ATC100416: Report 2010/11 Budget Vote 19 And Strategic Plan For 2010-2014 Of The Department Of Sport And Recreation

Sport, Arts and Culture

REPORT OF THE PORTFOLIO COMMITTEE ON SPORT AND RECREATION ON THE 2010/11 BUDGET VOTE 19 AND STRATEGIC PLAN FOR 2010-2014 OF THE DEPARTMENT OF SPORT AND RECREATION, DATED 16 APRIL 2010

 

 

1.         Background and Overview

The Portfolio Committee on Sport and Recreation having considered the directive of the National Assembly (NA) to consider and report on the 2010/11 Budget of the Department of Sport and Recreation tabled by the Minister for Sport and Recreation in terms of the requirements of the Public Finance Management, Act 32 of 2000 reports as follows:

 

2.         Introduction

 

2.1 In compliance with the NA referral, the Portfolio Committee held budget vote hearings on the 9 March 2010 with the Department of Sport and Recreation to consider the referred budget and strategic plan.The statutory bodies and other entities that formed part of the budget hearings included the following:

 

o        South African Institute for Drug-Free Sport (SAIDS), represented by the Chief Financial Officer, Mr Khalid Galant

o        Sports Trust, represented by the Sports Development Officer, Ms Anita Mathews

o        South African Rugby Union, President, Mr Oregan Hoskins

o        South African Sport  Confederation and Olympic Committee, represented by the President-Mr Gideon Sam

o        Cricket South Africa, represented by the General Manager, Mr Gerald Majola

           

 

            2.2 Also in attendance:

 

Hon Gert Oosthuizen, Deputy Minister of Sport and Recreation, Mr Vernie Petersen, Director General of Department of Sport and Recreation (SRSA); Mr M Matlala; Chief Financial Officer of SRSA; Ms LuluSizani, Chief Director of Corporate Services; Ms Noma Kotelo, Director for Siyadla Programme (SRSA) Ms Kelly Mkhonto, Chief Director for Mass Participation Programme; Dr  V van der Spuy, Chief Director for Strategic and Executive Support of SRSA, Mr Lichakane Phori, Committee Secretary; Ms S Bawa, Committee Assistant; Mr Mphumza Mdekazi, Researcher for the Committee; Ms Zukiswa Jara, Executive Secretary to the Chairperson.

 

 

3.         Overview by the Hon Deputy Minister of Sport and Recreation

 

3.1 Hon Deputy Minister of Sport and Recreation, Mr Gert Oosthuizen attended the meeting on behalf of the Minister of Sport and Recreation, Hon Dr Rev M Stofile who could not attend due to other commitments of the Executive. Hon G Oosthuizen tendered the Minister’s apology to the Committee and explained that the Department of Sport and Recreation had formulated a Strategic Plan for 2010-2014 which underpins the strategic objectives of the department. He highlighted the three major focus areas of mass participation, sport development and high performance.

 

3.2 He further explained that the budget for the year under review had been informed by the strategic objectives set out in the Strategic Plan to be presented to the Portfolio Committee by the Director General, Mr Vernie Petersen. The Deputy Minister alluded that the department was about to complete the final draft of the White Paper on Sport and Recreation in South Africa. Once the final draft has been completed, the White Paper would be submitted to Parliament for comment and approval.

 

3.3 The Deputy Minister informed the Committee that all stadiums for the 2010 FIFA South Africa World Cup had been completed in line with deadlines set by FIFA. He indicated that the 2010 Government Unit regularly submitted progress reports to the Ministerial Committee on 2010 FIFA World Cup of which the Minster of Sport and Recreation was a member. He emphasised that the 2010 Government Unit was accountable to the Presidency and therefore provided regular progress reports on the 2010 FIFA World Cup.

 

3.4 The Deputy Minister pointed out that the economy of the country had also been affected by the global economic downturn which had resulted in most departmental budgets being dramatically reduced by the fiscus. Accordingly, the Department of Sport and Recreation also received a cut in its budget for the year under review. He thanked the Committee for the opportunity given to the department to present its Strategic Plans for 2010-2014 and Budget for 2010/2011.

 

4.         Presentation on the Strategic Plan 2010-2014 of the Department of Sport and Recreation

4.1 The Director General of the Department of Sport and Recreation, Mr Vernie Petersen led the presentation of the Department’s Strategic Plan for 2010-2014 to the Portfolio Committee. The presentation focused on the three key strategic programmes of the Department namely, Mass Participation, Sports Development and High Performance.  

