ATC140715: Report of the Portfolio Committee on Economic Development on Budget Vote 28: Economic Development and the Annual Performance Plan of the Economic Development Department for the 2014/2015 financial year, dated 10 July 2014

Report of the Portfolio Committee on Economic Development on Budget Vote 28: Economic Development and the Annual Performance Plan of the Economic Development Department for the 2014/2015 financial year, dated 10 July 2014

The Portfolio Committee on Economic Development, having considered Budget Vote 28 and the Annual Performance Plan of the Economic Development Department for the 2014/2015 financial year, reports as follows:

1. BACKGROUND

The Economic Development Department (to be referred to as the Department in the report) was established on 7 July 2009 in terms of the Public Service Act, 1994 (Proclamation 103 of 1994). This was following His Excellency, President JG Zuma’s creation of a new portfolio on Economic Development on 10 May 2009 and the appointment of Mr E Patel as the Minister for the new Department.

The mandate of the Department is to support job creation, inclusive growth, industrialisation and social inclusion though policy work, planning coordination, use of social dialogue, as well as integration and coordination between departments, spheres of government and public agencies.

The Department is responsible for monitoring and implementation of the action plans on the various job drivers in the New Growth Path (NGP). It is a key department for Outcome 4: Decent Employment through Inclusive Growth. The Department is a core department in the economic and infrastructure cluster of departments and in Outcome 6: An efficient, competitive and responsive economic infrastructure network. It provides technical support to the Presidential Infrastructure Coordinating Commission (PICC), whose Secretariat is chaired by the Minister of Economic Development.

EDD has five key strategic objectives, which are:

· Coordination of job drivers, sector and spatial projects and monitoring the implementation of the New Growth Path (NGP);

§ Coordination of infrastructure development;

§ Promotion of investment, expanding of industrial funding and improving the performance of the Development Finance Institutions;

§ Promotion of competition, trade and smart economic regulation; and

§ Facilitation of social dialogue and implementation of accords reached through social dialogue.

The Department also provides support to the Presidential Infrastructure Coordinating Committee (PICC), through active construction monitoring of the level of infrastructure construction and completion and preparing the Quarterly Construction Update, providing oversight of Strategic Integrated Projects (SIP) Intergovernmental Forums and Coordinating Agencies.

The Department oversees the Industrial Development Corporation (IDC) and its subsidiary, the Small Enterprise Finance Agency – sefa. The Department is also responsible for three specialist regulators namely, the Competition Commission, Competition Tribunal and the International Trade Administration Commission (ITAC).

The Department administers the following legislation:

• Industrial Development Corporation Act (Act No. 22 of 1940);

• Competition Act (Act No. 89 of 1998);

• Competition Amendment Act S16 (2008) s16 promulgated 1 April 2013;

• International Trade Administration Act (Act No 71 of 2002); and

• Infrastructure Development Act (Act No. 23 of 2014).

The following policy frameworks guide the APP of the Department:

· State of the Nation Address (SONA) annually

· National Development Plan;

· New Growth Path;

· National Infrastructure Plan;

· Industrial Policy Action Plan;

· Delivery Agreement on Outcome 4: Decent Employment through inclusive economic growth;

· Delivery Agreement on Outcome 5: Skilled and capable workforce to support inclusive growth;

· Delivery Agreement on Outcome 6: Efficient, competitive and responsive infrastructure;

· Delivery Agreement on Outcome 7: Vibrant, equitable, sustainable rural communities; and

· Framework for South Africa’s response to the international economic crisis.

The Department facilitated and monitors the following Social Accords:

§ Basic Education Accord;

§ National Skills Accord;

§ Local Procurement Accord;

§ Green Economy Accord; and

§ Youth Employment Accord.

2. INTRODUCTION

The Portfolio Committee on Economic Development (the Committee) analysed the Strategic Plan, Annual Performance Plan and the budget of the Department. Government has the responsibility to ensure responsible spending , given the limited nature of public funds.

