Budget Review

Meeting report

PORTFOLIO COMMITTEE ON CONSTITUTIONAL AFFAIRS
12 May 1998
BUDGET REVIEW

Documents handed out:
Women's Budget III: Constitutional Development (Appendix 1)
Speech by Professor Robbertze, Chairperson of the Volkstaat Council (Appendix 2)
1997/98 and 1998/99 budget of the Council of Traditional Leaders (Appendix 3)
Annual Report of the Department of Constitutional Development (Appendix 4)
Budget Vote 9: Constitutional Development (Appendix 5)
Medium Term Expenditure Framework per activity

The Minister of Constitutional Development, Minister Moosa, gave an outline of the various programmes the ministry was presently involved in as well as the progress thereof.

BUDGET
Minister Moosa mentioned the dispute with the provincial boundaries. He said that they were "soft" boundaries and it was in the provinces' best interest to focus their attention on delivering of service, rather than the dispute itself. Regarding cross-boundary municipalities, the Minister informed the committee that the Constitution did not allow for this occurrence. He said that amendments to that section of the Constitution was in the process of being made and would be brought before parliament as soon as it was complete; possibly in this parliamentary session.

The Chairperson, Mr Carrim, opened the floor for questioning. Clarity was requested regarding election funding for represented political parties. The Minister said that the Bill did not have a special provision for election funding. As a follow-up question, the MP wanted to know if the funding would move to the Department of Home Affairs. A Department official said that it would not.

Mr Eglin (DP) asked how far the legislation was regarding S185 (Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities). Mr Moosa replied that the legislation surrounding that section would be brought to parliament before the end of this term but consultation would occur before the Bill was tabled.

Mr Ebrahim (ANC) asked the Minister about the definition of traditional leaders. The Minister said that through the White Paper on Local Government consensus would be reached regarding that.

The Minister was unable to answer anymore questions, as he had another meeting to attend.

The Chairperson handed the meeting over to the Director-General of the Department, Mr Zam Titus. Mr Titus began his presentation by thanking the Constitutional Affairs committee for the good relations it had with the Department. He said that today's meeting was primarily one of "figures" as the Department had already given the committee an outline of their 1998 programme on 10 February 1998. Also the Budget Review, which was presented by Minister Manuel, touched on the Department's work. Mr Titus mentioned that the Department's annual report had been tabled that day and at the next meeting (Tuesday, 19^th May) a detailed programme of all the Department's work would be tabled.

The Director-General went on to mention some policy questions which were still outstanding. They included:
• Section 185 of the Constitution (Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities)
• Intergovernmental management
• Local Government
• Volkstaat Council
• Border dispute
• Traditional Leaders
• Equitable Shares

Regarding the future of the Department, the Director-General informed the committee about the possible renaming of the Department. He said that the process began last year by the Department, but had to cease as the President had initiated a different process, handled by the Presidential Review Commission. So far, there had been no results regarding the change of name.

The Director-General informed the committee that extensive transformation was taking place in the Department. A transitional unit had been established and it was under his guidance. He mentioned that the Annual Report dealt more extensively with that issue.

On the subject of the Annual Report the Director-General mentioned that the Department was in the process of reshaping it according to the financial year. He added that it was not possible to have the report in the other official languages, besides English, as there were budget constraints.

The Director-General continued by giving the members the budget allocation for the main programmes which were run by the Department. There was some discussion by the committee members surrounding the budget for 1997/98 and 1998/99.

The Director-General ended his presentation by saying that 1997 had been a busy year and the Department looked forward to another one this year.

The Programme Manager of the Department, Mr Buys, dealt with the Medium Term Expenditure Framework per activity section of the Budget Vote 9: Constitutional Development handout. He mentioned the Minister's salary and that of his personnel. He said that the Minister's salary included motor financing and his pension and medical fund contribution. Also the Minister's administrative expenditure consisted of the bulk of his travelling costs. Mr Buys mentioned that it included two possible overseas trips this year and commuting between Pretoria and Cape Town. Regarding the Minister's personnel, they had to travel with the Minister. Hence their budget allocation had to be reasonably large. Mr Buys ended his talk by saying that the Minister's budget was well managed and a good relationship existed between the Minister and himself.

The Chairperson opened the floor for questions. Mr Beyers (NP) wanted to know if the Minister's recent trip to Ireland had paid by the State. The Director-General replied that it was not.

Mr Eglin wanted to know why the Minister's personnel budget had increased to 43%. Mr Buys said that the Minister did not have any advisors presently nor a Deputy Minister. The Minister had informed the Department that his workload was too much and he might employ an advisor. Mr Buys told the committee that the Minister was still considering the employment of an advisor.

The Financial Manager, Mr Clerihew, continued with the presentation by giving the committee the outline of the Department's budgetary figures. He informed the committee that State Expenditure had instructed the Department to decrease its administration. With the result the Volkstaat Council and the Council of Traditional Leaders brief was moved to Auxiliary and Associated Services.

Concerning Auxiliary and Associated Services, R53 million was allocated for the Representative Political Parties Fund. The Department would act as the accounting officer and the Independent Electoral Commission would administer the Fund.

The Chairperson opened the floor for questioning regarding the statistics and budgetary figures. Dr P. Mulder (FF) wanted to know why there was an increase of 26% to top management. Mr Clerihew corrected Mr Mulder and said that it was actually a decrease of 26%. The State Expenditure wanted to level out the management amongst all the departments. It was, in actual fact, a restructuring of it.

Mr Smith asked about the allocation given to the Masakane Project. Mr Clerihew answered that the downscaling to R15 million was necessary because of the general constrained allocation of funds to the Department.

At this point, the Director-General reiterated that specific programmes of the Department would be looked at in detail next Tuesday.

GENDER
A presentation by Ms D Halcomb of IDASA followed. This presentation focussed on an analysis of the Department's programmes of the last three fiscal years, in terms of gender. She said that the analysis looked at two branches of the Department, namely Constitutional Affairs and Local Government. She said that two questions always have to be asked when it comes to the issue of gender:
* How is the Department using its budget?
* Where are men and women placed as beneficiaries in government?

