Expanded Public Works Programme Phase 2: briefing by Minister

Meeting report

Minister’s briefing on Phase 2 of the Expanded Public Works Programme
Minister Doidge emphasised the importance of the relationship with parliamentary committees. Cabinet had to bounce things off the portfolio committees. He valued his own interaction with committees.

He referred to the EPWP Phase 2 goal of creating 4, 5 million 100-day work opportunities in 5 years. It was not currently possible to create enough permanent or decent jobs. The goal had been set to halve unemployment by 2014, but a different model was needed to also improve tenure and security of work.

R 5 billion had been allocated over the Medium Term Expenditure Framework (MTEF) to scale up the EPWP. Education was deemed important, to ensure early childhood development. The EPWP straddled many departments, with delivery at the local government level. Checks and balances were in place. The incentive scheme implied that the meeting of targets had to be monitored, and paid for.

He posed the question of how incentives could be worked back into the programme. What did the Committee think?

Targets had to be met on the provision of labour-intensive jobs. There had been the acquisition of new equipment by municipalities, which was costly to repair once it broke down. That money could have been spent on job-creation.

Meetings had been held with cluster committees of cabinet, and the Presidential Co-ordinating Committee had held a roadshow with cabinet departments. Slots had been obtained to present EPWP at the provincial level. All spheres of government were encouraged to buy into the programme.

The 4, 5 million target could be exceeded. Phase 2 would commence in the first week of the new financial year, with the DPW going to the provinces. There were serious budget constraints. Committee members were invited to attend provincial cabinet meetings.

The Western Cape had a skills database, where it was possible to check who had received skills training in electrical work and brick laying, for example. Challenges existed with regard to the Department of Labour, in terms of falling in with the programme. A meeting had been suggested at NEDLAC, and that department had to be confronted with the fact that it was not playing its part in skills development.

Landcare underspending was another challenge. Oversight was needed. 75% of funding had remained unspent. Many work opportunities could be created by attending to needs for fencing in certain areas, for example.

Once the budget had been presented, the marketing of EPWP could proceed. EPWP had to become a household name, when it came to employment opportunities.

Director General presentation on Phase 2 of the Expanded Public Works Programme
Mr Manye Moroka, DPW Director General, pointed out that data used for the presentation, had been available during August of the preceding year.

The first phase of the EPWP had achieved its ‘1 million work opportunities’ target a year ahead of schedule. The second phase of the EPWP was geared towards contributing to halve unemployment by 2014. Cabinet approved EPWP 2 proposals in June 2008 and the Business Plan at the Lekgotla in January 2009.

R4, 2 billion had been allocated to create the equivalent of 4,5 million 100-day work opportunities in 5 years. Creation of paid work was the prime objective. Each government body was to have annual employment creation targets. A fiscal incentive for public bodies to create EPWP employment consisted of providing R50 for every person-day of work created.

Capacity outside the state, such as non-governmental organizations (NGOs), community-based orgnisations (CBOs), and Non-profit organizations (NPOs) was to be mobilised. Parastatal bodies would be encouraged to buy into the programme. Each public body was to have a clear target for each financial year. Targets would be adjusted in line with available budgets and according to performance.

The R50 for every person-day of work created would be paid to public bodies. R4, 2 billion had been allocated for that purpose over the MTEF, and this figure could grow to R5 billion per year by 2014.

Provinces and municipalities would become eligible by reporting to the DPW. 45 municipalities had been included thus far, based on 2007/08 performance. 15 more would be taken on board in 2009/10. R201 million had been projected for incentive allocations to municipalities.

Phase 2 would witness the provision of wage incentives to the Non-State sector of the EPWP, such as NGOs, CBOs and other NPOs, whose activities created work for the EPWP target group. R80 million had been allocated to the Non-State sector for 2009/10. The Non-State sector would be managed by DPW with oversight from other key departments, and implemented with the assistance of an intermediary.

The EPWP unit would increase capacity to provide technical support to public bodies that required it.

Targets had been set for all public bodies. The EPWP unit, together with the provincial coordinating departments, would brief all public bodies about their targets. The EPWP unit was set to embark on a countrywide briefing programme.

The EPWP remained the most important vehicle for government to directly create employment for the poor. Increased accountability on EPWP performance and a fiscal incentive to reward performance could be expected to boost the scale of the EPWP over the following five years.

Strong political leadership had proved to be critical during Phase 1 of the programme, and would be equally important in Phase 2.

Mr Moroka concluded by citing railroad maintenance as an example of a labour-intensive
project that could provide employment opportunities.

Discussion
Mr H Maluleka (ANC) enquired about challenges in rural areas. How would specific rural areas be singled out for attention?