It is important for budget plans to be linked to strategic plans so as to ensure that key objectives and priorities are budgeted for and achieved. Thus, the purpose of the meeting was to assess and analyse the Strategic Plan, APP and budget of the Department with a view of ensuring that there is alignment of reporting between the Strategic Plan, Annual Performance Plan and budget.

This report details the findings and recommendations of the Committee after its engagement with the Department on the above.

This report covers the budget vote and annual performance plan of the Department only and the report on the Entities will be covered separately.

3. THE ANNUAL PERFORMANCE PLAN (APP) OF THE DEPARTMENT

On 1 July 2014, the Committee engaged the Minister of Economic Development (the Minister), Deputy Minister of Economic Development, Director-General, Chief Financial Officer (CFO) and relevant Executive Managers of the Department on the APP and budget.

The APP of the Department sets out what the institution intends doing in the remaining nine months of the financial year and during the Medium Term Expenditure Framework (MTEF) to implement its Strategic Plan.

The presentation of the APP also sets out Key Performance Indicators (KPIs) and targets for budget programmes, and sub-programmes whilst also indicating how the Department aims to realise its goals and objectives set out in the Strategic Plan.

The APP of the Department is therefore linked to the Strategic Plan, the budget and the MTEF and is informed by updates to government’s long-term plans, the Medium Term Strategic Framework (MTSF) and the broader Government implementation plan of action.

3.1. The 2014/15 financial year APP process

The Department’s Strategic Plan of 2012/13 – 2016/17 is currently under review, pending the requirement of tabling of a five year strategic plan for the period 2015/16 to 2019/20 in March 2015. The APP for the 2014/15 financial year has been revised to reflect the new MTSF approved by Cabinet. It is therefore effectively a plan for the next nine months, specifically July 2014 to March 2015.

Government’s economic strategies are rooted in the vision of the NDP as well as the ruling party’s 2014 Elections Manifesto, which foresee an economy that is characterised by robust growth, rising employment, and increasing inequality. The NDP sets the target for creation of 11 million jobs by 2030. The NGP is the economic strategy to implement these mandates, for which the MTSF provides specific, practical and verifiable actions.

The APP of the Department reflects substantial changes from the previous APP, which both reflect the requirements for the new MTSF and mark a stronger outcomes-oriented approach. The strategic objectives and the related Key Performance Indicators (KPIs) have been revised to take into account the MTSF’s core objectives, in particular in terms of inclusive growth and economic infrastructure. Moreover, the APP is directed at high-priority activities.

One of the major aims of the APP is to strengthen managerial and political oversight by focusing objectives to priority outcomes. The achievement of this objective may require that the Department involves other departments, state agencies as well as and in some cases, the main economic stakeholders.

3.2 . Budget of the Department

The 2014 Estimates of National Expenditure (ENE) states that:

“Over six Medium Term Expenditure Framework (MTEF) periods, funds made available for allocation to government institutions have gradually decreased as a proportion of the total budget, from 7.4% in the 2009 Budget to 1.2% in the 2014 Budget. In this context, providing funds for key government priority areas has meant that budget processes are increasingly being focused on freeing these existing resources from areas of lower priority and inefficiency, for allocation to areas that have a greater developmental impact. More service delivery needs to be achieved with the current level of resources.” (ENE, 2014: ii)

The Department gets a total of R697 million out of the R635 billion national budget appropriation from National Treasury. National Treasury reduced the Department’s baseline allocation by R6 million (goods and services) and a reduction of R50 million related to the economic competitiveness and support package that was allocated to sefa .

3.3. Departmental Budget by Programme

The EDD has four (4) core business components, namely:

· Administration (which includes the PICC Technical Unit);

· Economic Policy Development;

· Economic Planning and Coordination; and

· Socio Economic and Social Dialogue.

3.3.1 The budget allocations for the above programmes:

In terms of resource consideration, there has been n o major increase anticipated in the budget.

