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Economic Development Department 3 rd Quarterly Report. Presentation to the Portfolio Committee on Economic Development 08 February 2012. Presentation. 3 rd Quarter performance Economic Policy Development Economic Planning and Coordination Economic Development and Social Dialogue - PowerPoint PPT Presentation
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Economic Development Department 3rd Quarterly Report
Presentation to the
Portfolio Committee on Economic Development
08 February 2012
Presentation
• 3rd Quarter performance– Economic Policy Development– Economic Planning and Coordination– Economic Development and Social Dialogue
• Progress against ENE targets
• Human Resources
• Financial performance
• Concluding remarks
2
Economic Policy Development (1)
• Mid-term report on Employment and Inclusive Growth submitted for inclusion in January 2012 Cabinet Lekgotla discussions:– Review of progress in achieving targeted outcomes;– Assessment of policy successes and shortfalls; and– Prospects and actions to mitigate the risks.
• Survey on employment reporting for state departments and agencies conducted:– System developed in collaboration with DPME and the ILO;– Survey demonstrates the need to improve systems for
assessing impact of government actions on employment.
3
Economic Policy Development (2)
• Policy Platforms
– Proposed multi-pronged Strategy on Youth Unemployment work shopped on 23 November 2011
– Developed draft discussion document - Addressing Inequality. A workshop will be held in the 4th quarter.
– Asset ownership and inequality - workshop held with Friedrich Ebert Stiftung and Studies in Poverty and Inequality Institute.
– Infrastructure planning (PICC) engagement with McKinsey
4
Economic Planning andCoordination (1)
• New Growth Path - engagements with provincial and local government:– KZN Regional and Local Economic Development;– Limpopo Department of Economic Development, Environment
and Tourism Strategic Planning;– Deputy President’s Anti-Poverty Campaign visit to Blouberg
Local Municipality in Limpopo province;– Western Cape Department of Economic Development and
Tourism;– Free State Local Economic Development;– Participates in DRDLR-led initiative focusing on prioritising high
impact projects in 22 rural districts;– Presidential Intervention in Diyatalawa and Makgolokoeng
municipalities in Free State province;
5
Economic Planning andCoordination (2)• Sector plans
– This function now resides with the Economic Policy and Development Branch – see slide p.4 referencing multipronged Youth Unemployment Strategy proposals.
• Spatial plans– Employment Creation Fund approved funding for Rise Up
Cooperative Bakery Holdings. Pilot in Matzikama-Dooringbaai municipality;
– Fisheries unit of DAFF approved aquaculture EPWP project for Doringbaai - MOU initiated;
– Spatial economic planning framework and guidelines are underdevelopment in consultation with CSIR;
– Various projects in the Eastern Cape and Western Cape.
6
Economic Planning andCoordination (3)• Green Economy Strategy and Interventions
– Green Jobs report submitted through the IDC;– Engagement with DOE on REIPP program;– Engagement with NT, DRDLR, DPE, DOE on rollout of Solar
Water Heaters;– Engagement with Blue IQ to discuss establishment of provincial
green economy unit focussing on local economic development and SMME development; and
– Workshop with COSATU and Cape Business Chamber.
• Prepared concept paper on harnessing partnerships to promote agricultural development for small and medium scale black farmers.
7
Economic Planning andCoordination (4)• Special financing
– A total of R2 361 914 000 was disbursed during this quarter:• IDC Distress fund: R184.4 million• UIF Bond: R343.4 million• Transfers to SAMAF: R22.5 million• Transfers to IDC: R17 million• IDC disbursements: R1.8 billion
• Leveraging state expenditure and procurement– SABS technical specifications finalised and published for public
comment.
• Engagements with DFIs and ERBs– Governance – meeting to discuss quarterly reports;– Small business financing merger – reported to PC on 1 February
2012.
8
Economic Developmentand Dialogue (1)• Social dialogue and capacity building engagements:
– Training Layoff Scheme and Distress Funding - Implementation of Framework Agreement presentations in KZN, EC, NC and Limpopo;
– Meeting with Community Constituency to discuss joint working programme with stakeholders; and
– Turn-around strategy for Dimbaza Foundry - presentation in EC.
