Briefing to Portfolio Committee Trends for Vote 25 Environmental and Tourism combined in 2009/10 Nosipho Ngcaba Director-General Department of Environmental Affairs 27 May 2010

Presentation Outline - Priorities for the Department in 2009/2010 Earmarked Funding for the 2009/2010 financial year Departmental Expenditure Trends Expenditure for the 2009/2010 Financial Year Donor Funding Expenditure Request for rollover funds to the 2010/2011 financial year Challenges experienced by the Department in 2009/2010

Priorities for the Department in 2009/2010 Programme 1: Administration Provide strategic leadership, centralized administration and executive support and corporate services Programme 2: Environmental Quality and Protection Minimize non-compliance with environmental legislation Prevent and reduce pollution Increase the turnaround time for processing basic national environmental impact assessment applications Improve air and atmospheric quality Establish a coherent approach to climate change response for South Africa by developing a climate change response by 2011/2012.

Priorities for the Department in 2009/2010 Programme 3: Marine and Coastal Management Provide for South Africa’s research needs at Antarctica and Marion and Gough Islands Programme 4: Tourism Service the needs of tourists in the hosting cities during the 2010 FIFA World Cup Improve skills and service levels in the tourism sector Provide support to SMMEs

Priorities for the Department in 2009/2010 Programme 5: Biodiversity and Conservation Promote equitable access and shared benefits by concluding bio-prospecting agreements. Expand the conservation estate by coordinating the implementation of the national strategy for the expansion of protected areas. Programme 6: Sector Services and International Relations Promote the empowerment of designated communities by creating permanent jobs, temporary jobs and training through the expanded public works programmes. Maintain South Africa’s leadership role in global environmental affairs by: - Developing and implementing the action plan for the national framework for sustainable development. - Ensuring a green legacy for the 2010 FIFA World Cup.

Departmental Expenditure Trends Year Budget Actual % Expenditure 2004/2005 R’000 1 652 268 1 633 882 % 98.9% 2005/2006 1 753 307 1 746 154 99.6% 2006/2007 2 061 804 2 059 664 99.9% 2007/2008 2 790 521 2 788 757 2008/2009 3 206 557 3 198 878 99.8% 2009/2010 3 510 641 3 503 339

Expenditure for the 2009/2010 Financial Year per Programme per Quarter First Quarter Second Third Fourth Total Administration R’000 66 556 57 538 66 370 82 637 273 101 2. Environmental Quality and Protect 67 942 51 265 72 671 93 943 285 821 3. Marine and Coastal Management 133 237 100 321 271 776 116 281 621 615 4. Tourism 541 112 47 506 165 884 58 027 812 529 5. Biodiversity and Conservation 82 466 126 129 93 765 84 493 386 853 6. Sector Services and International Relat 118 416 251 966 283 577 469 461 1 123 420 1 009 729 634 725 954 043 904 842 3 503 339 29% 18% 27% 26%

Expenditure for the 2009/2010 Financial Year per Programme Original Allocation Adjusted Estimates Final Appropriation Expen-diture Variance 1. Administration R’000 217 504 55 597 273 101 2. Environmental Quality and Protection 293 929 (7 493) 286 436 285 821 615 3. Marine and Coastal Management 583 626 41 042 624 668 621 615 3 053 4. Tourism 750 292 62 237 812 529 5. Biodiversity and Conservation 413 310 (25 663) 387 647 386 853 794 6. Sector Services and International Relations Relations 1 222 122 (95 862) 1 126 260 1 123 420 2 840 Total 3 480 783 29 858 3 510 641 3 503 339 7 302

Programme 1: Administration Subprogramme Original Allocation Adjusted Estimates Final Appro-priation Expen diture Variance Minister R’000 1 709 (149) 1 560 2. Deputy Minister 1 407 (57) 1 350 3. Director-General 3 233 (288) 2 945 4. Ministry 27 013 1 199 28 212 5. Corporate Affairs 4 440 (1 459) 2 981 6. Communication 20 815 (3 800) 17 015 7. Internal Audit 2 480 976 3 456 8. Office of the CFO 24 867 (458) 24 409 9. Information Technology and Administration 42 505 21 152 63 657

Programme 1: Administration (continue) Subprogramme Original Allocation Adjusted Estimates Final Appropriation Expen- diture Variance 10. Property Management * R’000 43 205 42 315 85 520 11. Human Resources and Transformation 35 228 334 34 894 12. Legal Services 10 602 3 500 7 102 Total 217 504 55 597 273 101 *Note: Original allocation was R43,205 million. Reprioritized from use of goods and services to provide for the shortfall of R42,315 million for Property Management: Office Accommodation. Total amounts to R85,520 million.

