1. 1 BUDGET VOTE 19: DEPARTMENT OF DEFENCE 10 June 2009

2. 2 Promoting peace and stability in the region and on the continent Implementing the Defence Update Expanding the MSDS Modernising and renewing the landward forces’ main equipment Renovating, repairing and maintaining of infrastructure and facilities Retaining scarce skills personnel Improving the IRPS cluster’s intelligence capacity POLICY PRIORITIES FOR 2009/10

3. 3 BUDGET OVERVIEW Department has 8 programmes: Administration Landward Defence Air Defence Maritime Defence Military Health Support Defence Intelligence General Support Force Employment Budget increase – 8.9% in real terms

4. 4 BUDGET OVERVIEW (Cont) Largest programme – Air Defence 2 nd largest – Landward Defence – 27.32% 3 rd largest – General Support – 10.44% Shifts in budget allocation per programme from 1008/09 to 1009/10: Air Defence largest increase (21.19%) Force Employment largest decrease (5.45%) – contradicts participation in peace support operations?

5. 5 PROGRAMME ANALYSIS: ADMINISTRATION Policy development, management and administration of the Department 7.92% increase Human Resources Support Services subprogramme – budget unchanged – cause of concern since it renders service to Military Veterans Policy & Planning subprogramme – significant decrease of 44.45% – reason not clear

6. 6 Provides landward defence capabilities Challenge – imbalance between personnel budget, operating budget & capital budget Increase of 5.62% – will be utilised to fund the increasing number of MSDS members; to manage the increased maintenance requirements of the SA Army’s ageing operational vehicle fleet; to initiate the landward defence equipment renewal projects; to procure critical ammunition; & to establish the Works Regiment. Strategic Direction subprogramme – 221.08% increase to make provision for 2 military exercises Operation Intelligence subprogramme – 32.09% increase – acquisition of mobile intelligence processing system LANDWARD DEFENCE

7. 7 Provides air defence capabilities 32.08% of total budget – 21.20% increase from 2008/09 - attributed to the production and delivery of the Gripen advanced light fighter aircraft & the A400M strategic airlift capability Challenge – inadequate operating budget AIR DEFENCE

8. 8 Provides maritime defence capabilities 6.15% of total budget – 1.21% decrease – due to commissioning of the frigates and submarines that is nearing completion Maritime Training Capability subprogramme – 23.82% increase – accommodate MSDS members MARITIME DEFENCE

9. 9 MILITARY HEALTH SUPPORT Provides medical combat support elements and services 7.62% of total budget – increase of 7.79% - attributed to the higher than average increase in the remuneration of health professionals, the anti- retroviral rollout and the increase in the MSDS intake Military Health Training Capability subprogramme – 23.57% increase – accommodate MSDS members Important – 2008 court ruling

10. 10 Provides defence intelligence & counter- intelligence capability 1.84% of total budget (smallest portion) – 7.94% increase – due to the anticipated investment in a strategic information collection capability DEFENCE INTELLIGENCE

11. 11 Provides general support capabilities & services 10.44% of total budget – address poor condition of defence facilities GENERAL SUPPORT

12. 12 FORCE EMPLOYMENT Provides an operational capability to successfully conduct all operations, joint & multinational military exercises, as well as the management of defence capabilities 5.63% of total budget – 5.45% decrease African Union Mission in Sudan subprogramme – 370.85% increase – reason for substantial increase not clear – should be scrutinised

13. 13 Promoting peace & stability in the region & on the continent: Decrease in Force Employment programme’s budget contradicts Department’s priority to actively participate in peace support operations on the continent Implementing the Defence Update: Detailed costing of various components of Defence Update not clearly indicated Expanding the MSDS: All four Arms of Service received increases in training subprogrammes to accommodate the increase in numbers – questionable whether increases will be sufficient Modernising and renewing the landward forces’ main equipment: Slight increase in the Landward Defence programme should have positive effect on the modernisation and renewal of the landward forces’ main equipment – debatable whether increase is sufficient to make a significant contribution ISSUES RELATING TO FUNDING OF POLICY PRIORITIES

14. 14 Renovating, repairing & maintaining of infrastructure & facilities: Joint Logistic Services subprogramme consumes largest portion of General Support programme, providing for much needed renovation, repair & maintenance of infrastructure & facilities Retaining scarce skills personnel: Not clear how the budget will be managed to retain members with scarce skills Improving the IRPS cluster’s intelligence capacity: Increases in Defence Intelligence programme & Operational Intelligence subprogramme in line with the Department’s priority to improve the IRPS cluster’s intelligence capacity ISSUES RELATING TO FUNDING OF POLICY PRIORITIES (Cont)

15. 15 5.45% decrease in Force Employment programme’s budget – serious challenge due to increased commitments for regional security and peace support. Parliament should enquire about the rationale behind this decrease and the impact it will have on external deployments Parliament should request Department to present Defence Update 2025 as a matter of urgency. Presentation should include detailed costing of various components of Update Parliament should monitor whether the targets relating to MSDS intakes in the various Arms of Services are achieved Parliament should scrutinise Department’s plans to renew landward forces’ main equipment in order to ensure that the budget allocation is sufficient & that the acquisition process is cost-effective, efficient & transparent KEY ISSUES FOR PARLIAMENTARY CONSIDERATION

16. 16 Parliament should be informed concerning progress made with long-overdue renovation, repair & maintenance of defence infrastructure & facilities Parliament should enquire what additional measures are being introduced to halt the outflow of scarce skills personnel KEY ISSUES FOR PARLIAMENTARY CONSIDERATION (Cont)

17. 17 QUESTIONS?