Department of Agriculture 2004/05 Annual Report and 2006/07 Budget and Strategic Plan: briefing

Meeting report

LAND AND ENVIRONMENTAL AFFAIRS SELECT COMMITTEE
23 March 2006
DEPARTMENT OF AGRICULTURE 2004/05 ANNUAL REPORT AND 2006/07 BUDGET AND STRATEGIC PLAN: BRIEFING

Acting Chairperson: Mr R Tau (ANC, Northern Cape)

Documents handed out:
Department of Agriculture Presentation (PowerPoint)
Department of Agriculture: Hearings on Annual Report 2004/5 Submission: Part 1 & 2

SUMMARY
The Department of Agriculture briefed the Committee on its 2004/05 Annual Report, and 2006/07 budget and strategic plan. It outlined progress on its new structure, its strategies and budget programmes. Members asked questions about gender representativity, underspending of the previous year’s budget, intergovernmental relations and provincial spending, drought relief and the status of an aquaculture policy. The Department agreed to do a follow-up briefing before its budget was debated in Parliament.

MINUTES
Mr M Mbongwa, Director-General: Agriculture introduced his delegation as Mr L Mabombo (Chief Operating Officer), Ms N Nduli (Deputy Director-General: Biosecurity and Disaster Management), Ms V Titi (Deputy Director-General: Sector Services and Partnerships), Dr P Mohlahlane (Deputy Director-General: Livelihoods, Economics and Business Development), Dr S Moephuli (Acting Deputy Director-General: Production and Resources Management), Mr A Swart (Chief Programmes Officer), Mr S Malatji ( Chief Director), Dr S Mkhize (Acting Deputy Director-General) Dr B Modisane , Mr S Galane (Senior Manager: Agricultural Information Services), Mr E Rademeyer (Chief Director), Mr B Msomi, Mr Geldeheis (Acting Chief Financial Officer)

Briefing by the Department of Agriculture
Mr Mbongwa briefed the Committee on the Department’s new organisational structure. The objective of the new structure was to align it to the strategic objectives, strategies and programmes of the Department. The restructuring would lead to the strengthening of capacity to provide oversight on the implementation of national programmes, including programmes under the Accelerated Shared Growth Initiative of South Africa (ASGISA). The new structure would become effective from 1 April 2006.

Mr Mbongwa outlined the Department’s budget programmes. These were Administration, Livelihoods, Economics and Business Development, Biosecurity and Disaster Management, Production and Resources Management and Sector Services and Partnerships. Mr Mbongwa highlighted that the Department’s total budget for 2006/07 amounted to R1, 957 billion.

Discussion

The Chairperson asked how the Department’s new structure would ensure that there were more females holding senior positions. He also questioned the lack of capacity in the Department to spend its allocated budget. Was it true that the Department could not spend more than 50% of its budget in the last financial year?

Mr Mbongwa indicated that the Department experienced difficulties in retaining female staff. However, the new structure would ensure the achievement of gender balance in the Department’s staff complement.

Mr Mabombo added that by 2009 all government departments would have 50% female representation at senior level. Women would fill the new senior positions created by the Department’s new structure.

Mr Rademeyer stated that the budget allocation presentation did not imply that the Department could not spend its allocations. The presentation had pointed out the expenditure by programme only and not the entire departmental expenditure. Nonetheless, there would be some underspending for the 2005/06 financial year.

The Chairperson asked how the Department viewed intergovernmental relations. Most provinces were unable to spend their budgets, especially on the Comprehensive Agricultural Support Programme (CASP). Did this mean that the Department was unable to ensure that provinces utilised their budget allocations effectively?

Mr Mabombo said that the Department had resolved to pay closer attention to provincial performance. This would include visiting provinces to monitor their spending patterns before approving projects.

Mr Mabombo added that the Department felt its mandate to deliver services in areas requiring special skills have been compromised because of lack of uniformity in the payment of skilled professionals in provinces. The Department had introduced interventions which included developing a framework that dictated how incentives should be allocated to professionals with specialised skills. The Department also introduced a Bursary Fund for education and training to ensure that skills were available at national and provincial levels.

Ms M Oliphant (ANC, KwaZulu-Natal) asked if KZN had utilised its entire allocated budget and what capacity the Drought Relief Fund had to assist farmers during periods of drought.

Mr Msomi responded that the absence of a budget rollover in KZN indicated the capacity that the province had. It did not necessarily imply that the money had not been spent.

Mr Malatji said that the Drought Relief Fund had been set up to assist farmers with seeds to improve grazing and irrigation for livestock. Most provinces had spent their full allocations and were approaching the Department for further assistance

Ms Oliphant asked if the Department had a policy on aquaculture and when they would table it before Parliament.

Dr Moephuli responded that the Department had started with an aquaculture policy focusing on freshwater and inland fisheries. There was a need to take into consideration that this policy was interlinked with the role of the Department of Environmental Affairs and Tourism (DEAT) on marine and saltwater fishing and would have to be carefully managed to avoid conflict. The Department however had interacted with the DEAT to identify and clarify roles and responsibilities. A task team had also been established to merge the two Departments’ policies into one national policy that would remove public confusion. The final policy would be tabled before Parliament.

The Chairperson requested the Department to provide more information on its general role. On some of its oversight visits the Committee had heard complaints from farmers that they were unaware of the role of the Department. The Department did not directly respond to this request, but would deal with it in a follow-up briefing.

The meeting was adjourned.