DIRECTOR-GENERAL’S EXECUTIVE SUMMARY
TOP MANAGEMENT 

JANUARY 2012

Template for employment reporting by National Departments
Second half, 2011
V4 Final November 2011
1	Background
The President has requested that every Cluster report in January on its impact on employment creation as part of a system of regular reporting on employment impact. This survey is a refined version of the survey completed for the June lekgotla. 
The aims of the reporting system are:
1.	To encourage all state entities to identify how they affect employment creation, even if that is not their main function, and where they could improve their work in this regard;
2.	To evaluate what the state has done to support employment creation; and 
3.	To evaluate how the activities of the state are contributing to targets for employment creation in the New Growth Path.
The report is expected to provide an important strategic and conceptual tool for departments to improve their contribution to employment creation. For this reason, it should be completed by senior management, who can act on the findings, and not treated as a data exercise or a narrow monitoring instrument. 
As the New Growth Path points out, most employment takes place in the private sector, and the role of the state is to create an enabling environment for it. By extension, the main way departments affect employment growth is through the impact on employers outside the state, primarily in business. This survey therefore focuses strongly on the employment effects of departments’ outputs, regulations, subsidies to business and other non-state actors, and procurement of goods and services. We realise these effects may prove difficult to quantify, but understanding them is critical for improving government support for employment creation.  
In this survey, we are interested above all in how government agencies support or hinder the creation of economic opportunities on a mass scale as reflected in access to income-earning activities. By extension, it counts as employment paid work, self employment, and some kinds of work that only earn a stipend, such as apprenticeships and internships as well as public employment schemes like the EPWP. Ideally, we should also reflect on the quality of work created as well as access for vulnerable groups. Given the difficulty of developing information systems, however, in this initial phase we are however concentrating on overall employment creation in the broadest sense. 
This questionnaire is for national departments. The departments of Education, Health, Economic Development, Public Works and Agriculture should also please report on their provincial counterparts, in order to gain an oversight of how the function as a whole affects employment creation. We have asked the Premiers’ Offices to forward separate reports on the provincial departments in these functions. 
For many departments, answering the questions in this questionnaire will be difficult both because they are unfamiliar with the issues and because they do not have information systems in place to supply the answers. If you have questions, please e-mail Dr Neva Makgetla of the Economic Development Department on nmakgetla@economic.gov.za. 
Part One. Direct employment
DPME and DPSA will provide data on direct employment based on PERSAL figures. This section therefore asks only about projections for employment creation that will be reflected in PERSAL over the MTEF period. Where possible, please indicate the number or share of women and disabled people you expect to employ. 
1.	Does your department have plans that could substantially affect the numbers employed by your department or one of agencies or SOEs? Please describe them and their likely impact personnel numbers. Education, Health, Agriculture, Public Works and Economic Development should please report also on their provincial counterparts. 

2.	Please project the number of employees in your department over the next three years. Education, Health, Agriculture, Public Works and Economic Development should please report also on their provincial counterparts. Please record here only employees paid through PERSAL.  

	2011/12	2012/13	2013/14	2014/15	Changes in projections since report in first half of 2011	
Total	210	The Department is in the process of finalising a new structure. Numbers will be incremental over the MTEF dependent on available budget for compensation to employees.	None	
Women	93			
Disabled	3			
3.	Please project employment by agencies or SOEs that your department oversees for the coming three years. If you do not have agencies or SOEs, please go to question 5. 

Names of agency/SOE	National or provincial – please name the province if relevant	2011/12	2012/13	2013/14	2014/15	Changes in projections since report in first half of 2011	
Boxing South Africa	National 	17					
South African Institute for Drug Free Sport	National	7					
Please indicate the numbers of males, females and people with disabilities in a separate schedule, if possible.

4.	Do you envisage any challenges in filling vacant positions over the MTEF, for instance due to a shortage of skills that would make it impossible to fill certain categories of vacant position? Please provide as much detail as possible. If there are problems due to skill shortages, please indicate which skills are affected as precisely as possible. 
The filling of positions within SRSA has been placed on hold pending a restructuring process. 

5.	How many of the positions you expect to create will be at entry level?
SRSA is unable to respond as the process of restructuring is in its early stages.

6.	What qualifications are required for entry-level positions in your sector?
Generally, Matric plus 1-2 years experience. 

