Construction Education and Training Authority [CETA] Briefing To the Labour Portfolio Committee in Parliament By: Themba Dlamini Chief Executive Officer/Accounting Officer 10 th August 2004 Good Hope Chamber, Parliament CAPE TOWN

Purpose of Presentation  To brief members of the LABOUR PORTFOLIO COMMITTEE of the CETAOF THE activities in terms of Section of the SKILLS DEVELOPMENT ACT  To highlight critical areas of the CETA in terms of: SKILLS PLANNING SKILLS PLANNING NSDS NSDS GRANT DISBURSEMENT GRANT DISBURSEMENT QA ASSURANCE QA ASSURANCE GOVERNANCE GOVERNANCE

Skills Planning: Sector Profile  Of the enterprises, about 62.5% are registered with SARS and only 30.6% are paying levies  Of the levy paying employers: - approximately 96% are SMMEs Workplace Skills Plans received out of levy paying companies. That is 8% of levy paying companies are participating in the Skills Development Strategy

Skills Planning-Challenges/Constraints facing CETA Delivery Processes  Inadequate research to identify sector training needs in order to provide appropriate intervention  Availability of appropriate legislation to encourage employer organisations to submit WSPs and Annual Training Reports (ARTs)  Impact of HIV/AIDS in the workplace and the ability to anticipate the impact to address skills gaps resulting from this pandemic  Duration of contracts versus intake of learners on learnerships programme

Skills Planning: Sector Profile  The scope of the CETA coverage as specified in the list of the National Economic Sectors determined by the Minister of Labour in terms of Section 9 (2) of the Act includes SUBSECTORNO. OF ENTERPRISESNO. OF EMPLOYEES Contractors Professionals Materials Manufacturing Other TOTAL

Skills Planning: Challenges/Constrains facing CETA delivery processes  Accreditation of emerging SMME training providers  Brain drain due to globalisation and economic status of sector constituents  Design & development appropriate curriculum  Lack of infrastructure to absorb the unemployed  Inadequate processes/strategy to address skills development needs in the SMME, non levy paying and exempt levy sub- sector  Inadequate communication channels with affiliated government departments

NSDS Objective 1: Developing a culture of high qualify life-long learning The benchmark NSDS targets have been adjusted by CETA to realistic scenario in the industry

NSDS Objective 2: Fostering skills development in the formal economy for productivity and employment growth

NSDS Objective 3: Stimulating and supporting skills development in small businesses

NSDS Objective 4: Promoting skills development for employability and sustainable livelihoods through social development initiatives

NSDS Objective 5: Assisting new entrants into employment

2000/012001/022002/032003/04 Disbursable Levy Income R22,5 m R67,2mR93,5mR115m No. Levy Payers Grant Recipients/Levy Payers 3%6%6%10% No. of Grant Recipients Grants Paid or Accrued R10mR20,5mR25,5mR71.7m Projects Funded 485,776R8,7mR12,2mR14.8m Total DisbursedR10,5mR29,3mR37,8mR86.5m Disbursements47%44%40%75%

NOF ACCREDITED: SIXTY THREE (63) PER PROVINCE –GAUTENG – 34 –MPUMALANGA – 2 –LIMPOPO – 5 –NOTH-WEST – 2 –EASTERN CAPE – 5 –WESTERN CAPE – 2 –FREE STATE – 2 –NORTHERN CAPE – 2 –KWAZULU NATAL – 9 FOURTEEN OF THE ABOVE-MENTIONED ACTIVELY INVOLVED IN ROLLOUT OF CETA LEARNERSHIPS ALSO OPERATING OVER MORE THAN ONE PROVINCE AND IN RURAL AREAS CETA ACCREDITED TRAINING PROVIDERS

Governance The CETA board is composed of representation from the following:  National Governtment (2)  Organised Business (10)  Organised Labour(10)  Professional Council(1) Decision Making Process:  EXCO  Council

Conclusion  The CETA board has endorsed the Skills Development Strategy and has introduced the intervention programmes to address some of the challenges.  CETA Reserved or unclaimed levies have re-directed into to fund the following initiatives: -HIV/AIDS -ABET -Skills Programmes -Learnerships -Employment Skills Development Agency (ESDA) -Standard Generating Bodies -Bursary Scheme -Research and Development and others

Thank You For more information contact: Themba Dlamini Tel: /05 Fax: