1. VOTE 30: ENVIRONMENTAL AFFAIRS MTEF for the years 2014/15 - 2015/16 – 2016/17 1 Ms Nosipho Ngcaba Director General Department of Environmental Affairs 15 October 2013

2. Presentation Outline MTEF 2014/15 – 2016/17 -Indicative Allocations per programme -Indicative Allocations per economical classification -Notes to Indicative Allocations -National Treasury: Proposed Cuts/Savings -Additional Funding Requests over the MTEF 2

3. Indicative Allocations per Programme 3 Programmes2014/152015/162016/17% Growth 1.Administration R’000 630 158 R’000 661 058 R’000 699 4555.8% 2.Legal, Authorisations and Compliance Strategic Infrastructure Projects (SIP - Authorisation processes) 113 778 32 000 120 346 29 000 127 891 0* 6.3% (100.0%) 3.Oceans and Coasts388 432424 617448 2545.6% 4.Climate Change and Air Quality247 708260 149274 5825.5% 5.Biodiversity and Conservation598 870635 570669 9685.4% 6.Environmental Programmes3 494 3473 918 5234 128 3265.4% 7.Chemicals and Waste Management72 21079 22283 9976.0% Total5 577 5036 128 4856 432 4735.0% National Treasury initiated baseline reduction for the Integrated Permitting Systems (non-recurrent project) Treasury was approached to clarify the impact of the cut

4. Indicative Allocations per economical classification 4 Programmes2014/152015/162016/17% Growth 1. Current Payments R’000 1 967 841 R’000 2 069 079 R’000 2 157 9184.3% Compensation of employees Goods and Services* 697 600 1 270 241 747 300 1 321 779 796 623 1 361 295 6.6% 3.0%* 2. Transfer Payments3 547 2193 994 0304 205 7145.3% Departmental Agencies Foreign Governments and International Organisation Public Corporations and Private Enterprises Non-Profit Institutions Expanded Public Works Projects* 1 236 472 12 890 0 13 825 2 285 162 1 372 053 13 485 300 000 12 932 2 295 560 1 444 772 14 200 315 900 13 617 2 417 225 5.3% 3. Payments for Capital Assets62 44365 37668 8415.3% Machinery and Equipment62 44365 37668 8415.3%* Total5 577 5036 128 4856 432 4735.0% * Included in Goods & Services is small contractors for clearing AIS +-R200 Million per annum and New Building Unitary payments +-R120 Million per annum * Included in Capital Assets is Eco Factories budget of +-R43Million and IT infrastructure of R4million per annum.

5. * Goods and Services Analysis per item 5 Programmes2014/152015/162016/17 Fixed and Earmarked Allocation: Office Accommodation Unitary Payment new Departmental Building International Membership Fees Communication Systems and Data lines: SITA Auditors: External & Internal Strategic Implementation Programme (SIPS) Research and development: Oceans and Coasts Laboratories: Occupational Health & Safety Wildlife Information Management Unit (new) SA Algoa: Manning and Operating SA Agulhas II: Manning and Operating Antarctica & Islands: Fuel, Groceries, Satellite, et Antarctica & Islands: Helicopter Services EPWP: Small Projects Alien Vegetation clearing (contractors) R’000 40 000 120 000 15 986 40 000 10 565 32 000 20 000 10 000 10 600 45 000 93 412 12 540 32 897 200 000 R’000 40 944 120 000 16 786 41 164 11 094 29 000 20 000 0 11 000 48 000 98 172 13 167 34 542 200 000 R’000 48 991 120 000 17 625 43 222 11 648 30 000 21 000 0 11 550 50 400 102 976 14 766 36 269 200 000 Total Fixed and Earmarked Allocation683 000683 869708 447 Budget available for other operational expenses, inspections, personnel development, stationary, travel & subsistence, advertising, bursaries, other environmental agreements/stakeholders 587 241637 930652 848 Total Goods & Services1 270 2411 321 7991 361 295

6. Proposed Cuts by National Treasury over the MTEF 6 Item2013/14 R’000 2014/15 R’000 2015/16 R’000 2016/17 R’000 1. Compensation of Employees 0(17 440)(28 024)(19 915) 2. Travel and Subsistence 0(7 700)(11 400)(15 100) 3. Corporate Services 0(17 788)(28 736)(30 175) 4. Green Fund* (300 000)200 000(100 000)0 Total(300 000)157 072(168 160)(65 190) Previous years baseline cuts of 1%:2%:3% were already effected by NT. These additional proposed cuts & impacts were discussed with NT 31 July 2013. *Balance remaining for green fund budget is +-R200 Million per annum