• Economic Development Agreements– Local Procurement Accord signed on 31 October 2011; and– Green Economy Accord signed on 17 November 2011.
• Organised labour capacity building– 4 workshops held in KZN, EC, NC and Limpopo.
9
Economic Developmentand Dialogue (2)
• Engagements on productivity– Workshop with ILO, Proudly South Africa, Organised Labour and
Communities.
• Interventions to create or save jobs– Meeting with Clothing Bargaining Council to discuss possible
projects and interventions; and– Interactions with Ceppwawu and COSATU and the employer to
discuss interventions in light of proposed job cuts in the paper sector.
• Engagements with stakeholders– Participation in panel discussion on job creation at Fedusa
Congress.
10
Economic Developmentand Dialogue (3)
• Implementation of Framework Agreements and Social Pacts– Presentation at ILO / Labour Jobs Pact workshop
ENE targets for 2011/12 (1 of 2)
12
Indicator 3rd Q target
3rd Q actual
Annual target
Number of reports on the implementation of the NGP 1 1 4
Number of reports on interventions to reduce cost drivers - - 2
Number of policy and analytical papers on economic policy challenges 3 3 12
Number of engagements with provincial and/or local government 2 10 10
Number of strategic engagements with development finance institutions and/or economic regulatory bodies
- - 12
Value of special financing facilitated for small businesses, targeted growth sectors and companies in distress
R1.25bn R2.362bn R5bn
ENE targets for 2011/12(2 of 2)
13
Indicator 3rd Q target
3rd Q actual
Annual target
Number of sector plans produced or reviewed 2 0 8
Number of spatial plans produced or reviewed 3 4 12
Number of interventions in relation to promoting economic development through leveraging state expenditure and procurement
3 4 12
Number of reports on the implementation of the green economy strategy - 1 2
Number of interventions to create or save jobs 1 2 4
Number of policy platforms, social dialogue and capacity building engagements
3 4 10
Number of economic development agreements (sectoral, workplace and national) facilitated with social partners
3 2 10
14
Staff Complement(31/12/2011)Programme # of Funded
Posts# of Posts Filled -
Permanent# of Posts Filled -
ContractsTotal
ADMINISTRATION 62 43 21 64
POLICY DEVELOPMENT
20 5 4 9
PLANNING & COORDINATION
33 9 10 19
SOCIAL DIALOGUE 14 4 4 8
TOTAL 129 61 39 100
% 62% 38%
15
Employment EquityStatistics (31/12/2011)
DesignationWhite Black Disability Sub-Total Total
M F M F M F M F
SMS 5 3 13 8 18 11 29
MMS 2 1 13 22 15 23 38
Level 1-8 0 0 8 24 1 8 24 33
Sub-Total 7 4 34 54 1 41 59 100
TOTAL 11 88 1 100
% 11% 88% 1% 41% 59%
Summary Statistics (31/12/2011)
All Staff Male Female Total %
PERMANENT 24 37 61 61%
CONTRACTS 17 22 39 39%
TOTAL 41 59 100 100%
% 41% 59%
PERSONS WITH DISABILITY = 1%
SMS Members Male Female Total
%of total staff
PERMANENT 15 8 23 23%
CONTRACTS 3 3 6 6%
TOTAL 18 11 29 29%
% of SMS Members
62% 38%
Recruitment
• Strategy and plan in place to recruit relevant and skilled staff by end of the 2011/12 financial year;
• Report monthly progress to EA and DG• Progress in 3rd Quarter
– 11 x Appointments (3 x permanent and 8 x contract)– 7 x terminations (3 x contract expiry, 1 x transfer, 3 x resignations)– 1 x Posts Advertised (Principal Personnel Officer)– Interviews conducted to fill the following positions:
• Economist = 3 posts• Senior Economist = 2 posts• Policy Analyst = 8 posts• Senior Administrative Officer = 1 post• Accounting Clerk = 3 posts• Director : IT = 1 post
17
Financial Performance
Overview of Expenditure
• The information based on December 2011 IYM reports or section 40(4)of PFMA reports;
• Signed by the Accounting Officer and sent to National Treasury;• Total adjusted budget of R 598.3 million for 2011/12 financial year;• Expenditure in the first nine months of 2011/12 is R 449.9 million or
75% of the adjusted appropriation of R 598.3 million;• Spending rate equal to the 75% norm on straight forward projections
where annual total budget is expected to be spent equally through the year.