VOLKSTAAT COUNCIL
The two programmes of the Department, the Volkstaat Council and the Council for Traditional Leaders then gave reports on their activities for the year of 1997/98. Professor Robbertze, chairperson of the Council, and General Pienaar from the Volkstaat Council gave a presentation of their findings for the year. Concerning cultural self-determination, Professor Robbertze informed the committee that the Council has been investigating the practicalities of self-determination in specific areas of South Africa. He added that the Department's budget allocation for the Council till September this year, of R1 245 million, was far too small for the Council to continue working. The government planned to end the functioning of Volkstaat Council by September but the Council's work would not be complete by then.

General Pienaar continued with the Volkstaat Council's report-back by alerting the committee to the summary of the past financial year. He emphasised that because of budget constraints, there was a decrease in personnel as well as in the administration, but an increase in research efforts. General Pienaar ended off by informing the Department that they required a budget of at least 2 million for 1998/99.

Various questions were posed to the Council regarding their activities. Professor Du Toit (ANC) wanted to know who was evaluating their research. Professor Robbertze said that they did not know who the Council was responsible to. Before the new Constitution came into being, they were responsible to the Constitutional Assembly, now they do not have anyone.

It was queried if research was done in various communities, or did it only include Afrikaner communities. Prof. Robbertze replied that it included all types of communities.

The Chairperson wanted to know how the research was done in the communities. Prof. Robbertze replied that they used a survey. The Chairperson requested a copy of the survey.

The Chairperson also asked how the Council knew that there was growing support for Afrikaners. He requested statistics to confirm this statement. Prof. Robbertze said that there was no scientific evidence of this support. However, there was an increase in Afrikaner Councils, from which could be deduced that support amongst Afrikaners was growing.

Mr Smith asked when the Council envisaged its completion. General Pienaar responded that as a result of the decrease of the budget, there was a backlog of work. Hence the backlog first had to be dealt with before its completion.

Mr Beyers commented that it was too soon to ask for the disbandment of the Volkstaat Council as no agreement had been reached yet with government.

Prof Du Toit said that the only outstanding work by the Council was the publication of its findings, which would be placed in a report. He wanted to know where the final report was and when would it be ready.

At this point Dr Mulder interjected and said that the members were asking the Volkstaat Council questions, which they were unable to answer. The Executive had not given the Council a clear way forward. Only when this occurred, would the Council know in which direction to move.

COUNCIL FOR TRADITIONAL LEADERS
The Chairperson then asked the Council for Traditional Leaders to give its report- back. He mentioned that it was their first one to the committee. The chairperson, Mr Suping, began by informing the committee that their annual report would be tabled soon. He went on to say that after one year no payment had been made to councillors and the Council for Traditional Leaders still did not have a full-time councillor.

Mr Suping gave a breakdown of some of its activities for 1997/98. These included the following :
* submission on the Local Government White Paper
* submission to the South African Law Commission on customary law
* met with the chairperson of the IEC, Judge Kriegler, concerning national elections in the vicinity of traditional leaders.
* attended many workshop throughout the year.

Mr Suping went on to speak about the problems with the 1998/99 budget of the Council of Traditional Leaders. He said that from the amount allocated, only three people could be employed. Also the Council of Traditional Leaders would only be able to meet six times this year and the subcommittee would only be able to meet twice in the year. He added that the Council of Traditional Leaders was not consulted when the budget was drawn up by the Department. As a result of budget constraints, the Council of Traditional Leaders was not able to perform its tasks satisfactorily. Mr Suping ended his speech by saying that the Council of Traditional Leaders wanted their budget reviewed by the Department.

Questions by committee members
The Chairperson stated that he was astonished that no one was full time presently. He said that he would raise it with the Department next week.

Mr Smith (IFP) commented that he could not understand how the Council of Traditional Leaders could give mandates when they met so infrequently in the year. Also he wanted to know from the Department how the figures were comprised for 1997/98 and 1998/99.

A Department official responded to the members' comments and questions by saying that a full debate would take place next week when all the programmes were looked at in detail. Regarding consultation with the Council of Traditional Leaders on their budget, he said that the Department received information from them about their needs and a costing was done when the budget was drawn up.

With respect to the Council for Traditional Leaders' Annual Report, the Department official said that they did not want the report to come from the Department. The Council for Traditional Leaders also did not want their programmes to be driven by the Department. The Chairperson informed Mr Suping that it was unacceptable that the Council for Traditional Leaders did not table their Annual Report. He said that it was standard parliamentary procedure and it should not happen again.

The Chairperson ended off the meeting by informing the members that next week would include the finalisation of the Remuneration of Public Office Bearers Bill, the Budget Review and the report by the Department on their programmes for 1998.

Appendix 1:
Women's Budget III:
Constitutional Development
By Lindiwe Ndlela and Deevy Holcomb
(Idasa Local Government Information Centre)

Chapter Outline

1. Introduction

2. Women and the Department of Constitutional Development
2.1 Women and the Constitution
2.2 Women and Local Government

3. Components of the Budget

3.1 Programme 1: Administration
3.1.1 Administration/Management
3.1.2 Traditional Affairs
3.1.3 Council of Traditional Leaders
3.1.4 Volkstaat Council

3.2 Programme 3: Local Government Affairs
3.2.1 Local Government Development and Support
3.2.2 Local Government Infrastructure and Planning
3.2.3 Local Government Finance

3.3 Programme 4: Auxiliary Services

4. Conclusion

1. Introduction

1. DCD "hybrid" institution responsible for transition

2. Budget analysis:
a. DCD primarily about Constitutional Affairs and Local Government
b. Relationship between Constitution, Local Government and Gender
• Constitution and the poor
• Gender dynamics of poverty
• Women and reproductive labour
• Local government and social reproduction
• Close relationship between women and LG

c. How do programmes incorporate an understanding of the real relations between women and men within the communities they serve?

d. Where are women and men placed as beneficiaries of programme?

