3.6 The Department confirmed that it would not impact negatively on service delivery as PAP will continue to operate from Gallagher Estates in Midrand. The transfer payment to the ARF had reported as reduced by R30 million, R60 million and R80 million over the medium term. The funds have been allocated to other urgent government priorities. The reduction in the funds was also not expected to hamper service delivery, as there were still enough funds for all its projects.