1. 1 OVERVIEW OF DEAT’s PERFOMANCE FOR THE 2006/7 FINANCIAL YEAR By Director- General:Ms Pam Yako

2. 2 A Glimpse of DEAT Vision and Mission DEAT Programmes Performance per programme: Tourism Marine Coastal Management Biodiversity and Conservation Environmental Quality and Protection International Cooperation and Resources Administration CONTENTS Overview……..

3. 3 A GLIMPSE OF DEAT vision – “a prosperous and equitable society living in harmony with our natural environment”. DEAT’s AIM……

4. 4 A GLIMPSE OF DEAT mission – “leading SD of our Env & Tourism for a better life for all” through: Creating conditions for sustainable tourism growth for benefit of all South African. Promoting conservation and sustainable utilization of our natural resources to enhance economic growth. Protect and improve the quality and safety of the environment. Promoting a global sustainable development agenda. Transformation and good governance DEAT’s AIM……

5. 5 A GLIMPSE OF DEAT Programme 1: Administration Provides strategic leadership, corporate services, co-operative governance, international relations, organisational performance management and information management. Programme 2: Environmental Quality and Protection Protect and improve the quality and safety of the environment to give effect to the right of all South Africans to an environment that is not harmful to health and well-being. Programme 3: Marine and Coastal Management Promote the development and management of South Africa's marine and coastal environments in a way that ensures sustainability of the marine resources while maximising economic opportunities, job creation and poverty alleviation. Programmes of DEAT

6. 6 A GLIMPSE OF DEAT Programme 4: Tourism Create conditions for sustainable tourism growth and development for the benefit of all South Africans. Programme 5: Biodiversity and Conservation Promote the conservation and sustainable use of natural resources to improve economic growth and poverty alleviation. Programme 6: Social Responsibility and Projects Promote job creation through the Expanded Public Works Programme (EPWP) by implementing projects in areas such as sustainable land-based livelihoods, coast care, people and parks, growing the tourism economy and keeping South Africa clean. Programmes of DEAT

7. 7 STATUTORY BODIES Public Entities and agencies who continue to provide impetus through tourism marketing, research accounting and product development are: South African Tourism (SAT) South African national Biodiversity Institute (SANBI) Tourism Grading Council of South Africa (TGCSA) South African National Parks (SANParks) South African Weather Services (SAWS) Greater St Lucia Wetland Park Authority (GSLWPA) (Isimangaliso) Our Public Entities

8. 8 TOURISM Achievements: International Travel Statistics: Year 2006: Over 8 million per annum international arrivals Domestic Travel Statistics: Number of domestic travelers:12.1 million people Number of domestic trips:37.1 million trips Average Number of Annual Trips/Traveller: 3.1 trips Challenges: Local tourism remains biased towards Mpumalanga, Gauteng, KZN and Western Cape provinces). DEMAND SIDE

9. 9 TOURISM Achievements: Quality Assurance Conducted SA welcome training for Ports of Entry officials. A total 4905 establishments were graded by end March 2007. The number of graded rooms in the country was at 87281. Tourist Safety: Developed a national framework for Tourist Safety and Awareness (partnership with SAPS, Provinces, and the tourism industry) Industry adopted the Tourism safety and security strategy and implementation plan Safety and security fora established in 5 provinces (KZN, Gauteng, Limpopo, Mpumalanga and Western Cape) Tourism safety tips pamphlets distributed to all provinces. SUPPLY SIDE – linked to 2010

10. 10 TOURISM Achievements: Product development 2010 SMME Accommodation opportunities Workshops attended by 3500 SMME establishments (MATCH Partnership).. Developed investment packages for Product Development to improve competitiveness (in line with the GCP). Improved product information for Host Cities (GIS) Developed the 2010 FIFA World Cup Tourism strategy Challenge: Most establishments, particularly SMMEs, allow their graded status to lapse after one year, mainly due to insufficient knowledge of the system. Securing investment for product development SUPPLY SIDE – linked to 2010

11. 11 TOURISM Unblocking the Channels : Achievements - Visa restrictions: Acquisition of a South Africa visa for India and China has been reduced from 10 days to not more than 5 days. Established a forum to address challenges experienced in visa applications (constituted by DEAT, DHA and DFA) Developed a template on VISA requirements for new portfolio markets Challenges: To maintain a balance between tourism growth and security requirements., SUPPLY SIDE – linked to 2010

