ATC230614:Report of the Select Committee on Education and Technology, Sports, Arts and Culture on Budget Vote 37: Sport, Arts and Culture, dated 14 June 2023

NCOP Education and Technology, Sports, Arts and Culture

Report of the Select Committee on Education and Technology, Sports, Arts and Culture on Budget Vote 37: Sport, Arts and Culture, dated 14 June 2023

 

The Select Committee on Education and Technology, Sports, Arts and Culture, having considered Budget Vote 37: Sport, Arts and Culture, reports as follows:

 

  1. INTRODUCTION

The Department of Sport, Arts, and Culture (the Department) derives its mandate from the United Nations Sustainable Development Goals, National Development Plan, and the Medium-Term Strategic Framework, to shape its plans such as the Strategic Plan and the Annual Performance Plans.

 

The Select Committee on Education and Technology, Sports, Arts and Culture (the Committee) considered the Budget and the 2023/24 Annual Performance Plan (APP) of the Department of Sport, Arts, and Culture (the Department) on Wednesday, 31 May 2023. The budget review briefing served to acquaint the 6th Parliament Select Committee with the mandate, programmes and priorities of the Department.

 

This report gives a summary of the presentation made by the Department to the Committee, focusing mainly on the 2023/24 Annual Performance Plan and the 2020 Medium Term Expenditure Framework (MTEF) allocations. The report also provides the Committee’s key deliberations and recommendations relating to Vote 37.

 

1.1.Purpose of the Budget Vote 37

The purpose of the Vote is to provide an enabling environment for the sport, arts and culture sector by developing, transforming, preserving, protecting and promoting sport, arts and culture at all levels of participation to foster an active, winning, creative and socially cohesive nation.

 

  1. METHOD

The Committee considered the 2020 – 25 Strategic Plans and 2023/24 APPs and budgets of the Department. This was considered against the background of key Government policy documents, including, amongst others, the National Development Plan (NDP), the 2019 – 2024 Medium Term Strategic Framework (MTSF), and the 2023 State of the Nation Address (SONA). The Committee also engaged the Office of Auditor-General of South Africa (AGSA) who provided a briefing on the status of records of review, material irregularities and a review of the DSAC APP. Committee meetings continue to be hosted virtually because of the impact of the 2022 fire.

 

  1. STRATEGIC OVERVIEW OF THE DEPARTMENT OF SPORT, ARTS AND CULTURE

The DSAC APP outlines how the Department’s strategic outcomes align with the policy priorities of the National Development Plan: Vision 2030 (NDP), the Economic Reconstruction and Recovery Plan (ERRP) and the State of the Nation Address (SONA) over the Medium Term Strategic Framework (MTSF).

 

For the 2023/2024 financial year, the Department has committed to focus on core projects which align with Government priorities. In its effort to translate the broad policy statements into implementable programmes, the Department’s outcomes will be realised through the implementation of various projects and interventions. These projects focus on the economic contribution of the sector; the DSAC’s lead role in building a diverse, socially cohesive society; transforming the sector through capacity building; providing integrated and accessible Sport, Arts and Culture (SAC) infrastructure and information; and the ongoing strive for compliant and responsive governance.

 

3.1.DSAC Outcomes

  • DSAC Outcome: Increased Market Share of and Job Opportunities Created in Sport, Cultural and Creative Industries

The prioritisation of the Cultural and Creative Industries (CCIs) sector as one of the seven focus areas in the country’s revised industrial policy is encouraging. Especially as the creative economy accounts for 6% of all employment in South Africa (an estimated 1 million jobs). The Mzansi Golden Economy (MGE) strategy seeks to create economic and job opportunities in the arts, culture, and heritage sector. This is achieved by supporting programmes designed to develop audiences, stimulate demand, increase market access, and develop skills. In 2023/24, the Department aims to create 12 000 job opportunities across the workstreams and cultural development programmes of the Mzansi golden economy strategy and 40 000 job opportunities through the presidential employment initiative.

 

  • DSAC Outcome: A Diverse, Socially Cohesive Society with a Common National Identity

The Department with its various partners and stakeholders are reviewing the Social Cohesion Strategy. This is to refocus efforts and improve the response to what the NDP calls for. To this end, is worthy to note that the Department is fiercely advocating for all relevant parties to sign the Social Cohesion and Nation Building Compact. While all sectors have been mobilised, the compact has as yet not been signed and requires serious intervention at a national government level.

