Budget and Priorities 2002/3: briefing by Acting Director General

Meeting report

FOREIGN AFFAIRS PORTFOLIO COMMITTEE
22 May 2002
BUDGET AND PRIORITIES 2002/3: BRIEFING BY ACTING DIRECTOR GENERAL

Chairperson: Mr ZP Jordan (ANC)

Documents handed out:
Budget Vote 3
The following documents are awaited.
Briefing by Director General
Department of Foreign Affairs Budget Briefing Document

SUMMARY
The Committee was briefed by the Department on their budget and priorities for 2002/3. The Department has been allocated more money than requested. The emergence of South Africa as a major role player in the world was noted, and SA's responsibilities in Burundi and in respect of the Inter-Congolese Dialogue were cited as examples. The Department is also having regard to its obligations created by NEPAD and the African Union.

MINUTES
The Chair, Mr Jordan (ANC), observed that the presentation by the Department was in anticipation of further discussions at the following week's meeting, which would precede the vote on the Department's budget.

Acting Director General: Mr Minty, focused on the continuing evolution of global affairs, and emphasised South Africa's emergence as a major player in trying to make the world a better place, citing its assumption of responsibilities regarding Burundi and the Inter-Congolese dialogue. This expanded role has resulted in the Department having more to do, including regarding transformation necessitated by the New Partnership for African Development (NEPAD) and the African Union (AU), and their implementation, which is spearheaded by SA. Mr Minty also commented that it is hard to project all future costs, including that of regional humanitarian assistance. He urged that SA must take advantage of the opportunity to exert influence for the betterment of people in both the South and North.

South Africa's foreign policy has been guided by five broad themes; accelerating growth and development to address the basic needs of the poor in the developing world, building the SA economy, combating international and cross-border crime, promoting democracy and good governance and building a better Africa and better world. The objectives of the Department are realised through the following five programmes: administration, foreign relations, public diplomacy and protocol, foreign properties and auxiliary and associated services.

Mr Minty's colleague presented the Department's budget briefing document, noting that more money (R2.79billion) had been allocated than had been requested (R2.5billion). Nonetheless, many challenges remain. These include the following: the critical need for upgrading the Department's ICT systems, accommodating the budget to forex fluctuations, funding AU summit costs, undertaking capital improvement projects at overseas missions, and the expansion of the number of missions. It also includes funding humanitarian aid and disaster contingency allocations, progressing with respect to human resources and foreign service dispensation programmes. It was also noted that 81% of the budget goes to cover "fixed costs", and that more money was needed for "operations".

Discussion
A Member asked whether other African nations make humanitarian aid contributions.

Mr Minty noted that few do, but that SA's gestures in this realm send an important signal to wealthier nations, and bring added contributions from them.

A Member queried the United States' attitude toward NEPAD in the wake of comments made concerning the situation in Zimbabwe.

Mr Minty noted that the G-8, especially Canada, had been encouraging, and there was reason to be optimistic about further support for the programme. At the same time, it is "unlikely" there will be favourable action on the African request for two seats on the UN Security Council, or on the request to modify its veto procedures.

Mr Eglin (DA) asked what the budget implications of SA's leadership of the AU and NEPAD was.

Mr Minty noted that provision must be made for the attendant costs, and that a supplementary allocation of up to R100M had already been provided concerning AU related issues.

In reply to a query from Mr Geldenhuys (NNP), Mr Minty stated that discussions were ongoing with Treasury and SARS in an attempt to ameliorate the heavy tax burden on SA diplomats' grants and cost of living adjustments.

After expressing concern over the ongoing yearly funding shortfalls, Ms Hajaij (ANC) asked whether the Department works with Trade and Industry via overseas missions to facilitate promotion of investment in SA.

Mr Minty replied that while there is cooperation, there is a need for an integrated training programme, which better ITC systems will facilitate. He also indicated that as the number of DTI personnel posted abroad diminishes, the responsibility on Foreign Affairs personnel increases.

Ms Hajaij then asked whether there were further plans to close Central European missions.

Mr Minty replied that European closures are to be avoided, and that at the same time developing added capacity in Africa must be focused on.

The Chair concluded that the Committee would look forward to working with the Department to achieve common objectives.

The meeting was adjourned.