3. Total DCD Budget 1995/6 - 1997/8

Budgets 1995/6-1997/8

Programme:	1997/8
	R’000	%
1. Administration	19756	3
2. Intergovernmental Relations	10731	2
3. Local Government Affairs	641207*	94
4. Auxiliary Services	9432	1
Total:	681126	100

 

Programme:	1996/7
	R’000	%
1. Administration	23441	2
2. Intergovernmental Relations	12030	1
3. Local Government Affairs	968822*	95
4. Auxiliary Services	11567	1
Total:	1015860	100

 

Programme:	1995/6
	R’000	%
1. Administration	35401	3
2. Intergovernmental Relations	11601*	1
3. Local Government Affairs	1192359*	95
4. Auxiliary Services	13578	1
Total:	1252939	100

 

a. In general 46% reduction between 1995 and 1998.

3. An example of gender analysis

Local Government Infrastructure and Planning

1. Municipal Infrastructure (R3,781 million '97/8)

a. MIIF
1. Framework to assist municipalities deliver "basic level" of local government services within 10 year time period.
2. Subsidised infrastructure investment.
3. Maintenance cost-recovery through payment for services.

b. Infrastructure Programmes (CMIP, EMIP, MIP)
1. 6,5 million of targeted 8 million people reached
2. Provincial/demographic spread

c. Women and Men as Beneficiaries?
1. Results for poor, rural people and women?

Household income distribution in urban and rural areas: 1995

Income per month	Rural areas
Less than R800	60%
R800 - R1 500	20%
R1 500 - R3 500	15%
Above R3 500	5%

 

Income per month	Urban areas
Less than R800	22%
R800 - R1 500	22%
R1 500 - R3 500	20%
Above R3 500	36%

 

Source: DCD, 1997f

2. Synergism/co-operation between housing and/or land and/or infrastructure subsidising programmes?

4. 1997/8-1998/9 DCD Budgets

Programme 1997/8 Notable Shifts

	R’000
1. Administration	17 066	CTL and VS out.
2. Constitutional Development (IGR)	10 731	Incorporates Traditional Affairs CD (R 4 287 mil) Constitutional Affairs (edu) increase to R 6 462 mil
3. Local Government	770 207	Increase in number of programme line items Majority of Programme for Transfers funds CMIP (BCIG included) Equitable Share
4. Auxiliary Services	13 593	CTL and VS in Commission for Cult, Rel., Ling. Communities Training Fund Political Parties fund
Total**:	811 597	**Includes Current, Capital and Transfers

 

Programme 1998/9 Notable Shifts

	R’000
1. Administration	18 209	CTL and VS out.
2. Constitutional Development (IGR)	15 119	Incorporates Traditional Affairs CD (R 4 287 mil) Constitutional Affairs (edu) increase to R 6 462 mil
3. Local Government	2 921 962	Increase in number of programme line items Majority of Programme for Transfers funds CMIP (BCIG included) Equitable Share
4. Auxiliary Services	83 322	CTL and VS in Commission for Cult, Rel., Ling. Communities Training Fund Political Parties fund
Total**:	3 038 622	**Includes Current, Capital and Transfers

 

CMIP AND EQUITABLE SHARE: COMMENTS

POSITIVE SOME QUESTIONS

EQUITABLE SHARE
FORMULA BASED DISTRIBUTION 50 % weighting of poor populations	PHASE-IN OVER 7 YEARS IN RURAL AREAS – SHORT TERM BACKLOGS REMAIN?
NATIONAL-LOCAL GOVT DISTRIBUTION	CAPACITY AT LOCAL GOVT ? CAPACITY W/IN DCD?
COMMITMENT TO ADDRESS SPILLOVER AND EXTERNALITIES AT LOCAL LEVEL	HISTORICAL POLIITCAL CONFLICTS?
CMIP
DECREASE IN ALLOCATION 1998/9	SUSTAINABILITY?
BCIG NOW INCLUDED	RURAL WATER SUPPLY GRANT (DWAF)?
	COHESIVENESS W/ EQUITABLE SHARE DISTRIBUTION?

 

Appendix 2: A PRESENTATION BY THE CHAIRMAN OF THE VOLKSTAAT COUNCIL

, PROF HCG ROBBERTZE, ON 12 MAY 1998 IN THE OLD ASSEMBLY CHAMBER, CAPE TOWN, DURING THE BUGET HEARINGS BEFORE THE PORTFOLIO COMMITTEE ON CONSTITUTIONAL AFFAIRS.

In the past the Council concentrated to a large extend on the philosophy (notion) of self-determination, the demarcation of territories favourable for Afrikaner self-determination; self-determination in international context and the history of Afrikaner's self-determination. The Council also submitted a substantial number of proposals to the Constitutional Assembly

With the promulgation of the new Constitution, a shift in emphasis took place in the activities of the Council. In the light of the realities of the New Constitution as well as the reality of the Council's Budget, which was drastically reduced during the past financial year, the Council however, continued its research.

According to the above mentioned realities and its own research findings the Council reconsidered its future task and responsibilities. The findings can be summarized as follows:

1. Cultural Self-determination is necessary. The Constitution makes provision for a Commission for the promotion and protection of the Rights of Cultural, Religious and Linguistic Communities as well as for the establishment of an Afrikaner Council (art.185) The Volkstaat Council held a national conference in March 1997 to discuss this particular article. During the discussions it became clear that the establishment of Afrikaner Councils at all three tiers of government, with appropriate powers and functions, will contribute towards the stability of the South African society at large. Such Councils will enable Afrikaners to feel content and secure. Such a step will also enable Afrikaners to make a positive contribution towards the economic, social and political development of South Africa. It will also ensure the loyalty of the majority of Afrikaners to South Africa.

2. However, cultural self-determination cannot be separated from territorial self-determination. Four territories were demarcated wherein territorial self-determination could be possible for the Afrikaner. Therefore the Council continued its research in these identified territories which have the potential to develop into autonomous Afrikaner areas. In this regard, the Council's research includes an investigation into the establishment of structures for the political empowerment of the Afrikaner in these areas.

The above research had resulted in five (5) reports and three (3) monographs which were published during the past financial year. The Council liased on a continuous basis with parties and different groups which are in favour of a Volkstaat as well as with non-supporters in order to get a balanced view.