Programme 2: Environmental Quality and Protection Subprogramme Original Allocation Adjusted Estimates Final Appropriation Expen- diture Variance Environmental Quality and Protection Management R’000 6 516 1 956 8 472 2. Regulatory Services 19 479 3 358 16 121 3. Pollution and Waste Management 28 301 397 27 904 4. Environmental Impact 39 365 2 259 37 106 5. Air Quality Management and Climate Change 39 731 8 265 31 466 6. Buyisa-e-Bag 30 000 29 385 615 7. South African Weather Service 130 537 4 830 135 367 Total 293 929 (7 493) 286 436 285 821

Programme 3: Marine and Coastal Management Subprogramme Original Allocation Adjusted Estimates Final Appro-priation Expenditure Variance Administrative Support Services R’000 155 038 16 325 171 363 2. Antarctic Supply Vessel - Replacement of Polar Supply Vessel - Operational cost of SA Agulhas 144 491 37 000 (10 000) 24 661 134 491 61 661 131 438 3 053 3. Antarctic and Island Research 42 092 6 446 48 538 4. Marine Living Resources Fund 205 005 3 610 208 615 Total 583 626 41 042 624 668 621 615

Programme 4: Tourism Programme/ Subprogramme Original Allocation Adjusted Estimates Final Appro-priation Expenditure Variance Tourism Management R’000 5 006 4 139 9 145 2. Tourism Industry Promotion 15 839 18 957 34 796 3. Tourism Industry Development 21 681 (4 679) 17 002 4. South African Tourism 655 669 43 820 699 489 5. Business Trust 52 097 Total 750 292 62 237 812 529

Programme 5: Biodiversity and Conservation Subprogramme Original Allocation Adjusted Estimates Final Appropriation Expen- diture Variance Biodiversity and Conservation Mng R’000 4 606 (1 186) 3 420 2. Biodiversity and Heritage 17 118 2 069 19 187 18 393 794 3. Transfrontier Conservation and Protected Areas 31 620 (10 586) 21 034 4. iSimangaliso Wetland Park Authority 20 736 5. South African National Parks 205 406 (21 022) 184 384 6. South African National Biodiversity Institute 133 824 5 062 138 886 Total 413 310 (25 663) 387 647 386 853

Programme 6: Sector Services and International Relations Subprogramme Original Allocation Adjusted Estimates Final Appropriation Expen- diture Variance Management R’000 13 934 (242) 13 692 2. Social Responsibility, Policy and Projects and Infrastructure Development 1 129 675 (103 675) 1 026 000 1 023 160 2 840 3. International Cooperation * 47 065 (4 576) 51 641 4. Planning and Coordination 21 246 1 123 22 369 5. Business Performance 10 202 2 356 12 558 Total 1 222 122 (95 862) 1 126 260 1 123 420

Expenditure per Economical Classification Original Allocation Adjusted Estimates Final Appro-priation Expen-diture Variance Current Payments R’000 815 962 80 529 896 491 893 804 2 687 Compensation Goods and Services Financial Transactions 432 810 383 152 25 871 54 499 159 458 681 437 651 434 964 Transfers and Subsidies 2 506 066 (40 628) 2 465 438 2 463 876 1 562 Departmental Agencies and Projects Foreign Governments Universities and Tech Non-Profit Institutions 2 406 095 9 000 90 971 (54 977) 798 13 551 2 351 118 104 522 2 350 966 797 103 113 152 1 1 409 Capital Assets 158 755 (10 043) 148 712 145 659 3 053 Software - Machinery and Equip 318 158 437 156 *(10 199) 474 148 238 145 185 Total 3 480 783 29 858 3 510 641 3 503 339 7 302