Part Two. Employment creation and employment subsidy programmes
Only complete this section if your national or, where relevant, provincial departments have employment creation or subsidy programmes, including learnerships or internships, that are not paid through PERSAL and that do not fall under EPWP. The Department of Public Works is providing an audited report of employment in EPWP by departments and local governments. 
DEFINITION: A public-employment scheme here refers to programmes or projects run by the department primarily to provide employment, not as part of its normal service delivery programmes. An employment-subsidy scheme refers to the provision of financial subsidies or transfers to an employer, whether a business or an NGO, primarily to pay for employment creation rather than to buy goods or services. Do not answer this section if the participants in the scheme are paid through PERSAL since they will be covered under direct employment. 
1.	Employment creation schemes besides the EPWP
1.1.	Does your department, or an SOE or agency they oversee, operate a public-employment or employment-subsidy scheme other than the EPWP or internships and/or learnerships? Education, Health, Agriculture, Public Works and Economic Development should please report also on their provincial counterparts.

YES
If your answer is no, skip the rest of this section. If it is yes, please answer the following questions.
1.2.	Describe the scheme(s):

Mass Participation is about the promotion of mass participation within communities and schools through selected sport and recreation activities, empowerment of communities and schools in conjunction with stakeholders and development of communities through sport.  
The objective of the programme is to facilitate participation in sport within disadvantaged communities focusing in high crime areas, government priority nodes and where possible at the facilities built/upgraded within the Building for Sport and Recreation Programme.

•	The target the following Communities:
o	IDRP Priority Nodes
o	Communities where existing BSRP are in place
o	Communities which have a high crime rate
o	Rural Areas
•	Targeting the following groups:
o	Youth & Youth At Risk
o	Women
o	Disabled
o	Elderly

Hub Coordinator (HC)
A hub coordinator is appointed by PDSR to manage and coordinate the activities within the hub, to ensure that the activities are adequately promoted, to oversee the work of the activity coordinators, to monitor their performance and report. The HC is responsible to the PC they get a minimum stipend of R1800
Activity Coordinator (AC)
Activity Coordinators are appointed as volunteers within each hub by the PDSR to facilitate the activities for which they are appointed. They are responsible for promoting their assigned activity within the community, in order to maximize participation and achieve the targets set and are required to report monthly the level of participation. The ACs are accountable to the HC they get a minimum stipend R1200

1.3.	How many people have participated in the scheme(s)? Add rows if necessary.
Name of scheme	2009/10	2010/11	
Mass Participation Programme	7029	The total is 541 (506 are people appointed on 6%. And 35 people are appointed on stipend).	
			
Please indicate the numbers of males, females and people with disabilities in a separate schedule, if possible.
 66% = females
39.95 =males
0.5% = people with disabilities
1.4.	How many full-time equivalent positions were created through the scheme(s)? To calculate full-time equivalents, sum the number of weeks of employment created overall, for all the participants, and divide by 42.

1.5.	Please project the number of participants you expect over the MTEF. 

278 municipalities, 44 district and 8 metros (one in each)

Name of scheme	2011/12	2012/13	2013/14	2014/15	
Mass Participation	37	330	330	330	
					
1.6.	Please estimate the number of full-time equivalents you expect over the MTEF. Again, to calculate full-time equivalents, sum the number of weeks of employment you expect to create overall, for all participants, and divide by 42.
1.7.	
Name of scheme	2011/12	2012/13	2013/14	2014/15	
Mass Participation	278	278	278	278	
					
1.8.	What obstacles could arise to achieving the projected increase in employment in your scheme(s) over the MTEF period?
The funding is allocated to provinces through the conditional grant. Provinces not complying with the conditions of the Conditional Grant will be a risk to the permanent employment opportunities.
The allocation per province in 2011/2012 is as follows:

Eastern Cape	                66,133 	
Free State	                34,116 	
Gauteng	                74,089 	
KwaZulu-Natal	                91,463 	
Limpopo	                55,702 	
Mpumalanga	                39,685 	
Northern Cape	                27,692 	
North West	                36,264 	
Western Cape	                44,496 	

The allocation over the MTEF is as follows:

Name of scheme	2011/12	2012/13	2013/14	2014/15	
Mass Participation 	474,566	469,640	497591	525 623	

