PRESENTATION TO PORTFOLIO COMMITTEE: ARTS & CULTURE NOVEMBER 2005

“Africa will write its own history, and it will be, to the North and to the South of the Sahara, a history of glory and dignity” PATRICE LUMUMBA

DEPUTY MINISTER MS NTOMBAZANA BOTHA “A critical factor in the transformation of this sector was to devise legislation which did not simply provide an enabling framework in the historical areas such as the performing arts, but also to pave way for new areas of engagement such as the film industry and its development as a viable industry which contributes to the economic development, job creation and emergence of a south African aesthetic in this sector”

The charterist character of the “Value Charter” is encapsulated in the moral imperative which reads: “It is a national imperative to create facilities for ordinary South Africans to bear influence in the expression of their own images, thereby deepen democracy and create prosperity. The National Film & Video Foundation strives for the realisation of this noble ideal.” VALUE CHARTER

The Moral Imperative together with the the Value Charter could be the basis for: MORAL IMPERATIVE & VALUE CHARTER Legitimate political, Policy and programme formulating and Consensus between the state, markets and citizens.

VALUE CHARTER One of critical factors for the formation of the distinctive and systematic set of normative relations whereby the actions of one stakeholder in the film sector are perceived as meriting characteristic response by other stakeholders in the societal scale.

Social contract. Social cohesion. Equity and justice. VALUE CHARTER

Articulates desirable ends about the structural objects of the film sector that are currently unevenly distributed in our society. Reminds us that film and video media are not about “pacifying the nation with forms of escapism”. Guards against the entertainment myopia of film. VALUE CHARTER

PLANNING PROCESS 1999/2000 November 2000 August 2001 Profile 2002: Towards a viable South African Film Industry. Price Waterhouse Coopers study sponsored the now defunct DACST and the NFVF. European Union - South Africa Film Symposium. Meeting opened by Mr Rob Adam DG of DACST. Presentations made by the then Dep. Minister of Finance Mr Mandisi Mpahlwa and Ambassador Laider, Head of the delegation of the European Commission to South Africa. NFVF Indaba supported by EU Contributors: Dr Rob Adam, DG of DACST Mr Shan Moodley, Chairperson NFVF Mr Eddie Mbalo, Newly appointed CEO of the NFVF Focus: · The role of the NFVF in relation to government & the industry · Consensus on critical recommendations to Cabinet

PLANNING PROCESS February 2002 June 2002 November 2002 October 2002 NFVF strategy formulation process begins R35 million for 3 years given as a stop-gap for the Feature Film Fund. The understanding being that by the time the NFVF strategy is completed the Feature Film Fund will be a permanent feature on the NFVF budget in order to comply with NFVF Act Section 8(1) (3). “The purpose of the Film & Video Initiative is to provide funding for feature film and video projects”. Workshop between DAC and NFVF. DAC represented by Mr Steven Sack and Ms Lindi Ndebele. NFVF AND DAC WORKSHOP TERMS OF REFERENCE NFVF submits strategy and Value Charter for official adoption. Mr Themba Wakashe officiated.

PLANNING PROCESS April 2003 June 2003 December 2003 NFVF submissions of the strategy to the Technical Committee of MINMEC. It was resolved that DAC will call a workshop with provinces to deliberate about the implication of the NFVF strategy to the Provincial Strategies. The meeting was not called. The NFVF briefs the DG Prof. Itumeleng Mosala about the NFVF plans and to induct the newly appointed Council. A proposal for the follow-up on the Inter- provincial workshop was made. The workshop never took place. The Content Industry strategy was co-formulated by DAC, DOC, DTI, NFVF and SARS to galvanise a Sectoral approach & incentive programme. The role of the NFVF was clarified and affirmed the Value Charter. The Cabinet approved the Content industry strategy based on the Sectoral Programme Approach.

PLANNING PROCESS April 2004 June 2004 NFVF presents a business case for the NFVF programmes. NFVF submitted draft Cabinet Memo to DAC to motivate for the Cabinet Approval for the programme.