 

  • DSAC Outcome: Transformed, Capable and Professional Sport, Arts and Culture Sector

In 2023/24, the Department will continue with its efforts to transform the sector through capacity building. This is done through, among other interventions, the provision of bursaries in heritage and language practice; support to national sporting federations; incubators and other capacity building initiatives. It is encouraging to note that the face of the creative economy is changing with younger workers being more representative of the demographics of the country. Given the Creative Industry’s changing skills requirements as the sector pivots to digital platforms in the Fourth Industrial Revolution (4IR), education and skills development must remain a priority.

 

  • DSAC Outcome: Integrated and Accessible SAC Infrastructure and Information

Infrastructure development is critical to attaining South Africa’s long-term economic and social goals. The construction of infrastructure generates employment and broad-based black economic empowerment opportunities, further contributing to the goals of the National Development Plan (NDP). The ERRP highlights infrastructure investment as one of the key initiatives that are intended to ensure employment opportunities, skills transfer and development, and much-needed economic growth. With the ongoing challenges in the implementation of certain infrastructure projects, DSAC has identified, as a priority, the resuscitation of the internal Infrastructure Committee to monitor projects and finalise implementation of the norms and standards framework. This is however dependent on the availability of funding.

 

  • DSAC Outcome: Compliant and Responsive Governance

Towards achieving compliant and responsive governance the Department capacitates human resources through the internship programme, whilst service delivery is enhanced by timeously paying invoices; by modernising manual Information Technology (IT) services and by holding at least nine (9) focused engagements (izimbizo) with small groups of people on an annual basis.

 

The Department has devised a range of high impact projects to respond to the outcomes and focus areas. These include, among others, the amalgamation of entities; the provision of Government support to anti-doping agencies; support high-performance athletes to achieve success at international events; and support to practitioners through the SAC academies, centres of excellence and incubators.

 

3.2.Legislative and Policy Environment 2023/24

Over the MTSF, the Department’s policy and legislative programme is be guided by two White Papers. The White Paper for Arts and Culture needs to be implemented so that it can contribute to the transformation of the sector. The White Paper for Sport and Recreation will co-exist with that of Arts and Culture. The 2023/24 APP notes that the Department is in the process of developing and/or reviewing legislation, policies and framework documents. The following, amongst others, will be focused on in the 2023/24 financial year:

 

  1. Legislation

The Department will focus on tabling three bills, namely: the National Sport and Recreation Amendment Bill, 2021; the South African Geographical Names Council Amendment Bill, 2021 and the Heraldry Bill, 2023.

 

  1. Plans and Policies
  • The Department will review the National Sport and Recreation Plan that was approved by Cabinet in 2012.
  • The Athlete Support Policy, developed in 2016 and updated in 2022/23 will be implemented in 2023/24 to assist, through direct funding, emerging athletes who can compete for senior provincial and national sports teams.
  • The review of the South African Sport Academies Strategic Framework and Policy Guideline will be completed.
  • The Safeguarding in Sport Policy will be completed.
  • The Prioritisation of Sport and Recreation Bodies Policy was drafted and circulated to National Federations for comment and inputs and will be completed by March 2024.
  • Recognition of Excellence Policy which seeks to define and guide categories, processes, procedures, and incentives for the recognition and honouring of sport persons planned for completion in early 2023 for the implementation in the current financial year.

The mandate of the Department is wide and inclusive of interventions that are central to the holistic advancement of the nation. However, the budget allocation remains virtually unchanged as the following section of the report shows.

 

  1. SUMMARY OF BUDGET EXPENDITURE (2023/24)

The total budget allocation for the 2023/24 financial year is R6.29 billion. The Department organises its expenditure under four programmes, these are:

  • Programme 1: Administration (R453.2 million);
  • Programme 2: Recreation Development and Sport Promotion (R1.46 billion);
  • Programme 3: Arts and Culture Promotion and Development (R1.75 billion); and
  • Programme 4: Heritage Promotion and Preservation (R2.63 billion).

 

The table below reflects the budget allocation for 2023/24 and over the medium term.

Table 1: Overall Budget Allocation 2022/23 – 2025/26

R million

2022/23

2023/24

2024/25

2025/26

Total

Total

Total

Total

MTEF allocation

 

1: Administration

Purpose: Provide strategic leadership, management and support services to the Department.

457,9

454,7

427,0

490,3

2: Recreation Development and Sport Promotion

Purpose: Support the provision of mass participation opportunities, the development of elite athletes, and the regulation and maintenance of facilities.

1 427,0

1 448,9

1 514,4

1 586,5

3: Arts and Culture Promotion and Development

Purpose: Promote and develop arts, culture and languages, and implement the national social cohesion strategy.

1 752,1

1 791,2

1 391,4

1 453,9

4: Heritage Promotion and Preservation

Purpose: Preserve and promote South African heritage, including archival and heraldic heritage. Oversee and transfer funds to libraries.

