ATC140407: Legacy report of the Portfolio Committee on Water and Environmental Affairs on its activities undertaken during the Fourth (4th) Democratic Parliament (May 2009 – March 2014)

Water and Sanitation

LEGACY REPORT OF THE PORTFOLIO COMMITTEE ON WATER AND ENVIRONMENTAL AFFAIRS ON ITS ACTIVITIES UNDERTAKEN DURING THE FOURTH (4 th ) DEMOCRATIC PARLIAMENT (MAY 2009 – MARCH 2014)

 

PURPOSE OF THE REPORT

 

The purpose of this report is to provide an account of the work of the Portfolio Committee on Water and Environmental Affairs (the Portfolio Committee) during the 4 th Parliament. It provides an overview of the way in which the Portfolio Committee undertook its oversight and legislative programme in relation to Executive actions, policies, budget, legislation and programmes as driven by the Department of Water Affairs and their Entities, as well as the Department of Environmental Affairs and their Entities.

 

The areas the report focuses on in respect of the work of the Portfolio Committee relate to the outcome of key activities, challenges that emerged during the period under review and issues/recommendations to be considered for follow up during the 5 th Parliament.

 

INTRODUCTION

 

Proclamation No. 32367 dated 1 July 2009, split the previous Department of Environmental Affairs and Tourism and Department of Water Affairs and Forestry into new components, that of the Department of Environmental Affairs and Department of Water Affairs under one Ministry. A new Department of Tourism was established, while the Forestry component of the previous Department of Water and Forestry was shifted to the Department of Agriculture, Forestry and Fisheries. It is important to note, however, that during the interim transfer period of certain administrative functions, the Portfolio Committee, in 2009, was required to consider the Budget Votes of the previous Department of Environmental Affairs and Tourism, as well as the Department of Water Affairs and Forestry as the appropriations and transfers were only concluded in October 2009.

 

The Department of Environmental Affairs and Department of Water Affairs received appropriations by Parliament, and there was a Proclamation that gave a Vote to each of the Departments. The Portfolio Committee, from 2009 to date is dealing with two departments, Department of Water Affairs and Department of Environmental Affairs, under one Ministry.

 

To effectively undertake its work during the transitional period, the Portfolio Committee undertook joint meetings with the Portfolio Committee on Tourism, as well as the Portfolio Committee on Agriculture, Forestry and Fisheries to conclude and jointly draft reports relating to the strategic plan and budget vote of respective departments for the 2008/09 financial years.

 

For the 2009/10 financial year onward, the Portfolio Committee focused exclusively on its oversight functions of two Departments, that of the Department of Water Affairs and the Department of Environmental Affairs. The methodology utilised by the Portfolio Committee in the course of their work for this period was determined by its mandate and functions; parliamentary programme; legislation (new, amended or initiated by the Committee), as well as undertaking oversight over Executive action by scrutinising and critically engaging policies, programmes, legislation which are compiled by respective Departments to implement work to ensure service delivery to the citizens of South Africa.

 

Between 2009 and the end of September 2010, the Portfolio Committee was chaired by the Honourable Ms M Sotyu, MP, and, from November 2010 to date, chaired by the Honourable Adv. J.H. de Lange, MP.

 

1. ROLE OF THE COMMITTEE

 

1.1 Functions of the Committee

 

Parliamentary committees are mandated to:

 

· Monitor the financial and non-financial performance of government departments and their entities to ensure that national objectives are met;

· Process and pass legislation; and

· Facilitate public participation in Parliament relating to issues of oversight and legislation.

 

1.2 Method of the work of the Committee

 

The meaning of the principles outlined in key documents by the Executive needed to be transformed within institutional terms of Parliament governing oversight. The management of legislative and oversight programmes by the Portfolio Committee have had to focus on the set agenda items of Executive documents, which comprise the following:

 

· Current legislation;

· State of the Nation Address (Annual fixed agenda item);

· Medium-Term Expenditure Framework (Annual fixed agenda item);

· Intergovernmental fiscal relations;

· Responses to media statements;

· Strategic plans of departments (Annual fixed agenda item);

· Annual reports of departments and entities (Annual fixed agenda item); and

· Budget Votes (annual fixed agenda item).

 

The form, shape and structure of the above encompassed the following:

 

· Public hearings;

· Calling on departmental officials for relevant information;

· Submissions to Parliament;

· Oversight visits to provinces;

· Oversight of legislation;

· Questions posed to Cabinet Ministers;

· Time set aside in the committee programme to focus on constituency issues; and

· Continuous agenda items included to the programme of the Portfolio Committee when required.

1.3 Innovative initiatives to strengthen the legislative and oversight work of the Portfolio Committee

 

· First video conference with UK Parliament on climate change legislation

 

The Portfolio Committee held a video conference, on 7 October 2009, with the Members of Parliament, United Kingdom, on the way in which a committee on climate change was established in that Parliament. The Parliament of the United Kingdom passed legislation that introduces the world’s first long-term legally binding framework to tackle the dangers of climate change. The legislation also established the Committee on Climate Change (CCC), as an independent body, to provide the Government with advice on the levels of the first three carbon budgets up to 2020 and to review the 2050 targets. In addition to providing advice to the United Kingdom Government on reducing GHG emissions, the committee also focuses on the challenges of climate change to the United Kingdom.

 

The above initiative was the first of its kind by our Parliament, and the rationale for the Portfolio Committee to engage the United Kingdom Committee was to gain exposure and expertise on the process, mandate, vision, mission and legislative framework of setting up the Committee on Climate Change. A video conference such as this allowed Members of Parliament who are responsible for legislation and oversight to benchmark themselves against other Parliaments. The hope is that this would establish a stronger and more representative network of MPs that would inject fresh impetus to achieve a deeper cooperation on climate change. Following the initial video conference, the Portfolio Committee also resolved to look at the possibility of holding further video conferences with counterparts in other Parliaments to allow our Members to obtain an understanding of international legislators’ perspective on climate change issues.

 

· Integration and briefings of work of Departments and its Entities during scrutiny of department and entities strategic plans, budget and annual reports

 

The Portfolio Committee undertook intensive engagements with the Departments and their Entities during the scrutiny of strategic plans, budget votes and annual reports. Unlike previous years, whereby departments did not integrate the budgets or performance of entities undertaking work on their behalf, the Portfolio Committee requested that the briefings as well as the reports foster an integrative approach in planning, monitoring of progress and reporting against such progress between the Department and their Entities, whilst giving full effect to the prescripts in terms of roles and responsibilities of the Accounting Officer (Director General of the Department) and the Accounting Authorities (Boards) of the Entities related to those of the Department and the mandate of the Portfolio Committee. The objectives of the exercise by the Portfolio Committee were also:

 

· To contribute to improvement of the draft plans prior to them being tabled in Parliament by interrogating indicators, targets and current performance against these (where applicable); and

· To gain an understanding of the instruments and systems utilised by the Department to exercise governance oversight of their Entities.

 

The presentations made by the Department and their Entities focused on the approach followed in the development of indicators and targets; the draft indicators and targets as well as a first attempt to integrate the relevant indicators and targets of their Entities with that of the Department.

 

The Portfolio Committee noted the critical factors informing the setting of indicators and targets as presented, especially the constitutional imperatives and legislative mandates; the Medium Term Strategic Framework of Government, the National Development Plan 2030; the 2014 Outcome 10 Delivery Agreement; Obligations and commitments stemming from Multilateral Environmental Agreements and other International instruments such as the Millennium Development Declaration; Obligations and priorities stemming from the 2013 State of the Nation Address; and the interventions required based on the various “state of...” reports periodically produced.

 

The methodology used in the development and format of the Strategic Plan and Annual Performance Plan used was informed by the Treasury Prescripts, Guidelines and Frameworks; the Balance Score Card approach to tracking and reporting on progress against indicators and targets quarterly and annually; as well as the governance protocol and oversight system in place between the Department and their Entities.

 

In response to the above input by the Department, the Portfolio Committee recommended the following:

 

· That, whilst the reason for separate and independent Strategic and Annual Performance Plans and reports of the Department and Entities are understood within the context of the different prescripts and accounting mechanisms applicable and whilst these must continue to be respected in terms of the official Plans and Reports tabled in Parliament, an Integrated Balance Score Card system should be developed for the Department and the Entities to adequately reflect the contributions and overall impact on shared Indicators and Targets;

· Where applicable and especially in terms of “impact” indicators, historic status and long term targets / windows as well as progress towards such targets should be included in the Strategic Plan and preferably be communicated in a graphic or diagrammatic manner. Such graphs or diagrams should contain the following:

· The source of the target (for example, the Millennium Development Declaration);

· The date on which the target was introduced;

· The baseline performance at the time that the target was introduced;

· The due date for the target;

· The current performance against the target;

· The likelihood of achieving the target; and

· Any applicable intervention scenarios and its potential outcomes in relation to the target.

