1. National Department of Public Works Republic of South Africa National Department of Public Works Republic of South Africa 02 APRIL 2002 JAMES MASEKO DIRECTOR-GENERAL BUDGET PREVIEW PRESENTATION TO THE SELECT COMMITTEE ON PUBLIC SERVICES

2. National Department of Public Works Republic of South Africa National Department of Public Works Republic of South Africa 2 VISION To be a leader in Africa and the developing world in the provision and management of State property and implementation of Public Works Programmes.

3. National Department of Public Works Republic of South Africa National Department of Public Works Republic of South Africa 3 KEY FOCAL AREAS Issues for the next Budget Year -In general it is apparent that the Department’s budgetary allocation is far inadequate to fund the Department’s critical programmes as would be demonstrated in slides 16 - 19. -The Department has demonstrated capacity to spend its allocated budget, as evidenced by the R34million over-expenditure in the 2001/02 financial year as well as the current expenditure trends that indicate a potential over-expenditure of R40 million -The serious negative implications of under- funding are in the next forthcoming slides

4. National Department of Public Works Republic of South Africa National Department of Public Works Republic of South Africa 4 O Conducting the overall management of the Department O Formulates policy issues relating to the Department’s mandate O Provides centralised leadership support of the Ministry and the Senior Management O Transformation Programme PROGRAMME 1: ADMINISTRATION

5. National Department of Public Works Republic of South Africa National Department of Public Works Republic of South Africa 5 PROGRAMME 2: PROVISION OF LAND AND ACCOMMOD ATION  Custodian of fixed State Assets  Design and Construction of Buildings and Support Infrastructure  Repair and Maintenance of State Facilities  Leasing  Municipal Services (Water and Electricity)  Rates and Taxes  Acquisition of Property  Property and Facilities Management

6. National Department of Public Works Republic of South Africa National Department of Public Works Republic of South Africa 6 PROGRAMME 3: NATIONAL PUBLIC WORKS PROGRAMME MISSION To implement the National Public Works Programme by:  Delivering assets, jobs and capacity building through the Community Based Public Works Programme (CBPWP) – as a basis for sustainable rural development.  Promoting construction industry growth, development and transformation for enhanced infrastructure delivery – through the Construction Industry Development Programme (CIDP)

7. National Department of Public Works Republic of South Africa National Department of Public Works Republic of South Africa 7 COMPARISON OF REQUESTED BUDGET WITH PROPOSED ALLOCATION AT PROGRAMME LEVEL AMOUNT REQUESTED R millions PROPOSED ALLOCATION R millions DIFFERENCE R millions 1 Programme 1: Administration 304 27727 2 Programme 2: Provision of Land and Accommodation 4,3213,851470 3 Programme 3: National Public Works Programme 420322 98 4 Programme 4: Auxiliary and Associated 12 0 TOTAL5,0574,465592

8. National Department of Public Works Republic of South Africa National Department of Public Works Republic of South Africa 8 COMPARISON OF REQUESTED BUDGET WITH PROPOSED ALLOCATION AT STANDARD ITEM LEVEL AMOUNTS REQUESTED R millions PROPOSED ALLOCATION R millions DIFFERENCE R millions Personnel expenditure611 0 Administrative Expenditure73 0 Inventories574215 Equipment1006634 Leases1,041861180 Rates &Taxes, Municipal Services and Maintenance2 8002505295 Transfer payments37430668 Miscellaneous expenditure110 TOTAL5,0574,465592

9. National Department of Public Works Republic of South Africa National Department of Public Works Republic of South Africa 9 IMPLICATIONS The implications of underfunding as they relate to the main cost Items are: -Leasing: The failure to honour lease commitments will result in the affected client departments being evicted from the offices they occupy. -Rates & Taxes: The municipal Services will be terminated with catastrophic results to public facilities like hospitals etc. In addition, this sphere of Government’s service delivery efforts will be greatly compromised

10. National Department of Public Works Republic of South Africa National Department of Public Works Republic of South Africa 10 IMPLICATIONS (continued) -Maintenance: May result to non compliance with Occupational Health and Safety Act as some buildings are already in dilapidated state. -Transfer Payments: The shortfall in the main is in CBPWP. The department will therefore be unable to provide as many public assets as it had wished to provide. A number of potential temporary jobs opportunities have therefore been lost.

11. National Department of Public Works Republic of South Africa National Department of Public Works Republic of South Africa 11 COURSE OF ACTION In view of the underfunding, service delivery by the department will be compromised. There however exists a window of opportunity in that additional funding may still be found around October during the consideration of Adjustment Estimates Appropriation Bill. To this end, the department appeals to the Committee to provide whatever support it has to ensure that additional funding is received as indeed, the cut back on expenditure is not a realistic solution to the problem.

12. National Department of Public Works Republic of South Africa National Department of Public Works Republic of South Africa 12 CONCLUDING REMARKS In conclusion, the department wishes to highlight the positive impact and achievements that its programmes continue to contribute to government’s overall objectives and priorities in areas of: -Employment creation -Black economic empowerment -Infrastructure investment -Land reform initiatives and -Poverty alleviation. The department requests the Committee to assist the department in its endeavours to solicit additional funding in future appropriations as the service delivery will be severely compromised due to inadequate funding.