THE BREAKDOWN AND PARALYSIS DAC response: the Department will prepare a general CABINET MEMO, moving away from the sectoral approach underpinned by the planning process that started in the year The NFVF is allocated R24 million, a budget not informed by the strategic process. R35 million for feature film funding lapsed. Nothing is done to act on the Cabinet Authority on the content industry strategy.

Agency role. Inter-institutional relations. THE AGENCY ROLE OF THE NFVF AS THE ORGAN OF THE STATE AND THE PROCESS It is therefore important to clarify assumptions in this regard so as to achieve effectiveness, efficiencies and inter-institutional compatibility.

The NFVF could exercise its powers and mandate only through DAC without any flexibility to engage other organs of the state, industry and society. OPTION 1 ON THE ISSUES RAISED In this scheme of things the NFVF is nothing but the extension of the DAC bureaucracy.

OPTION 2 ON THE ISSUES RAISED Parliamentary allocation through the DAC. However, the institution is a broker for both the development and growth of the film sector. The NFVF would also be entitled to broker other service deals with other government and the spheres of government, including DAC.

FILM INDABA 2001 & 2005 According to the Film Indaba and the workshop that was held between the DAC and the NFVF, it was the latter form of the relationship that was adopted. This position was re-affirmed at Indaba 2005

Film is a concurrent competency between the three spheres of government. The Charterist view. Accountable autonomy of the NFVF. Commensurate resources to the mandate. Bracing the DAC and NFVF for rapid growth. TURN AROUND KEY SUCCESS FACTORS

Film is a concurrent competency between the three spheres of government as well as a number of government Departments and institutions Intergovernmental, departmental collaboration should be guided by Section 41 of the Constitution on the principles of co-operative government. CONCURRENT COMPETENCY

SECTION 41 OF CONSTITUTION “All spheres of government and all organs of state within each sphere must h)cooperate with one another in mutual trust and good faith by – i)fostering friendly relations; ii)assisting and supporting one another; iii)informing one another of, and consulting one another on, matters of common interest; iv)co-ordinating their actions and legislation with one another; v)adhering to agreed procedures; and vi)avoiding legal proceedings against one another.

The focus should be on how the film sector is transformed thus contributing to nation building and global competitiveness. This end cannot be achieved by bureaucratic orthodoxy cast in departmental silos. Therefore, the Value Charter should be adopted as a National position. To that effect Cabinet approval of the Value Charter is necessary. THE CHARTERIS VIEW

The NFVF should be a broker for both development and growth of the film sector across government spheres, departments and institutions However the Parliamentary allocation should be effected through the DAC. ACCOUNTABLE AUTONOMY OF THE NFVF

The resources allocated to the NFVF should be commensurate and congruent to the NFVF mandate provided in terms of the NFVF Act. The current allocation was based on the budget for the founding phase and establishment phase. It is not appropriate to the rapid growth phase. The focus during the rapid growth phase should be on creating the threshold point to address the market failures in South African film industry while at the same time building the Relative Competitive Advantage at a global scale. COMMENSURATE RESOURCES TO THE MANDATE

It is this kind of a mindset that will make South Africa a strong partner in co- productions. The funding should be sourced from all the spheres of government, competent government departments and institutions. COMMENSURATE RESOURCES TO THE MANDATE

The NFVF and the DAC should formulate and enter into a Service Level Agreement (SLA) The SLA should include how the NFVF, DAC and the Arts and Culture Ministry will jointly approach other state departments and institutions which could add value to the Value Charter. Such institutions are mentioned throughout the Value Charter. BRACING THE DAC, NFVF & OTHER INSTITUTIONS FOR RAPID GROWTH

Appropriate resources should be allocated to the NFVF. The Sectoral approach was both the spirit and the letter of all consultative processes and the Microeconomic Reform Framework that was prescribed by Cabinet in The MTEF Review is the main window of opportunity to factor the proposed programmes and business plan. BRACING THE DAC, NFVF & OTHER INSTITUTIONS FOR RAPID GROWTH

