Question NW202 to the Minister of Sports, Arts and Culture

Reply:

Question 954, 955, 956, 960, and 1173 were responded to and feedback on question no.1175 from SASCOC is still pending and a reminder for urgent response has been sent.

National Assembly.

Recommended.

QUESTION No. 226-2021

FOR WRITTE REPLY

INTERNAL QUESTION PAPER NO.1-2021, DATE OF PUBLICATION 11 FEBRUARY 2021:

Mr TW Mhlongo (DA): TO ASK THE MINISTER OF SPORT, ARTS AND CULTURE:

(1) Whether with reference to his department’s first phase and second phase relief funding; his department conducted an audit of the R150 million relief funding; if not why not; if so what are the relevant details,

(2) a) who was appointed to audit the relief fund books, (b) what was the reasons that his department did not appoint an independent audit company, (c) what total amount was given to the sports trust to administer on behalf of his department and (d) has he found the appointments of the sports trust to be fair;

(3) whether all the relevant procedures, processes and regulations in appointing the sports trust were followed; if not, what is the position in this regard; if so what are the terms of reference of the trust? NW 229E

REPLY

1. So far, only the first phase has been audited. The rollout of the entire R150 million has not been concluded and it is expected that the next phases will also be audited when concluded.

2. (a) The Audit was conducted by both Internal Audit of DSAC and the Auditor General. Both audit outcome reports have been issued to the accounting officer of the department.

(b) The department was content with the Auditor General process, who is

independent from the Department.

(c). The total amount transferred to the Sport Trust for Relief Funding is R9.4m as per National Treasury approval.

(d). Yes, there has not been any indication that the appointment of the Sports Trust was in anyway unfair. The Sports Trust is a Non-Profit Organization that partners the Department on the delivery of sport and recreation initiatives and has proven to be efficient and effective.

3. Yes, the relevant procedures, processes and regulations were followed. Before appointing the Sports Trust to assist in managing payments to the beneficiaries, the Department obtained approval from the National Treasury.

NATIONAL ASSEMBLY

Recommended.

QUESTION No. 237-2021

FOR WRITTE REPLY

INTERNAL QUESTION PAPER NO.1-2021, DATE OF PUBLICATION 11 FEBRUARY 2021:

“Inkosi B N Luthuli (IFP): to ask the Minister of Sport, Arts and Culture:

1. Whether his Department has conducted a study to establish how the Covid-19 pandemic has exacerbated the suffering of the arts sector; If not, why not; if so, what are the details of the extent of the suffering as identified by his department;

 

2. What are the full relevant details of the beneficiaries of his department’s relief fund to date? NW204E

REPLY

1. Yes, The South African Cultural Observatory (SACO) undertook a study in the early stages of the lockdown, which was completed in May 2020, that include an online survey and an econometric analysis.

The Impact?

Approximately 600 completed surveys were received, and the survey distinguished between:

1. formal (65%) and informal businesses (35%)
2. employers (with employees) (38%) and freelancers (with no permanent employees)) 62%)
3. those who operate mainly face-to-face (31%) and those who do not operate face-to-face (69%)

Survey Responses by Domain

Domain	Percentage
Cultural & Natural Heritage	3%
Performance & Celebration	28%
Visual Arts & Crafts	16%
Books and Press	5%
Audio-Visual & Interactive Media	31%
Design & Creative Services	10%
Support Activities	6%

Formal sector operators seem to have experienced a higher proportion of cancellations of scheduled work than freelancers, possibly because of their longer-term planning horizons. Similarly, employers were more likely to have had scheduled work cancelled than freelancers. While those operating in a mostly not face-to-face mode initially experienced more cancellations (68%) than those operating mostly face-to-face, there were a greater proportion of face-to-face operations that experienced cancellations in future months.

Some respondents indicated that they were using the time productively to invest in the future of their businesses, which included:

• Moving business activities, such as meetings and production, online (35%)
• Arranging for greater flexibility to work from home (26%)
• Agreeing with clients to postpone (but not cancel) work until a future date (34%)
• Working on aspects of production (such as archiving, administration, developing creative ideas) that could be done without face-to-face interaction (36.5%)
• Building up a stock of the goods we produce, to be sold at a later date (7%)
• Using the time to up-skill or train myself and/or my employees (32%).

Less sustainable strategies involved short-term access to finance, which included:

• Using up reserves or savings (40%)
• Applying for a new loan, or an extension of a current loan (13%)
• Getting support (money or other services) from friends and family (20.5%).