Provinces are allowed to utilise 6%of the total allocated funds to be used to employ officials who will assist in the management of the grant and the implementation of the programme at grass root. Currently only 6 out of the target of the nine provinces are utilising the 6% allocation. The three provinces that are not utilising the funds are: Mpumalanga, Limpopo and North West. The cost for this financial year is about R1, 915 million

1.9.	Please project the budgetary requirements for the scheme(s) over the MTEF. 

1.10.	Are the participants in the employment schemes described here paid through PERSAL?

Yes

2.	Learnerships and internships (if not included elsewhere):
The July 2011 Cabinet lekgotla noted that Cabinet agreed in 2002 that the public sector should provide internships, learnerships and/or apprenticeships equal to 5% of total employment. It set an immediate target of 3% for the coming financial year. The DPSA sets standards for allowances for internships. 
2.1.	Does your department, or an SOE or agency that you oversee, provide any learnerships, internships or apprenticeships? Education, Health, Agriculture, Public Works and Economic Development should please report also on their provincial counterparts.

Yes: Yes
If your answer is no, skip the rest of this section. If it is yes, please answer the following questions.
2.2.	Describe the scheme(s). Please note if (a) the learnerships or internships help participants meet qualification requirements, and (b) what field they are in. 
a)	Internships
Human Resources Management
Labour Relations
Facilities
Client Support
Sport Science
Internal Auditing
Information Technology
Legal Service
Auxiliary Service
Corporate Service
Community Sport
School Sport
Finance
Ministry
Communication and Marketing
Director-General Office
Strategic Management
Supply Chain Management
b)	Three year qualification – NQF 6.

2.3.	How many internships, learnerships or apprenticeships have your department or, if relevant, the entities it oversees provided? 
Department, SOE or agency responsible	Average duration in months	2009/10	2010/11	
SRSA	12 Months	26	18	

Please indicate the numbers of males, females and people with disabilities in a separate schedule, if possible.

Males	Females	Disability	
15	29	3	

2.4.	Please project the number of learnerships, internships or apprenticeships your department, or the entities it oversees, expects to provide over the coming years. 
Department, SOE or agency responsible	Average duration in months 	2011/12	2012/13	2013/14	2014/15	
SRSA – Internship 	12	18	26	26	26	

3.	What obstacles could arise to achieving the projected increase in learnerships, internships and apprenticeships over the MTEF period?

Challenges with office accommodation/space within the premises of SRSA and Budget

3.1.	Are the interns, learners or apprentices paid?

Yes            
3.2.	If your answer was yes, how much are they paid per month?
R 5 367, 50 per month

3.3.	Are the learners, interns or apprentices reported on here paid through PERSAL?

  Yes

Part Three. Impact on employment outside of the public sector.
As reflected in the New Growth Path, most employment – some 80% - is created in the private sector, outside of government. The main way the state can affect employment creation is therefore through its impact on the private sector. Specifically, the state can affect private employment creation by influencing:
•	Business costs and profitability, whether overall or for a particular industry, type of business or region, for instance through the administration of licences and authorisations; provision of infrastructure; skills programmes; regulations that improve the competitiveness or inclusivity of the economy; procurement of goods and services; and subsidies, levies and taxes.
•	The ability of workers to find and keep employment, amongst others through measures that affect the cost of commuter transport, food, and other necessities; education, skills and healthcare, which affect worker productivity;  and the regulation of the labour market and worker organisation.
•	The capacity of new generations to obtain employment by supporting more stable households through improved incomes and living conditions as well as by enhancing education and healthcare.
•	Social stability and security by proving safety nets for the very poor and those unable to work as well as through direct security services, since no economy can function in a society that lacks at least a degree of social solidarity. 
Often departments affect employment creation without meaning to, because they are focusing on their own aims – for instance, on improving public health, educating citizens, providing security and protecting the environment. Given South Africa’s unusually high unemployment and poverty levels, however, most government goals cannot be achieved sustainably unless these objectives are pursued in ways that also support employment creation as far as possible. 
This section therefore encourages us to reflect on how we affect employment in the private sector, often unintentionally, and whether we can improve that impact. 