2 668,6

2 662,9

2 782,3

2 905,1

Total expenditure estimates

6 305,5

6 357,7

6 160,1

6 435,8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: National Treasury ENE (2023)

 

The following points are for noting when considering the budget over the medium term:

  • Total expenditure is expected to increase at an average annual rate of 0.7%, from R6.30 billion in 2022/23 to R6.43 billion in 2025/26. Transfers and subsidies account for an estimated 80.4% (R15.22 billion) of the Department’s spending over the medium term.
  • The Department’s total budget over the medium term is R18.95 billion which includes a baseline increase of R26.40 million for salary adjustments. Annual budget allocations fluctuate across the MTEF with the allocation projected to decrease to R6.12 billion in 2024/25 and increase thereafter to R6.44 billion in 2025/26. When the projected inflation rates are (2023/24: 4.9%; 2024/25: 4.8%; and 2025/26: 4.7%) taken into consideration, the cumulative growth rate between 2022/23 and 2025/26 is -3.9%.

 

For the 2023/24 financial year:

  • The total budget allocation is R6.35 billion.
  • The total national appropriation by vote is R1.08 trillion, and thus the Department’s allocation is approximately 0.8% of this total.
  • Transfers and Subsidies decreases by R19.8 million, from R5.09 billion in 2022/23 to R5.07 billion, and represents 79.8%, of the budget allocation.
  • Payments for Capital Assets increases by R127.3 million from R158.7 million in 2022/23 to R286.0 million (or 4.5%) of the total budget allocation.
  • Current Payments, comprised of Compensation of Employees and Good and Services, decreases by R55.3 million, from R1.05 billion in 2022/23 to R999.0 million (or 15.7%) of the budget allocation.
    • Compensation of Employees remains almost unchanged and decreases slightly from R385.8 million in 2022/23 to R385.3 million.
    • Good and Services decreases by R54.8 million, from R668.5 million in 2022/23 to R613.7 million.

 

The line items for the economic classification Goods and Services are tabled below:

Table 2: Good and Services: sub-categories

Economic Classification

Budget

Nominal Rand change

Real Rand change

Nominal per cent change

Real per cent change

R million

2022/23

2023/24

2022/23 – 2023/24

2022/23 – 2023/24

Goods and Services,

of which:

668,5

613,7

-54,8

-83,5

-8,2%

-12,5%

Advertising

28,6

28,5

-0,1

-1,4

-0,35%

-5,0%

Consultants: Business and advisory services

67,8

41,7

-26,1

-28,0

-38,5%

-41,4%

Contractors

109,4

170,9

61,5

53,5

56,2%

48,9%

Operating leases

110,0

110,5

0,5

-4,7

0,4%

-4,2%

Property payments

37,5

34,8

-2,7

-4,3

-7,2%

-11,5%

Travel and subsistence

80,0

79,2

-0,8

-4,5

-1,0%

-12,5%

Source: National Treasury (2023), own calculations

 

Taking the total budget allocation into consideration, Programme 4: Heritage Promotion and Preservation receives the largest allocation at R2.66 billion, followed by Programme 3: Arts and Culture Promotion and Development with R1.79 billion. The lowest allocation is directed towards Programme 1: Administration, which receives R454.7 million in the 2023/24 financial year. Allocations for Programmes 1 and 4 are slightly lower compared to 2022/23, while for Programmes 2 and 3 allocations are slightly higher. When the projected inflation rate is applied, budget allocations across all programmes are lower than the 2022/23 allocations.

 

The report now considers budgetary allocations per programme.

 

4.1.Budgetary allocations per programme

 

Programme 1: Administration

Purpose: Provide strategic leadership, management and support services to the Department.

 

This programme plays an important role in giving effect to first priority of the NDP, that is, to build a capable, ethical and developmental state. This priority is also expressed in the MTSF for the five-year term 2019-2024, as a crucial mode that is required to achieve Vision 2030. The outputs delivered in Programme 1 contribute predominately to DSAC Outcome 3: Transformed, capable and professional sport, arts and culture sector and Outcome 5: Compliant and responsive governance.

 

Table 3: Programme 1 Budget Allocation 2022/23 – 2023/24.

