ATC130729: Report of the Portfolio Committee on Water and Environmental Affairs: Consideration of the 2013-2014 Strategic Plans, Annual Performance Plans and Budget Allocation of the Department of Environmental Affairs and its Entities, namely Isimangaliso Wetland Park Authority, the South African National Botanical Institute, the South African National Parks and the South African Weather Services; and, the Findings of the Auditor General  Regarding the Interim Audit Conducted on the Financial Statements for 2012-2013 and the Use of Consultants During the period 2006 – 2009 by the Department of Environmental Affairs, dated 15 May 2013.

REPORT OF THE PORTFOLIO COMMITTEE ON WATER AND ENVIRONMENTAL AFFAIRS: CONSIDERATION OF THE 2013-2014 STRATEGIC PLANS, ANNUAL PERFORMANCE PLANS AND BUDGET ALLOCATION OF THE DEPARTMENT OF ENVIRONMENTAL AFFAIRS AND ITS ENTITIES, NAMELY ISIMANGALISO WETLAND PARK AUTHORITY, THE SOUTH AFRICAN NATIONAL BOTANICAL INSTITUTE, THE SOUTH AFRICAN NATIONAL PARKS AND THE SOUTH AFRICAN WEATHER SERVICES; AND, THE FINDINGS OF THE AUDITOR GENERAL REGARDING THE INTERIM AUDIT CONDUCTED ON THE FINANCIAL STATEMENTS FOR 2012-2013 AND THE USE OF CONSULTANTS DURING THE PERIOD 2006 – 2009 BY THE DEPARTMENT OF ENVIRONMENTAL AFFAIRS, DATED 15 MAY 2013.

1. Background

The Portfolio Committee on Water and Environmental Affairs (the Portfolio Committee) having considered the request of the National Assembly to consider and report on the Strategic Plans, Annual Performance Plans (APPs) and budget allocations of the Department of Environmental Affairs (the Department) and its entities (the entities), tabled by the Minister of Water and Environmental Affairs (the Minister), and in terms of the Public Finance Management Act of 1999 (PFMA), reports as follows:

2. Introduction

The Portfolio Committee has over a period of three (3) months, in detail, considered the revised Strategic Plans for the period 2013 to 2017 and the Annual Performance Plans for the 2013-2014 financial year of the Department and the four entities of the Department, namely Isimangaliso Wetland Park Authority (Isimangaliso), the South African National Biodiversity Institute (SANBI), South African National Parks (SANPARKS) and the South African Weather Services (SAWS).

The Portfolio Committee has further also considered the adequacy of financial resources for the implementation of these plans and interrogated the allocation received by the Department and its entities from the National Treasury (Treasury), the trends over the Medium Term Expenditure Framework (MTEF) both in terms of allocations and expenditure and, in the instance of the entities, in term of revenue collected. This interrogation has been done in preparation of the Annual Budget Vote of the Department.

As part of this three (3) month process, the Portfolio Committee also engaged the Office of the Auditor General (the OAG) on the findings of the interim audit done of the Department on the mid-year results for the 2012-2013 financial year and on the findings of the use of the consultants by the Department during the period 2006 - 2009.

This report details the findings and recommendations of the Portfolio Committee after engaging the Department, the Entities, Treasury and the OAG on the above matters.

3. Strategic Plans and Annual Performance Plans of the Department and the Entities

3.1 Preliminary consideration of Plans

On 19 February 2013, the Portfolio Committee engaged the Director General, Chief Operations Officer (COO), Chief Financial Officer (CFO) and relevant Executive Managers of the Department, as well as the Chief Executive Officers (CEO) and CFOs of the Entities on the draft Strategic Plans and APPs (December 2012 drafts submitted to the Treasury). The purpose of this interaction was four fold, namely:

· To gain an understanding of how performance indicators and targets are arrived at and how progress against these targets are tracked and reported on;

· To foster an integrated approach in planning, monitoring of progress and reporting against such progress between the Department and the 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;

· To contribute to improvement of the draft plans prior to it 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 the Entities.

The presentations made by the Department and 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 the 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, 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 by the Department.

The methodology used in the development and format of the Strategic Plan and APP 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 the Entities.

3.2 Recommendations

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 APPs 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, at least, 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 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.

· That the following targets and indicators in the draft plans be amended:

· Department’s Annual Performance Plan

§ Programme 1: Refinement of the indicator and target related to the response to public and parliamentary questions and queries, by separating public queries from questions and information requests of Parliament into separate targets and by increasing the percentage of compliance to time frames for the latter to be 100 per cent as opposed to the 95 per cent indicated;

§ Programme 2: Refinement of the indicator and target relation to the percentage of Environmental Impact Assessment applications processed within time frames to have a staggered percentage target linked to the number of applications received; and

§ Programme 7: Amendment of the target set for the reduction of waste going to landfill to be specific instead of “measurable decrease” and by adding a baseline from where such decrease will be measured.

· SANParks Annual Performance Plan

§ Alignment of indicator descriptions with that used in the DEA APP, especially in terms of the Expanded Public Works Programme.

· SANBI, SAWS and Isimangaliso Annual Performance Plan

§ No amendments considered necessary.

The Department resolved to support the inclusion of the presented indicators and targets in the Strategic Plans and APPs of the Department and the Entities, which was to be tabled in Parliament, on 13 March 2013, subject to the recommended refinements and amendments as stipulated above.

4. Consideration of tabled Strategic Plans, Annual Performance Plans and budgets – an integrated approach for the Department and the Entities

4.1 Compliance by DEA and the Entities to prescripts around Strategic and Annual Performance Plans

The Portfolio Committee noted with appreciation that the Strategic Plans and APPs of both the Department and all four Entities were tabled in Parliament in full compliance with the relevant prescripts and by the stipulated date of 13 March 2013.

4.2 Approach of the Portfolio Committee in consideration of the Strategic Plans and Annual Performance Plans

On 13, 19 and 20 March 2013, the Portfolio Committee considered the tabled Strategic Plans, APPs and Budget Allocations for 2013-2014 and the preliminary financial performance forecasted for 2012-2013, as well as the findings of the OAG, as contained in the interim audit done on the Department. The presentations and documents that form the basis of the deliberations of the Portfolio Committee were considered together with the tabled Plans.

In terms of the key performance indicators and targets contained in the Plans, the Portfolio Committee perused the tabled plans and discussions focused on changes that were effected subsequent to the engagement on 19 February 2013, as well as key strategic priorities relevant to the programmes of the Department and that of the Entities.

Whilst the Portfolio Committee appreciated the effected changes to the Department’s revised Strategic Plan, the Portfolio Committee, in undertaking an analysis on the revised performance indicators and targets, argued that these are still narrowly conceptualised within the compliance framework determined by the PFMA and Treasury Regulations. The Portfolio Committee noted further that while the PFMA and various regulations (issued in terms of this Act) requires some degree of integration of strategic and operational plans with budgets, little is said on how this should be done in practice. Whilst this may create short-term uncertainty and lack of prescription, the Portfolio Committee argued, this also creates a long-term opportunity for unleashing the Department’s creativity in crafting indicators and targets, which speak to its own individual operating context.

