Built Environment Professions Bill: further briefing

Meeting report

The Chair reminded members that the Committee had been previously briefed on the Bill. The present briefing would however cover the financial implications of the Bill as well which the previous briefing had not.

Ms Lydia Bici, Deputy Director General: Policy, reiterated much of what had been presented in the previous briefing in June 2008. The Committee was given a brief introduction and history of the built environment professions. Thereafter the Committee was provided with an outlay of the current regulatory framework and its old structure. The old structure of the Council for the Built Environment (CBE) had intended to play an overarching role over the professional councils which it had failed to do. Professional councils did not feel accountable to the CBE. Fragmented planning and implementation of policy, autonomy in activities and funding, low levels of registration, lack of accountability and governance failures and lastly the barriers to access the professions by previously disadvantaged individuals (PDIs) were the shortcomings identified. Given the shortcomings the present changes were called for in the Bill. The briefing outlined how specific provisions in the Bill addressed the shortcomings identified. The Bill empowered the new SACBE to regulate the professional councils.

Ms Bici continued with the financial implications of the Bill. She set out the financial feasibility of the process. The Committee was provided with a breakdown of projected figures for the period 2007/2008- 2010/2011 for income and expenses of the new South African Council for the Built Environment (SACBE). The figures for 2006/2007 were actual figures on which the future projections were made. The income was derived from government grants, registration fees and other sources. The expenses incurred were administrative, finance and other operating costs. The projection showed a steady increase in both income and expenditure over the period. However income from government grants displayed a decline in 2010/2011. It was the intention for the SACBE to become increasingly self sufficient and less reliant on financial assistance from government.

Discussion
The Chair asked members not to repeat questions that had been asked in the previous briefing.

Mr S Opperman (DA) referred to Chapter 2 of the Bill which made provision for the scope of the work of professions to be prescribed by regulations. He asked whether the scope of work of the professions should not be determined by the professions themselves. Why the regulation?
He also referred to the system envisaged by Chapters 2 and 4 of the Bill which provided for the Minister to regulate educational standards, curricula and duration of study. He asked for clarity on the provision.

Ms Bici stated that past experiences had shown that there was no certainty on the scope of work of professions. Different professions did identification of work separately. There was no standardization. She also noted that there were certain areas of work that did not need to be identified in the scope of work of professionals, that is, candidate persons. Ms Bici felt that the intervention by the Minister would bring about uniformity and certainty. She explained that the process would be as follows. The first inputs would be received from professionals themselves. It would then be referred to the CBE which in turn would refer it to the Minister. The point she was trying to make was that professional boards would be extensively consulted.

Ms Bici referred to the issue of duration of study and said that there would be consultation. The Department of Education would be consulted. In the past previously disadvantaged institutions had not been accredited. Hence certain institutions producing graduates were not accredited. She reiterated that the regulations would bring about certainty and uniformity. The Minister would not be taking over the role of the Department of Education.

Ms C Ramotsamai (ANC) said that the provision of financial figures for the SACBE were appreciated. She assumed that during the transitional period in order to push up registration figures of professionals, there would be adverts placed in newspapers and at colleges to inform persons about it. The process of increasing registrations would take time and sufficient registration periods should be set aside to allow for registrations. Ms Ramotsamai referred to the community representatives on the boards of professional councils and wanted to confirm that they should not be professionals themselves.

Ms Bici said that it was hoped that the community representatives would bring in a new perspective. They should however be able to discharge their duties and should for instance be able to deal with socio-economic development issues. She pointed out that in order to maximize registrations, professionals needed to be reached. There would thus be a combination of adverts and contacting professionals personally. Time periods for registrations for persons already working in the professions would be set.

Mr L Maduma (ANC) stated that there were many educational institutions that were not accredited. He asked how the Department of Public Works (DPW) was going to ensure that the Department of Education had the capacity to deal with the issue.

Ms Bici noted that the SACBE would be subject to the Public Finance Management Act (PFMA). The professional boards would however not be subject to the PFMA. The boards would thus not be able to raise funding as it would now be in the hands of the SACBE. Henceforth all registrations would be synchronized within the SACBE.

Ms Bici said that the Bill itself made reference to it being subject to the legislation of the Department of Education. DPW would be working hand in hand with the Department of Education on the accreditation of educational institutions.

The Chair noted that the Bill was welcomed as it empowered the CBE to regulate professional councils. The Bill would ensure synergy. She assumed that there would be a maximization of registrations. She added that the Bill would additionally assist in the regulation of funding of professional councils. This would be helpful, given the past imbalances between the larger and smaller councils. There would be greater balance.

Ms Tobias referred to the projected decrease in the government grant to the CBE and asked from where the funds would be raised. She also felt that the projected figures should have taken greater inflation rates into consideration than what the department had used in making its calculations.

The Chair stated that the CBE had been given the mandate to take care of strategic issues. She however pointed out that a presentation was needed on the transitional arrangements. Ms Tobias felt the Bill to be a good piece of legislation.

Ms Bici had taken heed of the Chair’s comments on inflation. A presentation on the CBE’s transitional arrangements would be done to the Committee at a later time. She referred to the projected decrease in government grants and said that it was hoped that at that time there would be economies of scale in place. The SACBE was going the route of compulsory registrations and hence more income was anticipated. It was nevertheless an administrative process. As registrations increased, it was hoped that government funding would eventually stop.

The Chair asked how professional councils would manage their funds. She also referred to issues of staff of professional councils and asked how it was to be handled. Ms Tobias felt that professional councils themselves need to present to the Committee on how they were going to manage the process. She said that at some point the issue needed to be discussed.

Ms Bici said that there would be a great deal of consolidation of staff. It was difficult to say exactly what the SACBE’s staff structure would be.

The Chair reiterated the importance of a presentation on transitional arrangements of the CBE. Greater clarity was needed on financial implications and issues of human resources. She noted that the transitional arrangements could have a serious bearing on the operations of the SACBE.

Mr Maduma suggested that the department be clear on its advocacy programme on how to attract students to professions. It would be a sure way to increase registrations.

Ms Bici responded that the department had a skills development strategy even though it was still small. It looked at the whole education pipeline. It started at grade 10. The department intended spending more funds on it over the next three years. The idea was to transfer the programme to the professional boards when they were constituted. 

Mr Sipho Madonsela, Chairperson of the CBE, referred to the issue of community representatives and said that it could not just be any persons. The persons should have competencies in corporate governance, finances etc. He also noted that funding of the entity was being looked at. Projections of costs were being done.

The meeting was adjourned.