ATC150623: Report of the Portfolio Committee On Higher Education and Training on the Strategic Plan 2015/16 – 2019/20 and Annual Performance Plan 2015/16 of Themining Qualifications Authority (Mqa) and Transport Education and Training Authority (Teta), dated 17 June 2015

Higher Education, Science and Innovation

REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON THE STRATEGIC PLAN 2015/16 – 2019/20 AND ANNUAL PERFORMANCE PLAN 2015/16 OF THEMINING QUALIFICATIONS AUTHORITY (MQA) AND TRANSPORT EDUCATION AND TRAINING AUTHORITY (TETA), DATED 17 JUNE 2015

The Portfolio Committee on Higher Educationand Training, having met with the MQA and TETA, reports as follows:

1. Introduction

The Portfolio Committee convened a meeting with the MQA and TETA on 20May 2015 to consider their Strategic Plan 2015/16 – 2019/20 and Annual Performance Plan 2015/16. This report accounts for work done by the Portfolio Committee during assessment of their plans. The report further makes financial and non-financial recommendations for consideration by the Minister of Higher Education and Training.

2. Background

The MQA and TETA were established in terms of the Skills Development Act No. 97 of 1998 (as amended) with the mandate to promote skills development for themining and minerals sector and transport sector respectively. The Minister of Higher Education and Training relicensed the SETAs for the five year period from1 April 2011 to 31 March 2016, to operate within the skills development framework as articulated in the National Skills Development Strategy (NSDS) III framework and other policies and strategies. The SETAs are public entitiesthat fall under Schedule 3A of the Public Finance Management Act (PFMA), No 1 of 1999 and they are funded through the 1 percent skills levy paid by employers to the South African Revenue Service (SARS).

3. Policy mandates

3.1 National Development Plan (NDP) Vision for 2030

The NDP sets out a vision for the country for the next 15 years through its Vision 2030. The NDP identifies skills development and education as a critical enabler for economic development. The Plan states that SETAs should play a more effective role in the production of skills that are required to meet the immediate needs of the employers. The Plan accepts that education, training and innovation are not a solution to common national problems but they are rather critical in building national capacity to solve problems. The Plan sets out the role of SETAs as facilitators of skills development in the following areas:

• Skills development for existing businesses;
• Unemployed people who wish to obtain employment in the sector and emphasis on internships; and
• Training should cover levels of the National Qualifications Framework (NQF) required by the sector.

3.2 Medium-Term Strategic Framework (MTSF) 2014 – 2019

The MTSF 2014-2019 is a five year strategic plan of government and itforms the first five-year implementation phase of the NDP. Therefore, this requires that the work of all national and provincial departments, municipalities and public entities should be aligned with the NDP vision and goals. The aim of the Framework is to ensure policy coherence, alignment and coordination across government plans as well as alignment with the budgeting process. The Framework states that there should be an improved interface between SETAs, workplaces and education and training institutions (Technical and Vocational Education and Training Colleges, universities and adult education and training institutions). The interface is to support greater opportunities for work-based training and experience, with 140 000 work-based learning opportunities planned for 2019. The Framework further targets increased partnerships between SETAs and employers for placement.

3.3National Skills Development Strategy (NSDS III)

The NSDS III acts as the overarching strategic guide for skills development and provides direction to sector skills planning and implementation in the SETAs, and the framework for the skills development levy resource utilisation by the SETAs and the National Skills Fund. The strategy also sets out the linkages with, and responsibilities of, other education and training stakeholders. It responds to pressing challenges that impact on the ability of the economy to expand and provide increased employment opportunities. Thekey driving force of the strategy is to improve the effectiveness and efficiency of the skills development systems and effective response to the needs of the labour market and social equity.

The NSDS III has eight goals for implementation by the SETAs which are:

• Establishing a credible institutional mechanism for skills planning;
• Increasing access to occupationally-directed programmes;
• Promoting the growth of a public FET college system that is responsive to sector, local, regional and national skills needs and priorities;
• Addressing the low-level of youth and adult language and numeracy skills to enable additional training;
• Encouraging better use of workplace-based skills development;
• Encouraging and supporting cooperatives, small enterprises, worker-initiated, non-governmental organisations (NGOs) and community training initiatives;
• Increasing public sector capacity for improved service delivery and supporting the building of a developmental state; and
• Building career and vocational guidance.

3.4 White Paper on Post-School Education and Training

The White Paper articulates a vision for an integrated system of post-school education and training, with all institutions playing their role as parts of a coherent but differentiated system. In terms of the White Paper, SETAs will continue facilitating development of skills for those in existing enterprises and skills pipeline in workplace. This means that SETAs will ensure that the skills requirements of their respective industries are understood and catered for by different providers as contemplated in the policy document. Given this important role of delivering services to the people, it is of critical importance for SETAs to be well capacitated and efficient to deliver on their mandates.