 

5.         Key Strategic Focus Areas: 2010-2014

 

            5.1 Mass Participation Programme

5.1.1 Mr Petersen stated that Sport and Recreation South Africa (SRSA) should continue to pursue initiatives that increase the number of participants in Sport and Recreation. The Department has to broaden its focus to the area of recreation and strengthen its relationship with the Department of basic Education in the delivery of the school sports programme. He further indicated that the department intends to increase the mass participation base through effective sports promotion programmes and intensive media campaigns.

 

5.2 Sports Development

5.2.1 Mr Petersen indicated that the Department intends to focus on facilitating the transition from mass based programmes to high performance through coordinating and monitoring the important areas of talent identification and development as well as the delivery of scientific support to national development athletes. The development programmes would be supported by an effective national athlete tracking system. Furthermore the Department intends to roll out a national sport facilities plan. The sport facilities plan would enable the department to monitor the use of facilities and ensure proper maintenance thereof.

 

            5.3 High Performance

5.3.1 Mr Petersen informed the Committee that the Department intends to improve working relations with its key strategic partner in nourishing talent in high performance sport in our country. ThereforeSascoc becomes the relevant strategic partner of the department since its mandate is to deliver in the focus area of high performance. The department intends to improve our country’s international ranking through adequate scientific support to our athletes.

 

5.3.2 He stated that the Department realised that the above strategic focus areas needed to be supported by strong regulatory framework, adequate financial resources, reliable sports information and functional sports academies. The Department will continue to work closely with departments such as Basic Education, Tourism and Health in order to further the spirit of corporative governance. In addition, the Department intends to intensify its coordination efforts on the 2010 government guarantees to ensure the hosting of successful 2010 FIFA World Cup. The department further intends to finalise the White Paper on sport and recreation that will set the tone for the blueprint for sports in our country. The key focus of this policy document would be transformation of sport and promotion of excellence in sport.

 

6.         Budget Allocations and Variances in Expenditure: 2010/2011

The Committee was informed that the 2010/11 Sport and Recreation Budget is essentially divided into six programmes namely:

 

Administration, Sport Support Services, Mass participation, International Liaison and Events, Facilitites Coordination and 2010 FIFA World Cup Unit.

 

6.1 Programme 1: Administration

6.1.1 The programme has been allocated R 87.8 million, which represents an average nominal increase of 3.91 per cent when compared to the 2009/10 financial year. Expenditure has increased from R 44.4 million in 2006/07 to R84.5 million in 2009/10, at an average annual rate of 24 per cent, mainly due to the merger of the former South African Sports Commission with Sport and Recreation South Africa in 2007/08.

 

Programme	Budget							NominalRandchange		RealRandchange		Nominal % change		Real % change
R million	2009/10	2010/11		2011/12		2012/13		2009/10 - 2010/11				2009/10 - 2010/11
Administration	84.5	87.8		97.6		100.2		3.3		-  2.2		3.91 per cent		-2.62 per cent
Sport Support Services	124.2	102.1		130.3		135.2		-  22.1		-  28.5		-17.79 per cent		-22.96 per cent
Mass Participation	460.0	467.0		499.0		523.0		7.0		-  22.3		1.52 per cent		-4.85 per cent
International Liaison and Events	9.2	23.3		25.3		26.8		14.1		12.6		153.26 per cent		137.36 per cent
Facilities Coordination	6.4	6.6		8.3		8.6		0.2		-  0.2		3.12 per cent		-3.35 per cent
2010 FIFA World Cup Unit	2 199.5	558.7
TOTAL	684.3	1 245.5	760.5		793.8		561.2		483.0		82.01 per cent		70.58 per cent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.2 Programme 2: Support Services Programme

6.2.1 Sport Support Services programme has been allocated 102.1 million, which represent an average nominal increase of -17.79 per cent when compared to the 2009/10 financial year. The reason is because this programme increased substantially from R 81.3 million in 2006/07 to R 124.2 million in 2009/10, at an average annual rate of 15.1 per cent. The 42.7 per cent growth in spending in 2009/10 was due to the rollover of R 15 million from 2008/09 for the training of volunteers for the 2010 FIFA World Cup. The Scientific Support sub-programme allocation is projected to grow at a much slower average annual rate of 24.3 per cent over the medium term, due to increased expenditure on consultants to train more athletes through the Sport Science Institute in preparation for the 2012 Olympics and for research on medical and scientific interventions.