Expenditure per Economical Classification: Current Payments Original Allocation Adjusted Estimates Final Appro-priation Expen-diture Variance Current Payments R’000 Compensation * Goods and Services** Financial Transactions 432 810 383 152 25 871 54 499 159 458 681 437 651 434 964 2 687 Total 815 962 80 529 896 491 893 804

Reprioritization: Compensation of Employees Reprioritization Notes Expenditure Salary increases through Adjusted Estimates by National Treasury R’000 11 891 Marine and Coastal Management shortfall reprioritized from goods and services 11 748 Tourism Branch shortfall reprioritized from goods and services 2 232 Total 25 871

Reprioritization: Goods and Services Reprioritization Notes Expenditure Programme 1: Administration R’000 Property Management - Pretoria: Fedsure Forum - Cape Town: Foretrust (MCM) - Cape Town: Waterfront (Antarctica and Islands) - 120 Plein Street split office accommodation - Project Offices for EPWP - Municipal Services IT Systems for split in Departments 42 215 7 762 Total Programme 1: Administration 49 977

Reprioritization: Goods and Services Reprioritization Notes Expenditure Programme 3: Marine and Coastal Management R’000 Operating and Manning shortfall for SA Agulhas Helicopter Services shortfall for SA Agulhas 11 983 6 446 Total Programme 3: Marine and Coastal Management 18 429 Programme 4: Tourism Increased allocation due to split for Tourism Activities Development of minimum standards for responsible tourism Federated Hospitality Association for implementing Integrated tourism Service Excellence Tourism Grading Council 7 108 223 8 000 15 000 Total Programme 4: Tourism 30 331 Grand Total 98 737

Current Expenditure Notes Expenditure Goods and Services R’000 Total Administrative Fees Advertising Assets less than R5 000 Audit Cost: External Bursaries employees Catering: Departmental Activities Communication Computer Services Consultants and Advisory Services (Annexure A) Entertainment Inventory (including stores for Antarctica) Operating Leases Owned and leasehold property expenditure (maintenance, pest control) Transport provided as part of Departmental Activities Travel and Subsistence (Including COP 15 travel to Copenhagen Dec 2009 R18m) Venues and Facilities ( Conventions, Lekgotla, 5D, Minmec, Mintec, Tourism Indaba) Training and Staff Development Other Operating Expenditure ** 431 8 474 5 207 5 167 1 406 2 923 9 150 10 774 147 463 254 17 945 89 882 7 233 229 72 188 16 593 4 865 34 781 Total 434 965

Current Expenditure Notes Expenditure Other Operating Expenditure ** Printing and Publications International Membership Fees Resettlement Cost Air Charter Services and landing rights Freight Services Harbour Services Licences, Honoraria, Witness Fees 3 289 12 913 2 360 14 802 155 416 846 Total 34 781

Expenditure per Economical Classification: Transfer Payments Original Allocation Adjusted Estimates Final Appro-priation Expen- diture Variance Transfers and Subsidies R’000 Departmental Agencies and Projects Foreign Governments Universities and Tech Non-Profit Institutions 2 406 095 9 000 90 971 (54 977) 798 13 551 2 351 118 104 522 2 350 966 797 103 113 152 1 1 409 Total 2 506 066 (40 628) 2 465 438 2 463 876 1 562

Transfer Payments: Departmental Agencies and Accounts Public Entity/ Institution Original Allocation Adjusted Estimates Final Appro-priation Expenditure Variance Marine Living Resources Fund R’000 205 005 3 610 208 615 South African Weather Serv - Financial Assistance - Infrastructure Development 130 537 55 207 4 830 135 367 South African Tourism - International Tourism Mark 496 150 159 519 43 820 203 339 South African National Parks 205 406 185 825 (21 022) 184 384 South African National Biodiversity Inst 133 824 12 000 5 062 138 886

Transfer Payments: Departmental Agencies and Accounts (cont) Public Entity/ Institution Original Allocation Adjusted Estimates Final Appro-priation Expen- Diture Variance iSimangaliso Wetland Park Authority - Financial assistance - Infrastructure Development R’000 20 736 30 000 29 922 78 Council for Scientific and Industrial Research 1 500 Projects 767 647 (88 538) 679 109 679 035 74 Total 2 405 896 (54 977) 2 351 118 2 350 966 152

