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02 JUNE 2004

BUDGET PREVIEW PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC WORKS. 02 JUNE 2004. JAMES MASEKO DIRECTOR-GENERAL. Presentation Outline. Introduction Strategic goal Key strategic policy developments Budget programmes Comparison of budget request with allocations

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02 JUNE 2004

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  1. BUDGET PREVIEW PRESENTATIONTO THE PORTFOLIO COMMITTEE ON PUBLIC WORKS 02 JUNE 2004 JAMES MASEKO DIRECTOR-GENERAL

  2. Presentation Outline • Introduction • Strategic goal • Key strategic policy developments • Budget programmes • Comparison of budget request with allocations • Detailed analysis of Programme Two budget allocation • Implications of the analysed shortfall • Conclusions

  3. STRATEGIC GOAL The overarching strategic goal is improvement in service delivery as well as repositioning the department to achieve its mandate by: • Exercising custodial responsibilities for National Government Immovable properties • Providing prompt and efficient property and project management services to our clients

  4. KEY STRATEGIC POLICY DEVELOPMENTS • Transforming the department by refocusing its policy, • regulatory and operational functions: • Key policy and regulatory areas to be covered are : • Finalisation of Government-wide immovable asset management framework; • Transformation of the construction and property industries; • Alleviation of unemployment through the Expanded Public Works Programme • Improving service delivery to client departments through restructuring, business process reengineering and improving skills

  5. BUDGET PROGRAMMES • Programme One:Administration • Overall management of NDPW e.g policy development,implementation strategies and providing support services • Programme Two:Provision of Land & Accommodation • Provision of land, and development, management and maintenance of accommodation to ensure that national departments & institutions have a built environment that meets their requirements

  6. Budget Programmes Cont’d • Programme Three:National Public Works Programme • Promotion of sustainable growth of construction & property industries whilst fast-tracking their transformation & development • Custodial function of national state property portfolio under NDPW and • Alleviate unemployment through EPWP

  7. Budget Programmes Cont’d • Programme Four: Auxiliary and Associated Services • Provision of various services, including • Losses incurred in State housing guarantee scheme, • Maintenance of war graves & national memorials, • Arrangements for public functions such as State funerals & inaugurations, • Acquisition of vehicles for departmental use • Skills Development Act levies and • Financial assistance to Parliamentary Villages Management Board

  8. COMPARISON OF REQUESTED BUDGET WITH APPROVED ALLOCATION AT PROGRAMME LEVEL

  9. IMPLICATIONS • The implications of underfunding as they relate to the main cost Items are: • Leasing: There is a severe shortfall of funding for leases. In particular, there is a need for additional leased accommodation for SAPS, for example for the training of the police recruits. The Department will have to meet some of these requirements and there is a danger of over-expenditure on this item. • Rates on State Property and Municipal Services: As municipalities improve their revenue collection, there is increasing pressure on the department’s budget for municipal services. This resulted in over-expenditure on this item last financial year. This pressure is expected to increase this year and over-expenditure is projected on this item again.

  10. Maintenance: • Inadequate maintenance results in non-compliance with Occupational Health and Safety Act. • There is a backlog of approximately R13 billion for maintenance of the national government portfolio of buildings, and R2.3 billion is required for maintenance per annum to prevent the backlog from increasing further. • The main challenge for the department is to develop more convincing and credible motivations for additional funding for maintenance. In this regard, the Department is finalising a medium-term maintenance plan, covering the whole national government buidling portfolio. This plan will be used to motivate for increased funding in the next MTEF budgeting cycle.

  11. CONCLUDING REMARKS • In conclusion, the department wishes to highlight the • positive impact and achievements that its programmes • continue to contribute to government’s overall objectives • and priorities in areas of: • Employment creation • Black economic empowerment • Infrastructure investment • Land reform initiatives and • Transformation of the Construction industry and its quest towards the transformation of the Property industry in the forthcoming years.

  12. THANK YOU

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