Development of NFVF Strategy and Value Charter. Development of Business Plan. Development of NFVF Programme Plan. Cost of programmes for 2006 is R54,6 million. Current funding allocation is R24,6 million. Receipt of the feature film fund of R35 million over past 3 years. BUDGET PROCESS

MULTIPLIER EFFECTS R200 Million investment from direct allocation will result in strategic multiplier to R1.2. billion over 5 years. The investment multiplier effect 6. Medium size production of R15 to R20 million creates 200 jobs. Minimum foreign trade ratio as per co- productions 20:80. International benchmark funding ratio is 19%. The last time assessment in RSA the FR is less than 1% Profile 2000.

Value Chain Matrix Distribute Distribute Package Package Publish Publish CreateCreate Governme nt Media Houses Design studios Broadcasters Creative Talent Film Studio & Location Production Music Talent Auxiliary & professional services Equities, Copy Rights & Support Media and Promo Local Record Labels Government Institutions Programmes Post Production Film & Video for cinema Film & Video for Transmission Film & Video for Transmission Legal, Accounting Documents, Contracts, Banking FundingAgencies Promotio n e.g.TISANFVF Informatio n Services users & providers Logistic Service Providers Exhibitors: Internet, GSM, Multimedia Internet, GSM, Multimedia Networks

Production Documentary Features Shorts Animation IMPACT OF FEATURE FILM FUND

R&D Documentary Features Shorts Animation TV Series IMPACT OF FEATURE FILM FUND (cont)

Training Bursaries Programs Distr. & Marketing IMPACT OF FEATURE FILM FUND (cont)

Increased funding to other genres – especially documentaries. Increased funding to training progammes. Increased number of bursary students funded. Support given to more local film festivals. Increased participation at international festivals. IMPACT OF FEATURE FILM FUND (cont)

FEATURE FILMS Drum Max & Mona The Flyer Tsotsi Twist U-Carmen eKhayelisha The Story of an African Farm Forgiveness Yesterday Zulu Love Letter 34 South God is African Promised Land Proteus Wooden Camera

South African Love Story Born into the Struggle Maxine's Journey Es'Kia Mphahlele Karoo Kitar Blues Crayfish Catchers The Legacy of Muhammad Spirits of The Uhadi Sabrina A South African Christmas Sophiatown DOCUMENTARIES

AVEA SCRAWL CVET SASWA WITS Feedback Project The Animation Workshop 74 Bursaries TRAINING PROJECTS

30 Local and international awards including: U-Carmen e-Khayelitsha – Golden Bear – Berlin Drum – The Golden Stallion – Fespaco Drum – The Best Art Direction – Fespaco Zulu Love Letter – Best Actress - Fespaco Zulu Love Letter – European Union Prize - Fespaco Max and Mona – Best First Time Director (Feature) – Fespaco Beat the Drum – SIGNIS Prize – Fespaco Beat the Drum – Prize for Health and Security at Work – Fespaco Beat the Drum – City of Ouagadougou Prize – Fespaco AWARDS

Funding of projects - The NFVF will be unable to fund as many projects as in previous 2 years. - The rand value attributable to projects will decline. Staff Capacity - Key positions currently vacant. - Current staff overburdened due to lack of resources. NFVF ACT - Administration expenses exceeds maximum of 25%. - Based on current allocation this equates to R 6.15 million. - Inability to meet all of the mandates set out in Act (e.g co- ordination of film at a National scale, policy development, conduct industry research, management of co-production treaties). CHALLENGES

Other Statutory Obligation - Non compliance with PFMA due to lack of resources, e.g. Supply Chain Management. NFVF Programmes - Inability to implement NFVF programmes effectively. The incrementalist budget approach is clearly not sufficient to deal with the institutional requirements for service delivery. CHALLENGES (cont)