Transfer Payments: Universities and Technikons Public Entity/Institution Original Allocation Adjusted Estimates Final Appro-priation Expenditure Variance University of Cape Town R’000 798 797 1 Total

Transfer Payments: Foreign Governments and International Institutions Public Entity/ Institution Original Allocation Adjusted Estimates Final Appro-priation Expenditure Variance Global Environmental Fund R’000 9 000 Total

Transfer Payments: Non-Profit Institutions Public Entity/ Institution Original Allocation Adjusted Estimates Final Appro-priation Expenditure Variance Buyisa-e-Bag R’000 30 000 29 385 615 Wildlife and Environmental Society of South Africa 4 000 National Business Trust 52 097 Botanical Society 474 National Association for Clean Air 580 National Business Initiative 2 000 Federated Hospitality Association of South Africa 500 8 000 8 500 Tourism Business Council

Transfer Payments: Non-Profit Institutions (continue) Public Entity/ Institution Original Allocation Adjusted Estimates Final Appro-priation Expenditure Variance Endangered Wildlife Trust R’000 320 Tourism, Hospitality and Sports Education and Training Authority 4 000 World Wildlife Fund 500 Maloti Drakensberg 1 051 National Off-Road Workshop Total 90 971 13 551 104 522 103 113 1 409

Transfer Payments: Projects and Expanded Public Works Programme Institutions Expenditure 2010 Tourism Infrastructure Development R’000 4 475 Sustainable Land Base Livelihoods 195 991 Working on Waste 170 182 Working for the Coast 67 917 Working for Tourism 213 546 People and Parks 10 602 Beneficiary Training 16 253 Other: (leave gratuity, refunds, gifts and donations) 69 Total 679 035

Expenditure per Economical Classification: Capital Expenditure Original Allocation Adjusted Estimates Final Appro-priation Expen-diture Variance Capital Assets R’000 Software - Machinery and Equip 318 158 437 156 (10 199) 474 148 238 145 185 3 053 Total 158 755 (10 043) 148 712 145 659

Payment of Capital Assets Notes Expenditure Machinery and Equipment R’000 Audio Visual Equipment Building Air Con Systems Cellular Phones Computer Equipment Domestic Equipment Furniture and Office Equipment Photographic Equipment Radio Equipment Kitchen Appliances Laundry Equipment Medical and Allied Equipment Security Equipment Ship and Marine Equipment (Replacement of Polar Research Vessel) Tents, Flags and Accessories 200 64 6 9 721 100 3 188 124 42 18 7 120 131 484 105 Total 145 185

Therefore Challenges experienced by the Department during 2009/2010 - Announced split in the Department of Environmental Affairs and Tourism during May 2009. Funding of two Departments from limited allocation Accommodation allocation shortfall Compensation of Employees cost for Marine and Coastal Management shortfall Cost (IT systems) for establishing new Tourism Department Entities deficits Decreasing Donor funding Use of Goods and Services

Foreign Aid Assistance 2009/2010 Name of Donor Country Purpose Expenditure UNEP 2nd National Communication for Convention and Climate Change R’000 701 Rotterdam Convention 17 Denmark Environmental Capacity Building Programme 1 642 National Waste Management Strategy Programme 1 400 Urban Environmental Management Programme 10 397 Programme and Institutional Support for African Institute for the Environmentally Sound Management and Hazardous and other Wastes 1 000 Nigeria 198

Foreign Aid Assistance 2009/2010 Name of Donor Country Purpose Expenditure Tanzania Programme and Institutional Support for African Institute for the Environmentally Sound Management and Hazardous and other Wastes R’000 146 World Bank African Stockpile Programme 626 Norway Environmental Co-operation Programme 16 196 Marine Fisheries Co-operation Programme 9 680 Kenya West Indian Oceans Fisheries 653 Total 42 656

Rollover Request from 2009/2010 to 2010/2011 Programme Purpose Amount Marine and Coastal Management Replacement of the Polar Research Vessel Funds not utilized from the allocated amount for the replacement of the Polar Research Vessel requested to be rolled over for the Capital Programme in order to provide funding throughout the replacement programme in case the exchange rate results in shortfalls in funding in further years Total Contract Price: EUR 116 265 000 R’000 3 053