3.5 Human Resource Development Strategy for South Africa (HRD-SA) 2010 – 2030

The HRD Strategy for South Africa (2010 – 2030) is a call to action. Its primary purpose is to mobilise multi-stakeholder participation, and to encourage individuals and organisations to take on the challenge of improving the human resource stock of the nation. The document sets out collective commitments for sectors of the society in skills production. Since SETAs are public entities responsible for skills development, they should ascribe to the goals of the HRD Strategy which are: to urgently and substantively reduce the scourge of poverty and unemployment in South Africa; to promote justice and social cohesion through improved equity in the provision and outcomes of education and skills development programmes, and to substantively improve national economic growth and development through improved competitiveness of the South African economy.

4. Overview and assessment of the Strategic Plan 2015/16 – 2019/20 and Annual Performance Plan 2015/16 of MQA and TETA

4.1 Mining Qualifications Authority

4.1.1 Vision, mission and values

The vision of the MQA is to be a competent, health and safety oriented Mining and Minerals workforce. The mission is to ensure that the Mining and Minerals sector has sufficient competent people who will improve health and safety, employment equity and increase productivity. The values of the MQA are continuous learning; empowerment; professionalism; honesty and mutual respect and service excellence.

4.1.2 Strategic Objectives

The MQA has six strategic outcome oriented goals to guide its activities in the next five year period,namely:

Strategic Outcome Oriented Goal 1: Support transformation of the sector through skills development.

Strategic Outcome Oriented Goal 2: To ensure that the MMs has sufficient skills and competencies particularly in regards to historically disadvantaged South Africans (HDSAs) for sustainable employment.

Strategic Outcome Oriented Goal 3: Enhance knowledge management for skills development in the sector.

Strategic Outcome Oriented Goal 4: Facilitate and support the core sector programmes aligned to the qualifications framework.

Strategic Outcome Oriented Goal 5: Implement the monitoring, evaluation and review of the delivery capacity and quality of training and development in the sector.

Strategic Outcome Oriented Goal 6: To run an efficient, effective and transparent corporate governance system within the legislative framework.

4.1.3 Programmes

The six broad strategic oriented outcomes are operationalised in the six programmes.

a) Programme 1: Support transformation of the sector through skills development

The programme has four strategic objectivesnamely to:support lecturer development programmes entered and completed for higher education and training lecturers;support of artisan aides to access qualification; support rural development projects especially the Maths and Science; and support workers entered and completed skills programmes.

 

 

b) Programme 2: Support objective decision making for skills development through research in the sector

The programme has four strategic objectives namely to:build capacity of skills development facilitators and skills development committee members;conduct relevant research into skills development related issues in the MMs as per the annual research agenda;evaluate Workplace Skills Plans (WSPs) and Annual Training Reports (ATRs) for small levy medium and lager firms; andcollaborate with Higher Education Institutions (HEIs) regarding skills development research in the MMs.

c) Programme 3: Enhance knowledge management for skills development in the sector

The programme has one strategic objective which is the implementation of an integrated, fully-functional management information system. The target is to achieve full implementation of the management information system.

d) Programme 4: Facilitate and support core sector programmes aligned to the qualifications framework

The programme has 11 strategic objectives namely to:increase awareness of MMs related careers; support Adult Education and Training (AET) programmes and completed and Foundational Learning Competence (FLC);support workers entered and completed programmes; support universities student placement;develop and implement the relevant programmes and projects to improve the core skills;support artisans entered and completed including Recognition of Prior Learning (RPL);support unemployed entered and completed bursaries;place coaches within workplaces to support employers with on the job mentoring and coaching activities;support unemployed learnerships entered and completed;implement the relevant programmes and projects to improve the core of the MMs;promote the annual International Literacy week in the MMs;review and develop learning programmes for the MMs, and support rural development projects.

e) Programme 5: Implement the monitoring, evaluation and review of the delivery capacity and quality of training and development in the sector

The programme has one strategic objective which is to ensure the delivery of quality programmes in the MMs. The target for the 2015/16 is to have 145 accredited programmes / approved training providers are quality assured.

f) Programme 6: Run an efficient, effective and transparent corporate governance system within the legislative framework.

There is one strategic objective which is to ensure corporate governance with legal framework. The target is to achieve 100 per cent in 2015/16.

