Tourism Annual Report

2006/2007 Annual Report 2006/2007 Department of Economic Development and Tourism Annual Report

www.capegateway.gov.za Department of Economic Development

Jaarverslag and Tourism red Departement van Ekonomiese Ontwikkeling en Toerisme DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM oor SUPPORT . ENERGISE . CREATE . STIMULATE . GROW Ingxelo Yonyaka Isebe Lophuhliso Lwezoqoqosho Nezokhenketho

PR29/2007 & ISBN: 0-621-37047-9 Issued in the Republic of South Africa: Western Cape Department of Economic Development and Tourism

Waldorf Building, St. George’s Mall, Cape Town, 8001

P O Box 979, Cape Town, 8000

Telephone: +27 21 483 9111

Facsimile: +27 21 483 3409

Website: www.capegateway.gov.za

The Afrikaans and isiXhosa versions of this publication are available on request.

Contact: Communications

E-mail: [email protected] or [email protected]

Telephone: +27 21 483 9160

PR29/2007 & ISBN: 0-621-37047-9 2006/2007 Annual Report Department of Economic Development and Tourism

Jaarverslag Departement van Ekonomiese Ontwikkeling en Toerisme Ingxelo Yonyaka Isebe Lophuhliso Lwezoqoqosho Nezokhenketho Contents

Part 1: General Information 9

1.1 Submission of the annual report to the executive authority 10 1.2 Introduction by the Head of the Institution 10 1.3 Information on the ministry 12 1.4 Mission statement 12 1.5 Legislative mandate 12 Voted Funds 14 Aim of Vote 14 Key Measurable Objectives, Programmes and Achievements 14 Overview of the Service Delivery Environment for 2006/2007 15 Sectoral growth and employment prospects 16 Overview of the organisational environment for 2006/2007 17 Strategic overview and key policy developments for the 2006/2007 financial year 18

Part 2: Programme Performance 29

Programme 1: Administration 30 Purpose 30 Measurable objectives 30 Service delivery objectives and indicators 32 Service delivery achievements 34

Programme 2: Economic Participation 39 Purpose 39 Measurable objectives 39 Service delivery objectives and indicators 42 Service delivery achievements 45

Programme 3: Fair Business Environment 54 Purpose 54 Measurable objectives 54 Service delivery objectives and indicators 55 Service delivery achievements 59

Programme 4: Economic Sector Development 64 Purpose 64 Measurable objectives 64 Service delivery objectives and indicators 65 Service delivery achievements 69

DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Programme 5: Tourism 82 Purpose 82 Measurable objectives 82 Service delivery objectives and indicators 83 Service delivery achievements 89

Part 3 Report of the Audit Committee 99

Part 4: Annual Financial Statements 103

Report by the Accounting Officer 104 1. General review of the state of financial affairs 104 2. Service rendered by the Department 107 3. Capacity constraints 107 4. Utilisation of donor funds 107 5. Trading entities and public entities 107 6. Organisations to whom transfer payments have been made 107 7. Public Private Partnerships (PPP) 108 8. Corporate governance arrangements 108 9. Discontinued activities/activities to be discontinued 108 10. New/proposed activities 108 11. Asset management 108 12. Events after the reporting date 108 13. Performance information 108 14. SCOPA resolutions 109 15. Other 109 16. Approval 109

Report of the Auditor General 110 Accounting Policies 112 1. Presentation of the Financial Statements 112 2. Revenue 112 3. Expenditure 113 4. Assets 114 5. Liabilities 115 6. Net Assets 115 7. Related party transactions 115 8. Key management personnel 115 Contents

Appropriation Statement for the year ended 31 March 2007 116 Notes to the appropriation statement for the year ended 31 March 2007 125 Statement of Financial Performance for the year ended 31 March 2007 127 Statement of Financial Position for the year ended 31 March 2007 128 Statement of Changes in Net Assets for the year ended 31 March 2007 129 Cashflow Statement for the year ended 31 March 2007 129 Notes to the Annual Financial Statements for the year ended 31 March 2007 130 Annexures to the Annual Financial Ftatements for the year ended 31 March 2007 140

Part 5: Human Resource Management 147

1. Service Delivery 148 2. Expenditure 149 3. Employment and vacancies 150 4. Job evaluation 151 5. Employment changes 153 6. Employment equity 155 7. Performance rewards 159 8. Foreign workers 160 9. Leave utilisation for the period 01 January 2006 to 31 December 2006 161 10. HIV and AIDS and health promotion programmes 162 11. Labour relations 163 12. Skills development 165 13. Injury on duty 167 14. Utilisation of consultants 168 15. Organogram 170

DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

List of Abbreviations

ABET Adult Basic Education and Training ACSA Airports Company of South Africa AFS Annual Financial Statements AGM Annual General Meeting AMR Asset Management Reforms AMTS Advanced Manufacturing and Technology Strategy AO Accounting Officer ASGISA Accelerated Shared Growth Initiative of South Africa BBBEE Broad-Based Black Economic Empowerment BER Bureau for Economic Research BPO Business Process Outsourcing CADET Career Assessment Development, Education and Training CBD Central Business District CCDI Cape Craft and Design Institute CEL Centre for Extended Learning CFC Cape Film Commission CFO Chief Financial Officer CITI Cape Information and Technology Initiative CMaTS Correspondence Management and Tracking System COGSI Cape Oil and Gas Initiative CPUT Cape Town University of Technology CSIR Council of Scientific and Industrial Research CTBBI Cape Town Boat-building Initiative CTBTi Cape Town Boat-building and Technology Initiative CtC Calling the Cape CTGA Cape Town Guides Association CTRU Cape Town Routes Unlimited DBC Departmental Bid Committee DEAT Department of Environmental Affairs and Tourism (National) DLOs Designated Liquor Officials DMO Destination Marketing Organisation DoL Department of Labour (National) DotP Department of the Premier DOPMS Departmental Operations Performance Management System List of Abbreviations

DPMES Departmental Planning, Monitoring and Evaluation System DPSA Department of Public Service and Administration DST Department of Science and Technology dti Department of Trade and Industry (National) EA Executive Authority EAP Employee Assistance Programme ECD Early Childhood Development ED Economic Development EDP Exporter Development Programme EDU Enterprise Development Unit EE Economic Empowerment EIA Environmental Impact Assessment EMC Executive Management Committee FAS Foetal Alcohol Syndrome FEDHASA Federated Hospitality Association of South Africa FET Further Education and Training FNB First National Bank GDP Gross Domestic Product GDS Growth and Development Summit GET General Education and Training HCDS Human Capital Development Strategy HRDS Human Resource Development Strategy HDI Historically Disadvantaged Individual HE Higher Education HEIs Higher Education Institutions HoD Head of Department HRD Human Resource Development HRDS Human Resource Development Strategy HRFU Human Resource Development Unit I, D&AT Innovation, Design and Advanced Technologies IAT Institute for Advanced Tooling ICT Information Communication Technology IDP Integrated Development Plan ISRDS Integrated Sustainable Rural Development Strategy

DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

IT Information Technology ITDF Integrated Tourism Development Framework ITESP Integrated Tourism Entrepreneurship Support Programme IVR Incoming Voice Recorded IYM In Year Monitoring LBC Library Business Corners LCF Learning the Cape Festival LCI Learning Cape Initiative LED Local Government Development LTA Local Tourism Authority LTB Local Tourism Board MEDS Micro-economic Development Strategy MENNGOS Micro Enterprise Network of NGOs MST Mathematics / Science / Technology MTEF Medium Term Expenditure Framework NFTGASA National Federation of Tourist Guide Associations of South Africa NGOs Non-governmental Organisations NIMS National Integrated Manufacturing Strategy OCP Office of the Consumer Protector OMAM Old Mutual Asset Management System PAMTS Provincial Advanced Manufacturing Technology Strategy PDC Provincial Development Council PDI Previously Disadvantaged Individuals PEAP Provincial Employee Assistance Programme PERO Provincial Economic Review and Outlook PFMA Public Finance Management Act PGDS Provincial Growth and Development Strategy PGDS Provincial Growth and Development Summit PGWC Provincial Government Western Cape PPP Public Private Partnership PSETA Provincial Sector Education and Training Authority R&D Research and Development REAF Real Economic Assistance Fund RED Read Enterprise Development List of Abbreviations

RIS Regional System of Innovation RS&IE Research Support and Impact Evaluation RSF Road Signage Framework RTLCs Regional Tourism Liaison Committees S&T Subsistence and Travel SAIGA South African Institute of Government Accountants SAOGI South African Oil and Gas Initiative SAPS South African Police Service SARS South African Revenue Service SATSA South African Tourism Services Association SCFS Social Capital Formation Strategy SCM Supply Chain Management SCOPA Standing Committee on Public Accounts SDIP Service Delivery Improvement Plan SEDA Small Enterprise Development Agency SETAs Sector Education and Training Authorities SIP Strategic Infrastructure Plan SMEs Small and Micro Enterprises SPMS Staff Performance Management System SPVs Special Purpose Vehicles TED Tourism Enterprise Development TGRO Tourist Guide Registration Office THDs Tourism Help Desks THETA Tourism, Hospitality and Sport Education and Training Authority TOACT Tour Operators Association of Tour Operators URDP Urban Renewal Development Programme WCBI Western Cape Beneficiation Initiative WCED Western Cape Education Department WCTGA Western Cape Tourist Guides Association WECBOF Western Cape Business Opportunities Forum WEE Women Economic Empowerment WESGRO Western Cape Investment and Trade Promotion Agency WIETA Wine Industry Ethical Trading Association WSP Workplace Skills Plan WCYC Western Cape Youth Commission YEE Youth Economic Empowerment

DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12 Part 1 General Information Part 1: General Information

1.2 Introduction by the Head of the Institution In 2004/5, the Department embarked upon the Micro-economic Development Strategy (MEDS), a process that was inspired and guided by the President’s Micro- economic Reform Programme and the iKapa eliHlumayo strategy. The initial phase of the MEDS was primarily research-based, with substantial emphasis placed on improving the Provincial understanding of the regional economy and the dynamic thrusts of the industries and economic forces which shape and stimulate its growth. The research also suggested a range of various policy options available to the Provincial Government. The MEDS also applied a range of analytical and econometric-related modeling tools to determine the optimal prioritization of sectors and themes, to ensure that the Department could focus and maximize its impact within its budget envelope. This intense and groundbreaking research was coupled with the restructuring of the Department to allow focused management and application of the MEDS. Guided by the body of MEDS research, the Department, through a thorough 1.1 Submission of process of strategic consultative sessions, developed sector and thematic strategies and undertook in 2006/07 to initiate, in earnest, the first the annual report implementation phase of the MEDS. to the executive This occurred in parallel with the populating of Phase 1 of the Departmental organagram. The initial re-engineering of the Department and its focus had seen a authority restructuring, and with the split of portfolios into two Executing Officers, the addition of Tourism as a Chief Directorate. Considerable effort was placed during 2006/07 I have the honour of submitting upon filling the 203 approved funded permanent posts in the Department. To this end the 2006/2007 Annual Report of 113 permanent posts were filled by 31 March 2007. The dedicated support rendered by the Directorate Organisational Development Interventions (Department of the the Department of Economic Premier) in executing the job evaluation exercise since May 2006, set the scene for Development and Tourism in filling positions in the most effective manner possible. terms of the Public Finance While recruiting suitably qualified personnel has been a challenge, the Department managed to achieve considerable progress towards the Management Act, 1999. implementation of the MEDS. Broadly, with respect to the MEDS strategies, more than 100 projects and initiatives have been developed and initiated. These interventions are framed within the broad systematic thrusts common to all sector and thematic strategies, addressing growth, competitiveness and increased participation and SME support. Given the fledgling stages of the implementation, it is as yet too early to conduct an impact analysis on the successes of the projects, but initial indications Jo-Ann Johnston are positive and extremely encouraging. The MEDS has expanded the Accounting Officer Department’s sector activities to address critical gaps which inhibit competitive- 31 July 2007 ness and skills development, to improve market access and investment, and to build support programmes for SME and BEE entities within the value-chains. Critical in going forward, however, will be the need to expand these projects to ensure impact across the province. In some sectors, 2006/07 was used to develop, broaden and deepen partnerships to enable the formulation of meaningful interventions identified by the MEDS. Groundbreaking progress in developing consultative fora and dialogue platforms has been achieved, particularly within the Tourism Chief Directorate, Fishing and Aquaculture Industries, and the Creative Industries Unit within Sector Development.

10 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Economic Participation saw the maturing second economy. This has enabled the • R22, 654 million was provided to of the Red Initiative, predominantly with Department not only to engage with fund the remaining budget spend, respect to the rollout of the Red Doors new pro-poor policies, but also to including transfers to municipalities, and the introduction of the Red Door begin to direct current sectors and travel and subsistence, advertising , Mobile, a highly successful innovation thematic thrusts to become more auditor general, training and staff which allows for increased reach into inclusive of the second economy. development and capital equipment. low-density areas of the province. The A significant aspect of growing • R21, 550 million was used to translation of the MEDS into the six and developing the economy for all outsource services to consultants. regions of the province has also its citizens is the spatial translation • R22, 600 million to Casidra mainly gathered momentum. Die Plek Plan and and location of sector and thematic as the agent to setup the RED Door the Local Economic Development interventions and initiatives. operation and to capitalize the programmes placed huge emphasis on Exploratory research and work on the Ikapa/ABSA SMME fund that capacity support and guidance to the spatial dynamics of sectors has been provides access to finance for municipalities, which saw the emergence conducted in 2006/07, and the small enterprises. of aligned and robust local economic Department will be building upon the • R32, 881 million was provided development strategies and projects. research in the forthcoming period. Of to 42 non profit institutions to Within its mandated responsibilities note has been the conceptualization undertake certain interventions of business regulation, the Department of the Creative Industries Precinct in the economy. has aligned its processes and procedures Initiative, which visualizes the • R7, 500 million was provided to benchmarks which exceed the national development of dynamic commercial to CSIR for the management and norm. However, the Department has spaces within targeted communities for implementation of various rural continued the drive to improve the development of not only creative economic interventions. productivity and to adopt innovative sectors, but for the stimulation of internal systems in the search for diverse, economically viable activities Table 1: Outlines significant expenditure constant and continuous improvement within the townships by emerging (>R2 million) by the Department and efficiencies in our service delivery entrepreneurs. within the liquor, tourism guide and The Department has built R’000 consumer protection units. After an considerable knowledge, processes, WESGRO 10, 891 extensive consultative process, the experience, and systems around the Compensation of Employees 30, 372 Cape Town Routes Unlimited 27, 050 Liquor Bill has also been approved by current catchment of projects and Other 22, 654 the Provincial Legislature, and within it, programmes, and will embark on a Consultants 21, 550 the Department will be able to more process of strengthening integration CASIDRA 22, 600 efficiently manage the liquor industry, as not only across Departmental Units, Non Profit Institutions 32, 881 well as introduce social responsibility but also among other provincial CSIR 7, 500 programmes and support mechanisms to departments and among the different TOTAL 175, 498 the informal segment of the sector. spheres of government. Over the past two years, the Department has expended substantial Use of funding CSIR WESGRO 4% 6% effort in the development and • R10, 391 million to WESGRO for Non Profit implementation of the Micro- its basic grant to perform its core Institutions Compensation 19% of Employees economic Development Strategy. functions, and (R500) thousand for 17% However, much still needs to be done. the Global Business Intelligent The growth of the economy alone will Unit. Cape Town not solve unemployment or the • R30, 372 was spent on CASIDRA Routes challenges faced by the marginalized. compensation of employees. 13% Unlimited The MEDS, in its third round in 2006/ • R27, 050 million was used to 16% 07, among others, sought to deepen fund Cape Town Routes Consultants Other the Department’s understanding of the Unlimited (CTRU). 12% 13%

11 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 1: General Information

1.3 Information on and services, improving export destination of choice both nationally capability of firms and institutions and and internationally. the ministry marketing the Western Cape as an Two ministries, namely the Ministry of attractive business destination, both Bills submitted to the Environment, Planning and Economic nationally and globally. legislature Development and the Ministry of The Western Cape Liquor Board The Minister of Environment, Planning was established in term of the Finance and Tourism administer the and Economic Development presented national Liquor Act, 2003 (Act 59 of Department of Economic the provincial Liquor Bill to the 2003). The primary responsibility of Development and Tourism. provincial legislature during the final the Western Cape Liquor Board is to quarter of the financial year. This bill regulate the liquor industry in a Institutions reporting to the was accepted and approved without responsible manner ensuring the ministries opposition. The assenting by the sustainability and achievement of Two institutions report to the premier is now pending, subject only economic growth, transformation and to the certification by the (national) executive authority responsible for job creation, whilst simultaneously economic development. They are the addressing some of the negative Minister of Trade and Industry that the Western Cape Investment and Trade aspects of the liquor industry, whether bill complies with the criteria stipulated Promotion Agency (Wesgro) and the real or perceived. in the Liquor Act, 2003 (Act 59 of Western Cape Liquor Board. The Destination Marketing 2003). Wesgro was established in terms Authority trading as Cape Town of the Western Cape Investment and Routes Unlimited reports to the Ministerial visits abroad Trade Promotion Agency Law, 1996 executive authority responsible for the Over the past financial year the (Act 3 of 1996) and is responsible for tourism portfolio. The primary following international visits were attracting investment into the Western mandate of this organisation is to undertaken by the respective executive Cape, growing the export of products market the Western Cape as a tourism authorities:

Ministerial visits abroad

Executive authority Place visited Purpose Date Minister Essop United Kingdom Economic Development Conference 21 – 26 January 2007 Minister Brown United Kingdom World Travel Market 4 – 8 November 2006 Ministers Essop & Brown India and Dubai Fact finding mission as part of Premier Rasool’s delegation 8 – 17 November 2006

1.4 Mission 1.5 Legislative and effectively and to provide the responsibilities and authority to statement mandate persons entrusted with financial The Department’s mission is a There are a vast number of acts that management in the Department. commitment to drive key economic play a role in the Department’s work sectors that will grow the economy in a ambit, the more important acts and Western Cape Investment and Trade manner that will create decent work for policies are mentioned the following: Promotion Agency Law, 1996 (Act 3 of 1996) entrants into the labour market and to To establish the Western Cape ensure that we reduce the number of Public Finance Management Act, 1999 (Act Investment and Trade Promotion people dependent on social welfare. 1 of 1999 as amended by Act 29 of 1999) We aim to grow and transform our Agency (Wesgro). economy through micro-economic To regulate financial management interventions and to ensure we meet in the Department to ensure that Liquor Act, 2003 (Act 59 of 2003) social, economic and environmental all revenue, expenditure, assets and The Liquor Act, 2003 (Act 59 of equity outcomes. liabilities are managed efficiently 2003) came into effect on 13 August

12 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

2004 and replaced the current Liquor Small Business Amendment Bill, 2004 growth so that technological Act, 1989 (Act 27 of 1989) for To amend the National Small resources are developed, focused and national functions while retaining it as Business Act, 1996, so as to repeal utilised proficiently. transitional measure for provincial all provisions pertaining to the Ntsika functions. It introduces a three tier Enterprise Promotion Agency (Ntsika); The Integrated Tourism Development system into the liquor industry and to provide for the establishment of the Framework (ITDF) regulates the manufacturing and Small Enterprise Development Agency This spatial economic plan reviews distribution tier. It provides for the (SEDA) and to make provision for the tourism potential, supply patterns, devolution of functions relating to the incorporation of Ntsika, Namac and possible product portfolios and routes distribution tier to the provincial any other designated institution into and attempts to match these with the minister and it requires the Provincial the agency. demand from primary and secondary Liquor Licensing Authority to provide domestic and inter-national markets it with statistical information relating Municipal Systems Act, 2000 (Act 32 of servicing the destination. to the retail and micro-manufacturing 2000) tier. To provide core principles, National Tourism Second Amendment Act, mechanisms and processes to enable 2000 (Act 70 of 2000) Businesses Act, 1991 (Act 71 of 1991) municipalities to move progressively To amend the Tourism Act, 1993. The Businesses Act is assigned towards social and economic Provisions in the act include further national legislation that provides for upliftment of communities, and to training and registration of tourist the regulation of informal trading by ensure access to essential and guides, a code of conduct and ethics municipalities, subject to monitoring affordable services. for tourist guides, procedures to of the relevant bylaws by the lodging complaints and disciplinary provincial minister. It further provides Western Cape Consumer Affairs (Unfair measures. that the provincial minister may act as Business Practices) Act, 2002 (Act 10 of an appeal authority in instances where 2002) Provincial Western Cape Tourism Act, 2004 municipalities refuse applications by It is expected that the regulations (Act 1 of 2004) certain types of businesses for applicable to the legislation will be To provide for the establishment of licenses to trade. completed and that the legislation will the Destination Marketing come into effect in the 2005/2006 Broad-Based Black Economic Empowerment financial year. Organisation (DMO). Act, 2003 (Act 53 of 2003) To establish a legislative framework The National Integrated Manufacturing White Paper on Sustainable Tourism for the promotion of black economic Strategy (NIMS) Development and Promotion (2001) empowerment; to empower the A technologically advanced national The White Paper on Sustainable Minister to issue codes of good approach implemented through the Tourism Development and Promotion practice, to publish transformation Department of Trade and Industry in the Western Cape provides the charters; to establish the Black aimed at bringing together all role policy foundations and competitive Economic Empowerment Advisory players in the industry to develop a strategy for the Western Cape to Council; and to provide matters collective vision with the purpose of become a leading global tourism connected therewith. ensuring sustainable development and destination.

13 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 1: General Information

Voted Funds

Appropriation Adjustments Adjusted Actual amount Over/under appropriation spent expenditure R’000 R’000 R’000 R’000 R’000 188 433 (9 772) 178 661 175 498 3 163 Responsible minister Minister of Environment, Planning and Economic Development Ms Tasneem Essop Minister of Finance and Tourism Ms Lynne Brown Administering Department Department of Economic Development and Tourism Accounting officer Acting Deputy Director-General of Department of Economic Development and Tourism (for period under review) Dr Hildegarde Fast

Aim of Vote • to ensure good corporate management of the Department and governance within the included such functions as financial In expressing the vision of a Department, and human resource management, Western Cape which offers dignity, • to enhance the delivery of research and performance monitoring equity and prosperity to all persons services provided by the and evaluation. who call the province home, the Department, The Economic Participation Department has focused its aims • to grow the economy in a programme’s primary function is to to include: sustainable manner, for the entrench the ideals of the Red • promoting and mobilising invest- benefit of all who make the Initiative. Under this initiative, ment and creating decent work Western Cape their home, entrepreneurship, mentorship and for all, • to create employment, especially economic empowerment must ensure • ensuring economic empower- for the presently unemployed, that the economy is developed and ment for all, especially for black • to make ownership of the grows in a shared, accelerated and people, people with disabilities, economy representative of the sustainable manner. The programme women and the youth, demography of the province, also focuses on increasing the • eradicating poverty and address- • to increase levels of participation capacity of local authorities to ing the legacy of under-develop- in the economy by all, especially engage in meaningful economic ment, by the previously excluded and development strategies. • strategically engaging globalisa- presently marginalised, Key strategic objectives linked to tion to the best advantage of the • to make citizens and their this programme are growing the province. enterprises effective players in the economy, employment creation and global economy, economic empowerment. Key Measurable • to create a fair, effective and conducive business environment To give effect to the strategic Objectives, for enterprises and consumers. objective of creating a fair and Programmes and To give effect to the above-mentioned conducive business environment, the strategic objectives, the Department Fair Business Environment program- Achievements was organised into five (5) me was instituted. Core responsibili- Stemming from the stated mandate of programmes namely Administration, ties under this programme’s jurisdic- the Department, the following Economic Participation, Fair Business tion are the regulation of the liquor strategic objectives have been Environment, Economic Sector industry and the management of the derived after investigating national Development and Tourism. consumer protection function. and provincial imperatives, strategies The Administration programme is The programmes of Economic and legislation: primarily responsible for the overall Sector Development and Tourism are

14 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

primarily responsible for the achievement of making citizens and enterprises effective players in the global economy and growing the economy in a sustainable manner through developing interventions in areas such as investment, marketing, SME development and competitiveness within selected sectors of focus. Overview of the Service Delivery Environment for 2006/2007 Structure of the Western Cape Economy With a population size approximately 10% of the national populace or 4,6 million people, an area approximately 10% of South Africa and a GDP share of 14%, the Western Cape falls into the middle range of the nine provinces. Based on the Western Cape’s estimated per capita GRP of about R40 800 in 2004, compared to the national per capita GDP of R28 800, the Western Cape, together with Gauteng, is at the top of the provincial development range. Celebrating Infrastructure is relatively well developed, compared to the other eight the Siyabulela provinces, but is, however, less impressive when compared globally. In Deliverables, addition, deterioration and development gaps are becoming a serious concern Kenilworth in some sectors and places. Education levels are on average much better than Racecourse the national average as is evidenced in the significantly higher literacy levels and Grade 12 pass rates. In 2006, the Minister of Environ- A significant characteristic of the Western Cape’s economy and its ment, Planning and Economic Development, Tasneem Essop, economic development is the broad base and diversity of its industries. The set aside R4 million to support diversity, reduces the risk of overdependence on any single industry. In 80 women’s enterprises and addition, the region has a well developed tourism sector, relatively strong and R2 million to support 60 youth diversified construction, fishing, professional services, higher education and enterprises, in recognition of the protest years. With this gesture, transport sectors. the Western Cape government Within the Western Cape economy, the broader services sector accounts for identified the SME sector and approximately two-thirds of the regional economy. Within this sector, business entrepreneurs as vehicles to bring about economic growth services are particularly important, comprising 27% of the regional economy. and development. This is note-worthy, as the national average is considerably lower at 19%. Manufacturing comprises of 20% of the provincial economy – similar to the On 18 August 2006, 140 entrepreneurs received their letters national figure. Within the manufacturing sector, the primary contributors are of intent at a luncheon held at agro-processing, metals and engineering, oil and petro-chemicals and clothing the Kenilworth Racecource, and textiles. Agriculture (5,6%) and construction (3,4%) are also slightly larger where the Premier of the than the national average. Western Cape, Ebrahim Rasool, was guest of honour. (3rd phase MEDS Synthesis Report, 2006) The RED Door centres and Youth Socio-economic factors Commission identified suitable candidates through assessing rd The following factors, as discussed in the 3 MEDS Synthesis Report, 2006, the business plans of each impacted heavily on the Western Cape economy: candidate. • location of the Western Cape within South Africa’s spatial development This project will also: framework (approximately 1 500 km from the economic hub), · increase skills levels; • its broad regional base, · raise the dignity of • the attractive living and working environment. communities; · create growth and development; and The relative well off position of the Western Cape among South Africa’s nine · create optimism about the provinces can be linked to a number of historic factors that shaped the specific future.

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Part 1: General Information

socio-demographic structure of the strategy of shared, integrated and the income spectrum has occurred, province. These forces influence the sustainable growth is required. The increases in inequality have eroded current trends with respect to the net province through the iKapa Elih- gains realized from the growth in per in-migration to the Western Cape, es- lumayo strategy and other strate- capita expenditure. (PERO, 2006) pecially from the Eastern Cape. gies such as the MEDS and PGDS While the province has been one have attempted to address this Sectoral growth and of the primary beneficiaries in the question. employment prospects economic upswing experienced in The 1995 and 2000 Income and The Western Cape economy is in- South Africa over the past 10 years of Expenditure Survey (IES), used to creasingly service-dominated – fi- democracy, a key question should be compare the growth of expenditures nancial and business services and asked, “Has growth in the Western of the poor to those in the upper retail and wholesale trade alone Cape been pro-poor?” echelon, highlights the acute contrast make up about 44,4% of the In a broad sense, pro-poor in the average growth experience of province’s output, whereas agricul- growth refers to economic growth the wealthy compared to that of the ture, forestry and fishing account that leads to the eventual reduction lower income groups. for 4,5% and manufacturing 18,3%, in poverty levels. To achieve this, a While growth across all levels of respectively.

Composition of the Western Cape exports, 2005

Catering & accomodation 0.3 Electrical machinery 0.4 Other non metal minerals 0.4 CSO services 0.6 Communication 1.3 Radio, TV, instruments 1.7 Finance & insurance 2.5 Business services 2.6 Furniture & other manufacturing 3.8 Wood, paper, publishing & printing 3.9 Transport equipment 4 Textile, clothing & leather 4.3 Petroleum, chemicals, rubber & plastic 4.3 Transport 6.2 Metals, metal products & machinery 9.5 Wholesale & retail 10.4 Mining & quarring 10.5 Food, beverages & tobacco 13.4 Agriculture, forestry & fishing 19.9

0 5 10 15 20 25

Composition of the Western Cape exports, 2005

Source: Quantec

16 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

However, the Western Cape, and South Africa more broadly, are under-represented in skill- and technology-intensive economic activities that have accounted for much of the medium- to long-term dynamism in world output and trade. Given the industrial and export specialisation of the Western Cape, knowledge intensification must aim at reducing the vulnerability of economic activities in the province to first-world protectionism, price volatility and elasticity, and other factors that negatively affect exporters of primary products or relatively simply processed manufactures. This means that it must be sector specific. At the same time it must also reflect the existing skill profile of the Western Cape and the need to increase labour absorption rates. Knowledge intensification cannot mean an exclusive focus on very high-end competences in platform technologies such as information technology or biotechnology. Instead the process must include people and firms in low and medium skill and technology- intensive activities. The Western Cape faces important challenges in its efforts to ensure that there are sufficient employment opportunities for its growing labour force. Preparing for World At 26,3% broad unemployment is lower than the national level (41%), but it Cup 2010 is rising rapidly due to rapid growth of the province’s working-age population. Older people tend to keep their jobs, while younger people are struggling The Bavarian government shared to find employment. This has important implications for future economic its World Cup 2006 experiences with the Western Cape during a growth, as long-term unemployment begins to erode the skills and knowledge World Cup 2006 study tour, that younger labour force members currently have but are unable to extend or sponsored by the Hanns Seidel even maintain through employment. Foundation, and a visit by a We must improve the Western Cape’s ability to create more jobs and Bavarian delegation in October 2006. absorb new entrants into the labour market. Rising unemployment, particularly for young people, is the single biggest risk to the province’s goal of shared A delegation from the Western growth and integrated development. We also need to alter the racial and Cape, consisting of Ministers and high ranking senior officials, gender profile of the workforce in respect of skill and remuneration. visited Bavaria in February 2007 This will require upgrading skills across the spectrum, enhancing economic to gain insight into the scope of stimulation and improving economic participation, and thereby employment the event and integrate planning performance over the medium- to long-term. between provincial Departments. Reducing unemployment is not a short-term concern. It requires a multi-fac- eted approach that accelerates provincial economic growth and boosts labour The Department’s responsibility intensity to raise labour demand as well as enhancing skill profile and towards World Cup 2010 improving economic participation of the province’s labour force. These key includes: • safety for tourists; interventions will realize benefits over the medium- to long-term. (PERO, 2006) • assured quality accommodation; and Overview of the organisational environment for 2006/2007 • road signs to provide information to tourists. In July 2006 an acting Accounting Officer was appointed to fill the gap left when the previous incumbent’s contract was not extended. With this in mind, the The delegation met with various new Accounting Officer prioritised the filling of critical posts to address the Bavarian dignitaries and officials and visited a number of places. extreme lack of human capacity that exists within the Department. They gained valuable information During this process of driving the filling of vacancies, a critical posts grid through good communications, was implemented where all programmes were to provide information on their useful contacts and networking, current vacancies and the progress with the filling thereof. in order to ensure that World Cup 2010 is globally competitive, Capacity has taken a turn for the better in that in excess of eighty posts have internationally marketed, and a been advertised with an additional sector specialist being contracted in during tool for economic growth, skills the period under review. This process remains slow as the average time period development and job creation.