Mr Moroka, replied that when the Department had met with the provinces and priority areas had been identified.

Dr S Huang (ANC) asked if the R50 per day for every day of work created, referred to a stipend or a wage. Had it been assessed whether EPWP was successful at the provincial level? Were incentives provided for skills development?

Mr Stanley Henderson, DPW Acting Deputy Director General, replied that it was a fiscal incentive, paid to all public bodies that had succeeded in creating work above a minimum threshold. It ensured that municipalities that had over performed would be rewarded.

The 100-day work opportunities scheme was aimed at providing an average of 2 days work per week, per year. The objective was to provide regular and predictable work. The Zibambele project in KZN, in which women were employed in road maintenance, was an example of a successful project. It was hoped that the current 100 days could in future be extended.

Mr S Blanche (DA) remarked that he appreciated seeing the adoption of his past suggestions about incentives. The 100 worker days scheme would make skills upgrading possible.

Mr B Radebe (ANC) said that he appreciated the report. EPWP 1 had achieved its target, but there were still shortcomings. Regarding capacity, he saw a tendency to chop and change without adequate stabilising measures implemented.

EPWP 2 would also be based on municipalities. How would it be monitored to ensure that invested money would go where it had to? How would the meeting of targets be ensured?

Ms N Ngcengwane (ANC) asked about monitoring and feedback processes.

Mr Selby Malebye, DPW Chief Operating Officer, replied that an extensive review was underway to determine how technical capacity would be rolled out during Phase 2. A monitoring and oversight system was in place. There would be monthly, quarterly and annual reports. The Committee would be kept informed.

Mr Henderson added that non-state bodies were monitored through an accounting system. There had to be a report, before payout could commence.

Mr Moroka said that non-state sector bodies, NGOs and CBOs, had undertaken to perform, if they could be peaked against municipalities. Whoever failed to perform would be taken to task. If insufficient progress had been made during the first two quarters, benefits could be forfeited.

Mr L Maduma (ANC) enquired about a skills database. People in whom investments had been made during EPWP 1, should not fall by the wayside. Any improved abilities should be cultivated further.

The Malebye replied that a skills database for the Western Cape indeed existed.

Mr Moroka pointed out that the one million people who had actually benefited from EPWP 1, had been taken from a group of eight million ‘possibles’. There was a need for extension of benefits, new people had to be reached. That priority rendered further investment in EPWP beneficiaries, difficult.

Mr N Gogotya (ANC) referred to the claims made by then Minister Stella Sigcau about the Gundalasho project in Limpopo, two years before. If it had been so successful, why did it drop out of sight?

Mr Henderson replied that Gundalasho had been a road maintenance project, which could not be sustained indefinitely. However, it was still referred to as a model to guide labour-intensive work projects. In that respect, it had indeed been successful.

Mr Radebe wondered if the allocated amounts for Kwazulu-Natal (KZN) and the Free State, for 2009/10, would be sufficient.

Mr S Opperman (DA) pointed out that R80 million budgeted for NGOs and CBOs was no large amount. How was this allocated per province? Was there budgetary provision for monitors?

Mr Moroka responded that his Department was dealing with new terrain. The current priorities were that of ensuring delivery, compliance and proper monitoring and evaluation. The allocation spread for NGOs and CBOs was unfortunately not yet available.

With regard to KZN, he stressed that EPWP performance there had been excellent in the past.

Ms Tobias proceeded to make concluding remarks. The DPW was placing the bar high, in terms of performance. It had to be borne in mind that EPWP was a last resort employment strategy. A new model for EPWP 2 had to be considered, for it would not suffice to continue looking at the public sector only. The private sector had to train and employ people.

The buy-in of provinces into EPWP had to be reviewed. How far could various provinces run with the programme?

Compliance would have to be monitored. The competitiveness of localities for incentives had to be tested. Changes in EPWP policy had to be addressed at the political level. There was a need to train local and regional co-ordinators. There were not enough co-ordinators at ground level.

The question posed during discussion, as to whether first-phase people could be taken along into the second phase, was important.

Further presentations were needed on technical support to municipalities, and incentive schemes.

Mr Moroka replied that those matters would receive due attention. He expressed the hope to see the same faces in the Committee, after the election.

Mr Opperman announced that he too was going to retire.

Mr Maduma remarked, amidst laughter, that the Committee had benefitted from Mr Opperman’s experience as a former ANC member.

Mr Blanche expressed gratitude for the fact that different parties had been able to work together as friends in the Committee, and to help each other become better representatives of the people.

Mr N Magubane (ANC) wished everyone well on the way forward, and conferred a blessing.

The meeting was adjourned.