ATC090218: Report Budget and Strategic Plan on the 2008 – 2011 Budget Vote 5 of the Estimates of National Expenditure

Public Works and Infrastructure

Report of the Portfolio Committee on Public Works on the Budget and Strategic Plan of the Department of Public Works and its Entities on the 2008 – 2011 Budget Vote 5 of the Estimates of National Expenditure,

 

This is a report on the Department of Public Works and its Entities on their Strategic Plans and the Budget Vote, Vote 5 of the Estimates of the National Expenditure

 

The Department: Department of Public Works

The Entities: Independent Development Trust (IDT), Agrément South Africa (Agrémo), Construction Industry Development Board (CIDB) and Council for the Built Environment (CBE)

 

Background

 

The Constitution of the Republic of South Africa mandates Parliament through Committees to exercise oversight over the Executive, pass legislation, monitor the implementation of such legislation and encourage public participation.

 

Guided by the Constitution and Rules of Parliament, the Committee has to scrutinise the Strategic Plan documents of the Department and its Entities in order to see if the funds requested are aligned to the objectives as stated in the respective strategic plan documents.

 

Introduction

 

The Report gives an analysis of the 2008-2011 Strategic Plans of the National Department of Public Works (NDPW) Independent Development Trust (IDT), Construction Industry Development Board (CIDB), Council for the Built Environment (CBE) and Agrément South Africa.

 

The briefing by the NDPW and interrogation by the Committee focused on the responsibilities of the NDPW as set out hereunder:

·                     Provision and management of land and accommodation to national departments and public institutions;

·                     Leadership given to the construction and property industry by the department;

·                     Co-ordination, monitoring and the implementation of the EPWP;

·                     Adherence and conformity to the requirements of the Public Finance Management Act of 1999 (PFMA) and Division of Revenue Act (DORA);

·                     Support given to entities by the Department; and

·                     The role and the responsiveness of entities to their assigned mandates.

 

1.         Strategic Plan and Budget of the Department of Public Works

 

a)       The DPW’s strategic plan is premised on the Government’s pledge in the

                  State of the Nation Address “to work together to realise the core aspiration of       our people to attain a better life for all”;

 

b)       The DPW is also responding to the President’s call for “business unusual” by

sketching out the department’s response and role towards the achievement of  the Government’s set out objectives.

 

1.1  Departmental programmes and budget allocations

 

a)       Programme 1: Administration: Over the MTEF period the budget of the

      Administration programme rise by an average of 9,2% mainly as a result of the department’s relocation costs as well as additional allocations for accommodation costs;

 

b)       Programme 2: Provision of land and accommodation: Over the MTEF

   period the budget of the programme rise by an average of 11% as a result of growth in the allocations for Provincial property rates, Asset management projects and Augmentation of the PMTE;                    

 

c)       Programme 3: National Public Works Programme: The budget of programme

   3 grows by an average of 19,1% over the MTEF period owing mainly to sizeable increases in the budget of the EPWP, which grows by R30 million 2008/09, R50 million 2009/10 and  R80 million 2010/11;

 

d)                                                                                           Programme 4: Auxiliary and associated services: This programme sees a

   modest increase of 5, 9% mainly to cater for inflation. From R25, 9 million in   2008/09 to R28,9 million in 2010/11

 

1.2        The Department plans to allocate funds to the following major infrastructure projects

 

a)       A number of assets will be acquired/upgraded for the Re Kgabisa Tshwane project which aims to keep National Government head offices within the inner city of Pretoria;

b)       Around R1billion will be spent on the upgrading, maintenance and improvement of immovable assets of the state;

c)       The Border Control Operational Co-ordinating Committee (BCOCC’s), funds to be utilised in improving the border post facilities in part to facilitate the preparations for the 2009 FIFA Confiderations Cup and 2010 FIFA World Cup.

