The ISS notes and supports Government’s commitment to ensuring a safe and secure environment that enhances citizens’ quality of life and promotes economic activity. It is also supportive of the emphasis that government places on the need to find an appropriate balance between personnel numbers and salary levels, and between support staff and front-line delivery staff within this sector. It is in the interest of greater efficiency and effectiveness that the correct quantity and quality of staff be employed in the justice and protective services in South Africa. As regards finding the correct ration between support staff and front-line delivery staff, the Institute welcomes this initiative and believes that reducing the high number of support staff, including senior management, in the Department of Defence could significantly contribute to savings and in so doing to greater efficiency.

The ISS notes the acknowledgement of the importance of the growing role of the South African National Defence Force (SANDF) in African peacekeeping operations and strongly supports this development. The Institute has for some time been arguing the importance of the role of the SANDF in conflict prevention, management and resolution on the continent and the need for the SANDF to plan and design for this role. It is therefore pleased to see that this is being incorporated in a de-facto policy shift as reflected in the MTBPS. In this regard, the ISS fully supports the additional amount of R 21 million to the DOD for their engagement in Cote d’Ivoire.

We also note, with some concern, the reduction in spending on "Landward Defence" whilst most other defence programmes indicate slight increases. It is the view of the ISS that our land forces, the SA Army, have the greatest contribution to make in peace missions into Africa and needs special attention. Unfortunately, the ‘Strategic Defence Packages’ have favoured the Air Force and the Navy at the cost of the Army. With regards to main equipment the SA Army needs to be modernised to be able to play its essential role in peace missions into Africa and in support of the Common African Defence and Security Policy as manifested in the establishment of the African Standby Force and the Regional Brigades. There is a serious need to revisit this situation and to prioritise spending on the SA Army and its reserve forces.

The ISS notes the plans to modernise and improve the combat readiness of the SANDF to fulfil its constitutional mandate, which will be strengthened by additional allocations in the 2006 MTEF. The Institute has previously expressed its concern about the discrepancies between defence policy and funding and the subsequent degradation of defence capabilities. In welcoming the commitment to the modernisation and improvement of the combat readiness of the SANDF and the financial support thereto, the ISS nevertheless restates the need for this to be backed up by a comprehensive and consultative process of revisiting South African defence policy to ensure policy and funding alignment.

The ISS notes the commitment to the implementation of a paid reservist system for the SAPS. In welcoming this, the Institute nevertheless again states its conviction that the decision to phase out the SA Army territorial reserve is an error and should be revisited. Other than its crucial role in rear area protection during times of crisis and conflict, the territorial reserve is the first line of reaction in times of natural disaster and in the maintenance of essential services when needed. The slow reaction of the US National Guard during the recent New Orleans disaster testifies to the negative effect of diluting the effectiveness of a territorial reserve by incorrect employment. The tragic earthquakes in Pakistan and India in recent days, also testify to the crucial role that military territorial reserve forces have to play in times of emergencies and natural disasters. It is totally incomprehensible that South Africa is purposefully destroying this essential capability. It is submitted that the matter of the phasing out of the SA Army territorial reserves needs to be revisited as a matter of the utmost importance. This crucial capability needs to be maintained and funded.

The ISS views the MTBPS in a very positive light and congratulates the Minister of Finance and the Department on the excellent management of the SA Budget. In terms of Vote 21 on Defence, the Institute in general agrees with and supports the changes indicated but restates the urgent need for a policy review to align defence policy with current reality and requirements as well as with available funding.