12. 12 TOURISM Unblocking the Channels: Achievements: Air frequency in portfolio markets: An airlift strategy, to inform aviation improvements for tourism growth requirements was developed in partnership with the DoT and DPE. As a result of cabinet approval of the Airlift strategy, tourism trade and investment workshops were held in the 5 Gulf Cooperation Countries (GCC) – Saudi Arabia, United Arab Emirates, Oman, Qatar and Kuwait. This is presently a largely untapped market which can offer huge returns on investment. CHALLENGES Air services bilateral negotiations stalled SUPPLY SIDE – linked to 2010

13. 13 TOURISM Achievements - Tourism Skills Development: Tourism Skills Audit conducted. A National Tourism Skill conference was convened. New sector skills plan has been developed A total of 433 (108 trained by DEAT and 335 by Theta) PDI Tourist Guides were trained. SUPPLY SIDE – linked to 2010

14. 14 TOURISM Achievements - BEE Charter and Scorecard implementation: Conducted a base line study on Industry state of transformation. 50% increase in procurement from graded establishments by National Government Departments. A self assessment toll for the tourism industry on BEE charter and scorecard compliance was developed. Developed a verification systems (to be revised once the Charter has been aligned to the Codes of Goof Practice). Developed a public sector compliance tool Challenge: Industry Compliance with the charter and scorecard is voluntary Industry Transformation

15. 15 TOURISM Achievements – SMME Support and 2 nd economy interventions: Number of SMMEs supported through Tourism Enterprise Programme (TEP) was increased by 32% Number of black tourist guides increased to 30% of the overall industry complement. As part of TEP, 993 SMMEs (of which 767 were PDI owned) were provided with support ranging from business linkages, to development of business plan or marketing plan (in partnership with Business Trust). The overall value of the transactions resulting from the linkages was R751 million. Developed a Tourism 2 nd economy strategy Industry Transformation

16. 16 MARINE COASTAL MANAGEMENT Achievements: Rights allocation : 2480 long-term fishing rights granted (over 8000 applications) 59% of rights holders are BEE compliant. Permits issued in 3 new fisheries (Experimental octopus, East coast round herring and Whelks) Survey on Horse Mackerel completed Issued 10 permits for boat-based whale watching and shark cage diving Regulatory environment: Published the Integrated Coastal Management (ICM) Bill for comments Gazetted Draft Marine Aquaculture policy for public comment Developed a policy on transfer of fishing rights. 3 Marine Protected Areas (MPAs) were finalized (Aliwal Shoal, De Hoop and Goukamma). Developed draft policy for subsistence and small scale fisheries. Challenges: Depletion of marine stocks Greater dependency of coastal communities on marine living resources. Policy gap around subsistence fisheries Rights allocation & Regulatory Env

17. 17 MARINE COASTAL MANAGEMENT Achievements: Scientific Research: Completion of economic studies on three commercial fisheries (Hake Handline, Hake Longline and Demersal Shark) Scientifically defensible stock estimates and recommendations were completed for 18 fisheries. Developed a graduate science programme to ensure skills development for MCM 2 voyages undertaken (Gough Island and Antarctica) Marion Island base was 60% complete. Monitoring and Compliance: Improved monitoring capacity through the implementation of the new Vessel Monitoring System. A joint initiative with the National Youth Service resulted in the recruitment of 900 volunteers to MCM. Officials at ports of entry are trained to administrate the International Convention on Trading in Endangered Species (CITES). Approximately an officer per 7.5 km of coastline (partnership with KZN Ezomvelo) Scientific research & Compliance

18. 18 MARINE COASTAL MANAGEMENT Achievements Full implementation of the new financial system- December, 2006 completed the draft Cost Recovery Framework, that defines how fishing levies are to be determined, Marine Administrative System (MAST) was developed and operationalised and is used to administrate the services rendered to the fishing industry. Revenue generation and legislative compliance challenges of Marine Living Resources Fund (MLRF) were resolved. About R106 million was recovered from industry for services rendered Challenges Poor industry compliance Turnaround Financial Strategy

19. 19 BIODIVERSITY AND CONSERVATION Policy and Legislation: The regulations in terms of the National Environmental Management: Biodiversity Act (Act No. 10 of 2004) on Threatened or Protected Species (TOPS), were gazetted.The regulations also included the list of threatened and protected species. Published an Elephant Management Policy Statement as well as Norms and Standards for management of elephant population. The department also developed a draft National Biodiversity Framework Developed a draft Risk Assessment Framework for GMO’s Policy, legislations & sustainability