Sub-programme

Budget

Nominal Rand change

Real Rand change

Nominal per cent change

Real per cent change

R million

2022/23

2023/24

2022/23 – 2023/24

2022/23 – 2023/24

1: Ministry

4.6

4.7

0.1

-0.1

2.2%

-2.6%

2: Management

73.0

69.7

-3.3

-6.6

-4.5%

-9.0%

3: Strategic Management and Planning

22.1

20.1

-2.0

-2.9

-9.1%

-13.3%

4: Corporate Services

163.7

169.5

5.8

-2.1

3.5%

-1.3%

5: Office of the Chief Financial Officer

69.1

64.5

-4.6

-7.6

-6.7%

-11.0%

6: Office Accommodation

125.4

126.1

0.7

-5.2

0.6%

-4.1%

TOTAL

457.9

454.7

-3.2

-24.4

-0.7%

-5.3%

Source: National Treasury ENE (2023).

 

For the 2023/24 financial year, the budget allocation for this programme is R454.7 million. Compared to the previous financial year, this represents a nominal decrease of R3.2 million, or 0.7%. When considering the projected inflation rate of 4.9%, the allocation has decreased by R24.4 million, or 5.3%. The budget allocated to Programme 1 shows a cumulative growth rate of 2.3% over the MTEF, but decreases by 2.4% when the allocations are adjusted for the projected inflation rates over the medium term. Should inflation rates remain unchanged, this indicates that the Department will have less buying power over the medium term.

 

Programme 2: Recreation Development and Sport Promotion

Purpose: Support the provision of mass participation opportunities, the development of elite athletes, and the regulation and maintenance of facilities.

 

The outputs delivered in Programme 2 contribute predominately to DSAC Outcome 2: A diverse, socially cohesive society with a common national identity; Outcome 3: Transformed, capable and professional sport, arts and culture sector; and Outcome 4: Integrated and accessible SAC infrastructure and information.

 

Some the objectives of this programme will ensure:

  • financial and non-financial support is provided to 60 sport and recreation bodies to improve service delivery over the medium term;
  • transformation within the sport and recreation sector by helping sport federations reach their transformation targets by March 2024;
  • assistance is provided to 50 municipalities over the medium term to comply with facility norms and standards by providing technical and/or management support during the construction phase of sport and recreation facilities;
  • school sport is supported at district and national level;
  • increased opportunities for mass participation in sport and recreation in all provinces by providing management and financial support on an ongoing basis; and
  • the construction, development, maintenance, and upgrading of sport, heritage and library infrastructure.

 

Selected performance indicators for the 2023/24 financial year includes:

  • 295 000 people actively participating in organised sport and active recreation events;
  • 2 500 schools, hubs and clubs provided with equipment and/or attire as per established norms and standards;
  • 3 700 athletes supported by sports academies; and
  • 80 athletes supported through the scientific support programme.

 

Table 4: Programme 2 Budget Allocation 2022/23 – 2023/24.

Sub-programme

Budget

Nominal Rand change

Real Rand change

Nominal per cent change

Real per cent change

R million

2022/23

2023/24

2022/23 – 2023/24

2022/23 – 2023/24

1: Wining Nation

279.2

261.5

-17.7

-29.9

-6.3%

-10.7%

2: Active Nation

728.2

731.4

3.2

-31.0

0.4%

-4.2%

3: Infrastructure Support

419.5

456.0

36.5

15.2

8.7%

3.6%

TOTAL

1 427.0

1 448.9

21.9

-45.8

1.5%

-3.2%

Source: National Treasury ENE (2023)

 

When compared to the 2022/23 financial year, this programme’s budget allocation has increased by R21.9 million or 1.5% in nominal terms. Over the medium term, the estimated cumulative growth rate for Programme 2 is 3.6% in nominal terms, but in fact decreases by 1.1% when considering the impact of inflation.

 

Sub-programme 2: Active Nation receives the highest portion of the budget, i.e. R731.4 million (or 50.5%), with sub-programme 1: Winning Nation receiving the smallest allocation of R261.5 million (or 18.0%). The highest increase in allocation is seen in sub-programme 3: Infrastructure Support, with an increase from R419.5 million in 2022/23 to R456.0 million in 2023/24. This represents a nominal increase of R36.5 million (or 8.7%) and a real increase R15.2 million (or 3.6%). Sub-programme 1: Winning Nation sees a nominal budget allocation reduction of R17.7 million (or 6.3%), with a real decrease of R29.9 million (or -10.7%).

 

About R9.0 million of the allocation to the mass participation and sport development grant in 2023/24 in the Active Nation sub-programme is earmarked for supporting South Africa’s hosting of the 2023 Netball World Cup and to mobilise more than 6 000 people to participate in public viewing programmes to support the South African team. The Department invested R136.3 million between 2018/19 and 2023/24 to enable the hosting of the tournament.

 

Programme 3: Arts and Culture Promotion and Development

Purpose: Promote and develop arts culture and languages and implement the national social cohesion strategy.

