ATC130509: Report of the Portfolio Committee on Arts and Culture on Budget Vote 14: Department of Arts and Culture, dated 9 May 2013
Arts and Culture
REPORT
OF THE PORTFOLIO COMMITTEE ON ARTS AND CULTURE ON BUDGET VOTE 14: DEPARTMENT OF
ARTS AND CULTURE, DATED 9 MAY 2013
The
Portfolio Committee on Arts and Culture, having considered the 2013/14 budget
and the Annual Performance Plan of the Department of Arts and Culture, Vote 14,
reports as follows:
1.
Introduction
1.1
The Portfolio Committee on Arts and Culture
considered the 2013/2014 Budget of the Department of Arts and Culture (DAC) as
part of its oversight function over the Department. The Department of Arts and
Culture briefed the Portfolio Committee on Arts and Culture on its 2013/2014
budget on 24 April 2013.
2. Terms of Reference
2.1
The
aim of the report is to present an intensive analysis of the 2013/2014 budget
of the Department of Arts and Culture in order to assist the Portfolio
Committee on Arts and Culture to perform its oversight function over the
Department, in particular to enable the Committee to monitor and oversee its
expenditure of Public Funds.
2.2
Information contained in the report is based on
the Departments presentation as well as the 2013 Estimates of National
Expenditure (ENE).
2.3
The
Report presents a programme-by-programme summary of the Department of Arts and
Culture Budget, an overview of the key observations and recommendations made by
the Committee.
3. Findings
3.1
DAC
derives its mandate from the Constitution of the
3.2
The
work of the Department also speaks largely to one of governments 12 outcomes,
namely Outcome 12: An empowered, fair and inclusive citizenship. DAC strives to
enhance nation building, national identity citizen participation and social
cohesion.
3.3
The Department
declared 2013/14 the year of the Mzansi Golden Economy (MGE), a vehicle through
which large scale public investment will be channelled to develop the arts and
the creative economy.
3.4
The
Mzansis Golden Economys aim is to redirect funds from the Investing in
Culture Programme to stimulate the economy on a broader scale to create
employment. Through the Mzansi Golden Economy, the Department seeks to
contribute towards the national goal of creating 5 million jobs within the next
10 years.
3.1.1 Overview of Strategic Goals of the
Department of Arts and Culture
The
Department of Arts and Culture aims to achieve the following objectives:
·
Job creation
Create 150,000 decent jobs in the arts, culture and heritage sector by 31
March 2016
.
·
Human capital development
Implement targeted programmes that are geared towards human capital
development in the arts, culture and heritage sector by 2014.
·
Access to information
Enhance access by citizens and public institutions to accurate,
reliable and timely information in their language of choice though the
provision of archives, libraries, and language services
.
·
Linguistic diversity
Entrench
linguistic diversity in a manner that facilitates equitable cultural expression
by citizens and communities.
·
Development, protection, preservation and
promotion of arts, culture and heritage
Enhance capacity of the sect
or through equitable and sustainable development,
protection and preservation of arts, culture and heritage (through policy
development, legislative promulgation and implementation).
·
Governance and accountability
Align
of public sector art, culture and heritage institutions around a shared vision,
common mandate and strong governance and accountability.
3.1.2 Overview of the 2013/14 Budget
For the 2013/14
financial year, the total budget allocation is R2.9 billion. Relative to the
2012/13 financial year, during which the budget was R2.7 billion, this
translates into a nominal increase of 9.1 per cent. The actual increase is 3.3
per cent, after the inflation rate is factored.
Programme 4 received
the largest increase in 2013/2014 compared to the other programmes 32.2 per
cent in real terms. This is due to the implementation of the MGE projects,
while Programme 6 sees the continuation of providing community library services
however, with a complete shift of the library services function from
municipalities to provinces. This also accounts for the growth in transfers to
provinces over the medium term.
The Departments
goals and spending in these programmes are in alignment with the principles set
out in the National Development Plan (NDP). This plan highlights the importance
of the arts and culture sector in nation building and social cohesion. The plan
also recognises the potential of the arts and culture sector to contribute to
job creation. The Department will prioritise the implementation of the MGE
strategy over the medium term. This means that the Department will identify and
invest in programmes that could potentially maximise growth and employment in
the sector. It also entails increasing access to community library services.