20. 20 BIODIVERSITY AND CONSERVATION Conservation and Sustainability: As part of the Kids in Parks programme, aimed at building a future “conservation and sustainability” conscious nation, 7400 kids visited ten (10) national parks. The target was 5000 kids. A total of six GMO applications were assessed and recommended. One application for release of bio-control agent was received, assessed and recommended. Made significant progress in the integration of ecosystems that have been separated through man made boundaries within Southern Africa, through the removal of fences. Policy, legislations & sustainability

21. 21 BIODIVERSITY AND CONSERVATION Expansion of Protected Areas: Richtersveld was declared as a world heritage site. The Makuleke wetland gained recognition as a Ramsar site. In compliance with the Protected Areas Act, management plans for 19 national parks have been assessed. A Protected Areas Register has been developed and verification of the data contained in the register completed. Vaalbos was deproclaimed and a new park called Mokala National Park was proclaimed. Management capacity for MPAs was addressed Challenge: Balancing social and scientific needs in the management of protected areas (including post settlement development strategy preferences by communities). Expansion of protected Areas

22. 22 BIODIVERSITY AND CONSERVATION Working with our neighbours: Agreement was reached with Botswana and Zimbabwe on the establishment of the Limpopo-Shashe TFCA, which includes the Mapungubwe World Heritage site Transboundary conservation: The United Nations has praised the Benguela Current Large Marine Ecosystem (BCLME) Programme - a joint initiative between Angola, Namibia and South Africa as the flagship of international waters programme. Biodiversity and our neighbors

23. 23 ENVIRONMENTAL QUALITY AND PROTECTION Policy and Legislation : Environmental Impact Assessment (EIA) regulations were promulgated in April 2006 and came into effect on 1 July 2006. The Environmental Management Act (NEMA) Amendment Bill was published for public comment Identification and publication of sensitive areas initiated for Gauteng and the Western Cape. EIA Applications, appeals and processing: 5 300 EIA applications backlog (DEAT and provinces) reduced to just under 3 200. of this, DEAT backlog was reduced by 75%. Provided EIA frameworks and guidelines and established a new Capacity and Support Directorate to focus on assistance to provinces. responses were provided within the given timeframes in cases of appeal. 100% success rate against court challenges with regard to authorisations Environmental Impact Assessments

24. 24 ENVIRONMENTAL QUALITY AND PROTECTION EIA Capacity and Support Initiatives: Provincial training on the new EIA Regulations was concluded by end March 2007. Service providers appointed in 7 provinces to assist with eradication of EIA backlogs. Reduced backlog by 40% by the end of the financial year at provincial level. Environmental Management Frameworks initiated in 7 metro / district councils National Environmental Authority System (NEAS): Developed and commenced the implementation of an electronic EIA reporting and tracking system. Compliance with environmental management system: Guidelines: Developed guideline on the classification of emergency incidents Developed guidelines for the inspection of waste facilities Developed guideline for inspecting hazardous waste disposal sites Developed guideline for priority setting Env Impact Assessments & Compliance

25. 25 ENVIRONMENTAL QUALITY AND PROTECTION Environmental Management Inspectorate (EMI) – “Green Scorpions” –capacity building: 890 EMI were trained and 798 have been designated. EMI ID cards issued to all designated EMIs. National EMI brand developed and rollout countrywide. Hosted workshops attended by 90 Magistrates, to enhance skills and knowledge in environmental crimes. EMI specialised training in Forensics rolledout Prosecutor Manual on Environmental Crimes completed. Policy and Legislation: The National Environmental Management Act (NEMA) amendment bill on enforcement is finalized and currently in parliament, the bill will expand the mandate of EMIs to ECA and APPA. ENV Compliance & Green Scorpions

26. 26 ENVIRONMENTAL QUALITY AND PROTECTION Enforcement Achievements: 2 strategic-sector based national compliance and enforcement projects launched with Provinces and Munics. 11 new dockets in major investigations opened and 6 handed over to NPA for prosecution. 1 criminal conviction and sentence for pollution crime. 14 administrative notices issued to companies for non-compliance. ENV Compliance & Green Scorpions

27. 27 ENVIRONMENTAL QUALITY AND PROTECTION Policy, legislation and regulatory environment The draft National Environmental Management: Waste Management Bill is finalized and currently in parliament. Tyre regulations were published for public comment. Draft agreements were developed with the Paper and Plastic industries. The finalization of these agreements has been delayed to ensure that they are in line with the National Waste Management Bill. The Asbestos regulations were redrafted and published for comment. Waste Management and Capacity Landfill permitting backlog established and a management plan is in place to overcome the backlog. Permits now being issued timeously. Audit of waste management service delivery undertaken. Mobilised resources for Thor-mercury and secondary asbestos cleanup. ASP and NIP projects underway. Pollution and Waste management