In short, the Council in its current research programmes is busy investigating the possibility of the practical implementation of territorial self-determination in the
Northwestern Cape, the Eastern Transvaal, the Bosveld Area and the Pretoria/Centurion Area. The granting of a measure of self-determination for the Afrikaner in these areas, can play an important role to enhance peace, stability and progress in the country at large. It can also contribute towards the economic prosperity of these areas in particular.

Due to the significant differences between the demarcated identified areas, the Council conducted specific research programmes in respect to each area. Research be applicable to all areas is still be done. In this regard the emphasis now is on the economic, fiscal and constitutional implications and arrangements.

The idea of self-determination is still very much alive amongst Afrikaners. This concept therefore cannot be ignored as is emphasised by relevant International examples of cultural and territorial self-determination as investigated by the Council.

The Council will therefore continue its research on cultural self-determination in the form of Afrikaner Councils which is gaining, according the Council's findings, increasing support amongst Afrikaners. Research results in this regard are available to Afrikaners who want to establish such councils. As mentioned earlier, research regarding territorial self-determination in the four identified areas will be continued.

The Council endeavour to make sensible and well-balanced proposals to the Government in order to give effect o the aspirations of Afrikaners. To accomplish this, the budget of R1 245 000 is totally insufficient and I am of the opinion that this budget was allocated to us on the assumption that the Council will terminate during September 1998.

However, the Council is of the opinion that it cannot be terminated until its research programme is completed and constitutional arrangements for the practical realisation of Afrikaner Self-determination are in place.

Appendix 3: COUNCIL OF TRADITIONAL LEADERS
1997/98
Budget Actual
Personnel expenditure: 200 000 - 247
Administrative expenditure: 987 000 - 672 841
Stores and livestock : 73 000 - 8 229
Equipment: - - 840
Professional and special
Services: 160 000 - 11 056
Transfer payments - -
Miscellaneous: 3 000 - 10 000
Total: 1 423 000 - 703 214

1998/99
Personnel expenditure: 340 00
Administrative expenditure: 1 400 000
Stores and livestock : 400 000
Equipment: -
Professional and special
Services: 1 110 000
Transfer payments -
Miscellaneous: -
Total: 3 250 000

Appendix 4: Annual Report of Department (Extract)
PROGRAMMES FOR 1998/99 FINANCIAL YEAR

 

VOTE 9: CONSTITUTIONAL DEVELOPMENT

The budget of the Department of Constitutional Development for 1997/98 was R682,6 million. However, an additional appropriation of R473,5 million is covered in this year's Adjustments Estimate.

The amount rolled over from the 1996/97 financial year and included in the Adjustments Estimate contains, inter alia, expenditure on the municipal infrastructure programme of R444,1 million, the infrastructure investment framework of R1,4 million, project viability of R7,6 million, Presidential awards for community service of R11,3 million, the preparation of the White Paper on Local Government of R1,9 million and the training of rural councillors and municipal officials of R7 million.

The vote of the Department is broken down into the following programmes:

· Administration

· Constitutional Development

· Local Government

· Auxiliary and Associated Services

ADMINISTRATION

The provision for this programme will increase in 1998/99 and will remain virtually static for the outer two years with provision only being made for inflation and the improvement of conditions of service. The anticipated actual expenditure for 1997/98 is R24,1 million which includes expenditure for the Volkstaat Council and Council for Traditional Leaders which are now provided for under the programme, Auxiliary and Associated Services.

CONSTITUTIONAL DEVELOPMENT

This programme is divided into three main subprogrammes, namely Constitutional Affairs, Co-operative governance and Provincial Affairs and Traditional Affairs, which represent the line function activities and it is envisaged that these will remain for the period of the medium term expenditure framework. The budgetary provision will be increased from R10,7 million in 1997/98. The anticipated expenditure in 1997198 is R11,9 million.

The following policy initiatives were launched during 1997/98 and will be continued during this budgetary cycle.

Green Paper and White Paper on Traditional Leadership

The need for a comprehensive policy document on traditional leadership and institutions was highlighted on various occasions during 1997/98. Such a document will urgently be drafted to conceptualise and crystallise the position, function, role and responsibilities of these leaders and institutions within the present constitutional dispensation.

Remuneration of Traditional leaders (Kings, Paramount Chiefs and Chiefs) from national level

During 1997/98 a policy decision was made to remunerate traditional leaders from the national government. Fundamental preparations and research in this regard was conducted during 1997/98. In 1998/1999 effect will be given to the goal of parity and uniformity regarding the remuneration of traditional leaders by transferring the remuneration function, on an agency basis, from the provinces to the national government. At this stage the appropriation of the required funds will remain on provincial budgets.

Capacity Building of Traditional Leaders and Traditional Institutions

The need for capacity building for traditional leaders and institutions is a sine qua non for their accommodation in a democratic dispensation. Non-financial assistance will be given to the respective provincial administrations in their programmes to give effect to the policy objective to build the capacity and participation of traditional leaders and their institutions in aspects such as community empowerment, development, the administration of land and participation in local government.

Dispute Resolution

Re-evaluation, in co-operation with the provinces, regarding succession criteria as well as recognition of new traditional leadership positions and communities to ensure uniformity was identified and will be given content via research, co-operation with the relevant provinces and communities in the forthcoming years.

Constitutional Education

With the adoption of the 1996 Constitution, South Africa moved from a parliamentary form of state to a fully-fledged constitutional state. This move to a form of state based on the supremacy of the Constitution has fundamental implications for the daily existence of South African citizens. There is consequently a need for all South Africans to be educated and informed about these changes, hence an outreach programme is to be launched and copies of the Constitution will be printed and distributed.

Constitutional Implementation, Research and Advice

The overall objective of the implementation process is to ensure that the Constitution and its goals are successfully given effect to by the various role players through proper management and planning and by means of effective co-ordination, facilitation and integration.