17 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 1: General Information

to appoint staff is in the region of finalisation of the Liquor Bill and its identified through the MEDS process. three months. The slowness is formal submission to the legislature This financial under-resourcing furthermore exacerbated by the need by the Minister of Environmental resulted in the Department to capacitate persons, which is done Affairs, Development Planning and prioritising sectors and intervention through intensive orientation Economic Development. The bill was strategies with a focus on growth and programmes developed within the approved by the legislature on 27 job creation. various programmes. March 2007 and thereafter submitted Finally, during the financial year, it With regard to the vacancies in the to the Department of Trade and became apparent that the Department Economic Sector Development Pro- Industry for comment on its would under collect its projected rev- gramme, sector specialists have been compliance with the criteria of the enue by an estimated R10,4 million. appointed for priority and significant (national) Liquor Act, (Act 59 of The revenue estimates were adjusted sectors that were identified at a 2003), in accordance with Schedule during the adjustment estimate 2006, strategic planning session held with 2(2) of that Act. The regulations are and subsequently meant that the De- the MEC responsible for the being completed parallel to the bill, partment’s estimates for expenditure Department. These appointments have so as to enable the minister to had to be reduced by this figure. The provided for the implementation of promulgate the regulations primary reason for this adjustment critical interventions within the immediately after the premier’s was due to delays in the approval of prioritised sectors. assenting to the bill. the provincial liquor legislation. The With regard to the RED initiative, The backlog of applications by the surrender of these monies from the the Department concentrated its efforts Liquor Board has been all but overall allocation of the Department on appointing persons on a permanent eliminated, with applications had a further negative impact on the basis to manage the back office of the generally being placed on the board’s Department’s ability to implement and RED Door centres. This will provide agenda within four to five months deepen strategies proposed for the for stronger administrative and after being lodged at the respective 2006/2007 financial year, resulting operational support to the RED Door magistrates’ courts. Delays are now in the further re-prioritisation of in- programme and also provide improved increasingly due to incompleteness or terventions. linkages with other initiatives such as other defects that can be ascribed to the PLEK PLAN programme. the applicants or their Strategic overview and key With the appointment process of representatives. policy developments for the staff for RED Door centres and PLEK The transition of the Liquor Board 2006/2007 financial year PLAN programmes, the Department into a fully-fledged public entity also The recent Provincial Economic Re- has found that it is extremely difficult suffered a delay due to the view and Outlook projects to find and place suitably qualified and uncertainty surrounding the passing anticipated Regional Growth skilled persons who meet the criteria of the bill by the legislature. With that Domestic Product (GDPR) for 2006/ for these positions. This has therefore process now at an advanced stage, 2007 at 4%, which is a slight decline placed enormous pressure on the the Directorate: Human Resource on the 4,3% achieved in 2006. already depleted staff compliment Management and Support Services However the premier has challenged managing these projects. has assigned a dedicated staff the province to achieve an economic On the downside, the high member to render assistance to the growth rate of 6% for the medium- turnover ratio of staff, in both the board in this regard and a full report term starting with the year under administrative and line-function areas and implementation plan for the review. of the Department, remains transitional process is being finalised Nationally we have witnessed the disconcerting. Mechanisms to address for consideration and approval by the emergence of catalytic interventions this phenomenon of staff leaving for standing committee and the minister. to achieve sustained, accelerated and better financial rewards are being On the financial front, the budget shared growth. This is to ensure we reviewed. envelop of the Department seriously achieve our Vision 2014 targets and The most important achievement curtailed the province’s ability to contribute meaningfully to the socio- within liquor regulation has been the develop a number of interventions economic improvement of society.

18 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

At a recent national cabinet meeting it was resolved that ASGISA constraints should be addressed concretely as they arise. With this in mind, the Department has embarked on a robust drive to refocus our key programmatic areas, each of which is aligned with ASGISA initiatives. It is against this national and provincial backdrop that the Department of Economic and Tourism prioritised the following initiatives: • Skills interventions: The Department has identified skills development as the most vital component of its strategy to achieve the added growth trajectory expected through ASGISA. Existing skills interventions were intensified and scaled up and specific interventions developed for each priority sector. • Enterprise development: There was continued support for the informal sector and the promotion of the migration of entrepreneurs from the second to the first economy through the facilitation of access to financial services, training and business-related infrastructure. The expansion of the RED Door services offering, in partnership with SEDA, was central to this initiative, as was the intensification of our mentorship programme. We have used the opportunity of licensing (previously unlicensed) liquor establishments to specifically train and equip entrepreneurs in this industry. In all our interventions, we have ensured that participation in the economy is broad- Budget Speeches ened according to the Broad-based Black Economic Empowerment Act. for 2006/2007 • Sector support: The MEDS process has identified priority and significant The Department’s Ministers, sectors which demonstrated the greatest potential to grow and to create Tasneem Essop and Lynne jobs. The priority sectors identified were tourism, BPO, ICT, and oil and Brown, delivered their budget gas, and significant sectors included creative industries, clothing and speeches for 2006/2007 on 18 textiles, and metals and engineering. The critical interventions for these May 2006. sectors focussed on supporting sector bodies, developing infrastructure to Minister Brown announced a 10- improve accessibility and increase competitiveness and growth, and year vision for tourism in the promoting downstream activities that broaden the base of economic Western Cape, including participation. developing the False Bay coast as a tourist destination and • Spatial expression of economic development: It became more apparent that it setting up a public private was necessary to translate the consolidated MEDS research into useful, partnership to operate the geographically disaggregated information and to support municipalities in Tourism Safety and Security developing LED strategies. An integrated programme like the PLEK PLAN aimed Campaign on a continuous basis. CTRU will receive R22.9 million at identifying economic opportunities that municipalities could take up in their to market and promote the regions. Broadening participation and promoting shared growth has further been province as a tourist destination. enhanced through the Real Economic Assistance Fund (REAF), which supports the Minister Essop said that the economic opportunities identified. Department of Economic • Fair business environment: The Department positioned the Office of the Development and Tourism is Consumer Protector as a provincial credit regulator in terms of the National playing a critical role in shaping Credit Act, 2005. The Department also established the Office of the Consumer the policy and practical implementation framework of a Protector and communicated its role through a comprehensive, integrated pro-poor, pro-growth strategy. education and awareness campaign. She also emphasized the • Institutional review: We assessed the various implementation agents used by the importance of local economic Department so as to ensure that the Department will have the appropriate development and mentioned that sustainable strategies and plans institutional framework and vehicles for achieving stated objectives. This process to reach accelerate growth in included a review of the trade and investment promotion activities supported by the rural areas of the Western the Department, with a view to up scaling and intensifying this area of work. Cape must be implemented.

19 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 1: General Information

All of these developments have been This feedback will be invaluable in collection by the Department of informed by our recently adopted increasing the impact of our Economic Development and Tourism “open window” approach, the programmes and interventions. in the 2006/20007 financial year engagement of business leaders in the was R15 million. This revenue was to identified priority sectors to gauge Departmental be collected from the following whether our programmes are address- sources: ing the constraints and challenges that revenue, expenditure, • liquor license fees R14,730 are faced on the ground. and other specific million, These discussions have allowed us • tour guide registration R0,270 to interrogate whether our interven- topics collection of million. tions have met real needs and have Departmental revenue achieved their intended objectives. The original revenue estimated for

Departmental revenue, expenditure, and other specific topics collection of Departmental revenue

2003/2004 2004/2005 2005/2006 2006/2007 2006/2007 % deviation Actual Actual Actual Actual Actual from target R’000 R’000 R’000 R’000 R’000 Tax revenue 3 681 3 781 4 298 4 330 4 236 (2,17)% Liquor licenses 3 681 3 781 4 298 4 330 4 236 (2,17)% Non-tax revenue 395 2 156 330 270 6 929 2 466,29% Sales of goods and services other than capital assets 395 284 266 270 309 14,44% Interest, dividends and rent on land 2 Sales of capital assets (Capital Revenue) 15 Other capital assets 15 Financial transactions (Recovery of loans and advances) 1 855 64 6 620 100% Total Departmental receipts 4040 5 937 4 628 4 600 11 165 142,71%

During the financial year, it became • tour guide registration R0,270 receipts furnished by SARS have once apparent that the Department would million. again manifested themselves while under collect on its projected revenue reconciling the liquor license revenue. by an estimated R10,4 million. The Revenue collected from the issuing of It is intended that once the provincial reason for this under collection was liquor licenses was R4,236 million. Liquor Act is assented to by the due to delays in the approval of the This represents a decrease of 2,17% Premier of the Western Cape, the provincial Liquor Bill. The non from the adjusted budgeted figure of Department can terminate this enactment of the bill meant that the R4,330 million. A factor influencing inefficient relationship and institute Department could not amend the this phenomenon is the non new collection arrangements. liquor license tariffs as set through the enactment of the provincial Liquor Bill With regards to tour guide National Liquor Act, 2003. which resulted in the Department registration fees, revenue collected During the Adjustment Estimate having to maintain the current liquor during the financial year increased by 2006 process, the revenue estimates tariffs as well as retain South African 14,44% or R39 000 from its budgeted projected of the Department was Revenue Services (SARS) as its estimate of R0,270 million. The restated to the following amounts: collection agent. Discrepancies primary reason for this increase is due • liquor license fees R4,330 million, between the cash transferred and the to an increase in the number of tour

20 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

guides registering with the financial year to reduce the amount of R188,433 million for the 2006/ Department. This increase is seen as unnecessary red tape during the 2007 financial year. This allocation a direct result of the interventions put registration process. was funded through the following in place by the Tourist Guide sources: Registration Office to decrease the Departmental expenditure • equitable share: R168,433 number of “illegal” tourist guides in The Department of Economic million the province, as well as other Development and Tourism was • own receipts: R15 million efficiencies put in place over the past allocated an original budget of • financing: R5 million

Departmental expenditure

Programmes Voted for Roll-overs & Virement Total voted Actual Variance 2006/2007 adjustments expenditure R’000 R’000 R’000 R’000 R’000 R’000 Administration 28 502 (4 200) (1 222) 23 080 22 799 281 Economic Participation 49 594 (2 622) 500 47 472 45 919 1 553 Fair Business Environment 15 180 (4 150) (500) 10 530 10 272 258 Economic Sector Development 51 020 2 355 662 54 037 53 377 660 Tourism 44 137 (1 155) 560 43 542 43 131 411 Total 188 433 (9 772) 0 178 661 175 498 3 163

This budget allocation was divided into an estimated R10,4 million. The allocation. Funds from this revenue five distinct main divisions or program- revenue estimates were adjusted retention allocation were used in mes. Programme 1: Administration was during the adjustment estimate Programme 2: Economic Participation to projected to consume 15% or R28,502 2006, and subsequently meant alleviate the burden that the unfunded million of the budget; Programme 2: that the Department’s estimates 1 000 x 1 000 project was placing on Economic Participation, 26% or R49,594 for expenditure had to be reduced the Department’s already tight million; Programme 3: Fair Business by this figure. budgetary envelope. Environment, 8% or R15,180 million; The Department furthermore Programme 4: Economic Sector Develop- received an amount of R628 000 during Transfer payments ment, 27% or R51,020 million; Program- the Adjustment Estimate 2006. These Transfers and subsidies during the me 5: Tourism, 23% or R44,137 million. funds arose as a result of an over 2006/2007 financial year accounted During the financial year, it became collection of revenue in the previous for 59,9% of the total expenditure of apparent that the Department would financial year and formed part of the the Department. This expenditure was under collect its projected revenue by Department’s revenue retention made up as follows:

Classification Amount R’000 Provinces and municipalities 511 Departmental agencies 39 341 Universities and technicons 2 650 Public corporations and private enterprises 32 100 Non-profit institutions 30 481 Households 4 Total 105 087

21 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 1: General Information

The following transfer payments were effected per programme during the 2006/2007 financial year:

1. Name of institution 2. Amount 3. Estimate 4. Monitoring mechanisms transferred expenditure R’000 R’000 Programme 2: Economic Participation Swiss contact 250 000 250 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Quarterly site visits Casidra 20 800 000 16 300 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Quarterly site visits CSIR 7 500 000 7 500 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Quarterly site visits Library Business Corners 250 000 250 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Wesgro 500 000 500 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed SEDA 1 000 000 1 000 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed DBSA 2 000 000 2 000 000 Memorandum of Agreement Monthly progress report Annual financial statements reviewed MA Nyepha 3 500 3 500 Once off payment, therefore no monitoring required

Total 32 303 500 27 803 500 Programme 3: Fair Business Environment FASfacts 1 000 000 1 000 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed ARA 500 000 500 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed WCAOA 400 000 400 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed

Total 1 900 00 1 900 000

22 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

1. Name of institution 2. Amount 3. Estimate 4. Monitoring mechanisms transferred expenditure R’000 R’000 Programme 4: Economic Sector Development Wesgro 10 391 000 10 391 000 Memorandum of agreement Quarterly reports received and reviewed Several visits to project Annual financial statements reviewed Seat on board Cape Craft Design Institute (CCDI) 2 120 000 2 120 000 Memorandum of agreement Quarterly reports received and reviewed Several visits to project Annual financial statements reviewed Cape Africa Platform 600 000 600 000 Memorandum of agreement Quarterly reports received and reviewed Several visits to project Annual financial statements reviewed Seat on board Calling the Cape 3 870 000 3 870 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Cape IT Initiative (CITI) 3 420 000 3 420 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Cape Film Commission 3 670 000 3 670 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Clotex 1 900 000 1 900 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Cape Clothing and Textile Cluster 1 400 000 1 400 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Cape Initiative in Materials and Manufacturing (CIMM) 500 000 500 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Western Cape Tooling Initiative 1 000 000 1 000 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Cape Oil and Gas Supply Initiative (COGSI) 2 800 000 2 800 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed South African Oil and Gas Alliance (SAOGA) 500 000 500 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Fusion Outsourcing Services 100 000 100 000 Memorandum of Agreement

23 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 1: General Information

1. Name of institution 2. Amount 3. Estimate 4. Monitoring mechanisms transferred expenditure R’000 R’000 Programme 4: Economic Sector Development Monthly progress reports Annual financial statements reviewed Performing Arts Network of South Africa 185 000 185 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Cape Town Partnership 500 000 500 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Visual Arts Network of South Africa 180 000 180 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Furntech 175 000 175 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed AMAC 300 000 300 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Western Cape Musicians Association 175 000 175 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Cape Ship Repair 1 400 000 1 400 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Cape Town Boat building & Technology Initiative 550 000 550 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Cape Town Fashion Council (SACTWU) 600 000 600 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Aquaculture Institute of South Africa (AISA) 955 000 955 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Provincial Development Council (PDC) 400 000 400 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed AMTL 2 000 000 2 000 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Total 39 691 000 39 691 000 Programme 5: Tourism West Coast District Municipality 91 000 91 000 Memorandum of agreement Quarterly reports received and reviewed

24 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

1. Name of institution 2. Amount 3. Estimate 4. Monitoring mechanisms transferred expenditure R’000 R’000 Programme 5: Tourism Several visits to project Annual financial statements reviewed Winelands District Municipality 20 000 20 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Site visits Overberg District Municipality 180 000 180 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Site visits West Coast District Municipality 200 000 200 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Site visits Cape Peninsula University of Technology (CPUT) 500 000 500 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Western Cape University 100 000 100 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed South Cape College 200 000 200 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed SANPARKS 250 000 250 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Airports Company of South Africa (ACSA) 120 000 120 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Casidra 1 800 000 1 800 000 Memorandum of Agreement Monthly progress reports Annual financial statements reviewed Site visits West Coast Business Development Centre 22 760 22 760 Memorandum of agreement Quarterly reports received and reviewed Annual financial statements reviewed Manenberg Education and Development Trust 30 000 30 000 Memorandum of agreement Breedekloof Wine and Tourism 109 000 109 000 Memorandum of agreement Quarterly reports received and reviewed Annual financial statements reviewed District Six Museum 500 000 500 000 Memorandum of agreement Quarterly reports received and reviewed

25 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 1: General Information

1. Name of institution 2. Amount 3. Estimate 4. Monitoring mechanisms transferred expenditure R’000 R’000 Programme 5: Tourism Annual financial statements reviewed Destination Marketing Organisation (DMO) 27 050 000 27 050 000 Memorandum of agreement Quarterly reports received and reviewed Several visits to project Total for Vote 105 067 500 100 567 600

Asset Management Details as to how asset holdings have changed over the period under review, including information on disposals, scrapping and loss due to theft.

Major assets >R5 000: Additions Value R’ 000 Furniture and office equipment 11 9 Computer equipment 1 794 Other machinery and equipment 123 Transport 482 Software 28 Total 2, 546

Movement in tangible capital assets per asset register for the year ended 31 March 2007.

Opening Current year Additions Disposals Closing balance adjustments balance to prior year balances

Cost Cost Cost Cost Cost R’000 R’000 R’000 R’000 R’000 Transport assets 1 139 - 482 - 1 621 Specialised military assets - - - - - Computer equipment 1 286 - 1 794 - 3 080 Furniture and office equipment 683 - 119 - 802 Other machinery and equipment 219 - 123 - 342 Machinery and equipment 3,327 - 2,518 - 5, 845

26 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Equipment less R5 000.00 on inventory Item Value R’ 000 Audio visual 6 Computer hardware and systems 212 Office furniture 140 Photographic equipment 5 Office equipment 113 Domestic equipment 4 Cutlery and crockery 12 Cellular phones 0 Computer software 66 Paintings/sculpture 139 Total 697

Details how asset holdings have changed over the quarter under review, including information on disposals, scrapping and loss due to theft.

Asset Additions Transfer in Transfer out Disposal Scrapping Losses due to theft R’000 R’000 R’000 R’000 R’000 R’000 Major (above R 5000) 2 546 0 0 0.016 0 0 Minor (below R5 000) 697 0 0 0.033 0 1

Measures taken to ensure that the Major maintenance projects that have been Projects that will be carried forward to the Department’s asset register remained up to undertaken during the period under review. forthcoming financial year. date during the period under review. No major maintenance projects have No projects will be carried forward The asset register is updated as assets been undertaken during the period to the following financial year. are received. The asset register and under review. Assets are maintained in the BAS system are reconciled accordance with the manufacturers’ New projects that will commence in the monthly to ensure that the two service booklet, and as required. forthcoming financial year. systems are aligned. Due to the ongoing restructuring Facilities that were closed down or process new assets will be purchased The current state of the Department’s downgraded during the period under review. as the restructuring takes place. capital stock, for example what percentage No facilities were closed down or Assets will be replaced in terms of is in good, fair or bad condition. downgraded during the period under the asset management policy. 47% good, 33% fair, 20% bad. review.

27 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

28 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Part 2 Programme Performance

29 Part 2: Programme Performance Programme 1: Administration

Purpose The purpose of Programme 1: Administration is to conduct the overall Summary of management and administrative support functions, collect and collate economic statistics and perform research, which will inform policy Programmes development within the Department.

The activities of Measurable objectives The Administration Programme is primarily responsible for the overall manage- the Department of are ment of the Department’s activities. To ensure that this primary function is organised in the following coordinated effectively, the programme was subdivided into two key sub- programmes, namely Corporate Services and Delivery Enabling Services. five programmes: Corporate Services consists of Financial Management and Human Resource Management and Support Services, and Delivery Enabling Services consists of the Communications Unit, the Departmental Operational and Performance Programme 1: Management Unit and the Research Unit. Administration The key strategic objectives for the Administration Programme are: • to ensure good corporate governance levels within the Department, Programme 2: • to enhance the delivery of services provided by the Department. Economic Participation In terms of ensuring that corporate governance levels within the Department are at acceptable levels and entrenched within the day-to-day operations of Programme 3: the Department, a number of measures and procedures have been instituted Fair Business Environment and enshrined. One of these measures is the Executive Management Committee (EMC) Programme 4: meetings that are held on a regular basis. The purpose of these meetings is two- Economic Sector Development fold, namely to ensure that the Department is operationally efficient and that it is strategically aligned and placed to deliver on the mandate entrusted to the De- Programme 5: partment. Tourism With regard to administrative processes, the Department has ensured that its applicable policy frameworks governing both financial and human resource practices are relevant, modern and in tune with the overall good governance practices frameworks. Key documents that are in place include a financial manual, an accounting officers supply chain management system, a risk policy framework, a risk strategy, a fraud prevention plan, numerous human resource policies and a records management system. It has always been the intention that these documents, policies and framework strategies should serve as extensive training. Presentations to all staff members are also conducted on a regular basis thereby

30 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

ensuring that all the aforementioned documents are “living and working” implementable documents. Regular inspections and performance audits were also conducted during the financial year. The primary purpose of these processes were to ensure that value for money was maintained at all times. They monitored that proper administrative processes, including financial and human resource processes, were fol- lowed, and made sure that professional standards of compliance were maintained. Where various Departmental units reported progress against set deliverables, a verification protocol was implemented. The newly formed Departmental Operations Performance Management Unit houses and facilitates the monitoring and evaluation of all programmes, services and initiatives in the Department as reflected on the Departmental Operations Performance Management System (DOPMS). Effective monitoring and evaluation has become a necessity to ensure that the government of the day is able to report progress made on high-level objectives. The Departmental Planning, Monitoring and Evaluation System Framework emanates from both the Government-Wide Monitoring and Evaluation System (GWMES) and the Province-Wide Monitoring and Evaluation System (PWMES). These frameworks focus primarily on a results based monitoring and evaluation The Deputy approach. President’s Imbizo

So far, operational meetings concerning DOPMS have been held continuous- The imbizo was held on 12 July ly on a four to eight weekly basis with the chief directorates and divisions within 2006 at Plettenberg Bay. The the Department. These meetings ensure that projects, services and initiatives are focus was on service delivery at continuously monitored and evaluated so that the Department can remain on local level, housing and health matters. track with regard to set deliverables as reflected in the annual performance plan, and thus achieve its higher level strategic objectives. The Department used the To enhance the services delivered by the Department, the Communications opportunity to promote the services of the RED Door in Unit has been assisting the programme by carrying out quality control checks on Knysna. events, communications and corporate image branding. So far, systems have been implemented through internal circulars to ensure that there are extensive The manager and staff of the quality control mechanisms with regard to any form of external communication RED Door interacted with the visitors at the marquee and and to project a professional and standardised image. For example, interim informed them about the measures have been put in place with regard to standardised business cards, location of the office as well as letterheads, and other documents. the various services rendered. All research conducted by the Department, whether into Micro-economic These services include inter alia coaching, writing of business Development Strategy (MEDS) research or any other research requested by the plans and advising on financing. various units into the economy, has been centralised into a Research Support Visitors were encouraged to visit Unit managed within the Delivery Enabling Services sub-programme. The central- the RED Door office in Knysna and given flyers with the contact isation of this function has brought about huge efficiencies and it has improved details of the office. the quality and substance of research commissioned. The third phase of the MEDS included research of the following identified Community members pointed out sectors and themes: the informal sector, agricultural and food processing, that it was costly to travel to Knysna for support, and boat-building, wholesaling, retailing and franchising, chemicals, construction, emphasized the difficulties in and printing and packaging. The research for this phase was completed in obtaining financial help for their June 2006. business ventures.

31 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 1: Administration

The MEDS is an important tool for the Department, as this forms the initial point of reference from which all projects and programmes are evaluated. The MEDS is part of a set of provincial strategies which are being developed simultaneously as a common point of departure for provincial government and will assist in providing a common understanding of the regional economic context. The MEDS provides a broad depiction of the critical factors and the important trends which affect our economy in its regional, national and global milieu. It also guides and directs provincial involvement and engagement with the private sector.

Service delivery objectives and indicators The Financial Management DirectorateDirectorate, under the leadership of the Chief Financial Officer, was highly successful in the past financial year in improving the effectiveness, economic viability and efficiency of systems developed since the inception of the Department. With the before-mentioned words in mind, the motto of the unit is not “business as usual”, but rather one of “how do we improve on services rendered to the Department and the public?” Sharing experiences: Members of During the 2006/2007 financial year, the unit was highly successful in the executive management and the del- implementing a number of improvement measures in preparation of moving egates from the Gauteng Department of Finance and Economic Development. the Department from a level 3 to a level 4 audit ready organization. These Mr Siphiwe Ngwenya (DDG: Governance measures include, inter alia: and Business Regulation), leader of the • improvements in monitoring and reporting, delegation, is standing second from the right, next to Hildegarde Fast (on the • improvements in the understanding of the work of the Department, far right). • improved relations with line units, • improvements in understanding financial management through training. Guests from In instituting the above-mentioned, the unit achieved the following goals: Gauteng • managing the Department’s budget to within 2% of the adjusted appropria- A delegation from the Gauteng tion, Department of Finance and • the implementation of risk management policies and practices, Economic Development and • the furtherance of fraud prevention plan implementation, Tourism visited our Department • improving turnaround times for payments to within 15 days of receipt of on 20 September 2006. The purpose of their visit was to invoices, acquaint themselves with our • rolling out an extensive financial management training programme to all structure and practices and for staff of the Department, us to learn from their practical • developing a training programme for service providers to the Department experiences. to improve efficiencies in the supply chain management processes, Mr Siphiwe Ngwenya (DDG for • improving the evaluation of business plans and strategies instituted by the Governance Business Department. Regulation) led the delegation. Members of our Executive Management, representatives The Directorate: Human Resource Management and Support Services from Wesgro, CTRU and the Film has been successful in providing a quality service to line function Departmental Commission joined in the units and staff in general. These services were also aimed at capacitating line discussions. function staff to better perform their human resource management responsibility. The matters discussed included Measures that were implemented included: liquor- and consumer affairs, • capacity building interventions on organizational and job design, SME development, local • quality assurance of job descriptions, economic development, trade and investment promotion, the • information sessions on recruitment and selection, film industry and tourism. • employee health and wellness information sessions.

32 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

In instituting the above-mentioned measures, the following goals were achieved: • decreasing the staff vacancy rate, • working towards an effective organizational structure, aligned to the Depart- ment’s strategic mandate, • providing a professional EAP service offering to staff.

Key outputs in the Delivery Enabling Services sub-programme include the customisation of the performance monitoring system. The Departmental Opera- tional and Performance Management Unit played a key role in facilitating the alignment of the system to the Annual Performance Plan (APP). This involved one-on-one sessions with Departmental units to explain the DOPMS in relation to the APP. Resource Centre The Departmental monitoring and evaluation system will only be implement- The Department opened a ed once the provincial-wide indicator process is finalised at the end of April. Resource Centre. Information The Department did, however, commission impact evaluation studies of its and systems provide support to programmes, and the first phase of an evaluation of the RED DOOR staff and stakeholders. programme was completed in October. The Department’s Time for Work programme is intended to enhance ‘’social capital’’ in the province by mobilising volunteers to support some of our programmes. A pilot programme has been implemented whereby two RED DOOR centres have established “Silver Teams”. These teams consist of experienced, and often retired, individuals with business experience who mentor new entrepreneurs. The Department will seek to expand this particular initiative, and to identify further opportunities where volunteerism can benefit our programmes and build bridges between communities. Economic development capacity-building workshops were held in many municipalities throughout the province. These workshops targeted local stakeholders who interact around economic development issues, including councillors, officials, and community representatives. A detailed manual was developed to Daily news: Jabu Makhambi (intern) support the programme. is reading The Cape Times. Staff will The sub-programme has also initiated an “institutional review” process, also find Business Day, Die Burger and financial publications, such as The which is assessing whether the province’s economic development institutions are Economist in the Resource Centre. able to deliver on the vision of iKapa Elihlumayo and the Provincial Growth and Development Strategy Green Paper. The process was initiated in October 2006 and will result in recommendations in August 2007.

Internet: Nomawonga Phinyane (Fi- nance) is searching for information. The facility is available to all staff members who are not connected to the internet at their own computers.

