Medium Term Budget Policy Statement hearings: International Relations

Meeting report

JOINT BUDGET COMMITTEE
17 November, 2003
Medium Term Budget Policy Statement Hearings: INTERNATIONAL RELATIONS

Chairperson: Mr N Nene (ANC) (NA)

Documents handed out
Department of Foreign Affairs presentation (Awaited)
Joint Budget Committee Third Report
Committee Programme (Awaited)

SUMMARY
The Committee's third report had indicated some level of adjustment in some departments, notably the Department of Education which has steadily decreased its expenditure in the second quarter. The Department's expenditure was however expected to remain high as it would still be disbursing subsidies to institutions of higher learning until November 2003. The Committee heard that the leadership which the country's principals had demonstrated at key international events, continued to raise international expectations for further SA commitments and participation. The Committee also heard that Nepad was now accepted globally as the 'Development Plan for Africa' and that priority areas had been identified. Several Nepad projects currently underway included the finalised African Peer Review Mechanism. Implementation had commenced.

MINUTES
The Chair tabled the Third Report and asked Members to study it and communicate their comments to the Committee clerk. He noted that the report could not be adopted due to a lack of quorum, but called on members to attend subsequent meeting so they might adopt the report before the end of the month.

The Chair explained the Report analysis of expenditure trends of the second quarter of the 2003/4 financial year. The third report indicated some level of adjustment in some departments, notably the Department of Education, which had steadily decreased its expenditure in the second quarter. The report noted however, that the department's expenditure was still expected to be high as it would still be disbursing subsidies to institutions of higher learning until November 2003.

Department of Foreign Affairs submission
Mr M Aplein (the DDG Corporate Affairs) said his department was responsible for implementing South Africa's foreign policy under the direction of the President, Minister of Foreign Affairs and the Cabinet. This included supporting principals at international organisations, such as the President's Chairmanship of the AU and NAM, and assisting other departments with conferences such as the World Summit on Sustainable Development. The leadership role demonstrated at key international events, continued to raise international expectations for further South African commitments and participation. The Department's strategic objectives were to protect and promote South Africa's national interests and values through bilateral and multilateral interactions; to conduct and co-ordinate South Africa's international relations and promote its foreign policy objectives; to monitor international developments; and advise government on foreign policy and related domestic matters, among others.

Some of their highlights included when when South Africa was appointed chair, deputy chair and commissioner during the launch of the AU. South Africa made significant progress in the establishment of the organs such as the PAP, the Court of Justice, the African Development Bank, Peace and Security Council, Economic, Social and Cultural Council (ECOSOCC), and Technical Committees. Nepad was now accepted globally as the 'Development Plan for Africa' and priority areas had been identified. Several Nepad projects currently underway included the finalised African Peer Review Mechanism. Implementation had commenced. In SADC, significant progress has been made in finalising the Regional Indicative Strategic Development Plan and the Mutual Defense Pact. On the economic development front, there was notable a increase in tourism in the region and the Department was exploring markets in Asia, the Middle East, West and East Africa.

Discussion
The Chair applauded the comprehensive presentation.

Mr Tolo (ANC) asked how the Department measured value for money in its foreign missions.

Mr Aplein admitted that the question of measurable value was tenuous because the Department mainly performed political functions. However, all the Department's programmes have measurable objectives in terms of increased peace, creating the right climate for investment and other business endeavors. The Department paved the way for international and private sector investment in a peaceful and politically conducive environment.

Mr Rabie (DP) noted that the United Nations ran the World Food Program (WFP) and asked if this body had made any commitments to provide food for the hunger stricken Zimbabwe.

Mr Aplein replied that the UN World Food Programme would make a contribution if funding came to the SADC countries, but that negotiations were still ongoing on this issue.

The Chair asked whether the Department interacted with other departments apart from Trade and Industry.

Ambassador Mamele (Chief Director - East African region) explained that they dealt with every other department that took their business beyond the country's borders. They had established facilitating structures to enable other departments to partner in exploring lucrative foreign markets. An inter-departmental framework had been established to facilitate peace processes for this purpose.

Mr Louw (ANC) asked whether the AU had established sufficient capacity to attract funding from lending agencies to fund the peace process in Burundi and other troubled areas.

Ambassador Mamele said that the question of capacity was one of the burning issues raised at the continental level. The AU had established a very strong framework to address this concern and was in serious consultations with various donors to address capacity to deploy peace missions.

Mr Sigwela (ANC) wanted to establish whether the departmental properties abroad had been entered in the asset register maintained by the Department of Public Works.

Mr Alein said that when they had identified the problem of keeping track of properties abroad, they had come up with the Foreign Property Bill that proposed putting all these assets under the Department of Foreign Affairs. The Department of Public Works had established an independent agency to deal with state assets including those abroad. The Department was currently discussing the way forward with its Public Works counterpart.

Mr Ralane referred to the adjusted baselines and asked why the Department had forecast a hike in the Rand's value.

Mr Aplein replied that the National Treasury had the sole mandate to fix the rate of currency fluctuation and that this information was routinely communicated to the Department.

The Chair said that he had received late cancellations for the meeting and therefore there were no other presenters. He then adjourned the meeting until the following day.