 

 

6.3 Programme 3: Mass Participation Programme

6.3.1 Mass participation programme grew at an average annual rate of 45.1 per cent from 2006/07 to 2009/10, mainly due to the expansion of the mass participation grant and additions to the conditional grant for school sport projects in 2006/07 and 2010 legacy projects in 2007/08. This, together with additions for mass mobilisation and the legacy project, increased the budget for the Community Mass Participation sub-programme by an average annual rate of 50.5 per cent between 2006/07 and 2009/10.

 

6.3.2 Expenditure in the sub-programme is expected to grow at the slower average annual rate of 5.4 per cent over the medium term, due to the completion of the 2010 mass mobilization programme. School Sport sub-programme budget decrease at an average annual rate of 9.9 per cent over the MTEF period. This is because the costs of accommodation and transport for learners in national competitions, previously carried by the national department, will in future be shared by provincial departments. This shift is evident in the decline in projected expenditure on venues and facilities from R 25.5 million in 2009/10 to R 4 million in 2010/11 and on transport provided from R 7 million in 2009/10 to R 4.5 million in 2010/11. The Portfolio Committee will be

 

            6.4 Programme 4: International liaison and events

            6.4.1 This programme is aimed at facilitating and negotiating government to government agreements and the ensuing programmes of cooperation. Spending in this programme is projected to grow to R 26.8 million at an average annual rate of 42.8 per cent. This is due to the addition of promoting sport tourism to sub-programme’s international sport commitments. This entails organising hospitality centres during major events such as the Olympics, Paralympics and All Africa Games as well as the promotional activities at the 2010 FIFA World Cup.

 

            6.5: Programme 5: 2010 FIFA World Cup South Africa: 2010 Government Unit     

6.5.1 The Department reported that during the 2008/09 financial year, value added tax ticket refunds to FIFA amounted to R 15 million for the 2009 FIFA Confederations Cup and are estimated at R 40 million for the 2010 FIFA World Cup.

 

7.         Public Hearing on the Budget Vote

7.1 Cricket South Africa: The submission on behalf of Cricket South Africa was submitted by the General Manager, Mr Gerald Majola. He stated that Cricket was a mass participation sport and more funding was focusing on disabled and women cricket development. He expressed concern that the strategic plan of the department was not supported by the business plans. The monies allocated through the department were inadequate and CSA had since secured a major sponsorship to augment the allocations.

 

7.2 South African Rugby Union: The submissions during the hearing were made by SA Rugby President, Mr Oregan Hoskins. SA Rugby received an allocation amounting to R100 000 annually from the department. Nonetheless, Rugby was still waiting for the transfer of the allocations into its coffers and the delays were hampering development of rugby in the rural areas. Mr Hoskins submitted that SA Rugby had no working relationship with the Department of Sport and Recreation and as such needed to create a better working relationship.

 

7.3 Sports Trust:  During the hearing, the Sports Trust was represented by Ms Anita Mathews. She highlighted different projects that have been undertaken by the Trust. She indicated that the Trust was satisfied with the allocations made towards it by the department. However Sports Trust urged the Department to re-direct some of the funds from the Mass Participation Programme into their coffers since the Trust had a better track record of providing basic facilities and sports equipment in disadvantaged communities.

 

7.4 South African Sport and Olympic Committee: The allocations made towards support for high performance sport were grossly insufficient compared with other countries competing in the international Olympics for team preparation. SASCOC also raised concern over the delays in the transfer of allocations during the current financial year. The Confederation expressed its concern over the fact that the Department was transferring funds only after the sports events had already taken place. The Confederation further informed the Committee that sports kits and equipment in most provinces were being bought and stored without being given to sports people to utilise them.

 

7.5 South African Institute for Drug Free Sport: The Institute for Drug Free Sport was represented at the hearings by its Chief Financial Officer, Mr Khalid Galant. He indicated that the Institute was satisfied with the allocations made towards the Institute by the department. The budget allocated to the Institute had increased tremendously by about 70% in comparison to the previous financial year. However there’s still a shortfall as the need for more research and drug testing had increased substantially.

 

 

8.         Committee Concerns and Challenges

 

            8.1 The Committee raised serious concern over the fact that the strategic plan of the department was not underpinned by the measurable business plans.

 

            8.2 The Committee expressed concern that the department had no monitoring mechanism to ensure that federations and other sports bodies were implementing the resolutions of the “Sports Indaba”.

 

8.3 The Committee further expressed the serious concern over the lack of consultation and cooperation between the Departments of Basic Education and Sport and Recreation in the implementation of a better school sports programme.