18
Financial Performance
19
Total Economic Development Department2011/12 YTD EXPENDITURE
Act Act Act 2011/12 Budget
Per Programme QUARTER 3 YTD % Spent Main Adj. Post Adj.
ADMINISTRATION 16,761 43,524 77% 55,031 1,300 56,331
ECONOMIC POLICY DEVELOPMENT 1,505 8,610 37% 23,327 173 23,500
ECONOMIC PLANNING AND CO-ORDINATION 164,057 395,024 79% 499,898 2,173 502,071
ECONOMIC DEVELOPMENT AND DIALOGUE 1,717 2,753 17% 16,284 173 16,457
TOTAL INCL. TRANSFERS 184,041 449,912 75% 594,540 3,819 598,359
TOTAL EXCL. TRANSFERS 24,028 64,531 49% 129,717 1,819 131,536
Per Item Classification
COMPENSATION OF EMPLOYEES 12,951 36,150 45% 79,200 519 79,719
GOODS AND SERVICES 11,027 27,437 61% 44,022 1,300 45,322
DEPARTMENTAL AGENCIES AND ACCOUNTS 160,013 385,381 83% 464,823 2,000 466,823
PAYMENT OF CAPITAL ASSETS 50 944 15% 6,495 - 6,495
TOTAL INCL. TRANSFERS 184,041 449,912 75% 594,540 3,819 598,359
TOTAL EXCL. TRANSFERS 24,028 64,531 49% 129,717 1,819 131,536
Financial Performance
20
Overview of Revenue• Revenue collection in first nine months of 2011/12 is R 500.4 million
or 205% of budgeted revenue of R 243 million;• Main revenue generator is fines from penalties from Competition
Commission and dividends from IDC; and• Revenue projections exceeded due to Pioneer Food settlement
Departmental Receipts
Act Act Act 2011/12
Departmental Receipts QUARTER 3 YTD % of Budget Budget
Sale of goods and Services 5 12 0% -
Fines, penalties and forfeits 267,825 500,347 337% 148,400
Interest, dividends and rent on land 7 126 0% 95,400
TOTAL 267,837 500,486 205% 243,800
ACTUAL RECEIPTS 2011/12
Financial Performance
21
• CommitmentsAs at the end of December 2011 - R4.3 million.
• Earmarked Projects / SpendingTotaling R36 million for the remainder of the 2011/12 financial year.
Including:– Support for a Credit Bureau for small business;– Support for a shared service centre in support of small business;– Business incubator for the social economy;– Costs towards the Khula / samaf / IDC Small Business merger;– A SMME index on regulatory constraints;– A 30-day payment campaign;– Support for a green village pilot project in partnership with the Department of
Environmental Affairs;– Wits Capacity Building Programme for Local Government; and– Labour, Government and Civil Society Workshops.
Concluding Remarks
22
• 4th Quarter– Good work is being done and in the 4th quarter special attention to
be paid to youth unemployment, the Green Economy, Inequality, Implementation of the Accords and special financing.
• COP 17– EDD successfully participated and through the EDD/IDC exhibition
stand raised R750 000 for the roll-out of solar water heaters. Donating approximately 500 solar water heaters to the community of Groutville
• Establishment of EDD– Progress is being made, but challenges remain in finding people
with the correct level of skill to deliver the quality of work required to drive job creation
– EDD Website launched [www.economic.gov.za]
Siyabonga