The Portfolio Committee noted the difficulty in assessing the overarching picture when a strategic plan was narrowly conceptualised within the required prescripts. A comparison was made with the creativity of the Department of Water Affairs, which had used a creative approach in the form of highlighting the most important indicators with the use of a dashboard approach. This provided a concise overview of the activities of the Department of Water Affairs over the medium term, as well as making it easy to track the progress of each target relative to its concomitant indicator. Furthermore, the Department of Water Affairs also allowed for a tracking, as well as monitoring and evaluation mechanism, on specific indicators and targets, which could indicate the efficacy of each of its programmes. The Portfolio Committee requested the Department to follow the model (dashboard approach) utilised by the Department of Water Affairs in drafting indicators and targets for its strategic plan in future years.

4.3 Processes of planning followed by the Department toward its strategic plan

The environmental planning assessments encompass areas such as land use, socio-economic activity, transportation, economic and housing characteristics, air pollution, noise pollution, the wetlands, habitat of endangered species, flood zones susceptibility, coastal zones erosion and visual studies, amongst others, and is referred to as an integrated environmental planning assessment. It is the ability to analyse environmental issues that will facilitate critical decision-making.

The public policy planning for the environmental sector in South Africa is predominantly undertaken by the Department within a cooperative governance framework, as well as assistance provided by the entities to facilitate aspects of the work of the Department. Within its planning process of its strategic plan, the Department identified three priority goals that it seeks to achieve during the 2012/13 to 2017/18 period. In this regard, the Department seeks to ensure that:

· Environmental assets are conserved, valued, sustainably used, protected and continually enhanced;

· Enhanced socio-economic benefits and employment are created from a healthy environment; and

· There is capacity to deliver services efficiently and effectively within its mandate.

The translation of these goals to attaining optimal outcomes requires a structured approach at all levels of an organisation. The structure used by the Department culminated in devising seven programmes (Administration; Legal, Authorisation and Compliance; Oceans and Coasts; Climate Change and Air Quality Management; Biodiversity Conservation; Environmental Programmes; and Chemicals and Waste Management) with relevant performance indicators and targets, which are carefully crafted to attain the three priority goals (highlighted above).

In South Africa, environmental planning requires the Department to deal with a full range of stakeholders within the three spheres of government, as well as mandating entities to undertake certain functions in the environmental sector on its behalf. The entities partnering and supporting the Department to successfully attain its goals and priorities are SANBI, iSimangaliso, SAWS and SANParks.

To further translate these goals over the medium-term, the Department, with the entities, have prioritised the following:

· Building of local government delivery capacity in accordance with their constitutional competencies, through support in the areas of air quality management, waste and chemicals management, biodiversity management, coastal planning and open space planning;

· Strengthening compliance and enforcement institutions, systems and activities;

· Enhancing synergies between climate change, the green economy and sustainable development at national and international levels; and

· Aligning governance systems with the outcomes approach.

5. Expenditure trends of Budget Vote 30 for the 2012/2013 financial year and medium term budget projections

The hearings of the 13 ^th , 19 ^th and 20 ^th of March 2013, were supplemented by the expenditure trends of Budget Vote 30 for the 2012/2013 financial year, medium term budget projections, as well as further issue based engagements with the Department and the Entities, between 12 February 2013 and 15 May 2013, as follows:

5.1 Projected Expenditure and Revenue for the 2012-2013 financial year

The Portfolio Committee noted that the Department projected a total expenditure of 95 per cent. It further noted that the underspending is mostly due to the slow expenditure of the Green Fund, where, whilst all funds have been committed to projects that have been approved by the Green Fund Mancom, disbursements have been slow during the initial months of the year and only approximately R90 Million of the allocated R300 Million in the financial year will be utilised. This slow disbursement was mostly due to the establishment of the fund and finalisation of all institutional and governance instruments for responsible disbursements. This under-expenditure will be declared to Treasury and a rollover requested in terms of the prescribed Treasury procedures.

Another area of under-expenditure noted is on the unitary payment allocation of R60 Million associated with the PPP for the new building, where, due to the revised financial model and late conclusion of the PPP agreement, payments were not due though allocated. This will be declared to Treasury and a rollover requested in order to procure the IT infrastructure required for the new building, as the requested funds for this was not allocated.

The information provided on the use of consultants (a substantial reduction in expenditure on Consultants during the past financial year), the approach to the use of consultants and the system improvements effected to address the shortcoming identified by the OAG in the performance audit conducted on the use of consultants, during the period 2006 – 2009, is encouraging. The Portfolio Committee is of the view that the Department has sufficiently tightened its management of the use of consultants and the performance of consultants. The Portfolio Committee will, however, continue to monitor the use and management of consultants by the Department.

The Portfolio Committee further noted the substantial shortfall (R150 Million approximately) in terms of budget against the expenditure of the Oceans and Coast Branch. It noted that this was largely due to the VAT that had to be paid on the Agulhus II; the costs associated with the Algoa that was transferred to the Department without any budget allocation; the overlap of one month’s costs (including management fees) of operating both the Agulhus I and Agulhus II; and other costs associated with the research programmes of the Oceans and Coasts Branch. The Portfolio Committee further noted the Department’s intention to fund this shortfall from allowable virements within the Department’s budget.

The Portfolio Committee noted that SANParks projected over-expenditure of approximately R25 million attributable to the forest management function that was transferred from the Department of Agriculture, Forestry and Fisheries (DAFF) without any budget. It is further of concern that the current legal challenges against SANParks by some municipalities regarding municipal taxes, if successful, could pose a substantial financial burden for SANParks.

Lastly, the Portfolio Committee noted that due to aviation tariffs due to SAWS by insolvent airlines, its revenue collection has been less than what was projected in its budget.

5.2 Auditor General’s Report on interim audit (2012-2013)

The Portfolio Committee noted the presentation made by the representative of the OAG and the indication given that the Department and the Entities have responded positively to correct the areas of concern identified in the dashboard reports provided to them. The area of concern raised by the OAG in terms of non-compliance by the Department and SANBI on the submission and publication on the website of technical descriptors to performance indicators has been raised with the Department and SANBI, and the matter has subsequently been resolved. The Portfolio Committee also noted with appreciation the Department’s report on its readiness for closing of the 2012-13 financial year and the audit process.

5.3 The Budget Allocation by Treasury to the Department and its Entities for 2013-2014 and over the Medium term Expenditure Framework

The Portfolio Committee noted and appreciated that the budget allocations made by Treasury must be seen in the context of a very tight fiscal environment. The Portfolio Committee noted the budget guidelines issued to the Department and the entities and the emphasis by Treasury that there is no additional funding available and that additional funding requirements would need to be resourced through reprioritisation within departmental allocations or by sourcing such funds from Departments that do not perform optimally. It was further noted that the Treasury’s guidance in terms of requests for additional funds stipulated that such requests could only be favourably considered where it would result in stimulation of the economy and where it is associated with the infrastructure development priorities of government.

