1. Ms M P Themba (ANC-Mpumalanga) to ask the Deputy President:
(1) Whether the Short Term Job Creation Commission that was established in July 2011 has (a) identified and (b) developed any projects to accelerate job creation; if not, why not; if so, what are the relevant details;
(2) whether the commission has identified some of the bottlenecks in the creation of jobs in South Africa; if not, why not; if so, what are the relevant details?
REPLY:
The Anti-Poverty Short Term Job Creation Inter-Ministerial Committee is not mandated to develop programmes but is responsible for the overall coordination of government’s programmes and interventions to create short term job opportunities. The Inter-Ministerial Committee thus coordinates and facilitates the following priority programmes:
- The Expanded Public Works Programme, with a special focus on the Community Works Programme;
- The Small Enterprise development strategy, including co-operatives and the informal sector;
- Skills development and vocational training;
- The Jobs Fund; and
- The War on Poverty.
Programmes that involve multiple stakeholders face particular difficulties in implementation. This is a crucial context in which the Inter-Ministerial Committee is able to provide strategic oversight, secure high-level agreements and remove blockages that may hinder implementation.
The focus on multiple stakeholders is not, however, only within government. The Inter-Ministerial Committee also focuses on building partnerships outside of government where these enhance job creation prospects – especially with organised labour, business and community organisations.
The Inter-Ministerial Committee has a particular interest in supporting innovative approaches to creating employment, and to create the opportunity for cross-cutting learning to take place.
I thank you.
\2. Ms N D Ntwanambi (ANC-WC) to ask the Deputy President:
(1) Whether the Government has conducted an audit of the total number of persons who form part of the “man on the side of the road”, who gather on the side of the road each day waiting in hope for contractors, home owners, and/or anyone who can offer employment; if not, why not; if so, what are the relevant details;
(2) whether there are any programmes that are targeted at providing work opportunities and/or encouraging provinces and companies to recruit them to enter the labour market (details furnished); if not, why not; if so, what are the relevant details;
(3) whether he will raise this matter with Cabinet, provinces and the economic cluster; if not, why not; if so, what are the relevant details?
REPLY
Honorable Member, if we accept that the “men on the side of the road” is a metaphor for the large number of unskilled and semi-skilled active job seekers, we can then approach the issue in the context of existing government programmes and incentives that seek to support and encourage active work seekers.
We can therefore understand that these active job seekers constitute a component of the large number of job seekers that government is capturing on its current database which now stands at over 2 million. Thus, they are not a unique group that requires a different or special dispensation.
Active job seekers are committed and passionate about finding any kind of employment and are not necessarily different from people who scan the daily papers looking for work. They are thus more likely to find jobs, temporarily or long term and provide for their families whilst they continue to seek permanent employment.
The Department of Labour has a national campaign entitled My Job My Future that was launched in 2012 to encourage work seekers to register with the Department and to encourage employers and institutions to register short and long term employment and learning opportunities.
Cabinet has approved a new Employment Services Bill which, after extensive discussions at NEDLAC over a two year period, is currently before the National Assembly. We hope that the passage of this Bill into law will to a large extent address the issue of unemployment.
We remain confident that the economy will turn the corner and start creating jobs at a rate at which it can absorb large numbers of low-skilled workers. This confidence takes into account state interventions designed to stimulate growth and job creation.
For example, the Department of Trade and Industry provides a range of incentives to business and the manufacturing sector in particular. In addition, the Cooperatives Incentive Scheme has proved popular with entrepreneurs in the agriculture, agro-processing and the services sectors where the jobs created are typically less skill-intensive.
These are in addition to job creation opportunities being stimulated by the national infrastructure programme coordinated by the Presidential Infrastructure Coordinating Commission chaired by the President - as well as the public employment schemes to which I referred earlier in my Reply to Honourable Themba.
I thank you.
3. Ms N D Ntwanambi (ANC-WC) to ask the Deputy President:
(1) (a) What total amount has been spent by the Government in the past financial year on paying consultants and/or consulting firms and (b) what was the nature of the work done;
(2) whether Cabinet is looking at ways of reducing the number of consultants and consulting firms that are being used by government departments, given that there are public servants who are capable of performing the same duties; if not, why not; if so, what are the relevant details;
(3) whether he will consider raising this matter with Cabinet (details furnished); if not, why not; if so, what are the relevant details?
REPLY
Honourable Member, the Auditor – General expressed himself on the manner in which consultants are procured, most notably recommending that procurement processes need to be transparent, and that the expected outcomes and deliverables of the service being provided be clearly defined at the outset.
The Auditor-General further expressed the need for contracted service providers to be managed according to the parameters defined by the contractual agreement. Furthermore, the measures proposed by the Department of Public Service and Administration regarding the performance management of senior managers will in part help this situation whereby the use of consultants will be more stringently managed. In addition, National Treasury’s on-going work on improving supply chain management will also assist in this regard.
Honourable Member, notwithstanding these measures as well as Government’s commitment to improving the capability of the civil service, there will always be a need to contract service providers with specialised skills and expertise.
Service providers are contracted to perform specific services whenever there is a need for such services. Such services are usually time bound with clear terms of reference and defined deliverables, and as mentioned earlier, needs to be more stringently managed.
I thank you.
4. Ms N D Ntwanambi (ANC-WC) to ask the Deputy President:
(1) Whether Cabinet has discussed the issue of (a) government departments that are owing municipalities and government entities and (b) municipalities that are owing government entities for services which were rendered; if not, why not; if so, what is the total amount that is being owed by (i) municipalities to government entities such as Eskom, Telkom and others and (ii) government departments to municipalities;
(2) whether any measures are in place to (a) address the situation and (b) ensure that this does not affect service delivery; if not, why not; if so, what measures?
REPLY
Cabinet discussed this matter in detail and there is concern about the fact that there are some Government Departments that owe certain municipalities large sums of money in rates, taxes and services. I have been informed by the Minister of Cooperative Governance and Traditional Affairs that in January this year he wrote letters to the Ministries concerned requesting them to attend to the issue. Minister Baloyi can provide additional information on this matter.
Honourable Member, it must be remembered that municipalities and State Owned Enterprises have client-service provider relationships which are regulated by contractual agreements. Within the parameters of these agreements there are mechanisms for recourse in the event of non-payment for services that were rendered.
I am further informed that SALGA is also handling the matter with its members with a view to identifying any institutional challenges that inhibit municipalities from collecting revenue whilst simultaneously meeting their financial obligations.
I thank you.
5. Mr R J Tau (ANC-NC) to ask the Deputy President:
(1) Whether the amount of over R1 billion or any portion thereof that was committed from the Jobs Fund for projects as announced by the President in his 2011 State of the Nation Address has been (a) allocated, (b) used or (c) paid for any job creation projects or programmes; if not, why not; if so, what are the relevant details;
(2) whether any of the said projects or programmes have been and/or are being implemented in any provinces; if not, why not; if so, (a) which provinces and (b) what are the benefits thereof?
REPLY
The Jobs Fund was announced by the President during the State of the Nation Address in February 2011 and was launched in June 2011 by the Minister of Finance. An amount of R 9 Billion was set aside, to be allocated over a five-year period, towards the realisation of the objectives of the Jobs Fund.
The objective of the jobs fund is to co-finance projects by public, private and non-governmental organisations that will significantly contribute to job creation. This involves the use of public money to catalyse innovation and investment by a range of economic stakeholders in activities which contribute directly to enhanced employment creation in South Africa.
The jobs fund constitutes but one of government’s strategic responses to the problem of unemployment in South Africa. Specifically, it aims to explore, pilot and fund approaches for overcoming barriers to employment.
In his Budget Speech yesterday, the Minister of Finance indicated that the Jobs Fund has concluded two calls for proposals. In total, 3 614 applications were received, and 65 projects were approved. Grant funding of R3.3 billion has been approved, matched by a further R3.1 billion in funding raised by the private sector.
Disbursement of the grant funding has lagged in that R116 million has been disbursed against the planned R561 million for the period. This can be attributed to initial delays caused by manual processing of applications as well as delays in finalising contractual arrangements with grantees.
Additionally, the programme has delivered a number of other outcomes that were not part of its targets. Specifically, the programme has to date contracted for the placement of approximately 42,000 people in vacant job positions; and for about 105,400 people to complete work related training programmes that will enhance their chances of employment.
I thank you.