 

The outputs delivered in Programme 3 contribute to all five departmental outcomes. These outputs will ensure:

  • the promotion and development of official languages, and the support to efforts to increase qualified language practitioners through language bursaries;
  • the development of the Cultural and Creative Industries (CCIs) through supporting practitioners and their enterprises in various cultural and creative sectors to gain access to both local and international markets;
  • capacity-building projects are financially supported to enhance the ability of practitioners and enterprises to participate effectively in various stages of the value chain of their sector;
  • provincial community arts development programmes have implemented that position and organise, community arts development to align with the overarching Government objectives of access and participation in the arts by South Africans; and
  • the coordination of international engagements on the continent and globally and through its international relations work, the Programme further contributes to the Government priority on ‘Better Africa and World’;
  • the promotion and support of programmes and partnership that foster nation-building and social cohesion, including Gender-Based Violence (GBV) and anti-femicide programmes;
  • the increase in support to the creative industry, including placement of artists in schools to promote and support arts education through the MGE Strategy and the implementation of the PESP.

 

Selected performance indicators for the 2023/24 financial year include:

  • the implementation of 20 community conversations or dialogues to foster social interaction;
  • place 340 artists in schools;
  • award 250 bursaries for the development of qualified language practitioners; and
  • support 90 projects in the creative industry through the MGE programme.

 

Table 5: Programme 3 Budget Allocation 2022/23 – 2023/24.

Sub-programme

Budget

Nominal Rand change

Real Rand change

Nominal per cent change

Real per cent change

R million

2022/23

2023/24

2022/23 – 2023/24

2022/23 – 2023/24

1: National Language Services

55.7

61.8

6.1

3.2

10.9%

5.8%

2: Pan South African Language Board

123.1

122.9

-0.2

-5.9

-0.2%

-4.8%

3: Cultural and Creative Industries Development

160.9

130.0

-30.9

-37.0

-19.2%

-23.0%

4: International Cooperation

43.0

41.6

-1.4

-3.3

-3.3%

-7.8%

5: Social Cohesion and Nation Building

69.5

68.4

-1.1

-4.3

-1.6%

-6.2%

6: Mzansi Golden Economy

694.3

744.8

50.5

15.7

7.3%

2.3%

7: Performing Arts Institutions

318.6

332.9

14.3

-1.3

4.5%

-0.4%

8: National Film and Video Foundation

155.9

156.8

0.9

-6.4

0.6%

-4.1%

9: National Arts Council

131.0

131.9

0.9

-5.3

0.7%

-4.0%

TOTAL

1 752.1

1 791.2

39.1

-44.6

2.2%

-2.5%

Source: National Treasury ENE (2023).

 

The budget allocation for this Programme is R1.79 billion for the 2023/24 financial year, which is a nominal increase of R39.1 million from 2022/23. Over the medium term, the estimated allocation will decrease by 6.0%, but when considering the projected inflation rates, the real decrease is 10.3%.

 

The highest allocation within Programme 3 is to sub-programme 6: Mzansi Golden Economy (MGE) which receives R744.8 million (or 41.6%) of the total budget for the programme. This is a nominal increase of R50.5 million from the R694.3 million allocated in the last financial year. This sub-programme also shows the highest percentage change in allocation, i.e. 1.9%. The lowest allocation in the programme is directed towards sub-programme 4: International Cooperation which receives R41.6 million (or 2.3%) of the programme budget.

 

The PESP was launched in October 2020 to mitigate the economic impact of the COVIDÔÇÉ19 pandemic across all sectors. The initiative’s reach into the creative industry is realised through the creative industries stimulus, which is allocated R462 million in 2023/24 to create a targeted 40 000 jobs.

 

Programme 4: Heritage Promotion and Preservation

Purpose: Preserve and promote South African heritage, including archival and heraldic heritage. Oversee and transfer funds to libraries.

 

The outputs delivered in Programme 4 contribute predominately to DSAC Outcome 2: A diverse, socially cohesive society with a common national identity; Outcome 3: Transformed, capable and professional sport, arts and culture sector; and Outcome 4: Integrated and accessible SAC infrastructure and information.

 

Through its sub-programmes, this Programme will:

  • support and implement a range of projects including awarding heritage bursaries; books documenting Living Human Treasures; development of heritage policies, as well as the promotion of national identity utilising the flag at national days, major cultural and sporting events in schools, the Monument Flag Project and “I am the Flag” Campaign;
  • operationalises heritage legacy projects; conceptualises and installs statues, monuments and memorials and develops the Resistance and Liberation Heritage Route as well as the implementation of alternative forms of memorialisation such as repatriation of human remains and objects;
  • financially support newly built and/or modular libraries; and
  • transform and standardise of geographical names.