5.3.1 Medium term projections for Budget Vote 30: Department of Environmental Affairs

The spending focus over the medium term will be on improving service delivery and creating jobs in the environmental sector. The bulk of the budget will be spent on the expanded public works projects within the Environmental Programmes to create 113 748 full time equivalent jobs and 219 089 work opportunities. Expenditure in the Environmental Programmes grew significantly between 2009/10 and 2012/13 due to the rollout of the expanded public works programme, which also accounted for the significant increase in transfers and subsidies over this period. The programme created 54 301 full time equivalent jobs and 172 979 work opportunities between 2009/10 and 2012/13. Over the same period, the significant increase in expenditure on the Administration programme was due to the expanded mandate of the Environmental Advisory Services subprogramme, which manages and facilitates the Department’s international relations, engagements and cooperation agreements, and the infrastructure development programme.

Table 1 below provides expenditure estimates for the Department of Environmental Affairs over the medium term

The increased expenditure projected over the medium term in the Legal, Authorisations and Compliance and Chemicals and Waste Management programmes is due to the development and implementation of instruments to improve the efficiency and effectiveness of the environmental impact management system across the country, and capacitating the two new programmes. Spending on transfers and subsidies to departmental agencies and accounts is projected to increase significantly over this period due mainly to an additional allocation of R1.2 billion received from the economic competitiveness and support package. Other increases over the medium term relate to agency and support services, such as wildlife security, administration and added support personnel for the Department’s new focus areas.

The 2013 Budget sets out the following additional allocations over the medium term:

· R344 million for the increased costs of research and conservation in the Oceans and Coasts programme; and the operation and staffing of the SA Agulhas II and the Algoa research vessels;

· R20 million to upgrade research laboratories to make them compliant with occupational health and safety regulations;

· R90.5 million in 2014/15 for the expanded public works programme, for incentives to increase the labour component of the programme from the current 30 per cent target to 40 per cent over the medium term;

· R300 million in 2015/16 for the Green Fund to fund projects that support environmental protection;

· R167.3 million for improved conditions of service for the Department and the entities;

· R98 million for pre-assessment of projects, and the development of an integrated permitting system to support the implementation of the infrastructure building programme, as identified in the new growth path; and

· R75 million for the SANParks to combat rhino poaching.

The Cabinet approved budget reductions of R52 million in 2013/14, R102 million in 2014/15 and R161 million in 2015/16 have been effected across all programmes.

The Department had a funded establishment of 1 483 posts and 202 posts were filled additional to the establishment. There are 109 vacancies, mostly as a result of natural attrition and the lack of adequate skills within the environmental sector. Personnel numbers are expected to increase to 1 685 in 2015/16 in order to better capacitate the Department.

The Department mainly uses consultants to provide audit services and assist with infrastructure planning and studies on climate change, as well as for the biodiversity, marine and environmental sector programmes.

5.3.1.1 Infrastructure spending

The Department entered into a public-private-partnership project to build a new departmental building. An additional government contribution of R220 million was made in 2012/13 and R146 million has been provided in 2013/14 in order to decrease the annual unitary payments payable for 25 years after completion of the project.

Construction of the building began in July 2012 and is expected to be completed by June 2014. Additional infrastructure spending over the MTEF period includes R20 million for the Oceans and Coasts programme laboratory infrastructure to ensure occupational health and safety compliance; R150 million to SANBI to upgrade the Kirstenbosch National Botanical Garden education centre, facilities and equipment; R70 million to upgrade equipment, facilities and infrastructure at iSimangaliso; R390 million to upgrade roads, equipment and infrastructure at SANParks; and R50 million for high performance computers for SAWS.

5.3.1.2 Cut to the Department’s Baseline Allocation

The Department provided a submission made to Treasury for additional funding for selected unfunded or insufficiently funded priorities and the allocations received from Treasury, including a cut to the baseline allocation of the Department, over the MTEF period. The Portfolio Committee noted with concern the cuts effected over the MTEF to the Department’s baseline allocation in spite of the Department’s motivated submission to Treasury on the consequences to delivery of such cuts and the measures already taken over the past three years to reprioritise the budget and meet the capacity requirements to deliver against its regulatory mandates. The Portfolio Committee noted with appreciation that the Department did not introduce any cuts to its transfer payments to the Entities.

5.3.1.3 Outcome of the requests to Treasury for additional funding in priority areas of work through the Medium Term Expenditure Framework process and the consequences of the outcomes of such requests

The presentation by the Department and the supporting information submitted to the Portfolio Committee indicated that the Department and the Entities approached Treasury for funds additional to the baseline allocation for Strategic Infrastructure Projects and the Environmental Regulation thereof; Science based priorities; and Job creation.

The combined request to Treasury for additional funds for projects and programmes falling within the above prioritised funding areas from the Department and the entities totalled R1 364 billion. The allocation received from Treasury totals R307 million.

The Portfolio Committee welcomed the additional funding received in terms of Infrastructure development programmes of the Department and the Entities and the efficient environmental regulation of the Strategic Integrated Projects of the Presidential Infrastructure Coordinating Commission (PICC). The additional, although insufficient, funds allocated to the fight against environmental crime, in particular Rhino Poaching, are also welcomed.

The Portfolio Committee is, however, extremely concerned about the inadequacy of allocations in general, the impacts of the cut 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 Oceans 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. The unsuccessful requests for additional funds, in the following areas, are of particular concern to the Portfolio Committee:

· Expansion of the Conservation Estate, where over the MTEF Cycle, no funds have been allocated against the motivated R225 million;

· Waste Services Infrastructure, where over the MTEF Cycle, no funds have been allocated against the motivated R225 million;

· Oceans Research programme, where especially in the first year of the MTEF cycle, resourcing is inadequate – of the R182 million requested (and motivated, based on commitments and actual costs associated with the existing programmes) only R75 million was allocated – the increased allocations from 2014-2015 are however acknowledged;

· Regulatory, monitoring and enforcement systems, as well as building the capacity of provinces in this regard, in terms of biodiversity management, especially the wildlife crime information unit, where no funds have been allocated against the motivated R343 million;

· Implementation of the climate change response strategy, where no funds have been allocated against a request of R164 700 million over the MTEF allocation. The Portfolio Committee is especially concerned over this as it learnt that this programme is currently substantially funded through donor support. The Portfolio Committee finds this approach unsustainable in respect of such a matter which is of such a high priority to the country;

· The working on waste programme, where no funds have been allocated against the motivated need of approximately R930 million. The Portfolio Committee is especially concerned about this in light of the high profile of poor waste management and waste services, in especially impoverished areas;

· The People and Parks programme, which focuses on the development of infrastructure in protected areas through community entrepreneurs and thereby addressing both employment creation and the increased ability of protected areas to generate income through tourism activities – no funds of the R550 million requested have been provided over the MTEF cycle; and lastly

· In terms of the fight against rhino poaching, only R75 million of the approximately R250 million needed was allocated.

