ATC140711: Report of the Standing Committee On Finance on the Strategic Plan and Annual Performance Plan on Budget Vote 13: Statistics South Africa, dated 10 July 2014
Finance Standing Committee
REPORT
OF THE STANDING COMMITTEE ON FINANCE ON THE STRATEGIC PLAN AND ANNUAL
PERFORMANCE PLAN ON BUDGET VOTE 13: STATISTICS SOUTH AFRICA, DATED 10 JULY 2014
The Standing Committee on Finance, having
considered the Budget Vote 13: Statistics South Africa (
StatsSA
)
and the Strategic and Annual Performance Plans of the Department for the
2014/15financial year, reports as follows:
1.
Introduction
The Budget Vote 13: Statistics South Africa
(Stats SA) was referred to the Standing Committee on Finance on 2 July 2014. The
Statistician-General, Mr P
Lehohla
and senior
officials of the department briefed the Standing Committee on Finance (the
Committee) on the Budget Vote and the updated Strategic and Annual Performance
Plan. This report presents a summary of the departments programmes and the
deliberations between the Committee and the leadership of Statistics South
Africa.
The
consideration of Stats SAs budget and the processing of the report have been
finalised in exceptional circumstances, due mainly to the dates of the general
elections and convening of the 5
th
term of parliament. The onerous
legal and other deadlines for the adoption of the overall budget by parliament
meant that the Committee has had to process Stats SAs budget very quickly. The
Committee has not been able to be as rigorous and effective as it would have
liked to have been in processing the budget. The Committee will seek to be more
rigorous in its consideration of Stats SAs budget next year.
2.
Mandate of Statistics South Africa
Stats SA is a national government department
accountable to the Minister in the Presidency: National Planning Commission.
The activities of the department are regulated by the Statistics Act (1999),
which mandates the department to advance the production, dissemination, use and
coordination of official and other statistics to assist organs of state,
businesses, other organisations and the public in planning, monitoring, and
decision-making.
The Act also requires
that the department coordinates statistical production among organs of state in
line with the purpose of official statistics and statistical principles.
The establishment of the Department of
Performance Monitoring and Evaluation magnifies the importance of Stats SA to
provide reliable statistics that measure government policy implementation and
thus influence policy development. The demand for accurate, relevant and
timeous
data expands to regional and local levels of
government to enable the effective delivery of public services.
In terms of section 4 of the Statistics Act,
the status of Stats SA is referred to as an organisational component in the
first column of schedule 2 of the Public Service Act and for the purpose of the
application of that Act, in terms of section 7(4)(a) of that Act, regarded to
be a department, and consists of the Statistician-General and staff, subject to
the Ministers duties and powers referred to, and no person or organ of state
may interfere with the functioning of Stats SA.
3.Policy
Context and Strategic
Priorities for 2014/15
The 2014/15 financial year will be the final
year of implementing the Stats SA strategic plan that was approved by
Parliament in 2010. The strategic plan of 2010/112014/15had identified three challenges
that needed to be addressed - gaps in information, quality and skills. Six key
focus areas were identified to address these challenges and below is a short
summary on their implementation:
-
There
has been stability in the organisations statistical production as shown through
the suite of economic, social and population statistics. A key focus was
the successful delivery of Census 2011. The census results forms the base
of the national statistics system and provides statistical information at
ward level.
Stats SA publishes over
230 statistical releases and the intention is to sustain the statistical
production series in 2014/15 whilst exploring new and innovative methods
and systems to expand the statistical information. The Departments plan
indicates that a major challenge is the provision of statistical
information at a lower geographic level.
-
The
department has sought to expand the statistical information base and
address the information gap through leading and coordinating the national
statistics system. Various partnerships have been established with organs
of state to provide statistical support and advice to improve sources of
data. The Departments Strategic Plan states that it will speed up its
efforts to coordinate statistical production in the country by developing
a national strategy for statistical development
-
Another
key focus area of the organisation has been on identifying various
strategic interventions in order to increase public confidence. Stats SA
has embarked on the partial implementation of the System of National
Accounts (SNA) 2008 as well as the International Standard on Industrial
Classification (ISIC4). The Department has begun building frames that will
form the cornerstone of the statistics system. In particular, Census 2011
provided the organisation with the opportunity to compile a complete list
of dwellings in SA thus establishing the geographical spatial information
frame. This frame will be maintained through a collaborative mapping
approach in partnership with municipalities. Other interventions include
maintaining and updating the business register based on tax information
received monthly from SARS and the launch of a new website in 2013.
-
Improving
productivity and service delivery focused on building a statistical
infrastructure and sound governance processes that support the statistics
system in producing high-quality statistics has been a key focus area of
the Department. Through the integrated fieldwork strategy the organisation
has expanded its fieldwork force thus ensuring an extensive data
collection footprint in provinces and districts.
-
Stats
SA has introduced a talent management programme to align the disparate
capacity building initiatives. There are capacity building programmes at
schools level, tertiary institutions level and internally. The Department
has established the Maths4Stats programme that seeks to promote
statistical literacy at schools level by training teachers in statistical
related modules. A Masters programme was established at Stellenbosch
(CRUISE) aimed at converging statistics and geography a new approach to
understand, interpret and use geospatial information in planning,
reporting and monitoring. A key challenge is building statistical
capability at local government level.