The Administration programme consists of 3 sub-programmes, with the latest addition being that of PICC unit. As shown in figure 1 below, this programme covers 12% of the total Department’s budget. It is the second largest of the programmes and constitutes the Department’s overall management, administration and policy development. Within the Administration programme is sub-programme for the Minister, which also covers the PICC unit; Office of the Director-General, and general management services. The PICC was initially not part of the Administration but the Planning Programme. The budget allocation for Administration increased as a result of the internal re-alignment of funds to posts and the inflation adjustment provided for by National Treasury.

The Economic Policy Development programme consists of 4 sub-programmes. As shown in figure 1 below, this programme covers 3% of the total Department’s budget, the third largest of the programmes. Within the Economic Policy Development programme are sub programmes on Growth Path and Creation of Decent Work; Economic Policy; Broad-Based Black Economic Empowerment (BBBEE); and Second Economy. The budget allocation has reduced by R2.4 million.

The Economic Planning and Co-ordination programme consists of 5 sub-programmes. As shown in figure 1 this programme covers 83% of the total Department’s budget, making it the largest of the programmes. Within the Economic Planning and Co-ordination programme are sub programmes Spatial, Sector and Planning; Investment for Economic Development; Competitiveness and Trade for Decent Work; Economic Development, Financing and Procurement; and Green Economy. The original allocation for the 2013/14 financial year was R663.8 million. There has been a decline of R84.8 million. The decrease was mainly as a result of the budget cut in the Economic Competitiveness Support package amounting to R50 million and the internal re-alignment of funds to posts.

The Socio Economic Development and Social Dialogue programme (previously listed as Economic Development and Dialogue in the strategic plan) consists of 4 sub-programmes. As shown in figure 1 below, this programme covers 2% of the total Department’s budget, making it the smallest of the programmes. The original allocation was R18.3 million and this has been reduced by R3.3 million. The decrease has been as a result of the budget cut and re-alignment of posts.

3.3.2 EDD Budget: Percentage share by Programme

Figure 1

3.4. Departmental planning process

The strategic planning process in the Department entailed two elements:

Firstly, the Department effected a number of changes in its focus in light of the successful conclusion of 4 major Accords and the establishment of the PICC.

Secondly, a departmental strategic planning session was held at which the overall objectives of the Department were assessed together with the consideration of each unit’s programmes’ strategic objectives, medium and short-term plans and key projects.

In the APP, the Department streamlined the performance indicators to make them smarter, and to enhance the coherence and strategic focus of its work. A total of six (6) core-mandate strategic objectives with 22 KPIs and 154 targets or outcomes were set and are expected to be delivered in the course of the year. The Department has placed an increased emphasis on the following:

· Providing quality information for better coordination;

· Developing simple, well-targeted dashboards to allow decision-makers to see progress;

· Unblocking or fast-tracking projects and investments;

· Building partnerships with stakeholders to ensure better implementation; and

· Developing new plans and policies where these lead to better implementation of existing frameworks.

3.5. The Department’s strategic objectives

The strategic objectives of the Department have been reviewed. The focus in the APP is into higher level strategic objectives better equipped for the coordinating and integration mandate of the Department.

The Department’s six strategic objectives are aligned to and supportive of its key programmes, namely Administration, Economic Policy Development, Economic Planning and Coordination and Socio Economic and Social Dialogue.

3.5.1. Strategic objective 1 (PROGRAMME 1 ADMINISTRATION)

Strategic objective 1 relates to administrative support for the Ministry and the Department by ensuring that there is a well managed Department which will support the economic development through continuous refinement of organisational strategy and structure in line with appropriate legislation and best practice.

The NGP raises the key issue of improving the capability of the state and this requires re-tooling across government including also the Department. As part of the new strategic objectives and MTSF, the Department plans to review its organisational structure, the budget programme structure, and the Strategic and Annual Performance Plans. The review will ensure that the Department is appropriately resourced and structured. Moreover, this will strengthen the Department to be able to play its coordination and facilitation role on making the environment conducive for the creation of jobs and improving the growth prospect of the economy.