The consequences of insufficient resources for these programmes include, inter alia:

· The inability of the Department and the Country to meet its international obligations and commitments in terms of, inter alia, the United Nations Framework Convention on Climate Change (reduction of green house gas emissions in accordance with the peak, plateau and decline trajectory, as well as facilitating transitioning to a low carbon, climate resilient economy); and the United Nations Convention on Biodiversity (percentage of land under formal protection - in order to realise the agreed 17 per cent of land under protection by 2020 from the current baseline of only 7.7 per cent - the expansion of the conservation estate is essential, whilst land for this purpose has been identified in line with the National Biodiversity Framework, no funds have been allocated to acquire the land needed);

· The inability to implement an integrated and multipronged strategy to arrest the surge in Rhino Poaching and the inability to reverse an increasing trend of wildlife crime in spite of crime prevention being a key priority of government’s (enforcement strategy);

· The inability to implement programmes and interventions that would, whilst addressing the poor state of waste management services in the majority of municipalities, also create employment for especially youth; and

· The inability to optimally utilise the state of the art research vessels and deployment of South African innovation in terms of research equipment that would increase our understanding of the ocean, the opportunities it offers for the economy and the role it plays in climate change.

6. An overview of the strategic objectives and spending focus of the programmes of the Department and the entities over the medium term

Policy developments, legislation and other factors affecting expenditure within the new national budget format – the Estimates of National Expenditure - expand the scope and quality of information on government’s spending plans. Details of measurable objectives, outputs, output performance measures or service delivery indicators are provided as another step forward to setting ‘measurable objectives’ for each expenditure programme, in line with the PFMA.

Integrating service delivery and performance information into planning and budgeting processing contributes to better budgeting and enhanced service delivery. Monitoring and measuring service delivery and performance may be viewed as a process of assessing progress towards achieving predetermined goals. The process may be used as a tool for self-assessment, goal-setting, monitoring of progress and to facilitate communication of objectives and service delivery targets and progress. The sections that follow will provide an overview of the strategic objectives and spending focus of the programmes underpinning the work of the Department and the entities.

6.1 Overview of strategic objectives and spending focus of the programmes

6.1.1 Departmental Programme 1 (Administration, International Relations, Information Management and Integrated Environmental Management) related to:

· Engagement with the OAG and the Department on the Performance Audit conducted on the use of consultants (12 March 2013);

· Engagement with the Department on their analysis of and response to the National Development Plan 2030 (13 March 2013);

· Whilst not specifically targeted in the budget hearings and related processes, the achievements of and challenges associated with the Environmental Impact Assessment regime, is a priority area for the Portfolio Committee and public hearings in this regard have been scheduled for the third parliamentary term of 2013;

· The integrated environmental management approach to mining is an additional area of priority of the Portfolio Committee and briefings by the Department with regard to the approach to off-shore mining, coastal mining and the inland mining of sand will be scheduled for the 3 ^rd or 4 ^th Parliamentary term of 2103; and

· The critical importance of the 2012 South African Environmental Outlook Report (incorporating the State of the Environment) in policy making would also require further engagement with the Department and will be scheduled post the publication of the Report towards the middle of 2013.

The spending focus over the medium term for the Administration programme will be on providing for office accommodation for the Department and maintaining the required personnel to provide corporate and other support services. Over the medium term, expenditure in the Environmental Advisory Services subprogramme is expected to increase to capacitate this unit, which was created during the departmental restructuring process in 2012/13.

6.1.2 Departmental Programme 2 (Legislation, Authorisations, Compliance and Enforcement) related to:

· Engagement with the Department on its legislative programme (NEMLA Bill, ICMA Bill) (on 12, 13 February 2013);

· Engagement with the Department on legislative programmes of other portfolios impacting on the Department (Infrastructure Development Bill, Mineral and Petroleum Resources Development Bill, Spatial Planning and Land Use Management Bill) (on 13 February 2013); and

· Engagement with the Department on its approach and systems in compliance with the Promotion of Access to Information Act (PAIA) and Promotion of Administrative Justice Act (PAJA) (of 13 March 2013).

The strategic objectives of the Legal, Authorisation and Compliance programme are to:

· Improve the level of compliance with environmental legislation by increasing the number of inspections of facilities in environmentally sensitive areas from 85 in 2012/13 to 115 in 2015/16; increasing the percentage of administrative enforcement actions resulting in compliance from 67 per cent in 2012/13 to 80 per cent in 2015/16; and increasing the number of criminal investigations finalised per year and dockets handed over for prosecution from 17 in 2012/13 to 37 in 2015/16.

· Ensure that the possible negative impacts of development activities and patterns are minimised, mitigated or managed by increasing the percentage of environmental impact assessment decisions processed within prescribed time frames from 60 per cent in 2012/13 to 67 per cent in 2015/16; and to increase the number of progress reports that include potential risks on strategic infrastructure projects and associated developments submitted per year from 4 in 2013/14 to 8 in 2015/16.

· Improve the quality and timely legal support rendered to the Department in accordance with service level standards, protocols and applicable legislation, by increasing the percentage of litigation matters dealt with from 90 per cent in 2012/13 to 95 per cent in 2015/16.

The spending focus over the medium term will be on enhancing compliance and enforcement efforts to increase the private sector’s/industry’s voluntary compliance with environmental legislation, which is reflected in the increased expenditure on the Integrated Environmental Authorisations subprogramme.

6.1.3 Departmental Programme 3 (Oceans and Coasts) related to:

· Engagement with the Department on disputed jurisdiction between the Department and DAFF on Marine Protected Areas, Boat Based Whale Watching and Shark Cage Diving (12 February 2013); and

· Engagement with the Department on the Green Paper on Ocean Management (12 February 2013).

The strategic objectives of the Oceans and Coasts programme are to ensure effective management of the ocean and coastal environment by gaining approval for the Ocean Management White Paper by 2013/14 and promulgating the draft legislation by 2015/16; ensuring response preparedness for oil spills along the South African coast through the review of 14 of the 25 oil pollution response plans by 2015/16; and launching the national coastal management programme to enable management of the entire coastline, including planning and conservation of the coast, by 2014/15. Other strategic goals under this programme are to:

· Strengthen the national science programme for integrated ocean and coastal management by conducting research annually to determine baseline information for biodiversity species and priority habitats within South Africa’s exclusive economic zone and associated large marine ecosystems; increasing the number of surveys of representative or priority habitats every year from 2 in 2012/13 to 8 in 2015/16; and supporting biodiversity and assessing marine protected areas through the cataloguing of new or unknown species, with emphasis on benthic invertebrate species, on an ongoing basis.

· Improve the conservation status of marine top predator populations, especially seals and the 12 million South African seabird species, by monitoring and researching their behaviour for baseline information annually; and providing appropriate management advice based on population numbers as required.

· Implement a functional coastal and ocean observation and monitoring network for the establishment of a climate and early warning system by increasing the number of observational platforms deployed from 3 in 2012/13 to 6 in 2014/15; and using the information gathered by the observational platforms to provide a basis for the annually compiled State of the Ocean report.

The spending focus over the medium term will be on developing a policy and regulatory framework to guide the sustainable development, conservation and management of ocean environmental resources, and on developing an ocean environmental management strategy and regime. Spending is thus expected to increase on agency, support and outsourced services to operate and manage the SA Agulhas II and Algoa research vessels. The programme also receives R20 million over the MTEF period for the upgrading of its research laboratories in order to comply with the occupational health and safety regulations.