33 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 1: Administration

Service delivery achievements

Sub-programme: Corporate Services Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Rendering an effec- Approved strategic Strategic plan and Approved strategic The Annual Perform- tive budget manage- plan for Department budget approved by plan for Department ance Plan aligned ment system the Executive Au- budget was attested thority (EA) and by the relevant tabled in the provin- Executive Authorities cial legislature responsible for the Department and submitted to the legislature for final tabling timeously and approved Monthly budget Monthly IYM reports Monthly budget Monthly IYM reports meetings held with submitted to Treasury meetings held with were timeously sub- programme managers programme managers mitted to the Execu- and other manage- and other manage- tive Authorities and ment staff ment staff provincial treasury Timeous submission of Submission to treas- of quarterly perform- All quarterly reports quarterly performance ury of quarterly and ance reports and for the financial year reports and annual annual performance annual report was timeously submit- report reports published ted to the provincial Timeous submission treasury and the annual report was timeously submitted to the provincial legislature To provide and main- 100% compliance to Compliance with the 100% compliance to Zero deviations to the tain a procurement AO system AO system AO system AO system was re- and provisioning ported during the system in the financial year Department To provide assurance Reduction in cases Number of cases Reduction in cases Internal audits con- that financial risks are addressed in internal ducted in terms of the minimised and man- audit reports inspection plan on a aged effectively regular basis Auditor-General and Auditor-General and Auditor-General and All queries raised by internal audit reports internal audit reports internal audit reports the Auditor-General dealt with and reme- dealt with and reme- dealt with and reme- and internal audit dial steps initiated dial steps initiated dial steps initiated processes addressed in a timeous manner with remedial actions instituted

34 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Sub-programme: Corporate Services Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets To deliver of an effi- Annual reporting: Annual reporting: Annual reporting: Financial statements cient and effective Annual Financial Annual Financial Annual Financial presented to the financial accounting Statements submit- Statements submit- Statements submit- Auditor-General in a service in the ted timeously for ted timeously for ted timeously for timeous fashion; Department and the audit purposes audit purposes audit purposes Department also alignment of financial received an unquali- prescripts to achieve Unqualified audit Unqualified audit Unqualified audit fied audit for 2005/ sustainable service report report report 2006. delivery by the public sector To render a support Filling of vacancies Recruitment process function in terms of for 42 vacancies were recruitment and completed, including selection, HRM infor- 17 new appointments, mation system, 13 transfers from maintenance of the other Departments establishment and with promotion, 8 staff performance promotions within the management Department Review of staff Data verification forms establishment were issued to staff members for updating of personal information on PERSAL

Removal of functions from staff that do not require these functions for security reasons Review and assess- Payment of perform- ment of staff performance bonuses for ance rewards 2005/2006 Ensuring appropriate Management of Seven misconduct staff behaviour misconduct and cases registered and through establish- grievances processed during ment of Departmental reporting period, labour relations poli- including that of cies; managing trans- improper conduct, formation issues, poor work perform- misconduct and ance, misuse of IT grievances and dis- equipment, absentee- putes; and the man- ism, dishonesty agement of Departmental collective bargaining

35 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 1: Administration

Sub-programme: Corporate Services Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Managing transfor- Voluntary Counselling mation issues (HIV/ and Testing was Aids, gender, disability, advocated; and other issues) Department re- established a HRFU which consists of 10 members; service provider was appointed to facilitate the DEAP, which includes professional support service, life management service and face-fact counselling Support line managers Manage SPMS Performance bonuses and employees in the allocated management of performance, identification of training and development needs in accordance with the Department’s strategy and management of employee assistance initiatives which reflect values and concerns of the Department Manage drafting and Submitted WSP 2006/ implementation of 2007; arrange various WSP (bursaries, training interven- learnerships, tions; arrangements internships and for the placements of training) interns in various Departmental units; submitted period reports to PSETA and DoP Ensure appropriate Drafting of staff and relevant policies training, education and development policy initiated; review provincial policies Management of Improving quality of Service provider ap- employee assistance work life for employees pointed for EAP Pro- initiatives gramme; period reports received from service provider regarding accessing of services

36 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Sub-programme: Corporate Services Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Rendering of effective Ensure appropriate Submitted information and record management Departmental File Plan records management to National Archives support services; and for approval; Registry addressing issues of Procedure Manual occupational health approved and safety Ensure safe and Participated in process healthy work environ- of developing provin- ment for staff cial OH&S framework

Sub-programme: Delivery Enabling Services Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets To develop and imple- Implementation of A fully implemented Implementation of Consultations with ment the Time for Work time for work Time for Work various Departmental Department’s Time for volunteerism cam- volunteerism cam- volunteerism cam- units; development of Work paign, including paign paign, including pilot strategy successful sourcing of successful sourcing of volunteers and the volunteers and the The Time for Work development of development of volunteerism pilot has different scenarios for different scenarios for been implemented in the manner in which the manner in which Programme 2: Eco- expertise is provided expertise is provided nomic Participation To ensure the coordi- Further MEDS re- Completion of phased Further MEDS re- Completed a synthe- nation of MEDS search in identified research across the search in identified sis report incorporat- sectors and themes identified sectors and sectors and themes ing proposals and for phase 3 themes for phase 3 recommendations as well as executive Development and Development and summaries of all implementation of implementation of research from MEDS MEDS 10-year imple- MEDS 10-year imple- phase 3 mentation plan mentation plan Effective development Refinement and Implementation of Refinement and Draft strategy was Assessment of strat- and implementation implementation of communication and implementation of assessed externally egy outsourced owing of a Departmental strategy corporate image strategy to internal capacity communications and strategy Human Resource constraints corporate image assessment is com- strategy plete

Implementation strategy is in place

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Part 2: Programme Performance Programme 1: Administration

Sub-programme: Delivery Enabling Services Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Development and Implementation of A fully implementable Implementation of All units reporting on Departmental moni- implementation of a the monitoring and monitoring and the monitoring and programmes through toring and evaluation monitoring and evalu- evaluation framework evaluation system evaluation framework the Departmental system to be re- ation system for the for the Department, for the Department, monitoring and evalu- viewed once province- Department including capacitating including capacitating ation system wide monitoring and all staff in applying a all staff in applying a evaluation system in standardised frame- standardised frame- System revised in place work for planning, work for planning, order to align reports monitoring and monitoring and to quarterly reporting evaluation of evaluation of process Departmental projects Departmental projects Further impact evalu- Implementation of Number of capacity Implementation of A total of 6 workshops ations to be commis- economic develop- building skills develop- economic develop- were held sioned ment capacity build- ment workshops to ment capacity build- To effectively deliver ing workshops targeted groups ing workshops economic development capacity building workshops to various stakeholders

38 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Part 2: Programme Performance Programme 2: Economic Participation

Purpose The purpose of Programme 2: Economic Participation is to improve the economy and to entrench the participation of HDI’s through enterprise development, local economic development, and economic empowerment. Measurable objectives The Economic Participation Programme is primarily responsible for the participation of the historically disadvantaged into the Western Cape economy, thereby ensuring that a sustainable growth and economic advancement of citizens is achieved in a shared manner. To ensure that this mandate is coordinated effectively, the Programme was divided into three key sub-programmes, namely Enterprise Development, Local Economic Development and Economic Empowerment. The Enterprise Development sub-programme has made considerable progress toward realising its strategic objectives as outlined below. The strategy of this sub-programme was aligned with the national small business strategy and significant partnerships were formed with national government agencies, such as Khula, Umsobomvu Youth Fund, National Productivity Institute, CSIR, SEDA, SAMAF, DBSA, HSRC, SABS and SARS. At a provincial level, there have been sustained collaborative initiatives with BBBEE dealdeal: Mr. Dale Hutcheson other government Departments, such as the Departments of Transport and Public (Managing Director: Anchor Industries), Works, Community Safety and Social Development. Minister Tasneem Essop (Environment, A close working relationship between Enterprise Development and local Planning and Economic Development) and Mr. Haroon Lachpooria (Old Mutual) authorities exists with regards to the planning and implementation of the single during the media briefing session on entry points for small businesses. These single entry points have become 07 February 2007. institutional within their localities in supporting both new and existing businesses. Enhancing the physical structure of the single entry points within localities has seen the piloting of a mobile service to improve the accessibility of the services BBBEE - Anchor offered by the sub-programme. The success of this pilot has encouraged a roll- Industries and Old out of the service to additional areas within the province. Mutual At local level, the Enterprise Development sub-programme has continued to link themselves to the private sector, non-governmental organizations (NGOs) Minister Tasneem Essop and local authorities in an effort to support SME’s. These linkages have extended announced a broad based black to broader organised business enterprises and to tertiary institutions, such as the economic empowerment deal Cape Peninsula University of Technology (CPUT) and GSB, with the focus on between Anchor Industries, Old Mutual and the Department on 7 sharing technical expertise. February 2007. A comprehensive small business support programme providing both financial and non-financial services to “unbankable” entrepreneurs has also been The partners worked together to conclude the deal which allows undertaken. This support programme has required improved links with the the 44 staff members of Anchor province’s financial institutions and stimulating private public partnerships. A Industries to hold a 25,1% stake programme such as the IKapa/Absa fund, which is based on a 50:50 model in the company. between the Department and Absa Bank for “unbankable” clients, has been one of The Department contributed the outcomes of these partnerships. An important success factor of this R200 000 to the pre- and post- programme is the mentoring support that accompanies the funding of new and deal costs. Old Mutual intends existing businesses. to grow the company through a A fund for entrepreneurs who receive contracts from government and related private equity fund. The fund is to exit after five years and the agencies has been established. This initiative is funded by Absa Bank and the workers’ trust would have a right beneficiaries may access the fund via the single entry points. to the fund’s stake at that stage.

39 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 2: Economic Participation

A tender advice programme dealing with cooperative strategy for the province. both public and private sector tenders is The Local Economic being offered at all the single entry Development sub-programme has points. This gives entrepreneurs the achieved the goals outlined below in chance to access additional markets. realising the strategic objectives of The sub-programme has facilitated Programme 2: Economic Participation. improved access to business information To start addressing some of the through libraries. This has given challenges facing municipalities, the entrepreneurs further support in Department has developed strategy and accessing the internet for research and intervention to fast track support at local development of business ideas and level, such as the PLEK PLAN programme, enhancing existing businesses. Enterprise a comprehensive intervention Development has continued to support programme to promote local economic small business exhibitions where service development, which is discussed later on. providers, private sector institutions, The strategy to support local Delegates at the Small Business finance institutions and parastatals economic development has included Summit 2006. showcase opportunities and linkages targeting the lack of organizational skills for SME’s. and capacity in economic development Small Business To encourage the conversion from within the municipalities. The Department Summit the second to the first economy, the has assisted in establishing economic 1 000 x 1 000 project embarked on development units (EDUs) at district The Department of Trade and unconventional initiatives geared to municipal level. The EDUs provide in- Industries selected the Western address unemployment and stimulate house capacity to municipalities in Cape to host the first provincial annual Small Business Summit entrepreneurship amongst beneficiaries delivering on their regional economic from 12 – 14 November at the at the lower end of the economic responsibility. An EDU or Local Economic Cape Sun Hotel in Cape Town. spectrum. Beneficiaries received basic Development (LED) division in a Each province will have its turn business training and assistance in municipality will promote the increased to host the summit in future. developing business plans. Selected alignment of activities with the other Mr. Ben Martin, chairperson of business plans are available on an open spheres of government and the external the Portfolio Committee, source website and are accessible to environment that impact on local encouraged role players to assess the position of small those wishing to open similar economic development in a municipal businesses, urging them to businesses. The initiative has also seen region. To date funding constraints has make our country a better place beneficiaries being exposed to the allowed for the support of EDUs at for engaging in business. He formal banking sector. district municipal level only. used the Chinese work ethic, rather than the legislative In addition, the Siyabulela project The unit has embarked on road framework, as an example to identified sixty youth and eighty women shows throughout the year, which ensure success: be hungry for entrepreneurs across the Western Cape comprised a series of workshops business and respect time Province who will receive financial throughout the province. The workshops management. support and mentorship. In line with created awareness, built better Mr. Mandisi Mpahlwa, Minister ASGISA and Ikapa Elihlumayo, the participation, and assisted the launch and of Trade and Industry, mentioned project seeks to share and grow the roll-out of programmes like the PLEK the necessity of a coherent economy of the Western Cape. PLAN and other support programmes and strategic direction across all growth sectors to optimise the With cooperative structures playing a benefits as one-stop-shop advice and window of opportunity that major role in improving access to business support centres and co- exists. “The way in which we markets, the Enterprise Development operatives development. The unit also work as different components of sub-programme has undertaken a series proactively supported increasing the government and industry is critical. Implement rather than of regional workshops aimed at alignment of Departmental programme challenge.” informing the development of a implementation with national and

40 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

provincial objectives and programmes local government and aims to improve Summit, business, labour, local like the ISRDP, URP and Project the credibility of local economic government and civil society. This Consolidate. development plans of municipalities by engagement has laid a firm foundation There is considerable alignment of building on the foundation laid by the for provincial government’s efforts to the sub-programme’s strategy with the Economic Development Unit (EDU) not only obtain buy-in and support from framework that has emerged from support provided to district municipalities these important role-players, but to also national government for LED. by the Department. The PLEK PLAN fully understand the issues underlying Furthermore, the unit has taken the programme is seen as an intervention economic empowerment of the targeted ASGI-SA programme of action and that speaks directly to the elements of the groups. internalised its deliverables within its key national framework for stimulating local The Economic Empowerment unit performance areas. economies. has managed to establish economic Local government is the primary The Economic Empowerment advisory forums for five of the targeted client of this unit. In this financial year sub-programme has completed the beneficiaries, namely women, the youth, close and credible working relationships development of a first draft Broad Based organised businesses, rural with municipalities have been Black Economic Empowerment (BBBEE) communities and people living with strengthened through IDP assessments strategy in the province. The sub- disabilities. Terms of references for the and reviews, local government MTEC programme’s progress thus far and the above-mentioned forums have been sessions, LED road shows and one-on- measures that will be taken to achieve completed and a programme of action one engagements, local imbizos and the identified strategic objectives are set formulated. The forums will feed the technical support provided in the build- out below. Economic Advisory Council’s up to district growth and development The BBBEE strategy will give implementation program. The unit is summits. These engagements created direction in addressing the inequalities currently undertaking research in a awareness of Departmental interventions resulting from the past policies. The monitoring and evaluation system for and support. They built better strategy is aligned with the national the forums and council. participation and coordination between BBBEE Strategy, the Codes of Good The Economic Empowerment unit local and provincial governments around Practice on BBBEE, micro-economic continues to play an active role in economic development plans, and raised development strategy and Ikapa municipalities via the RED DOOR awareness about national support Elihlumayo. centres to economically empower the programmes and benefits, such as the The unit’s strategy will further align needs of those people who need it ISRDP, URP and Project Consolidate. with the programmes of the Enterprise most. The critical role of local There have also been collaborative Development and Local Economic municipalities cannot be over- initiatives with other provincial Development sub-programmes. This will emphasised. Local municipalities government Departments and agencies, be achieved through jointly developing currently have capacity problems in such as the Departments of Local and implementing economic terms of enterprise development and Government and Housing, around empowerment initiatives that are economic empowerment. The unit needs capacity building for local municipalities consciously targeting women, people to actively engage local municipalities and projects that will increase greater living with disabilities, rural communities on a more regular basis. Therefore, as a economic participation and ownership in and the youth. priority, the sub-programme will embark a local area. The Economic Empowerment unit on a pro-active campaign to capacitate This financial year saw the roll-out will provide guidance to municipalities in local municipalities with regards to and establishment of the PLEK PLAN the development of their procurement economic empowerment issues. programme. The programme aims to policies and economic empowerment In addition, the unit has started to increase the number of local people and programmes through the Local Economic play a leading role in facilitating BEE enterprises entering, participating and Development sub-programme. deals, because of an evident need for owning in the local economy by Since November 2003, there has an independent intermediary to identifying and developing local been intense consultation and broker BEE deals between financial economic and business opportunities. It cooperation with the partners of the institutions, black entrepreneurs and was furthermore developed to support provincial Growth and Development white corporate. The unit has

41 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 2: Economic Participation

facilitated numerous BBBEE deals leading to an increase in job creation and expanding economic participation amongst previously disadvantaged people.

Service delivery objectives and indicators The Enterprise Development sub-programme had significant success in achieving its targets especially in the roll-out of new centres and mobile offices. The roll-out of the national Small Enterprise Development Agency in the province slowed our intended roll-out of particular centres. The subsequent strategy has been to establish a relationship where enterprise development happens throughout the province in a seamless manner and ensure that no duplication of services occurs. The success of the RED DOOR concept is based on a relationship between various levels of government in a locality. As part of the consolidation, this has formed an integral part of our strategy to cement our relations with local municipalities. Factors affecting non-delivery on targets has mainly been part of negotiations with third parties that led to the slow pace of implementation of the project. The RED DOOR programme is the flagship programme of the Department in addressing SME development and has identified three new areas to operate from. These areas include Bayside (Table View), Mossel Bay and the mega RED DOOR operating in central Cape Town. These centres will be fully operational in the new financial year. By utilising the current nine centres, the RED DOOR programme has assisted 1 938 businesses with business advice and support for the financial year. The voucher programme, a programme done in conjunction with the City of Cape Town, has issued 589 vouchers to entrepreneurs and thus subsidizing the cost of entry into business. The mobile programme started as a pilot programme in the metropole in February 2005/2006 and due to its success, it was extended to three new areas covering the following rural areas, Vredenburg (servicing the West Coast), Hermanus (operating in the Overberg region) and Stellenbosch (requested by the Stellenbosch Setting up presentations for the West municipality). One of the strategic objectives of the mobile RED DOOR project is to Coast LED Road Show. take business and support services closer to the communities. To date the mobile programme has assisted thirteen entrepreneurs with business support and advice and LED Road Shows has met with 660 individuals. The Ikapa/Absa programme supported smaller businesses, but made meaningful contributions due to loans being issued in predominantly rural areas. The number of Local Economic Development (LED) held two road shows loans issued was 101, with a greater portion issued to rural businesses. during the second week of The Co-operatives Service Provider Training Programme was September. The purpose of the successfully executed in collaboration and partnership with the Department of Trade interaction between Minister and Industry, and fifty trainees benefited. Essop and senior management was to engage with the District The unit was mandated to undertake the Siyabulela DeliverablesDeliverables, which was Municipalities of Eden and Cape announced by the premier in March 2006. The project was to be implemented in the Winelands on local economic 2006/2007 financial year. As this was one of the premier and MEC’s deliverables, it development matters. The was not previously budgeted for within the proper budgeting cycle. The magnitude and delegation visited Eden on 4 and 5 September 2007 and the Cape cost of this intervention caused delays in the delivery of the intervention. The Winelands on 7 and 8 September beneficiaries have been identified and launched, and the diagnostics phase and pre- 2007. mentorship phase of the project completed. An annual small business event, which brought together role-players and The road show for the West Coast District Municipality was stakeholders to advise, inform and showcase initiatives, interventions and programmes held on 13 October 2006. for small businesses in the Western Cape, took place in August 2006. Over 4 000

42 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

visitors attended the event. Since its through IDP assessment and review The following project opportunities inception this significant event has been processes, and also through LG MTEC were recorded: with regard to project influential in the evolution of small processes to test local economic opportunities submitted to other businesses in the Western Cape. As a development strategy formulation and Departmental sub-directorates for platform for showcasing developmental implementation progress. It has further support, ten local opportunities initiatives, gaining direct contact with the provided economic expertise and (from tourism to the creative industries small business community and support to all thirty municipalities in the and retail opportunities) were sourced networking with influential government local economic development strategy, across the regions; with regard to Departments, corporate and and prioritized the achievement of project proposal opportunities identified personalities, it is unmatched in the increased economic participation in a by PLEK PLAN and developed based on country. region. In addition, through the delivery REAF criterion of economic viability, The NGO imbizo served as a of phase one of the PLEK PLAN Eden Connect is well on its way to platform for the Department of Economic programme where five PLEK PLAN establishing George as a suitable Development and Tourism to engage offices were rolled-out and operated at destination for the call centre industry; relevant service providers and ensure that district level, twenty-four municipal feasibility studies were completed for there is a match between the service economic profiles at both district and three project proposals, Phezomkhono offering of the Department and the local level were completed by financial hydroponic farming, Eden Connect and capacity available in the market. year-end, exceeding the target of ten as a Lavender Hill essential oils project, The Department also has to ensure initially proposed. The target for this with three more underway, Rhofmeister that the necessary mechanisms are in financial year was exceeded due to the horseshoe, Touwsrivier condom factory place to catalyze second to first economy joint collaborative efforts of the and Rooibos tea export possibilities; migration. provincial treasury on the socio- establishing the economic feasibility of A series of workshops were held in economic profiling of local government, these projects increases the likelihood the five districts in a bid to gain an under- and the pro-active nature of the PLEK of partnership investment in viable standing of the challenges faced by PLAN managers appointed. These projects that may have a catalytic impact particular service providers and also to profile developments ensured that all on struggling local economies; with develop a provincial footprint of localized PLEK PLAN managers engaged regard to projects undertaken in mentors. municipalities not only on the current collaboration with other Departments, a The 1 000 x 1 000 programme status of local economic development in minimum of one project was undertaken benefited 544 individuals who received their regions, but provided support in joint collaboration in each region. R1 000 to run their business. Of these along with the Local Economic Investigations were also undertaken 544 individuals, twenty-three entrepre- Development unit to District Growth and to identify projects to support national neurs were acknowledged for taking their Development Summits that were held programmes (like ISRDP, URP and businesses to the next level, graduating and finalised within all regions. Project Consolidate). Support was from survivalist to micro businesses. Implementation of pioneering pilot rendered to Matzikama and Cederberg The Local Economic projects that increase community-based on their local economic development Development sub-programme has ownership and participation by local plans and project and planning with the achieved the targets set out below people can only occur because of City of Cape Town on its urban renewal towards realising the greater partnerships and cooperative plans is underway. The objective is to Departmental goals. governance initiative. To this end, the create better alignment on local To start addressing some of the Local Economic Development unit economic development plans in terms challenges faced by municipalities, the continued to seek and identify pilot of key priorities and budgets. Local Economic Development unit project proposals for development and The provision of economic developed strategy and intervention to partnership that could result in the development support services extends fast track support at local level. The unit establishment of new and economically across a very broad spectrum of aimed to provide guidance and technical viable ventures, predominantly agri- government to grassroots-level support to strengthen the economic business, for the benefit of the communities. The Local Economic development capacity of municipalities previously disadvantaged. Development unit recorded in the range

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Part 2: Programme Performance Programme 2: Economic Participation

of ninety-six engagements that required currently showing good profits which economic assistance, ranging from augers well for future dividends. One of provision of expert advice and non- the reasons for not achieving our target financial support, to follow-up of ten economic empowerment engagements required for workshops, transactions, is that in many cases the imbizos and taskteam-initiatives in seller was expecting too high a price regions and daily requests to which would not have benefited the government that was responded to. This BBBEE beneficiaries. exceeded the annual average of Three BBBEE Charter workshops approximately fifty engagements. were held focussing on Agri-Bee, ICT Finally, a successful round of road and construction. The objective of these shows called “setting the scene for workshops was to encourage existing credible local economic development” businesses to implement BBBEE. A total was held with local government. The of 250 delegates attended the aim was to deepen the previous workshops. engagements held on local economic A service provider was appointed to development by focusing on some of review and redraft the present Western Janine Adriaanse is the proud owner of the specific economic development Cape Government Preferential J9 Beads, a small owner-driven compa- challenges facing municipalities, and Procurement Policy. We could not meet ny providing unique and innovative tableware. determining the most appropriate areas the target of completing the Preferential of Departmental support interventions Procurement Policy in this financial year J9 Beads and services required. This resulted not due to the fact that the BBBEE Codes of only in establishing a renewed Good Practice were only approved in J9 Beads was established in commitment to joint delivery efforts December 2006 (gazetted in February November 2003. As unemployed between the spheres of government, but 2007), and the alignment of the PPPFA single mother, Janine Adriaanse it also established a platform from with the BBBEE Act will only be started selling her products at the Constantia Craft Market. She which local government could set an completed by the end of June 2007. then moved to Green Market agenda and work plan towards hosting The facilitation of the economic Square, where she had to share credible district growth and empowerment opportunities will a stall initially. By 2005 she had development summits across the contribute towards making the stalls at Green Point and the V&A Waterfront. She plans to province. ownership of the economy create her own home décor The most significant achievements representative of the demography of the under the name of Janine Jones within the Economic Empowerment province, and it will also increase the Creations, selling handmade, sub-programme were the facilitation of levels of participation in the economy by proudly South African articles. opportunities. The sub-programme has all, especially the previously excluded Janine is community-driven and completed five economic opportunities and presently marginalised. committed to eradicating totalling R30 million. One of the The fact that the Codes of Good unemployment through job opportunities facilitated included a deal Practice on BBBEE were only approved creation. She uses her friends and family to produce some of in the oil and gas industry where by the Department of Trade and Industry her tableware. workers gained a 25,1% stake in the in December 2006 placed enormous ownership of the company. The workers pressure on the Economic She is currently studying towards a NQF 5 crafters’ are undergoing training to understand Empowerment sub-programme. This has operational management their role on the executive board resulted in the BBBEE strategy not being learnership at the Cape Craft meetings of the company. The workers completed. The service provider is, Development Institute (CCDI) to are extremely excited and were not however, in the process of consolidating formalize the experience she gained during her challenging expected to make a contribution from final inputs from the consultation business career. their own funds. The company is process.

44 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Service delivery achievements

Sub-programme: Enterprise Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Establishment and 3 SME support service Number of conven- 3 SME support service Mossel Bay, Bayside All these centres were maintaining of exist- centres assisting 1 iently located SME centres assisting and the Mega RED being established ing conveniently 000 entrepreneurs support service cen- 1 000 entrepreneurs DOOR toward the end of located SME support with advice, tres newly estab- with advice, the financial year and service centres information, etc. lished and number of information, etc. would therefore only assisting entrepre- reflect activity in the neurs with advice new financial year Maintenance and 11 SME support iently located SME 11 SME support 9 SME support service The additional support monitoring of existing service centres assist- support service cen- service centres assist- centres operated, service centres only conveniently located ing tres ing 1 500 entrepre- supporting 1 461 came into being in SME support service neurs with advice, entrepreneurs with the fourth quarter centres 1 500 entrepreneurs Operating (additional information, etc. information and and therefore the with advice, informa- to those newly advice shortfall tion, etc. established) and Number of conven- number of assisting entrepreneurs with advice Establishment of new 1 mobile/pilot satellite Number of mobile 1 mobile/pilot satellite 3 additional mobile Stellenbosch munici- mobile SME support SME support service RED DOORs SME support service units established in pality settled for a service centres centre centre Vredenberg, mobile service as Hermanus and opposed to a fully- Stellenbosch fledged office due to the SEDA office being established in the area Programmes and 11 mentorship pro- The number of 11 mentorship pro- 2 671 entrepreneurs projects which address grammes assisting at projects/programmes grammes assisting at assisted the needs of small least 200 entrepre- implemented least 200 entrepre- businesses, business neurs each neurs each associations and entrepreneurs in local areas and communities Programmes and 11 programmes of Number of entrepre- 11 programmes of 1 614 entrepreneurs projects which address capacity building and neurs receiving capac- capacity building and assisted the needs of small training for at least ity building and training for at least businesses, business 500 entrepreneurs training 500 entrepreneurs associations and entrepreneurs in local areas and communities Programmes and 10 entrepreneurship The number of 10 entrepreneurship 14 entrepreneur-ship projects which address programmes directed projects/programmes programmes directed programs directed the needs of small implemented businesses, business associations and entrepreneurs in local areas and communities

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Part 2: Programme Performance Programme 2: Economic Participation

Sub-programme: Enterprise Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Programmes and Provision of business Regular updated Provision of business Resource centre projects which address information via a website and resource information via a updated with refer- the needs of small dedicated website centre dedicated website ence material businesses, business and 10 physical and 10 physical associations and locations locations Website updated entrepreneurs in local areas and communities Programmes and 400 vouchers issued Number of vouchers 400 vouchers issued 707 vouchers issued projects which address issued for business the needs of small support businesses, business associations and entrepreneurs in local areas and communities Monitoring, evaluation Carry out independent Annual report on the Carry out independent HSRC report available and impact study of research study (includ- impact of RED DOOR research study (includ- RED DOOR initiative ing monitoring and initiative interven- ing monitoring and evaluation) into the tions evaluation) into the Real Enterprise Devel- Real Enterprise Devel- opment strategy opment strategy regarding SME support regarding SME support service centres service centres Co-host an annual 1 small business week Number of attendees 1 small business week 4 117 delegates at- Report available collaborative event in partnership with and number of ex- in partnership with tended and 60 exhibi- with private and City of Cape Town hibitors City of Cape Town tors public sector partners attracting at least 4 attracting at least 4 showcasing real busi- 500 attendees and 60 500 attendees and 60 ness opportunities exhibitors exhibitors and linkages

(Small business week) Co-host an annual Number of business 1 100 business link- collaborative event to business linkages ages were made with private and made public sector partners showcasing real business opportunities and linkages

(Small business week) Design and implement 11 outreach plans Number of outreach 11 outreach plans 194 outreach plans outreach activities containing specific programmes under- containing specific from each SME outreach programmes taken to introduce outreach programmes support centre the notion of entrepreneurship and (RED outreach) provide advice

46 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Sub-programme: Enterprise Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Conceptualisation and Conceptualisation Implementation plan Conceptualisation Each RED DOOR is identification of and planning the completed and planning the consulting local mu- infrastructure for SME project project. nicipalities to establish trading and infrastructure for manufacturing entrepreneurs

(RED trading places) Design and implement Design and plan for Implementation plan Design and plan for Preparation for the an initiative to im- the implementation completed the implementation project prove the competi- of an enterprise of an enterprise tiveness of enterprises competitiveness competitiveness intervention intervention (C RED) Establish and imple- Accredited training Design and imple- Accredited training The Red campus is ment a structured courses provided ment accredited courses provided linked to the Mega curriculum of accred- through SME support business-training through SME support RED DOOR; the cam- ited business training service centres curriculum service centres pus will be hosted in courses available the Mega RED DOOR. through the SME Mega RED DOOR support service centres finalised and Red campus will continue Red campus in new financial year Dedicated fund to Directly financing at Number of entrepre- Directly financing at 138 entrepreneurs Backlog in applications, assist entrepreneurs least 150 entrepreneurs assisted by least 150 entrepre- assisted many applicants not considered neurs fund neurs interested anymore. “unbankable” Quality of other applications, viability problematic therefore no loans issued, revised structure of the programme to improve quality of the programs Design and implement Design and plan for Implementation plan Design and plan for Sample plans placed on an intervention to the implementation of completed the implementation Wikipedia website as construct business an ”enterprise shop” of an ”enterprise reference to entrepre- plans from viable intervention shop” intervention neurs and would be business opportunities expanded to other programs in the (Enterprise shop) Department, e.g. Siyabulela women and youth targeted project Design and imple- Cooperative strategy Provincial strategy Cooperative strategy Strategy not com- DBSA in process to ment a provincial document completed document document completed pleted; Department of develop strategy and cooperatives develop- Trade and Industry has action plan being ment strategy given the go ahead in developed, strategy November for provin- development to cial strategies; DBSA continue in next identified to develop financial year the strategy

47 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 2: Economic Participation

