NSA presentation to the Parliamentary Portfolio Committee (MHET)

1. NSA presentation to the Parliamentary Portfolio Committee (MHET) 02 November 2011 nsaPCMHET

2. Content • Chairperson’s foreword • Introduction • Summary of functions • NSA 2010/11 – key issues • NSF matters • SETAs • PSDFs • Skills Summit • NSDS III • Seta landscape • Repositioning • Legislation and policy • Investigative function • Budget and Finances • NSA Key areas of advice 2011- 2016 • Conclusion nsaPCMHET

3. Chairperson’s foreword • The National Skills Authority(NSA) is established in terms of Chapter 2, section (5) of the Skills Development Act (SDA) 97 of 1998, as amended (Act 37 of 2008) to advise the Minister as per the Act • The year 2010/11 was practically a year of managing the implications of the function shift as well as concretizing the new system in DHET • Transition from DoL to DHET meant a new window of opportunity to review skills development system in order to align it to the national priorities of government • Challenges on the ground were that of pooling resources to support the new mandate • Fortunately, the NSA had already undertaken a strategic workshop to engage the Minister and the DG with the purpose of realigning the NSA activities • The focus and result thereof are summarised in the slides to follow nsaPCMHET

4. Introduction • The NSA is an advisory body, established to advise the Minister on matters related to skills development • It is made up of a Board – comprising social partners, and there is a secretariat located in the Department that supports the Board • The current NSA was appointed into office a month after the Presidential proclamation to establish the DHET • This resulted in almost half of the membership being new and had to grapple with the issues related to the transfer of functions as well as to clarify the NSA role • The HRD : DDG was tasked to temporarily carry out the activities of the Executive Officer until the responsibility was transferred to DDG:SD to date (The process of appointing the EO is underway) • The year 2010 was over packed with urgent skills development activities that were crucial to the establishment of the new post school landscape • The succeeding slides will capture some of the key issue that were addressed nsaPCMHET

5. NSA Functions Liaison (SETAs) Advice • Liaise with SETAs on: • The National Skills Development Policy • The National Skills Development Strategy • Sector Skills Plans • Advise the Minister on: • National Skills Development Policy • National Skills Development Strategy (NSDS) • NSDS Implementation Guidelines • NSF Funding Allocation Strategic Framework and Criteria • SDA Regulations (excl QCTO regulations) Liaison (QCTO) • Liaise with the QCTO on: • occupational standards and qualifications • the suitability and adequacy of occupational standards and qualifications • the quality of learning in and for the workplace • The NSA EO must be a QCTO board member Reporting • Report to the Minister on the: • NSDS implementation progress Summary of NSA functions (in terms of SDA) nsaPCMHET

6. NSA Functions Other Consultation • The Authority must: • Perform its functions in accordance with this Act and its constitution • Conduct investigations on any matter arising out of the application of this Act • Exercise any other powers and perform any other duties conferred or imposed on the Authority by this Act • Receive, from the Department, information on skills • Perform any function of the National Training Board functions • The Authority has: • The prescribed powers of entry and to question and inspect • Consult with the Minister on: • SETA Changes, Amalgamations, Dissolutions and Administration • SETA SLA Regulations and Contents • SETA Plans and DG Reporting requirements • SETA Grants • SETA Powers • Employee / Union Skills Development Rights • NSF Administration and Operations • Provincial Skills Development Forums • SDA Performance • Skills Development Levies Act Regulations Comment • The Authority must: • Comment on the NSF annual financial statements Summary of NSA functions (in terms of SDA) nsaPCMHET

7. 2010/11 in Focus • Advice to the Minister was provided on: • NSF matters • capping on administration from 2% up to 10% • NSF Strategic plan with emphasis on the allocation frame work • SETAs • Advice to extend the lifespan of the SETAs by one year for the period 2010/11 • Advice to subject poor performing SETAs under administration • PSDFs • NSDS III consultations workshops were convened in Provinces through the Provincial Skills Development Forums • Skills Summit • NSA actively participated and led the summit in conjunction with DHET that resulted in a declaration of commitment by stakeholders (Minister’s agreement) nsaPCMHET

8. 2010/11 in Focus continues • NSDS • Advice to extend the NSDS II for a year to allow time transition and review of NSDS II • Advice to release draft NSDS III for public consultation • NSA consolidated inputs and provided advice on the NSDSIII • NSA Work plan 2011/12 developed to support NSDSIII implementation • Seta landscape • Advice on the re-establishment process (broad public consultation and public hearing process that led to the final new Seta landscape – 2011 to 2016) • Seta landscape 2011/16 endorsed and follow up on the PSeta and other Setas subjected to administration was made • NSA Repositioning • Intense discussions on how to strengthen the capacity of the NSA and its relationship with the DHET in order to maximise its role are ongoing nsaPCMHET

9. 2010/11 in focus • Legislation and policies • NSA reviewed the policies and advised the Minister accordingly on: • Skills Development Bill, • Seta Regulations and • Seta Constitution • Investigative function - two investigations are being conducted: • Scope creep by Service Seta • The matter was referred back to the DHET after the findings of the preliminary report. • CHIETA investigation • Investigation into the alleged mismanagement was conducted. • The new council/board has been requested to conclude the implementation of recommendation by the end of November 2011 nsaPCMHET

10. NSA Budget • NSA receives budget allocation from the DHET through voted funds and in the main these funds are for the administration activities such as: • Personnel expenses for Secretariat staff • Administration and logistics (i.e. printing, travelling, venues, subsistence) • The NSA Secretariat directorate that is housed in the Skills Development branch of the DHET is responsible for the allocation • Other NSA activities such as the Skills conference were traditionally funded from the special NSF window as and when needed. • Discussions to make standing annual allocation to the NSA are underway and awaiting the finalisation of the repositioning project nsaPCMHET

11. NSA Budget estimates nsaPCMHET

12. NSA Key areas of advice (2011 -12) The following NSA 5 key areas of advice to the Minister over the next five years were presented for noting and further inputs: • Review Skills development legislative framework to support integration of education and training and the national priorities of government (inclusive of the NSF framework) • Develop Framework on the mobilisation of business, government, community and labour to take full ownership of the NSDS III • Post school education and training that encourages society to support and build a developmental state • Strengthen the monitoring and evaluation functions particularly on the NSDSIII performance and governance. • Research, development and innovation to promote beneficiation and business enterprise development opportunities. nsaPCMHET

13. NSA Key areas of focus Identity of the NSA and its roles vs that of the skills branch • As an advisory body – what should the role of the NSA be • Is the NSA an entity that must have its own resources, budgets and functions, and how do these relate to the Department’s • Is the NSA board composition effective and does it address the challenges • As an advisory body, should it be undertaking the functions prescribed in the Act and what do these mean • Thus, how should the NSA be funded – the current functions are undertaken by the Department, funded through voted funds, will it be acceptable to duplicate funds and activities nsaPCMHET

14. Conclusion • Once the repositioning is concluded, the NSA will be appropriately capacitated to optimally execute its advisory mandate Thank you nsaPCMHET