Other strategies being used were:

• Moving business activities online, including production, distribution and sales, investing in skills, equipment and software that allows them to do this: “working on my website to strengthen my market image and presence”. There is, however, acknowledgement that online work limits access to poorer and rural communities.
• General cost-cutting and reducing overheads wherever possible: “downscaling our business”
• Diversifying into new or additional areas of business and exploring new markets: “Looking for new customers, and pivoting my business to add another income stream”.
• Working on proposals and pitching new work to existing and new clients: “Trying to pitch work to existing clients which can be done online”.

Using the information on the characteristics of each domain a vulnerability score, out of 10, was developed for each domain, where a higher number indicates greater vulnerability

Vulnerability Score by Domain

Domain	Freelance	Mostly F2F	Informal	Weighted vulnerability score out of 10 (ranking)
Cultural & Natural Heritage	35.0%	85.7%	10.5%	5.55 (4)
Performance & Celebration	67.5%	95.2%	36.9%	7.52 (1)
Visual Arts & Crafts	72.5%	50.0%	47.8%	5.63 (3)
Books and Press	56.7%	26.7%	33.1%	3.70(6)
Audio-Visual & Interactive Media	63.7%	71.7%	33.5%	6.17 (2)
Design & Creatives Services	56.9%	30.0%	34.5%	3.90(5)
TOTAL	62.4%	68.6%	34.9%	6.00

Using an input output table developed to include the CCIs the average impact of the Covid-19 shutdown per domain for 2020 (Gross Domestic Product in billions of rand and percentage impact on the sector itself):

• Cultural & Natural Heritage -R1,156 (-44,8%)
• Performance & Celebration -R2,806 (-55,6%)
• Visual Arts & Crafts -R2,173 (-44,5%)
• Books and Press -R8,262 (-36,1%)
• Audio-Visual & Interactive Media -R10,394 (44,7%)
• Design & Creatives Services -R18,523 (-35,1%)

Two domains: the book and press and the designing creative services domains had the least impact and many authors and designers could continue working during Covid lockdown. On the other hand, the Performance and Celebration domain is most vulnerable (because of the high proportion of freelance and face-to-face production).

What, if anything were the positives?

Generally, the sector was forced to become more innovative in order to survive. One of the positive outcomes of the lockdown has been the increased use of information and communication technology (ICT). This has been particularly useful for enterprises and freelancers that have the equipment and the skills necessary to exploit these technologies. Unfortunately, many creatives, particularly in rural areas, could not access or use ICTs. Nevertheless, the use of these technologies has speeded up the 4th Industrial Revolution and will have positive consequences in the long-term for the South African creative economy. Creative are using the time to up-skill and acquired new skills.

1. The department have rolled out Covid 19 relief initiatives and invited practitioners to apply to date 4971arts practitioners have benefitted from these initiatives.

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NATIONAL ASSEMBLY

Recommended.

QUESTION No. 378-2021

FOR WRITTE REPLY

378. Mr M Waters (DA) to ask the Minister of Sport, Arts and Culture:

Whether the SA Football Association (SAFA) received any monies, in the form of a loan and/or any other category, from the Fédération Internationale de Football Association 2010 Legacy Trust; if not, what is the position in this regard; if so, what (a) is the total amount of money that was received by SAFA, (b) was the money used for and (c) total amount has been paid back? NW384E

REPLY

The South African Football Association (SAFA) in its response indicated that they are not in the office and would only be able to provide information on their return.

NATIONAL ASSEMBLY

Recommended.

QUESTION No. 379-2021

FOR WRITTE REPLY

Mr M Waters (DA) to ask the Minister of Sport, Arts and Culture:

Whether the SA Football Association has bought any properties; if not, what is the position in this regard; if so, (a) what is the physical address of each property, (b) what is the total amount that was paid for each property, (c) in whose name is each property registered and (d) what is each property used for? NW385E

REPLY

The South African Football Association (SAFA) in its response indicated that they are not in the office and would only be able to provide information on their return.

NATIONAL ASSEMBLY

Recommended.

QUESTION No. 380-2021

FOR WRITTE REPLY

380. Mr M Waters (DA) to ask the Minister of Sport, Arts and Culture:

Whether, with reference to his reply to question 2223 on 30 October 2020, he will furnish Mr M Waters with the full audited reports since the inception of the FIFA 2010 World Cup Legacy; if not, why not; if so, what are the relevant details? NW386E

REPLY

The South African Football Association (SAFA) in its response indicated that they are not in the office and would only be able to provide information on their return.