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The strategic plan and the Annual Performance Plan of the department
of Economic Development & Tourism do not comply with the Framework for
Strategic Plans and Annual Plans. For example, it states that it
derives its mandate of economic growth and job creation from Schedule
6 of the Constitution. Section 6 of the Constitution deals with
transitional arrangements and is not relevant to economic growth and
job creation. The plans are badly drafted and neither time nor effort
went into the same. If this is the type of effort that the department
puts into its work, then how can we expect it to create an enabling
environment for economic growth and development?

On page 16 of the Annual Performance Plan the department says “during
a strategic Planning session of the Department the following four
pillars were identified as priorities for Department of Economic
Growth and employment creation”.

The 2015/2016 budget presentation does not contain specifics and
particularity. Too many broad and sweeping statements are made without
any details. When it comes to Small Business Development, for
instance, the department simply states that it aims to support 20
existing SMMEs with business plan appraisals and access to financing.
Similarly, it aims to support 10 existing cooperatives with
applications for grant funding from the DTI Cooperatives Incentives
Scheme. But the department gives no indication of how it selected the
beneficiaries. What criteria was used to identify deserving cases? How
will the SMMEs and cooperatives be monitored? Where are the businesses
located?

We also need greater clarity on the alignment of the provincial
strategies with national policies. Let me use the Industrial Policy
Action Plan and the New Growth Path as an example. Both of these
national documents have ambitious economic targets and strive to see
2.8 million jobs created. The policies are mentioned in the
department’s plans. But the implementation itself is missing. How many
of the 129 000 jobs envisioned by the Industrial Policy Action Plan
will be created in the Northern Cape and in which sectors? How many of
the 2.7 million jobs targeted by the New Growth Path will be created
in the province? Where and at what cost to the provincial government?
How will our youth benefit? It is one thing to refer to a national
policy. It is something else to see to its actual implementation.

In 2015/16, R36 million will be transferred to the Economic Growth and
Development Fund. We don’t know who will benefit from the Economic
Growth and Development Fund in 2015/16. The annual performance plan
names neither individual entrepreneurs nor companies. The budget
presentation names only four beneficiaries. So unless the department
plans to transfer R9 million to each of these beneficiaries, it is
safe to assume that all the beneficiaries have not been named.

It is our duty as public representatives to scrutinise the allocation
of public funds. We cannot allocate money from the provincial coffers
without knowing who will receive it and how much.

It is good to note that the Northern Cape Tourism Authority has
improved to an unqualified audit in the 2013/14 year and we welcome
the continued good governance at this particular entity.

However, the same cannot be said about the other three entities and
the budget presentation gives no indication on how these entities will
be strengthened and supported by the department in terms of its
oversight role. The plans only states that the three public entities
will submit reports to the department.

The plans are also silent with regard to the appointments of the
Gambling Board, Tourism Board and the Northern Cape Economic
Development Trade and Investment Promotion Agency. Accordingly, the
Democratic Alliance calls upon the MEC to initiate the process of
appointing the Gambling Board, Tourism Board and NCEDA board.

One cannot overemphasise the importance of the public function of the
boards. Boards serve as the accounting authorities for entities; they
answer our questions on spending of public funds. Without these
boards, entities become nothing more than warm bodies drawing
salaries. For example, NCEDA failed to submit its annual reports for
2012/13 and 2013/14 to the portfolio committee on three consecutive
occasions. In the year ending March 2013, for example, the
Auditor-General found irregular expenditure of R4.1 million that had
not been disclosed in NCEDA’s financial statements. This is especially
worrying if you consider that NCEDA only has an annual budget of
approximately R5 million.

The 2015/2016 strategic plan and Annual Performance Plan does not also
contain the proposed realignment of the functions of NCEDA. Why is
there no mention in the annual performance plan of the shifting of
functions, which will impact the work of the department? Both Treasury
and the Office of the Premier report extensively on the shifting of
functions between their offices in 2015/16; why should we expect any
less information from the department?

The Democratic Alliance notes with deep concern that the Northern Cape
Liquor Board does not have Supply Chain Management unit and in fact,
it has made it very clear to the committee that it does not see any
need to establish the said unit. The Democratic Alliance finds it very
difficult to understand this process of reason especially when section
51(1)(a)(iii) of the PFMA enjoins the Liquor Board to have and
maintain an appropriate procurement and provisioning system. This
provision is peremptory and we therefore call on the Liquor Board to
implement this provision as soon as it is reasonably possible.

In the light of the scourge of Alcohol Foetal Syndrome in the province
and call by the MEC for Social Development for all sectors of the
society to fight this scourge irrespective of political affiliation, I
will be submitting a Private Members Bill in this house in due course.
The broad aim of the Bill will be to make it illegal to sell alcohol
to a pregnant women and to criminalise the consumption of alcohol by
pregnant women.

It is also worrying to note that the Liquor Board does not have an
internal email system. Officials use their own private emails to
perform their functions. Surely, this is a risky escapade in terms of
state information. This means that state information is in private
hands.

In conclusion, I would like to commend the department for obtaining a
clean audit in the 2014/2015 financial year. There are many committed
officials in this department who are dedicated to the cause of
realising the vision of National Development Plan and want to commend
them for this. However, the same cannot be said about those that
simply go through the motions and collect their unearned salaries.

Lastly, the Democratic Alliance calls upon the premier to initiate the
process of appointing a head of department. Please appoint somebody
from the province and please not from the employment reservoir of
South Africa, the Eastern Cape.

Issued by DA