 

In short, in terms of performance oversight, the Portfolio Committee insisted on the Departments promoting, fostering and monitoring an integrated, balance scorecard approach of the Departments and their Entities to common objectives and targets. The Portfolio Committee also pushed the Departments and Entities to measure impact and not only output. The Portfolio Committee also urged the Departments and Entities to undertake a performance audit on the use of consultants and the oversight on the Department setting criteria and measures for work to be outsourced versus work that should be done in-house.

 

· Partnership approach between the Portfolio Committee and the Department of Environmental Affairs

 

Whilst not compromising the oversight responsibilities of the Portfolio Committee, the partnership approach to the mandate and work of the Department enabled the Department to account openly and transparently. This assistance by the Portfolio Committee allowed the Department to reach out to the public and facilitate innovation and solutions, both in terms of legislative instruments and administrative systems.

 

· Prioritise constituency issues as key component in the programme

 

An initiative of the Portfolio Committee in relation to address concerns in the environmental and water sector s was to set aside time in the committee programme to focus on constituency issues . The rationale for this initiative was that during briefings by Departments and their entities, Members raised a number of relevant concerns on matters under discussion pertinent to their specific constituencies. The Portfolio Committee then created an initiative to address this within a structured framework with time set aside for Departments to substantively respond to constit uency matters.

 

· Substantive joint engagements on legislation with the Departments and Portfolio Committees

 

The Portfolio Committee in its preparatory engagements with the National Environmental Management Laws Amendment Bill, 2013 realised the importance of integrating its substantive engagement on the Bill with aspects that will impact on the legislation and regulations of the Departments of Mineral Resources, Water Affairs and Environmental Affairs. The National Environmental Management Laws Third Amendment Bill, 2013 (NEMLA 3) proposes amendments to certain provisions under the National Environmental Management Act, 1998 (NEMA), the National Environmental Management: Waste Act, 2008 (NEM: WA) and the National Environmental Management Amendment Act, 2008 (NEMAA).

 

The Bill proposes amendments to certain provisions under the NEMA and NEMAA in order to give effect to the “One Environmental System” by empowering the Minister of Mineral Resources to implement environmental matters in terms of NEMA in so far as it relates to prospecting, mining, exploration, production or related activities on a prospecting, mining, exploration or production area. The Bill further proposes amendments to the NEM: WA to allow the Minister of Water and Environmental Affairs to develop regulations on the environmental management of residue deposits and stockpiles for implementation by the Minister of Mineral Resources.

 

The proposed new statute follows proclamations gazetted during June 2008, which initially announced the commencement of the 2008 Minerals and Petroleum Resources Development Amendment Act (MPRDAA) and its provisions for a single environmental management system for the mining industry, but subsequently withdrawing this announcement. It also follows the introduction in Parliament, in June 2013, of the long-awaited Mineral and Petroleum Resources Development Amendment Bill, 2013. Among its provisions is one proposing that the Minister of Water and Environmental Affairs should be the appeal authority for decisions taken by the Minister of Mineral Resources on environmental authorisation applications or environmental management programmes relating to areas in which prospecting, exploration, mining or production takes place. The Bill allows for transitional arrangements in respect of such appeals lodged prior to its commencement.

 

To this end, the Portfolio Committee held joint meetings with the Portfolio Committee on Mineral Resources as well as the Department of Mineral Resources and the Department of Water Affairs so as to ensure that the:

 

· Alignment of all legislative instruments, including legislation and regulations, to give effect to this agreement reached between the Department of Environmental Affairs (DEA), the Department of Water Affairs (DWA) and the Department of Mineral Resources;

· Amendment of present envisaged legal framework as agreed in 2008; and to

· Allow for application of environmental laws in mining areas, in an orderly and synchronised manner, by way of:

o MPRDA amendments;

o NEMLA 3 amendments

o Amendments of DMR regulations;

o Amendments to DEA regulations;

o Amendments to DWA regulations; and

o Amendments by 3 departments of any other formal or informal legislative instruments impacting on this integration and synchronisation process.

 

· Initiation of Committee Bill

 

The Portfolio Committee, while considering the National Environmental Laws Third Amendment Bill, 2013 and the Mineral and Petroleum Resources Development Amendment Bill, 2013, realized that it was imperative to effect certain technical amendments to the National Water Act in order to achieve the goal of an integrated regulatory framework for water, mining and environment, by specifically providing for the alignment of the timeframes for the processing of the respective applications within 300 days and for the appeals to be adjudicated within 90 days. The Minister of Water and Environmental Affairs and the Minister for Mineral Resources and their respective Departments were consulted on this approach to introduce a Committee Bill and were in full support of this process.

Accordingly, the Portfolio Committee deemed it prudent to initiate a Committee Bill to effect certain amendments to the National Water Act, 1998 and to submit the same to the Speaker of the National Assembly, Mr MV Sisulu, MP seeking permission for the introduction of this Bill as a Committee Bill. The purpose of the technical amendments to the relevant sections of the National Water Act, 1998 seek to achieve the alignment and synchronisation of timeframes and processes for the processing of water use licences, environmental authorisations, licences under specific environmental management Acts and other licences, permits or rights in terms of the Mineral and Petroleum Resources Development Act, 2002, and also to make provision for a synchronised internal appeal process to the Minister of Water and Environmental Affairs rather than the current appeal process being the Water Tribunal. This will ensure that all appeals will be finalised within 90 days after the receipt of an appeal.

1.4 Key statistics

 

The table below provides an overview of the number of meetings held, legislation and international agreements processed and the number of oversight trips and study tours undertaken by the Portfolio Committee, as well as any statutory appointments the committee made, during the 4 th Parliament:

 

Activity	2009/10	2010/11	2011/12	2012/13	2013/14	Total
Meetings held	37	42	41	40	45
Legislation processed	None	None	2	2	5	9
Oversight trips undertaken	None	1	2	1	None	4
Study tours undertaken	None	None	None	None	None	0
International agreements processed	None	None	None	3	2	5
Statutory appointments made	None	None	None	None	None	None
Interventions considered	None	None	None	None	None	None
Petitions considered	None	None	None	None	None	None

 

2. FOCUS OF OVERSIGHT WORK BY THE PORTFOLIO COMMITTEE ON THE DEPARTMENT OF WATER AFFAIRS AND THEIR ENTITIES AND THE DEPARTMENT OF ENVIRONMENTAL AFFAIRS AND THEIR ENTITIES

 

2.1 Environmental sector

 

For the period under review, the Portfolio Committee engaged the Department of Environmental Affairs and their Entities on strategic plans, budget votes, policy and legislation. The Portfolio Committee noted that central to the concept of sustainable development is not only the protection of biodiversity and ecological goods and services, but the way in which these can be used to provide jobs and income opportunities for the poor and unskilled. The centrality of national and global imperatives of sustainable development was translated through the implementation of programmes such as the community-based Natural Resource Management and Social Responsibility. These initiatives put the Department at the centre of government’s poverty alleviation, job creation and protection and rehabilitation of the environment.

 

Other focus areas on the work of the two Departments and their Entities related to consideration of the State of the Environment Report, National Planning Commission Diagnostic Report in relation to the water and environmental sectors, further public hearings on the Green and White Paper on Climate Change; rhino poaching, the National Waste Management Strategy, progress in the achievement of the Millennium Development Goals (MDGs), low carbon economy strategy; and job creation and expanded public works programmes.

 

· Finding the balance between sustainable development and job creation

 

A critical component of the discussions between the Portfolio Committee and the Department was on finding the balance between sustainable development and job creation. The thread that repeatedly emerged during these discussions was the manner in which unsustainable production, consumption practices, land use practices, alien species invasions and the impact of climate change could result in degraded land and ecosystem productivity, which threatens both current and future development opportunity. Initiatives to contribute significantly to job creation, social inclusion and the low carbon green economy is evident in the environmental Expanded Public Works Programme (EPWP) and through the National Green Fund aimed at catalysing scaled up investment in climate resilient, low carbon sustainable development.

 

· Addressing chemicals and waste management in South Africa

 

Briefings and public hearings within the environmental sub-sector focused on chemicals and waste management, and the findings showed that these sectors are extremely under-capacitated, particularly in municipalities. This results in poor waste and chemicals management, which has serious impacts on the well-being and health of South Africans. The Department argued that priorities within the medium-term in this area are to improve the provision of quality waste management hierarchy. This hierarchy includes waste minimisation, recycling, transport, storage and disposal as well as developing new industries based on specific waste streams, such as tyres, health risk and hazardous chemical waste. These benefits will be achieved through the formulation and facilitation of the implementation and enforcement of strategies, norms, standards, and regulations to fully give effect to the national Environmental Management: Waste Act (2008) and building capacities, particularly at local government level.

 

· Air quality management

 

Air pollution control in South Africa has undergone a shift from the best practical means to an Air Quality Management approach. The Portfolio Committee received a number of briefings and held public hearings on progress by the Department on air quality management. These ranged from the National Environment Management: Air Quality Act (AQA) and its subsequent amendments, the National Framework for Air Quality, publication of national ambient air quality standards, and listed activities and emission standards, development of an Air Quality Management Planning manual, and processes to issue atmospheric emission licenses.

