CETA PRESENTATION TO THE PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS 1 JUNE 2011

CETA Delegation Mr Themba Mhambi – CETA Administrator Mr Thabo Sibaya – Acting CEO Ms Sonja Pilusa – Corporate Specialist/Advisor to the Administrator Dr Thabang Matobako – ETQA Manager Mr Francis Lamola – Skills Development Manager

Framework of Presentation Strategy CETA Constituencies Performance Report Budget analysis for NSDS II Performance Highlights Challenges Strategic Partnership with NDHS

Excellence in the service of our sector, our stakeholders, our nation Strategy Vision Mission Excellence in the service of our sector, our stakeholders, our nation To ensure quality education and training to enhance the construction sector

CETA Constituencies Construction ( Building and Civil) Materials Manufacturing Built Environment Professionals (BEP) Electrical Contracting Industry National Department of Human Settlements National Department of Public Works

SDF and Mandatory Grant Payment: 1April 2005 to March 2011 Indicator Description 2005-2010 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 Total 1.2 SDF 1515 250 424 473 1147 2.1 Large Companies 117 157 198 296 213 1231 Medium companies 211 261 330 336 400 386 1924 Small companies 1083 569 713 631 952 758 4706

BEE Support: 1 April 2005 to March 2011 Indicator Description 2005-2010 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 Total 2.5 BEE firms 100 43 65 206 314 BEE Co-ops 200

ABET Performance: April 2005 to March 2011 Indicator Description 2005-2010 (SLA Target) 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 Total 2.7 ABET 1 22806 70 71 294 922 505 1862 ABET 2 29 593 731 385 1808 ABET 3 250 348 608 1235 ABET 4 12 244 468 472 1196 140 141 1381 2469 1970 6101

Comments Comment Anticipated Improvements Sector is project based and cyclical in nature Focus increasingly on Government and Public Institutions ABET is perceived by industry not to be adding value to productivity Funding for other programmes to be conditional on ABET and/or RPL provision Current ABET Model is too generic and not aligned to the uniqueness of the sector A construction-specific ABET model to be developed

Workers in Learning Programmes: 1 April 2005 to March 2011 Indicator Description 2005-2010 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 Total 2.8 Learnership 3210 173 34 65 1047 574 387 2280 Bursary MTA 13 269 165 159 593 MTA 28 57 70 42 169 Internship 14 22 100 136 Skills Programme 348 2213 3700 1146 7407 413 3600 4531 1834 10585

Comments Comment Anticipated Improvements Learners were indentured on apprenticeship from 2008/2009 onwards NSDS III emphasizes and prioritises apprentices, artisanship and trades For 2005/2006 and 2006/2007, the sector focused on Skills Programmes and Learnerships Greater diversification in programmes funded in line with NSDS III Industry prefers skills programmes Greater focus on full qualification

Non-Levy Paying Supported: 1 April 2005 to March 2011 Indicator Description 2005-2010 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 Total 3.2 NLPE 65 4 311 43 358 NGO 8 47 55 CBO 27 CB Co-Ops 49 34 83 395 124 523

Unemployed Learners in Learning Programmes: II 1 April 2005 to March 2011 Indicator Description 2005-2010 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 Total 4.1 Learnership 3210 2045* (NB: Inclusive of all learning programmes) 81* (NB: Inclusive of all learning programmes) 13 4 2742 1218 6103 Bursary 160 307 193 673 MTA 13 455 184 639 MTA 28 136 2 138 Internship 46 110 156 Skills Programme 347 351 145 369 1212 2045 81 373 515 3831 2076 8921

Comments Comment Anticipated Improvements Learners were indentured on apprenticeship from 2008/2009 onwards NSDS III emphasizes and prioritises apprentices, artisanship and trades For 2005/2006 and 2006/2007, the sector focused on Skills Programmes and Learnerships Greater diversification in programmes funded in line with NSDS III Industry prefers skills programmes Greater focus on full qualification

Learner Placement in Employment : NSDS II 1 April 2005 to March 2011 Indicator Description 2005-2010 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 Total 4.2 Learner placement and/or self employed 250 43 181 160 384