4.1.4 Overview of the 2015/16 budget

The total income of the MQA for 2015/16 is R956 million and of this R230 million is mandatory grants; R571 million is discretionary grants; R120 million is administration income and the skills development levy income is R921 million. The total expenditure for 2015/16 is R1.1 billion and of this R812 million is for discretionary grants and projects; R207 million is for mandatory grants and R123 million is for administration costs. The administration costs increased from R103 million in 2014/15 to R123 million in 2015/16. The increase is due to filling of vacancies in the regional offices and refurbishment of offices.There is a decline in spending on the discretionary grants from R887 million in 2014/15 to R812 million in 2015/16. This represents a decrease of R74 million. This is due to SETA licensing coming to an end by 31 March 2016. The accumulated surplus from the prior years would be used to supplement the MQA’s income for the 2015/16 and 2016/17. However, the accumulated surplus will be depleted by 2016/17 and this will pose a budgetary challenge to the entity in the outer years of the MTEF.

4.2 Transport Education and Training Authority

4.2.1 Vision, mission and values

The vision of TETA is to be at the heart of skills innovation in the transport sector. Its mission is to provide an innovative Quality Assurance and Skills Development (QASD) framework to the transport sector by exceeding the Service Level Agreement (SLA) and stakeholder requirements in a cost effective manner by motivated competent people. The values of TETA are trust, respect, responsibility, accountability, positive attitude, commitment and innovation.

4.2.1 Sector profile

TETA has 8 chambers or sub-sectors namely: Aerospace;Maritime; Rail;Road Freight; Road Transport; Taxi;Freight Handling, and Clearing and Forwarding. The taxi industry is the biggest sub-sector of TETA with 400 000 employees; followed by rail with 90 000 employees and road freight with 70 000.

 

4.2.2 Strategic objectives

TETA has five strategic outcome oriented goals to guide its activities in the next five year period, namely:

Strategic Goal 1: Establish a credible transport sector institutional mechanisms for skills planning, create and sustain research capacity on labour markets within TETA.

Strategic Goal 2: Increase access to occupationally directed programmes.

 Strategic Goal 3: Strengthening the quality assurance system.

Strategic Goal 4: A post-school strategy for youth for further access and work experience to improve employability.

Strategic Goal 5: Small Enterprise, Cooperatives, Non-Governmental Organisations (NGOs), Community Based Organisation (CBOs) and Small Medium Micro Enterprises (SMMEs) Initiatives Support and Sustainability.

4.2.3 Programmes

The five strategic goals are operationalised in the five programmes.

a) Programme 1: Skills planning and research

This programme has three strategic objectives namely:research strategy review and planning; industry research and consultations and collaborative research partnerships with universities and other research stakeholders to support research in the transport sector. The budget for this programme is R7.8 million.

b) Programme 2: Occupationally directed programmes and workplace training

This programme has five strategic objectives namely: transport sector companies are supported through Mandatory and Discretionary Grants to address industry; stakeholders capacitated on Mandatory & Discretionary Grants; increased learner access to occupationally directed programmes through TVET colleges, Higher Education Institutions (HEIs) and other providers; Sector Leadership and Managers development programs and sustainable partnerships with stakeholders. The budget for this programme is R347 million.

c) Programme 3: Strengthen the quality assurance system

This programme has four strategic objectives namely: approved Quality Council for Trades and Occupations (QCTO) learning materials and qualifications for transport sector; effective and efficient external moderation and evaluation process;to develop articulation and progression programmes for access to TVET colleges and HEIs; capacity building for Public TVET colleges which are responsive to sector skills needs and Foundational Learning Competency Training for TVET lecturers. The budget for this programme is R12 million.

d) Youth development and progression for further access and workplace training and experience

This programme has seven strategic objectives namely: uptake for learning programmes for Out-of School Youth that require education and training to address skills needs; youth access to TVET colleges and HEIs through articulation and progression or bridging programmes; work ready apprentices and graduates undergo workplace mentorship and coaching; employable youth put on workplace-based training; transport sector career opportunity booklets with labour market information distributed; exhibitions to provide career guidance and vocational information within the transport sector and career guidance experts and sector specialist coached career guides. The budget for this programme is R61 million.

e) Programme 5: Small Enterprise, Cooperatives, NGOs and SMME initiative support

This programme has one strategic objective which is support and development of small medium enterprises, NGOs, CBO, cooperatives and unions. The budget for this programme is R15 million.

4.3 Overview of the 2015/16 budget

The total budget for 2015/16 financial year is R643 million; R601 million is generated from skills development levies; R2.2 million is from interest and penalties and R40 million is from investment income. In terms of the expenditure for 2015/16; R120 million is allocated for mandatory grants; R427 million is for discretionary grants and R78 million is for administration costs. The strategic goal 2: Occupationally directed programmes is the core goal and takes up 78 per cent of the APP budget. The 2015/16 APP planned activities would be underfunded by R17.1 million due to the expenditure capping on spending by the National Treasury. The entity applied to the National Treasury through the Department of Higher Education and Training for the removal of the expenditure capping to be able to fund the planned activities.