 

· Climate change

 

Climate change is one of one of the greatest challenges of this century and impacts on global environmental, social and economic systems as it threatens to undermine South Africa’s past development gains as well as its future potential. The Portfolio Committee also held its first ongoing parliamentary discussions on climate change, including hearings on the Green and White Paper on Climate Change.

 

· Rhino poaching

 

Another area of grave concern to the environmental sector, and which received much attention by the Portfolio Committee over the last few years was the continuing plundering and pillaging of South Africa’s natural resources. The ongoing poaching of rhino population is a source of great concern to government. The Portfolio Committee held a number of public hearings, briefings as well as special workshops on the issue in the period under review.

 

· Constituency issues in the environmental sector

 

In the environment sector, the following issues were responded to by the Department and its entities – waste management in municipalities, air quality monitoring stations, infrastructure, and mining and its impact on the environment, amongst others. Copies of reports pertaining to issues raised on constituency work by Members of the Portfolio Committee are available.

 

2.2 Water sector

 

For the 2009 to 2013 period, the Portfolio Committee received briefings on the Strategic Plans, Annual Reports and Budget Votes of the Department of Water Affairs and its entities, Water Research Commission; Trans Caledon Tunnel Authority, 12 water boards, catchment management agencies,

 

Of specific importance to the work of the Portfolio Committee was the service delivery component of the work of the Department and its entities. This culminated in a number of briefings of the way in which departmental regional offices support local government structures in the nine provinces with regard to planning, infrastructure development, finance, service delivery arrangements and regulation of water service supply and sanitation.

 

During the period under review, the main focus areas were on Acid Mine Drainage; efforts by the Department in reducing backlogs in processing water use applications, wastewater treatment plants, regulation, compliance monitoring and enforcement in the water sector. Due to its poor financial and administrative performance in the period under review, the Department of Water Affairs engaged on a turnaround strategy called the Business Process Review (BPR), which dealt with improving operations in the human resources, finance, infrastructure, water trading entity, institutional realignment, communications, ICT, management and policy and regulation.

 

· Progress in service delivery

 

Over the medium term, significant progress in dealing with service delivery has been made. The key to significant progress in this regard is the result of a successful partnership with the Departments of Cooperative Governance and Traditional Affairs and Human Settlements, initiatives by the Municipal Infrastructure Support Agency (MISA) and Water Boards in dealing with the challenges of service delivery in those areas which have experienced service delivery protests. Support was provided through the Department’s Rapid Response Unit (RRU) which is a unit made up of professionals in the water sector who attend to problems when they arise and arrange quick fixes that may relate to water treatment or infrastructure failures. The RRU was decentralised to all provinces and is fully functional in seven Provinces. There were 173 technical interventions during the period under review.

 

· National Water Resource Strategy – 2

 

In relation to the review of water policy and legislation, tremendous progress has been made in the last financial year, in that the National Water Resource Strategy – 2 (NWRS2) was finalised and published in June 2013. The Department is currently mapping out the implementation path of this important strategic tool for water management.

 

The second National Water Resources Strategy (NWRS-2) forms the cornerstone of water resources management in the country and gives guidance on what future priorities are in the business of water in South Africa. The Strategy speaks to the institutional framework to improve water resource management through the establishment of nine catchment management areas within three years; and to formalise the nine regional entities to provide regional bulk infrastructure and to support municipalities on bulk water provision. The critical issue of equity in allocation is addressed extensively in the second National Water Resource Strategy (NWRS-2).

 

· National Water Policy Review

 

The National Water Policy Review has been gazetted. The review aims to address the gaps on equity and redistribution of water resources in the country. The process of amalgamating and aligning the various pieces of legislation such as those governing mining and environmental management is at an advanced stage. This process would improve water management and development in the country.

 

· Institutional Reforms and Realignment Process

 

The Institutional Reforms and Realignment process was finalised. The process will see the consolidation of water boards from 12 to 9, which will extend gazetted areas of these water boards and expand their functions. The process to establish nine (9) Catchment Management Areas is also progressing smoothly and will be instrumental in managing water resource management into the future.

 

· Acid Mine Drainage

 

Good progress has been made with regard to the challenge of acid mine drainage in the Witwatersrand area. Since the inception of the Inter Ministerial Committee on Acid Mine Drainage, the immediate solution in the Western Basin was completed and commissioned in June 2012, and the uncontrolled decant of Acid Mine Drainage (AMD) in the Western Basin effectively stopped in August 2012. The Department is currently busy with the construction of a pump station and a new water treatment plant in the Central Basin and is on target to ensure that pumping commences before the Environmental Critical Level is breached.

 

· Business Process Review Committee

 

The Business Process Review Committee (BPRC) continues to make a positive impact on the turn-around of the Department and elevating the Department to a much higher trajectory of performance. Evidence of impact of the BPRC, is firstly a significant improvement in the outcomes of the 2013 Audit, including improved performance reporting, oversight of the ongoing review of the water policy and the review of the legislative framework, the review and implementation of the organisational structure, overcoming the challenges in the ICT environment, review of the building leases, infrastructure spend and overall efficiency.

 

· Interim/Intermediate Water Supply Programme

 

In recognition of the plight of the many people without services in rural areas, the Department of Water Affairs initiated in 2012, the Interim/Intermediate Water Supply Programme (IIWSP). The intention of the programme is to focus on the 24 District Municipalities with the highest backlogs and thereafter merge with the existing initiative to address 2014 water backlogs. The programme would facilitate solutions and where possible, provide direct support and funding to areas that are not covered by existing projects within the Bulk Infrastructure Grant or the Municipal Infrastructure Grant.

 

· Water Harvest Tanks

 

The Department’s programme of distributing water harvest tanks to communities in the rural areas for (general) access has been refocused to redistribute tanks for food production as a contribution to rural development.

 

· Water Use Licensing Programme

 

A key contribution to job creation is the Department’s Water Use Licensing Programme whose focus areas are water infrastructure, mining and mining beneficiation, and energy sector, agro-processing and rural development. The Department has invested in creating jobs in the following areas – water augmentation, rehabilitation and refurbishment of the Department’s water schemes, regional bulk infrastructure grant to local government; and infrastructure being developed by water boards.

 

· Skills Development

 

The Department has recognised the need for sector skills development and for the 2013/14 financial year, and has specific targets for recruitment and training of engineers and scientists to expedite the project of building technical skills in the sector. The Department’s sector skills plan also has huge commitments towards achieving the objective of capacity building.

 

· Infrastructure Programme

 

South Africa has unveiled a massive infrastructure programme to build the economy and create jobs. The role of water in this programme is very significant as most projects require a secure source of water availability of the best quality. The water sector itself has its own infrastructure investment plan which has been quantified to cost over R660 billion over the next ten years.

 

· Water Resource Management

 

The interrelated priorities of access to water, infrastructure development in water, job creation and community participation is best highlighted in the Department’s Programme: Regional Implementation and Support. The purpose of the programme is to coordinate implementation of the Department’s strategic goals and objectives at the regional level (provincial), including the establishment of water resource management institutions. It facilitates water conservation and demand management and access to water infrastructure by communities.

 

· Constituency issues in the water sector

 

In the water sector, the following issues were responded to by the Department and its entities – access to water in rural areas; Infrastructure development for regional sewerage works projects; desalination projects; water licences; bulk water; and tender process on projects funded by MWIG, amongst others.

 

2.3 Legislation/international agreements and legislation conferred – water and environmental sectors

 

During the 2009/10 to 2013/14 review period, the Portfolio Committee finalised and adopted through briefings, public hearings and input from Members the following legislation/international agreements and legislative compliance to the Money Bills Amendment Procedure and Related Matters Act, 2009. Please note that details and reports of all Bills and international agreements listed below are available.

 

 

 

 

2.3.1 Legislation

 

The following pieces of legislation were referred, processed or finalised by the Portfolio Committee during the 4 th Parliament:

 

· In the 2011/12 period, the South African Weather Service Amendment Bill, 2011 and the National Environmental Management Laws Amendment Bill, B13-2013. The Weather Service Bill was withdrawn;

· In the 2012/13 period, the Portfolio Committee considered the following Bills – the National Environmental Management: Integrated Coast Amendment Bill, 2012; the National Environmental Management: Integrated Coastal Management Bill, 2013; National Environmental Management Laws Second Amendment Bill, 2013; National Environmental Management: Air Quality Amendment Bill, 2013; the National Environmental Management: Protected Areas Amendment bill, 2013; the South African Weather Service Amendment Bill, 2013; the National Environmental Management : Waste Amendment Bill, 2013 and the National Environmental Management Laws Third Amendment Bill, 2013. Although the Water Research Commission Amendment Bill, 2013 was referred to the Portfolio Committee, it was unable to attend to the Bill due to time constraints; and

· In the 2013/14 period, the Portfolio Committee considered the following Bills – National Water Amendment Bill (Committee Bill), 2014.