 

Selected performance indicators for the 2023/24 financial year include:

  • financially support 32 libraries; and
  • award 45 students with heritage bursaries.

 

Table 6: Programme 4 Budget Allocation 2022/23 – 2023/24.

Sub-programme

Budget

Nominal Rand change

Real Rand change

Nominal per cent change

Real per cent change

R million

2022/23

2023/24

2022/23 – 2023/24

2022/23 – 2023/24

1: Heritage Promotion

66.1

54.1

-12.0

-14.5

-18.1%

-22.0%

2: National Archive Services

80.6

64.4

-16.2

-19.2

-20.1%

-23.8%

3: Heritage Institutions

632.2

649.8

17.6

-12.8

2.8%

-2.0%

4: National Library Services

146.6

153.6

7.0

-0.2

4.8%

-0.1%

5: Public Library Services

1 601.4

1 599.5

-1.9

-76.6

-0.1%

-4.8%

6: South African Heritage Resources Agency

62.8

62.2

-0.6

-3.5

-1.0%

-5.6%

7: South African Geographical Names Council

5.3

5.3

0.0

-0.2

0.0%

-4.7%

8: National Heritage Council

73.6

74.0

0.4

-3.1

0.5%

-4.1%

TOTAL

2 668.6

2 662.9

-5.7

-130.1

-0.2%

-4.9%

Source: National Treasury ENE (2023).

 

For the 2023/24 financial year, Programme 4 receives the bulk of the departmental budget, R2.66 billion or 41.9%. The total programme budget remains virtually unchanged, with a slight nominal decrease of R5.7 million, or 0.2%, compared to the previous financial year. Adjusted for inflation, the programme sees a real decrease of R130.1 million or 4.9%.

 

The highest increase in allocation is seen in sub-programme 3: Heritage Institutions. This sub-programme sees a nominal increase from R632.2 million in 2022/23 to R649.8 million in 2023/24, representing a nominal increase of R17.6 million, or 2.8%. Sub-programme 2: National Archives Services sees the biggest decrease in budget allocation in the programme. The allocation for this sub-programme decreases from R80.6 million in 2022/23 to R64.4 million in 2023/24. This is a nominal decrease of R16.2 million, or 20.1%. Adjusting this to the projected inflation rate results in a real decrease of R19.2 million, or 23.8%. A similar downward adjustment of budget allocation is seen in sub-programme 1: Heritage Promotion. The allocation for this sub-programme decreases from R66.1 million in 2022/23 to R54.1 million in 2023/24, representing a nominal decrease of R12.0 million, or 18.1%. In real terms, the decrease from the last financial year is R14.5 million, or 22.0%.

 

It should be noted that the Department has reprioritised an additional R44.8 million over the medium term to seven museums, including Ditsong Museums of South Africa, to address operational funding shortfalls arising from the devolution of municipal charges; and R8 million in 2023/24 to Freedom Park for the operationalisation of the Liliesleaf Farm Museum. These funds are reprioritised from the devolution of the municipal services function from the department to entities.

 

Of the 2023/24 allocation for this programme, R2.55 billion, or 95.7%, is classified as Transfers and Subsidies. Through this programme, the Department funds a significant number of entities including, but not limited to, national museums, the National Heritage Council (NHC), SAHRA, and public library services. The latter (sub-programme 5 in the budget structure), transfers funds to Provincial Departments for conditional allocations towards community library services for constructing and upgrading libraries, hiring personnel and purchasing library materials, i.e. the Community Library Service Grant (CLSG). The budget allocation to this sub-programme is R1.599 billion, or 60.1% of the total programme budget.

 

The main aim of the CLSG is to transform urban and rural library infrastructure and services through targeting previously disadvantaged communities. In respect of the CLSG, this grant is allocated to the relevant provincial department and administered by that department or through a service-level agreement with municipalities. In collaboration with provincial Departments of Basic Education (DBE), the grant also funds libraries that serve both schools and the general public. Funds from this grant may also be used to enable the shift of the libraries function between provinces and municipalities. This Grant primarily contributes to Government Priority 6: Social cohesion and safe communities. The grant is allocated R4.9 billion over the next three years.

 

The Department plans to finance 32 newly built and/or modular libraries by the end of the 2023/24 financial year. A budget of R1.33 billion (current) and R239.7 million (capital) is being directed towards provincial revenue funds for the implementation of this project. The outputs, as outlined in the Division of Revenue Bill [B2 – 2023] for the CLSG for the 2023/24 financial year includes, among others:

  • 27 new library structures completed;
  • five new dual-purpose library structures completed;
  • 310 000 library materials purchased;
  • 11 upgraded library structures completed;
  • 2 500 existing contract library staff maintained in all provinces; and
  • 33 new staff appointed at public libraries to support the shifting of the function to provinces.

