PUBLIC CONSULTATION ON MEAT INSPECTION SERVICE IN SOUTH AFRICA

1. PUBLIC CONSULTATION ON MEAT INSPECTION SERVICE IN SOUTH AFRICA Work Group Recommendations Dr Mphane Molefe Chairperson: independent Meat Inspection Work Group 26 February 2013

2. Background to Work Group • The Work Group was established in October 2011 and the intergovernmental consultative process concluded in October 2012 – • Work Group [IMI-WG] was specifically established in order to consult, and present a report with proposal for consideration • The industry was invited to participate in all these meetings, in order to assist in tabulation of the earlier recommendations in order to foster full understanding, as well as its merits.

3. International Benchmarking Work Group investigated more than 50 countries, including: • Botswana, Namibia, Zimbabwe, Liberia, Trinidad and Tobago, Jamaica, Dominica, Brazil, China, Russia, Guatemala, Honduras, USA, UK, Australia, New Zealand, Canada, Northern Ireland, Finland, Russia, Denmark, Germany, Malaysia, Netherlands, South Korea In all investigated countries, governments handle meat inspection: • Directly • Agencies of government • Where private service providers are used, they are monitored on a full time basis by a government official In fact- NO COUNTRY to date has left Meat Inspection to the private sector

4. Options for Meat Inspection Different options as raised at consultative meetings: • Government service under the Public Service Act • Central appointments (NEO) • Provincial appointments (PEOs) • State owned enterprise (SOE) • Assignee • Single assignee • Multiple assignees • Combination of Government and assignee(s)

5. NEO PEOs Central Government Administrative Support MEAT INSPECTION PERSONNEL ABATTOIRS Option 1 – Government Operated Service – Central Appointments (Recommended Option) ………… Feedback……………..Audit and verification function

6. Advantages Full Government control of meat inspection service across the country Uniform standards of meat inspection at all abattoirs Job stability for inspectors and examiners with a resultant retention of experienced staff Inspectors and examiners free to make professional decisions on meat safety without fear of dismissal Government will be able to support abattoirs in rural communities and these will be given as much attention as high and low throughput abattoirs Government tool to address unemployment

7. Disadvantages Possible socio-political risks as a result of other competing priority areas Perceived long turnaround time in Government to employ personnel and procure resources

8. COSTING There will be cost implications for both the State and the private sector The major cost-driver seemed to be related to salaries Entry level salaries of meat inspectors (3 year qualification) in existing service providers is less than level 1 public service salaries The Industry has also acknowledged that salaries for meat inspectors were very low, and were part of the problem, and needed to be gradually improved The costing model is complicated due to limited ‘real-time’ information on cost of meat inspection from the industry – it is however estimated that implementation of the proposal will require additional R40M-R90M to be injected into the system in addition to current cost recovery

9. Preliminary findings and way forward • Provinces were of the view that the current system does NOT WORK in its present form and that government [in whatever form] was best “suited” to provide Meat Inspection that can be considered “technically independent” However, it is acknowledged by all that the industry has gone some way to attempt to implement “independency” in Meat Inspection It is proposed that the present system shall not be eradicated, however, it shall be reviewed to possibly incorporate into the final proposal In a number of inputs – Industry stakeholders seem to suggest that a complete government take-over is not advisable, but a system where government make a strong presence such as in phase 1 is encouraged (see next slide). The industry has expressed that any system that adds extra-cost to individual abattoir owners would not be supported and that the industry cannot afford extra costs Rural and small abattoirs present in meetings supported the proposal

10. Preliminary findings and way forward Phase 1 of the implementation of a revised meat inspection service Develop capacity within DAFF DAFF to take over meat inspection service at rural and infrequently slaughtering abattoirs Retain existing service providers at high throughput and busy low throughput abattoirs Place a full time government meat inspector at each of the abattoirs mentioned above

11. Preliminary findings and way forward Meat inspection must be regarded also, as Public Good----- as such, government must contribute to its success The complete privatisation in which government absolved itself from the responsibility of meat inspection as a public good and constitutional mandate was ill-conceived The Department is still analysing inputs --- and is also engaged in discussions with Department of Health, Health Profession’s Council of South Africa, Department of Correctional Services, etc There is a need for further consultation with industry to discuss the proposal --- Including the determination of the true shortfall based on real figures of meat inspection revenue generated currently In summary, the workshops and some written inputs seem to favour a combination of government and assignee model – a final proposal is expected to reflect such views

12. DANKIESIYABONGA