 

2.3.2 International agreements

 

The following international agreements were processed and reported on:

 

· In 2010/11 – the Lesotho Highlands Water Phase 11 Agreement;

· In 2011/12, Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits arising from their Utilisation to the Convention on Biological Diversity;

· In 2012/13, the African Convention on the Conservation of Nature and Natural Resources (‘Algiers’ Convention); and

· In 2013/14, the Benguela Current Convention on the Environmental Protection and Conservation of Benguela Current Large Marine Ecosystem and Annex V1 to the Protocol on the Environmental Protection to the Antarctic Treaty.

 

2.3.3 Obligations conferred on committee by legislation

 

The Money Bills Amendment Procedure and Related Matters Act aims to provide for a procedure to amend money Bills before Parliament, such as the Division of Revenue Bill, Appropriations Bill, Adjustments Appropriation Bill and the Taxation Laws Amendment Bill. The Bill was put into context with regard to Parliament’s oversight functions, its budgetary review and recommendations reports (BRRR) as well as its reports on the Medium-Term Budget Policy Statement (MTBPS). The Act encourages synergies between the committees by requiring that when the Committees on Appropriations consider the Division of Revenue Bill, the participation of the chairs of other committees is expected. Similarly, when the Appropriation Bill and Adjustment Appropriation Bill come before the Committees on Appropriations, there must be a consultation process with other committees.

During the period under review, and in compliance with the above-mentioned legislation, the Portfolio Committee recommended the following in response to the most important challenges in the water and environmental sectors:

 

Environmental sector

 

The Portfolio Committee reemphasised their concerns about areas and functions of the Department and their Entities that appear not to be adequately resourced. Members also expressed concerns about the adjusted allocation received by the Department through the adjusted estimate of national expenditure where requests for unforeseen and unavoidable expenses associated with an emergency medical evacuation from Marion Island was not granted. This is especially concerning in light of the fact that a request to increase the budget allocation for the programme associated with research and relief vessels (Agulhas 11 and the Algoa) required to cover unexpected quantum of the increases in fuel and food prices was also not favourably considered. The unsuccessful request means that expenses associated with the medical evacuation as well as the increased operational costs of the vessels need to be reprioritised from an already stretched budget allocation. R100 million allocated to the EPW programme (Working on Water and Working on Fire) were cut. The cuts effected over the MTEF (2013/14 to 2015/16) to the Department’s baseline allocation despite the Department’s motivated submission to Treasury also had consequences on delivery services and the measures already taken over the past three years to reprioritise the budget and meet the capacity instruments to deliver against its regulatory mandate.

 

The Portfolio Committee was, however, extremely concerned about the inadequacy of allocations in general, the impacts of the cuts to the baseline of the Department and the fact that requests for additional funding were not granted in terms of areas of work that is substantially under-resourced such as the Ocean Research Programme and areas where the ability of the country to meet our international obligations and constitutional obligations to South African citizens are being compromised due to insufficient resources.

 

Water sector

 

The Portfolio Committee recommended the following in response to the most important challenges in the water sector:

 

· The Portfolio Committee noted with concern the under expenditure recorded by the Department and the subsequent loss and funds returned to the Department of Finance. This type of under expenditure needs to be corrected and should not reoccur in future financial years;

· It was unacceptable that only 60% of targets set by the Department and agreed to by the Department, are achieved, yet 96% of the total budget has been spent. Targets set need to be SMART and results must be linked to expenditure;

· The Portfolio Committee noted with concern the amounts of 30 days or more owing to the Water Trading Entity by water users. A measurable programme with targets and dates needs to be submitted to the committee to monitor this on a quarterly basis. The Portfolio Committee further requested the Water Trading Entity to supply a detailed programme of action with specific time frames and deadlines dealing with, metering of water volumes to users, where applicable, the challenge facing charging of water consumption by non licensed users, data cleansing of information relating to water users and debtors within the Water Trading Entity;

· The Portfolio Committee noted that the number of vacancies as well as acting positions, including that of the Director-General do pose challenges to the effective work of the Department. The Portfolio Committee requested that the Department urgently expedite processes in filling vacancies;

· The Portfolio Committee requested that the Department delineate and provide updated statistics on water utilisation by sectors such as agriculture and industry; and

· The Portfolio Committee noted the critical role of water and sanitation that has been further recognised in terms of the Strategic Integrated Project (SIP 18). The Department in collaboration with the Departments of Human Settlements and Cooperative Governance, and working together with Provinces and relevant Local Government is charged with the responsibility of integrating its work, through infrastructure development, for the eradication of backlogs and sustained delivery of quality services to the people of South Africa. In order to facilitate effective and timely investment in infrastructure and improve operations and maintenance, the Department is developing a comprehensive investment plan. This plan will inform budgeting and integrated planning based on a life-cycle approach, which includes planning and construction costs, operation and maintenance, financing costs and the costs of sustainable water management. Capital investment in new water and sanitation infrastructure for the entire value chain including the refurbishment of existing infrastructure is projected to require an estimated R670 billion over the next ten years. In light of the above, the Portfolio Committee recommends that the Department must, as a matter of urgency, provide a proposed budget for the medium term in this regard.

 

3. Public Hearings

 

Public Hearings on Climate Change

 

The processing of the National Climate Change Response Policy Green Paper through public hearings in March and April 2011 was one of those flagship projects that the Portfolio Committee was involved in. The outcome of the public hearings and Portfolio Committee deliberations on the same were compiled into a set of recommendations that fed into the White Paper on Climate Change. The Portfolio Committee also held public hearings in Parliament on the White Paper upon its official adoption by Cabinet in October 2011 to gauge public views on this framework Government policy for climate change in the lead to the 17 th session of the Conference of the Parties (COP17) to the United Nations Framework Convention on Climate Change that South Africa hosted in Durban from 28 th November to 11 th December 2011. The public hearings indicated that the White Paper was a product of national consensus and also signalled to the Portfolio Committee the need to conduct regular monitoring of the implementation process of the White Paper.

 

 

 

 

Public Hearings and National Consultative Workshop on Rhino Poaching

 

The Portfolio Committee also held public hearings on Rhino Poaching to seek solutions to the mounting threats of poaching to the South African rhino population, despite many Government interventions at various levels in Parliament in the first quarter of 2012. The Department of Environmental Affairs, public and private conservation agencies, members of civil society and game farmers discussed and tendered solutions for halting the illegal trade in rhino horns .Furthermore, following these two significant parliamentary processes (a public hearing on rhino poaching in 2012, and a closed-door meeting with all law enforcement agencies relevant to the protection of South Africa’s wild rhino populations) and regular Portfolio Committee engagements with the Department of Environmental Affairs aimed at finding optimal solutions to the ongoing challenge of rhino poaching. In addition to the local stakeholders, the Portfolio Committee invited members of Parliament from rhino range States on the Continent with the aim of sharing experiences on the challenges of rhino conservation and also learning from the many discussions at the workshop, and go back informed to lobby and facilitate their respective governments to adopt an African common position on a limited regulated trade in rhino horns, using existing stockpiles.

 

Public Hearings on Acid Mine Drainage

 

Acid Mine Drainage (AMD) that became a major environmental issue in the Witwatersrand area in the Gauteng Province was another flagship project that the Portfolio Committee grappled with, in the period under review.

 

Public Hearings on Efficacy of the Environmental Impact Assessment Regime in South Africa

 

The Portfolio Committee on Water held public hearings on Environmental Impact Assessment (EIA) regime, and specifically looking at the difficulties experienced with EIA processes and the manner in which South Africa could achieve a balanced EIA regime.

 

Public Hearings on National Waste Management Strategy

 

The legacy of inadequate waste services, poorly planned and maintained waste management infrastructure, and limited regulation of waste management, persistently threatens the health and wellbeing of everyone in the country. Addressing this legacy and its negative environmental and social consequences advances people’s constitutional right to a healthy environment. The aims of the public hearings was to address the past gaps and imbalances in waste management.

 

Public Hearings on the Draft National Water Resources Strategy

 

The reasons for the public hearings were to solicit comments on the gaps and areas that require improvement in the Draft National Water Resources Strategy 2 nd Edition, 2013, and also to seek best practices in water resources management, especially in those countries that have similar environmental and hydrological parameters with South Africa in order to optimise and leapfrog the nations water resource management initiatives.

 

4. Oversight trips/study tours

 

The following oversight trips/study tours were undertaken:

 

Oversight visit to Gauteng and North West

 

On 27 – 30 July 2010, the Portfolio Committee undertook an oversight visit to Gauteng and North West Provinces to ascertain in specific sites the levels of Acid Mine Drainage (AMD) and its subsequent impact on groundwater, rivers and dams. The Portfolio Committee recommended that the Department of Water Affairs produce a business plan on how it intends to tackle the AMD threat in the short, medium and long term. Such a plan should include timelines, budgetary projections and a plan of action. Subsequent to the initial oversight on AMD, the Portfolio Committee in 2011, 2012 and 2013 prioritised and received progress reports on the initiatives undertaken to address AMD in the most affected areas.

