13. OBSERVATIONS The Committee made the following observations about the 2011/12 Annual Report of the Department: 13.1 The Annual Report of the Department was silent on skills development strategies for the transportation industry. 13.2 The Report from the Department did not to talk to the establishment of bicycle manufacturing plants or assembly plants for Shova Kalula in rural areas. The Committee is concerned that should the focus of the Department be on the establishment of plants in urban and not rural areas, the Department would not be addressing job creation, skills development and poverty reduction. 13.3 The targets set by the Department did not speak to some of the critical transport challenges faced by the majority of South Africans that were identified in the 2003 National Household Travel Survey. These included reducing the cost and duration of travel. 13.4 The Department did not have a strategy for making air travel accessible by the poor and it did not address the challenges faced by low-fare airlines. 13.5 The Department took time to finalise policies and, more often, the funds budgeted for this purpose were shifted to other programmes.