1.	Please check which of the following applies to your department’s functions. 
Businesses must comply with its regulations.	N/A	
Businesses must obtain licences or authorisations from it.		
Provides education, training or healthcare.		
Improves conditions for poor households, for instance through grants, food aid or the provision of housing, water, electricity and other services.		
Provides security services for businesses, households and/or communities.		
Provides subsidies or credit to businesses, or can impose fines on some businesses.		
Procures large amounts of goods.		
Provides infrastructure that is used by businesses or households.		
Regulates the provision of education, training or healthcare by the private sector.		
Regulates labour markets.		
Affects the location of housing and by extension the cost of job search and commuter transport for workers.		
Contracts substantial construction services for public works or buildings. 		
2.	Please describe generally how your department affects employment in the private sector. For instance, it might reduce the cost of production and logistics; improve workers’ productivity through improved education, health or skills development; use locally produced goods and services; subsidise employees or businesses or support small or micro enterprise; or provide a secure and stable social environment. 

The rest of this section distinguishes four ways in which government affects employment creation: 
•	through departments’ production of goods and services for the public; 
•	through policies, regulations and legislation’
•	through targeted economic development programmes; and 
•	through local procurement. 
Some of these categories overlap. For instance, regulations can be considered a service provided by the department. It is not important how you categorise each activity, however, as long as your answers 
•	Report on the employment impact of all the important activities of your department and 
•	You do not count any activity in more than one section. 
In many cases, it is difficult to be very specific about the number of employment opportunities your activities create, save or eliminate. Nonetheless, it is important to have a sense of how our activities as government affect employment and of the scope of that impact. This template should help departments think through the issues involved so as to come up with improvements as well as helping to monitor the overall impact of the state on employment. 
Note that outsourcing jobs from the public sector to the private sector does not create new employment and should not be included. Also, please note where an activity saves jobs.  
A. Outputs of goods and services by your department and your provincial departments
While we may not think of our departments as producers of goods and services, in fact most of government provides products for the public, ranging from education to healthcare to infrastructure to security. Generally these products are listed as output targets in the ENE in the budget and in the outcome agreements on national priorities. In some outcome agreements, they are called activities; in others they are called outputs or sub-outputs. 
Government goods and services generally affect non-state employment creation by reducing the costs of production or logistics, or by raising the productivity of workers and/or businesses. For instance, infrastructure outputs may reduce the cost of freight and communications, improve the quality of water and other inputs, or reduce the time, cost and unreliability of commuter transport. Social services help improve workers education, skills, health and family stability, in turn supporting greater productivity. 
The impact on employment depends in part on who benefits – workers in poor households or upper-income households, and/or different sectors of the economy (mining, manufacturing, services, agriculture, etc.), small or large businesses, rural or urban areas, and so on. It also depends on whether people have to pay for government services or not, and how well the benefits from the government service outweighs the user fees. 
This section first asks that you discuss how your outputs affect employment, even if that is not their primary purpose (as with education, social grants, housing and water for households). In your answer, please focus narrowly on the employment effects, not on other desirable outcomes. The second set of questions asks that you identify changes in output over the past two years that could change the effects on employment. We then ask that you try to quantify the impact of the changes in your outputs. Where relevant, we also ask you about user fees for rich and poor households and for employers. 
Please look only at how the outputs affect the users of your outputs, excluding the employment created as a result of procurement of goods and services to produce the outputs. Part D below covers procurement. 
Please do not include regulatory outputs, such as provision of licences or setting standards, under this section; they are included in Part B. Please also do not include direct subsidies or economic programmes, which are included in Part C.  
1.	Please describe your department’s main outputs of goods and services as set out in your budget and/or outcome agreement. Include outputs for SOEs and agencies that your department oversees. Education, Health, Agriculture, Public Works and Economic Development should also include a description of outputs for their provincial counterparts.  

2.	For each output you list in the previous question, please discuss how it affects employment creation outside of the government, either by improving productivity for workers or businesses, or by reducing their costs. 

3.	Is there a difference in your outputs and/or user fees for poor households (that is, households living on less than R2500 a month), better-off households (those households earning over R2500 a month) and businesses? If your answer is yes, please describe the difference. 