 

The DPW’s budget for the 2007/08 financial year equals R3, 7 billion and for the 2008/09 financial year equals R4, 1 billion

 

2.         Business Plans and Budgets of the Entities reporting to the Department of Public Works

 

2.1         Construction Industry Development Board (CIDB)

 

a)       The CIDB mandate is to provide leadership and an enabling regulatory and development framework for:

b)       A total construction delivery capability to achieve South Africa’s economic and social growth

c)       Sustainable growth and empowerment of historically disadvantaged

d)       Global standards of performance and value to clients and society

 

2.1.1     2008/09 Budget of the CIDB

 

In the 2007/08 financial year the CIDB spent as follows:

 

a)       In its total revenue of R 67 890.00 received from registers, transfer payments and balance carried forward from 2006/07; it had a total expenditure or R 67 890 which was spent on Personnel, Administration, Capital and Operations;

 

b)       In the 2008/09 financial year, the CIDB has a planned budget of R101 598.00;

 

c)       The R101 598.00 budget will be divided amongst the organisation programmes which are: Corporate Services, Growth & Contractor development, Industry performance, procurement delivery, registrars and the Office of the CEO.

 

2.2       Council for the Built Environment (CBE)

 

a)       The Vision of the CBE is to provide sustainable built environment professions, serving public and national interest;

b)       The CBE mission is through leadership of the built environment professions, facilitate integrated development, whilst promoting efficiency and effectiveness;

c)       The Values of the CBE are Integrity, Transparency, Excellence and Innovation.

 

2.2.1     Strategic Objectives of the CBE for the 2008/09 Financial Year

 

a)       Improve stakeholder relations and create partnerships to improve service delivery;

b)       Intervene in improving the performance of the skills delivery pipeline;

c)       Transform and consolidate the regulatory, institutional and structural framework regulating the functioning of the CBE and the professional councils;

d)       Ensure an effective and efficient public protection regime;

e)       Ensure the alignment of the activities of the CBE and the CBE professional councils with national imperative and initiatives.

 

3.      Independent Development Trust (IDT)

 

a)       The principal purpose of the IDT is to operate as an anti-poverty and redistributive agency, which invests in finding innovative new ways of meeting the core challenges of poverty and inequality and expends its capital base in the pursuit of workable strategies and programmes that can be shared and replicated;

 

b)       The Vision of the IDT is to be the leading knowledge-based development agency;

 

c)       The Mission of the IDT is to see to it, together with strategic partners, to enable poor communities to access resources, recognise and unlock their own potential and continuously improve their quality of life;

 

d)       What still remains relevant to the IDT’s mandate is its ability to have demonstrated the capacity to ‘reinvent’ itself in response to the environment.

 

1)                   In 1998 the IDT amended its Deed of Trust

2)                   In October 2000 it supported government in co-ordinating management of the  (Integrated Sustainable Rural Development Programmes) ISRDP

3)                   Supported the (Accelerated and Shared Growth Initiative for South Africa) ASGISA initiative of the Presidency

 

3.1        Strategic Objectives of the IDT for the 2008/09 Financial Year

 

a)       To provide social infrastructure, this enhances access to basic services to poor and marginalised communities. A primary focus will be women and their dependants as primary beneficiaries;

b)       To create opportunities which promote sustainable livelihoods in poor and marginalised communities. A primary focus will be on opportunities for women and women’s groups;

c)       To enhance the institutional capacity of community-based structures and government, in poor and marginalised communities. A primary focus will be on local government and organisations with women as their primary participants;

d)       To achieve service delivery excellence and the efficient and effective utilisation of resources.

 

4.         Agrément South Africa

 

a)       The Agrément South Africa operates under a ministerial delegation of authority from the Minister of Public Works;

b)       It provides assurance by carrying out testing, evaluation, confirmation and certification of fitness for purpose of non-standard construction products and systems;

c)       The Vision of the Agrément South Africa is to be a world class technical Assessment Agency;

d)       The mission is to promote the government’s objectives of economic development, good governance and raising living standards and prosperity by undertaking technical assessment and certification of non-standard construction products in South Africa.

 

4.1        Budget allocated to the Agrément South Africa

 

a)       Agrément South Africa has budget for R 8 920 000.00 in the 2008/09 financial year which will be spent on manpower or human capital costs, technical assessments, operational, quality monitoring, marketing equipment & research into technical criteria and CSIR infrastructure costs including rental, depreciation and management services

 

5.         Recommendations

 

a)       The Committee recommends that in future all the entities strategic objectives be aligned with their budget requests;

 

b)       The entities need to ensure that they submit their business plans to Parliament at least two weeks before their budget hearings;

 

6.         Conclusion

 

The Department of Public Works, Construction Industry Development Board (CIDB) Agrément South Africa, Independent Development Trust (IDT) and the Council for the Built Environment (CBE) budgets are endorsed by the Committee.

 

Report to be considered.