3.5.2. Strategic objective 2 (ECONOMIC POLICY DEVELOPMENT PROGRAMME)

Strategic objective 2 relates to the coordination of jobs drivers, sector/spatial projects and implementation of the NGP for job creation, inclusive growth, industrialisation and social inclusion. This is in line with the Department’s core function of supporting alignment across all state agencies to encourage sustainable, inclusive growth and job creation.

The Department has gained a lot of experience with the PICC in infrastructure development. The experience has been extraordinarily helpful and it will be used to develop mechanisms for coordinating and supporting implementation for other jobs drivers in areas such as manufacturing, mining, agriculture and services such as tourism.

The Department aims to develop effective implementation systems that will drive the actions of the state to unlock the potential of the productive sectors of the economy. The MTSF requires that the Department develops similar systems for other Job Drivers in the NGP and the economy as a whole.

The KPIs for objective 2 are:

· KPI 1: to coordinate and support implementation of two (2) job drivers, through development of information and monitoring dashboards; collation of data on performance; aligning activities with overall government plans and unblocking obstacles to implementation;

· KPI 2: participation in the Cluster and Outcome 4 processes within government to facilitate achievement of economic outcomes of the MTSF. The Department aims to have four (4) quarterly progress reports on Outcome 4; and two (2) in-depth reviews of progress, opportunities and risks for Cabinet Makgotla;

· KPI 3: strengthening the implementation of the NGP as part of achieving the National Development Plan (NDP) goals by 2030. These are target 4 initiatives;

· KPI 4: completing six (6) spatial, local and/or provincial initiatives to support inclusive growth and job creation, national economic priorities and promote greater accountability. This also includes measures to improve provincial economic development oversight and performance.

3.5.3. Strategic objective 3 (PROGRAMME 3 ECONOMIC PLANNING AND COORDINATION)

Strategic objective 3 aims at coordinating infrastructure development for inclusive growth, service delivery, job creation, industrialisation and social inclusion. This arises out of the Department’s role in supporting the PICC under the Infrastructure Development Act, in particular the provision of the technical unit and strategic frameworks and targets. The MTSF sees the public investment programme as central to economic transformation in particular because it can provide extensive support for existing and emerging productive enterprises. On the one hand, the build programme encourages investment to supply inputs, and on the other it secures improved inputs for producers, notably electricity and water as well as logistics. Infrastructure is fundamental to service delivery for communities.

The KPIs for objective 3 are:

· KPI 5: The Department plans to produce 60 Cabinet-level quarterly progress reports on each SIP;

· KPI 6: The Department plans to unblock fast-track or facilitate a total of 8 Infrastructure projects;

· KPI 7: The Department plans to implement four (4) Cabinet and PICC strategic decisions on infrastructure (including policy, funding, users, development impact or capacity-development areas); and

· KPI 8: Secretariat and coordination function provided for PICC: The Department intends to hold 20 Council, Secretariat, Management Committee (MANCO) and SIP Coordinators meetings.

3.5.4. Strategic objective 4 (PROGRAMME 3 ECONOMIC PLANNING AND COORDINATION)

Strategic objective 4 aims at promoting investments, expanding industrial funding and entrepreneurship and improving performance of DFIs for job creation, inclusive growth, industrialisation and social inclusion. The Department supports new investments that will diversify the economy and create employment both directly, by addressing blockages, and through its oversight of the IDC and sefa . The Department needs to ensure that investments do more to support inclusive growth by driving industrialisation, creating jobs and providing more opportunities for women, youth, Small Medium and Micro Enterprises (SMMEs) and rural people.

In the MTSF, the Department will dedicate capacity to facilitate and unblock productive investments as required through identifying innovative opportunities for diversification and growth, helping to establish supportive frameworks, and overcoming delays in decision making by relevant agencies. This also reflects the Department’s role of overseeing the IDC and sefa . These two agencies have a central role in increasing financing for new investments to support growth in the core productive sectors, diversification, employment creation, expansion in smaller enterprises, and greater economic equality overall.