4.	Has there been a significant change in the amount or nature of your outputs in the past two years that would affect employment in the private sector (excluding changes in procurement)? If yes, please describe the change.  No

5.	Do you have plans for this year or the coming two years period that should increase the support of your department, and where relevant the SOEs and agencies you oversee, for employment creation from your outputs of goods and services? Please detail the specific proposals below and explain what would be required for them to succeed. Education, Health, Public Works, Agriculture and Economic Development should also report on plans from their provincial counterparts. Copy the chart for each entity if necessary. 

6.	
	Major outputs that will change to become more employment friendly	Fiscal and other prerequisites	
2011/12
	
Finalisation of the National Sports Plan that will also inform budget structure and budget.
	
Budgetary and human resource implications	
2012/13
	Changes in the conditions of the conditional grant 
	Increase in the percentage of allocation towards employment of permanent staff

2013/14

	
	
7.	Please estimate how your department’s outputs of goods and services affected employment creation in 2010/11 and in 2011/12, and your projections for the coming two years. Please include information for your SOEs and agencies. Education, Health, Public Works, Agriculture and Economic Development should also report on plans from their provincial counterparts. Copy the chart for each entity if necessary. 

Year	Estimated number of new employment opportunities outside of government as a result of your outputs of goods and services, excluding through procurement.	
2010/11		
2011/12		
2012/13		
2013/14		

8.	Are user fees charged for the outputs of your department or, if relevant, its SOEs and agencies? User fees may take the form for instance of tariffs, tolls, fees or other charges. Education, Health, Public Works, Agriculture and Economic Development should also report on user fees charged by their provincial counterparts.

Yes: ____________________            No _______________________

9.	If you answered yes, how did you decide how much to charge?

10.	Do you charge less to lower-income households and/or to some kinds of business, for instance smaller enterprises?

11.	What has been the percentage increase in user fees over the past three years for the following categories of users?
Category of user	Total percentage increase in fees over three years	
Households earning under R2500 a month		
Households earning over R2500 a month		
Businesses		

12.	Please estimate how much these user fees cost, on average, for each of the following categories.
Type of user fee	Households living on under R2500/month	Households living on over R2500/month	Business (as a percentage of total costs)	

				

				
13.	Do you anticipate a significant change in user fees over the MTEF? 

Yes: ____________________            No _______________________

14.	If so, please describe the expected changes and the likely implications for (a) the cost of living for households living on R2500 a month or less and (b) businesses, distinguishing if appropriate by size, sector and region. 

15.	Do you monitor the cost of user fees to households by income level over time?

Yes: ____________________            No _______________________

16.	Do you monitor the cost of user fees to businesses over time? 

Yes: ____________________            No _______________________
17.	If you answered yes to either question 14 or question 15 above, please give your findings and how you estimated them. 

B. Regulatory impact
Regulatory impact refers to the way that policies, laws and regulations influence employment creation. It may take the form of reporting requirements; requirements that businesses get licences or authorisations to operate or invest; limits on what businesses can produce or how they produce; and so on. 
Since regulations seek to change behaviour, they obviously impose some cost on someone or they would not exist. The issue here is whether costs to employment could be reduced, and benefits for employment could be improved, through changes in the design or implementation of regulations. As a first step, it is important that state entities systematically assess the impact of their regulatory activities on employment creation. 
It is sometimes difficult to distinguish between a regulatory activity and a service. It does not matter how you classify an activity in this report, as long as it is recorded only in one section. 
1.	What do you consider the main regulatory supports for and/or hindrances to employment creation?

2.	What are the main areas that your department regulates? Education, Health, Public Works, Agriculture and Economic Development should please also describe provincial regulations. 

3.	Please describe your departments’ regulations that affect employers in more detail in the table below. In most cases, the employers are businesses. Add more rows if you need them. 
Aim of the regulation	Type of employer affected (what industry are they in? Are they large or small? Are there any other relevant characteristics?)	How does the regulation affect the employers – that is, what do they have to do to comply?	Number of employers affected by the regulation	How many employees are employed by the affected employers?	

					

					

					
4.	How does the implementation your department’s regulations affect private employment, either by supporting employment creation or by hindering it? Please take into account the direct impact of regulations on employers and employees in terms of both the cost of compliance and benefits; the efficiency of implementation, for instance how long it takes to issue a permit or licence and whether there are a minimum of forms and procedures to go through; and the cost of fees. 
Aim of the regulation	What are the benefits for employers or workers?	What are the costs for employers or workers?	