 

Oversight visit to Mpumalanga and KwaZulu-Natal Provinces

 

In the course of briefings by officials within the water and environmental sectors in 2011, the Portfolio Committee decided, on 24 – 30 July 2011 to evaluate and assess the theoretical components of briefings against the findings at site visits to ensure correlation and compliance on the ground aspects relating to management of national parks. The Portfolio Committee undertook site visits to the Kruger National Park, iSimangaliso Wetland Park, as well as receiving specialised briefings on Botshelo and Bushbuckridge Water Boards, Inkomati Catchment Management Agency and the Komati Basin Water Authority (KOBWA).

 

The Portfolio Committee visited the Kruger National Park to:

 

· Assess the way in which the officials undertake their mandate to ensure sustainable development through slowing down biodiversity loss, fragmentation of habitats and resource depletion as well as impaired ecosystem functioning;

· Assess the manner in which compliance and enforcement measures with regard to wildlife are undertaken; and

· Assess whether the recent proposals to develop the Kruger National Park will impact on the environment in terms of the natural life and noise pollution;

 

The visit to iSimangaliso Wetland Park was to:

 

· Obtain a realistic and informed picture of the challenges confronting Lake St Lucia;

· Assess the manner in which the grant of US$9 million secured from the Global Environment Facility for the Park will be disbursed; and

· To meet with St Lucia residents who want the estuary open for fishing purposes.

 

The Portfolio Committee was satisfied with the proposed hotel developments in the Kruger National Park, as long as these developments are subject to EIA process, as explained by the Department of Environmental Affairs. The Portfolio Committee was impressed by the way in which the iSimangaliso Wetland Park Authority was managing the Wetland Park, considering the limited financial resources and human capital at hand. Members appreciated the effort of the Park Authority in using the world heritage status of the Park to mobilise international funding from the Global Environmental Facility to undertake crucial studies that contribute to the effective management of the Park.

 

In response to water governance issues, the Portfolio Committee requested that:

 

· The Department and Rand Water brief the Portfolio Committee on the findings and recommendations of the “Due Diligence’ report;

· The Portfolio Committee needs to track the strategies and timeframes proposed by the two water boards in terms of their turnaround strategy; and

· The meetings in Mpumalanga provided an overview of the turnaround strategy of the boards, the performance of Inkomati and KOBWA. It is therefore necessary for the Portfolio Committee to track progress of the projected strategies and timeframes of all these entities.

 

Oversight visit to Gauteng Province

 

On 2 – 5 August 2011, the Portfolio Committee undertook an oversight visit to the Gauteng Province to hold a workshop with the Department of Water Affairs and Department of Environmental Affairs to discuss, among others, the outstanding matters after various interactions and strategic plan discussions between the Portfolio Committee and the departments. The workshop focused on the following critical areas – review of the work of the Water Trading Entity, optimal institutional arrangement for the establishment of annual water tariff increases, feasibility and appropriateness of an independent regulator, overview of all databases and statistics captured by the Departments and its entities on matters relating to the water and environmental sectors, review of the seven (7) reconciliation/feasibility plans of the Department of Water Affairs, compilation of the South African Outlook and study on the health of rivers.

 

Oversight visit to Lesotho Highlands Water Project

 

On 1 – 3 October 2012, the Portfolio Committee undertook a site visit to Phase 1 of the Lesotho Water Highlands Project to assess the achievements of the initiative; scrutinise the plans for the operationalisation of Phase 11; and consider the significant financial resources that South Africa and Lesotho committed to this public-funded project.

 

Oversight visit to Gauteng Province

 

On 24 – 27 July 2013, the Portfolio Committee undertook an oversight visit to the Gauteng Province to assess matters emanating from public hearings and briefings by the Department of Water Affairs and Department of Environmental Affairs. The aim was also to open opportunities for further engagements with the Department of Environmental Affairs and Department of Water Affairs and their respective Entities.

 

5. Other stakeholders important to the work of the Portfolio Committee

 

Wilderness Foundation; Mr Terry Bengis ; WWF ; WESSA ; Eastern Cape Parks and Tourism Agency ; Ezemvelo KZN Wildlife; Dr Mark White ; Chemical and Allied Industries Association ; AGRISA ; BUSA; Council for Scientific and Research; South African Faith Communities Environment; Institute Climate; Justice Off; the Ground Ekasi Youth Development; EarthLife; Chamber of Mines; Eskom; SASOL; Centre for Environment Rights; Legal Resources Centre; Federation for Sustainable Environment; Oxfam; Association for Cementious Material Producers; Commission for Gender Equality; South African Council of Churches; South African Local Government Association (SALGA) and the South African Medical Association.

 

6. RESPONSIBILITY OF THE WATER AND ENVIRONMENTAL SECTORS IN SOUTH AFRICA

 

The following sectors fall within the work of the Portfolio Committee – water and environment. The Department of Water Affairs and its entities, as well as the Department of Environmental Affairs and its entities, are mandated to undertake work in these two sectors.

 

6.1 Department of Environmental Affairs and their Entities

 

The Department of Environmental Affairs is mandated to ensure the protection of the environment and conservation of natural resources, balanced with sustainable development, and the equitable distribution of the benefits derived from natural resources. In its quest for better use and management of the environment, the Department is guided by its constitutional mandate, as contained in section 24 of the Constitution, 1996, as well as Acts of Parliament, regulations and policies. The work of the Department is supported by the following Entities:

 

South African National Biodiversity Institute (SANBI)

 

The South African National Biodiversity Institute (SANBI) was established on 1 September 2004 in terms of the National Environmental Management: Biodiversity Act (Act No 10 of 2004). The mandate of SANBI is to play a leading role in South Africa’s national commitment to biodiversity management, now and into the future. In partnership with the Department of Environmental Affairs and the biodiversity sector, SANBI is tasked with leading the biodiversity research agenda.

 

South African Weather Services (SAWS)

 

The South African Weather Service (SAWS) was established in accordance with the South African Weather Service Act (Act No 8 of 2001). Its mandate is gazetted in the act. In terms of its vision statement, the SAWS strives “to be the foremost provider of relevant services in respect of weather, climate and related products, which contribute to sustainable development in South Africa and the African continent.

South African National Parks (SANParks)

 

South African National Parks (SANParks) was established in terms of the National Environmental Management: Protected Areas Act, 2003 (Act No 57 of 2003). In terms of this Act, the primary mandate of SANParks is to oversee the conservation of South Africa’s biodiversity, landscapes and associated heritage assets through a system of national parks.

 

iSimangaliso Wetland Park

 

In December 1999 the iSimangaliso Wetland Park was inscribed as South Africa’s first world heritage site as an area of exceptional and outstanding universal heritage significance. The natural values in terms of which the iSimangaliso Wetland Park was inscribed on the World Heritage List include outstanding examples of ecological processes, superlative natural phenomena and scenic beauty, and exceptional biodiversity and threatened species. The iSimangaliso Wetland Park has thus received recognition under three of four natural criteria recognised by the World Heritage Convention.

 

6.2 Department of Water Affairs and their Entities

 

The Department of Water Affairs is the custodian of South Africa’s water resources. The Department is primarily responsible for the formulation and implementation of policy governing this sector, and also has an overriding responsibility for water services provided by local government. While striving to ensure that all South Africans gain access to clean water and safe sanitation, the water sector also promotes effective and efficient water resources management to ensure sustainable economic and social development. The work of the Department is supported by the following entities:

 

Trans-Caledon Tunnel Authority (TCTA)

 

The Trans-Caledon Tunnel Authority was established in 1986 to undertake certain tasks emanating from the treaty on the Lesotho Highlands Water Project on behalf of the South African government. The project aims to augment water supply to the Vaal system and to generate hydroelectric power in Lesotho. The authority was directed by the department to fund all costs incurred in the water delivery component of the Lesotho Highlands Water Project, and to undertake financial risk management on behalf of South Africa.

 

Water Research Commission (WRC)

 

The Water Research Commission’s terms of reference are to promote co-ordination, communication and co-operation in the field of water research, to establish water research needs and priorities from a national perspective, to fund research on a priority basis, and to promote the effective transfer, dissemination and application of research findings. The Commission plays an important role in developing high-level human resources in the sector. No grants are made to the Commission as its work is funded by a levy on water users.

 

Catchment Management Agencies (Inkomati Catchment Management Agency and Breede-Overberg Catchment Agency

 

Catchment Management Agencies (CMAs) are established in terms of Chapter 7 of the National Water Act, (Act No.36 of 1998) and are classified as Schedule 3A public entities in terms of the Public Finance Management Act, (Act No. 1 of 1999) as amended. Catchment Management Agencies manage water resources at a catchment level through continuous engagement with all stakeholders and devolve decision making to the lowest level for the benefit of all water users within their water management area. They ensure that water is used to support equitable and sustainable social and economic transformation and development.