Facilitation and Co-ordination of Provincial Development Planning

The Department is inter alia responsible for evaluating the status, and rendering advice on the facilitation and co-ordination, of provincial development planning. Provincial Growth and Development Strategies (PCDSs) were analysed and evaluated, and the Working Group compiled a report on investment planning which was submitted to the Intergovernmental Forum on 17 November 1997. A beginning was made to study and evaluate development strategies, focusing not only on financial, physical and spatial aspects but also taking into account needs in respect of, and effects on, social and administrative aspects.

Border Disputes

During the past financial year the Department has dealt with several disputes involving different provinces over the changes/amendment of provincial boundaries, such as Bushbuckridge, Marble Hall/Groblersdal, Balfour and Umzimkulu. An annual budget provision has been retained to cover the costs of such dispute settlement.

Intergovernmental Relations

A discussion document on co-operative government setting out the main strategic issues affecting all three spheres of government is to be released early in 1998 and will serve as the base document for consultations in the process to prepare a Green Paper by the end of 1998 and a White Paper in 1999. The process is being co-ordinated by two committees at both official and political level with representatives from the National as well as Provincial Governments.

LOCAL GOVERNMENT

Local government in South Africa has been given a distinctive status and role in building democracy and promoting socio-economic development by the Constitution, and the key role of this programme is to give effect to this new vision for local government. This is translated into the following key programmes:

· overseeing the completion of the local government transition as established by the Local Government Transition Act, and in particular finalising policy for the final phase of the transition through the White Paper on Local Government; drafting and administering legislation in order to give effect to key constitutional provisions, e.g. the Organised Local Government Act;

· co-ordination of training and capacity building programmes for local government;

· monitoring financial problems of municipalities and co-ordinating a national programme of intervention in order to stabilise municipal finances;

· co-ordinating the Masakhane campaign;

· developing policy regarding ways to improve municipal revenues, including tariff structuring, credit control, property taxation, rationalising intergovernmental grants, and new revenue sources;

· improving access for all South Africans to essential municipal services through a co-ordinated programme of public and private investment in municipal infrastructure - this includes a major programme of capital investment and grants managed in partnership with provinces and municipalities, and innovative forms of public/private partnerships to leverage private investment;

· programmes to promote integrated development planning and local economic development by municipalities;

· co-ordination of disaster management policies and programmes; and

· co-ordination of municipal data collection and reporting.

The following are the main policy initiatives and functions undertaken in 1997/95 and to be continued through this budgetary cycle.

Local Government transition

The Constitution of South Africa sets a framework in terms of which a new policy must be formulated for local government and such policy had to be developed with the full participation of key role-players and the public at large. A three phase approach was embarked upon under the guidance of a White Paper Political Committee and a Working Committee.

The first phase of consultations resulted in a Discussion Document published in April 1997, containing the initial strategic questions to be addressed in the White Paper. The second phase, which consisted of extensive research processes (both primary and secondary research), provincial and local workshops and other consultation mechanisms, resulted in the Green Paper on Local government, which was released for public comment in October 1997.

The third phase, consisting of Portfolio Committee hearings, public submissions and consultative conferences, resulted in the White Paper on Local Government, which addresses the following matters:

· the current system of local government, including the existing settlement patterns and trends;

· the implications of local government as a sphere of government in its own right, the co-ordination of national departmental programmes which impact on local government, and the role of organised local government and horizontal relations between municipalities;

· working with local communities on sustainable strategies to meet their needs, and approaches which can assist Municipalities to become more developmental; institutional systems, including the different categories of local government, the relationship between traditional leadership and local government, and the establishment of a Demarcation Board;

· the political structures and electoral systems of future local government;

· organisational transformation, service delivery, capacity building and human resource development and the labour relations system;

· a framework for a new municipal financial system; and

· the transformation process and programme.

Key legislation which will follow is the Demarcation Bill, the Local Government Elections Bill and legislation dealing with political systems, powers and functions, local government administration, and regulation of Schedule 48 and 58 matters. The establishment of the Demarcation Board, and supporting the process of redemarcation, will be major areas of work during 1998, and serve as key mechanisms for implementing the White Paper recommendations.

Other legislation (1997/98)

The Organised Local Government Act, 1997 was promulgated on 12 November 1997 and provides, for the first time, that local government can participate in the law making process at national level through the NCOP and in the process of determining the equitable share of revenues through the FFC.

Regulations concerning by-elections and voters' rolls were issued in terms of the Local Government Transition Act, 1993 and municipal demarcation boards were re-established in the provinces and regulations defining their operation issued. The Transfer of staff to Municipalities Bill has been finalised after extensive consultation

within government, and tabled to parliament for consideration.

Local Government Training

The current system of local government training is not effective and a new system has to be developed to capacitate municipal administration.

Training programmes need to be more co-ordinated and efficient, and responsive to the new training needs of local government. As an alternative to the current arrangements the following measures are being considered for early implementation:

· Tendering out training in order to achieve competitiveness amongst providers;

· Appointment of a smaller interim Training Board with skilled members; and

· Shifting the focus of training to key national priorities.

The long term training system will be in line with the skills Development Bill to be tabled during 1998, and transitional arrangements for local government will be included in this Bill.

A major capacity building programme for local government will be launched during 1998 in collaboration with provincial and local government, and a transitional fund will be established to support the transformation process.

Municipal International Relations

The Policy Framework on Municipal International Relations is expected to be in force from 1 April 1998. It is also foreseen that a Local Government Desk with SADC will be established in 1998.

Project Viability

Project Viability was established by a joint resolution of local government and finance MECs and Ministers in order to deal with the financial problems faced by municipalities. It consists of the following elements:

· a national monitoring programme: Questionnaires are sent to every municipality on a quarterly basis. Replies to these questionnaires have established that approximately 260 municipalities seem to be experiencing financial difficulties (September 1997);

· management audits: Provincial Task Teams have been formed in all the provinces to perform management audits in those municipalities seemingly in financial difficulties. The target set for 1997 was to perform 100 audits and to date a total of 202 audits have been completed; and

· management support programmes: It was estimated that 40 municipalities will need intervention in terms of Section 10 G(2) (m) of the LGTA. The completed management audits revealed that approximately 91 municipalities need help in the form of financial management support and mentoring.

