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Presentation to the Standing Committee on Appropriations

Presentation to the Standing Committee on Appropriations. Date : 11 August 2011 Presented by: Director-General Mr Lionel October. Introduction. The information presented is based on the 2010/11 Audited Annual Financial Statements

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Presentation to the Standing Committee on Appropriations

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  1. Presentation to the Standing Committee on Appropriations Date : 11 August 2011 Presented by: Director-General Mr Lionel October

  2. Introduction • The information presented is based on the 2010/11 Audited Annual Financial Statements • The Auditor General SA expressed an unqualified audit opinion on the 201/11 Annual Financial Statements

  3. Overview of expenditure • The budget allocation for the 2010/11 financial year was R6,194,208 million as compared to R 6,402,076 million in 2009/10. The expenditure for 2010/11 was R5,796,741 million, i.e. 93,6% of the budget, and in 2009/10, it stood at 97,6 %, i.e. R 6,237,955 million. • This spending pattern should be considered in the context of the departmental cost drivers, comprising mainly incentive schemes and transfer payments. Approximately 58% of the expenditure consisted of incentives and 22% of transfers to the departmental agencies. The remaining funds were utilised for operational expenses. • The under spending was mainly in the division responsible for Incentive Administration, viz, The Enterprise Organisation division, by 4.09%, which is mainly attributable to the Automotive Investment Scheme (AIS).

  4. Budget vs. expenditure for the 2010/11 financial year – per programme

  5. Budget vs. expenditure for the 2010/11 financial year – economic classification

  6. Budget vs. expenditure for the 2010/11 financial year – economic classification ** Amounts in respect of AIS are already included under the manufacturing incentives

  7. Reasons for under spending

  8. Baseline vacancy reduction Vacancy report Recruitment efforts * Excludes posts additional to the establishment

  9. Interventions to ensure reduction of vacancy rate: • Clean up of establishment to identify redundant posts to be redesigned in order to create posts in line with new priorities, eg IPAP2. Resulted in old untriggered vacancies being abolished and new vacancies being created and triggered for filling. • Directives were issued in terms of turn around times for advertising and filling of positions to be concluded in a three month period. Non compliance resulting in posts being abolished or redesigned for new posts needed. • Improved monitoring and reporting on vacancies through focus session held to review progress made per position. Reporting done monthly to Chief Operating Officers, Deputy Director-Generals and Director-General. • Improvement of recruitment turn around times through: • Providing additional capacity to Recruitment Office • Outsourcing of recruitment processes

  10. Summary of key achievements for the 2010/11 Financial Year

  11. Key Achievements for 2010/11 FY Industrial Development: Industrial financing • Launched the 12i Tax allowance for investment in new manufacturing assets and Training of staff - 2 applications received • Automotive Investment Scheme (AIS) launched and finalised leading to investment commitments of R13bn from assemblers and component suppliers, supporting 24,000 jobs in the sector. Large increases in levels of volumes and localisation • Rollout of the Clothing Textile Competitive Programme (CTCP) and Production Incentive (PI) with 106 and 94 companies benefiting under the CTCP and PI respectively • R40 million investments made and 950 jobs created. R42 million new investment commitments approved linked to 806 jobs. 3,400 are currently being trained under the Monyetla II Programme – 70% guaranteed employment by BPO consortium • Improved the performance of incentive programmes by submitting amended guidelines for BPS & EIP

  12. Key Achievements for 2010/11 FY Industrial Development Procurement • Agreement by National Treasury, Economic Development Department and the dti to process amendments to PPPFA regulations to designate sectors for local production and alignment with B-BBEE codes. Amendments await promulgation by National Treasury • the dti has developed a sector designation methodology and is compiling necessary research to designate a range of sectors Trade • Early warning system developed by South African Bureau of Standards (SABS) identifying technical barriers to trade for exporters launched and distributed to exporters on a monthly basis Africa Regional Development • Developed concept note on areas of cooperation towards a SACU regional industrial policy. This was warmly received by SACU member states. Engagements are currently underway to finalise joint projects

  13. THANK YOU

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