There are currently two operational CMAs in the country, the Inkomati CMA (ICMA) and the Breede-Overberg CMA (BOCMA) and they receive grant funding from the Department.

 

The main reasons for establishing catchment management agencies are to provide equitable access to water; achieve sustainable use of water and to achieve efficient use of water. This was in line with the National Water Act and the framework of the National Water Resources Strategy. This allowed the Department of Water to delegate water resource management to the regional or catchment level and to involve local communities.

 

12 Water Boards – Amatola, Bloem, Botshelo, Bushbuckridge, Lepelle Northern, Magalies, Mhlathuze, Overberg, Pelladrift, Rand, Sedibeng and Umgeni

 

The 12 water boards were established as water service providers that report to the Minister of Water and Environmental Affairs. These boards manage water services within their supply areas, and supply potable water at cost-effective prices to municipalities.

 

Irrigation Boards and Water User Associations

 

In terms of sections 61 and 62 of the National Water Act (36 of 1998), the policy framework for financial assistance to water management institutions for irrigated agricultural development endeavours to promote initial access to irrigated agriculture and to enhance sustainable irrigation development by subsidizing emerging farmers.

 

Currently, all irrigation boards are in the process of being transformed into water user associations to fall under the ambit of the National Water Act. In 2003/04, additional funds were allocated for writing off unrecoverable debts from some water user associations.

 

Komati River Basin Water Authority (KOBWA)

 

The Komati Basin Water Authority (KOBWA) is a bi-national company formed in 1993 through the treaty on the Development and Utilization of the Water Resources of the Komati River Basin signed in 1992 between the Kingdom of Swaziland and the Republic of South Africa. The purpose of KOBWA is to implement Phase 1 of the Komati River Basin Development Project. Phase 1(a) comprises the design, construction, operation and maintenance of the Driekoppies Dam in South Africa and the Maguga Dam in Swaziland (Phase 1b).

 

7. CONSTRAINTS IN UNDERTAKING OVERSIGHT WORK OF THE PORTFOLIO COMMITTEE ON THE DEPARTMENTS AND ITS ENTITIES DURING THE 4 TH PARLIAMENT

 

Fixed agenda items

 

The Portfolio Committee noted that certain Executive documents, according to the PFMA, as well as National Treasury regulations, must be considered within a certain timeframe. These entail the strategic plans, annual performance plans, budget vote, policy, and legislation of Departments and its entities. An alignment of parliamentary programmes to those of mandatory oversight issues should be reflected as a fixed agenda item on the parliamentary programme and imperative that time is given to all committees to consider these issues.

 

One portfolio overseeing two large departments

 

The re-alignment of departments, Department of Water Affairs and Department of Environmental Affairs under one Ministry, has had implications for the work of the Portfolio Committee on Water and Environmental Affairs. This has resulted in one portfolio committee focusing on two different sectors, water and environment with approximately 22 entities to oversee. It is important for the committee to complete all the relevant annual reports of the two departments and 22 entities. The above process also translated to the committee’s interrogation of the budget vote and strategic plans of 2 departments; and analysis of transfers to 22 entities and strategic and business plans of 22 entities. A number of pieces of legislation were reviewed by the committee in the period under review, and this entailed time-consuming deliberations of the members of this committee.

 

The public demand on these two large departments in terms of service delivery is woefully huge and complex. The oversight function of the Portfolio Committee on Water and Environmental Affairs on these two departments and their respective entities has increased, placing tremendous pressure, within limited timeframes on substantively dealing with issues in either sector. It is important for Parliament to reconsider creating two separate Portfolio Committees – one dealing exclusively with water and the other with environment.

 

Tagging of Bill

 

Whilst the Portfolio Committee finalised and processed the National Environmental Management: Protected Areas Bill, the tagging of the Bill as a Section 75 Bill posed a few procedural concerns to the Portfolio Committee. The Parliamentary Legal Advisers tagged the Bill as a Section 75 Bill, but the Portfolio Committee disagreed and argued that the Bill should be tagged as a Section 76 Bill. The argument used by the Portfolio Committee is that the original NEM:PA Act was passed as a Section 76 Bill, and it was considered incongruous for an Amendment Bill to be classified as a Section 75 Bill, contrary to the Act which it relates to having been tagged and passed as a Section 75 Bill. The Bill was recommitted to the Portfolio Committee. The Joint Tagging Mechanism made a ruling on the matter and retained the tagging of the Bill as a Section 75 Bill.

 

International agreements and treaties

 

Agreements and treaties referred to the Portfolio Committee during the 4 th Parliament raised important debates on the role and engagement of committees on agreements at different stages of negotiations prior to them being tabled for approval by Parliament. The thinking behind the above is that if committees are fully informed at all stages of the negotiating process when the Executive is considering agreements or treaties, it is envisaged that valuable inputs from a diverse group of stakeholders, representing a broad spectrum of citizenry, would give effect to the underlying principles of democracy. Currently, the practice leads either to an option of an agreement, which is approved with concerns or reservations, or the more difficult route of parliamentary committees withholding its approval, which may lead to a protracted process of having to engage on agreements after the fact.

 

8. KEY CHALLENGES IN THE WATER AND ENVIRONMENTAL SECTORS

 

Whilst noting the reforms in the water and environmental sectors, reports by the Department of Water Affairs and the Department of Environmental Affairs, highlight the challenges confronting the environment and water sectors in South Africa. In its first ‘Environmental Performance Review of South Africa, 2013’, the Organisation for Economic Co-operation and Development (OECD) praises South Africa’s progress made with reforms that improves the well-being of South Africans and preserves its rich natural habitat, but like the respective Departments, notes the challenges highlighted below. In further aligning and strengthening the Departments’ plans, programmes and goals with the priorities of Government initiative, the Departments will need to give further consideration to the following issues.

 

Improving access to environmental services (water, sanitation, waste management)

 

South Africa has made good progress in improving access to environmental services (water, sanitation, waste management). However, further investment is necessary to continue this progress and improve access to, and quality of, services. A key obstacle is the inadequate level and design of service charges, which do not cover operational, and maintenance costs, let alone investment.

 

Uptake of funds for high-impact green economy projects

 

A number of incentive and funding mechanisms are in place to support private sector investment in environmental infrastructure and the green economy. These include the South African Green Fund, established in 2012 to provide catalytic finance for high-impact green economy projects. However, the uptake of these funds and their effectiveness in improving energy and resource use remain unclear.

 

National Protected Areas Expansion Strategy

 

The government needs to ensure that sufficient resources are allocated to implement the National Protected Areas Expansion Strategy cost-effectively, using a combination of land purchase and stewardship agreements; ensure the rights and interests of local communities are fully taken into account; and provide additional support to local communities to enable them to develop competitive biodiversity-related services and products.

 

Implementation of the national Spatial Planning and Land-Use Management Act

 

The government needs to ensure that the implementation of the national Spatial Planning and Land-Use Management Act integrates development and physical planning; establishes uniform procedures and coordination mechanisms for spatial planning management at the provincial and local levels; and takes adequate account of the interests of traditional rural communities.

 

Water resources management

 

South Africa has adopted a modern, integrated approach to water resources management. However, the institutional barriers to its implementation have seriously limited policy effectiveness. Water resources management – a national responsibility implemented through regional offices – is not adequately integrated with the provision of water services, which is a municipal responsibility. The second National Resource Strategy provides an opportunity to address some key institutional challenges in the water sector. A need exists to prioritise the establishment of the water catchment management agencies in line with the second National Water Strategy; and ensure they better integrate water resources management, the provision of water services and land use through enhanced engagement of all government and non-governmental stakeholders, including traditional authorities.

 

Strengthening the environmental Strategic Integrated Projects (SIPs)

 

As part of the programme of stimulating the economy and creating jobs, government has developed a programme of eighteen Strategic Integrated Projects (SIPs) largely focused on infrastructure development. The majority, if not all, have strong implications for water, requiring water availability for economic development, or the availability of potable water. Therefore the protection of water resources will be crucial. The Department must therefore ensure that the water related elements of the projects are integrated into the project plans and are effective. To enable the SIPs programme, the following issues have been identified and must be addressed: review of water use rights, implementation of water allocation reform, water build programmes and water pricing.

 

References of National Planning Commission in relation to water

 

The Department of Water, in addition to the SIPS, needs to take special cognisance of the references of the National Planning Commission in relation to water to:

 

· Invest in irrigation infrastructure, including water storage, distribution and reticulation, and water saving technology;

· Manage and monitor water resources for growth and sustainability;

· Develop water re-use and desalination options to meet local needs;

· Assure water supplies by investment and re-use;

· Put in place water conservation and demand management programmes; and

· Ensure appropriate institutional arrangements for water resources management.