 

  1. COMMITTEE OBSERVATIONS

 

5.1.Observations in relation to the Department of Sport, Arts and Culture

 

Having considered and examined the Departmental 2020 – 2025 Strategic Plan and 2023/24 Annual Performance Plan with associated budgets, the Committee made the following observations:

  • There was a need to digitise all archival material.
  • The Sports Ambassador programme currently has 21 sports ambassadors, members enquired on the gender, sport discipline and provinces of these ambassadors, as well as what school sports structures are being set up at a community level with the help of these sports ambassadors.
  • The committee referred to the social cohesion programme that facilitates community dialogue. DSAC states in the presentation that they intend to teach capacity building and leave communities with tools to sustain dialogue so that there is continued impact after DSAC has left. They were requested to elaborate on how they will facilitate this development of capacity for dialogue in communities.
  • The committee noted the National Youth Service programme which aims to increase civic participation of youth and for gaining employment skills. The committee wanted to know the provincial footprint of this programme and available job opportunities for the youth participating in this programme.
  • The committee referred to the project for building more libraries and extending current libraries. They enquired whether the Department would ensure connectivity in these libraries for students and other patrons, especially in rural areas, and what was the timeline for this.
  • The committee requested the Department to elaborate on the social cohesion programme and how will the programme be carried out across the country.
  • The committee requested the Department to elaborate on the success stories of their bursary programme, including how many students have thus far received this bursary and how many have completed their course. They also enquired whether these students later received employment after graduation.
  • The committee referred to a media report that claimed that the Gauteng Department of Sports, Arts, Culture and Recreation has failed to outline the type of equipment purchased for over R70 million in the past three financial years. The requested clarity on how it provides oversight on the procurement of equipment for sports, arts and culture in provinces.
  • The committee stated that the reason that primary schools do not have sufficient sports and arts development programmes is due to a lack of resources, coaching and curriculum. They enquired whether there was a working collaboration between the DSAC and DBE to ensure successful realisation of sports activities within primary education.
  • There was a request on an update on the development of the Sports and Recreation Policy and as to whether it will reach finalisation by March 2024.
  • The committee enquired about the library programme which aims to extend libraries to include measures for those that are visually impaired, or those who read differently. The Department was asked to outline on how the mini library will support those that are differently abled and who is determining the needs of those who are visually impaired or read differently to ensure libraries suitably provide this.
  • The committee expressed the department's commitment to beautifying public spaces, involving youth, and increasing international engagement and cultural diplomacy within sports, arts, and culture. The Department was then requested to provide a progress update on the development of an International Relations Strategy for sports, arts and culture and the benefits achieved through such a strategy, and as to why this strategy was not developed in 2023/24.
  • The committee referred to the development of a music policy and design policy for implementation in 2024/25, as well as a book and publishing policy. There was an inquiry on the process being followed in the planning, development and implementation of these three policies, and the reasons that have delayed these policies from being developed and implemented sooner.
  • The committee noted that the Department intends to expand the sector for emerging artists, including through the Art Bank project. The committee enquired on how DSAC and the Art Bank SA ensures that emerging artists, especially those in rural areas, access skills training and nurturing from it.
  • The committee spoke to the incubator and training programmes for artists that DSAC intends to facilitate. There is a budget allocation for companies that have achieved a reputation for the training of emerging artists. This is to ensure access to such programmes and allows artists to receive national accreditations. The committee enquired on what training programmes have been developed thus far, and why  these are not being developed and implemented by the Department of Higher Education and DBE.

 

5.2.Responses by the Department of Sport, Arts, and Culture regarding members observations