The expected expenditure on this project in 1997/98 is R5,3 million. The emphasis during 1 998 will be to provide a countrywide programme of intervention and support concentrating on management support and continual monitoring. In addition legislation on monitoring, oversight and intervention in municipalities will be prepared.

Masakhane Campaign

In the past year the Masakhane Campaign made significant strides on several fronts. These advances were made within the context of a revitalised campaign predicated on mass mobilisation, capacity building, showcasing delivery, forging partnerships and rewarding communities and councils that are implementing changes in their areas.

In the new budget cycle the challenge is to consolidate and advance the campaign. A programme of action resting on four pillars has been developed -good local governance, facilitating the provision of services, stimulating local economic development and strengthening feelings of a common citizenship.

The programme will start with a national summit of women on Masakhane, a youth mobilisation programme and the staging of the national events on the awards. The campaign will include sectoral events to involve Departments and stakeholders, and will reach a climax with the four week in September 1998.

Municipal Revenues and Financial Management

If local government is to perform the functions assigned to it and reduce its reliance on intergovernmental transfers, it needs access to adequate sources of revenue. There are already in existence a wide variety of revenue options available to local government, but local government has to put in place mechanisms to fully exploit these revenue sources.

During 1998 the Department will establish the mechanisms and support systems for administering the equitable share of revenue for local government, including funding for SALGA.

The Department has embarked on a policy process which will address the issues of property taxation, tariff structuring, the pricing of municipal services and reform of RSC/JSB levies.

Guidelines have been developed on credit control and mechanisms to deal with the indigent and these will be monitored as part of Project Viability.

The Department commissioned a study into municipal accounting and financial reporting in 1997 in order to recommend areas of reform that will result in a transparent and uniform system of municipal accounting and financial reporting. The Department of Finance has been charged with testing these recommendations against the South African context, further refine the recommendations, and establish an implementation process.

The Joint Committee on Municipal Finance (JCMF), representative of all relevant role- players, was established during 1997 to discuss and make recommendations regarding local government financial matters. The purpose of the JCMF is to serve as a discussion forum where the local government sphere, the provincial government. the national government and relevant professional bodies can consider financial matters in the local government context and formulate recommendations in this regard.

Public/Private Partnerships

The Department has sought to extend the delivery of basic services by finding ways of leveraging private sector finance for infrastructure projects. One of the ways to do this has been through setting up business partnerships between municipalities and private companies in order to finance, extend, operate and/or manage infrastructure services. A total of 18 pilot projects have been established in urban and rural areas country-wide, including water, sanitation, refuse collection and transport projects. A total amount of R20 million will be spent on these projects during the 1997/98 financial year, while the total capital invested. by the private sector is anticipated to be over R1 billion.

In addition a capacity building unit, known as the Municipal Infrastructure Investment Unit, has been set up under an advisory board. The MIIU will advise municipalities on innovative ways to maximise private sector funding of projects, and it will provide grants to municipalities to enable them to hire professional advisors to put together financing deals.

On the basis of the above experiences with PPPs the Department will finalise a clear regulatory framework for private sector participation in municipal service delivery. The framework will address issues such as tendering and procurement by municipalities, monitoring compliance with contracts, and resolving disputes relating to PPPs.

Municipal Infrastructure Programme

The Municipal Infrastructure Programme (MIP) was launched in the 1994/1995 financial year. The specific purpose was to provide some of the basic short-term needs (services and sanitation) to communities as outlined in the Reconstruction and Development Programme (RDP). In the 1995/96 financial year the extension of this programme was approved known as the eMIP programme. Amounts of R850 million for the MIP and R650 million for the eMIP were originally made available to the Department. The programmes reached their peak during the 1997/98 financial year and an amount of R816 million was spent to finalise the MIP and eMIP programmes during this financial year which provided both internal and bulk infrastructure to communities.

There were in total 1058 projects supported by the programmes, including water, sanitation, roads, refuse, electricity and community health care facilities.

A total of 242 520 people have been employed on projects through the programme.

Accredited training was provided to 78 870 people and non-accredited training to 270 982 people. A total number of 1569 Small, Medium and Micro Enterprises (SMME's) were utilised over the duration of the programme.

New or rehabilitated infrastructure services were provided to approximately 12 million beneficiaries.

Based on the principles of the Municipal Infrastructure Investment Framework Programme, the Consolidated Municipal Infrastructure Programme (CMIP) has been introduced with the aim of consolidating the municipal infrastructure programmes of Government into one coherent process. This programme is designed to further the aims of the RDP and is intended to:

· provide internal bulk and connector infrastructure in support of the housing programme to needy South Africans in a way that enhances the integration of. previously divided areas. This is applicable to 65% new projects, 25% rehabilitation/upgrading projects, and 10% special cases; and

· enhance the developmental impact of the delivery process by focusing on the transfer of skills and promotion of Small, Medium, and Micro Enterprises (SMMEs), using labour intensive construction processes and maximising job creation opportunities.

During the 1997/98 financial year a lot of attention was paid to introducing the CMIP programme to all the municipalities and other stakeholders, the prioritisation of business plans, setting up a programme management system and starting a number of pilot projects. Implementation of projects will commence in earnest during the 1998/99 financial year.

Municipal Infrastructure Investment Framework

The Department has also commissioned the DBSA to undertake further policy work on the financial framework for municipal infrastructure investment. The objectives of the study are inter alia to:

· provide a basis to address the most pressing short term financial and fiscal issues facing local government;

· refine the basic policy and to design institutional and financial mechanisms for a reformed local government fiscal and financial system which accord with domestic realities and which are able to ensure delivery envisaged by the Reconstruction and Development Programme; and.

· develop a coherent and generally accepted approach to municipal infrastructure investment, investment assessment and business planning practices to support municipal infrastructure investment.

This work will also be concluded by the end of the 1997/98 financial year.

To ensure sustainable service delivery the Department commissioned a capacity audit that will ultimately lead to a national capacity building programme on municipal infrastructure.