Sub-programme: Local Economic Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets To provide guidance, 5 PLEK PLAN offices Number of local PLEK 5 PLEK PLAN offices 5 PLEK PLAN offices support and capacity rolled-out, and oper- PLAN offices. rolled-out, and oper- rolled-out, and to municipalities ating at municipal ating at municipal operating at munici- through the PLEK level Established and level pal level; all DPP PLAN programme (the operating managers engaging economic develop- with municipalities ment units and IDP on current status of assessments and local economic devel- reviews) to strength- opment in their ening the economic regions development capacity of municipalities Through the PLEK Phase 1, based on Number of municipal Phase 1, based on 25 municipal profiles: PLAN programme PER&O 2006, estab- economic profiles PER&O 2006, estab- inform local economic lished the founda- established lished the founda- 11 profiles completed development strate- tions of the economic tions of the economic gies and plans (IDPs) profiles of municipali- Number of matrix profiles of municipali- 14 profiles draft in that will guide and ties sheets populated and ties editing support the perform- interventions/ or ance of local govern- opportunities identi- ment in achieving fied increased economic participation Through the PLEK Development of local Number of local Development of local 29 municipal strategy PLAN programme matrices that will be municipal LED strate- matrices that will be developments assisted inform local economic used to inform mu- gies supported and used to inform mu- through expert advice development (LED) nicipal local economic assisted with nicipal LED strategy (LG MTEC 3) strategies and plans development strategy (IDPs) that will guide Through 5 road shows and support the held, 29 municipalities performance of local supported by LED government in strategy development, achieving increased and the development economic participation of the matrix tool Implementation of 8 local business Based on local PLEK 8 local business 10 local business pioneering pilot opportunities PLAN economic oppor- opportunities opportunities projects that will tunities identified - increase community- number of project 4 local business oppor- based ownership and opportunities submit- tunities channelled to participation in line ted to other Tourism (Elim and with the vision of Departmental sub- Bredasdorp) iKapa Elihlumayo directorates for further support 2 additional tourism opportunities (Mossel Bay and Eden)

Rhofmeister horse shoe in collaboration with RED DOOR

48 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Cape Winelands retail business to Paarl RED DOOR

Overberg film opportunity in collaboration with ESD: creative industries Implementation of 2 business projects Number of projects 2 business projects 2 projects pioneering pilot developed based on projects that will identified economic Eden Connect project increase community- opportunities development based ownership and underway participation in line with the vision of Phezokomkhono seed iKapa Elihlumayo production project development undertaken; Department support halted at request of project proposers who sought financial assistance only, and declined the non-financial assistance that is a condition of accessing REAF Implementation of 3 projects Based on local PLEK 3 projects 6 projects pioneering pilot PLAN economic projects that will opportunities identi- Feasibility study increase community- fied and number of completed for 3 based ownership and projects supported by projects participation in line the Economic Assist- (Phezomkhono, Eden with the vision of ance Fund Connect and Laven- iKapa Elihlumayo der Hill essential oils)

Feasibility study underway for 3 projects Rhofmeister horseshoe, Touwsrivier condom factory, export opportunity in West Coast for rooibos tea

49 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 2: Economic Participation

Sub-programme: Local Economic Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Implementation of 50 engagements Based on local PLEK 50 engagements 96 engagements

pioneering pilot PLAN economic oppor- st projects that will tunities identified the 1 quarter increase community- mount of community 14 engagements held based ownership and assistance required i.t.o provision of expert participation in line advice and non- with the vision of The number of en- financial support

iKapa Elihlumayo gagements to provide nd expert advice and 2 quarter non-financial support 28 engagements via workshops, imbizos and task teams in regions offering expert advice

3rd quarter 32 engagements

Responses (12)

DGDS engagements (13)

One-on-one meetings and imbizo engagements (7)

4th quarter 22 engagements

Responses (9)

DGDS prep meetings and summits (6)

One-on-one meetings (7) To ensure practical Number of opportuni- Number of identified 4 opportunities 6 opportunities identi- alignment of ties identified interventions that identified fied Departmental offer economic oppor- programmes with tunity for projects 2 identified ideas from national and provincial that can be sup- municipal projects objectives (e.g. PGDS) ported that impact assessed for viability through regional on ISRDP, URP and i.t.o impact on ISRDP in development Project Consolidate region initiatives (e.g. ISRDP, URP, and Project Support to LG LED Consolidate), and strategy development actively maximising (Project Consolidate provincial govern- Municipalities) ment’s spending

50 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Sub-programme: Local Economic Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets 2 opportunities identified to assist Matzikama and Cederberg through WC DGDS and LED processes

1 opportunity identified to assist URP (CoCT) with better alignment in city’s IDP and explore spatial opportunities for economic development in target areas

Project Consolidate, 1 joint project estab- Number of projects 1 joint project estab- Eden and actively maximis- lished per region impacted on through lished per region Herbertsdale in col- ing provincial govern- collaboration with laboration with ment’s spending other Departments Department of Agricul- ture Plettenberg Bay coming together project (LGH)

Cape Winelands NSDP Pilot with DoTP and LGH

Overberg Support with Overstrand LED strategy development, rezoning and subdivi- sion

All regions LED road shows and DGDS processes in collaboration with LGH, DOA and DoTP

Collaboration on guideline for human settlement. Input provided on intergrated Human Settlements chapter in IDPS for municipalities

51 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 2: Economic Participation

Sub-programme: Local Economic Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Project Consolidate, Bi-annual, provincial- Number of provincial- Bi-annual, provincial– 5 road shows held in and actively maximis- wide road shows and wide road shows and wide road shows and 5 regions based on ing provincial govern- workshops workshops workshops LED strategy development’s spending ment

Technical assistance to DGDSs of the 5 regions To create/ build aware- 2 reports on bi- Number of awareness 2 reports on bi- 5 road shows held in ness and provide annual road shows programme imple- annual road shows regions creating access to urban, rural and workshops; to mented and workshops; to awareness of all DEDT and township commu- include recommenda- include recommen- support interventions nities to Departmental, tions made to pro- dations made to MEDS (spatial), PLEK provincial and national gramme drivers programme drivers PLAN, RED DOORs, support programmes Tourism, FBE etc. and benefits at local level 5 road show reports completed based on For example, updates outcomes of individual on MEDS, Die PLEK road shows PLAN, RED DOORs, etc.

Sub-programme: Economic Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Provide a strategic Completion of strat- Fully developed and Completion of strat- The consultant is The alternative framework for the egy document implemented frame- egy document consolidating the launch is scheduled promotion of economic work input from the consul- for November 2007 empowerment in the tation process into the Western Cape final draft document To ensure that the To give advice on Number of informa- To give advice on The following BBBEE component is a empowerment deals tion sessions on empowerment deals charter workshops were credible source of and facilitate access to charter and facilitate access to facilitated: ICT; Agri- information regarding funding; to provide funding; to provide Bee and Construction; economic empower- information on BEE Number of BBBEE information on BEE the following databases ment issues charters and scorecards businesses updated charters and score- have been completed: on database cards retailers and wholesal- ers, fishing companies, financial institutions, black stationary companies, clothing companies, women owned businesses, oil and gas, wine estates, jewellers, furniture, construction and Cape film industry

52 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Sub-programme: Economic Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets To ensure that the Creation of newsletter A fully developed and Creation of newsletter Economic empower- The proposed date for component is a and information implemented commu- and information ment is in the process the first publication credible source of booklet; directory of nication strategy booklet; directory of of appointing a serv- will be November 2007 information regarding youth and women in youth and women in ice provider to draft, economic empower- business; strategy of business; strategy of and design the news- ment issues showcasing youth showcasing youth letter success stories success stories To facilitate access to At least 10 economic Number of black At least 10 economic Successfully facilitated Many business plans finance for economic empowerment oppor- businesses that empowerment oppor- 5 economic opportu- to facilitate economic empowerment opportunities directed at access funding and tunities directed at nities empowerment opportunities and the targeted groups business opportuni- targeted groups tunities was received; monitoring and evalu- ties and the develop- in many cases the ation thereof ment and evaluation seller was expecting a of the system high price which would not have benefited the BBBEE beneficiaries The establishment 4 advisory councils The unit facilitated Alternative launch and operationalisation established workshops in all the date scheduled for of advisory councils districts of the prov- April - June 2008 ince; terms of reference were presented, amended and adopted; the unit has drafted a comprehensive report on the workshops and have identified gaps on the implementation plan; further consultation with rural women was recommended

Provide information Provide access to An increase in partici- Provide access to The Centre for E- Discussions were held on access to technol- information on tech- pation of women in information on tech- Innovation within the with the Centre for E- ogy to women in rural nology to women in the economy of the nology to women in Premier’s Office is Innovation to estab- areas rural areas; develop- Western Cape rural areas; develop- doing a similar project lish how we could be ment programme in ment programme in of assistance in the support of women in support of women in roll-out of their technology technology programme To ensure that the To have final prefer- Preferential procure- To have final prefer- The unit appointed a The unit is currently provincial government ential procurement ment policy is 100% ential procurement service provider to in the consultation policies (e.g. procure- policy which is aligned aligned to BBBEE policy which is aligned review and revise the phase of the review of ment) contribute to to BBBEE framework to BBBEE framework present Western Cape the Western Cape the furthering of BEE and is implemented in and is implemented in government preferen- government preferen- in the Western Cape all provincial govern- all provincial govern- tial procurement tial procurement ment Departments ment Departments policy. This process was policy delayed, due to the fact that the BBBEE codes of good practice were only approved during December 2007

53 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 3: Fair Business Environment

Purpose social objectives such as reduction of more functionality with regard to The purpose of Programme 3: Fair personal debt, access to credit, black management reporting, especially Business Environment is to ensure economic empowerment and develop- concerning productivity of individual an equitable, socially responsible ment of social and economic infra- users of the system and better age business environment within the structure. In addition to growing the analysis of complaints, as well as Western Cape through general economy, the achievement of greater trend analysis, i.e. variances in num- intervention within the trading equity in society, which is one of the bers of complaints received in specific environment, and through specific main foci of regulation, is indeed one categories, during a specific reporting interventions mandated by the of the broad objectives of govern- period. This, in turn, enables the sys- Constitution and national and ment, as embodied in ASGI-SA. tem to be used as a service delivery provincial legislation and policies. The Western Cape Provincial improvement tool, as turnaround Government is aware of the dire need times can be monitored better and in- Measurable objectives for socially responsible trade. The terventions to improve service can be The Fair Business Environment province has, for example, the highest taken sooner. An initiative to intro- Programme is primarily responsible incidence of foetal alcohol syndrome duce performance-based funding re- for ensuring an equitable and socially in the world; the highest teenage garding the complaints collected responsible business environment pregnancy rate in the country, often through and managed by the advice within the Western Cape. To give linked to alcohol abuse, and its popu- office network on behalf of the unit, effect to this mandate, the Programme lace is, in line with the rest of the was put on hold pending the comple- was divided into two key sub-pro- country, heavily over-indebted. The tion of a monitoring and evaluation grammes, namely the Office of the need for regulation in order to ad- study on the advice office funding and Consumer Protector (OCP) and dress such social ills is therefore support programme, but will be pur- Liquor Regulation. acute and the provincial government sued in 2007/2008, when the recom- The regulatory industry has gained is committed to promotion of social mendations contained in the report tremendous prominence in post- responsibility in the trading environ- are set to be implemented. In the apartheid South Africa, with both ment. meantime, a marked improvement in government and industry being instru- The programme has over the past the number of complaints, as well as mental in the establishment of few years and particularly in the last the assistance rendered in respect regulatory institutions as a bulwark few quarters managed to align its thereof, has been registered. This is against abuse and exploitation of con- processes and procedures to bench- a clear indication of the renewed sumers and in promoting sound and marks that exceed the national norm. commitment by the advice offices ethical business practices. Whilst reg- However, it acknowledges that in or- to continue to render the contracted ulation is often viewed negatively by der to be truly excellent rather than services, despite circumstances the business sector, it acts as an ena- merely better than the rest, it needs that are often very trying and bler, providing a platform for all the to constantly assess and review its discouraging. economic role-players, such as con- priorities and projects with a view to The number and scope of the edu- sumers, enterprises and the various re-aligning these to adapt to an ever- cational projects of the unit was ex- levels of government, to cooperate in changing business and regulatory panded despite the absence of staff. a structured, legally secure and pre- environment. Public engagements, such as road- dictable environment towards eco- The OCP sub-programme has shows, often involving a number of nomic growth and transformation. continued to refine its systems for other regulators, workshops, some- There is now general acceptance that complaints management, and has at times also in conjunction with regula- growth should not be at the expense the same time engaged in several tors, and radio talks, increased by of equity, and government’s approach review initiatives. With regard to the more than 100% during the period is to establish mechanisms to unlock refinement of its systems, it has over- under review, and increased distribu- the benefits of economic growth seen several minor enhancements of tion of educational and marketing whilst minimising social costs. At the the CMaTS complaints management material has led to an increase in same time, it seeks to address other system. These enhancements provide awareness of the office and its

54 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

services that will be measured against previously registered levels as part of a broader communication and marketing strategy in 2007/2008. Within the Liquor Regulation sub-programmesub-programme, liquor licence administration was vastly improved during the period under review, mainly due to better information management which was done through a customised version of the CMaTS, enhancement of business processes through clustering of duties and re-alignment of duties in accordance with such clustering, the execution of duties in accordance with service delivery goals set in conjunction with staff, and the implementation of service delivery improvement proposals made by the clients of the Liquor Board. The board has sat a record number of times in 2006/2007. The approach of checking applications for completeness and defects before being placed on the agenda for board meetings started to yield results. Finalizing applications by way of conditional approval rather than postponing them indefinitely where there were outstanding issues also afforded prospective licence holders the opportunity to achieve compliance within a set period. The number of approvals, particularly in respect of HDI applicants, has climbed dramatically, and the increased approval rate has led to an increase in the number of applications from that sector. The service delivery target of a 90-day turnaround on applications now seems achievable within 2007/2008. Furthermore, the number of lapsed liquor licences dropped dramatically following the redesign of the renewal no- tices sent to clients; the implementation of a system of verifying and updating licence holders’ addresses, as well as a system of regular and structured monitoring of the progress of renewal payments being made, and to remind new licence holders of the imminent lapsing of their licences. The possibility of SMS reminders and outbound telephonic reminders will be pursued in future, once the updating of the database of licence holders, which is currently in progress, has been finalised. Lastly, the number of inspections conducted by the Liquor Board Inspectorate has increased despite the resignation of one of the three inspectors. The development of a protocol for liquor inspections has progressed to such an extent that it is likely to be implemented early next year.

Service delivery objectives and indicators Imbizo Week: This programme seeks to achieve its objectives through regulation of the retail 26 – 31 October and micro-manufacturing tiers of the liquor industry, as well as the provision of 2006 alternative dispute resolution mechanisms and/or accurate, reliable information to consumers who received, or consider themselves to have received, unfair A presidential imbizo was held treatment from businesses and other service providers. during the last week in October 2006/2007 saw the Office of the Consumer Protector (OCP) mak- 2006. The focus was on local ing further progress with regard to turnaround times in respect of internal con- economic development. A total of 30 meetings were held at sumer complaints resolution. The procedural call-back response time for municipal level across the complaints lodged at the call centre was reduced from 72 hours to 48 hours, Western Cape. Matters but approximately 63% of consumers were contacted on the same day they tele- discussed on the economic phoned the call centre for the first time. The outsourcing model allows consum- agenda included access to finance, how to start a business, ers to lodge complaints at the call centre via a toll free number, where details of business opportunities and job the complaint are recorded by a call centre operator and transmitted to the creation, as well as accessibility OCP via e-mail on a shared software management system. This model has been to services.

55 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 3: Fair Business Environment

utilised by the OCP since August thereof to ascertain the continued ex- Town in mid-March to coincide with 2003 and has become a best practice ecution and viability of the project. World Consumer Rights Day on 15 model, as it was implemented by the The main observations and recom- March. Attended by representatives national Department of Trade and In- mendations emanating from the eval- from some thirty-six advice offices, it dustry in 2006 and is being consid- uation were that the project’s benefit was addressed by speakers from three ered by three other provinces. to local communities was substantial regulatory institutions in celebration The OCP was instrumental in the and irreplaceable in the short term, of regulatory successes in 2006. It unification of the majority of advice and that a relatively minor increase was also cost-effective in the sense offices in the province under the ban- in capacity in the OCP to handle op- that it was used as an opportunity to ner of the Western Cape Advice Of- erational aspects of the project renew the funding agreements with fice Association (WCAOA). The OCP would render major benefits in terms the 27 OCP-funded advice offices. acted as secretariat to the steering of freedom to enhance strategic man- The Western Cape Consumer Af- committee, funded the steering com- agement. These observations and fairs (Unfair Business Practices) Act, mittee process and launch conference recommendations were accepted and 2002 (Act 10 of 2002) has not been and secured financial stability for the implemented. The project is unlikely implemented yet. Some of the com- organisation’s first year of operation to be expanded in 2007/2008 be- plaints that could not be resolved in- by way of a transfer payment. Other yond the twenty-seven advice offices ternally by the Complaints government Departments are already currently funded. The year is rather to Management Unit were referred to the providing financial support to a be used for consolidation of the Consumer Affairs Committee (CAF- number of individual advice offices project against the backdrop of the COM) at the Department of Trade and within this network. Both the public formation and full operationalisation Industry. The implementation of the sector and private sector have been of the WCAOA. One of its primary National Credit Act, 2005 (Act 34 of approached for funding to enable the objectives is to scan the paralegal 2005) provides the OCP with the newly-formed association to execute environment and make recommenda- power to act as provincial credit regu- its mandate to develop the capacity of tions for additional funding of un- lator and tribunal. This function will advice offices and paralegals to pro- funded or insufficiently funded advice possibly be included in the regulations vide access to free basic legal advice offices that comply with certain that are being concluded as a precur- and assistance to their local commu- agreed criteria. sor to the first tribunal hearings. nities. It is envisaged that the The internal electronic complaints The Education and Marketing Unit WCAOA, the only provincial structure management system, CMaTS-OCP, registered the highest number of rou- for advice offices in the country after was installed at the Bonteheuwel tine radio engagements ever in 2006/ the demise of the National Communi- advice office as part of a pilot project 2007, with regular mid-week slots on ty-Based Paralegal Association (NCB- in early 2006. SITA approval was several community radio stations, PA) in 2005, will play a leading role sought and obtained to have minor such as Radio KC (Paarl), Radio Zi- in the national representative parale- modifications made to the software bonele (Khayelitsha), Radio Atlantis gal structure. Several sector players so that it can be adapted for applica- (Atlantis), Radio CCFM (Muizenberg) are currently working towards this tion across a network of external and Radio Helderberg (Somerset objective. non-governmental offices and in- West), as well as a number of occa- An external evaluation of the stalled at the other twenty-six advice sional slots on mainstream radio sta- OCP’s long-running advice office offices during the 2007/2008 tions. More than twenty-five funding and support project was con- financial year. workshops and information sessions ducted in the second and third quar- A series of six training workshops were held in conjunction with various ters to identify shortcomings and to on consumer issues, including the regulators in all areas of the province, consider and suggest measures to ad- civil procedure and contract law was and preparations for two major cam- dress these shortcomings. The evalua- completed over a two month period paigns, one commuter-targeted and tion also commented generally on the ending March 2007. the other print media, were completed efficacy, social value, public percep- The annual conference for advice for execution in the first quarter of tions and infrastructural requirements offices was as usual held in Cape 2007/2008.

56 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

The sub-programme’s activities con- responsible drinking and trading, as query management to a call centre, tributed to the Department’s outcomes well as improved enforcement and had to be delayed until the provincial with regard to: penalty provisions, including compul- government’s contract with the current • enhancing service delivery through sory forfeiture of assets in certain cir- call centre service provider has ex- further reduction of response time cumstances. The Act is expected to be pired at the end of the financial year. on call-centre lodged complaints, promulgated for implementation as The imminent implementation of the and exceeding its target, which is from the second quarter of the 2007/ new provincial liquor legislation will the benchmark for provincial con- 2008 financial year. necessitate training of the call centre sumer affairs offices, The implementation of recommen- staff on the new procedures provided • creating a fair, effective and con- dations emanating from last year’s re- for in that legislation. The outsourcing ducive business environment for view of internal processes for option, through which a major in- enterprises and consumers finalising licence applications has re- crease in efficiency has been achieved through providing consumers with sulted in higher levels of efficiency, in other areas of this programme, will a variety of access points to lodge with shorter turnaround times in al- be pursued as part of the implementa- complaints, providing quick, effec- most all areas of the processing tion of the provincial Liquor Act. tive complaints resolution and/or chain. Coupled with the very high The liquor licence renewal proc- referral, and providing consumers work rate of the Liquor Board under ess, the major administrative activity with consumer-related information its new chairperson, this has led to of the board during the third and to protect themselves and/or en- the virtual elimination of the backlog fourth quarters, was improved with the force their consumer rights. Simi- in applications by year-end. By the introduction of a revised renewal no- larly, information is supplied to end of the first quarter of the 2007/ tice. This revision was the first one in the business sector to enable it to 2008 financial year, the Liquor Board eleven years and instructed licence become more consumer-orientat- expects to achieve its objective of holders to provide proof of payment ed and therefore commercially considering new applications within of their annual renewal fee by post or competitive. three months, restated from four telefax to the board. The result was a months, from date of lodgement at the reduction in the number of payments The restructuring of the framework for magistrate’s court. that could not be accounted for and liquor regulation in the province The operationalisation of an elec- easier resolution of queries relating gained moment with the approval by tronic information management sys- to non- or late payment of renewal the Provincial Legislature of the West- tem during 2006/2007 continued to fees. Certain additional measures to ern Cape Liquor Bill after an exten- yield positive results in the past year, reduce the number of lapses due to sive and intensive public and with both Liquor Board staff and its non-payment of renewal fees that stakeholder consultation process. The client base benefiting from the im- were considered for implementation bill is acknowledged to set bench- proved efficiencies it brought about in this year, such as bulk SMS reminders, marks for provincial liquor legislation terms of query management and file bulk e-mail reminders and outbound particularly with regard to efficiencies tracking. It is envisaged that the sys- calls, could not be implemented be- in the envisaged application process, tem will be further enhanced to act as cause of the then immanent termina- much more extensive public notifica- a complete liquor licensing adminis- tion of the agreement with the call tion requirements relating to liquor tration solution under the new legisla- centre service provider. The follow- licence applications, provision for tion. In view of the lead it has taken in up on these reminders would have measures to accommodate applicants this regard, the Western Cape has continued past the expiry date of from previously disadvantaged back- been tasked to lead an initiative for the agreement, but these measures grounds and areas against the back- the development of a standard liquor will be implemented under the new drop of inadequate land use planning licensing system for all provinces that legislation. provision in such areas under the pre- is also compatible with the system The chairperson of the Liquor vious political dispensation, measures used by the National Liquor Authority. Board for the past nine years left the to address the social ills resulting The envisaged outsourcing of cer- civil service midway through the year from abuse of liquor and to promote tain functions, particularly first-level under review and a new chairperson

57 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 3: Fair Business Environment

took the helm in July. In spite of the prevention initiatives in schools and general shortening of the waiting concomitant interruption in meetings on farms in the Worcester and Malm- period for new applications to be and hearings, the board sat a record esbury districts and at shebeens in enrolled for consideration, number of times and considered a Oudtshoorn as part of a pilot expan- • growing the economy and creat- record number of applications, there- sion beyond the Boland base of the ing employment through the fast- by almost extinguishing the backlog of NGO. Almost 5 000 learners benefit- er rate at which applications applications by year-end. Far fewer ed from the initiatives 4-module ”ex- were considered, thereby legiti- matters were postponed for further periential learning”; 546 farm mising and solidifying many pre- consideration than in previous years. workers participated in the combined viously unlicensed businesses, The board favoured conditional ap- 1-module sessions and forty shebeen and thus enabling them to recruit proval of application subject to com- owners took part in the sessions staff for the expansion of their pliance with strict guidelines relating adapted for the informal trade in now legalised operations, to the completion of premises and Oudtshoorn. Responsible trading was • making ownership of the econo- other conditions. This approach ena- promoted through the Association for my representative of the demog- bled applicants, especially those from Responsible Alcohol Use (ARA) by raphy of the province (the previously disadvantaged back- means of a number of media outlets, number of approvals in respect grounds, to commence trading or including a radio jingle and message of PDI liquor outlets increased trading legally much sooner. Industry read by the presenter, engagement disproportional to the total; sources have already reported the with owners and managers of liquor • creating a fair, effective and con- positive economic benefits of this ap- licensed establishments to subscribe ducive business environment for proach by the board. to, implement and actively propagate enterprises and consumers Whilst a substantial proportion of the ARA Code of Practice, and a bi- through firm regulation of liquor the sub-programme’s activities were monthly newsletter. These will be fol- establishments, with due provi- compromised by the delay in the pass- lowed up with a commuter-targeted sion for consumer protection and ing of the new legislation, its activities campaign in 2007/2008. social responsibility issues, such relating to socially responsible drink- The sub-programme’s activities as banning the sale of liquor in ing and trading continued unabated contributed to the Department’s out- papsakke and supporting initia- and on a larger scale than in previous comes with regard to: tives to promote the province- years. It again funded the Worcester- • enhancing service delivery through wide application of the code of based NGO FAS facts, which imple- a vast reduction of backlog of ap- practice for responsible liquor mented foetal alcohol awareness and plications to be considered, and a trading.

58 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Service delivery achievements

Sub-programme: Office of the Consumer Protector Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Implementation of Consumer Tribunal Fully operational act Consumer Tribunal No sittings held, as Lack of capacity in the existing provincial fully operational and Consumer Tribu- fully operational the regulations to OCP to deal with this consumer protection nal the Consumer Affairs addressed by recruit- legislation, including Act still need to be ment of Director: OCP establishment of the finalised to manage the Consumer Tribunal project; regulations were drafted and submitted for comment to Legal Services and arrangements made to fast-track finalisation in 2007/ 2008 financial year Provision and mainte- All internal systems Fully functional and All internal systems All systems fully nance of effective and fully operational effective systems for fully operational functional; review and appropriate internal receipt, recording, upgrade done on one systems that enable management and of two internal sys- consumers to lodge finalisation of con- tems (CMaTS-OCP) their complaints and sumer complaints and the other queries with the OCP (Callogue) subject to change depending on the service provider appointed as external call centre agent Number of complaints Increase in number of 10% increase in Overall increase of 8% Preparations com- handled increased by complaints handled at number of complaints pleted for major 10% over base year OCP commuter-targeted and print media campaigns in 2007/ 2008 Providing support to Fully functional elec- Well-equipped and Fully functional elec- Pilot installation and advice offices funded tronic complaints resourced advice tronic complaints assessment done at by the Department management system offices management system one advice office (ECMS) installed and (ECMS) installed and operationalised at all operationalised at all funded advice offices funded advice offices

Accredited training Well-trained advice Accredited training Advice office manage- Scarcity of accredited provided to all con- office staff and provided to all con- ment committee staff courses overcome by sumer complaints management sumer complaints mentored on office by presenting non- handling staff at handling staff at office basis accredited courses; advice offices and to advice offices and to accredited courses in management commit- management commit- specific areas identi- tee members tee members fied in 2007/2008 for presentation in 2007/ 2008

59 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 3: Fair Business Environment

Sub-programme: Office of the Consumer Protector Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Establishing advice Advice offices estab- A province-wide Advice offices estab- Advice offices recog- offices as a brand lished as a trusted network of advice lished as a trusted nised and utilised as service delivery point offices enjoying a high service delivery point Department-funded for consumers in level of recognition in for consumers in service delivery points province, recognised local communities province, recognised in local communities by at least 25% by at least 25% population in province population in province Monitoring and evalu- Implementing of Effective monitoring Implementing of External assessment of Preparations (deter- ating levels of service accepted recommen- and evaluation (M&E) accepted recommen- service delivery at mination of scope delivery, and imple- dations system in place to dations. advice offices and terms of refer- menting constant measure and improve ence, and tender improvement strate- service delivery by Recommendations specifications) for gies OCP and advice implemented of assess- assessment of advice offices, measured ment implement offices against external benchmark (interna- Internally: Scope and tional best practice) ToR of assessment finalised, tender specs prepared Identifying, devising Increasing awareness At least three major Increasing awareness Large number of and implementing of OCP as a brand by brand awareness of OCP as a brand by routine radio and appropriate and effec- 50% amongst popula- campaigns undertaken 50% amongst popula- workshop engage- tive measures to raise tion of province and research study tion of province ments to compensate awareness of the completed on their existence of the OCP effect and impact on Preparations com- and the services OCP brand pleted for large-scale offered by it commuter-targeted and print media campaign

Sub-programme: Western Cape Liquor Board Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Finalisation and prom- Legislation fully opera- Enactment and Legislation fully opera- Liquor Bill approved by Timeframe for imple- ulgation of provincial tional, conversion of implementation of tional, conversion of Legislature in March mentation drawn up liquor legislation existing licences Western Cape Liquor existing licences 2007; peremptory pre- for implementation by initiated Act initiated promulgation consul- July 2007 tation with national minister commenced

60 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Sub-programme: Western Cape Liquor Board Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Management of Western Cape liquor Fully operational Western Cape liquor Liquor Bill approved by implementation of legislation passed, and structure in accord- legislation passed, and legislature in March new legislation and act and regulations ance with the legisla- act and regulations 2007; peremptory pre- transition of Liquor thereto promulgated tion thereto promulgated promulgation consul- Board to public entity tation with national Liquor Board opera- Liquor Board opera- minister commenced tional and administra- tional and administrative staff, Designated tive staff, Designated Police Officers (DPO’s) Police Officers (DPO’s) and municipal officials and municipal officials capacitated capacitated Maintaining an effec- Elimination of backlog Elimination of backlog Backlog except for 1 tive and socially of applications of applications month eliminated by responsible liquor end of final quarter licensing system Reduction of waiting Reduced waiting Reduction of waiting Preparations made to time for consideration periods for liquor time for consideration New applications fast-track system of new applications to licenses of new applications to placed on agenda development after bill 4 months from date 4 months from date within 1-2 months of approved, in first of receipt at Liquor of receipt at Liquor receipt quarter of 2007/2008 Board Board; operationali- Done sation of new infor- Operationalisation of mation management new information system of new management system liquor licensing system

Operationalisation of Engaging Innovation new liquor licensing to fast-track; with system drawing from national initiative with other provinces to procure a standard system (as this slows down procurement) and investigating possibility of buying an implementation-ready system based on WC Gambling Board system, etc. Development and Conduct at least 300 Fully implemented Conduct at least 300 179 inspections com- Preparations for implementation of an inspections in terms enforcement and inspections in terms of pleted Allocations of training manual of enforcement and of protocol compliance protocol protocol inspections to Liquor inspectors and DPOs compliance protocol for Board inspectors inspectorate division resulted in faster The protocol (i.e. a of the Liquor Board completion of at least manual which states 40 matters in which manner of inspection; final reports from essential and mini- designated police mum items to be officers were awaited covered in inspection; number of impositions per establishment per

61 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 3: Fair Business Environment

Sub-programme: Western Cape Liquor Board Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets period, etc.); could not be finalised, as it has to be based on/take into account the new legislation Inspections were carried out i.t.o. existing act, largely i.t.o. increased demand from board, which considered and approved a record number of applications in 2006/2007 Development and Fully implementable Fully implemented Fully implementable Liquor product safety implementation of a Liquor Product Safety Liquor Product Safety Liquor Product Safety determined as func- Liquor Product Safety plan developed with plan plan developed with tion of (national) (LPS) plan other industry role- other industry role- Department of Agri- players players culture in terms of Liquor Products Act; input given in contact with membership of Liquor Industry Sectoral Task Group; implementation will be done by Department of Agriculture The outcomes of research already commissioned by the unit has been used to implement a ban on papsakke Support to WIETA to Roll-out of identified Increase in export of Roll-out of identified WIETA project not WIETA received ensure that suitable projects, monitoring quality wine and projects, monitoring supported funding from other standards are main- and evaluation increase in accredita- and evaluation funds tained for the export tion certification of SA quality of wines wine Transformation of the Increase HDI owner- Increased number of Increase HDI owner- Granting of applica- With bill approved, liquor industry ship by 20% over retail outlets owned ship by 20% over tions by HDI’s in- transformation plan baseline and managed by HDI baseline creased substantially being completed for owners compared to previous implementation in years second quarter of 2007/2008 HDI applications and fast-tracked those, resulting in an increase of more than 50% in licences approved i.r.o. HDI applicants

62 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Sub-programme: Western Cape Liquor Board Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Roll-out of mandatory 20% of existing liquor All new and existing 20% of existing liquor Training manual training programme licence holders (1 200) liquor licence owners licence holders drafted; to be on responsible liquor and all new licence and establishment amended in accord- trading holders (estimate: managers trained on (1 200) and all new ance with final ver- 800) trained responsible liquor licence holders (esti- sion of legislation trading mate: 800) trained Support for projects Roll-out of FAS aware- FAS awareness projects Roll-out of FAS aware- Roll-out on West that raises awareness ness projects beyond conducted on an ness projects beyond Coast and in of FAS in targeted Breede River Valley ongoing basis in all Breede River Valley Oudtshoorn; figures: 4 areas (particularly in Cape regions of the province (particularly in Cape 653 learners and 596 Winelands, Overberg Winelands, Overberg adults (farm workers and West Coast), and West Coast), and 40 shebeen target of 5 000 learn- target of 5 000 learn- owners) ers and 1 000 adults ers and 1 000 adults Support for responsi- 750 000 people At least two major 750 000 people Radio campaign on ble liquor consump- reached through responsible liquor reached through Heart Radio (approxi- tion awareness campaign consumption aware- campaign mately 600 000 project ness campaign(s) “opportunities to implemented across hear” over 3 months) the province Target was exceeded via RIAs through other media Training of law en- 50% (approx. 180) of 400 targeted officials 50% (approx. 180) of Training to commence Draft of training forcement and justice DPOs and at least 50 trained in liquor DPOs and at least 50 in 2nd quarter of 2007/ manual prepared officials for more prosecutors trained legislation prosecutors trained 2008 financial year pending finalisation of effective enforcement on existing and/or on existing and/or legislation; will be of liquor legislation new liquor legislation new liquor legislation amended in 1st quarter and training to be outsourced to expe- dite process of ready- ing SAPS liquor officials for implementation of act

63 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 4: Economic Sector Development

Purpose The main objective of Programme 4: Economic Sector Development is to develop, strengthen and promote key sectors of the provincial economy, and to implement strategic interventions within and across sectors and industries using the Micro- economic Development Strategy (MEDS) studies as the guiding framework.

