ATC220518: Report of the Select Committee on Transport, Public Service and Administration, Public Works and Infrastructure on Budget Vote 13:
REPORT OF THE SELECT COMMITTEE ON TRANSPORT, PUBLIC SERVICE AND ADMINISTRATION, PUBLIC WORKS AND INFRASTRUCTURE ON BUDGET VOTE 13: PUBLIC WORKS AND INFRASTRUCTURE, AND ON THE STRATEGIC PLAN AND ANNUAL PERFORMANCE PLAN 2022-23 OF THE DEPARTMENT OF PUBLIC WORKS INFRASTRUCTURE, DATED 18 MAY 2022
The Select Committee on Transport, Public Service and Administration, Public Works and Infrastructure, having considered the revised Strategic Plan, Annual Performance Plan and Budget (Vote 13: Public Works and Infrastructure) of the Department of Public Works and Infrastructure, reports as follows:
The Select Committee on Transport, Public Service and Administration, Public Works and Infrastructure (the Committee) considered the 2022/23 budget of the Public Works and Infrastructure (“the department”) on 20 April 2022. In preparation for this report, the Committee was briefed on the revised Strategic Plan, 2022/23 Annual Performance Plan (APP) and 2022/23 Budget Allocations of Public Works and Infrastructure and Property Management Trading Entity (PMTE).
2. BUDGET FOR 2022/23
The department receives a voted allocation of R8.55 billion for 2022/23 with which to accomplish the priorities listed above. This represents an increase of 2.3 per cent in nominal terms, and a decline of 2.1 per cent in real terms (calculating the impact of inflation) from the 2021/22 adjusted appropriation of R8.35 billion. The budget represents approximately 0.1 per cent of the national appropriation by vote, excluding direct charges.
In terms of economic classification, the budget includes Transfers and Subsidies totalling 87.1 per cent of the budget, with a total monetary value of R7.45 billion (compared to R7.36 billion in the adjustment period). This constitutes a 1.2 per cent nominal increase, and a decline of 3.2 per cent in real terms since the growth in the allocation is below the projected average inflation rate of 4.5 per cent for 2022/23.
The amount of R1.64 billion of the Transfers and Subsidies is in the form of conditional grants to provinces and municipalities, while a total of R4.63 billion is allocated to departmental agencies and accounts. For 2022/23, the Current Payments amount to 12.6 per cent (i.e. R1.08 billion) and Capital Payments to 0.2 per cent of the budget (i.e. R20.1 million). Compensation of Employees decreases by R1.5 million (from R582.7 million in the 2021/22 adjusted period) to R581.2 million in 2022/23.
The Committee recommends that the Minister should ensure that the Department:
- Reports to the Committee in September 2022 on its review of the APP and performance targets.
- Reports to the Committee by October 2022 on progress with the establishment of the Ethics & Compliance, Infrastructure and Consequence Management Unit to guide and enforce expected standards of behaviour of all personnel of the DPWI head office and the PMTE in regional offices throughout the country.
- Reports on progress with the Public Works Bill by November 2022 to ensure that the DPWI mandate is strengthened and the PMTE can enforce compliance so that it can timeously collect service fees, rental and project management fees from client departments and entities to whom it sells project management, maintenance, accommodation and property management services.
- Reports on a quarterly basis on progress with the coordination of large infrastructure projects through the Infrastructure South Africa (ISA).
- Ensures that the ISA reports to the Committee by August 2022 on the newly designed Refurbishment Operate and Transfer (ROT) programme to be rolled out in a public-private partnership arrangement to deal with the backlogs due to government property and infrastructure not being properly maintained.
- Provides an update report of progress on the review of the national infrastructure management strategy in November 2022.
- Provides feedback regarding the determination of the structure Infrastructure South Africa (ISA) including its organizational design and funding model.
The Committee recommends that the Council approve the budget of the Department of Public Works and Infrastructure. [The DA reserved its position on the report and abstained.]
Report to be considered.