			

			

			

			

5.	Does your department have a system through which businesses, workers or other individuals or organisations affected by your regulations can complain or indicate the benefits and/or costs of the regulations? The system could include surveys of stakeholders, complaints and query systems, a consistent review of inputs to the department about the regulations, etc. 

Yes: ____________________            No _______________________
If you answered no, please skip the next two questions. 
6.	If you do have such a system, please describe it. 

7.	Please summarise the findings about your regulations from the system. 

8.	How could you change your regulations or the implementation process in order to improve the impact on employment creation?

9.	Have you modified your regulations or the implementation process recently in order to increase the positive impact on employment in the MTEF period, or do you plan to modify them?

Yes: ____________________            No _______________________

10.	If you answered yes, what are you doing?
	Major changes in regulatory activities to support private employment creation	Fiscal and other prerequisites	
2010/11
			
2011/12
			
2012/13
			
2013/14
			
2014/15
			
11.	Please estimate the impact on non-state employment of the proposed changes.
	Major changes in regulatory activities to support private employment creation	Employment impact	
2010/11
			
2011/12
			
2012/13
			
2013/14
			
2014/15

C. Economic development programmes, including financial support to non-state employers
1.	Does your department, and where relevant any SOEs or agencies that it oversees, have programmes that aim specifically to support economic development or to save and/or create employment? Do not include public employment schemes or subsidies on which you reported in Section 2 above.  Education, Health, Agriculture, Public Works and Economic Development should please report also on their provincial counterparts.

No
If you answered no, please skip to the next section. 

2.	If you answered yes, please briefly describe the programmes. Add rows if necessary.
Programme	Description	

		
		
3.	Do these programmes aim to create employment specifically or do they have some other objective linked to economic development (e.g. increasing exports, diversification, improving the knowledge base of the economy, etc.)
Programme	Main objective	

		
		
4.	In deciding on the programmes, did the relevant entity assess the direct and indirect employment impact? 

Yes: ____________________            No _______________________
5.	If you answered yes, how did it conduct the assessment?

6.	Please estimate the impact of the programmes on employment creation outside of government in the last financial year and in this financial year? Distinguish direct employment from indirect employment. Try to be realistic. Please also indicate the budget for the programme. Add rows if necessary. 
Name of the programme	Impact on employment creation outside of government (excluding from procurement)	Budget	
	2009/10	2010/11	2009/10	2010/11	
	Direct:	Direct:			
	Indirect:	Indirect:			
	Direct:	Direct:			
	Indirect:	Indirect:			
	Direct:	Direct:			
	Indirect:	Indirect:			
	Direct:	Direct:			
	Indirect:	Indirect:			
	Direct:	Direct:			
	Indirect:	Indirect:			
	Direct:	Direct:			
	Indirect:	Indirect:			
	Direct:	Direct:			
	Indirect:	Indirect:			
	Direct:	Direct:			
	Indirect:	Indirect:			
7.	How did you arrive at your estimate of the actual direct and indirect employment impact for the programme(s)?

8.	Is your department or the entities it oversees changing the programmes or adding new initiatives in the coming two years? If so, please describe the changes and the major obstacles to implementing them. Education, Health, Agriculture, Public Works and Economic Development should please report also on their provincial counterparts.
No

Name of the programme	Impact on employment creation outside of government (excluding from procurement)	Budget	
	2012/13	2013/14	2012/13	2013/14	
	Direct:	Direct:			
	Indirect:	Indirect:			
	Direct:	Direct:			
	Indirect:	Indirect:			
	Direct:	Direct:			
	Indirect:	Indirect:			
	Direct:	Direct:			
	Indirect:	Indirect:			
	Direct:	Direct:			
	Indirect:	Indirect:			
	Direct:	Direct:			
	Indirect:	Indirect:			

	Direct:	Direct:			
	Indirect:	Indirect:			
9.	How did you arrive at the estimates for the impact on non-state employment in the preceding question?
N/A