Measurable objectives The Economic Sector Development Programme is primarily responsible for the development, strengthening and promotion of key sectors within the provincial economy, and to implement strategic interventions across sectors and industries identified through the MEDS processes. To give effect to this mandate, the programme has been divided into two key sub-programmes, namely Industry Devel- opment and Strategic Sector Support. Significant progress towards fulfilling the Department’s mandate has been achieved, as outlined below. Flying high: Viola May (ESD), Lindel- The resource based industries sector was managed through interven- wa Mkalipi (Communications) and Bongiwe Lwana (CTRU) seen at our tions identified by our beneficiation component. The modus operandi was to de- stand during the Africa Aerospace & velop networks with global entities that have common interests in beneficiation Defence exhibition (AAD). activities. The development and mobilisation of partnerships have further enabled specialised research to establish opportunities in industries such as agricul- Africa Aerospace ture, forestry, aquaculture, mining and other associated value chains. and Defence With regard to the manufacturing sectorssectors, the Department played a lead- (AAD) 2006 ing role in developing strategies that have impacted on the labour-intensive industries, the capital-intensive industries and the oil and gas and related Africa Aerospace and Defence downstream petrochemical industries. The Department’s involvement in manu- exhibition 2006 was held at the facturing sectors determined which industry segments were to be supported, so Ysterplaat Air Force Base from that the focus would be on industries in which there were more likely to be gains 20 – 24 September 2006. It attracted exhibitors, official in the areas of growth, employment and broadening of ownership, and in which delegations and trade visitors there could be economic participation by the previously excluded and currently from around the world. AAD marginalised groups, as well as the global competitiveness of firms. However, it 2006 highlighted contemporary has also been proven that sector strategies do not yield equity and participation developments that have the potential to enhance trade outcomes without direct agendas that pre-determine efforts toward these out- objectives and opportunities as comes. In other words, prioritisation of sectors according to their potential was well as assist the South African not enough. The Department also played an active role in determining and driv- Government in its NEPAD and ing these pre-determined goals within each sector. African Union objectives. The service industry sectorssectors, which include, inter alia, call centres and Economic Sector Development, business process outsourcing (BPO) operations focused primarily on develop- Special Purpose Vehicles (SPVs), ment programmes of the various industry segments. the Boat Building Initiative, CCDI Interventions in segments such as BPO’s and call centres, which are still and the Biotech Institute, as well as Wesgro, CTRU and the fledgling industry segments in our economy, have been dominated by the devel- City of Cape Town all shared opment of growth strategies and plans to transform those sectors to best meet exhibition space. the demands of competing in an increasingly competitive global environment. Visitors to the exhibition were The entire creative sector represents diverse industries ranging from film given the opportunity to be to crafts, architecture to music, from heritage and museums to advertising. This informed about the programmes broad range of sub-sectors is underpinned by raw ”creativity” and can be char- and support to the industry and acterized as knowledge-intense, labour intense, SME intense and the fact that it to SMEs, and to learn a few tricks from truly professional has both cultural and economic dimensions. The Department has built and exhibitors. strengthened its relationship with relevant stakeholders as advocated by its

6464 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

“open window” philosophy. High 2007 to develop the projects South Africa and is a significant growth sub-sectors have been ana- together with the sector bodies and a achievement in an industry that is lysed with the objective of developing number of these initiatives have been fragmented and has had some chal- and implementing initiatives which un- launched during the course of this fi- lenging dynamics with which to con- block growth potential within the sec- nancial year. tend. The council is now operational tors and realise synergies between the The Industry Development sub- and a number of projects are under- various sub-sectors. programme has accomplished numer- way. The impact of fashion designers With regard to Strategic Sector ous achievements during the financial plays an important role throughout Support, the Department has devel- year. These are broken down in the the entire clothing and textile value oped interventions and strategies of a respective industries that the Depart- chain and for this reason designers cross-cutting nature which have a sig- ment prioritised. are well represented on the council. nificant impact on the province’s com- Highlights of the year for develop- The Western Cape Tooling Initia- petitiveness as a global player. These ment of the manufacturing indus- tive was launched in October last interventions and strategies include try include the launching of two new year and is the first provincial Tooling issues such as, human resource industry initiatives, and significant initiative in South Africa. It has development (HRD), research and progress towards creating an interna- become the benchmark for other development (R&D) in technologies tionally recognised oil and gas serv- provinces that recognise tooling as and resources, new technology ice hub. the bedrock of the manufacturing development, innovation and HIV/ While there have been some sector and some are now in the Aids. tough issues to deal with in the fledg- process of replicating the model. A ling oil and gas industry, some re- highly experienced CEO has been Service delivery objectives markable progress towards achieving appointed and the body is now fully and indicators the vision of becoming an internation- functional with some exciting The delivery objectives and indicators ally recognised oil and gas service developments in progress. From of the sub-programmes of the Eco- hub for West Africa has been made. being an industry on the decline, the nomic Sector Development Pro- Approximately R800 million worth of Western Cape Tooling Initiative has gramme align with the overall repairs and fabrication was conducted imbued the industry with a new sense objectives of the PGDS and the MEDS over the previous year, representing of optimism, and is already capitalis- in terms of increasing growth, provid- an important injection of resources ing on significant opportunities par- ing company support and improving into our provincial economy. With re- ticularly focused around the auto and the competitiveness of the Western gard to infrastructure development, packaging sectors. Cape economy. the Saldanha Fabrication Facility was The boat-building initiative has The Economic Sector Develop- launched. It represents an initial con- played an important role in ment Programme has begun to imple- struction cost of more than R150 mil- facilitating the accessing of industrial ment the MEDS through the lion. This facility has already received land in Atlantis, a highly successful formulation of the various sector considerable interest from interna- boat show in Florida resulting in R50 strategies which are guided by com- tional clients with potential mega- million worth of new orders, and 25 prehensive and extensive MEDS re- projects in the pipeline. The major PDI students graduating from the search, and the implementation of concern is now ensuring that boat-building school. specific programmes and projects sufficient skills are available and work Steady progress was made in the arising from the sector strategies. on a comprehensive implementation clothing and textile sectors, with the The sector bodies, which are part- strategy to achieve this is underway. Cape Clothing and Textile Cluster nerships the government has forged The newly formed Cape Town driving an aggressive programme to with relevant industries, have been the Fashion Council was launched at the attract new members and deepening main vehicles through which the De- Design Indaba early in the new year. and strengthening the programme. An partment has actioned its projects and The council has been well received by exciting breakthrough was made with sector programmes. Considerable ef- key stakeholders in the fashion indus- the retailing sector during the year, fort has been expended during 2006/ try. This is the first fashion council in which has already led to better coor-

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Part 2: Programme Performance Programme 4: Economic Sector Development

dination throughout the entire cloth- making landscape, and distilled a set than 500 people through its NQF 2, ing and textile value chain and a of strategies, interventions and poli- 4 and 5 learnerships and winter heightened emphasis on the need for cies to grow, integrate and transform schools during 2006/2007. These our firms to adopt world class manu- audiences in the region. As a result, training programmes focus on facturing methods. initiatives such as film festivals have business skills and enhanced produc- Deepening research and strength- been supported. The CFC has also tion design and drawing skills. ening of programmes for growth in concluded an industry impact assess- Through forging relationships with the creative industries by focusing ment, which complements the MEDS the visual arts industry and the on nuanced sub-sector support and and finds that the film industry con- performing arts industryindustry, two new initiatives have led to a clear picture tributes R2.6 billion to the provincial sector bodies for the province have as to the potential value and coffers annually. emerged through the Western Cape economic impact of the industries for The Cape Craft and Design Chapter of the Visual Arts Network of the Western Cape. The creative Institute has increased its income- South Africa (VANSA) and the Western industries can clearly play a dominant generating streams for the year and, Cape Chapter of the Performing Arts role in addressing the key drive to using R2.7million from provincial Network of South Africa. Both these support the informal industry. As an government as leverage, secured an entities have developed their very first industry, it has one of the highest additional R6.4 million for its craft strategic and programmatic plans of propensities to absorb labour within programmes in the province. Current- action for implementation in 2007/ poverty-stricken communities. ly there are more than 850 craft en- 2008. Therefore, the PGDS has placed high terprises associated with CCDI, In supporting the provincial De- emphasis on the Creative Cape and representing about 5 000 crafters. partment of Cultural Affairs and Sport, the premier reinforced the elevation Just over a year ago, the Cape Craft a musicians association has been of the Creative Cape in his February and Design Institute was honoured established to address the needs of 2007 State of the Province Address. with a silver Impumelelo Award for its musicians within the Western Cape. Consequently, and in line with pioneering work in the craft sector, in The association has delivered its first additional evidence within the MEDS, terms of training programmes, craft strategic plan to grow its industry. A the creative industries is now a marketing programmes, niche market consultative process with the rest of priority sector, along with tourism, development, mentorship, matching the value-chain has been initiated to ICT, BPO and oil and gas. retailer-to-crafter and craft exhibi- bring in other stakeholders to harness Within the creative industries tions. The award recognises innova- effort and determine opportunities for there are several industries which are tion in any field of work. In the growth. actively supported as described below. second quarter of 2006/2007, and In promoting the industry, support The film industry has ended off with provincial support, South Africa’s was given to the Cape Africa Platform, the year by announcing a bumper sea- third Fablab was established within which delivered an innovative and son. There has been an increase in the CCDI. The Fablab is part of the successful Visual Arts Biennale, a the number of foreign films shot in Centre for Innovation and it is a fab- showcase and marketing festival for Cape Town. Forty-one films generat- rication laboratory to encourage the the visual arts sector in the province, ed R500 million directly for the indus- application of design principles despite the fact that the national lot- try, an increase from thirty films in around functionality, production effi- tery monies had not been timeously 2005/2006. In addition, to support ciency and innovation, and to deepen forthcoming as initially promised. the development of an indigenous film design integration in the craft sector. In addition, two pilot programmes industry, research was conducted It is the only Fablab in the world as part of the creative streets initiative through the Cape Film Commission which focuses on craft and it allows were initiated in the neighborhoods of (CFC) into audience development, a digital manufacturing processes to be Manenberg and Nyanga. The aim of vital component of the film value- accessible to crafters. It attracts over the creative streets initiative is to de- chain. The research looked at the dy- 180 crafters, designers and students velop creative industry nodes or clus- namics, trends and issues that affect monthly. With respect to skills ters in local communities, which each segment of the media and film development, CCDI has put more would showcase creative industry of-

66 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

ferings and products and develop unions and various government De- positive success stories of local small businesses in the creative indus- partments in the aquaculture industry, SME’s forging ahead with internation- tries at a local level. A further aim is and has laid the foundations for the al contracts for locally developed to develop sustainable local markets formulation of an aquaculture policy products and services demonstrates for local products and thereafter de- and strategy. Using the Provincial De- that focused enterprise development velop sustainable tourism products to velopment Council as a platform, the programmes and continuous partici- create opportunities for local commu- consultative process has generated pation within the Cape IT Initiative nities. interest and support from the various (CITI) cluster activities are necessary There are significant challenges national Departments. facilitators in assisting local SME’s within some of the sectors which fall Given the diversity of the Agri- with the business support they need to within the resource-based indus- processing sector, considerable contribute to short and long term sus- triestries. These industries are mainly the efforts have been made to engage tainability, and ultimately, job creation fishing and aquaculture industries. with various stakeholders in the prov- and growth. Of particular mention is While the mandate for the fishing in- ince and three sub-sectors which have one company experiencing a nine fold dustry falls with the national Depart- the potential to grow and develop, increase in software development ment of Environmental Affairs and have initially been identified. These over a twelve-month period, because Tourism, the province, through the sub-sectors are ostrich, honeybush of providing software development PDC has embarked upon a proactive and rooibos. Consultative relation- outsourcing services to the European process with all the stakeholders to ships with these industries have been market. Another local company grew address the challenge of sustainable established, and programmes for im- its staff complement from two employ- livelihoods within communities previ- plementation in 2007/2008 are be- ees to over fifty employees since ously dependant upon the sea. The ing developed. starting out in the Bandwidth Barn PDC hosted a successful workshop Interventions into the services four years ago, and has attracted a for stakeholders to comment on sectorsector, and more specifically the in- R25 million venture capital investment MCM’s draft fishing policies for sub- formation and communication tech- to allow for further expansion into the sistence and small scale commercial nology (ICT) sector, has seen UK and US markets. fishing rights. Based on the inputs intensification in the work the SPV In terms of business development, from the workshop, the resource- does, with a concurrent strategic focus CITI continues with its highly success- based industries unit, in consultation and alignment of its plans with the ful business support models, tailor- with the Technical Task Team on Fish- MEDS strategy for the ICT industry. made to the business needs of ing and Aquaculture, chaired and co- Three key inter-related objectives are emerging and growing ICT SME’s. ordinated by the Department of the being pursued, namely growing, mar- More than fifteen high growth poten- Premier, developed an alternative pol- keting and transforming the ICT in- tial entrepreneurs completed the vol- icy based on the CREAD-TURF system. dustry. untary mentorship programme and a A submission to this effect was pre- Transformation is by far the new- further fifteen started up companies sented to the Minister of Environmen- est objective and its emphasis was on the highly intensive Velociti pro- tal Affairs and Tourism, Mr Martinus centred on increasing awareness and gramme. A further testimony to the van Schalkwyk. exposure for largely previously disad- value and contribution of the SPV The resource-based industries vantaged focus groups in the ICT in- within the ICT industry is the amount unit, the Technical Task Team on Fish- dustry, including women and the of corporate sponsorship attracted by ing and Aquaculture, the provincial youth. the various projects of the SPV, which Development Council and the Aquac- The marketing programme saw the include established firms such as Mi- ulture Institute of South Africa are cur- launch of the Think Global campaign crosoft and Storm Telecom. rently in the process of developing a focusing on international markets, The business processing outsourc- provincial aquaculture policy and while domestic marketing initiatives ing (BPO) sector has continued to ex- strategy. A successful workshop was which have increasingly taken on a perience rapid growth in the Western held to get inputs from civil society, sectoral focus, continue to keep the Cape, with the number of agents industry, both corporate and SME, the ICT industry networked. Extremely increasing by 41% in the last year

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to 15 899, and the overall industry component of the BPO strategy, Call- centre. This dedicated job centre cre- employment at 22 156, a 30% growth ingtheCape has played a major advo- ated a precedent for BPO-specific per annum. The employment growth cacy role within government to ensure training infrastructure within South Af- rate has been maintained for the past that BEE and SME companies are ben- rica. Based on experience with the three years, with the expectation that eficiaries of government procurement. highly successful CADET programme, in the next twelve months the industry Their work resulted in a specific it is anticipated that 80% of the 900 will continue to grow by a further PGWC tender being issued for call previously unemployed, largely African 37%. The BPO industry is now worth centre work- Cape Gateway Govern- learners to be trained through the cen- in the region of R2.5 billion to R3.3 ment Call Centre (in February 2007), tre, will find employment, and that billion per annum to the Western making particular provision for BEE their average starting salary will be Cape economy, or 2.4% of gross do- and SME companies. Callingthe- in the order of R4 000 per month. mestic product for the region. Call- Cape’s role in supporting SMEs was With regard to the Strategic Sec- ingtheCape has directly facilitated also recognized in a recent Imphume- tor Support sub-programme, human over thirty new investment deals from lo Award for best emerging empower- capacity continued to be a major chal- major domestic and international ment organization within government. lenge. Nevertheless, progress had companies into Cape Town’s business Skills development has been a ma- been made, and continued strategic process outsourcing and offshore jor thrust for the Department’s call input was given to the provincial skills (BPO&O) industry. Investors include centre plan to ensure that it grows the task team, resulting in the allocation Barclays, Shell, Carphone market and maximize employment op- of R12 million from the National Skills Warehouse, Budget Insurance, portunities for the region’s youth. As Fund towards the MEDS sectors. Lufthansa, Dialogue Group, and such, the organization directly facili- 2006/2007 also saw the finalisation Close Brothers. In total, the investors tated the completion of one hundred of several research documents which that CallingtheCape has directly learnerships with a 90% completion will serve as the platform for 2007/ facilitated have invested over R500 rate and an employment rate of over 2008 interventions and help refine million in the province. 75%, a success rate considered well and shape the Department’s Work- As a result of and through the ac- above the national norm. As a result, force Development Strategy. tivities of CallingtheCape, Cape Town the national services SETA awarded R2 million has been contributed has attracted between 60% and 75% CTC with Stakeholder of the Year for towards funding the establishment of of all the BPO&O investment in South the sterling achievements in their call an Advanced Manufacturing Technolo- Africa as a whole over the last few centre-related training programme. gy Laboratory (AMTL). This laboratory years. 2 371 staff work exclusively on There is further testimony that for will serve as an innovation hub in sen- offshore programmes in Cape Town, 2007/2008, CTC will manage over sor technologies, new materials and an increase from less than one 700 new learnerships and 350 bursa- smart devices for the Western Cape hundred employees in 2003. This ries for various Seta’s, Department of priority and significant industry sectors accounts for more than 50% of the Labour and industry. such as oil and gas, information and total offshore employees in South The Department, together with communications technology, BPO, Africa. CallingtheCape, expended considera- tourism, clothing, creative industries Because providing assistance to ble effort in securing the old CRIC and the metals and engineering indus- SME and BEE companies is a crucial centre for use as a dedicated BPO job tries.

68 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Service delivery achievements

Sub-programme: Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Managing the devel- Ongoing support for A successfully gov- Ongoing support for Funding fully trans- Process underway to opment, performance the SA Oil and Gas erned SPV the SA Oil and Gas ferred; concerns potentially bring and funding of the Alliance, funding Alliance, funding regarding relation- together two bodies SPV and facilitating successfully trans- successfully trans- ship between ship under one organiza- relationships within ferred, and levels of ferred, and levels of repair and SAOGA tion the oil and gas indus- trust improved; en- trust improved, try suring the relation- ensuring the rela- ship between the tionship between the alliance and the Ship alliance and the Ship Repair Alliance is Repair Alliance is mutually supportive mutually supportive Supporting the Developing the plans Development of a Developing the plans Saldanha fabrication growth of the oil and and partnerships internationally recog- and partnerships facility successfully gas industry through necessary for the nised oil and gas necessary for the launched, and key developing a major oil Cape Town servicing servicing hub in Cape Cape Town servicing partnerships devel- and gas service hub in hub to be realized; Town and rig con- hub to be realized; oped regarding servic- Cape Town and construction of the struction facility in construction of the ing hub Saldanha, and ensur- Saldanha facility to Saldanha Saldanha facility to ing that key invest- begin begin ments into the sector are realized through Wesgro and SAOGA Managing the devel- Formalization of the A successfully gov- Formalization of the CSI formalized and opment, performance CSI, formal appoint- erned SPV CSI, formal appoint- CEO appointed and funding of the ment of board and ment of board and Ship repair SPV and CEO, attendance and CEO, attendance and facilitating relation- direction at regular direction at regular ships within the board meetings board meetings industry

Supporting the Carry out feasibility Construction and Carry out feasibility Feasibility study all growth in the indus- and economic impact establishment of the and economic impact completed, with key try through the studies, and ensuring ship repair facility studies, and ensuring stakeholders on board establishment of a that key players are that key players are major dedicated ship brought on board brought on board repair facility that will have close links to the oil and gas hub Managing the devel- Ensuring that corpo- A successfully gov- Ensuring that corpo- The WCTI has been opment, performance rate governance is erned SPV rate governance is launched and is fully and funding of the effective, and that effective, and that effective tooling SPV and facili- the body achieves the body achieves tating relationships recognition by all recognition by all within the industry stakeholders stakeholders

69 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 4: Economic Sector Development

Sub-programme: Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Provide ongoing Launching auto’s Establishment of Launching auto’s Auto benchmarking support to the foun- benchmarking club benchmarking clubs benchmarking club club successfully dry industry, automo- process process launched tive components Number of companies sector and fabricated signing up for the metals sector; fund clubs and manage benchmarking programmes through above sectors Managing the devel- Ensuring that corpo- A successfully gov- Ensuring that corpo- Acceptable level of opment, performance rate governance is erned SPV rate governance is corporate governance and funding of the effective, and that effective, and that in place, the three clothing SPV’s and the bodies are ac- the bodies are ac- bodies recognised and facilitating relation- cepted and recognised cepted and recog- accepted ships within the by all stakeholders nised by all industry stakeholders Maximize the growth Develop a strategy for Number of high- Develop a strategy for Developed framework potential and trans- food processing priority food processing food processing strategy for food formation of the food sub-sectoral initiatives Implement action of 2 processing processing sectors Implement action of 2 sub-sectoral initiatives through the estab- sub-sectoral initiatives Implemented ostrich lishment of 6 high- Industry initiative and priority food processing honeybush industry sub-sectoral initiatives initiative Maximize the growth Fund intervention in No. of interventions Fund intervention in Furniture initiative in Agreed that electron- potential and transfor- each of the non- initiated in these each of the non- process, printing ics is not a priority for mation of the non- priority sectors sectors priority sectors training school project the Department priority sectors, includ- in process, no developing furniture, electron- ment in electronics ics and printing, though minor interventions To support WESGRO Consultation with Amount of invest- Consultation with Consultation with and other pro- relevant stakeholders ment recruited relevant stakeholders stakeholders led to grammes to promote to establish potential to establish potential decision that the IT the ICT industry investment sources investment sources sector body was better through investment and implementation and implementation placed to do proactive recruitment activities activities investment promotion; CITI board agreed in Assist, guide and Assist, guide and principle to play strate- record widespread local record widespread local gic role pending the and international and international outcomes of the in- sources for invest- sources for invest- dustry census and ex- ment, including ven- ment, including port strategy research ture capital sources venture capital sources Consulted stakeholders on issue of venture capital, and identified sources for venture capital

70 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Sub-programme: Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets To collaborate with Comprehensive infor- ICT export compre- Comprehensive Ongoing consultations WESGRO and other mation searches hensive approach information searches with SPV Board, programmes to de- regarding all aspects of compiled regarding all aspects Wesgro and other velop a comprehensive export abilities, capac- of export abilities, stakeholders have approach for the ity, and readiness capacity, and readi- resulted in the export of the ICT ness conceptualization, industry’s services and Ongoing consultation additional funding products and ICT with relevant stake- Ongoing consultation sourced, planning and outsourcing potential holders to collate with relevant implementation of export development stakeholders to collate industry census and research into export development export strategy devel- recommendable inter- research into opment, project is in ventions for action recommendable full swing currently interventions for with consistent action progress To develop a compre- Comprehensive stakeholders, etc. Comprehensive infor- Telecommunications hensive provincial information gathering Comprehensive ap- mation gathering infrastructure road approach regarding regarding infrastruc- proach regarding the regarding infrastruc- map research initiated the role of PGWC in ture enhancement PGWC’s role in infra- ture enhancement infrastructure en- initiatives as outlined structure enhance- initiatives as outlined hancement, within in the KMO, leading ment developed in the KMO, leading to the ICT industry to the development the development of of an implementation an implementation plan plan

Ongoing consultation Ongoing consultation Consultations held with relevant with relevant with stakeholders and stakeholders, includ- stakeholders, including provincial and City ing national national Department officials Department of of Science and Tech- Science and nology, provincial Technology, provincial government government Departments, tel- Departments, tel- ecommunication ecommunications providers, ICT specific providers, ICT specific stakeholders, etc. To develop a compre- Comprehensive infor- Skills development Comprehensive Comprehensive re- hensive approach in mation gathering and approach developed information gathering search through the terms of skills develop- collation regarding and collation regard- ICT Census was initi- ment in the ICT skills development in ing skills development ated to determine industry, which may ICT industry in ICT industry skills profile and needs include the funding of in ICT industry the learning initiatives Ongoing consultation Ongoing consultation Stakeholders engaged with relevant with relevant through census stakeholders stakeholders process

71 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 4: Economic Sector Development

Sub-programme: Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets To develop and pro- Consultation with Number of projects Consultation with Stakeholders con- mote the ICT industry relevant stakeholders successfully funded, relevant stakeholders sulted and pro- through enterprise launched and imple- grammes successfully development, includ- Obtain funding for mented Obtain funding for funded ing the funding and development of initia- development of direction of business tive, else postpone initiative, else post- Two SME-focused ICT development projects until next financial pone until next projects funded and year financial year implemented

Management of the Management of the initiatives and inter- initiatives and interventions ventions To develop a compre- Comprehensive Comprehensive Trans- Comprehensive Feedback report com- hensive approach in information gathering formation and BBBEE information gathering piled regarding consid- terms of the role of regarding skills devel- approach compiled regarding skills devel- erations for effecting the PGWC with regard opment in ICT indus- opment in ICT indus- transformation and to the transformation try try BBBEE within ICT and BBBEE within the industry ICT industry Consultation with Consultation with relevant stakeholders relevant stakeholders and management of and management of the collation of the the collation of the research into an research into an implementable ap- implementable approach proach Develop and grow the Expand support for Amount of invest- Expand support for CallingtheCape has BPO industry through CtC as the investment recruited and CtC as the invest- directly facilitated over investment recruitment and marketing jobs created ment and marketing 30 new investment ment and marketing agent agent deals (R500 million) from major domestic and international companies

41% increase in number of agents since 2005/6, to 15 899, with total industry employment at 22 156. To develop and grow Implementation and A reliable and safe 24/ Implementation and Discussions conducted Feedback from the the BPO industry management of an 7 public transport management of an with HEIs and PGWC BPO industry has through facilitating interim 24/7 (or system interim 24/7 (or with a view to estab- revealed that initia- an enabling infra- approximately close to approximately close lishing an interim tive is not required/ structure 24/7) transport meas- to 24/7) transport transport solution for ne-cessary; however, ure, e.g. Jammie measure, e.g. Jammie BPO should there be a Shuttle Shuttle change in circumstan-ces, the province will be ready to act

72 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Sub-programme: Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Develop and grow the Consultation with Number of initiatives Consultation with Feasibility study for BPO industry through relevant stakeholders which increase the relevant stakeholders the best practice facilitating competi- regarding feasibility of industry’s competi- regarding feasibility of feasibility finalised and tiveness improve- initiatives tiveness, including: initiatives strategy developed ments If feasible and sup- (i) Establishing best If feasible and sup- Intensive inputs and ported by stakeholders practice showcase ported by discussions held at and industry, facilitate centre, stakeholders and national level re proposal and plan for industry, facilitate telecommunications initiatives (ii) Developing new proposal and plan for and BPO incentive technologies initia- initiatives programme Secure funding for tives, initiatives Secure funding for (iii) Reducing telecom- initiatives munications pricing & improving quality Develop and promote Secure funding for Number of establish- Secure funding for 100 learners at NQF 2 BPO industry through initiative ment of initiatives, initiative trained, over 75% skills development which improve skills have been employed Establish the training development Establish the training centre centre Significant learnership funding for more than 650 new learnership opportunities secured from various public and private funders