  • In response to the strengthening of community dialogue, the DSAC reported that the Community Conversation programme will work twofold. Firstly, it will answer the call of communities dealing with problems and facilitate appropriate dialogues. Secondly, the Department will go into communities proactively to understand the issues that exist within these communities. Part of this programme is looking at working with community leaders, and traditional leaders. This programme intends to equip others within communities to continue to facilitate dialogue, and this project is in partnership with the UNDP.
  • In response to the scope of the social cohesion programme. The DSAC reported that it will be facilitated by representatives from communities within provinces, and resources are given to these representatives. Engagement between this community representative and the Department will guide the Department as to what tools that community may need, and there is an exchange of information and knowledge. These representatives are also put into contact with facilitators in other provinces to ensure cohesion. Not all provinces have facilitators, but an analysis is being conducted in order to identify new facilitators in these provinces.
  • In response to the Sports Ambassadors programme, the DSAC clarified that the Sports Ambassadors Programme consists of seven female ambassadors and 14 male ambassadors. As a pilot programme it was confined to Limpopo, Mpumalanga, and Gauteng. It is now being developed into other provinces and the number of ambassadors is intending to grow. The sports are confined to football, netball, athletics, rugby and boxing - those offered within the school curriculum. They are also offered life skills training and motivational talks.
  • There are school sports structures at national and provincial levels and this is being implemented with the Department of Basic Education. This is established in the existing Memorandum of Understanding with DBE. However, the new memorandum intends to see how DBE can further ensure these sports structures are being implemented in schools. Challenges the Department faces are that educators in schools are not resourced to implement these structures, they cannot be properly remunerated, and the overtime they will have to provide to the school. The new Memorandum of Understanding includes all areas of sports, arts and culture, and heritage, not just limited to sports. A review is being done by the Minister, especially on sports. This is the reason the Memorandum has not yet been signed. Once this review is done, and any changes made, the memorandum will be signed off by both parties.
  • The Department spoke to the progress and finalisation of the Sports and Recreation policy. Sports codes are being revised and prioritised, considering that DSAC must prioritise those sports that will bring international competitiveness and participation in prestigious events. As consultations with various federations is taking place, the policy is slowly being developed. This roadmap will be followed before it is taken to the Cabinet. The Department reaffirmed its commitment to working closely with DBE. The Memorandum of Understanding serves to better outline the role of each department in this partnership.
  • On the status of the Heraldry Bill and South Africa National Geographical Names Bill. The DSAC indicated that public comments have been received by the state advisor and these are currently being incorporated into the Heraldry Bill. Similarly, the South African National Geographical Names Bill has received comments, and is currently undergoing a socio-economic impact assessment, after which it will go through the cabinet cluster process in the third quarter.
  • The DSAC noted the importance of the Chairperson’s comments on the digitisation of archival material. They reported that this process has been upscaled, with the French Audiovisual Institute, through attainment of PESP funding, and further funding has been received to digitise archival records.
  • The connectivity of libraries is a priority of the Department within library extension and building programme. Connectivity is a priority when establishing the locations of libraries.
  • On the bursary programme, the DSAC responded that many students are new in the programme, but there are ten returning students completing Masters and PhD. The process of placing graduates within employment is currently underway. Twelve students have been placed within the department.
  • On the mini library project for the visually impaired and those that have different reading abilities, this project has thus far established 290 mini libraries which aim to provide resources including braille and other audio-visual materials.
  • On the National Youth Service programme, the DSAC indicated that the programme will be implemented through NYDA under the National Young Footprint programme. There will be 250 artists who will be placed in art centres across the country, including in rural areas. They will be placed in workplaces in order to increase job opportunities.
  • The DSAC clarified that the music policy was a part of the revised White Paper. It is in consultation processes with the advisory team and should be finalised by 2024. The theatre and dance policy must go through the cabinet committee. The book and publishing policy has not gone out for public comment yet but is currently in consultation with stakeholders from the sector.
  • The Art Bank is a project driven by the National Museum in Bloemfontein. Calls for submissions are sent out by the National Museum, after which the Art Bank purchases items and artists get fully remunerated. These artworks are then used for diplomatic ventures, gifting, and display within various government projects.
  • The DSAC works with the Department of Higher Education on the training and incubator programmes.

 

  1. Recommendations

It is requested that the Minister of Sport, Arts and Culture considers the following recommendations and reports back to the Committee by no later than the end of the 2023/24 financial year, i,e, 31 March 2024.

  • The implementation of the new MOU on school sport between DBE and DSAC is to be reported back to the committee by the end of November 2023.
  • The Department is to provide written feedback on the state of the Heraldry Bill, South Africa National Geographical Names Bill, as well as the National Sport and Recreation Amendment Bill by the 30th of January 2024.
  • The Department is to provide feedback on the percentage of libraries that have internet connection by the end of January 2024.
  • The DSAC is to investigate and provide feedback to the committee in the R70 million spent by the Gauteng Department of Sport, Arts, and Culture for the sport equipment bought in the past three years. Written feedback to be provided to the committee by 30 September 2023.

 

  1. Conclusion

Having satisfied itself in its engagement with the Department of Sport, Arts, and Culture on its Annual Performance Plans and the Budget, the Select Committee on Education, Technology, Sport, Arts, and Culture recommends that the House approves Budget Vote 37,

 

Report to be considered.