The Department will work to improve the efficiencies of the DFIs and expand the level of industrial funding available across government and DFIs and their impact on jobs, women, youth, small business, black industrialists, township enterprises, rural development and entrepreneurship.

The KPIs for objective 4 are to:

· KPI 9: Facilitate, fast track and/or unblock 10 investment initiatives;

· KPI 10: Make four (4) to improve the efficiencies of DFIs and ensure world-class institutions through strategic guidance and Departmental work;

· KPI 11: Measure and expand the level of industrial funding available across government and DFIs. The target here is two (2) initiatives;

· KPI 12: Undertaking two (2) initiatives to measure and facilitate the improvement of the jobs impact of industrial funding, administered through DFIs and/or government departments; and

· KPI 13: Take two (2) initiatives to measure and facilitate developmental goals through industrial funding (including women, youth, small business, black industrialists, township enterprises, rural development, and entrepreneurship).

3.5.5. Strategic objective 5 (PROGRAMME 3 ECONOMIC PLANNING AND COORDINATION)

Strategic objective 5 aims at promoting competition, trade and other economic regulation in support of job creation, inclusive growth, industrialisation and social inclusion. The Department’s oversight of key regulatory agencies, namely, the Competition Commission, Competition Tribunal and ITAC involves setting policy frameworks and goals and ensuring good governance and efficiency.

The Department will continue to strengthen the administrative efficiency of trade and competition authorities and ensure world-class institutions through strategic guidance and Departmental work and evaluate and strengthen the impact of economic regulators on job creation, inclusive growth and developmental goals.

Under the MTSF, the Department will also build the regulatory capacity and effectiveness across the state, including through improved training of regulators and, where necessary, the consolidation of regulatory institutions or amendments to legislation.

The KPIs for objective 5 are:

· KPI 14: Strengthening administrative efficiency of trade and competition authorities and ensuring world-class institutions through strategic guidance and Departmental work. The Department plans to carry out three (3) initiatives;

· KPI 15: Evaluating and strengthening the jobs, inclusive growth and developmental impact of economic regulators. The Department therefore plans to undertake four (4) initiatives;

· KPI 16: Seek to reduce red-tape and unnecessary restrictions on enterprises and/or improve impact assessment of government/regulatory measures. The target for the 2014/15 financial year is two (2) initiatives; and

· KPI 17: Undertake one (1) initiative to build regulatory capacity and effectiveness across the state, including through improved training of regulators and where necessary, consolidating regulatory institutions and administration/amendment of legislation. The MTSF requires the Department to conduct a review of all economic regulators and propose improvements.

3.5.6. Strategic objective 6 (PROGRAMME 4 SOCIO ECONOMIC AND SOCIAL DIALOGUE)

Strategic objective 6 relates to the facilitation of social dialogue and implementation of social accords; support productivity and innovation for job creation, inclusive growth, industrialisation and social inclusion; and promote broader consensus on other key strategic objectives. The social accords concluded to date include the Youth Employment Accord, the Green Economy Accord, the Local Procurement Accord and the National skills Accord/Basic Education Accord. The Department’s current task will be to work with stakeholders to improve implementation. Social dialogue at national, sectoral and workplace level is also crucial for sustainable long-run growth.

The KPIs for objective 6 are:

· KPI 18: Supporting local procurement of goods and services and/or implementation of the Local Procurement Accord. The target for this KPI is four (4) interventions;

· KPI 19: Supporting the development of the green economy and green jobs and/or implementation of the Green Economy Accord and the target is two (2) interventions;

· KPI 20: Enhancing skills development and/or implementation of the National Skills Accord and the target is two (2) interventions;

· KPI 21: Enhance youth empowerment (employment, skills or entrepreneurship) and/or implementation of the Youth Employment Accord and the target is four (4) interventions; and

· KPI 22: Assess national, sector or workplace economic development partnerships facilitated with social partners and the target is four (4) initiatives, covering commitments to work together on economic goals; improve social equity and productivity and reduce workplace conflict, and/or promote greater innovation and entrepreneurship.

