Chairperson, Cabinet colleagues, our Deputy Minister, Prof Hlengiwe Mkhize; Chair of the Portfolio Committee, Mr Malale; hon MPs, the Director-General and staff of the department, the heads and executives of all our portfolio organisations who are here, my mother, who is 84 years old now ... [Applause.] ... and my family, sister Dimpho Hani, one of our special guests; honoured guests, comrades, ladies and gentlemen, in this, the centenary year of the ANC, job creation has become one of the key priorities for our government. Education and training are critical components of this priority, as reflected in the President's state of the nation address and the Budget allocations for the 2012 Medium-Term Expenditure Framework period.
Education now constitutes more than 21% of the government's total allocated expenditure for the 2012-13 financial year. Of this, my department receives R41,1 billion, of which R9,6 billion are skills levies that go to the Sector Education and Training Authorities and the National Skills Fund. The department's budget, excluding levies, increases from R28,2 billion in 2011- 12 to R31,5 billion for 2012-13. This is an increase of R3,3 billion, which is about 11,7% on the 2011-12 allocation.
Universities will this year receive R20,9 billion while R4,8 billion is allocated to the further education and training colleges conditional grant. The National Student Financial Aid Scheme will receive R5 billion during the 2012-13 financial year for loans and bursaries in the university and FET sectors. The rest of the budget allocation is shared between our statutory bodies and normal operating expenses of our department.
The government remains committed to the progressive introduction of free education for the poor up to undergraduate level. This has already been introduced in FET colleges. I have now established a working group to conduct a study to determine the actual cost of introducing fee-free university education for the poor. This working group will report by the end of June 2012 on the costs and options to implement this commitment.
In January 2012, I released the Green Paper on Post-School Education and Training, which sets out a vision for a single, coherent, differentiated and articulated postschool education and training system. This system aims to expand access to postschool opportunities, overcome inequalities in education and achieve high levels of excellence and innovation. It will also result in closer co-operation between universities, colleges and levy- grant institutions and between these institutions and the labour market. This paper has been released for consultation and submissions from stakeholders and the public and these will be accepted until the end of April 2012, which falls on Monday next week.
Let me call upon all stakeholders to engage with the Green Paper in earnest. It embodies a bold and ambitious plan, but if we all pull together we will indeed build a postschool system to address the needs of our youth and adults. After considering the comments, we will develop a White Paper.
The basis of any good education system is the quality of its teachers and we continue to strengthen teacher education. We have ring-fenced R450 million for the 2012-13 to 2013-14 funding cycle to expand university infrastructure capacity for teacher education and this will continue in the next funding cycle. There has been significant growth in full-time equivalent enrolments in initial teacher education programmes, from 35 937 in 2009 to 41 292 in 2010 - a 15% increase. Likewise, the number of new teachers who graduated increased from 6 976 in 2009 to 7 973 in 2010 - an increase of just under 1 000 or 14%. Particular attention is being paid to the development of foundation-phase teachers, especially African language mother-tongue speakers.
In order to expand our capacity to produce new teachers, we are pleased to announce - honourable Radebe, among others - that we will open the former Ndebele College Campus in Mpumalanga for foundation-phase teacher education in 2013. [Applause.] We also plan to open one former teacher training college each in KwaZulu-Natal and the Eastern Cape. [Applause.]
In line with our growth vision for the FET college sector, we will strongly focus on lecturer development this year. I will gazette a qualifications policy for FET college lecturers and work to ensure that a range of suitable qualification offerings is made available for FET college lecturers.
An amount of R499 million has been allocated to all universities for teaching development grants to assist in improving graduate outputs and R194 million for foundation programmes to improve the success rates of students from disadvantaged educational backgrounds.
Iningi le mali, mina ngingowakaDambuza angazi ukuthi yimalini kodwa iningi le mali. [Uhleko.] [This is a lot of money. As a person from Dambuza, I do not know how much this is, but it is a lot of money. [Laughter.]]