 

8.4 The Committee was concerned that the 2010 Government Unit was not accountable to Parliament and its reporting lines were not clearly set out.

 

8.5 The Committee further expressed its concerns around the lack of readiness of some of the base camps identified as training facilities for the 2010 FIFA World Cup. The Committee warned that any sloppy preparations in regard to base camps could have tremendous reputational damage to our country. Therefore the R27 million allocated by the National Treasury for improvement of standards at the base camps must be used for the desired purpose.

 

8.6 The Committee expressed its concern over the dispute between the Free State Rugby Union and City of Mangaung over the use of the Free State Stadium ahead of the 2010 FIFA World Cup. Any further rugby games on the pitch could jeopardise the chances of the pitch to grow in line with the FIFA requirement s and standards.

 

8.7 The Committee further expressed concern over the allocations given to the LoveLife programme. The R27 million allocations to LoveLife were unjustified since no tangible evidence existed to support the view that such allocations were beneficial towards sport development and the fight against AIDS and HIV amongst our youth.

 

8.8 The Department continued to be faced with the challenge of a disjuncture between its mandate and what it actually does on the ground in the delivery of sports and recreation services to the country.

 

8.9 The Department also suffered the problem of low staff morale which affected the organisational culture and affected its capacity to deliver on its mandate.

 

8.10 The Committee again raised the issue of royalties which had become an insurmountable problem as it continued to be a matter emphasised by the Auditor General. The Committee expressed serious concern regarding the lack of corrective measures on matters raised by the office of the Auditor General.

 

 

 

 

9.         Committee’s Deliberations and Recommendations

 

Having deliberated on the 2010/11 Budget Vote 19, the Portfolio Committee on Sport and Recreation recommends as follows:  

9.1       The Department of Sport and Recreation should assist municipalities in the Province to improve critical skills shortages and the filling of vacant positions through sports tourism and programmes aimed at producing sports facilities managers.

9.2       The quality of data compilation with regard to service delivery in the arena of sport development in the Provinces should be improved by the Department of Sport and Recreation.

9.3       The Department of Sport and Recreation should provide a comprehensive report on the allocations made through LoveLife funding for the sports clubs and organisations dedicated to development of sport at grassroots and rural areas.

9.4       The Department should continue to engage with the Department of Basic Education in an endeavour to revive and improve the standard of sport in public schools. The Committee expressed serious concern over the amount of R29 Million allocated for school sport during the year under review relative to the total number of schools in disadvantaged and rural communities.

9.5     The Director General for Sport and Recreation should table quarterly progress reports to Parliament in respect of the departmental performance in the various Provinces which were beneficiaries of the DORA Grant.

9.6     The Committee expressed its displeasure at the larger fiscal allocations to richer provinces such as Gauteng and Western Cape in comparison to other provinces.

9.7     The Committee recommended that the Department needed to find mechanism to resolve the issue of uncollected royalties owed to the department by other entities. The department needed to find common ground with the national treasury and the office of the Auditor General on how to resolve this matter in order to prevent another audit query during the next financial year.

9.8     The Department should consider increasing the allocations made for the support of high performance sport to assist our team of athletes to perform better in the international arena.

9.9     The R9 million allocated to SASCOC for team preparation for the forthcoming 2012 London Olympics was inadequate and needed to be transferred without any delays.

9.10   The Department should integrate the resolutions of the “Sports Indaba” into their strategic objectives and closely monitor the implementation thereof by the sports bodies and federations.

9.11   The Department needed to address the high staff turnover and low staff morale within its ranks and reward good performance. The lack of permanent appointments at higher level within the Department was a major challenge which called for urgent corrective measures.

9.12 The Committee strongly recommended that a levy of one rand should be collected from every ticket sold during sport events and levies saved towards sport development programmes to emulate countries such as Canada and Australia.

9.13      The 2010 Government Unit within the Department should address the issue of readiness of base camps for the visiting teams since lack of suitable training facilities could harm our reputation as host country for the 2010 FIFA World Cup. Furthermore, the Department was required to submit a comprehensive report on the readiness of base camps for participating teams of the 2010 FIFA World Cup. The Committee had observed the dramatic decline in the budget allocations for the special project of the 2010 FIFA World Cup since most of the 2010 FIFA World Cup stadiums had been completed in line with the deadlines set out by FIFA.

 

10.        Conclusion

 

Having considered the budget vote and strategic plan of the Department of Sport and Recreation, the Portfolio Committee recommends that the House endorse the 2010/11 Budget Vote of the Department of Sport and Recreation.

 

 

Report to be considered