4. COMMITTEE FINDINGS/OBSERVATIONS

4.1. Economic Development

The Committee notes the importance of the Economic Development Department and the critical role it has to play in addressing the national triple challenges facing the country that is unemployment, poverty and inequality. The Committee also acknowledges that innovative strategies and well resourced programmes would enable the Department to deliver on its mandate, of ensuring inclusive growth, job creation, improved service delivery, industrialization and social inclusion.

4.2. Strengthen programmes, strategies and policies that would ensure inclusive growth, support for the Youth; SMMEs and Cooperatives

The development of policy frameworks for increasing productivity, enhancing innovation and entrepreneurship is one of the aims and key activities of the Department. The Committee stressed the importance of ensuring that the Department enhances the development and implementation of strategies, policies and interventions that would ensure inclusive growth, support for the Youth and put more emphasis on the advancement of SMMEs and Cooperatives. The Committee emphasised that Cooperatives need to be included in the real economy as they are also one way of overcoming the gap between the rich and the poor.

The Department has a role in overseeing the DFIs which are the IDC and sefa, as part of the IDC. It was observed that the Department, through the entities, can also play a critical role in industrial financing and promotion of entrepreneurship. The Committee also welcomes the establishment of the new Ministry of Small Business Development and recognises the important role that this Ministry will play in advancing SMME development and support.

4.3. Enhanced oversight on the work of the Entities that report to the EDD

The Department also has a role in overseeing three Economic Regulatory Bodies (ERBs), namely, the International Trade Administration Commission (ITAC), the Competition Commission and the Competition Tribunal. Strategic objective 5 of the Department requires that it promotes competition, trade and economic regulation. The Department needs to continue strengthening the administrative efficiency of trade and competition authorities, ensure that these entities become efficient and effective, and commit to reduce unnecessary red-tape that hinders investment, job creation, inclusive growth and development.

4.4. Implementation of Accords

The Committee commends the Department on the successful coordination and facilitation of the Accords, namely Nationals Skills/Basic Education; Youth Employment; Local Procurement and Green Economy. The Committee recognises that a greater part of the work of the Department will be on monitoring implementation of the Accords.

The Committee acknowledges that all the Accords are important. However, the Committee re-emphasises that moving faster on skills development would be critical as this would ensure that there are no skills shortages for implementation of the key infrastructure programmes.

Subsequent to the concern that imports are still considerably more than exports, the Department is urged to ensure promotion of local procurement and increase domestic production by ensuring that more is sourced from local producers.

4.5. Develop mechanisms for coordination and implementation of the additional identified job drivers

The countries unemployment rate of 25% remains a challenge. Thus unemployment is still a major concern and remains top government priority. The high rate of unemployment requires much more innovation in the development of mechanisms to implement policies and strategies that would ensure creation of jobs and unlocking potential of the productive sectors of the economy.

The Committee noted that unrest in the mining industry was one of the key challenges that would negatively affect economic growth of the country and attainment of set economic policy targets. The Committee noted that this challenge posed as a threat in the attainment of economic growth and had spill over effects to other industries. It was observed that the Department, in its APP, had identified additional job drivers in productive sectors of the economy with high potential for job creation. These sectors are manufacturing, mining, agriculture and services such as tourism.

4.6. Acceleration of the implementation of infrastructure programmes, especially the 18 identified Strategic Integrated Projects (SIPs)

The NGP seeks to create 5 million new jobs by 2020, identifies structural problems in the economy to be overcome and points to opportunities in specific sectors and markets or job drivers. Infrastructure has since been identified as one of the jobs driver, thus laying the basis for higher growth, inclusivity and job creation.

Following the formulation of the Infrastructure Development Act (Act No. 23 of 2014), which the Department facilitated and coordinated, one of its core responsibilities would be to provide oversight, ensure coordination, implementation of the SIPs, National Infrastructure Plan (NIP) worth trillion rands and also offer secretariat support to the PICC.