D. Procurement
Procurement by departments and state agencies affects employment by the suppliers. Where imported goods are procured, the employment creation takes place outside of South Africa; local procurement, in contrast, can stimulate employment in South Africa. The questions in this section relate to the share of goods and services procured from local producers, and the consequences for employment in South Africa. 
New Treasury regulations on preferential procurement come into force on December 7, 2011. They require local procurement in designated sectors and generally encourage use of locally produced goods rather than imports.
In many cases, increasing the share of locally produced goods and services in government procurement requires changes in procurement processes. Departments will have to:
1.	Identify what goods are imported and which are locally produced, so as to find areas of opportunity for local production. This will likely require changes in the procurement specifications; since goods are often produced through intermediaries who may themselves not know whether a good is imported.
2.	Communicate their needs to potential local suppliers systematically, so that the suppliers can develop capacity to meet requirements. Often local suppliers can compete with imports but need time to gear up for production of specific products. A department may have imported something for all of living memory, although local producers could supply it if they were notified of the opportunity and given a chance to match the specifications and the price of the imported products. 
3.	Define their needs in ways that facilitate local production as far as possible. Sometimes unnecessarily narrow specifications favour imports over local products – at a cost to employment and growth in South Africa.  
For the purposes of this report,
•	Local production of goods means goods that have some value added locally beyond the costs of logistics, packaging and sale. That is, we will consider as local products any good that is assembled locally or has some local components. We consider as imports goods that are fully imported except for packaging and labelling, even if they are bought from a South African enterprise. Note however that the new procurement regulations have a more rigorous definition of local production that relates to the share of local value added in the value of the product. 
•	Local production of services means services that are provided using workers who are permanent residents of South Africa. Imported services are services provided by a foreign company using foreign workers who are only temporary residents. 
Please include in this section transfers to NGOs to undertake service delivery, for instance in the welfare sector. 
1.	What are the main categories of goods and services procured by your department, or the SOEs and agencies it oversees? Education, Health, Public Works, Agriculture and Economic Development should answer for their departmental counterparts. Feel free to add rows.  
Type of good or service	
Sport equipments and sport attire	
Gym equipments	
Catering	
Consultants ( training)	
Training camps 	
Promotional material	
Transport 	
Accommodation	
IT equipments	
Furniture	

2.	Please indicate how much your department, and the agencies or SOEs it oversees, spent on each type of good or service in the past two years, and how much you expect to spend in the coming two years. Education, Health, Public Works, Agriculture and Economic Development should copy the chart and answer for their departmental counterparts.  

Type of good or service	Amount spent in:	
	2010/11	2011/12	2012/13	2013/14	
Gym equipment	3 396 796.96	3 700 500.00			
Sport attire	750 299.08	900 000.00			
Catering	1 000 147.80	1 045 669.14			
Consultants	1 200 000.00	466 364.22			
Training camps	16 450 665	18 523 966.27			
Promotional material	700 524.36	1 200 000.00			
Transport	1 100 000.00	1 467 454.04			
Accommodation 	1 800 258.55	1 693 467.30			
IT equipments	420 000.00	1 300 542.42			
Furniture	71 000.00	85 000.00			

3.	What are the main obstacles you face in trying to increase procurement of locally produced goods and services? Please give as much detail and examples as possible. 
None

2.	Please describe your department’s preparations for implementing the new procurement regulations.

•	The Department has informed all suppliers about the new implementation and requested submission of the BEE rating certificates. 
•	The Department is busy updating the supplier database on the supplier rating certificates.

3.	Does your department have a system to track whether it procures local or imported goods and services?
 No 
4.	If you answered yes, please describe the system and the difficulties your department had to overcome in implementing it. Otherwise, please skip to the next question. 

5.	If you answered no, do you plan to introduce such a system, and if so by when?

The Department will start on the 7 December 2011 as required by the regulation.

6.	Does your department give points in some or all tenders for local production? 

     No the Department does not give local points.
If you answered no, please skip the next two questions. 

7.	If you answered yes, for which goods or services, and how big were the tenders in the past two years? Please add rows if necessary. 
Type of good or service	Size of tender	Did the allocation of points for local production change the outcome of the tender?	

			
8.	Is your department working with local producers to see if they can meet your needs in future for goods that are currently imported?  If yes, please describe the kind of products concerned.
4.	What were the main challenges faced by the local producers in meeting your needs?
5.	Has your national department or the SOEs and/or agencies it oversees developed any other plans or procedures to increase procurement of locally produced goods and services? Education, Health, Public Works, Agriculture and Economic Development should also answer for their departmental counterparts.  