 

Challenges at municipal level in relation to delivery of water services

 

The Department together with the Catchment Management Agencies (CMAs) and the Trans Caledon Tunnel Authority (TCTA) are responsible for water resources, bulk water services infrastructure and catchment or national water management while local government has the constitutional obligation to provide water and sanitation services within their area of jurisdiction. However, there are major challenges at the municipal level in relation to the delivery of water services. These challenges include poor maintenance and refurbishment of infrastructure resulting in increasing interruptions in supply and high levels of unaccounted for water; poor management of wastewater treatment works resulting in deteriorating raw water quality in receiving water resources; slow delivery of sanitation services, and unaffordable technology choices in some areas. The challenges are further compounded by the inadequate cost recovery in the water services sector.

 

Despite the significant funding of water services through, inter alia , the equitable share and the Municipal Infrastructure Grant (MIG), there is considerable evidence that a very low proportion of the equitable share is actually spent on water services. In addition, billing and cost recovery are generally poor, with some areas in essence not being billed at all. As a result, daily operations and especially longer term maintenance are significantly underfunded. The result of poor municipal water management increases the demand of water quantities whilst decreasing raw water quality, both of which have major implications for water resources management, with associated financial and regulatory implications.

 

The role of the Department of Water Affairs and Water Boards

 

The role of both the Department and Water Boards in supporting local government with providing water services has been under the spotlight, and must be enhanced in the coming years. Intergovernmental co-ordination remains a significant challenge, as is seen through the lack of integration of water into/with other sector plans, and through poor co-ordination between departments. Water use licensing to support sustainable social and economic development is also a critical challenge.

 

9. KEY AREAS FOR FUTURE WORK IN THE WATER AND ENVIRONMENTAL SECTORS

 

9.1 Water sector – Department of Water Affairs and their Entities

 

Planned policy initiatives for the 2013/14 to 2017/18 period

 

The planned policy initiatives over the period to align the Department’s focus on job creation, compliance, improved infrastructure development in water, as well as ensuring equitable access to water over the medium-term are as follows:

 

Review of the water-related legislation

 

The Department is reviewing the National Water Act, 1998 (Act 36 of 1998), the Water Services Act, 1997 (Act No 108 of 1997) and the Water Research Act, 1971 (Act No 34 of 1971). While the National Water Act provides a legal framework for the progressive realisation of the right to access to sufficient water, the act is under review to ensure that there is equity in the allocation of water, to improve water resources management and to streamline the regulatory processes. The Water Services Act is being reviewed to improve provision of water services to ensure alignment with the provisions of the Municipal Systems Act, 2000 (Act No. 32 of 2000) and the Municipal Finance Management Act, 2003 (Act No. 56 of 2003). The Water Research Act is under review to improve the governance of the Strategic Plan: 2013/14 to 2017/18 Water Research Commission and to align the act with all other applicable legislation.

 

Implementation of the second National Water Resource Strategy, 2013

 

The Department is in the process of implementing the second National Water Resource Strategy. This initiative provides an opportunity to ensure that water is at the centre of planning and that it supports the broad national economic and social development goals through the Water for Growth and Development (WfGD) framework without compromising the long-term sustainability of water resources.

 

Revision of the water pricing strategy

 

The Water Pricing Strategy sets out the government’s approach to pricing raw water. It provides, in principle, for full cost pricing for non-agriculture water users, including depreciation and a return on assets (ROA). In practice, annual price increases have been capped and hence prices are below full cost for most agricultural water schemes and some schemes dedicated to industrial and domestic supply. The review of this strategy seeks to improve the financial viability of government’s bulk raw water business to ensure that this scarce resource is valued by all citizens.

 

Development of the funding model

 

The purpose of the development of the funding model is to determine the variety of financing mechanisms or models adopted in South Africa and internationally to fund infrastructure. The project will look at the principles of infrastructure funding and financing and help to identify the lessons learnt that can shape future investment decisions in the South African water sector. Apart from identifying key success factors, the review is also expected to explore innovative and off-budget financing mechanisms, in order to consider their suitability for the South African water sector.

 

Development of an economic regulator

 

This project explores international practice in economic regulation in the water sector, as well as economic regulation in other sectors in South Africa, in order to support the development of an economic regulator for the water sector in South Africa. The project will look into an economic regulator that regulates the entire water value chain. It will outline the functions and identify gaps in the current legislative framework for regulating the water sector. This will lead to the establishment of an effective economic regulator.

 

Institutional Reform and Realignment

 

The Department has initiated the Institutional Reform and Re-alignment project with the aim of enhancing institutional readiness to fast-track service delivery and handle water challenges and management of water resources both at present and in the future. The Institutional Reform and Realignment Process was finalised in the course of the work of the 4 th Parliament and one of the key issues that emerged was the process of consolidating water boards from 12 to 9. The consolidation of water boards is well underway which will extend gazetted areas of these water boards and expand their functions. The institutional framework to improve water resource management is another initiative, which commits to the establishment of nine (9) catchment management areas within three years and to formalise the nine regional entities to provide regional bulk infrastructure and to support municipalities on bulk water provision. The process to establish nine (9) catchment management areas is also progressing smoothly and will be instrumental in managing water resource management into the future.

 

Challenges relating to Acid Mine Drainage

 

Good progress was made with the progress to the challenge of acid mine drainage in the Witwatersrand area. Since the inception of the Inter Ministerial Committee on Acid Mine Drainage, the immediate solution in the Western Basin was completed and commissioned in June 2012, and the uncontrolled decant of Acid Mine Drainage in the Western Basin effectively stopped in August 2012. The Department is currently busy with the construction of a pump station and a new water treatment plant in the Central Basin and is on target to ensure that pumping commences before the Environmental Critical Level is breached.

 

Monitoring of the Municipal Water Infrastructure Grant

 

The Municipal Water Infrastructure Grant (MWIG) was set up to assist Water Services Authorities to provide water supply services to consumers currently without services, particularly in rural areas. The purpose is to facilitate the planning, acceleration and implementation of various projects that would ensure water supply to communities as not receiving a basic water supply service. The outcomes for increased household access to water supply was enabled through interim, and/or intermediate and/or refurbishing and/or upgrading of existing infrastructure to communities identified as not receiving a basic water supply service, reduction in water losses and non-revenue water, and access to water supply which was implemented in an appropriate and sustainable manner and which culminated in effective asset management.

 

The conditions for MWIG are that all conditional grants have frameworks that specify conditions and responsibilities for the grant. If these conditions were not met, the Department could withhold or stop the transfer of funds, giving them powerful tools to ensure the successful implementation of the grant. All receiving municipalities would be required to conclude formal agreements with the Department prior to implementation of the project(s). Projects were to be identified by municipalities and must form part of the Integrated Development Plan (IDP) and Water Services Development Plan (WSDP) of the relevant municipality. A technical team comprising the Department of Water Affairs, Department of Cooperative Government and Traditional Affairs, water boards, water services authorities and MISA must approve all designs and interventions of any project to be funded where the cost of the project was in excess of R20 million.

 

9.2 Environmental sector – Department of Environmental Affairs and their Entities

 

Planned policy initiatives for the 2013/14 to 2017/18 period

 

To promote, facilitate and lead cooperative environmental governance to support the transition to environmentally sustainable development across all spheres of government, this requires the Department to over the next five years, not only to efficiently, transparently and accountably govern its infrastructure, financial and human resources, but also to: promote environmental education, awareness and communication, provide strategic, evidence-based spatially referenced and policy relevant research and information for environmental and sustainable development decision-making at all levels; facilitate the mainstreaming of sustainable development and environmental objectives into planning instruments at national, provincial and local government levels; facilitate and support South Africa’s transition to a sustainable, low carbon green economy, through the National Green Fund and the Department’s EPWP Environmental Programmes. These overarching strategic goals, outcomes focus and priorities inform the strategic overview, planned policies and implementation approach of departmental programmes over the next five years, as follows:

 

Legal, authorisation and compliance enforcement

 

The Department has, according to its constitutional and legislative mandate have a regulatory role to protect and enhance the productivity, quality and safety of the environment. To achieve this, the Department seeks to promote compliance with environmental legislation and to decisively act against deliberate transgressors. Although the Department has noted an increase in voluntary compliance with environmental legislation by industry, the Department will encourage this trend over the next five years. The Department will continue to promote and increase the capacity and skills of the environmental management inspectorate operating at local, provincial and national levels and in collaboration with other security and justice agencies. In order to enhance environmentally responsible and sustainable land and infrastructure development, the Department will ensure the development and implementation of instruments to improve the efficiency and effectiveness of environmental impact management system across the country. This effort will include, firstly, the development of zoning and risk management tools (such as Strategic Environmental Management Frameworks (EMFs) and Strategic Environmental Assessments (SEAs). Secondly, to integrate these instruments into the country’s development planning and authorisation system, where appropriate through legislation. Immediate priorities are critical development areas and sectors experiencing increasing development pressures, such as for the high volume of renewable energy development applications made in terms of the IRP and the energy Strategic Infrastructure Programme (SIP).