Training centre project business plan finalised and funding and site identified, but procedures to secure the site through DPWT has delayed launch of CRIC-based centre; however, training centre currently run with North Link Col- lege at temporary site Develop and grow the Expand support for Number of interna- Expand support for 41 investments film industry through CFC as the invest- tional film shoots and CFC as the invest- facilitated marketing the indus- ment and marketing events hosted in ment and marketing try internationally and agent Cape Town agent R50 000 000 value of through recruiting investment recruited investment into the Consultation with Number of local films Consultation with industry relevant stakeholders funded relevant stakeholders 4 122 people attended regarding feasibility regarding feasibility film industry events and impact of initia- and impact of initia- hosted tives tives

73 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 4: Economic Sector Development

Sub-programme: Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets If feasible and sup- If feasible and sup- Completed trade ported by stake- ported by missions to Hong holders and industry, stakeholders and Kong, India and facilitate proposal and industry, facilitate Germany plan for each initia- proposal and plan for tive each initiative 223 BEE firms assisted

Secure funding and Secure funding and 350 film creatives resources for each resources for each trained initiative initiative Implement pro- 4 new businesses Implement programme established gramme Facilitate the develop- Consultation with The establishment of Consultation with 652 SMEs assisted ment and growth of relevant stakeholders initiatives, which relevant stakeholders the film industry regarding feasibility improve the competi- regarding feasibility 712 direct jobs created through facilitating and impact of initia- tiveness of the indus- and impact of initia- the competitiveness tives try tives 501 indirect jobs of the industry created If feasible and sup- If feasible and supported by stakeholders ported by stakeholders Competitiveness and industry, facilitate and industry, facilitate analysis for audience proposal and plan for proposal and plan for development and for each initiative each initiative skills development completed Secure funding and Secure funding and resources for each resources for each Domestic audience initiative initiative development initiative implemented through Implement pro- Implement pro- 3 film screening gramme gramme events held in local communities; Outreach programmes in rural areas

Conducted and pub- licly launched the findings of an economic impact assessment study Facilitate the develop- Consultation with Number of initiatives Consultation with Three event initiatives ment and growth of relevant stakeholders which lead to in- relevant stakeholders linked to SME develop- the creative industry regarding feasibility creased investment regarding feasibility ment and marketing, through investment and impact of initia- and exports of the and impact of initia- executed: Design recruitment and tives industry tives Indaba, Cape Biennale marketing Exhibition and If feasible and sup- If feasible and sup- Goemerati programme ported by stakeholders ported by stakeholders and industry, facilitate and industry, facilitate proposal and plan for proposal and plan for each initiative each initiative

74 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Sub-programme: Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Secure funding and Secure funding and resources for each resources for each initiative initiative

Implement pro- Implement programmes, if relevant grammes, if relevant Facilitate the develop- Conduct feasibility Increase audience Conduct feasibility Pilot project initiated ment and growth of study on infrastructure in PDI study on in two Neighbour- the creative industry sustainability of areas sustainability of hoods: through infrastruc- infrastructure infrastructure Manenberg and ture enhancement Implementation of Nyanga pilot projects Implementation of pilot projects Facilitate the develop- Consultation with Number of initiatives Consultation with Through intensive ment and growth of relevant stakeholders facilitated, developed relevant stakeholders consultation, facili- creative industries regarding feasibility and supported regarding feasibility tated the creation of through improving and impact of initia- and impact of initia- two new sector bodies strategic competitive- tives tives for performing arts ness and visual arts; sup- If feasible and sup- If feasible and supported the initiative of ported by stakeholders ported by DCAS in establishing a and industry, facilitate stakeholders and music association to proposal and plan for industry, facilitate cater for the needs of each initiative proposal and plan for musicians in the each initiative music industry Facilitate the develop- Secure funding and Number of training Secure funding and Training and development and growth of resources for each programmes develop resources for each ment programmes creative industry initiative and facilitated initiative executed through through skills devel- complementary mar- opment Implement pro- Implement pro- keting programmes, grammes, if relevant grammes, if relevant e.g. multi-mediations skills programme for the visual arts participate in Transcape Biennale as final part of their skills development programme Facilitate the develop- Expand support for Number of WC com- Expand support for 766 crafter stake- ment and growth of CCDI as the invest- panies assisted CCDI as the invest- holders involved in the craft industry ment and marketing ment and marketing capacity-building through investment agent, including Number of export agent, including initiatives to maximize recruitment and promoting orders promoting marketing opportuni- marketing outsourcing to the outsourcing to the ties and capacity Western Cape Western Cape building including events strategies and product development case studies

44 crafters involved with some major events in WC

75 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 4: Economic Sector Development

Sub-programme: Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Develop and promote Consultation with Develop and facilita- Consultation with A winter school pro- the craft industry relevant stakeholders tion of training relevant stakeholders gramme was facilitated through skills develop- regarding feasibility programs including: regarding feasibility for 100 learners ment and impact of initia- and impact of initiatives Implementation of tives The NQF2 learnership training programs in programme was com- If feasible and sup- particular for youth, If feasible and sup- pleted with 20 learners ported by retrenched, etc. ported by stakeholders and stakeholders and A mentoring pro- industry, facilitate industry, facilitate gramme was started proposal and plan for proposal and plan for with 15 crafters each initiative each initiative 13 learners participated Secure funding and Secure funding and in a product develop- resources for each resources for each ment and training initiative initiative workshop

Implement pro- Implement pro- The Craft Operations grammes, if relevant grammes, if relevant and Management learnership (NQF5) was started with 15 crafters in February 2007

The counselling clinic assisted 18 crafters since the inception Facilitate the develop- Enhance competitive- Craft Design and ment and growth of ness of industry Innovation Centre the craft industry through facilitating, was launched, along through improving developing and sup- with initiatives to strategic competitive- porting initiatives promote usage ness such as: -A rural outreach research was con- (i). Establishment of ducted for the imple- Craft Precinct and a mentation of the craft Centre for Innovation, mobile initiative and tourism related link- (ii). Implementation of ages mentorship and The report for the raw export program, materials bank was completed (iii). Facilitate and Counselling and support the establish- mentoring sessions ment of a centre of were held with 48 innovation crafters at the product development clinic

76 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Sub-programme: Strategic Sector Support Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets To facilitate the 3 workshops to estab- The number of sci- 3 workshops to estab- 3 workshops held establishment of the lish an innovation ence, technology and lish an innovation around the Advanced Western Cape Inno- fraternity other partners locally fraternity Manufacturing Labo- vation Initiative and internationally in ratory (AMTL) (WCII) the network of the innovation fraternity

The number of innovation policies developed for the Western Cape economy Through the WCII, Number of implemen- Through the Formulation of policy start the process of tation strategies WCII, start the proc- framework for two developing innovation developed across ess of developing sectors, including BPO policies for two broad sectors innovation policies for sectors two broad sectors Intervention for craft implemented Start the implemen- Start the implementa- tation of innovation tion of innovation interventions accord- interventions according to the MEDS for ing to the MEDS for selected sectors selected sectors To facilitate the devel- 3 workshops to estab- The number of sci- 3 workshops to estab- In addition to 3 opment of a Provincial lish buy-in and the ence and technology lish buy-in and the workshops around Innovation System process towards a PIS bodies across sectors process towards a PIS AMTL, workshops were (PIS) through the involved in the initia- held with the oil and WCII tive gas and ship repair industries, academia and government and another was held by DST in Pretoria

The establishment of the Institute for Advanced Tooling, and the involvement of the cooperation agreement between Finland and South Africa (COFISA) on the development of innovation systems are major and significant developments towards the development of the PIS Facilitate the intro- Assist 20 tooling Funding the IAT to Assist 20 tooling A significant tooling ducing of R&D and companies through supply services to the companies through cluster of BEE compa- innovation services in the IAT tooling sector the IAT nies has been formed the tooling sector with the assistance of the IAT; despite their

77 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 4: Economic Sector Development

Sub-programme: Strategic Sector Support Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets equipment arriving late in November 2006, the IAT has assisted the equiva- lent of 14 companies To facilitate the To determine how Number of sector To determine how The sector strategies development of an many sectors will strategies developed many sectors will framework has been implementation have an implementa- have an implementa- conceptualized and strategy for the tion plan with costs tion plan with costs two sector pro- Provincial Advanced grammes developed Manufacturing Tech- To establish a budget To establish a budget and implemented nology Strategy and then commission and then commission (PAMTS). the development of the development of the strategy the strategy Through the WCII and 2 workshops with The development of a 2 workshops with The process has been the Western Cape relevant national and comprehensive policy relevant national and initiated through the Beneficiation Initiative international stake- to develop the international stake- reviewing of the (WCBI), establish holders to start the biodiversity sector holders to start the resource-based strat- policies for the sus- process of developing process of developing egy tainable development policy policy of biodiversity industries, e.g. Agrifibres Through the WCII and 2 workshops with The development of a 2 workshops with The process has been the WCBI, establish relevant national and comprehensive policy relevant national and initiated through the policies for the devel- international to the environmental international reviewing of the opment of Indigenous stakeholders to start economy stakeholders to start resource-based strat- Knowledge Systems the process of devel- the process of devel- egy (IKS) and the integra- oping policy oping policy tion of IKS into the economy Through the WCII, Establishment of a The number and Establishment of a Networks developed facilitate the develop- network for at least depths of networks network for at least around the new ment of an R&D one of the activities established one of the activities materials and smart network and various mentioned mentioned devices technologies hi-tech and knowledge intensive activities, e.g. new materials, technology, in- strumentation, auto- mation, calibration and biotechnology Perform research and 1 project developed Number of proposals 1 project developed Held workshop with oil identify key cross- taken forward into and gas and ship cutting issues impact- defined projects, with repair representatives ing on competitiveness timelines, deliverables to determine research and staffing. (Produc- needs to develop and tivity Benchmarking implement strategies Programme) for these industries

78 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Sub-programme: Strategic Sector Support Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Provide the appropri- 4 sectors scoped Number of sectors 4 sectors scoped. 4 sectors have been ate human resource analysed analysed – oil and profiles in support of gas, BPO, tourism, and job targets set and film projected by sectors Increase sector and Training initiated in Number of training Training initiated in Developed programme skill specific training one skill area provided per sector one skill area for welders in the ship such as, toolmakers, repair industry fabricators, clothing sector technicians, Secured funding from marine-focused engi- NSF to provide for a neers substantial skills programme Increase demand-led Implement strategy Number of training of Implement strategy Programme for call workplace learning in with one industry currently employed with one industry and centre middle man- line with work re- and provider in agreed provider in agreed on agement with support organization, technol- on skill area skill area from a HEI developed ogy changes and work opportunities Comprehensive plan for rollout/expansion underway Increase employability Participate and inform Number of pro- Participate and inform Consultations with through increased PGWC-HE summit; grammes available, PGWC-HE summit; SETA led to undertak- participation in HE PGWC-SETA summit; student uptake and PGWC-SETA summit; ing research into and FET programmes and FET colleges employment and FET college’s optimal platform for aligned to MEDS summit summit the SETA-PGWC sectors - anticipated relationship; this will and unanticipated frame consultations, needs within and summit and agree- across sectors, equity, ment between SETAs technology transfer and province and innovation Successful CHEC summit held, cooperative projects have been tabled for joint implementation Workforce develop- Establish one centre, Number of centres Establish one centre, Case study on small ment to improve Calling the Cape established Calling the Cape firms, MIST and maths competitiveness clubs research con- through education, ducted training and skills supply Training centre for call centre established with North Link College

Feasibility for learning hub in film commenced

79 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 4: Economic Sector Development

Sub-programme: Strategic Sector Support Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Communicate MEDS Identify, customise Design and imple- Identify, customise From scoped skills and economic sector and align communica- ment a communica- and align communica- sector studied, devel- skill requirements tion tion strategy of tion oped database as supply of E&T with communication and demand side oppor- planning tool for skills tunities development stakeholders

Engaged stakeholders in MEDS demand-side analysis To improve enterprise Apply as a pilot in one Number of enterprises Apply as a pilot in one Development and competitiveness by sector, BPO industry that have developed sector, BPO industry implementation of developing and and potentially with and adopted HIV/Aids and potentially with HIV/AIDS workplace implementing HIV/ tourism and fishing policies and pro- tourism and fishing policies completed in Aids prevention and sectors; methodology grammes sectors; methodology three companies awareness pro- will then be applied in will then be applied in grammes the other sectors the other sectors Peer Educator Training in three companies completed

Counselling skills training completed in three companies

Monitoring and evaluation of the development and implementation of HIV/Aids programmes in three companies completed To facilitate and Identify, recruit and Amount of invest- Identify, recruit and An aquaculture policy promote the fishing shape investment ment recruitment and shape investment is being developed, and aquaculture opportunities incomes created opportunities which will identify the industry through type the investment investment opportu- Conduct widespread Conduct widespread opportunities and nities local and international local and international create enabling envi- searches for invest- searches for invest- ronment for investment ment ment

Visits to local investors conducted, and planned international mission Facilitate the im- Consultation with Number of facilitation Consultation with Developed a project to provement of urban relevant stakeholders sessions relevant stakeholders support the economic infrastructure of for improved urban for improved urban development of rural fishing villages infrastructure of infrastructure of fishing villages and fishing villages fishing villages towns as recommended by the MEDS

80 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Sub-programme: Strategic Sector Support Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Implementation of Establishment of Implementation of Fishing forum estab- improvement and fishing forums in improvement and lished within PDC with upgrading fishing villages upgrading development of policies to improve and upgrade access for communities; roll-out of 1 pilot project in 2007/2008 Initiate and support Consultation with Completed strategy Consultation with Extensive consultation intensive research and relevant stakeholders relevant stakeholders with stakeholders, development regarding unexplored regarding unexplored including workshops, resources, resources, and developed frame- In fishing and beneficiation of exist- beneficiation of work for policy and aquaculture ing and new re- existing and new strategy sources, develop resources, develop Initiated research on Development of a sustainable and best sustainable and best downstream industries fishing and practice aquaculture practice aquaculture arising from fishing/ aquaculture strategy and strengthening and strengthening aqua-culture with consultation to the fishing and tour- the fishing and stakeholders ism industries tourism industries Engage relevant Engage relevant Stakeholders have stakeholders to em- stakeholders to em- been engaged and bark on an interna- bark on an interna- best practice research tional research pro- tional research pro- programme initiated gramme in support of gramme in support of a credible fishing and a credible fishing and aquaculture strategy aquaculture strategy Identify, design, facili- Consultation with Number of projects Consultation with In agriculture seven tate programmes and relevant stakeholders undertaken and relevant stakeholders women have been project interventions persons trained in trained and are run- for re-skilling and skills entrepreneurial skills ning a successful development in fish- development hydroponics enterprise ing, aquaculture and agriculture A skills development study in aquaculture initiated Support the develop- Support the develop- In agriculture seven ment of a skills devel- ment of a skills devel- women have been opment programme in opment programme in trained and are run- farming, beneficiation farming, beneficiation ning a successful and export and export hydroponics enterprise

A skills development study in aquaculture initiated Identify, rank, and Identify, rank, and Public and social sector engage public and engage public and partners have been social sector partners social sector partners identified and con- involved in skills involved in skills sulted in three sub- development, pro- development, pro- sectors of agribusiness grammes with regard grammes with regard and aquaculture to agribusiness and to agribusiness and aquaculture aquaculture

81 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 2: Programme Performance Programme 5: Tourism

Purpose The purpose of Programme 5: Tourism is to ensure strategic planning and good governance for tourism in order to ensure geographic and demographic spread of benefits associated with the industry. Measurable objectives The Tourism Programme is primarily responsible for ensuring that benefits received from tourism activities are spread in a beneficial manner to all who call the province home. To give effect to this objective, the Tourism Programme has been divided into three key sub-programmes, namely Tourism Industry Develop- Tourism in springtime: Rod Douglas & ment, Tourism Strategic Implementation and the Destination Marketing Organi- Labeeqah Schuurman (Tourism Chief sation. Directorate), MEC Lynne Brown, Eliza- beth Walters, Sheraaz Ismail, Noxolo Nationally, South Africa is experiencing growth similar to the global growth Ntenentya & Yumnaa Firfirey (Tourism trend. South Africa recorded a 10.3% increase in international arrivals from 6.7 Chief Directorate) are celebrating the million in 2004 to 7.4 million in 2005. There was a 23.5% increase in Total launch of Tourism Month in Paternoster. Foreign Direct Spend (TDFS) from R43.2b in 2004 to R53.4b in 2005. The MEDS (provincial Micro-economic Development Strategy] Synthesis Re- port July 2006, confirms that the Western Cape is often viewed as South Africa’s SEPTEMBER: most developed tourism region, with the contribution of travel and tourism to Tourism Month – the provincial economy close to 10% in value added (Gross Regional Product) Tourism Enriches and in employment (compared to about 7.4 % for South Africa as a whole). Both ASGISA and the MEDS have identified tourism as a key priority sector for World Tourism Day is celebrated accelerated growth and BBBEE. annually on 27 September Trends show that Cape Town and the Western Cape are on the road to beat throughout the world. The launch the global growth rate in international arrivals. South Africa attained 8.4 million of Tourism Month 2006 was held on 01 September 2006 at international arrivals in 2006 achieving double digit (14%) growth rate, over Paternoster, and the wild flower twice the global rate of 4.5%. There has been even greater growth in the tradi- map was unveiled during this tionally low months between April and September. The Western Cape achieved occasion, showing a true partnership between the 9.3% growth in international arrivals between April and September 2006 com- Western and Northern Cape. pared to the same period in 2005, and the growth trend is expected to continue. For 2005, the Western Cape received 1.6 million international visitors and 3 Tourism Month was initiated to foster awareness of the positive million domestic visitors. The Western Cape recorded a R14.9 billion foreign impact of tourism on all walks spend and a R1.9 million domestic spend (total: R16.8 billion). of life. It encourages residents In the 1st quarter of 2006/2007, the Tourism Programme conducted a com- and businesses of the Western Cape to become involved and to prehensive exercise to determine what a world-class South African provincial join the authorities and tourism government tourism Department should be doing from the perspective of all the organisations in growing and social partners and consumers to have the “genuine impact” on the trajectory of transforming tourism. the sector envisaged by the Micro-economic Development Strategy (MEDS). The The Western Cape is often outcome of this exercise resulted in a comprehensive set of functions detailing viewed as South Africa’s most the territory that must be covered to successfully intervene in the tourism sector. developed tourism region with an annual contribution of 10% to The reorganisation exercise concluded that all our interventions would be facili- the provincial GRP. Tourism has tated through the mechanisms of the Western Cape Tourism Development grown steadily over the past Framework and the Western Cape Tourism Development Partnership. decade and now includes an amazing range of well-developed The development of the Western Cape Tourism Development Frame- tourism and leisure market work (WCTD Framework) has been initiated and it is intended to be the transla- segments, contributing to the tion of all the general and tourism industry-specific national and provincial accelerated and shared growth initiative of South Africa mandates and all the recommendations which emerge from the Western Cape’s (ASGISA). Micro-economic Development Strategy into a detailed Master Plan to grow and

82 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

transform the Tourism Industry in the and launched at the 2006 Access Des- workshop was held. The outcome of Western Cape over the next ten years tination Workshop held in the 3 rd quar- the workshop was an updated and for the benefit of all citizens. The ter of the fiscal year. Cape 365 deals jointly agreed upon draft WCTD WCTD Framework is the tourism desti- with the challenges of reducing the im- Framework. The draft WCTD Frame- nation strategy for the Province which pact of seasonality on the destination. work will be fully consulted with all will set targets and define outcomes Tourism Enterprise Development ex- the delegations of the WCTD Partner- that need to be achieved over a ten- panded its already successful pro- ship and all relevant inputs will be year time frame. The WCTD Frame- gramme to accommodate additional consolidated. work is the strategy for tourism which entrepreneurs through the Tourism In terms of the ITDF we have con- was firstly informed by the outcomes Tiered Support System. The BEE Char- solidated the Tourism Gateways (the of the MEDS and will continue to be ter and the Scorecard strategy were Eastern Gateway will be up and run- the tourism strategy as part of the De- launched at the Cape Tourism Show- ning by end 2007), finalised the Cape partmental MEDS process. case. Flats Tourism Initiative (upgrading the The development of the Western District Six sports exhibition in line Cape Tourism Development Part- Service delivery objectives with 2010) and provided facility nership (WCTD Partnership) has and indicators equipment to the False Bay Ecology been initiated. The WCTD Partnership The Western Cape Tourism De- Park (FBEP) as part of the development which will be made up of delegations velopment Partnership held its of the False Bay Coastline. from Government, Labour, Civil Socie- launch in the 4th quarter of the fiscal As a start to for the development ty and Business; and Education. The year. The launch was the first engage- of the False Bay Coastline the Tour- WCTD Partnership will act collectively ment with all relevant stakeholders ism Programme provided the follow- to develop policies, strategies and in- that make up the WCTD Partnership. ing for the Southern Birding Area of terventions for tourism (in the form of Discussions were centred on the insti- the False Bay Ecology Park (FBEP): 5 x the WCTD Framework); and will en- tutional arrangements of the WCTD Classical Benches, 16 x Bollards (to sure that the partners act in an aligned Partnership and the inputs to the be used as seating), and 4 x Tables; manner to achieve cost-effective use WCTD Framework. and for the Eastern Shore of Zeekoev- of our collective resources. The ministerial priorities for lei of the FBEP: 80 x Bollards (to be During 2006/2007, the Tourism 2006/2007 identified as its highest used as seats), 20 x Tables and 20 x Programme continued its support for priority the establishment of a Public Warwick Planters (to be used as braai plans and programmes that were Sector Forum consisting of public places). They are grouped together as aligned to the identified Tourism De- sector bodies, namely the provincial a picnic/ braai unit. This is in partner- velopment Areas in the ITDF (Integrat- government Department, Cape Town ship with the City of Cape Town. We ed Tourism Development Framework). Routes Unlimited, the City of Cape have also participated in the following The ITDF review process, which in- Town, the five District Municipalities, major Tourism Route development: cludes a drill down investigation into the Regional Tourism Organisations Cape Namibia Tourism Route; The the sites, attractions, routes and infra- (RTOs) and the Local Tourism Organi- Whale & Tip of Africa Route in the structure for the City and each of the sations (LTOs), as well as national rep- Overberg region launched at Indaba District Municipality will be conducted resentation from DEAT, SA Tourism and 2007; and the 3 x Wine Routes as in 2007/2008. the dtidti. The aim of the Public Sector part of the West Coast tourism The geographic expansion of the Forum is to drive a common agenda development programme. Tourism Safety and Support pro- for tourism in the Western Cape, by The Access Destination Work- gramme resulted in the addition of two ensuring joint planning, budgeting and shop (ADW)(ADW), which is a joint part- regional and two local representa- implementation in the public sector. nership between the Department, tives. The reactive component, namely During the 4th quarter, the Tourism Cape Town Routes Unlimited and the Tourism Victim Support Pro- Programme arranged a coordinated ACSA, was held in the 3rd quarter of gramme, responded to twenty-two in- meeting with the Public Sector Forum the fiscal year. The theme for the cidents in 2006/2007. An initiative (the Government delegation of the workshop, identified in the context of called Cape 365 was also developed WCTD Partnership), whereby a 2-day the 2010 World Cup, was “Access for

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Growth”. Success in reaching our 2010 goals will among other factors, hugely depend on how accessible Cape Town and the Western Cape is as a destination – in terms of seasonality, air and road access, visa friendliness, a welcoming culture and pricing. The ADW Workshop has been held for the past 4 years and has set a precedence with large attendance from the country as a whole. The Cape 365 initiative, which was launched at the Access Destination Workshop, is one of the major thrusts to reduce the impact of the low season. Cape 365 is a specialised initiative that seeks to most importantly crowd in funds from all partners (mainly the private sector) in order to ensure an aligned approach in combining resources to address the impact of seasonality. In 2006, the Department conducted a Global Best Practice Study which included an in- depth market examination of 3 leading 365 destinations, being Melbourne, Ire- land and Dubai, to establish critical issues, opportunities and learnings. The Western Cape recommendations arising from the study will be implemented via the Tourism Premiers Service Growth sub-committee which will be established in the WCTD Partnership. Excellence Awards The Tourism Programme has been actively involved in training and development for Development initiatives for the 2005/2006 and 2006/2007 fiscal years. In the 2005/2006 financial year an amount of R2 204 000 was spent and 1 381 people benefited from and Tourism the training. In the 2006/2007 financial year and amount of R3 645 648 was spent and 2 518 people benefited from the training and development initiatives. Within the Tourism Industry Development sub-programme and more specifically, Tourism Skills DevelopmentDevelopment, most of the projects were suspended pending the restructuring of the Tourism Chief Directorate and the establishment of the WCTD Partnership’s HRD sub-committee, which will be implemented in 2007/2008. However, the unit continued funding tourism bursary programmes of whom the beneficiaries are students studying in the fields of tourism management, professional cookery, public relations and food and beverage management. Finan- Yumnaa Firfirey (DD: Tourism Enterprise Development) and her team, from the cial support was given to the Cape Peninsula University of Technology, whereby left: Hantie Nelson, Ramese Mathews, 15 historically disadvantaged students were selected according to academic po- Inshaaf Solomon (Service Provider to tential and a need for financial assistance, with full-time bursaries to further their Tourism Enterprise Development) and Clifford Cuba and Nomonde Ndlangisa tertiary education. A tourism bursary fund to support students from rural commu- received a bronze award for service ex- nities was provided to South Cape College whereby 13 students were selected cellence from the Western Cape Pre- as beneficiaries. A Breedekloof Wine and Tourism Bursary fund, which is a joint mier on 21 November 2006. partnership between the Department, Cape Winelands Municipality and the Uni- versity of Stellenbosch, to assist previously disadvantaged youth in accessing The Tourism Enterprise studies in the fields of wine and wine tourism was awarded to 5 students. Development project has been in The UWC-HDI management training pilot study was also initiated during this existence for 5-years and its mandate is to promote financial year and will be implemented in May 2007 with 10 HDI managers be- awareness of tourism business ing trained in management skills. opportunities throughout the The unit also supplemented funding received by Cape Town Routes Unlimited Western Cape. from THETA to ensure a further reach of the SA host training. The initial training The power of partnerships has offer was extended to frontline staff at tourism bureaus. been instrumental in boosting Within the Tourism Strategic Implementation sub-programme, the tourism in the Western Cape. Tourism Enterprise Development Unit successfully implemented the Tour- The Tourism Business Forum and ism Tiered Support System comprising of the Tourism Business Management all strategic business partners are working together to achieve Programme, the Tourism Mentorship Programme, the Fast Track Programme and this goal. the Tourism Help Desk Programme for its fourth successful year. Besides the 1

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639 entrepreneurs that have been through the Tourism Tiered Support System, an additional 180 tourism outreach sessions were held where approximately 3 600 community members attended these sessions. This has spread the understanding of tourism and how communities can be involved into almost every cor- ner of our Province. The Tourism Blue Chip Investment Portfolio was also developed. It facilitates entry into tourism businesses by suitable tourism entrepreneurs. With the help of the Tourism Blue Chip Investment Portfolio a number of feasibility studies will be conducted which will identify tourism businesses that have a good chance of succeeding. ITESP (Integrated Tourism Entrepreneurship Programme) was further refined to ensure that entrepreneurs have real benefit in the assistance provided and will be form part of the Tourism Blue Chip Investment Portfo- lio. Noxolo Ntenetya, Provincial Tourist The Tourism Regulation environment continues to implement training and Guide Registrar and Jasmin Johnson, a winner of the Provincial Welcome development programmes for historically disadvantaged individuals to enable Award 2006. them to become tourist guides and to ensure that they participate meaningfully in the tourism industry. Upskilling programmes were implemented for currently registered tourist guides to increase opportunities for employment in the industry. Provincial The provincial Tourist Guide Registraregistrar, responsible for keeping an ac- Welcome Awards curate and accessible register of qualified tourist guides in accordance with leg- 2006: Tourist islation, recorded a total of 415 new registrations and 937 re-registrations for Guide Category the 2006/2007 financial year. The total number of black tourist guides is 862 out of the total registered 2 874 tourist guides for the Western Cape. The Department hosted a gala- The unit also participated in a national task team that consisted of represent- dinner at Grand West Market Hall atives from DEAT, SATSA, dtidti, TBCSA, the Coaches Association and emerging on 30 November 2006 to tour operators. The purpose of the task team was to discuss some of the chal- announce the winners in this category. The aim of these lenges experienced by tour operators in obtaining their tour operating licences. awards is to find businesses and The task team has finalised recommendations to amend the National Land Trans- individuals who are raising the port Transition Amendment Act (NLTTA) (No 31 of 2001) thereby ensuring effi- level and standards of customer ciency and a quick turnaround time of all operating licensing boards. These service in the tourism industry, turning holidays into life changing recommendations were presented to DEAT who in turn will liaise with the De- experiences and sending tourists partment of Transport for possible action. home as ambassadors. The In order to address fragmentation in the tourist guiding fraternity, a service Welcome Awards showcase provider was appointed to develop a business plan for the establishment of a companies and individuals who are raising the bar in terms of Provincial Tourist Guides’ Association, which will include regional representa- visitor experiences. tion. Consultative roadshows were then conducted in two districts namely, Cape Winelands and Overberg to lobby tourist guides to establish district forums The three provincial winners for which will feed into the Association. These roadshows resulted in the appoint- the Tourist Guide Category, Wendy Bungeroth, Ernest ment of an interim committee in the two Districts to drive the implementation of Sonnenberg and Jasmin Johnson the Association. added value to tourist experience International Tourist Guides’ Day is celebrated annually on 21 February to and showed excellence in serving recognise the work of tourist guides globally. In celebration of this day, the De- customers. They will compete nationally with other provinces. partment organised a tour for Historically Disadvantaged Communities of Atlan- Category winners will be tis and Paarl to experience some of the tourism products. Two newly trained announced at the Tourism Indaba tourist guides were also given an opportunity to take these groups on tours in 2007 where they will receive R which included a half-day tour of the Peninsula and a braai at a local restaurant, 5 000 cash along with recognition and marketing exposure. The In the evening, tourist guides were treated to a dinner at Moyo, Stellenbosch. overall winner will receive a The highlight of the evening was a presentation on how tourist guides can pro- Grand Prix Award.