 No, the Department will start focusing and monitoring on locally manufactured goods as from 7 December 2011.
A Tender has gone out for sports kits and equipment that is biased to local manufacturers, products and BBEE suppliers.

If you answered no, please go to the next section. 

If you answered yes, please describe what has been done.

What obstacles did you have to overcome to implement these initiatives?
If you undertook any initiatives to increase local procurement, please assess the impact on the procurement of local goods and services in the past two years or that you anticipate in the coming two years. Please feel free to add rows. Education, Health, Public Works, Agriculture and Economic Development should also answer for their departmental counterparts.  
6.	
Type of good or service affected	Increase in local procurement in Rand	
	2010/11	2011/12	2012/13	2013/14	

7.	Please estimate the impact on (a) employment at the suppliers of the goods and services 

8.	procured, and (b) the cost and quality of goods and services procured. 
Type of good or service affected	Actual or projected impact on employment at suppliers (i.e. number of additional employees due to new procurement practices)	Impact on cost/quality of goods and services procured	
	2010/11	2011/12	2012/13	2013/14		

9.	In your department, and any SOEs or agencies that it oversees, how long does it take, on average:
9.1.	From the time an invoice is first submitted until it is approved for payment?
     14 working days

9.2.	From the time an invoice is approved for payment until it is paid?
    5 working days
Education, Health, Agriculture, Public Works and Economic Development should please also add inputs from their provincial counterparts. 
Please identify the main factors that lead to delays in the payment of small and micro enterprises by your department, or agencies or SOEs that it oversees, both before and after the final invoice is approved for payment.  
Verification of banking details on the safety net 
Incorrect reference on the invoice submitted by suppliers

10.	If any of your departments, SOEs or agencies paid over 20% of SME suppliers more than 30 days after invoicing, please explain why.  N/A

Part Four. Progress on NGP sectoral target
1.	Based on your inputs to the other parts, please complete the following table indicating your success in contributing to targets set for individual jobs drivers in the New Growth Path. We realise that this is still a take off period, so the outcomes may be limited. 
Jobs driver	Direct employment and public employment schemes	Regulatory framework	Outputs of goods and services	Procurement	Funding provided to employers	
Agricultural value chain						
Mining value chain						
Manufacturing						
Tourism						
Other services						
The green economy						
The knowledge economy						
Rural development						
African regional development						

2.	Please describe specific actions that your department, or the agencies or SOEs it overseas, has taken to implement policies, programmes or measures included in the New Growth Path and to achieve the targets for specific jobs drivers. Education, Health, Public Works, Agriculture and Economic Development should also discuss actions by their provincial counterparts. 

No concerted effort has been made to align policies and programmes included in the NGP to SRSA’s plan. Greater attention will be paid to this in the new financial year.

3.	How would you assess progress to date and the prospects for achieving the targets for specific jobs drivers in the New Growth Path? 

According to the latest statistics from the independent sport research company BMI, the sporting sector in South Africa is contributing to the creation of jobs for 60 800 full-time workers, a further estimated 9 500 part-time workers and about 13 250 volunteers, which adds up to a total employment figure of approximately 83 550.  
Apart from these statistics, many volunteers and vendors work at events and stadiums as and when required. However, figures fluctuate significantly from one year to the next, depending on the specific projects that are undertaken.  For example, it was estimated that an additional 20 000 workers were involved in the construction of housing and venues for the All-Africa Games held in South Africa and a new motor- racing track in Welkom in the Free State.
The upgrading of stadia and the building of new ones for the 2010 FIFA World Cup had the impact of creating over 100 000 new jobs in construction.  A further 44 000 new jobs were created in the police service. In addition, 15 000 volunteers were trained to assist FIFA and the Organising Committee in the running of the event.
Sport and Recreation South Africa is not a service delivery Department and great reliance is placed on volunteers and sports federations and other NGO’s to deliver Sport and Recreation programmes.
An overhaul of the supply chain management processes will be considered in order to ensure greater opportunities for SMME’s and local manufacturers to benefit.
The Department will also research further to ascertain the impact of sport and recreation activities on economic development, rural development, tourism, green economy and its implication for job creation.

THANK YOU!