In the coming financial year, programmes will also be initiated to support the academic and professional development of lecturers in universities. In addition, R177 million for research development has been allocated to 15 of the 23 universities to develop the research capability of university staff, especially those institutions with low numbers of staff members who have master's degrees and doctorates.
With regard to universities, the Ministerial Committee for the Review of the Funding of Universities has received submissions from a broad range of stakeholders, including 22 of our 23 universities. I have also requested the committee to canvass the views of labour organisations, ordinary university staff and students. Given the diverse views expressed in the submissions and the extensive research and modeling required to enable credible proposals, I have agreed to give the committee until 31 August 2012 to submit its report so that we can change the funding framework by April 2013.
The review of student accommodation by Prof Rensburg has highlighted an enormous shortage of student residences and the run-down condition of much of what exists. This must be tackled as a matter of priority. For the period 2012-13 to 2013-14, R850 million has been specifically earmarked for universities to build and refurbish student residences, with the bulk - 86% - allocated to historically black institutions. As this funding is insufficient, my department has been engaging with the Public Investment Corporation and the Development Bank of Southern Africa to provide more substantial funding for student accommodation.
Over the next two years, R3,8 billion has been earmarked for universities' overall infrastructure development, prioritising historically disadvantaged institutions. Of the R3,8 billion infrastructure allocation, an amount of R1,6 billion has been set aside specifically for historically disadvantaged institutions. [Applause.]
On the academic front, my department is committed to increasing the production of graduates in engineering, natural sciences, human and animal health sciences and teacher education, in line with my performance agreement with the President. We are engaging with Higher Education South Africa and the deans of the relevant faculties to accelerate especially black and women graduate output in these areas. As a consequence of the study on the humanities and social sciences that I had commissioned Prof Ari Sitas and Dr Sarah Mosoetsa to undertake, and to ensure that these important disciplines are not neglected, I will soon establish a National Institute of Humanities and Social Sciences. Last year, I mentioned my intention to establish an advisory panel on African languages.
Ngiyajabula ukusho namhlanje ukuthi leli komidi lezilimi zakithi zomdabu selikhona liyasebenza, uSihlalo walo uSolwazi Pitika Ntuli, linabanye osolwazi bakithi bazo lezi zilimi ukuze zikwazi ukuthuthukiswa emanyuvesi. (Translation of isiZulu paragraph follows.)
[I am happy to announce today that this committee on indigenous languages has been established and that it is functioning. It is chaired by Prof Pitika Ntuli and other professors of indigenous languages also serve on it in order for these languages to be developed at the universities.]
In order to assist in tackling the problems faced by students wanting to enrol at a university, I intend to establish a National Information and Application System. This will centralise applications, so that students will not have to apply to multiple universities, each with its own application fees. [Applause.] The new system will also centralise NSFAS applications. I have appointed a project steering committee to advise me on this issue.
I have received reports from the two task teams I appointed to investigate appropriate models for new universities in Mpumalanga and the Northern Cape. [Applause.] The project team has recommended sites to be the seats of these universities. I am pleased to say that. I plan to announce the seat of learning of each new institution in approximately three months' time, once the full assessments have been done and in consultation with the President and other relevant stakeholders. I see the provincial secretary of the SACP in the Northern Cape is here this must be good news for him. [Applause.] I remain committed that the first intake of these two new universities will be at the start of the academic year 2014.
Work is also under way to establish Medunsa as a separate, self-standing university of health sciences. Beyond this, we are looking at other opportunities for expanding the training of medical doctors and other health professionals. I have therefore asked some of the universities to urgently provide me with concrete plans to expand in this regard.
My department has been holding discussions with various professional councils with a view to producing sufficient graduates and providing them with work experience and support to ensure that they become registered professionals. We want to eliminate all forms of gate-keeping in the production of professionals.
While many of our universities are stable and effective, some of our former black universities are weak and need considerable effort and resources to strengthen them. I have had to place some of them under administration with a view to strengthening their governance and management and, consequently, their academic capabilities. Within the next few weeks I will be announcing members of the Ministerial Oversight Committee on Transformation and its terms of reference in taking forward the recommendations of the Soudien Report.