-
The
Department has sought to promote international collaboration and
participation as a key strategy addressing the information, quality and
skills gap. The Department has led a number of statistical development
initiatives on the continent, including the African Symposia for
Statistical Development (ASSD).
In
its
2014/15
Updated Strategic Plan, the Department states that it had undertaken a critical
review of its external and internal environment and its associated impact on
the strategic focus of the organisation. Underpinning this review is the
emphasis highlighted in the National Development Plan (NDP) that the state will
need to have the capacity to formulate and implement policies that serve to
eliminate poverty and inequality.
The department has the following strategic
goals over the medium term:
-
Expand
the statistical information base by increasing its depth, breadth and
geographical spread through the production of economic, social and
population statistics;
-
Enhance
public confidence and trust by developing and enhancing qualitative and
methodological standards, maintaining business and geographic frames,
managing relationships with stakeholders and conducting research;
-
Improve
productivity and service delivery by integrating fieldwork and data
operations, providing management support, and implementing effective
governance and administration;
-
Lead
the development and coordination of statistical production in the national
statistics system by coordinating and providing statistical support of
official statistics
-
Invest
in the learning and growth of the organisation by investing in human,
information and organisational capital; and
-
Promote
international cooperation and partnerships in statistics by participating
and contributing to national, continental and international statistical
activities and forums.
4. Budget
Overview
Stats SAs budget allocation increases by
R500.9 million or 28.8 per cent in nominal terms from R1.7 billion in 2013/14
to R2.2 billion in 2014/15. Over the medium-term the departments budget is
projected to grow at a nominal average rate of 7.3 per cent or in real terms at
a rate of 1.4 per cent.
The Departments spending emphasis over the
medium term will be on streamlining statistical operations to inform evidence
based decision making and strengthening the Departments statistical production
partnerships with other government departments. The Department will expand the
statistical information base and increase the supply of official statistics.
Expenditure on goods and services shows increased allocations due to the
provision of office accommodation related costs and computer services. The
Department effected
repriotisation
budget cuts of
over R35 million in the 2014 MTEF period in non-essential items such as travel
and subsistence. The significant increase in capital spending is due to
contribution fees for the new building project. The new building will be able
to house the entire Departments head office employees. The Department has a
staff establishment of 3 430 posts with 348 vacancies. The Department states
that the vacancies are largely due to the difficulties experienced in finding
candidates with the appropriate specialised skills.
There are seven main
programmes of the department: -
Programme 1: Administration
Programme 2: Economic Statistics
Programme 3: Population and Social Statistics
Programme 4: Methodology, Standards and
Research
Programme 5: Statistical Support and
Informatics
Programme 6: Statistical Collection and
Outreach
Programme 7: Survey Operations
5. Observations and
Proposals
5.1
The Statistician-General presented to the Committee recent statistical findings
on themes such as the Work and Labour Force, Causes of Death, Household Service
Delivery and Economic Growth. A major finding was there
markable
deskilling of Africans from 1994 to 2014.The Committee finds the statistics
provided in this regard very disturbing and believes that the effects of this
major deskilling will seriously undermine the countrys NDP and other national
goals and the consolidation of a non-racial, non-sexist democracy in this
country. The Committee believes that these findings of Stats SA need to be
discussed within the economic cluster parliamentary committees and will
facilitate this. Other parliamentary committees also need to be briefed and the
Committee Chairperson will raise this with the House Chairperson for
Committees.
5.2
The Committee is concerned about the dissonance between statistics, policy
implementation and service delivery and strongly believes that statistics
should be used, among other ways, as a crucial planning and oversight tool.
5.3
The Committee recognises the independence of Stats SA and believes that it can
act on the proposals set out here without undermining its independence.
5.4
The Committee noted with concern Stats SAs findings on the provision of
transport infrastructure in Gauteng not being aligned to the spatial
distribution of the population. This lack of alignment probably exists in many
other provinces too, and the Committee stressed the need for Stats SA to brief
the relevant structures in the provinces on its findings, as well as in the other
two spheres of government.
5.5
The Committee believes that the work of Stats SA needs to be used more
effectively by the Department of Planning, Performance Monitoring and
Evaluation. .
5.6The
Committee believes that Stats SA needs to brief the South African Local
Government Association (SALGA) on its statistical information for use at
municipal level.
5.7
The information provided by Stats SA also needs to be used by schools,
hospitals and a variety of other structures at grassroots leveland the Committee
believes that Stats SA needs, within its budgetary and other constraints, to
develop a strategy to, over time, reach these institutions and other
structures.
5.8
The Committee welcomed Stats
SAsplans
to speed up
efforts to coordinate statistical production in the country by working on a
national strategy for statistical development and will monitor progress in this
regard.
5.9
The Committee welcomes the Departments Stellenbosch (CRUISE) programme aimed
at converging statistics and geography.
5.10
The Committee is concerned about the vacancy rate and efficacy of Stats SAs
recruitment and talent retention strategy, and wants to see improvements in
this regard.
5.11
Overall, the Committee believes that Stats SA is performing reasonably, and is
especially concerned that the value of its work is not being sufficiently
recognised by organs of the state.
6.
Conclusion
The
Standing Committee on Finance, having considered Budget Vote 13: Statistics
South
Africa,
recommends that the House support the
Budget Vote.
The
Democratic Alliance (DA) reserves its position on the Budget Vote.
The Economic
Freedom Fighters (EFF) opposes Stats SAs Budget Vote.
Report to
be considered.
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