Environmental Affairs Budget: Committee Report

Meeting report

Environmental Affairs Budget: Committee Report

The Chairperson said the report was tabled before Members and hoped that they were ready to make inputs, corrections and the approval of the report. They would go through the report page by page so that Members could make comments, corrections and additions.

Mr R Purdon (DA) asked for clarity on the first paragraph of page 7 of the report in terms of how the real Rand terms has been calculated, and was inflation taken into account. Because when one looked at the budget in the big document of the Department the figures did not match up. In this report they spoke about "nominal increases and real Rand terms", which was not clear to him.

Dr Scotney Watts, Content Advisor, said what they had done over the years was actually to tag the budget that is allocated each year, and then compete it against what was allocated in the previous year. Inflation was determined by banging that into the current budget, and then compare to see whether there is actual increase in the current allocation versus the previous allocation. So, the real Rand values are the values that are captured in the report in terms of inflation, whereas the nominal values are just values as presented. When one looks at nominal values one will see there is an increase in allocation. But when one considers the real value of the Rand one will see that the budget has retarded, for example, R10 last year is not the same R10 this year.

Mr Purdon asked Dr Watts what inflation rate he used in his calculation. 

Mr Z Makhubele (ANC) suggested that under observations they should add another bullet point which focuses on the programmes of Sustainable Development Goals (SDGs) and not be limited but link the strategic goals of the Department and the National Development Plan Vision 2030 with the SDGs.

Mr Makhubela corrected, on page 29 of the report under iSimangaliso Wetland Park Authority, third bullet point that they should include "other critical stakeholders" in that sentence because there are stakeholders like traditional leaders, who need to be engaged from time to time.

Mr Makhubela said on page 30 of the report, under the South African National Biodiversity Institute (SANBI) they should include and mention the actual core business of SANBI in that paragraph.

The Chairperson said when it came to SANBI there was an issue of transfer of the National Geological Garden to SANBI. It should be remembered that they were supposed to go on an oversight visit but was not approved. Also, they should formulate something on the challenges of the transfer because they did get a presentation on this.

Mr Makhubela said the last 2 bullet points of the recommendations on page 31 of the report are more or less the same. Therefore, they need to merge them and formulate one bullet point.

The Chairperson agreed with Mr Makhubela that the two bullet points should be merged together to formulate one sentence. Actually, the bullet point that starts with "SAWS Board" must be deleted.

Mr Purdon noted that page 9 of the report talks about "Cash Modified Standard", and on page 30 the report they talk about "Modified Cash Standards". He asked which correct term to use in this regard.

The Chairperson said it should be "Modified Cash Standards".

Mr Purdon said in the first bullet point under Committee conclusion and recommendations they should put a timeframe for the Department because they were tired of the delays in the delivery of the annual report.

The Chairperson said the first recommendation should start with their disappointment on the non-tabling of the annual report as a result of outstanding issues regarding the application of the Modified Cash Standards. Then after that they should add the Department to resolve the dispute with National Treasury (NT) and Auditor General South Africa (AGSA).

Mr Makhubela agreed that they would incorporate what the Chairperson has raised. Therefore, the sentence should be formulated as follows: "Whereas we note progress with regard to the resolution of this matter,( they did come all of them, NT presented to the Committee), but express disappointment in this regard.” The timeframe can be put before the annual report is presented.

The Chairperson emphasised that the Committee expressed its disappointment with the non-tabling of the 2016/17 annual report of the Department as a result of the dispute between the Department and the AGSA regarding the application of Modified Cash Standard. The Committee therefore, urge the Department to resolve the dispute with the NT and the AGSA going forward.

Mr Makhubela moved for the adoption with amendments.

Ms S Mchunu (ANC) seconded the move.

The Committee adopted the report with amendments.  

The meeting was adjourned.