The Committee emphasised that the Department will have to be well resourced and ensure that it quickly gets the required capacity. It would then be able to monitor and ensure accelerated implementation of the infrastructure programmes, especially the identified SIPs.

4.7. Ensure implementation of NGP and provide reports on the impact of programmes on job creation and progress on the implementation of infrastructure projects

Job creation remains the top government priority and is at the heart of the country’s economic policies. The Department’s mandate is shaped by the NGP whose main aim is to ensure job creation and thus sets a target of 5 million jobs by 2020.

The Committee observed that the Department has to continue ensuring that there is enhanced effort for the development and implementation of policies. The Department also needs to ensure proposal that will transform the 2 ^nd economy, broaden participation in the economy and create more work opportunities. Moreover, the Department has to enhance its efforts on the coordination, monitoring and implementation of the NGP.

5. RECOMMENDATIONS

Based on the deliberations with the Economic Development Department, the Portfolio Committee on Economic Development recommends the following:

5.1. The Department should ensure that it is well resourced both financially and in terms of human resource capacity in order to be able to deliver on the programmes and initiatives it has outlined.

5.2. The Department should ensure that it fills the vacant posts as a matter of urgency as lack of full capacity would adversely affect delivery on the set programmes.

5.3. The Department should, through its entities, expand industrial funding; ensure support for entrepreneurship and development of SMMEs and Cooperatives.

5.4. The Department should continue with its effort of ensuring that the regulatory authorities strengthen their investigation on competition and unfair trade that hinders the development of local industries.

5.5. The Department should evaluate and strengthen the impact of the entities on job creation, inclusive growth and developmental goals of the Country’s economy.

5.6. The Department should focus more on skills development that would empower youth, women and all other vulnerable groups.

5.7. The Department should accelerate implementation of the accords and provide the Committee with quarterly progress reports.

5.8. The Department should continue with its coordinating efforts of ensuring that formulating plans that would ensure regard for the future of the mining sector are considered and that alternative strategies that would ensure sustainability of the mining industry are developed.

5.9. The Department should also continue with its coordinating efforts of ensuring promotion of beneficiation strategies and plans that would ensure creation of sustainable employment.

5.10. The Department is urged to ensure that it devises mechanisms and policies that would ensure promotion of local producers and local goods .

5.11. The Department should ensure close monitoring and coordination of efforts to speed up the implementation of key infrastructure projects, especially those identified by the President in the State of the Nation Address (SONA).

5.12. The Department should enhance oversight and coordination on ensuring implementation of the NGP objectives across all spheres of government.

5.13. The Department should measure impact of State programmes and projects on job creation and provide the Committee with quarterly reports.

5.14. The Department should develop a monitoring tool that would ensure effective tracking of progress on the implementation of infrastructure projects and report as often as required by the laws governing infrastructure implementation.

5.15. The Minister should brief the Committee on the progress made on economic development related matters on a continuous basis.

5.16. The Minister should also brief the Committee on a continuous basis on the progress related to treaties and agreements signed between South Africa and various economic communities in and outside the Southern African region. Related to that should be trade issues including plans in response to the (Southern African Customs Union) SACU administration management related issues.

6. CONCLUSION

In conclusion, the Committee would like to thank the Ministry and the entire collective of the Department led by the Director-General (DG) on their continuous effort to enhance the fight towards a national democratic revolution by applying radical economic transformation methods. The Committee believes that if the Department continues doing so, South Africa will move with speed to achieve the desired socio-economic outcomes it so much desires.

Gratitude also goes to the newly established Portfolio Committee on Small Business Development, which participated in Budget Vote 28 discussions. Their input and contribution is appreciated.

The Committee thus recommends that the Assembly approves the implementation of the Strategic Plan and APP of the Economic Development Department within the allocated budget with amendments as reflected in the above findings and observations.

Report considered.