I am pleased that the board of NSFAS now has a full complement of members and is beginning to turn around the entity to ensure that it is more responsive to the students it supports. The board has adopted a student- centric model and it plans to build relationships with students even before they enrol at higher education institutions. We have allocated some R98 million to NSFAS to develop state-of-the-art ICT infrastructure and systems.
NSFAS bursaries and loans to poor students have been expanded substantially over the last three years and funds made available to students grew from R2,375 billion in 2008 to R6 billion in 2012. We are indeed proud of this achievement. [Applause.] The National Skills Fund has also been made available for special purposes, such as R50 million for postgraduate scholarships, R63 million for students with disabilities, R350 million for poor continuing students who were unable to register due to outstanding debt and insufficient funding in 2012. This year we used R350 million to save about 12 000 students who otherwise would have been excluded from university. [Applause.]
Over the past two years, enrolments in FET colleges have been rising dramatically. In 2011, we had projected a headcount enrolment of 359 000 in all programmes, but the actual head-count enrolment reached 437 060, exceeding our projections by 24%. This year we are expecting a further increase to 550 000 enrolments. Over the next three-year MTEF period starting in 2012-13, R15,6 billion has been set aside to ensure increasing enrolments in FET colleges as we build them to become institutions of choice. As stated in our Green Paper, we aim to have 4 million enrolments in FET colleges and other nonuniversity postschool institutions by 2030, so it is gratifying to see this expansion and interest in our colleges and the willingness of the colleges to grasp the challenge.
A number of things have contributed to the growing demand for a college education among the youth. One of the principal reasons is the bursary amounting to 100% of fees for all those with a family income of under R122 000 per annum. In essence, as from last year, FET college education for occupational programmes for students who come from a poor background is free. [Applause.] Another reason for this growth is the career advice campaign we launched together with SAQA. Through the SABC it has reached over 2 million listeners.
Earlier this month, the President announced an amount of R2,5 billion over the next three years from levy funds for infrastructure, machinery and programmes in FET colleges. We are completing an infrastructure audit. Where infrastructure is in a state of disrepair, it will be refurbished as part of the FET College Campus Refurbishment Programme. We have determined that in the short-term there is a need to build 12 new campuses attached to the existing FET colleges. These are campuses in Graaff-Reinet, Lusikisiki, Aliwal North, Sterkspruit, Nkandla, Newtown, Msinga, Sisonke, uMkhanyakude, Balfour, Thabazimbi and Giyani. [Applause.]
Bab'uMpontshane, impela sengifikile eMkhanyakude, sengingene ngezinyawo zombili. [Mr Mpontshane, I have indeed arrived in uMkhanyakude.]
We are indeed in negotiations with the Public Investment Corporation and DBSA for more money. From my commitment, made during the 2011-12 financial year, to improve the conditions of service of FET college staff, we have now successfully concluded a collective agreement for employees represented in the General Public Service Sectoral Bargaining Council. In addition, we have equalised conditions between those employed by the state and those formally employed by the colleges, and we have set aside R160 million during the MTEF period to improve conditions of service of FET college staff.
We have also developed a comprehensive strategy to ensure the smooth transfer of FET colleges from provincial to national competence once the FET Colleges Amendment Bill is signed by the President. We will soon also be setting new funding norms in line with our intention to strengthen the college system as a whole as well as the individual needs of colleges. In this financial year, the department will implement a performance agreement system for FET college principals to ensure greater accountability and the delivery of high-quality college programmes in line with our economic development priorities. We will also ensure that all vacant management staff posts at FET colleges are filled with greater urgency. [Applause.]
One area that has been identified as the weakest in FET colleges is the financial management and human resources capacity. We are pleased to say that we have entered into a partnership with the SA Institute of Chartered Accountants to provide us with retired chartered accountants for a period of two years to be appointed as chief financial officers at our FET colleges.