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mote and market this destination as growing and developing through the use of “Good News Stories”. Tourist guide registration continues to actively engage with industry to address illegal tourist guiding and reduce the number of illegal tourist guiding operatives. This includes the following initiatives: • A relationship was established with the Metro Police resulting in a number of inspections conducted on tourist guides at Table Mountain and Cape Point. Tourist guides found to be non-compliant were issued with warning letters and encouraged to register with the Department. • Agreements were reached with Table Mountain to allow tourist guides to present their registration cards and not badges to the cashier in order to qualify for a discount. Staff at Table Mountain were encouraged to check whether the registration is valid and that is has not expired, and not to give The winners from Islamia College & discounts for invalid registration cards. This exercise will encourage the Minister Lynne Brown. tourist guides to renew their registration with the Department and will be implemented at all tourist attractions in future. The Tourism • A presentation was done to the Tour Operators Association of Cape Town Schools’ (TOACT) to encourage the use of the database for tourist guides when em- Competition ploying tourist guides. • The validity of registration and qualifications of all tourist guides are The growing participation in the checked by the tourist guide registration office before the Cape Tourist sponsored annual schools’ Guides’ Association publishes its Directory. competition is evidence of the positive feedback and enthusiasm from both learners In the Tourism Road Signage and Safety and Support Unit and as part and educators. of the detailed monitoring and evaluation framework for the Western Cape, a number of attractions, products and services and the quality of various tourism Grades 10 and 11 learners must come up with creative and routes were assessed. These included, inter alia, the Outeniqua Choo Tjoe, innovative ideas. The winning Robben Island Museum and the Cango Caves. schools receive a R10 000 cash Tourism Competitiveness under took a comprehensive assessment of the prize and a 7-day tour around the Outeniqua Choo Tjoe steam train, which stopped running due to the dev- Western Cape, with an additional R5 000 for the overall astating floods in August 2006. The loss of this major tourism icon is having a provincial winner. The tour major impact on the local industry and growth development. Efforts are being promotes cultural diversity, made to elicit the support of Spoornet to open the heritage line again. An inves- bridges the gap between rural tigation into the formation of a Public Private Partnership (PPP) to manage the and urban divide and provides learners who do not have the Outeniqua Choo Tjoe heritage line in a sustainable manner with local stake- means to travel, with a chance holder participation is under discussion. to explore the province they live Management and operational issues regarding the Oudtshoorn Cango in. Caves received major media publicity. An inter-departmental provincial commit- The 2006 winners were tee met to discuss resolving matters relating to the ownership, upgrading and Vredendal High School from the sustainability of this major attraction. The Department has plans to undertake an West Coast, Islamia College in-depth investigation, in consultation with management and relevant role-play- from Cape Town, Overberg High ers and stakeholders, to place the operation of the Cango Caves on a more School from the Overberg, Bastiaanse High School from sustainable level. Central Karoo, Desmond Mpilo Robben Island Museum (RIM(RIM) received major criticism following the Tutu High School from the breakdown of ferry operation at the height of the festive season. MEC Lynne Winelands and Percy Mdala High Brown met with RIM management and will follow up to help overcome problems School from Eden. The provincial winner was Vredendal High affecting the World Heritage status of the island and raise the level of service in School. accordance with globally competitive standards.

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Tourism Safety and Support to economic development and The Access to the Cape continues to respond to incidents growth; programme was implemented for the involving “Tourists in Distress”. • the whale and tip of Africa third year. The aim was to make Annual figures reflect a decrease route in the Overberg region tourist attractions more accessible from 93 to 84 in the number of was launched at Indaba 2007 and to create tourism awareness recorded tourist related incidents for and is in the process of being amongst local communities. Twenty- 2006/2007. The incidents mainly signed; and five programmes were successfully involved assault, robbery and motor • three wine routes as part of implemented in the Western Cape in vehicle accidents. The number of in- the West Coast tourism 2006, and 1 670 learners and com- cidents that received major media development programme munity members participated in the attention also decreased. Proactive including Olifants River programme. The programmes were measures included the distribution of (Vredendal) and the Darling and implemented in the following safety tips, safety cards, stakeholder Swartberg wine routes were regions: the Cape Karoo, the leaflets, media/publication inserts opened. Overberg, the Cape Winelands, the and networking with key role players Garden Route, the Little Karoo, the like SAPS, consulates and the Within the Tourism West Coast and Cape Town. Some of hospitality industry on a continuous Empowerment Initiative Unit the programmes included forty street basis. The establishment of an inter- and as part of social tourism, the children from Cape Town who were active tourism safety and support Provincial Schools’ Competition ran taken up Table Mountain, visited the website in terms of tourist access to for its fourth consecutive year. The Two Oceans Aquarium, Hout Bay and information will be undertaken objectives of this project is to create the World of Birds and Duiker Island. during the 2007/2008 financial awareness of tourism amongst our In the Little Karoo 120 learners from year. youth and their communities; to the Eljada and Kairos schools for The implementation of the expose learners to the opportunities mentally challenged children were Tourism Road Signage and benefits that tourism has to taken to the Cango Wildlife Ranch. Framework for the Western offer; to allow learners to focus on The Tourism Youth Indaba CapeCape, in terms of the tourism access their surrounding environment and and Awards have gradually become to information mandate, saw twenty how it could contribute towards signature projects in the Department Regional Tourism Liaison Committee sustainable tourism development over the past three years. This (RTLC) meetings held under the aus- and practices; to allow learners to initiative, aimed at empowering youth pices of the Department in all five become innovative and creative; to in the tourism industry hosts a regions including the Cape develop entrepreneurship and number of young entrepreneurs, Metropole. Individual audits and business skills at school level; and future leaders and ambassadors. The consultative meeting were also held to empower our youth by creating initiative offers youth an opportunity with various road authorities and opportunities for them to voice their to explore and step in the right tourism stakeholders. Training opinions about tourism. Fifty three direction. sessions for tourism bureaus and entries were received from all over The winners of the Tourism Youth municipal officials were held in the the Western Cape in 2006. There Awards were awarded certificates of West Coast and Overberg regions. were six regional winners, each recognition in different sectors of the The unit was also involved in the receiving a R10 000 cash prize and tourism industry. The awards have following tourism route an additional R5 000 cash prize for embedded a strong sense of developments: the provincial winner. All the motivation in the winners as well as • the Cape Namibia tourism winners were taken on a seven-day the industry as a whole. route is a combined Western tour around the province. The tour The mandate of the Destination Cape, Northern Cape and was arranged by Overstrand tours Marketing Organisation,Organisation, also Namibian tourism initiative to and the feedback has been trading as Cape Town Routes encourage tourists to explore the exceptionally positive, proving that Unlimited (CTRU), is to attract more West Coast thereby contributing the tour was a great success. tourists to the Western Cape, ensure

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that they stay longer, spend more, visit throughout the year, have more reasons to do so and scatter them throughout the Western Cape. A further mandate is to promote transformation of the tourism industry in the Western Cape. Some of Cape Town Routes Unlimited’s highlights during the past financial year include: • Seasonality and regional spread: The 351 events across the Province were used as a platform to address seasonality and regional tourism spread. During the months of May to September, 83 events were hosted in Cape Town and 54 in the other regions of the Province. [Of the 351 events, 206 were in Cape Town, 53 in the Winelands, 17 in the Overberg; 34 in the Garden Route & Klein Karoo; and 33 in the West Coast.] Regional spread to the Winelands increased from 42% to 67% and the Garden Route from 37% to 48% by December 2006. Minister Lynne Brown & Elmarie Botes, • SME development: CTRU has assisted 185 emerging entrepreneurs by ex- Outstanding Tourism Student of 2006 in posing them to local and international leisure and business tourism markets the female category. such as the Cape Tourism Showcase, Indaba, World Travel Market, Meetings Africa and SA Tourism India Roadshow. Tourism Youth Indaba and Awards

The Tourism Youth Indaba and Awards have grown significantly since its inception in 2004, creating awareness, building and producing future leaders, and gradually becoming signature projects in the Department. These initiatives, aimed at empowering youth in the tourism industry, host a number of young entrepreneurs, future leaders and ambassadors.

There has been tremendous support and commitment from role players and partners, including the Department of Economic Development and Torism, Cape Town Routes Unlimited (CTRU) and Cape Peninsula University of Technology (CPUT), to sustain and develop these initiatives.

The Minister of Finance and Tourism, Lynne Brown, has personally endorsed the initiatives as her main priorities for the development and upliftment of youth.

The winners of the Tourism Youth Awards received certificates of recognition in different sectors of the tourism industry, embedding a strong sense of motivation in the winners and in the industry as a whole.

88 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Service delivery achievements

Sub-programme: Tourism Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets To ensure good gov- Management of Management of Management of 4 quarterly reports ernance by the DMO service level Agree- service level Agree- service level Agree- were delivered against (CTRU) ment of Destination ment of Destination ment of Destination the SLA in order to Marketing Organisa- Marketing Organisa- Marketing Organisa- process the four tion; annual review tion; annual review tion; annual review quarterly tranche and evaluation and evaluation and evaluation payments Developing, updating Development of Number of plans Development of Not met The ITDF review and evaluating tour- localised plans for the developed localised plans for the process was not ism spatial develop- following areas: following areas: completed in 2006/ ment and investment Overstrand (Rooi Els Overstrand (Rooi Els 2007 due to firstly framework (ITDF) to Pearly Beach) and to Pearly Beach) and capacity constraints the Southern Cape the Southern Cape and secondly to the Triangle Triangle priority emphasis (Mossel Bay, (Mossel Bay, placed on the imple- Oudtshoorn and Oudtshoorn and mentation of the George) George). WCTD Partnership Review of the ITDF Review of the ITDF The ITDF review process, which includes a drill down investigation into the sites, attractions, routes, infrastructure per each district municipality will be rolled out in 2007/ 2008 as a key priority; the ITDF review process will contain the drill down information that will feed into the higher-level WCTD Framework Developing, updating In terms of the ITDF Ensure route and Improve Tourism Consolidated the and evaluating tour- we have consolidated gateway development Development Areas Tourism Gateways and ism spatial develop- key Tourism Develop- finalised the Cape ment and investment ment Areas Flats Tourism Initiative framework (ITDF) Implementing ITDF ITDF: False Bay coast- Number of projects in The development of As a start to the projects in key tour- line identified areas and projects in key tour- development of the ism development ITDF: Development of recreational benefits ism areas False Bay Coastline areas the False Bay coast- for tourists and HDIs the Tourism Chief line; to be reviewed in through infrastruc- Directorate has pro- terms of the Western ture developemnt vided for the South- Cape Tourism Devel- ern Birding Area of opment Framework – the FBEP: 5 x Classical facility equipment Benches, 16 x Bollards provisioning (to be used as seating), and 4 x Tables;

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Sub-programme: Tourism Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets and for the Eastern Shore of Zeekoevlei of the FBEP: 80 x Bollards (to be used as seats), 20 x Tables and 20 x Warwick Planters (to be used as braai places). They are grouped together as a picnic/ braai unit. This is in partnership with the City of Cape Town Facilitating the devel- Development of Number of tourism Development of Not met Pending the outcome opment of tourism strategic tourism investment packages strategic tourism of the WCTD Frame- investment packages investment framework facilitated investment framework work, ITDF review and in consultation with the Blue Chip Invest- WESGRO ment Portfolio Conducting tourism Publication, communi- Number of topics Publication, communi- Develop a terms of research in consulta- cation and evaluation researched cation and evaluation reference for 2010 tion with the Re- of research with of research with research and partici- search and Manage- annual review process annual review process pated on the MEDS ment Unit oversight committee

Air access research (Business case into Africa)

Tourism Skills Develop- ment research in conjunction with the Work- force Development unit

Cape 365 international best practice study Monitoring and Identification of Number of tourism Identification of Not met Need to be developed evaluating tourism indicators programs monitored indicators in conjunction with programmes and evaluated the Department’s M & E System Developing policy in Development of policy Number of policies Development of policy Draft WCTD Frame- the various sub- on policing the indus- developed on policing the indus- work sectors of tourism try, sport tourism, try, sport tourism, cultural tourism and cultural tourism and social tourism social tourism Implementing the Implementation of 5 Number of projects Implementation of 5 This strategy should The WCTD Partnership tourism HRD strategy pilot projects as and partnerships pilot projects as be done in conjunc- was launched in March in partnership with recommended in the initiated recommended in the tion with the industry 2007, and the skills the tourism industry final framework final framework and the Western Cape development sub- Tourism Development committee will be Partnership established during the 1st quarter of 2007/2008

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Sub-programme: Tourism Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Establishing and HRD forum that is Fully operational HRD HRD forum that is Pending the estab- The WCTD Partnership maintaining a provin- fully operational forum that meets fully operational lishment of the WCTD was launched in cial HRD forum quarterly Partnership and the March 2007 and the skills development sub-committee will be sub-committee establish soon Conducting tourism Implementation of Number of training Implementation of -SA Host Customer education, training training in 2 pilot sessions in 6 regions training in 2 pilot Care Training and skills programmes sites linked to ITDF of the province sites linked to ITDF 153 beneficiaries in the six regions as short term interven- -Culture & Nature tions in consultation Tourist Guides Skills with workforce devel- Programme opment 43 beneficiaries Establishment of Establish and main- Number of successful Establish and main- CPUT Bursary Fund = various tourism tain 8 bursary funds bursary recipients tain 8 bursary funds 15 students related bursary funds South Cape College in partnership with Bursary Fund = 13 industry students

Breedekloof Bursary = 5 students

Total of 23 students were given an opportunity to study towards a diploma, mainly in tourism management and food & beverage management Facilitating stakeholder Monthly meetings Number of meetings Monthly meetings 35 meetings held interaction and net- with stakeholders and networking with stakeholders working with bi-monthly sessions organised for with bi-monthly networking sessions industry networking sessions Establishing and Review, monitoring Number of THDs Review, monitoring The service provider maintaining of net- and re-evaluation to capacitated and re-evaluation to revised the tourism work of tourism assess impact assess impact helpdesk payment helpdesks structure and deliverables - they added fieldwork and tourism outreach programmes (TOPS); previously only a few tourism helpdesk agents could do TOPS but after three days of extensive training, all THD agents could present TOPS and a few were selected to

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Sub-programme: Tourism Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets do awareness training as well; 18 active THD agents - 5 of them are team leaders; quarterly THD forums to capacitate THD agents and keep them updated on new developments; it also provides the opportunity for the Department to be kept up to date with developments in the regions; THD forums were held in May 2006 in Eden, August 2006 in Overberg, December 2006 in the Cape Winelands, and February 2007 in Cape Town Implementing and Maintenance, evalua- Number of entrepre- Maintenance, evalua- An external service maintaining tourism tion and refinement neurs trained tion and refinement provider was ap- entrepreneurship of programme of programme pointed; this has training programme tightened control and made it much easier to maintain, evaluate and refine the programme; the curriculum for beginners, intermediate and advanced has been revised and we have applied for THETA accreditation; in addition all entrepreneurs who attended the training were assessed at their businesses; training took place in all six regions of the West- ern Cape; there were 34 awareness sessions (1 084 people), 14 beginners sessions (381 people), 7 Inter- mediate programmes consisting of 56 intermediate sessions (150 entrepreneurs), and

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Sub-programme: Tourism Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets one combined advanced programme with 8 sessions (24 entrepreneurs); a total of 1 639 people were trained; in addition to the formal training on the training roster, the THDs also conducted 30 Tourism Outreach Programmes (TOPS) per month for six months across the six regions. This amounts to 3 600 people attending (on average 20 per session). Managing the Inte- Maintenance of Number of entrepre- Maintenance of 20 entrepreneurs were The programme grated Tourism Entre- programme in all six neurs assisted in the programme in all six assisted to grow their has been reviewed preneurship Support regions of the prov- six regions of the regions of the prov- businesses by increas- and refined in Programme ince, monitoring and province ince, monitoring and ing their turnover and in order to get more (ITESP) performance evalua- performance evalua- employment capacity; entrepreneurs to tion, 80 beneficiaries tion, 80 beneficiaries 14 from Cape Town, 2 benefit from the from West Coast, 2 programme from Cape Winelands, 1 from Overberg, 1 from Eden Establishing and 15 learners and Number of learners 15 learners and The fourth annual maintaining tourism mentors appointed to assisted mentors appointed to tourism mentorship enterprise develop- the programme, the programme, programme produced ment mentorship performance manage- performance manage- quality results for the programme ment and evaluation ment and evaluation participating tourism businesses with a success rate of 75%; each mentorship participant had been given personal attention and their needs and development areas have been identified; 15 learners and 15 mentors on the programme

Implementing an Assess, refine and Number of entrepre- Assess, refine and Fast track has been entrepreneurship fast maintain fast track neurs assisted maintain fast track successful in its re- track programme programme programme finement and implementation, and with a greater number of

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Sub-programme: Tourism Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets participants and a further increase in regional spread; furthermore the second annual tourism fast track programme has reinforced the importance of a basic mentorship initiative aimed at emerging tourism businesses; the programme has positively affected entrepreneurs across the regions of the Western Cape, and in many instances afforded entrepreneurs with opportunities such as tradeshows, exhibitions and confidence building training; 23 entrepreneurs were assisted in 2006/2007

Implementing com- Identify new commu- Number of commu- Identify new commu- 3 x projects munity tourism nity based projects nity projects nity based projects projects and provide support and provide support Die Hell - Tourism Plan

Duine Pos - Management of Accommodation Facilities

Boland 90, - Outdoor Adventure Event Implementing and Continued support to Number of social Continued support to Access to the Cape Review the planning maintaining social already established tourism projects already established Schools’ Competition and beneficiaries of tourism projects programmes programmes and Tourism Youth the social tourism Indaba Awards projects in 2007/2008 Implementing and Establishment of A fully implemented Establishment of Not met Need to be developed maintaining a project terms of reference, monitoring and terms of reference, in conjunction with monitoring and evalu- development of evaluation system development of the Department’s ation programme system system monitoring and evaluation system Keep an accurate and Increase of approxi- Number of new and Increase of approxi- Total number of new accessible register of mately 1 000 re- re-registered tourist mately 1 000 re- registrations is 415, qualified tourist guides registrations and 500 guides on the data- registrations and 500 while re-registrations within the province in new registrations base new registrations is 937 accordance with the legislation

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Sub-programme: Tourism Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets Deal with complaints Implement process for Number of complaints Implement process for A process for dealing against tourist guides addressing complaints recorded and attended addressing complaints with complaints has through the exercise on misconduct to on misconduct been established; a of disciplinary powers complaints form has been developed and is available on the tourist guide link on the Cape Gateway website; a designated official has been appointed to deal with these complaints To minimise the 2 000 pamphlets Number of public 2 000 pamphlets About 5 000 pam- utilisation of illegal printed and dissemi- awareness interven- printed and dissemi- phlets and posters tourist guides nated tions nated have been printed and through increased distributed to the local public awareness Bi-annual presenta- Bi-annual presenta- tourism bureaus and tions to tour operators tions to tour operators RTOs; inspections on tourist guides were conducted with Metro Police at Table Moun- tain, Cape Point and Nelson Mandela Gateway Disseminate informa- Database modified Number of tour opera- Database modified Presentations done to Upgrading of the tion about registered and upgraded for tors utilising registered and upgraded for the Tour Operators database currently tourist guides within effective public use guides on database effective public use Association of Cape underway and will the province and Town (TOACT) and only be completed in associations of tourist Presentations done to Number of presenta- Presentations done to SATSA to promote the 07/08 financial year; guides SATSA and TOACT tions held to promote SATSA and TOACT use of registered the Department guiding sector tourist guides resorted to 4 Newsletters distrib- 4 newsletters distrib- outsourcing the uted per year Number of newsletters uted per year Four newsletters have database mainte- distributed per quarter been produced and nance and upgrading distributed to all to an external service registered tourist provider as there was guides; the newsletter no capacity internally was revamped to to effectively deal ensure that it was in with this issue line with the Departmental branding Maintaining a coop- Maintain and build on Number of Maintain and build The registrar has been erative relationship existing relationships stakeholder meetings on existing relation- attending quarterly within the tourism attended ships SATSA meetings to industry in consulta- Ensure provincial Ensure provincial build on the existing tion with national support towards support towards relationships government attaining national attaining national objectives of NFTGA objectives of NFTGA

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Part 2: Programme Performance Programme 5: Tourism

Sub-programme: Tourism Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets To promote and en- Increase number of Increase number of Increase number of The total number of WCTGA is not fully courage transforma- black tourist guides by black tourist guides black tourist guides by black registered guides established as more tion within the tour 25% 25% is 862 out of a total of engagements still guiding industry Number of training 2874 = (29%) need to take place in Presentation of an and upskilling inter- Presentation of an were part of an two other regions upskilling programme ventions for HDI upskilling programme upskilling programme to to existing HDI guides tourist guides to existing HDI guides ensure that they are qualified as Regional The NFTGA is not WCTGA fully estab- Number of black WCTGA fully estab- Guides operational at this lished with a commit- guides on guiding lished with a commit- stage as national tee and a constitu- structures and tee and a constitu- A basic German conver- DEAT is trying to tion associations to drive tion sational training was revive the national transformation offered to black guides association 25% of WCTGA agenda 25% of WCTGA to enable them to meet executive committee executive committee the needs of the desti- to be constituted of to be constituted of nation’s core market black guides black guides (Germany) Two engagements with Conditional support of Conditional support of Cape Winelands and NFTGA on promotion NFTGA on promotion Overberg Regions con- of transformation of transformation ducted for the establishment of the regional associations which will have representation at the WCTGA once fully established To promote tourism Distribution of the Number of awareness Distribution of the Tourism safety tips and safety and security brochure and safety programmes brochure and safety tourism stake-holder awareness through tips programme tips programme brochures were distrib- special programmes uted throughout the Maintenance of Maintenance of region tourism safety and tourism safety and security forum security forum Regional Tourism Safety Maintain proactive and Support plans for Maintain proactive programme the Garden Route and programme local towns were com- Development of pleted Development of regional liaison officers regional liaison officers at LTBs Training of LTBs at LTBs through the Regional Draft plans for roll-out Safety and Security Co- Draft plans for roll-out to regions ordinator for the Cape to regions Metropole, Overberg and Eden District, West Coast and local representative in Route 62 and Central Karoo so that LTBs know what to do when an incident happens

96 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Sub-programme: Tourism Industry Development Measurable Outputs Output performance Actual performance against target objective measures/service delivery indicators Target Actual Remedial action against deviation from actual targets To provide a high level Responding to 80% Number of effective, Responding to 80% of The TSSU continued Outsourcing of tour- response capability of incidents; update efficient responses to incidents; update to respond to “tourist ism safety and sup- through the tourism database incidents database in distress” requests port programme needs victim support pro- to be finalised gramme in consultation with CTRU Facilitate implementa- Continued develop- Identify and facilitate Continued develop- Projects have reached Funding to be final- tion of tourism road ment of road signage signage for tourism ment of road signage implementation stage ised signage framework for Cape-Namibia route/area and gate- for Cape-Namibia tourism route way development tourism route Refer to ITDF review Number of tourist Continued develop- routes signed Continued development of road signage ment of road signage for Overberg tourism for Overberg tourism routes routes

Continued develop- Continued development of road signage ment of road signage for Eastern, Western for Eastern, Western and Northern Gate- and Northern Gate- ways as required – ways as required - ongoing ongoing To facilitate the provi- 5 regional tourism Number of RTLC fully 5 regional tourism 20 RTLC meetings held sion of appropriate liaison committees functional meetings liaison committees throughout the 5 tourism road signage fully functional meet fully functional meet regions in accordance with on scheduled basis Number of meetings on scheduled basis the approved frame- held work Facilitate the removal Facilitate the develop- Number of illegal signs Developing a protocol Referred to Depart- of illegal tourism ment of an effective removed for removing illegal ment of Public Works related road signage illegal road signage road signage and Roads removal protocol

97 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

98 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Part 3 Report of the Audit Committee

99 Part 3: Report of the Audit Committee PROVINCIAL GOVERNMENT WESTERN CAPE SHARED AUDIT COMMITTEE REPORT FOR THE FINANCIAL YEAR ENDING 31 MARCH 2007

Appointment of the Shared Audit Committee We are pleased to Department of Economic Development and Tourism (Vote 12) is served by a Shared Audit Committee appointed under Cabinet Resolution 75/2003 present our report on 23 June 2003 which was subsequently extended by Cabinet Resolutions for the above- 95/2005 and 77/2007. The term of the Shared Audit Committee expires on 31 December 2007. mentioned From 2008 the Department will be served by the Economic cluster Audit financial year. Committee. Audit Committee Members and Attendance The Shared Audit Committee is required to meet a minimum of 4 times per annum as per its approved Terms of Reference. During the current year 11 meetings were held and the members attended as shown below.

Member Meetings Attended

Mr J.A. Jarvis (Chairperson) 11 Mr J. January 5 Mr P. Jones 10 Mr R. Warley 8

Audit Committee Responsibility The Shared Audit Committee has complied with its responsibilities arising from section 38(1) (a) of the PFMA and Treasury Regulation 3.1.13 and 27(1) (10). The Shared Audit Committee has also regulated its affairs and discharged its responsibilities in terms of the Audit Committee Charter. Effectiveness of Internal Control Internal Audit Function In 2004 the Sihluma Sonke Consortium was appointed to develop and transfer internal audit skills to the staff of the Provincial Government over a three-year period. Due to budget and capacity constraints there was a lack of adequate coverage of high risk areas identified by the Department. This increased the risk of a poor control environment with the associated potential losses. At the end of December 2006 the Consortium contract was extended for a further 2 years to allow the development of the Internal Audit function to be completed.

100 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

The Shared Audit Committee’s given to strengthening the risk to be included in the annual report review of the 2007/08 Operational management function. with the Auditor General and the Internal Audit plan indicates that Accounting Officer; there should be a smoother transfer Auditor General · reviewed the Auditor General’s of skills during the next two years. The Auditor General once again Management Report and highlighted that the Department was Management’s response thereto; Quality Assurance Review unable to reconcile Liquor License and During the year under review the income received from SARS. This issue · reviewed significant adjustments Institute of Internal Auditors (SA) (IIA) is now hopefully resolved through resulting from the audit. conducted a quality assurance review promulgation of the new Western of the Internal Audit activity. The Cape Liquor Act 2007. The Shared Audit Committee concurs Institute issued an opinion of partial and accepts the Auditor General’s conformance with the Standards of Information Technology conclusion on the annual financial Internal Audit. The Internal Audit Unit During the year under review Internal statements, and is of the opinion that is in the process of implementing the Audit carried out a comprehensive the audited annual financial recommendations made by the IIA. audit of IT facilities under the control statements be accepted and read of Centre for e-Innovation (Ce-I). The together with the report of the Internal Audit Findings audit highlighted a growing crisis Auditor General. During the financial year the Shared within IT and the need to replace Audit Committee met with outdated equipment, improve security, Appreciation management periodically to track back-up information and develop The Audit Committee wishes to their progress in resolving plans to address the business needs of express its appreciation to the outstanding critical and significant its customers including this Provincial Treasury, officials of the internal control issues previously Department. The Shared Audit Department, the Auditor General and raised by the Auditor General and Committee believes the way forward the Sihluma Sonke Consortium for the Internal Audit. is for this Department’s officials to information they have provided for us Internal Audit reported critical participate in a project team to to compile this report. and significant findings in relation to develop IT policies that address the Liquor Regulation process including needs of users on an ongoing basis. the following: · Inadequate safeguarding of Liquor In Year Management Licensing records, Liquor License Reporting application backlog and some The Shared Audit Committee has applications are not recorded at all. reviewed the In Year Management · System user access security not Reports and discussed these with adequately controlled. Department officials. Sufficient Risk Management progress is being made in the development and quality of these The Shared Audit Committee notes reports. with concern that during the year under review the Department had not appointed a Chief Risk Officer to Evaluation of Financial highlight and bring changes to the Statements Mr. J.A. Jarvis risk environment to the attention of The Shared Audit Committee has: Chairperson of the Shared Audit management. The committee · reviewed and discussed the Committee recommends that more focus be audited annual financial statements Date: 13 September 2007

101 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

102 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Part 4 Annual Financial Statements

103 Part 4: Annual Financial Statements Report by the Accounting Officer for the year ended 31 March 2007

The Provincial Growth and Development Strategy (PGDS) agreed between government, business, civil society and social partners, sets a clear vision for the 1. General review Department – one of shared growth and integrated development. of the state of The iKapa Elihlumayo strategy, which evolved out of the PGDS, is based on financial affairs four key pillars, namely growth, equity, empowerment and environmental integri- ty. The iKapa Elihlumayo strategy recognises the need to define the desired form of growth that Government seeks to stimulate. Foremost, it recognises that economic growth is accompanied by and im- proves on the social equity of the Province. Finally, it highlights that social inequality can negatively affect the benefits of any economic growth attained for the poor, as well as future growth. The basic approach to the work of the Department of Economic Development and Tourism is to develop a vehicle of appropriate direct services to all economic citizens on the ground. Fundamental to the development of such vehicles is the Micro-Economic Development Strategy (MEDS). In response to the above-mentioned call, the Department has divided its interventions into: • Participatory Interventions • Sectoral Interventions (interventions into the priority and significant sectors) • Regulatory interventions, which includes Liquor Industry Development and Consumer Protection services.

