified system of public administration and governance planned for the public sector.

Mr K Minnie (DA) enquired about the Department’s responsibilities in the Community Development Workers (CDW) programme.

Mr Minnie and Mr Luthuli both noted that the Department had fallen short of its own employment representivity targets for race, gender and disability. This was particularly evident at the level of management, and they asked the reasons.

Ms L Maloney (ANC) noted that certain city managers were extremely well paid - some even earned more than the President. She asked whether the Department was concerned. She also enquired about the details of the GEMS.

Mr Levin noted that the Department was playing a leading, or ‘incubator’, role in the CDW programme. Currently learnership programmes were being rolled out in all the provinces. Once the CDW learners had qualified, they would be employed by the provincial premiers’ offices as public servants. They would be deployed locally in the areas from which they had been drawn.

Mr Levin commented that in the future, the Department should provide more encouraging reports on representivity. This issue related to the problem that the Department struggled to retain staff as its employees were highly skilled, specifically in human resources, and were sought after by other departments and private companies. There were high differentiation rates amongst city managers in terms of their remuneration. City managers of the metropoles tended to earn very high salaries, but not in other areas.

Ms B Rankin (Department Chief Directorate: Remuneration and Conditions of Service) said that in 2002, a scarce skills and rural allowance strategy had been designed for the health sector. From 2003 to 2006, R1 billion would be made available to the health sector for remuneration allowances, including those for professional nurses. A review was taking place, establishing a revised remuneration scale for professionally qualified workers. The Department had already devised a strategy to upgrade the salaries of social workers.

Ms Rankin highlighted that the Department had conducted a number of feasibility studies around the GEMS, and how current medical aid benefits could be restructured. This was because 350 000 workers were currently not registered and the Department wished to bring these workers into a medical aid scheme. The Department had also already registered the medical scheme, but it still needed to establish structures for membership enrolment. The Department would return to brief the Committee on progress.

Mr K Govender (Department Chief Directorate: Negotiations and Labour Relations) noted that the unified system of public administration would ensure that there were national standards. Ms B Rankin added that the Department would be involved in streamlining the remuneration and condition of service practices for all levels of the public sector. All government entities would be included under a single public sector wage policy. It would also allow for the employer to be defined as a single national entity.

Mr Levin continued that the Department was responsible for the workplace policy of HIV/AIDS in the public sector. They had appointed a Chief Directorate to address the issue. The Department was, however, not equipped to measure the percentage of public servants who were HIV-positive.

The Department would also be ensuring that an Integrated Health and Wellness programme existed in other departments. These programmes would enable HIV-positive people to gain support from the departments by whom they were employed. The Department was preparing a major communication campaign around the disease. Programmes would also be implemented to battle the stigma attached to HIV in the workplace.

The Chairperson enquired whether the Department's medium-term programme was being effectively communicated to worker representatives.

Mr B Mthembu (ANC) noted that in the past, government departments had often not complied with the policies that the Department formulated. He was encouraged that the Department programme made reference to the enforcement of policies.

Mr M Sikakhane (ANC) asked whether the Department had the power to determine the salaries of mayors and city managers. He thought that those decisions were determined by the municipalities themselves. He enquired how the unified system of administration would alter this. Salaries should be determined by the sector in which a person worked, and not by comparing them to other non-related sectors.

Mr R Baloyi (ANC) enquired about 'incubator' role of the Department in the CDW programme. He asked who decided on the number of CDWs, who formulated and managed budgets, and who designed the content programme. Who exactly who were the CDWs answerable to, premiers or municipalities? He then asked how the Department would undertake its policy reviewing process. Knowing the process was important for avoiding further excuses on why policies were not being implemented.

Mr N Gcwabaza (ANC) said that the Department’s negotiations and labour relations programme stated that there would be macro-benefits for workers. He wanted to know what constituted a macro-benefit.

Mr Gcwabaza then enquired about the Department's planned implementation of the restricted membership medical aid scheme. Would there be a staggered implementation? If this was the case, which categories of workers were being included or excluded?

He also asked about the costs of implementing the unified system of public administration. What impact would it have on workers? Not all the workers across the various levels of government earned the same. He asked how the Department proposed to standardise remuneration and conditions of employment.

Mr Levin stated that the Department was not currently responsible for mayors' or city managers' salaries. However, if a unified system of public administration was established, the Department would consider implementing standard basic remuneration packages. There would also be bonus incentives for employees who performed well. This would ensure that the public sector retained its competent mangers.

Mr Levin noted that the ‘incubator’ role of the Department in the CDWs, meant that it had to take the lead role in the task team overseeing the CDW programme. The task team comprised of stakeholders such as national, provincial and local government. The task team would also decide on the number of CDWs. The target for 2006 would be ten CDWs per municipality. Budgeting for the project would be at a provincial level - it was not practical to run the CDW programme from a centralised fund.

He then highlighted that the Department had planned to establish monitoring and an evaluation capacities to ensure that departments complied with national policies. The Anti-corruption section of the Department already had such a system. These capabilities would also allow the Department to establish whether departments were simply not complying, or whether the policy itself was unimplementable.

Mr Levin responded that the macro-benefits for workers would be housing allowances, medical aid and pension contributions. The Department was currently focusing on the enrolment of the medical aid scheme. Its implementation would be staggered due to financial constraints.

Mr Levin continued that the National Treasury was currently undertaking a study into the costs of implementing the unified system of public administration. In terms of the effects on workers, a policy of equal pay for equal value would be implemented. However, Mr Govender noted that even in a unified system for public administration, not all public servants would be treated the same. For example, some local government employees received R2 000 a month for medical aid contributions, but in the public service this was capped at R1 014. In a single system, it would mean everyone would have to receive R2 000 contribution. This would not be possible. Therefore, the planned national norms and standards would, to a degree, be flexible.

Ms Rankin stated that there were structures in place to communicate the Department programmes to workers’ representatives.

The Chairperson stated that the Batho Pele Gateway was a very positive undertaking. He enquired what criteria a person needed to meet in order to be enrolled as a CDW trainee.

Mr Ngema (Department Deputy Director General: Service Delivery Improvement) noted that the Department was pleased that the value of the Batho Pele Gateway was being recognised. The Department was also undertaking a campaign to publicise the Gateway

The Department delegation also noted that the CDWs were not immediately being admitted as public servants, but rather as learners. As such, they had to meet the requirements that the SETAs demanded from prospective learners.

The meeting was adjourned.