New Venture Creation and Support: 1 April 2005 to March 2011 Indicator Description 2005-2010 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 Total 4.3 NVC 255 81 7 76 280 444

General Quality Assurance: 1 April 2005 to March 2011 Indicator Description Total (2005-2011) 5.3 Accredited Providers 673 Registered Assessors 1 271 Registered Moderators 452 Learner Certification: Learnership 7 414 Learner Certification: Skills Programmes 15 796 Statement of Results 6 371

Budget Analysis for NSDS II 2005/6 * (R in Millions) 2006/7 * 2007/8 * 2008/9 * 2009/10 2010/11 (R in millions) Admin 25 840 25 755 31 295 39 804 40 094 40 824 Mandatory 128 370 122 242 150 615 186 898 200 469 204 118 Discretionary 45 681 48 524 60 181 74 729 80 188 81 647 *Actual Amount – No Budget

Performance Highlights SSP approved and signed off successfully over 5 year period Governance – unqualified audit for 2009/2010 Overachievement on Skills programmes 673 unemployed learners supported via bursaries Accredited 16 Public FET Colleges Overachievement of accredited ISOEs

Challenges Rural outreach-Career guidance and campaigns CETA Governance Non achievement of core NSDS targets Support for learners with disabilities Strategic alignment of NSDS II to sector needs Organisational structure Support for Rural Public FETs Internal Audit findings – Internal Auditors Partnership with Professional Bodies

Recorded building plans passed by larger municipalities at current prices: January to March 2010 versus January to March 2011 Estimates at current prices January – March 2010 January – March 2011 Difference in Value between January – March 2010 and January – March 2011 Percentage change between January – March 2010 and January – March 2011 Residential buildings   5 661 175 6 045 400 384 226 6, 8 Dwelling Houses 4 344 008 4 640 631 296 623 6,8 Flats and Townhouses 920 664 1 208 172 287 508 31,2 Other Residential Buildings 396 502 196 597 -199 905 -50,4 Non- Residential Buildings 3 344 115 3 658 636 314 521 9,4 Additions and Alterations 4 976 402 4 983 419 7 017 0,1 Total 13 981 691 14 687 455 705 764 5, 0 Source: Statistics South Africa

Housing and infrastructure-related government programs National Infrastructure Maintenance Strategy Breaking New Ground Expanded Public Works Programme Neighbourhood Development Grant Programme Comprehensive Rural Development Programme National Youth Service Programme

Human Settlements’ interventions 1 100 Imijondolo/ slums identified for upgrading Aim to create 80 000 rental opportunities by 2014 Mortgage Default Insurance’s potential to contribute to 600 000 loans Declared 75 Restructuring Zones in 7 provinces – R1.2 b for 2011-2013 National Priority interventions - Duncan V; Khtsng; D/sloot; Cornubia; Lephalale; and Drakenstein – R886.091 in 2011/12 and R1b outer year Human Settlements Development and the Urban Settlements Development Grants – R21.2 billion in the 2011/12 financial year R9 billion for 27 000 social housing units - Kempton Park inner city

Implications and Opportunities for the CETA Development of programmes and qualifications customised for the nature of the construction work required SMME development, including contractor development Training for New Venture Creation Development of Coops and CBOs Identification and commissioning of quality training providers Use of the interventions as workplaces for practical and experiential learning requirements Job placement incentives and conditions for funding by CETA

Implications and Opportunities for the CETA Mobilisation of the youth and women for greater participation in the construction industry CETA to establish projects and partnerships to enable the relevant number ofartisans for their sector to be trained, to qualify and become work-ready Address the low level of youth and adult language and numeracy skills to enable additional training Increase public sector capacity for improved service delivery and supporting the building of a developmental state

Towards a strategic Partnership with NDHS Commitment to support Emerging Contractor Development Programme Operationalization of MoU with NDHS Training support for 270 Contractors on NQF registered qualifications Contractor support to coincide with the building of 13 500 Houses nationally Incorporate NDHS strategic programmes into the CETA’s SSP Engage in collaborative research projects that relate to residential programmes Participate in national construction celebrations/workshop Support energy efficiency and Green Economy-compliant programmes though education and training Encourage NDHS to contribute to the 10% of the 1% training budget 26

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