Thus community library infrastructure, facilities and services will be
enhanced. DACs commitment to enhancing capacity within the sector is also
evidenced by planned financial support to artists to the tune of an estimated
R182.2 million.
The
2013 budget provides for additional allocations of R13.3 million in 2013/14, R407.9
million in 2014/15 and R711.9 million in 2015/16. The focus of these additional
allocations is primarily on DAC entities for improved conditions of service.
The following additional allocations have been highlighted by the ENE:
·
R4.6 million in 2013/14, R5.6 million in 2014/15
and R8.8 million in 2015/16 for improved conditions of service within the
department
·
R131 000 in 2013/14, R176 000 in 2014/15 and
R229 000 in 2015/16 for Die Afrikaanse Taalmuseum for improved conditions of
service
·
R1 million in 2013/14, R1.4 million in 2014/15
and R1.8 million in 2015/16 for the National Museum Bloemfontein for improved conditions
of service
·
R269 000 in 2013/14, R361 000 in 2014/15 and
R471 000 in 2015/16 for the
·
R325 000 in 2013/14, R437 000 in 2014/15 and
R569 000 in 2015/16 for the
·
R400 000 in 2014/15 and R700 000 in 2015/16 in
reprioritisations to the community library services conditional grant from the
Department of Basic Educations school infrastructure backlogs grant due to
poor spending in the latter
·
R7 million in 2013/14 for the 2014 Africa
Nations Championship.
Infrastructure
spending is another driver of expenditure over the medium term. A number of
projects will be completed over the medium term at an estimated cost of R645
million.
It
should also be noted that Cabinet approved budget reductions of R32.3 million
over the medium term have been implemented across programmes.
3.1.3 Programme Analysis
Table 1: Programme
allocations
Programme
|
Budget
|
Nominal
|
Real
|
Nominal
% change
|
Real %
change
|
|||
R
million
|
2012/13
|
2013/14
|
2014/15
|
2015/16
|
2012/13-2013/14
|
2012/13-2013/14
|
||
Programme
1: Administration
|
212.7
|
234.0
|
247.4
|
260.0
|
21.3
|
8.9
|
10.01
per cent
|
4.18
per cent
|
Programme
2: Performing Arts
|
641.7
|
719.1
|
735.1
|
788.1
|
77.4
|
39.3
|
12.06
per cent
|
6.12
per cent
|
Programme
3: National Language Services
|
112.2
|
123.7
|
132.4
|
138.9
|
11.5
|
4.9
|
10.25
per cent
|
4.40
per cent
|
Programme
4: Cultural Development
|
158.9
|
221.9
|
275.2
|
287.9
|
63.0
|
51.2
|
39.65
per cent
|
32.24
per cent
|
Programme
5: Heritage Promotion
|
745.2
|
834.6
|
885.6
|
927.2
|
89.4
|
45.1
|
12.00
per cent
|
6.06
per cent
|
Programme
6: National Archives and Library Services
|
801.7
|
781.5
|
1 234.5
|
1 573.4
|
-
20.2
|
-
61.6
|
-2.52
per cent
|
-7.69
per cent
|
TOTAL
|
2 672.4
|
2 914.8
|
3 528.1
|
3 975.4
|
242.4
|
87.8
|
9.07
per cent
|
3.29
per cent
|
Figure 1: Comparative
analysis of 2012/13 and 2013/14 budget allocations per programme
A. Administration
The purpose of
this programme is to provide leadership, management and support functions of
the Department. The budget allocation for Programme 1 reflects a nominal
percentage change of 10.1 per cent for the 2013/14 financial year. However, the
real percentage change is 4.2 per cent over the same period. According to the
anticipated audit outcomes issued by the Auditor-General (AG) in February 2013,
DACs overall vacancy rate stood at 11.4 per cent, while the vacancy rate at
Senior Management Service (SMS) level was 21.5 per cent.
Due to the
social cohesion summit, spending on consultants increased considerably in the
2012/13 financial year. During this period, the Department used four consulting
companies to provide the following services:
·
ICT consulting services;
·
Internal audit services; and
·
Marketing and public relations for the social
cohesion summit.
B. Performing Arts
This programme has five sub-programmes:
·
Promotion of the Performing
Arts promotes and develops the literary, visual and performing arts through
policy development and providing financial assistance to performing arts
institutions, organisations, community arts centres and individuals.