Integrated Development Planning and Local Economic Development

Integrated development planning by municipalities is key to the realisation of their developmental potential, and linking poverty alleviation to local economic development. The Department has worked with municipalities to produce policy and guidelines on these matters, and is implementing these in a number of pilot projects across the country.

The Decentralised Development Planning Programme is aimed at supporting local authorities to plan, and set poverty eradication targets through an Integrated Development Plan. This programme will benefit up to 30 municipalities over a 3 year period. A poverty assessment will form an integral part of a municipality's plan.

Additional activities to support integrated development planning are:

· finalisation of the Planning Support Kit developed in conjunction with CSIR;

· review of the legislation for integrated development planning.

· Establishment of a Training and Capacity Development Module for implementation of lDP's.

A specific programme focusing on local economic development has been established. It focuses on supporting 10 local authorities in designing specific poverty alleviation strategies by using the local economy as a starting point. The programme is supported by official development aid and R 1 million has been committed to this programme. A full scale implementation of this programme will benefit up to 20 local councils in South Africa.

In addition a national LED practitioners conference will be held, and a training programme on LED launched.

Disaster Management

Over the past few years disaster management in South Africa has undergone a shift from the traditional re-active approach towards a pro-active and preventive approach. During 1997 Cabinet decided that:

· A Green Paper on Disaster Management should be compiled before the end of 1997 which would culminate in a White Paper and relevant legislation;

· An Inter-Ministerial Committee for Disaster Management be established; and

· A National Disaster Management Centre should be established to co-ordinate all disaster-related activities.

The Green Paper on Disaster Management was approved by Cabinet on 3 December 1997 and will be distributed early in 1998. It is anticipated that the subsequent White Paper and legislation will be finalised during 1998, and that a Disaster Management Centre will be established.

AUXILIARY AND ASSOCIATED SERVICES

The main sub-programmes are the following:

Training Fund for Local Government Affairs

In terms of the Local Government Training Act, 1995, the Department makes an annual transfer to a fund established in terms of the Act. In 1997/98 the transfer was R8 million. These funds together with the levies collected from municipalities fund the operation of a Board and fifteen local government training centres.

Volkstaat Council

An amount will be provided in 1998/99 and no further provision is made as it is anticipated that the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities will be functional by that stage.

Council for Traditional Leaders

Although the Council was launched on 18 April 1997 it will begin to function effectively during the 1998/99 budget year. Support staff to the Council will be appointed in the 1998/1999 financial year and this fact is reflected in the increase budgeted for. The Council will research and advise on all critical issues relating to traditional leadership and institutions and will also give guidance and directives to the various provincial Houses of Traditional Leaders.

Vulnerable Indigenous Communities

Preliminary research pertaining to the constitutional accommodation of these communities (e.g. Griqua, Nama and Khoi) was started during 1997/98 and will be fundamentally investigated during the forthcoming budgetary year.

Contribution to the Represented Political Parties Fund

The fund has been established in terms of legislation promulgated in 1997 and provision has been made to transfer the required amounts from 1998/1999. Draft

regulations have been prepared for presentation to Parliament.

Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities

Regarding the activities relating to constitutional implementation specific focus will be placed on research regarding the establishment of the Commission as provided for in section 185 of the Constitution. The establishment of this Commission will have financial implications which will be determined once a political decision on when to establish the Commission has been taken.

1998 LEGISLATION PROGRAMME

Copies of the programme are attached.

A. SECTION 155(3) (DEMARCATION LEGISLATION)

Responsible persons: Advocate Gerrit Grove and Professor Christina Murray.

Bill to be discussed at MINMEC - 3 February 1998.

Publication of the Bill and consultation with the various MEC's for local government - 13 February 1998

Return date for submissions - 13 March 1998.

Submission of Bill to the Cabinet Committee - 25 March 1998.

Approval by Cabinet - 1 April 1998.

Submission to State Law Advisors - 3 April 1998.

B. SECTION 157, 158 AND 159 (ELECTION LEGISLATION)

Responsible persons: Advocate Paddy Roome.

NOTE: Advocate Roome's term of appointment expires at the end of March 1998

First draft - 16 February 1998.

Meetings with legal team to commence - 18 February 1998.

Finalisation of Bill - 16 March 1998.

Publication of the Bill and consultation with the various MEC's for local government - 20 March 1998

Return date for submissions - 20 April 1998.

Submission of Bill to the Cabinet Committee - 6 May 1998.

Approval by Cabinet - 13 May 1998.

Submission to State Law Advisors - 15 May 1998.

C. SECTION 155(2) AND 155(3)(c) LEGISLATION (POLITICAL SYSTEMS, TYPES, POWERS AND FUNCTIONS)

Responsible persons: Dr Petra Bouwer and Mr Anton Venter.

First draft - 16 February 1998.

Meetings with legal team to commence - 1 8 February 1998.

Finalisation of Bill - 16 March 1998.

Publication of the Bill and consultation with the various MEC's for local government - 20 March 1998.

Return date for submissions - 20 April 1998.

Submission of Bill to the Cabinet Committee - 6 May 1998.

Approval by Cabinet - 13 May 1998.

Submission to State Law Advisors - 15 May 1998

D. SECTION 153 READ WITH SECTION 155(7) (ADMINISTRATION LEGISLATION)

Responsible persons. Dr Petra Bouwer and Mr Andrew Gray.

First draft - 1 June 1998.

Meetings with legal team to commence - 3 June 1998.

 

Finalisation of Bill - 22 June 1998.

Publication of the Bill and consultation with the various MEC's for local government - 26 June 1998.

Return date for submissions - 27 July 1998.

Submission of Bill to the Cabinet Committee - 19 August 1998.

Approval by Cabinet - 26 August 1998.

Submission to State Law Advisors - 28 August 1998.

E. SCHEDULE 4 AND 5 MATTERS (MINIMUM STANDARDS LEGISLATION)

Responsible persons: Dr Petra Bouwer and Anton Venter.

Planning meeting between legal services and line functionaries - 16 July 1998.

First draft - 31 August 1998.

Finalisation of Bill - 30 September 1998.

Publication of the Bill and consultation with the various MEC's for local government - 2 October 1998.