My department has found that six of the eight Eastern Cape FET colleges are dysfunctional. In response, we have commissioned JET Education Services to undertake a college-by-college turnaround strategy. So, we don't only do door-to-door in the ANC but we also do door-to-door, college-to-college in the Department of Higher Education and Training. [Applause.]
Of central importance to the improvement of colleges is the revision of their programmes. I am pleased to say that we have completed a report to revise the National Certificate Vocational programmes. We will also be revising and strengthening the end programmes.
In the course of this year, I will also introduce legislation to, among other things, establish a SA Institute for Vocational and Continuing Education, which will provide professional support to colleges and possibly also to the Setas.
The Green Paper proposes to absorb the public adult learning centres into a new institutional type, known as "community education and training centres". These centres will offer far more than the current adult learning centres, so that they don't focus just on "a, e, i, o, u" but also include vocational or work-oriented opportunities for a significant proportion of the youth and adults. I have appointed a task team in this regard.
With regard to the National Qualifications Framework, we have now received comments on the proposed qualifications frameworks developed by the three quality councils. I will consider these recommendations in due course, with particular emphasis on creating an articulated system of postschool education and training. Furthermore, I have established a Ministerial task team on the recognition of prior learning aimed at developing a national strategy for its wide-scale implementation.
With regard to the skills development and levy grant institutions, in July 2011 we signed a national accord with Nedlac partners in order to expand the number of apprenticeships, learnerships and internships. A particular role is played by the state-owned enterprises and I am pleased to say that of the state-owned enterprises, Eskom is leading in terms of absorbing graduates from FET colleges and universities of technology. [Applause.] Through this accord, we want to turn every workplace into a training space.
Artisan training has been proceeding apace. According to data from Setas, 24 378 artisan learners entered the system in 2011-12 - an increase of 861 over 2010-11. We believe that the actual figure for the country is somewhat higher than this, as not all companies who take on artisan learners register them with the Setas. We are developing a method of capturing these developments. All we need to say is that since the advent of this department, we are increasing the production of artisans in this country for the first time in years. They are on the up and up now.
We have taken a number of measures to strengthen the governance and management of the Setas. These are beginning to take effect in improving their performance, although there is still some way to go before they fulfil their potential. Last year, I appointed a task team to study the Setas and I am receiving its report at the end of April. We will also require the Setas to open offices in all the FET colleges so that they become accessible. [Applause.]
I'd like to acknowledge the important contributions to skills development by many of the Setas, in line with the National Skills Development Strategy III. Administrators in the Services and Construction Setas are making good progress in rectifying their problems. In one of them - the Services Seta - based on the Auditor-General's report and several forensic investigations, the administrator opened a case of theft and corruption against the former CEO. I must express my disappointment, though. We reported this to the Hawks in May 2011 already - things are moving too slowly. Woe to those who are trying to undermine our efforts to put the Services Seta under administration.
Consistent with its mandate, the National Skills Fund - for the first time since 2004 - is now going to spend more than R1 billion, which means we are dealing with their accumulated funds. Our data systems on skills profiles and needs are not up to standard if we are to plan properly. For this reason, I have commissioned the Human Sciences Research Council to lead a research programme to lay the basis for a credible skills planning mechanism.
In conclusion, let me take this opportunity to thank the President and Cabinet colleagues, as well as our Deputy Minister, for their support. I also thank our Director-General, Mr Gwebinkundla Qonde, my special advisor, John Pampallis, senior staff in the department and all members of Team DHET for their hard work. I also wish to thank my family for their unwavering support and understanding.
Siyabonga kakhulu, kusho ukuthi ngempela sisendleleni yokwakha lawa mathuba okuthi izingane zakwethu zikwazi ukuthola imfundo ephakeme. Siyabonga. [Ihlombe.] (Translation of isiZulu paragraph follows.)
[Thank you very much. This means that we are indeed on the path of creating these opportunities so that our children can receive better higher education. [Applause.]]