28. 28 ENVIRONMENTAL QUALITY AND PROTECTION The air quality priority areas’ strategy is finalised and being implemented. The 1st National Priority Area was declared (Vaal Triangle) in April 2006. APPA review on track and key sectors consulted. Equipment for 6 monitoring stations was been purchased, sites identified and installation completed, the stations are located as follows: –Fons Lumins Secondary School, Diepkloof –Thuto lore Secondary School, Sharpville –Kliprivier Police Station, Kliprivier –Riverside High School, Vereeninging –Saul Tsotestsi Sport and Recreation Centre, Vanderbijlpark –Iketsetseng Comprehensive Secondary School,Zamdela Air Quality management

29. 29 ENVIRONMENTAL QUALITY AND PROTECTION Established a Priority Area Governance Committee, representing stakeholders in priority areas with a key role of making decisions on air quality issues within the priority area. A New priority area “the highveld” was identified. Commenced work on the development of the 3rd green house gas emission inventory Air quality Makgotla aimed at building capacity within communities and industry are held annually. LTMS process on track with full stakeholder participation. Air Quality management

30. 30 ADMIN: INTERNATIONAL COOPERATION Pursuing a global SD Agenda: Department participated in negotiation of SA’s position in the following global key engagements: –In collaboration with the National Treasury, the department hosted the Global Environmental Facility (GEF) Assembly in 2006. –Sessions of the UNCSD as the official global mechanism for the implementation of the outcomes of the WSSD. –Stockholm Convention on the Management of Persistent Organic Pollutants. –Rotterdam Convention on the Prior informed Consent. –Basel Convention on the management of the transboundary movement of hazardous waste. Global Sustainable Dev Agenda

31. 31 ADMIN: INTERNATIONAL COOPERATION Continues….. United Nations Framework Convention on Climate Change World Trade Organisation negotiations on Trade and Environment Cartagena Protocol on Bio safety United Nations Convention on combating desertification The department achieved and exceeded the targeted 50% of South Africa positions at international negotiations. South Africa’s reputation as a leading player in climate change was reinforced when we hosted the informal Ministerial Indaba in the Kruger National Park in June 2006 as a follow-up to the Greenland dialogue launched in 2005. Completed a Country report on the International Convention on Trade in Endangered Species (CITIES), which informed South Africa’s international CITIES negotiations. Global Sustainable Dev Agenda

32. 32 ADMIN: INTERNATIONAL COOPERATION Resources mobilisation: Finalising the new European Union Multi-Annual Indicative Programme, with an allocation of Euros 980 million of Euros funding for South Africa from 2007-2013. This finding includes the environment portfolio. Environmental cooperation with Norway. This R80 million agreement covers fisheries, biodiversity, pollution, waste and environmental management, with R40 million funding each for environment and fisheries until 2010. Environmental cooperation with Denmark. This urban environmental management programme will provide approximately R250 million of Danish funding over the next five years. Global Sustainable Dev Agenda

33. 33 ADMINISTRATION Planning and Reporting: –Adhered to planning and reporting requirements (as per legislative prescripts) –Published state of the Environment report – June 2007 Improving Cooperative Governance: –The Intergovernmental Fiscal Review (IGFR) chapter on Environment was approved by MINMEC, awaiting approval by the Minister of Finance. –Provincial budget Structure was approved by MIMNEC, further consultations with working groups are underway and will be submitted to the Treasury Minister Cooperate and Corporate Governance

34. 34 ADMINISTRATION Transformation and improved performance management: 49% expenditure on BEE, which was on target. This was lower than 2005/7, which was 57%, due to high demand in professional services and limited capacity availability in designated business communities. The department’s audit report from the Auditor General was unqualified In the process of developing a balanced scorecard based performance management system Cooperative & Corporate Governance

35. 35 ADMINISTRATION Improved Service Delivery Initiated a dedicated forum with NGO’s that meets twice a year The department’s website, hosted with 98% uptime and a 19% increase in traffic during the year, Departmental website visitor feedback mechanism was created. The development of the customer satisfaction index is still underway. Established dedicated mechanisms to facilitate relations with the various stakeholders. The department completed its Master Systems Plan (MSP), which is aimed at improvement and automation of the organisation’s internal and external business process. Service Delivery Improvement