 

Oceans and coasts

 

Marine and coastal environmental national assets provide and sustain a wide range of economic, social and ecological services that are a foundation for the livelihoods of millions of South Africans, which not only underpin national and international transport, mining, coastal tourism and fisheries industries but also are vital component of the climate system as a Carbon sink and global temperature controller. As such, climate change related issues such as ocean fertilisation/ pollution, ocean acidification, sea level rise and related storm surges have profound impacts on coastal infrastructure, development opportunities and the livelihoods of coastal communities.

 

The policy and regulatory framework to facilitate sustainable coastal development and conservation is outlined in the Integrated Coastal Management Act (2009) which enables the Department to focus on the formulation of coastal management strategies, spatial development and management plans, norms and regulations that guide sustainable development, land based pollution control/ management, oil spill response and conservation programmes in collaboration with National, provincial and Local Authorities.

 

However, the policy and regulatory framework guiding sustainable development, conservation and management of ocean environmental resources and assets has not yet been completed and the development of an ocean environmental management strategy and regime is the immediate focus of the Department based on scientific evidence and research to be conducted in Antarctica, Prince Edward Islands and in the Indian, Atlantic and Southern Oceans.

 

Climate change and Air Quality Management

 

It is estimated that air pollution costs the public health system over 3 billion Rand to address air quality related respiratory infections each year and this pollution includes Green House Gas (GHG) emissions which are the cause of human induced global warming and climate change. Climate change is one of the greatest challenges of this century and impacts on global environmental, social and economic systems as it threatens to undermine South Africa’s past development gains as well as its future potential.

 

Addressing air pollution emissions has significant climate change mitigation benefits and in terms of the Air Quality Management Act the medium term focus of the department is to develop and facilitate the implementation of a regulatory framework to improve and monitor ambient air quality through licensing, priority area management plans, a vehicle emission strategy and related implementation tools. As part of the monitoring and evaluation of this air quality regulatory framework, the South African Air Quality Information System will also collate data on the emissions of GHG’s contributing to the monitoring of the country’s efforts to address climate change.

 

The National Climate Change Response White Paper guides immediate and long term action to adapt to the already measurable impacts of climate change and to reduce GHG emissions. The medium term priorities are to develop and facilitate the implementation of a climate change adaptation and mitigation regulatory framework, which enables the transition of the economy to a climate resilient, low carbon, job creating growth path through clear sector based objectives, market, non-market and fiscal incentive and disincentive instruments, sector implementation plans and a comprehensive monitoring and evaluation system.

 

Biodiversity and Conservation

 

South Africa’s is rich in species, ecosystems and natural heritage which form the very foundation of our economy and society, providing eco-system services such as food security, clean and secure water provision, flood attenuation, biomass energy and building material as well as a resource base for the sustainable development and growth of the tourism, bio-technology, pharmaceutical, bioenergy, agriculture, forestry, fisheries and indigenous knowledge based sectors of the economy.

 

Therefore, the department is mandated to ensure the equitable and sustainable use, conservation, management and, where necessary, the restoration of this resource base as well as to mitigate threats to them as a basis for sustainable and inclusive socio-economic development. In this regard, the department’s medium term focus is firstly, on implementing the protected areas expansion strategy to ensure that all critical and endangered biodiversity, ecosystems and natural heritage areas are represented in the conservation and heritage estate; and secondly, the development and implementation of policies and management plans to effectively manage and attract investment into this estate, particularly investment in infrastructure for trans-frontier and community based conservation areas to support sustainable economic development.. Thirdly, the department will further develop and facilitate the implementation of a regulatory system for the protection of indigenous biodiversity and ecosystems from unscrupulous exploitation and other threats (such as the invasion by alien species) in order to secure the resource base for the sustainable development of the bio-economy and protection of local indigenous knowledge, including through regulatory control of the sustainable use based bio-prospecting, alien invasive species, hunting, threatened species and biodiversity trading sectors of bio-economy.

 

Environmental Programmes (Employment creation)

 

In all 12 priority government outcomes, job creation features as a priority output. In the context of this imperative and the constitutional mandate to ensure safe, healthy and sustainably managed environment which provides critical eco-system services as a foundation for economic and social development, the department aims to facilitate a transition to an environmentally sustainable, job creating and low carbon green development pathway, with a particular focus on the contribution of the environment sector. Unsustainable production, consumption, land use practices, alien species invasions and the impacts of climate change result in degraded land and ecosystem productivity and threatens both current future development opportunity. The departmental mandate to sustainably manage, restore and maintain degraded ecosystems and their associated ecosystem services presents an opportunity to contribute significantly to job creation, social inclusion and the low carbon green economy through environmental Expanded Public Works Programme (EPWP) and through the National Green Fund aimed at catalysing scaled up investment in climate resilient, low carbon sustainable development. Over the medium term the department will focus on developing job creation, sustainable development and climate friendly co-benefits through the National Green Fund catalysing investment flows into Green Economy Programmes as well as further developing its Working for Waste, Land Restoration and Working for Energy EPWP programmes and intensifying existing invasive alien plants, wild fires, wetlands, land and forest degradation, river health; coastal and parks programmes, particularly exploiting the potential creation of value-added industries.

 

Chemicals and Waste Management

 

This environmental sub-sector is extremely under-capacitated, particularly in Municipalities resulting in poor waste and chemicals management which has serious impacts on the well-being and health of South Africans. The priorities over the medium term in this area are to improve the provision of quality waste management to services across the country with clear environmental health benefits for communities which previously had no access to waste management services and with significant job creation potential throughout the waste management hierarchy, including waste minimisation, recycling, transport, storage and disposal as well as developing new industries based on specific waste streams, such as tyres, health risk and hazardous chemical waste. These benefits will be achieved through the formulation and facilitating the implementation and enforcement of strategies, norms, standards and regulations to fully give effect to the national Environmental Management: Waste Act (2008) and building capacities, particularly at local government level.

 

10. RECOMMENDATIONS

 

Parliamentary coordination of programme to set agenda items

 

An alignment of parliamentary programmes to those of mandatory oversight issues should be reflected as a fixed agenda item on the parliamentary programme and imperative that time is given to all committees to consider these issues.

 

Minutes of the Portfolio Committee

 

The Portfolio Committee is of the opinion that the good governance practice of passing minutes of the Portfolio Committee in the week after is preferable and should diligently be pursued by the incoming Portfolio Committee.

 

Legislation/International Agreements

 

A number of Parliaments worldwide are either at the stage of operationalising, working toward or debating their modus operandi to position themselves more advantageously to tackle the international agenda. With a few exceptions, Parliaments have an important constitutional role to play in relation to the ratification/accession/signing of different international agreements or treaties. Currently, most Parliaments have a major role in overseeing the implementation of international agreements and treaties. As a proposed resolution, the Portfolio Committee suggested that the Parliament of the Republic of South Africa be fully informed at all stages of the negotiation and conclusion of international agreements. This would increase the chances that Parliaments would approve a negotiated agreement to allow for a more predictable procedure and to reduce the chances of failing to conclude international agreements when negotiations had already been concluded

 

Prioritise constituency issues as key component in the programme

 

The Portfolio Committee recommends that Parliament should create a space in committee programmes to prioritise constituency issues.

 

The effective use of the Budgetary Review and Recommendation Process by Portfolio Committees

 

Section 5 of the Money Bills Amendment Procedure and Related Matters Act, No 9 of 2009 provides that the National Assembly, through its committees, must annually assess the performance of each department and annually submit Budgetary Review and Recommendation Report (BRRR) for tabling in the National Assembly. The BRRR is thereafter submitted to the Finance Minister and Cabinet Member of a Vote. It is therefore critical that Parliament, through its committees strengthen this process by ensuring the effective working of the Budget Office to proactively influence and inform budget votes.

 

General Recommendation

 

As an overarching recommendation which could apply to all committees in Parliament, the Portfolio Committee suggests that Parliament:

 

· Thematically approach the issue of management of the legislative and oversight programme by using the following broad concepts to ascertain the impact of programmes, policies, legislation and implementation – macroeconomics and social policy, democratisation and social policy, health care: global and local dynamics and policy responses, and gender and social policy;

· Provide forums by which committees engage jointly on drafting out programmes, which will assess government’s progress of the above themes;

· Monitor committee programmes to evaluate the extent to which cross referencing departmental programmes, policies, strategic plans, budgets are aligned to the broader imperatives set out in the priorities of the Executive; and

· Undertake a legislative and policy needs assessment: a legislative and policy needs assessment is a comprehensive statement of the needs of a legislature, and should suggest programme options designed to help the legislature better perform its representation, lawmaking and oversight functions.

 

 

 

References

 

Department of Water Affairs, Strategic Plans and Budget Votes for the fiscal years 2009 to 2014

 

Department of Environmental Affairs, Strategic Plans and Budget Votes for the fiscal years 2009 to 2014

 

Parliament of the Republic of South Africa, Reports and Minutes of the Portfolio Committee on Water and Environmental Affairs for the 2009 to 2013 period

 

Organisation for Economic Co-operation and Development, Environmental Performance Reviews, South Africa, 2013