Return date for submissions - 2 November 1998.

Submission of Bill to the Cabinet Committee - 25 November 1998.

Approval by Cabinet - 2 December 1998

Submission to State Law Advisors - 4 December 1998.

NOTE: Indications are that the DFID funds of R280, 000 will not be sufficient to finance the legal team assisting the Department with the drafting of local government legislation.

F. REMUNERATION OF PUBLIC OFFICE BEARERS BILL (SECTION 219)

Responsible persons. Mr Anton Venter.

Submission to State Law Advisors - 3 December 1997

Introduction into Parliament - 30 January 1998

G. TRANSFER OF STAFF TO MUNICIPALITIES BILL

Responsible persons: Messrs Fanie Louw and Anton Venter.

Submission to State Law Advisors - 27 November 1997.

Introduction into Parliament - 30 January 1998.

H. CONSTITUTION OF THE REPUBLIC OF SOUTH AFRICA AMENDMENT BILL (HUMAN RIGHTS COMMISSION/ALTERNATE MEMBERS OF JUDICIAL SERVICE COMMISSION AND SECTION 192)

Responsible persons: Dr Petra Bouwer and Mr Andrew Gray.

First draft for submission to Minister - 16 February 1998.

Submission of Bill to the Cabinet Committee - 25 February 1998.

Approval by Cabinet - 4 March 1998.

Publication of the Bill and consultation with the various MECs for local government - 13 March 1998.

Return date for submissions - 14 April 1998.

Submission to State Law Advisors - 16 April 1998.

I. CONSTITUTION OF THE REPUBLIC OF SOUTH AFRICA SECOND AMENDMENT BILL (CROSS BORDER MUNICIPALITIES AND ASSIGNMENT OF LAWS)

Responsible persons. Dr Petra Bouwer and Mr Andrew Gray.

First draft for submission to Minister- 16 February 1998

 

Submission of Bill to the Cabinet Committee - 25 February 1998.

Approval by Cabinet - 4 March 1998

Publication of the Bill and consultation with the various MEC's for local government - 13 March 1998.

Return date for submissions - 14 April 1998.

Submission to State Law Advisors - 16 April 1998.

NOTE: The finalisation of this Bill will depend on the outcome of the two legal opinions which are being awaited from the State Law Advisors.

J. PENSION BENEFITS FOR COUNCILLORS OF LOCAL AUTHORITIES AMENDMENT BILL

Responsible persons: Messrs Fanie Louw and Anton Venter.

A court case is presently pending which directly relates to the proposed amendment. The Durban Metropolitan Substructure and the Transvaal Municipal Pension Fund are presently negotiating a settlement on the basis that the Act be amended.

Once the aforementioned parties reach an agreement, the Bill will be submitted to the Minister for his concurrence.

The Bill has already been drafted.

K DISASTER MANAGEMENT BILL

Responsible persons: Dr Petra Bouwer and Mr Peet Stopforth.

Finalisation of the White Paper on Disaster Management - 22 June 1998.

Draft Bill to be submitted to Minister - 3 August 1998.

Publication of Bill - 14 August 1998

Return date for submissions - 14 September 1998

Cabinet Committee - 14 October 1998

Approval by Cabinet - 21 October 1998

Submission to State Law Advisors - 23 October 1998

L. DETERMINATION OF DELEGATES (NATIONAL COUNCIL OF PROVINCES) BILL

Responsible persons: Dr Petra Bouwer

Bill to be submitted to the Minister - 13 February 1998

NOTE: Other time frames in respect of this Bill will depend on a decision by the Minister as to whether he approves the draft Bill.

M. COMMISSION FOR THE PROMOTION AND PROTECTION OF THE RIGHTS OF CULTURAL, RELIGIOUS AND LINGUISTIC COMMUNITIES BILL

Responsible persons: Dr Petra Bouwer and Mr Johan Beukman.

NOTE: The finalisation of this Bill depends on a political decision regarding the urgency thereof as well as the availability of funds.

N. REPEAL OF THE LOCAL GOVERNMENT TRAINING ACT

Responsible persons: Dr Petra Bouwer and Mr Robert Willemse

NOTE: Proposals for the repeal of this Act and the inclusion of transitional provisions in the Skills Development Bill have been approved by the Minister and submitted to the Department of Labour.

Appendix 5: ANALYSIS OF VOTE NO. 9

The main programmes, which have been added to the department's vote, are the following:

· Local government administration in the amount of R951 million being the transfer of funds to those provinces which administer the so-called R293 towns.

· Local government transition support in the amount of R181 million being the transfer of funds to provinces to financially support municipalities, which are affected by the introduction of the new formula based distribution of the equitable share.

· Local government equitable share in the amount of R1 024 million for transfer directly to municipalities.

· Local Government Demarcation Board in the amount of R15 million.

· Contribution to the Represented Political Parties Fund in the amount of R53 million.

The basic programme structure has remained the same as for the previous financial year, namely

· Administration with a growth of 6,3%

· Constitutional Development with a growth of 29,0%

· Local Government with a growth of 73,6%

· Auxiliary Services with a growth of 83,7%

If one looks at the standard items it will be seen that the main year or year changes are:

Personnel expenditure, an increase of 7%

Administrative expenditure, an increase of 43%

Stores, an increase of 74%

Professional services, a decrease of 30%

Transfer payments, an increase of 75%

Council of Traditional Leaders: 97/98 and 98/99 Budget

COUNCIL OF TRADITIONAL LEADERS

1997/98

Budget - Actual

Personnel expenditure: 200 000 - 247

Administrative expenditure: 987 000 - 672 841

Stores and livestock : 73 000 - 8 229

Equipment: - - 840

Professional and special

Services:160 000 - 11 056

Transfer payments -

Miscellaneous: 3 000 -10 000

Total:1 423 000 - 703 214

1998/99

Personnel expenditure: 340 00

Administrative expenditure: 1 400 000

Stores and livestock : 400 000

Equipment: -

Professional and special

Services: 1 110 000

Transfer payments -

Miscellaneous: -

Total: 3 250 000