6.1.4 Departmental Programme 4 (Climate Change and Air Quality Management) related to:

· Engagement with the Department on the Outcomes of UNFCCC COP 18 (20 February 2013);

· Public hearings on regulations and notices relevant to the National Environmental Management Air Quality Act (8 May 2013); and

· Future engagement with the Department on the legal framework, approach to and systems in place to monitor air pollution and the quality of air (11 June 2013).

The strategic objectives of the Climate Change and Air Quality Management programme are to:

· Ensure an effective response to climate change impacts by building adaptive capacity, socio-economic resilience and emergency response capacity by 2015/16; and completing Phase 1 of the development of the national integrated climate change adaptation strategy for South Africa by 2015/16.

· Contribute to the global effort to stabilise greenhouse gas concentrations in the atmosphere by making recommendations on aligning a climate change sectoral policies and plans by 2015/15; and finalising three (3) sector mitigation plans by 2015/16.

· Enable South Africa to meet its national and international obligations by developing a national monitoring and evaluation system for climate change by 2015/16.

· Ensure the continuous improvement of ambient air quality throughout the country by implementing air quality management plans in priority area hotspots and providing legislative support and leadership to other spheres performing air quality management functions over the medium term period.

· Reduce the national air quality indicator from 1.150 in 2011/12 to 1.130 in 2015/16 through the national implementation of the regulatory framework of the Air Quality Act of 2004 over the medium term; and growing and maintaining the number of monitoring stations in the country that report to the South African air quality information system from 60 in 2011/12 to 80 in 2015/16.

The spending focus over the medium term will be on air quality management and providing for the country’s ability to more accurately predict significant changes in weather patterns. Over the medium term, expenditure is expected to increase due to the transfer of the SAWS from the previous programme 2 to this programme, and an additional allocation of R50 million for high performance computers to improve the accuracy of weather forecasting. The relocation of the South African Weather Service to this programme also accounts for the projected increase in expenditure on transfers to departmental agencies and accounts for the medium term.

6.1.5 Departmental Programme 5 (Biodiversity & Conservation) related to:

· Engagements with the Department, SANParks, SANBI and Isimangaliso during the budget hearings on 19 and 20 March 2013 focusing on the Conservation mandate and priorities in this regard; Biodiversity mandate and priorities rd; CITES; Hunting Indaba; Rhino Issue Manager’s Report; and subsequent engagements with the Department, SANParks and Isimangaliso on Transfrontier Conservation Areas (5 June 2013).

The strategic objectives of the Biodiversity and Conservation programme are to:

· Improve conservation and biodiversity through the safeguarding of ecosystems, species, genetic diversity and the minimising of threats to ecological sustainability, by increasing the percentage of land under conservation from 7.7 per cent in 2012/13 to 8.5 per cent in 2015/16.

· Ensure the sustainability of ecosystems by regulating and promoting the use of biological resources, species and genes, by implementing 1 new sustainable natural resource based project per year over the MTEF period.

· Promote and enhance livelihoods through access to, and fair and equitable sharing of benefits arising from the use of biological resources, by developing a draft system for transformation of the biodiversity sector by 2015/16.

The spending focus over the medium term will be on implementing the Protected Areas Expansion Strategy to ensure that endangered biodiversity, ecosystems and natural heritage areas are protected. This accounts for the significant spending on transfers to public entities which make up to 76 per cent of the programme’s budget over this period.

6.1.6 Departmental Programme 6 (Environmental Programmes and the Green Economy): No additional areas considered during this cycle as it was a focus area during the oversight visits of 2012. Further engagements on job creation, biosecurity and value-added industries will be scheduled during the 3 ^rd and 4 ^th Parliamentary term of 2013.

The strategic objectives of the Environmental Programmes are to:

· Promote the empowerment of designated communities by creating 219 089 work opportunities and 113 748 full time equivalents within environmental projects through the implementation of the expanded public works projects over the MTEF period.

· Restore and maintain vegetation structure and function in order to contribute to ecosystem services by clearing or treating of 870 089 hectares of invasive alien plants per year; cleaning 2 113 kilometres of coastline per year; extinguishing 2 000 fires per year; and restoring and rehabilitating 92 157 hectares of land over the MTEF period.

· Facilitate the transition to a growth path that is low in carbon and resource efficient by providing catalytic finance to 65 green initiative projects over the medium term.

The spending focus over the medium term will be on protecting environmental infrastructure, water resource management and promoting sustainable livelihoods by developing skills in a green context. These efforts will lead to the creation of 113 745 full time job equivalents and 219 089 work opportunities through the expanded public works programme. The bulk of spending over the medium term goes towards the implementation of these programmes.

6.1.7 Departmental Programme 7 (Chemicals and Waste Management) related to:

· Engagement with the Department on Industrial Waste Management Plans (26 February 2013);

· Engagement with the Department on the Integrated Waste Management Strategy, the budget allocation and priorities related to waste management; and

· Further engagement on the management of priority waste streams (tyres, packaging & medical waste) during the 3 ^rd and 4 ^th Parliamentary term of 2013.

The strategic objectives of the Chemicals and Waste Management programme are to:

· Oversee, monitor and evaluate waste sector performance, strategies, policies and initiatives by improving waste management by increasing the percentage of households with basic service collection from 56 per cent in 2012/13 to 75 per cent by 2015/16; regulating negative environmental impacts through the development of policies, processes and systems by 2015/16; finalising the approval of 96 per cent of waste licence applications within the MTEF period; managing and coordinating 116 reductions in unlicensed waste disposal sites within the MTEF period; and supporting municipalities to increase waste expenditure by 5 per cent over the MTEF period.

· Create enabling waste policies and strategies by improving intergovernmental coordination over the MTEF period; developing national policies, strategies, legislation, and norms and standards on chemical waste; monitoring and evaluating the impact of policy on the environment on an ongoing basis; and providing specialised advisory services on chemicals, waste and pollution management as and when required.

The spending focus over the medium term will be on developing an appropriate legislative framework and building capacity to improve the provision of quality chemical and waste management services across the country with clear environmental health benefits for communities.

6.2 Spending focus of entities over the medium term

For SANParks , revenue is expected to grow over the medium term due to an increase in the transfers received from government for infrastructure development and a projected increase in tourism income. The spending focus over the medium term will be on improving the state of the conservation estate and contributing to conservation nationally and globally. Fighting poaching crimes across the country remains a top priority, and an additional R75 million has been allocated for this purpose. The maintenance and upgrading of tourism facilities also remain a key focus area for spending.

The spending focus over the medium term for iSimangaliso is on infrastructure and maintenance, and the expansion of core operations. The Park Authority receives an additional allocation of R70 million over the MTEF period from the economic competitive support package to provide for equipment, facilities and infrastructure upgrade.

The spending focus of the SANBI over the medium term will be on biodiversity mainstreaming and conservation, maintaining and improving the national botanical gardens, and enhancing the Institute’s corporate services. The expenditure increase over the medium term is mainly due to an additional allocation of R150 million for infrastructure upgrades, including replacement of the roof at the education centre of the Kirstenbosch National Botanical Garden.