 

4.4 Support to national strategic initiatives

The support to national strategic initiatives will be implemented through the following sub-sectors, namely:Rail for Strategic Infrastructure Projects (SIPs); Maritime for the Operation Phakisa; Aerospace for the Aviation Industry Transformation Letsema; Taxi for the Express Parcel Delivery Service and other sub-sectors. 

5. Observations

5.1 Mining Qualifications Authority

• The Committee was concerned with the historical challenge of under-achievement of targets by the MQA and welcomed the action plan developed by the board to address this challenge.
• It was noted that the mining sector is key in responding to the triple challenges facing South Africa namely; poverty, unemployment and inequality and the programmes of MQA should respond to these challenges.
• The MQA was cautioned on setting targets that are not aligned with its budget which contributed to the budget deficit in the Medium Term Expenditure Framework (MTEF) period. The Committee was also concerned with the increase in administration costs from R103 million in 2014/15 to R123 million in 2015/16 and urged MQA to move from consumption to investment.
• The Committee was concerned with the transformation in the mining and minerals sector particularly on the number of women in key strategic positions in this sector and also in the artisans and lecturer training programmes of the MQA.
• The Committee noted a concern raised by the MQA on the high costs of artisan development which increased from R90 000 to R130 000 for a three year training as approved by the National Artisan Moderation Body (NAMB). It was also noted that employers complained that the amount is inadequate to train an artisan. There was a proposal to increase the amount to R150 000. However, the proposal was noted as a concern since there is a huge demand for artisans in the country. It was noted that the increase in the training costs might impact on the ability of the country to achieve the National Development Plan (NDP) target of producing 30 000 artisans per annum by 2030.
• The MQA was commended for its maths and science programme that is targeted at rural schools to improve the performance of learners in these subjects.

 

5.2 Transport Education and Training Authority

• It was noted that South Africa has challenge of high number of road fatalities compared with the rest of the world and human factors play a significant role. The Committee requested TETA to have a training programme with a particular focus for taxi and truck drivers to improve their road safety skills.
• The Committee raised a concern with regard to transformation in the aviation industry particularly on the participation of Africans and women in the aviation skills development programmes. It was noted that the training programmes targeting Africans and women pilots should be expedited.
• The Committee welcomed the circular from the National Treasury through the Department to TETA for the removal of the expenditure capping as the 2015/16 Annual Performance Plan (APP) would have been underfunded by R17 million.Therefore,TETA will no longer have a budget shortfall to implement its 2015/16 APP.
• TETA was commended for the Express Parcel Delivery programme for the taxi industry which is based upon local and international best practices. However, concerns were raised with the money spent on the International Leadership & Development programme which benefitted very few candidates.
• The Committee was concerned that there were only eight (8) Technical and Vocational Education and Training (TVET) Colleges out of the 50 which offered transport related National Certificate Vocational NC(V) programmes owing to inadequate capacity and support in other colleges to offer these programmes.
• TETA was commended for the Adopt-a-School national support programme which targets disadvantaged rural schools across the nine (9) provinces.
• The Committee noted its concern with the provincial footprint of TETA in other provinces besides Limpopo and Gauteng sinceit is a lead SETA in Limpopo as per the Department of Higher Education and Training’s request. TETA was advised to increase its provincial presence so that more people, especially those in rural areas, can have access to its training programmes.

6. Summary

The Committee expressed its gratitude for the detailed Strategic Plans2015/16 – 2019/20 and APPs 2015/16 of the MQA and TETA which also met the National Treasury specific, measurable, achievable, relevant and time-bound (SMART) principles as audited by the Auditor-General South Africa (AGSA). The SETAs were reminded that the government is operating in a radical socio-economic transformation phase for the next five years and the implementation of theirprogrammes should be aligned with this radical approach.

The interventions by both SETAs to assist learners in rural schools to improve their performance in maths and science and other subjects were welcomed by the Committee. The Committee emphasised the importance of cutting expenditure on administration costs and placing more emphasis on key delivery programmes in line with government’s fiscal policyframework which seeks to promote a sustainable and equitable approach to managing revenue and expenditure.

7. Recommendations

The Committee recommends that the Minister of Higher Education and Training should consider the following:

• The Department should enhance its monitoring and evaluation function over SETAs to assist those that have challenges in meeting their targets;
• TETA should allocate funding for the training and development of taxi and truck drivers to contribute in the improvementof road safety;
• The MQA should develop realistic targets that are in line with its budget to minimise its funding shortfall in the outer years of the Medium Term Expenditure Framework (MTEF) period given that the surplus would be depleted;
• TVET Colleges should be capacitated to offer more NC(V) programmes that are aligned with SETAs;
• TETA should collaborate with Universities of Technology (UoT) to develop a new generation of qualifications for the transport sector; and
• TETA should expedite the training and development of Africans and women in the aerospace sub-sector to improve transformation in the aviation industry.

Report to be considered.