·
National Arts Council
transfers funds to the National Arts Council (NAC) whose role is to support
arts and culture through financial support guided by finding criteria that
promote government objectives.
·
Arts Institutions this
transfers funds to various performing arts institutions to promote the
performing arts.
·
National Film and Video
Foundation transfers funds to the National Film and Video Foundation in
support of skills, local content and local marketing development in
·
Capital Works of Performing
Arts Institutions funds and administers capital grants to playhouses for
maintenance and other capital projects.
Transfers to cultural institutions are the main function of this
programme. Programme expenditure increased from R490.8 million in 2009/10 to
R614.7 million in 2012/13, at an average annual rate of 9.3 per cent.
Expenditure in this programme is expected to increase to R788.1 million over
the medium term, at an average annual rate of 7.1 per cent. The spending focus
over the medium term is mainstreaming the role of the sector in economic and
social development through the implementation of the MGE strategy as well as
developing the local film industry through the National Film and Video
Foundation sub-programme.
The Department will reduce spending by R4.9 million over the medium term
as part of the Cabinet approved reductions. These reductions will be effected
in spending transfers to the National Arts Council and The Playhouse Company. Further,
it is important to note that R17.7 million is also reprioritised in this period
from this programme to the Administration programme to centralise IT and
bursary services.
According to the ENE, spending on transfers to households within the
sub-programme Promotion of Performing Arts decreased from 2009/10 to 2012/13 as
the rollout of the MGE projects was slower than expected.
C. National Language Services
This programme exists to promote the official languages of
Transfers to households are expected to grow substantially over the
medium term as the number of bursaries awarded is expected to grow. A total of
840 bursaries are expected to be awarded over this period double the amount
of bursaries awarded between 2009/10 and 2012/13.
D. Cultural Development
The main purpose of this programme is to develop South African arts and
culture. Over the medium term, as mentioned earlier, the spending focus will be
on the implementation of the MGE strategy and providing financial support to
cultural industries and events. Projects such as the annual Edinburgh
International Festival, the Tunisian Film Festival and the French-South African
seasons in 2013/214 contributes to increased spending on travel and subsistence
over the medium term. Four consulting companies were used in 2012/13 for the
French-South African seasons and for the celebration of
As part of Cabinets approved budget reductions, DAC has reduced
spending by R18.2 million in the
Cultural
Development
sub-programme. These reductions are effected in spending on
goods and services due to poor spending on funding allocated for MGE strategy
projects.
E. Heritage Promotion
This programme provides policy, legislation and strategic direction for
identifying, conserving and promoting cultural heritage. The bulk of this
programmes expenditure and over the medium term will focus on making transfers
to heritage institutions for operations and capital works. Capital works at
museums contribute to the bulk of this programmes expenditure in 2012/13 as
well as over the medium term. Further, spending on heritage study bursaries is
expected to increase in this period in order for this programme to increase the
number of bursaries awarded yearly from 31 in 2011/12 to 125 by 2015/16.
It is of importance to note that as part of Cabinets approved budget
reductions, DAC has reduced spending by R1 million from goods and services and
R5 million over the medium term from transfers to
F. National Archives and Library
Services
The function of this programme is to facilitate full and open access to
the archival and information resources of
It is important to note that over the medium term, R4 million is
reprioritised from sub-programmes within this programme to the Administration
programme to centralise IT services.
4. Recommendations
The Committee welcomes the APP and 2013/14 budget of the Department of
Arts and Culture. The committee further recommends that the Minister of Arts
and Culture should ensure the following:
§
The Department of Arts and
Culture to develop a scientific formula for the disbursement of the subsidy to
its entities;
§
Additional funding to be
considered for the
§
The Department of Arts and
Culture to prioritise the establishment of flagships in the
§
More governance monitoring
to be provided to departmental entities;
§
Reviewing the funding model
for the previously disadvantaged institutions/entities in order to ensure that
they can develop optimally; and
§
The Department of Arts and
Culture to reduce its reliance on consultants.
6. Conclusion
The Portfolio Committee congratulates the Department on its
achievements. The Committee recommends that the House adopts the Budget Vote of
the Department of Arts and Culture.
Report to be considered
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