SAWS generates revenue mainly through transfers from the Department. Additional revenue is provided by commercial services. The spending focus over the medium term will be on ensuring the continued relevance of the organisation’s meteorological products and services. This will entail directing R50 million of additional funding towards the acquisition of a high performance IT system that will allow the entity to forecast weather patterns more accurately and within smaller geographic areas, and predict natural disasters more precisely.

7 Portfolio Committee findings, recommendations and decisions regarding the Department and the Entities’ Programmes and plans

This section summarises the Portfolio Committee’s observations, recommendations and resolutions flowing from the engagements with the Department and the entities as detailed in the sections above. These are dealt with according to the Programmes as they appear in the Department’s Strategic Plan and APP, whilst the four (4) entities are dealt with together with the Departmental Programme relevant to them.

7.1 Presentation of strategic plans of Department and the Entities in a composite report

The Portfolio Committee requested that, in future, when the Department reported on conservation and biodiversity, this should be done in an integrated report which would encompass the work of the Department and all entities involved in this activity. In this way, entities would not each have to report separately, but would merely supplement whatever had not been dealt with fully in the integrated report. The strategic plans should not be heard from the entities as different perspectives, but should all be encompassed under the broad thematic areas and work of the Department. The achievements should be pulled together, so that there is no huge disjuncture between the activities of one entity over the other due to limited funding. There needed to be a holistic approach to budgeting and requests for funding ought to be read in combination with a composite motivation for funding. This would have an impact on the way targets were reached. This did not mean that the entities were being disregarded by the Portfolio Committee, but if an integrated approach was used, it would ensure that, years down the line, closer relationships between the Department and the entities would ensure greater efficiency in meeting the mandates of the Department and each of the entities.

7.2. Overview of observations, recommendations and resolutions as per programme

7.2.1 Administration (Programme 1)

The Portfolio Committee noted that in terms of:

· The business performance management , a Balance Score Card (BSC) approach is being utilised by the Department and each of the entities separately, to monitor in-year performance and to a limited degree, performance over the medium term expenditure framework. The BSC approach is specific to legal entities and in line with the reporting and accountability prescripts stemming from the PMFA; and whilst the Environment Sector Strategic Plan contains elements of a BSC approach, an integrated BSC system is not in place for the Strategic Plan and APPs of the Department and the entities;

· Human Capital Management , the Portfolio Committee questioned the review of the Personnel Performance Management and Development System and how this links to the determination of Performance Bonuses. Another key issue raised was the success of the vacancy management approach and its contribution to the reduction of the use of consultants;

· Communication and Environmental Awareness , issues were raised on the focused approach to Public Awareness Campaigns stemming from the successes of the Climate Change awareness campaign before, during and after UNFCCC COP 17. Another matter raised under this component related to the closing down of Indalo Yethu due to it not being financially sustainable, further, that the Eco-Labelling work of Indalo Yethu will be taken forward by the Cleaner Production Centre of the Department of Trade and Industry (DTI) and a memorandum of agreement between the Department and the DTI are being finalised in this regard. The Trust would be fully dissolved towards the end of May 2013;

· The deregistration of Buyisa-e-Bag : The Portfolio Committee required more information on the progress made towards a zero balance financial statement and the final audit required for deregistration, and the envisaged time frame for concluding the matter is 31 May 2013;

· Environmental Advisory Services , the Portfolio Committee noted that there has been delays in finalising the South African National Environmental Outlook Report (including the State of the Environment Report ), but publication is still intended to take place in 2013; the progress made towards the development of a sector wide Enterprise GIS and the importance of GIS in the Department (and the Entities’) business processes; and the interventions planned to further improve the efficiency and effectiveness of the Environmental Impact Assessment Regime and to overcome the challenges in this regard;

· International obligations and processes with the extensive list of conventions, treaties, bilateral and multilateral agreements that the Department leads or contributes to; and the role and responsibilities of the Department and the entities in the reporting regime in place for the Department’s work in this regard; and

· The Green Fund , the Department highlighted the progress made in the establishment of the Green Fund’s institutional arrangements; the progress made in implementing the Green Fund; and the delays experienced during the initial phases of implementation.

On the inputs raised above, the Portfolio Committee recommended that in terms of:

· The business performance management, an integrated, single, Balance Score Card for the Department and the Entities be developed with a longer term approach in terms of targets, progress and likelihood of achieving targets; and that such BSC be linked to the SAEOL system and be utilised for reporting to the Portfolio Committee in an integrated fashion;

· The dissolution of Indalo Yethu and deregistration of Buyisa–e-Bag, that a report be tabled by the Department in the Portfolio Committee when each of these has been done; and

· International commitments and processes, The Portfolio Committee is involved in multilateral processes, especially in terms of engagement with legislatures of targeted treaty parties in furtherance of South Africa’s and Africa’s interests.

The Portfolio Committee resolved to:

· Support the key performance indicators and targets set for Programme 1 in the Department’s Strategic Plan and APP for 2013-2014;

· Require the Department to submit to the Portfolio Committee a full list of employees awarded performance bonuses, as well as the amounts to be paid out before such payments are made;

· Further engage the Department and the Entities on the 2013 South Africa Environmental Outlook Report (including the State of the Environment Report) and all of the sub-sector “State of..” reports that fed into it; the planned sector wide Enterprise GIS and the integration of SANBI’s BioGIS into such system; and the Green Fund and the transition to a Green Economy;

· Require the Department to table a report in the Portfolio Committee when Buyisa–e-Bag has been de-registered and Indalo Yethu has been dissolved;

· That the Department must consider the policy and legislative framework associated with soil protection and sustainable management of soil and brief the Portfolio Committee in this regard, including what the role and mandate of the Department are in this regard. This report must be tabled in the Portfolio Committee before November 2013; and

· Conduct public hearings on the efficiency and effectiveness of the Environmental Impact Assessment Regime and the challenges in this regard.

7.2.2 Legal, Authorisation, Compliance and Enforcement (Programme 2)

The Portfolio Committee noted that in terms of the legislative programme of the Department:

· the Department provided the Portfolio Committee with a comprehensive list of legislation, regulations and other legal instruments currently under development or amendment, as well as the medium planning in this regard; and the Department prioritises the future implementation/alignment or amendment of the following Bills:

− The National Environmental Management Laws First and Second Amendment (NEMLA) Bills, (2012/2013);

− NEMLA First (2103) focusing on the alignment of the environmental legislation with the Mineral Petroleum Resources Development Amendment Bill;

− NEMLA Second (2013) focusing on urgent amendments to the NEM: Biodiversity Act and the NEM: Protected Areas Act;

− Integrated Coastal Management Amendment Bill (already tabled in Parliament);

− South African Weather Services Amendment Bill;

− Substitute Bill for Marine Life Bill;

− National Environmental Management: Waste Amendment Bill; and

− National Environmental Management: Air Quality Amendment Bill.

On the inputs raised above, the Portfolio Committee recommended that in terms of:

· Departmental compliance with PAJA and the management thereof, the Portfolio Committee noted the management of compliance with PAJA through building relevant provisions in sector legislation and regulations as far as licensing and permitting processes are concern; and t he inadequacy of the system to monitor and report on compliance with PAJA for monitoring and reporting on compliance for departmental decision-making processes falling outside of the authorisations mentioned above. In response to the above, the Portfolio Committee recommended that in terms of departmental compliance with PAJA and the management thereof, the Department develop a checklist and monitoring system to ensure compliance to PAJA and enhance its ability to report against such compliance in terms of all administrative actions and the decision-making of the Department.