7. Notes to Indicative Allocations & Spending pressures over MTEF Indicative Allocations -Compensation of Employees growth based at 6.6% cost of living adjusted per year -Use of Goods and Services growth at 3% (because of 1%, 2% & 3% annual cuts) -Budget for integrated permitting system reduced on outer years. Impact discussed with National Treasury -Allocations to Departmental Agencies, and Expanded Public Works Projects (overall increase of 5.3%) Identified Spending Pressures over MTEF Inflationary increases: -Vessel operating cost -Helicopter services -Antarctica and Islands Research - fuel and supplies -Funding changes to the establishment increased capacity, coordination, strategic infrastructure support, monitoring, enforcement & waste management functions - Funding increases in procurement of goods & services 7

8. Additional Funding Requested 8 ProgrammeAdditional Funding Proposal2014/152015/162016/17 1.AdministrationGreen Solar Electricity Stations Spatial Data Infrastructure for the Environmental Sector Implementation of Integrated Permitting System R’000 60 000 16 500 35 000 R’000 60 000 26 000 20 000 R’000 60 000 18 000 15 000 2.Legal, Authorisations and Compliance Deployment of Environmental Management Inspectors at South African ports of entry and exit 20 04021 75024 200 3.Oceans and Coasts Baseline shortfall to cover SA Agulhas II and Antarctic Support Replacement of Gough Base Building New Research Laboratories: Marine: Cape Town 34 597 15 000 50 000 36 603 90 000 150 000 38 726 40 000 100 000

9. Additional Funding Requested.... cont 9 ProgrammeAdditional Funding Proposal2014/152015/162016/17 4.Climate Change and Air Quality Management South African Weather Services : Implementation of the ICT Master Systems - Skills Development Plan & implementation for weather and climate impact science -Improved Climate Data Management Systems - Sector Specific weather and climate applications R’000 57 370 10 000 0 1 900 R’000 33 611 10 000 2 555 9 300 R’000 34 420 10 000 611 2 800 5.Biodiversity and Conservation Rhino Poaching CITES COP 17: Hosting National Biodiversity Research Strategy implementation Management Effectiveness – Protected areas infrastructure, community facilitation, Baseline adjustment for COE for Isimangaliso, updating permitting system and strengthening scientific services for non detriment findings, pilot projects for biodiversity economy interventions Building Biodiversity Economy and Sustainable Use - National Compound Library, 40 000 0 100 000 156 491 41 600 90 000 22 000 120 000 91 371 43 680 11 350 18 000 150 000 41 316

10. Additional Funding Requested.... cont 10 ProgrammeAdditional Funding Proposal2014/152015/162016/17 6.Environmental Programmes Environmental Protection and Infrastructure Projects - Famine Weed Programme (world’s worst invasive species) - Bio-security, - Youth Jobs in Waste Project - People and Parks Programmes - Development of a Platform for Investments in Ecosystem Services in Southern Africa R’000 10 885 40 000 70 000 0 12 420 R’000 14 265 47 000 120 000 50 000 11 681 R’000 18 274 56 500 200 000 90 000 12 382 7. Chemicals & Waste Management Environmental Impact Assessments Development of a standard for Waste Derived Fuel (WDF) and Standard Operating Procedure (SOP) 5 000 2 200 5 250 2 400 5 513 2 600 TOTAL749 3011 058 3241 008 452

11. Public Entities MTEF Allocation 2013/142014/152015/162016/17 Baselin e R’000 Financial Assistance620 562662 987701 345738 516 iSimangaliso28 790 30 61032 12833 831 SANParks220 145235 185251 604264 939 SANBI208 684224 703237 190249 761 SAWS162 943172 489180 423189 985 Infrastructure Grant 479 203573 755670 708706 256 iSimangaliso96 970101 397115 141121 243 SANParks306 843375 854478 304503 655 SANBI55 57066 50477 26381 358 SAWS20 00030 00000 TOTAL1 099 7651 236 7421 372 0531 444 772 11 -Percentage increases to 2014/15: 2015/16: 2016/17 12.23%: 10.99%: 5.3% -Overall increase in allocations for operations & infrastructure

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