1. 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

2. 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

3. Skills Planning: Sector Profile  Of the 35000 enterprises, about 62.5% are registered with SARS and only 30.6% are paying levies  Of the levy paying employers: - approximately 96% are SMMEs - 863 Workplace Skills Plans received out of 10746 levy paying companies. That is 8% of levy paying companies are participating in the Skills Development Strategy

4. 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

5. 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 20 300 201 720 Professionals 9 450 81 000 Materials Manufacturing 3 850 33 900 Other 1 400 13 500 TOTAL 35 000 330 120

6. 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

9. 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

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

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

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

13. NSDS Objective 5: Assisting new entrants into employment

14. 2000/012001/022002/032003/04 Disbursable Levy Income R22,5 m R67,2mR93,5mR115m No. Levy Payers 71297524907411082 Grant Recipients/Levy Payers 3%6%6%10% No. of Grant Recipients 2284675761032 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%

15. 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

16. 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

17. 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

18. Thank You For more information contact: Themba Dlamini ceo@ceta.co.za Tel:011-265-5904/05 Fax: 011-265-5927