36. 36 ADMINISTRATION Internships: 94 interns are currently in the programme. Developed a graduate science programme to ensure skills development within Marine and Costal Management Part-Time Bursaries: 72 Part-Time Bursars active since 2006 Full-Time Bursaries: 41 Full-Time Bursars active since 2006 28 Bursaries awarded in 2007 (additional) 17 bursars have been placed against the establishment in 2007, 3 others in other government departments and 1 in Private Sector. One hundred and eight interns were accommodated in the department and by December 2006, already 29 had been absorbed into employment in the public service. The department also established links with employers in private sector for placement of graduates from the internship program, over 20 people have been placed on permanent employment through these efforts. Over and above all these, has two interns under the Director- General’s direct mentorship - This programme takes the interns through almost all facets of a Director-General’s work and is the first of its kind in the country. A programme for scientists in fisheries has been developed. DEAT Skills Development

37. 37 ADMINISTRATION Develop and retain a representative and performing team: Achieved 46% Women, which was on target Achieved 79%: Black (The target was 72%) Achieved 0.61%: People with disabilities (this was below target of 2%) – this was lower than the previous year’s achievement of 0.9% due to the increase in the structural composition of the departmental staff complement. Vacancy rate was reduced from 30.9% to 25% Further reduction in turnover rate from 18% to 15.1% The challenge remains that the department has to compete with the private sector and is often viewed by the private sector as the main breeding ground for the environmental professionals. Legal Services: A special unit was established in 2006 to deal with law reform issues and litigation. This has served to boost capacity significantly, from the previous total of five staff to 12 staff in Pretoria and 6 at MCM in Cape Town. Developed a Protocol on dealing with appeals, with the aim of speeding up the legal processes involved. Challenge: SMS turnover rate HR Representativity, efficiency & Legal capacity

38. 38 ADMINISTRATION Development Communications During 2006, a standout achievement was the launch of Indalo Yethu, Developed a draft Stakeholder Relations and Community Outreach strategy to enhance communications with the public and stakeholders Information Technology The highlight achievement of 2006/7 was the development of the Marine Administration System (MAST) for the Marine and Coastal Management (MCM) branch in Cape Town. Managing our scarce financial resources The audit report for the previous financial year contained 6 Matters of Emphasis. All of these were addressed during the year in compliance with the Public Financial Management Act (PFMA). Expenditure was over 99% Comms, IT and Finance

39. 39 ADMINISTRATION Health, Wellness and social responsible Employees: Continuous management the HIV and AIDS programme. Provision of reasonable accommodation for people with physical disabilities. The Department donated food to a hospice in Atteridgeville and repainted the Philadelphia School for the Blind in Soshanguve. These projects do not use taxpayer funds, but rely instead on the generosity of donations from DEAT staff Employee Wellness programme

40. 40 Social Responsibility Programme & Projects Through the EPWP of the department that focuses on Tourism, Environment and Culture initiatives, the following were achieved: Creation of 459 permanent jobs Creation of 13 887 job opportunities The skills support initiatives resulted in 88266 training days. In terms of environmental projects, 15 wetlands and 2062 hectares of land were rehabilitated, and 850km of coast and rivers were cleaned. The department provided support to a total of 55 projects on Tourism Product development. In addition, 12 waste recycling and minimisation projects were funded. A total of 1198 learners were registered on skills development programmes and 189 others were registered for learnerships 56.75% of the budget was used in Project Consolidate municipalities and 23.75% was used in the nodes. EPWP (jobs, skills and the Env

41. 41 ANNUAL FINANCIAL STATEMENTS 2006/2007

42. 42 AUDITOR-GENERAL REPORT Unqualified audit report No Matter of emphasis Other matters: Non-compliance with applicable legislation (Risk assessment to be conducted regularly) Value for money matters – Human resource management (25% vacancy rate)

43. 43 The Audit Committee concur and accepts the conclusions of the Auditor-General on the Annual Financial Statements. The Audit Committee is of the opinion that the audited Annual Financial Statements fairly present the position and performance of the Department, based on the audit done and the report of the Auditor-General. AUDIT COMMITTEE REPORT

44. 44 Budget and expenditure for 2006/07 ProgrammeBudgetExpenditureVarianceExpenditure as % of final Appropriation R'000 % Administration212,385212,3067999.96 Environmental Quality and Protection201,150199,2321,91899.05 Marine and Coastal Management324,191324,04814399.96 Tourism547,248 0100 Biodiversity and Conservation329,279 0100 Social Responsibility and Projects447,551 0100 Total2,061,8042,059,6642,14099.90

45. 45 THANK YOU