Question 711
Mr I O Davidson (DA) to ask the Minister of Social Development:
Whether, in light of the current recession and the consequent shortfall in the state revenue, her department has introduced any austerity measures to reduce its expenditure with regard to (a) official vehicles, (b) travel, (c) travel by departmental officials, (d) accommodation and household help or (e) any other aspects of government business; if not, what is the position in this regard; if so, what are the relevant details?
Reply:
Yes, the Department of Social Development (DSD) does not remain unaffected by the economic recession and has officially implemented a wide range of austerity measures since the beginning of the 2009/10 financial year.
(a), (b), (c), (d) and (e)
Cabinet has appointed a Ministerial Task Team to develop a proposal on how the whole of government could respond to the economic meltdown by, among other things, identifying areas in which expenditure could be reprioritised with a view to diverting resources to the provision of essential services.
The task team, which is lead by the Minister of Finance, will make specific recommendations on how government should implement cost cutting measures in all three spheres of government in a structured and coordinated manner. DSD and its reporting entities will be required to comply with these measures once they are approved by Cabinet. However, cost cutting measures have already been put in place by my department and its state entities. These include cutting down on international travel, reducing the over-reliance on consultants and reviewing the prices that the state pays for goods and services.
These cost cutting measures will be announced soon. I will be in a better position to respond more comprehensively as soon as this matter has been finalised by Cabinet.
Issued by: Department of Social Development
21 September 2009