· Departmental compliance with PAIA and the management thereof, the Portfolio Committee commended the Department’s compliance record with a 100-per cent response rate, substantially within the time frames prescribed; and the creation of a centralised electronic system utilised for the registration, management and monitoring of PAIA applications and queries.

The Portfolio Committee resolved to:

· Support the key performance indicators and targets set for Programme 2 in the Department Strategic Plan and APP for 2013-2014;

· Request the Department to provide progress reports of the process of developing a comprehensive Compliance & Enforcement Strategy;

· Require the Department to report on a quarterly basis on the progress against the submitted programme; and i n addition to the requirements stemming from the Interpretations Act requiring the tabling of subordinate legislation in Parliament after publication of such regulations, the Department be required to also table such subordinate legislation and legal instruments informally to the Portfolio Committee; and.

· Request the Department to report on a quarterly basis on its compliance with PAIA and PAJA; and to engage the Department on the following matters also to be included in the ongoing agenda of the Committee: The system developed for ensuring and monitoring compliance with PAJA; and the Centralised, intranet-based system utilised for the management and monitoring of PAIA queries and applications.

7.2.3 Oceans & Coastal Management (Programme 3)

The Portfolio Committee, on Programme 3 engaged the Department on the terms of the State of the Ocean Report with regard to the content of the report; the importance of a healthy ocean environment for climate change mitigation and adaptation purposes; the opportunities the ocean environment holds for conservation and economic purposes; the gaps in information with regard to the state of the oceans; and the integration of the report into the 2012 South African Environmental Outlook Report.

The Portfolio Committee noted that in terms of:

· The National Environmental Ocean Management Green Paper, the focus was on the content, especially in relation to the extent of South Africa’s territory or “land” with the inclusion of the Ocean and Islands; the application currently under consideration to expand the territorial waters of South Africa; the economic opportunities of the Ocean; the environmental management threats and opportunities offered by the Ocean; the extensive research needs associated with the Ocean management mandate; the progress with and planned consultative process for the further development of the policy; and the targets set in this regard;

· Ocean Research, the Portfolio Committee focused on the increased ability of the Department to honour its research commitments due to the transfer of the Algoa from DAFF to the Department; the programme of the vessels both in terms of research and relief voyages; and the inadequacy of the current deployed observation platforms and buoys to meet the data needs to satisfy adequate management of our oceans;

· Marine and Coastal mining, the issues deliberated on are the number of off-shore and coastal exploration and mining applications currently under consideration; the Department’s ongoing research into the potential environmental threats and opportunities associated with such mineral and petroleum product development; and the inadequacy of the current legislative framework in terms of consideration of cumulative environmental impacts and sustainability; and

· In relation to the collaboration between the Ocean and Coasts Programme and the SAWS in terms of indicators and targets set for research and data collection, the Portfolio Committee required more information, especially in terms of the Antarctica and Prince Edward Islands Programmes; the SAWS station on Gogh Island; the voyages of the research vessels; and the observation platforms and buoys.

After due consideration of the above aspects relevant to Programme 3, the Portfolio Committee, resolved to:

· Support the key performance indicators and targets set for Programme 3 in the Department’s Strategic Plan and APP for 2013-2014;

· Request further input from the Department on the progress made in finalisation of the Estuary Management Protocol.

· Engage the Department further on the following matters that are also to be included in the ongoing agenda of the Portfolio Committee: The Department’s ability to monitor compliance with and enforce environmental legislation in the Ocean; The Ocean Research Strategy; and Off-shore and Coastal exploration and mining; and

· Schedule public hearings on the National Environmental Ocean Management Green Paper.

7.2.4 Climate Change and Air Quality Management (Programme 4) and the South African Weather Services

The Portfolio Committee, in engaging on Programme 4, noted the progress made and targets set for the implementation of the National Environmental Management Policy on Climate Change Response; the outcomes of the United Nations Framework Convention on Climate Change 18 ^th Conference of the Parties and the implications thereof for the programmes and plans of the Department; the State of the Air Report; and its integration into the 2012 South Africa’s Environmental Outlook Report.

The Portfolio Committee was also interested in the collaboration between the Department and SAWS in relation to the performance indicators and targets for Air Quality Information Management; Monitoring and modelling changes to climatic conditions over time due to climate change; and Climate Change adaptation through disaster prevention such as early warning mechanisms on severe weather conditions.

In response to the insights offered by the Department to Programme 4, the Portfolio Committee recommended that SAWS develop a strategy to recover the aviation tariffs due to it.

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The Portfolio Committee, after its deliberations on Programme 4, resolved to:

· Support the key performance indicators and targets set for Programme 4 in the Department’s Strategic Plan and APP for 2013-2014;

· Support the key performance indicators and targets set for SAWS in its Strategic Plan and APP for 2013-2014;

· Engage the Department and SAWS further on the approach to and systems in place for the monitoring of and reporting on air quality – this matter will also be included in the ongoing agenda of the Portfolio Committee;

· Conduct hearings on the notices gazetted in terms of the Air Quality Management Act on emission standards and transitioning of industry to cleaner production processes; and

· Continue with the annual workshop and engagement with the Department and key role players, probably in July 2013, on the implementation of the National Climate Change Response Policy.

7.2.5 Biodiversity & Conservation (Programme 5); Isimangaliso Wetland Park; the South African National Biodiversity Institute and South African National Parks.

With regard to Programme 5, the Portfolio Committee noted the Key Performance Indicators and targets set for Programme 5 in the Department’s 2013-2014 Strategic Plan and APP and those set for Isimangaliso, SANBI and SANParks in theirs; and noted that the Key Performance Indicators of the above entities are aligned with those of the Department in Programmes 3, 5 and 6; and that the conservation and biodiversity mandates are interlinked and interdependent.

7.2.5.1 Concurrent functions of biodiversity and conservation

In addition to national legislation, some of South Africa's nine provinces have their own provincial biodiversity legislation, as nature conservation is a concurrent function of national and provincial government in terms of the Constitution. Provincial laws contain some regulatory provisions on similar issues to those governed by national legislation. This sometimes leads to conflict and confusion, especially with the issuing of permits. There is also the problem of concurrent jurisdiction with provincial and national legislation, which results in ineffective enforcement of biodiversity and conservation legislation.

Functional areas of concurrent national and provincial legislative competence include environmental management, pollution control, soil conservation, nature conservation (excluding national parks, national botanical gardens and marine resources) and regional planning and development.

The wide range of legislation dealing with various aspects of biodiversity, including various types of protected areas, has resulted in a relatively high number of state departments and agencies being responsible for managing biodiversity within protected areas, and across the landscape and seascape outside the protected area network.

In terms of the conservation mandate, the Portfolio Committee interrogated the role and responsibilities of the Department, Isimangaliso and SANParks in terms of the management of the Conservation Estate; t he targets set for the expansion of the conservation estate and the challenges in this regard, mostly due to lack of resources; and the challenges associated with the management of Transfrontier Conservation Areas.

7.2.5.2 Target of 17 per cent for land under conservation by 2020

The Portfolio Committee stressed the importance of South Africa committing itself internationally to reach its 17 per cent target of land under conservation by 2020, but the Portfolio Committee noted that the National Treasury had rejected the Department’s motivation for increased funding to attain this target. The Portfolio Committee was concerned that South African would renege on its international commitment, and this matter due to its international implications should be treated as a priority by the Department and Treasury.

In terms of Rhino Management, the Portfolio Committee deliberated on the statistics and alarming increase in rhino poaching incidents; the establishment of the National Wildlife Information Management Unit; The impact of tightening the permitting regime; the statistics associated with arrests and convictions and the challenges in this regard, especially where foreign nationals are involved; the progress in amendment of the legislation to enforce disclosure on rhino horn stockpiles; the management plan developed for white rhinos in terms of the NEM Biodiversity Act; the report and recommendations of the Rhino Issue Manager; the interventions of SANParks related to surveillance, intelligence and the vetting of rangers and managers potentially involved in Rhino poaching; the progress made with the investigation into re-establishment of the border fence between South Africa and Mozambique; the progress made with regards to memorandae of agreement with neighbouring countries, major user countries and other African Countries; and the Outcomes of CITES COP 16; and the implications thereof on the management of the rhino population.

In terms of other Biodiversity matters, the Portfolio Committee raised questions on the BioGIS system of SANBI and its application in planning, decision-making and policy formulation; the outcomes of the hunting Indaba; the National Biodiversity Assessment Report and its integration into the 2012 South African Environmental Outlook Report; the role that SANBI plays in the implementation of the Biodiversity Sector Skills Plan and the Jobs Fund, especially the Groen Sebenza programme; and the appointment of SANBI as the national implementing agent of the Adaptation Fund.

In response to the input on Programme 5, the Portfolio Committee recommended that:

· The Department expedite the conclusion of MOUs with all our neighbours and the major user countries;

· The Department expedite the plans in terms of the Rhino Horn stockpiles and the inventory in this regard;

· The Department publish the Rhino Issue Manager’s report and start engaging the recommendations;

· The Department expedite the strategy on discussion of and the investigation into restricted and controlled trade in rhino horn;

· The Department integrate the BioGIS into the sector wide Enterprise GIS tool under development;

· The Department call on the assistance of the Portfolio Committee to engage the National Prosecution Authority in order to increase the profile and prioritisation of wildlife crime; and

· The Department profile the success stories of the hunting industry, as a key contributor to the wildlife economy, which in turn is a contributor to transitioning to a green economy.

After its deliberations on Programme 5, the Portfolio Committee resolved to:

· Support the key performance indicators and targets set for Programme 5 in the Department’s Strategic Plan and APP for 2013-2014;

· Support the key performance indicators and targets set for the SANBI in its Strategic Plan and APP for 2013-2014;

· Support the key performance indicators and targets set for SANParks in its Strategic Plan and APP for 2013-2014;

· Support the key performance indicators and targets set for Isimangaliso in its Strategic Plan and APP for 2013-2014;

· Require the Department to submit to the Portfolio Committee, in three months time: a costed and time bound action plan in terms of the Rhino Horn Stockpile issue; the entering into MOUs with neighbouring countries, key Africa states and the key user states; the implementation of adopted recommendations of the Rhino Issue Manager’s Report of 2012; and the strategy and communication plan into the investigation of restricted and controlled trade in Rhino Horn in six months time;

· Further engage the Department and SANBI on: the approach to the Transformation of the Biodiversity sector; the implementation of the Adaptation Fund; the National Biodiversity Assessment of 2012; and SANBI’s Bio GIS; and

· Further engage the Department, SANParks and Isimangaliso on the strategy for expansion of the Conservation Estate; the relation between mining and protected areas; the entrepreneurs programme of Isimangaliso; and the management of and challenges associated with Transfrontier Conservation Areas.

7.2.5.3 Environmental Programmes (Programme 6)

The Portfolio Committee in deliberating on Programme 6 focused on the key performance indicators and targets set for the creation of jobs through environmental programmes and the value-added industries associated with it; the training and skilling of beneficiaries of the job creations programmes; with due attention being paid to the following programmes: the management and control of alien invasive species; the management of veld fires; the development of environmental infrastructure; eco-factories; eco-towns and greening; the wildlife economy; and on the Working on Wetlands and Working on Waste programmes.

Other important aspects deliberated on by the Portfolio Committee were the departmental approach to coordinating the Environment and Cultural sector of the Expanded Public Work Programme; the partnerships with Isimangaliso, SANParks and SANBI in implementation of the above programmes; the partnership with SANBI in terms of research and planning related to Biosecurity; and the partnership with SAWS in terms of the early warning system associated with veld fire risk.

After substantially engaging on Programme 6, the Portfolio Committee resolved to:

· Support the key performance indicators and targets set for Programme 6 in the Department’s Strategic Plan and APP for 2013-2014; and

· Engage the Department further on the job creation programmes, included, but not limited to, the Expanded Public Works Programme; the Biosecurity programme; and the Ecofactories.

7.2.5.4 Chemicals and Waste Management (Programme 7)

The Portfolio Committee in engaging on Programme 7 focused on the amended key performance indicators and targets set for the national integrated waste management strategy; improving the delivery of waste services; Reduction of waste to landfill for various priority waste streams; improved management and environmental performance of landfill sites; the Waste Information Management System; contaminated land; and implementation of Multilateral Environmental Agreements associated with the management of Chemicals.

Other issues deliberated upon in relation to Programme 7 were the:

· Collaboration with the Department of Cooperative Governance and Traditional Affairs on Waste Management Services;

· Approach to management of waste streams through Industry Waste Management Plans and the inadequacies of the legislative framework in this regard; and

· The mandate of the Department in terms of contaminated land and its relevance in terms of concerns raised by the Portfolio Committee on the legislative and policy framework on the management of soil towards sustainability.

The Portfolio Committee in deliberating on the input by the Department resolved to:

· Support the key performance indicators and targets set for Programme 7 in the Department Strategic Plan and APP for 2013-2014; and

· Engage the Department further on the implementation of the Integrated Waste Management Strategy; amendments required to the NEM Waste Act; and the approach to priority waste streams.

8. Conclusion

The Portfolio Committee concluded its deliberation on the Strategic Plans, Annual Performance Plans and budgets of the Department, Isimangaliso, SANBI, SANParks and SAWS and resolved to:

· Support the plans as tabled and noted with appreciation how these plans are aligned with and respond to the National Development Plan and international obligations such as the Millennium Development Goals;

· Whilst concerned about the inadequacy of the budget allocation to the Department and the entities and the implications this have for the Department (and Entities) in delivering on their mandates and against the country’s international obligations, appreciates the constraints within the fiscal environment and request the Treasury to reconsider the areas that are not sufficiently funded during the next Medium Term Expenditure Framework budget allocation process; and

· Support the approval of Budget Vote 30.

Report to be considered.