In terms of our Participatory Interventions, the Department has concentrated its efforts on the consolidation of its RED Strategy, the improvement of services offered by the RED Doors, the roll out of the Die Plek Plan programme and the finalisation of a comprehensive BBBEE strategy. Our efforts to increase the levels of enterprises in the economy have made significant progress during the financial year. Major strides have been taken to establish and operationalise the RED Campus project. The project relies on having the infrastructure to establish a curriculum for entrepreneurs; we have identified the Mega Red Door to host the training facility for the project implementation. In negotiations with the Business Place, a partner for the Mega Red Door, we have managed a fair settlement and were able to finally sign an agreement with their board. This lays the foundation for the Red Campus and we can continue with this project. Two new RED DOOR centres have been opened in Mossel Bay and Table View respectively. The Department also facilitated the establishment of Mobile RED Doors in the Vredenburg, Hermanus and Stellenbosch areas. Reasons for the downscaling of the proposed RED Door in the Stellenbosch

104 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

area from a full RED Door Office to lantis, with a highly successful boat- tre – creating a precedent for BPO- Mobile RED Door can be attributed to show in Florida (with R50m worth of specific training infrastructure within an agreement reached with SEDA that new orders) and 25 students graduat- South Africa. Based on experience no RED Door Offices will be ing from the boat-building school. with the highly successful CADET pro- established in areas where they are The delay in the container terminal gramme, it is anticipated that 80% of operational as this can be seen as expansion has impacted heavily on the 900 previously unemployed, duplication of Government services. the ship-repair facility that was to go largely Black learners to be trained Within the LED unit, the Plek Plan ahead in the Elliot basin. Discussions through the Centre will find employ- programme, in its Year-1 of roll-out, have been held with the NPA as to ment as a result of their training and completed the technical side of the whether provincial facilitation would that their average starting salary will programme of 24 municipal profiles assist regarding Transnet’s decision be of the order of R4 000 per month. that serve as the foundation of the regarding the container terminal, but The Department showed support economic baseline information re- has been declined. for the establishment of an Advance quired for municipal regions. The 2006/07 financial year has Manufacturing technology Laboratory The Economic empowerment unit seen a continued intensification in the which would serve as an innovation was also instrumental in facilitating 4 work of the ICT SPV, with a concurrent hub in and amongst others, sensor major transactions. These deals have strategic focus and alignment of ITS technologies, new materials and an estimated value in excess of R 30 plans with the Micro Economic Devel- smart devices for the Western Cape million. The highlights of these are opment Strategy (MEDS) for the ICT priority and significant Industry Sec- the Anchor Industries deal where a industry. tors 25% shareholding in the business was The ICT census contract was Through our Tourism Programme, sold to staff and in the Oil and Gas awarded and significant emphasis was we were able to conceptualise and in- Industry, where workers purchased a placed on developing suitable terms itiate a new project called the Tourism 26% stake in a leading industry firm. of reference and a questionnaire to Blue Chip Investment Portfolio to fa- In terms of our sectoral initiative ensure that relevant and comprehen- cilitate mass entry into tourism busi- much work has been completed in fi- sive data could be obtained from the nesses by suitable tourism nalising business plans for the imple- industry. This information will then be entrepreneurs with the help of the TB- mentation of interventions identified used for CITI to shape and further im- CIP. A number of thorough feasibility through the MEDS process. Some prove their offering to the industry studies were conducted and a number highlights of interventions supported and also forms the basis for develop- of tourism routes identified by tourism includes the support of the BPO in- ing an Investment and Outsourcing businesses, that will have a very good dustry, ICT Industry, Clothing and Tex- Strategy. chance of succeeding. tile industry and Tourism The BPO industry continued to The festive season safety and se- Manufacturing Industry Sectors show rapid growth in the Western curity Tourism Victim Support Pro- showed major progress in that the Cape, with the number of agents in- gramme was launched during the 3 rd R155 million Saldanha Fabrication creasing by 41% in the last year to 15 quarter and the end of season wrap Facility was officially launched at a 899, with the overall industry employ- up during the 4 th quarter reflected a sod turning ceremony. This is the real- ment at 22 156 (a 30% growth em- slight decrease in the number of re- isation of a key piece of the infra- ployment growth rate has been corded tourist related incidents for the structure required to meet the vision maintained for the past 3 years, with year 2006. The number of incidents of the Western Cape becoming a sig- the expectation that in the next 12 that received major media attention nificant international oil & gas hub, months, the industry will continue to also decreased. This could be attribut- and the primary facility for West Afri- grow by a further 37%). ed to the highly successful tourism ca. In addition, Calling-the-Cape has safety & support proactive pro- The Boat-building Initiative has secured PGWC – owned premises in gramme. played an important role in facilitating Athlone, viz. the former CRIC centre Agreements were reached with the the accessing of industrial land in At- for use as a dedicated BPO Job Cen- Management of Table Mountain Na-

105 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements Report by the Accounting Officer for the year ended 31 March 2007

tional Parks to allow tourist guides to by the Premier in May 2007. a union-type association for the pa- to present their registration cards The infamous backlog in the con- ralegal workers (as opposed to the and not badges to the cashier in sideration of applications by the Liq- WCAOA, which is a management or- order to qualify for a discount. Staff uor Board has been all but eliminated, ganisation). at Table Mountain were encouraged with applications generally being Another major focus area of the to check for the validity of the placed on the Board’s agenda within Office of the Consumer Protector was registration and if registration has 4 – 5 months after being lodged at the on achieving the objectives related to expired, not to give a discount. This respective magistrates’ courts. Delays training of advice office staff, which will encourage the guides to renew are now increasingly due to incom- was completed with success rate in their registration with the pleteness or other defects that can be excess of the projects stated targets. Department. This exercise will be ascribed to the applicants or their rep- implemented at all tourist attractions resentatives. Expenditure in the near future. The transition of the Liquor Board The Department’s original allocation Further delays in the finalisation into a fully-fledged public entity also for the 2006/07 financial year was R of the Liquor Bill – most notably the suffered a delay due to the uncertainty 188, 433 million. This was further di- Standing Committee’s decision to surrounding the passing of the Bill by vided into 5 programmes, namely Ad- postpone the final series of public the Legislature. With that process now ministration (R 28, 502 million), participation sessions from early De- all but completed, and the Bill expect- Economic Participation (R 49, 594 cember to late January/early ed to be promulgated in May 2007, million), Fair Business Environment (R February 2007 – caused the the transition process has gained mo- 15, 180 million), Economic Sector postponement of work on a number mentum. The Directorate: Human Re- Development (R 51, 020 million) and of initiatives dependent on the source management and Support Tourism (R 44, 137 million). finalisation and promulgation of the services has assigned a dedicated The main sources of income to Liquor Bill. Furthermore, the staff member to render assistance to capitalise this budget was from the concomitant inability to restructure the Board in this regard and a full re- Equitable Share (R 168, 433), certain sections of the Liquor port and implementation plan for the Provincial Financing (R 5 million) and Board’s administrative division transitional process is being finalised the Department’s own revenue (R 15 resulted in undue pressures being for consideration and approval by the million). placed on staff, which saw a tempo- Standing Committee and the Minister. During the Adjustment Estimate rary delay in the completion of The Office of the Consumer Pro- process, the Department surrendered certain tasks. This was however tector was instrumental in establishing and amount of R 9, 772 million. Due rectified at the end of the quarter. a provincial co-ordinating body for to the Liquor Bill not being enacted by The most important achievement the advice office sector in the prov- the Provincial Legislature, the Depart- within Liquor Regulation has been ince. This was launched in Beaufort ment’s ability to collect on its Liquor the finalisation of the Liquor Bill and West in October 2006. The founding Revenue was hindered. This source of its formal submission to the meeting was a resounding success, revenue originally estimated at R 15 Legislature by the Minister of with attendance by 108 representa- million, was decreased by R 10, 4 mil- Environmental Affairs, Development tives of 31 of the 48 advice offices lion to R4, 6 million during the Ad- Planning and Economic that applied for affiliation. Styled the justment Estimate process. Development. The Bill was approved Western Cape Advice Office Associa- R 0, 628 million from the Depart- by the Legislature on 27 March tion (WCAOA), the body immediately ment’s over-collection of revenue in 2007 and thereafter submitted to the set about establishing itself as the the previous financial year was re- Department of Trade and Industry for voice of the advice office movement in tained to support the 1000 X 1000 comment on its compliance with the the province, and is already a major project. criteria of the (national) Liquor Act, player in a long-running initiative to The Department effected an over- (Act 59 of 2003), in accordance with re-establish a national body, to which all saving of R 3, 204 million for the Schedule 2(2) of that Act. It is exit will be affiliated. A second, similar, 2006/07 financial year. This repre- pected that the Bill will be assented initiative is now underway to establish sents a saving of 1,8 %

106 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Revenue also resulted in an enormous drain to Destination Marketing The Department budgeted an amount the institutional memory of the Organisation (DMO) of R 15 million for Departmental Rev- Department. Remedial steps have been The DMO was established in terms of enue in the 2006/07 financial year. implemented to remedy this constraint. the Provincial Western Cape Tourism This was later revised to R 4, 6 mil- Act (Act 1 of 2004). The major objec- lion during the Adjustment Estimate 4. Utilisation of tive of the DMO is to promote the process. This amount was to be col- Western Cape and Cape Town as a lected from the following sources: donor funds premier tourist destination. No Donor funding was received in the • Liquor License Fees (R 4, 330 An amount of R 27, 050 million million), and 2006/07 financial year. was transferred to the DMO in the • Tourist Guide Registration (R 0, 2006/07 financial year. This repre- 270 million). 5. Trading entities sents an increase of 2 % when com- and public entities pared to the 2005/06 financial year As at the end of the 2006/07 finan- where an amount of R 26, 510 mil- The Department has three Public Enti- cial year, the Department reflected an lion was transferred. ties that report to it in terms of section over-collection of R 6, 302 million of The primary purpose of this allo- 47 (1) of the Public Finance Manage- the adjusted budget for revenue. The cation was to provide for the opera- ment Act, 1999 (act 1 of 1999). These primary reasons for the over- collec- tional costs including salaries and to are: tion on revenue was due the sale provide for projects identified by De- • Western Cape Investment and price on the Novel factory in Atlantis partment. Trade Promotion Agency being paid over to the Department (WESGRO) from Wesgro. • The Destination Marketing Organ- Western Cape Liquor Board isation (trading as Cape Town This is an in-house public entity that is responsible for the regulation of 2. Service rendered Routes Unlimited) • The Western Cape Liquor Board the retail and micro-manufacturing by the Department sectors in the liquor industry. An Services rendered by the Department amount of R 4, 765 million was include the registration of Tourist Western Cape Investment and Trade Promotion Agency expended by the Western Cape Liquor Guides and the issuing of Liquor Board during the execution of its Licenses to compliant applicants. (WESGRO) functions in the 2006/07 financial All tariffs are reflected in the Pro- WESGRO was established in terms of year. vincial Treasury approved tariff regis- the Western Cape Investment and ter, which was implemented on 1 Trade Promotion Law, 1996 (act 3 of 6. Organisations to August 2002 and revised on an annu- 1996). The major objective of the al basis or as legislation may deter- agency is to promote investment in whom transfer mine. and trade with the Western Cape. payments have been An amount of R 10, 891 million 3. Capacity was transferred to Wesgro in the made 2006/07 financial year. This repre- A list of transfers made to organisa- constraints sents a decrease of 55.5 % when tions is included in Annexures 1 E, As stated in the previous Annual re- compared to the 2005/06 financial G, H, I, K, L and O, of the Annual port, the Department’s critical year where an amount of R 24, 5 mil- Financial Statements. capacity constraint has been delays in lion was transferred. Most notable of these are the the evaluation and filling of key The primary purpose of this alloca- transfers to Municipalities that posts. The human resource capacity tion was to provide for the operation- amounted to R 0, 491 million. The pri- constraint was also further al costs including salaries and to mary reasons for these transfers was exacerbated by the loss of key provide for projects identified by De- to assist with the implementation of personnel. This loss of key personnel partment. Tourism Developmental Programmes.

107 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements Report by the Accounting Officer for the year ended 31 March 2007

Transfers to CASIDRA amounted The comprehensive inherent risk 10. New/proposed to R 22, 6 million, primarily to assist assessment was completed for the the Department in the establishment 2006/07 financial year. activities and maintenance of the RED door initi- The office of the Chief Financial Of- As stated above, the new Departmen- ative and the management of the 1000 ficer issued a financial Manual in line tal structure will therefore be Adminis- x 1000 project in the Western Cape. with the PFMA, Treasury Regulations tration, Integrated Economic Transfers to CSIR amounted to and Provincial treasury Instructions to Development Services, Trade and in- R 7, 5 million. Reasons for these establish efficient financial management dustry Development, Business Regula- transfers were for the continued sup- and policy in the Department. tion and Governance and Tourism. port of Die Plek Plan programme and An Internal control unit is opera- Reasons for this change in Depart- the capitalisation of the Rural Eco- tional within the Department and mental programme structure are to nomic Assistance Fund (REAF). tasked to continuously monitor com- enable easier alignment, reporting pliance with prescripts and post audit- and comparability between all Depart- ing of financial records. ments of Economic Development na- 7. Public Private For the financial year in review, tionally. Partnerships (PPP) the Internal Control Unit has conduct- No PPP’s were undertaken in the ed compliance audits within the Finan- 11. Asset 2006/07 financial year. cial Management and Human Resource Management directorates. management 8. Corporate Reports on the findings and recom- All assets have been captured in the mendations were submitted to man- asset register and the register is rec- governance agement for evaluation. Corrective onciled with BAS on a monthly basis. arrangements actions are being taken to address There is only one official currently control deficiencies and improve the in this unit. A clerk post will be filled The National Treasury’s Internal Audit systems as identified. in the next two months. Approval has Framework and Treasury Regulations The Department currently shares been obtained to expand the unit. determine the establishment of a risk- the centralised Audit committee and The asset register comply with the based approached to an Internal Audit. Internal Audit unit of the Province. minimum requirements of National This approached is consistent with the Treasury guidelines. requirements of the Public finance 9. Discontinued The milestones to meet the com- Management Act, Act 1 of 1999 and pliance with National Treasury Guide- the King II report. activities/activities to lines have been met. A risk based approached requires that audit planning and associated be discontinued fieldwork should ensure adequate cov- To better realign the services of the 12. Events after the erage of all of the most significant Department with other Departments of reporting date Economic Development, nationally, the risks, but also includes focusing on No material facts or circumstances Department underwent a process of operational and strategic risks. have occurred between the reporting A key benefit of a risk-based ap- renaming a number of its programmes date and the date of authorisation of for 2007/08 financial year. The re- proach to an internal audit is the ability issue of this report to define a common approach to as- named programmes are as follows: surance incorporating a number of as- No Programme No New Programme Name 13. Performance surance role players. Within this (2006/07) (2007/08) context and as part of a three-year en- 2 Economic 2 Integrated Economic information gagement with the Provincial Govern- Participation Development Services Performance within the Department is 3 Fair Business 4 Business Regulation ment of the Western Cape, the Sihluma strictly gathered and monitored Environment and Governance Sonke Consortium has been tasked to 4 Economic 3 Trade and Industry through the Department’s Departmen- conduct a comprehensive inherent risk sector Development tal Operation and performance Man- assessment in this Department. Development agement System (DOPMS). All units

108 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

within the Department are required Accounting Officer for discussion in separate annual reports which will be to document all projects implement- the Departmental Top Management tabled by the responsible Executive ed and performance information is Committee meetings. Authority. gathered in terms of progress achieved on a monthly basis. A 14. SCOPA 15.3 Impairment of DOPMS panel, consisting of the Ac- resolutions Investment counting officer, Chief Financial Of- The calculation of the impairment is Include a table in the management re- ficer, HR manager, DOPMS manager based on the percentage shareholding port on the SCOPA resolutions. The and all Programme Managers, has in Cape Town International Conven- table should conform to the following also been established. All Pro- tion Centre (Convenco). The share of format: grammes are to present information the impairment calculates to R77 mil- to the Panel and this is then evaluat- Reference to Subject Findings on progress lion and form part of the provisions ed in terms of discussing constraints previous audit disclosure note in accordance with the report and SCOPA and providing advice as to how to findings accounting policy for investments. improve delivery within the various NoneNone None projects. 16. Approval The Management Accounting The Annual Financial Statements set sub-directorate further evaluates all out on pages 103 to 145 have been performance against expenditure. 15. Other approved by the Accounting Officer. This is later compiled into the quar- 15.1 Inventory balances at terly performance Reports and later year-end consolidated into the Department’s The Department did not have any in- Annual Report. ventories on hand at year-end All actual information provided is also verified by the Internal Control 15.2 Financial Statements unit who regularly conduct inspec- The annual financial statements of the tions in terms of the Performance In- public entities, Destination Marketing formation to verify whether suitable Organisation (DMO) and Western documentary evidence exists for ac- Cape Investment and Trade Promotion tual achievements claimed by units. Agency (WESGRO), do not form part Management Reports are later of the Department’s financial state- Dr Hildegarde Fast drafted and submitted via the Office ments as the Accounting Authorities of Acting Head of Department of the Chief Financial Officer to the the public entities will be compiling 31 May 2007

109 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements Report of the Auditor-General to the Western Cape Provincial Parliament on the Financial Statements and Performance Information of Vote No12 Responsibility of the accounting officer for the financial statements REPORT ON THE 2. The accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with the modified FINANCIAL basis of accounting as determined by National Treasury as set out in STATEMENTS accounting policy note 1.1 and in the manner required by the Public Finance Management Act, 1999 (Act No. 1 of 1999 – (PFMA). This responsibility Introduction includes: · designing, implementing and maintaining internal control relevant to the 1. I have audited the preparation and fair presentation of financial statements that are free accompanying financial from material misstatement, whether due to fraud or error statements of the Department of · selecting and applying appropriate accounting policies · making accounting estimates that are reasonable in the circumstances. Economic Development and Tourism which comprise the Responsibility of the Auditor-General statement of financial position as 3. As required by section 188 of the Constitution of the Republic of South at 31 March 2007, appropriation Africa, 1996 (Act No. 108 of 1996) read with section 4 of the Public Audit statement, statement of financial Act, 2004 (Act No. 25 of 2004) my responsibility is to express an opinion on these financial statements based on my audit. performance, statement of 4. I conducted my audit in accordance with International Standards on Auditing changes in net assets and cash and General Notice 647 of 2007, issued in Government Gazette no. flow statement for the year then 29919 of 25 May 2007. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable ended, and a summary of assurance whether the financial statements are free from material significant accounting policies misstatement. and other explanatory notes, as 5. An audit involves performing procedures to obtain audit evidence about the set out on pages amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the 112 to 145. risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. 6. An audit also includes evaluating the: · appropriateness of accounting policies used · reasonableness of accounting estimates made by management · overall presentation of the financial statements. 7. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Basis of accounting 8. The Department’s policy is to prepare financial statements on the modified cash basis of accounting as determined by the National Treasury, as set out in accounting policy 1.1.

Opinion 9. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Department of Economic Development and

110 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Tourism as at 31 March 2007 and 11.The annual financial statements, present the performance against of its financial performance and approved by the accounting officer predetermined objectives of the cash flows for the year then as submitted for audit, have been department. ended, in accordance with the significantly revised in respect of: modified cash basis of accounting (i) the closing balance of transport Responsibility of the Auditor- determined by the National assets have been corrected from General Treasury of South Africa, as set R1 621 000 to R0 in disclosure 15.I conducted my engagement in out in accounting policy 1.1 to the note 25 as the risks and rewards accordance with section 13 of the financial statements, and in the associated with ownership of the Public Audit Act, 2004 (Act No. 25 manner required by the PFMA. transport vehicles did not reside of 2004) read with General Notice with the department; and 646 of 2007, issued in Govern- OTHER MATTERS (ii) the total of employee benefits ment Gazette No. 29919 of 25 I draw attention to the following as disclosed in disclosure May 2007. matters that are ancillary to my note 20 have been corrected 16.In terms of the foregoing my responsibilities on the audit of the from R3 766 000 to engagement included performing financial statements. R2 296 000 as incorrect procedures of an audit nature to 10.Inadequacy of the applicable salary notches and leave days obtain sufficient appropriate legislation (not affecting the were used in its calculation. evidence about the performance financial statements) 12. Delay in finalisation of audit information and related systems, Due to the national public sector processes and procedures. The The department was unable to strike action during June 2007 the procedures selected depend on account for the completeness of Auditor-General had to delay the the auditor’s judgement. the debt raised in respect of liquor finalisation of affected 17.I believe that the evidence I have licenses due to the non- departments. As a result, the obtained is sufficient and finalisation of the Western Cape Auditor-General’s consistency appropriate to report that there Liqour Bill by the local legislature. review process of the audit reports have been no significant findings Subsequent to the period under could only be conducted identified as a result of my audit. review, the legislature had subsequent to 31 July 2007, the promulgated the Western Cape consequence of which was a delay APPRECIATION Liquor Act 2007, which would in the finalisation of the audit of 18.The assistance rendered by enable the department to this department for the 2006/07 the staff of the Department of financial year. accurately account for the liquor Economic Development and license income. Tourism during the audit is OTHER REPORTING sincerely appreciated. In this regard attention is drawn to RESPONSIBILITIES disclosure note 22 to the annual Reporting on performance financial statements where the information Department remained unable to 13.I have audited the performance completely account for the income information as set out on pages in respect of liquor licenses that is 30 to 97. collected by the South African AA Hardien for Auditor- General Revenue Services (SARS) on its Responsibilities of the Cape Town accounting officer behalf as a result of SARS paying 17 August 2007 the money over in a lump sum, 14.The accounting officer has additional and not supplying the department responsibilities as required by with a complete and detailed section 40(3) (a) of the PFMA to breakdown of the income it ensure that the annual report and collected. audited financial statements fairly

111 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements Accounting Policies for the year ended 31 March 2007

1. Presentation of the Financial Statements 1.1 Basis of preparation The Financial Statements have The Financial Statements have been prepared on a modified cash basis of ac- been prepared in accordance counting, except where stated otherwise. The modified cash basis constitutes the cash basis of accounting supplemented with additional disclosure items. Under with the following policies, the cash basis of accounting transactions and other events are recognised when which have been applied cash is received or paid. consistently in all material 1.2 Presentation currency aspects, unless otherwise All amounts have been presented in the currency of the South African Rand (R) indicated. which is also the functional currency of the Department. 1.3 Rounding However, where appropriate Unless otherwise stated all financial figures have been rounded to the nearest one thousand Rand (R’000). and meaningful, additional information has been disclosed 1.4 Comparative figures Prior period comparative information has been presented in the current year’s to enhance the usefulness of financial statements. Where necessary figures included in the prior period finan- the Financial Statements and cial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current year’s to comply with the statutory financial statements. requirements of the Public 1.5 Comparative figures - Appropriation Statement Finance Management Act, Act 1 A comparison between actual amounts and final appropriation per major classi- of 1999 (as amended by Act fication of expenditure is included in the appropriation statement. 29 of 1999), and the Treasury 2. Revenue Regulations issued in terms of 2.1 Appropriated funds the Act and the Division of Appropriated and adjusted appropriated funds are recognised in the financial records on the date the appropriation becomes effective. Adjustments to the ap- Revenue Act, Act 2 of 2006. propriated funds made in terms of the adjustments budget process are recognised in the financial records on the date the adjustments become effective. Total appropriated funds are presented in the statement of financial performance. Unexpended appropriated funds are surrendered to the Provincial Revenue Fund. Amounts owing to the Provincial Revenue Fund at the end of the financial year are recognised in the statement of financial position.

2.2 Departmental revenue All Departmental revenue is paid into the Provincial Revenue Fund when received, unless otherwise stated. Amounts owing to the Provincial Revenue Fund at the end of the financial year are recognised in the statement of financial position. Amounts receivable at the reporting date are disclosed in the disclosure notes to the annual financial statements.

2.2.1 Tax revenue Tax revenue consists of all compulsory unrequited amounts collected by the Depart- ment in accordance with laws and or regulations (excluding fines, penalties & forfeits).

112 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Tax receipts are recognised in the 2.2.7 Gifts, donations and sponsorships Short-term employee benefits that statement of financial performance (transfers received) give rise to a present legal or con- when received. All cash gifts, donations and sponsor- structive obligation are disclosed in ships are paid into the Provincial Rev- the disclosure notes to the financial 2.2.2 Sales of goods and services other enue Fund and recorded as revenue in statements. These amounts are not than capital assets the statement of financial performance recognised in the statement of finan- The proceeds received from the sale of when received. Amounts receivable at cial performance. goods and/or the provision of services is the reporting date are disclosed in the recognised in the statement of financial disclosure notes to the financial state- 3.1.2 Long-term employee performance when the cash is received. ments. benefits All in-kind gifts, donations and 3.1.2.1 Termination benefits 2.2.3 Fines, penalties & forfeits sponsorships are disclosed at fair val- Termination benefits such as sever- Fines, penalties & forfeits are compul- ue in the annexures to the financial ance packages are recognised as an sory unrequited amounts which were statements. expense in the statement of financial imposed by a court or quasi-judicial performance as a transfer (to house- body and collected by the Department. 3. Expenditure holds) when the final authorisation for Revenue arising from fines, penalties 3.1 Compensation of employees payment is effected on the system (by and forfeits is recognised in the state- Salaries and comprise payments to no later than 31 March of each year). ment of financial performance when employees. Salaries and wages are the cash is received. recognised as an expense in the state- 3.1.2.2 Post employment retirement benefits ment of financial performance when The Department provides retirement 2.2.4 Interest, dividends and rent on the final authorisation for payment is benefits (pension benefits) for certain of land effected on the system (by no later its employees through a defined benefit Interest, dividends and rent on land is than 31 March of each year). Capital- plan for government employees. These recognised in the statement of financial ised compensation forms part of the benefits are funded by both employer performance when the cash is received. expenditure for capital assets in the and employee contributions. Employer statement of financial performance1 . contributions to the fund are expensed 2.2.5 Sale of capital assets All other payments are classified when the payment to the fund is effected The proceeds received on sale of capi- as current expense. on the system (by no later than 31 tal assets are recognised in the state- Social contributions include the March of each year). No provision is ment of financial performance when employer’s contribution to social in- made for retirement benefits in the fi- the cash is received. surance schemes paid on behalf of the nancial statements of the Department. employee. Social contributions are Any potential liabilities are disclosed in 2.2.6 Financial transactions in assets and recognised as an expense in the state- the financial statements of the Nation- liabilities ment of financial performance when al/Provincial Revenue Fund and not in Repayments of loans and advances the payment is effected on the system. the financial statements of the employer previously extended to employees and Department. public corporations for policy purpos- 3.1.1 Short term employee benefits The Department provides medical es are recognised as revenue in the Short term employee benefits com- benefits for certain of its employees. statement of financial performance on prise of leave entitlements (including Employer contributions to the medical receipt of the funds. capped leave), thirteenth cheques and funds are expensed when the payment Cheques issued in previous ac- performance bonuses. The cost of to the fund is effected on the system (by counting periods that expire before be- short-term employee benefits is ex- no later than 31 March of each year). ing banked are recognised as revenue pensed as salaries and wages in the in the statement of financial perform- statement of financial performance 3.2 Goods and services ance when the cheque becomes stale. when the final authorisation for pay- Payments made for goods and/or When the cheque is reissued the payment is effected on the system (by no services are recognised as an expense ment is made from Revenue. later than 31 March of each year). in the statement of financial perform-

113 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements Accounting Policies for the year ended 31 March 2007

ance when the final authorisation for Unauthorised expenditure ap- in the statement of financial position payment is effected on the system (by proved with funding is recognised in at cost. no later than 31 March of each year). the statement of financial performance For the purposes of the cash flow The expense is classified as capital if when the unauthorised expenditure is statement, cash and cash equivalents the goods and services were used for approved and the related funds are re- comprise cash on hand, deposits held, a capital project or an asset of R5000 ceived. Where the amount is approved other short-term highly liquid invest- or more is purchased. All assets cost- without funding it is recognised as ex- ments and bank overdrafts. ing less than R5000 will also be re- penditure, subject to availability of flected under goods and services. savings, in the statement of financial 4.2 Prepayments and advances performance on the date of approval. Amounts prepaid or advanced are rec- 3.3 Interest and rent on land ognised in the statement of financial Interest and rental payments are rec- 3.6 Fruitless and wasteful position when the payments are made. ognised as an expense in the state- expenditure ment of financial performance when Fruitless and wasteful expenditure is 4.3 Receivables the payment is effected on the system recognised as an asset in the state- Receivables included in the statement (by no later than 31 March of each ment of financial position until such of financial position arise from cash year). This item excludes rental for the time as the expenditure is recovered payments made that are recoverable use of buildings or other fixed struc- from the responsible person or written from another party. tures. If it is not possible to distinguish off as irrecoverable in the statement of Revenue receivable not yet collect- between payment for the use of land financial performance. ed is included in the disclosure notes. and the fixed structures on it, the Amounts that are potentially irrecov- whole amount should be recorded un- 3.7 Irregular expenditure erable are included in the disclosure der goods and services. Irregular expenditure is recognised as notes. expenditure in the statement of finan- 3.4 Financial transactions in cial performance. If the expenditure is 4.4 Investments assets and liabilities not condoned by the relevant authority Capitalised investments are shown at Debts are written off when identified it is treated as an asset until it is re- cost in the statement of financial posi- as irrecoverable. Debts written-off are covered or written off as irrecovera- tion. Any cash flows such as dividends limited to the amount of savings and/ ble. received or proceeds from the sale of or underspending of appropriated the investment are recognised in the funds. The write off occurs at year-end 3.8 Transfers and subsidies statement of financial performance or when funds are available. No provi- Transfers and subsidies are recognised when the cash is received. sion is made for irrecoverable as an expense when the final authori- Investments are tested for an im- amounts but amounts are disclosed as sation for payment is effected on the pairment loss whenever events or a disclosure note. system (by no later than 31 March of changes in circumstances indicate that All other losses are recognised each year). the investment may be impaired. Any when authorisation has been granted impairment loss is included in disclo- for the recognition thereof. 3.9 Expenditure for capital assets sure note 24 Payments made for capital assets are 3.5 Unauthorised expenditure recognised as an expense in the state- 4.5 Loans When discovered unauthorised ex- ment of financial performance when Loans are recognised in the statement penditure is recognised as an asset in the final authorisation for payment is of financial position at the nominal the statement of financial position until effected on the system (by no later amount when cash is paid to the bene- such time as the expenditure is either than 31 March of each year).. ficiary. Loan balances are reduced approved by the relevant authority, re- when cash repayments are received covered from the responsible person 4. Assets from the beneficiary. Amounts that are or written off as irrecoverable in the 4.1 Cash and cash equivalents potentially irrecoverable are included statement of financial performance. Cash and cash equivalents are carried in disclosure note 24.

114 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

4.6 Inventory disclosed in the annexures and disclo- are included in the disclosure notes. Inventories purchased during the fi- sure notes to the financial statements. nancial year are disclosed at cost in 6. Net Assets the notes. 5.3 Accruals 6.1 Capitalisation reserve Accruals represent goods/services that The capitalisation reserve comprises 4.7 Capital assets have been received, but where no in- of financial assets and/or liabilities A capital asset is recorded on receipt voice has been received from the sup- originating in a prior reporting period of the item at cost. Cost of an asset is plier at the reporting date, or where an but which are recognised in the state- defined as the total cost of acquisi- invoice has been received but final au- ment of financial position for the first tion. Where the cost cannot be deter- thorisation for payment has not been time in the current reporting period. mined accurately, the capital asset effected on the system. Amounts are transferred to the Na- may be stated at fair value. Where fair Accruals are not recognised in the tional/Provincial Revenue Fund on value cannot be determined, the capi- statement of financial position as a lia- disposal, repayment or recovery of tal asset is included in the asset regis- bility or as expenditure in the state- such amounts. ter at R1. ment of financial performance but are Projects (of construction/develop- included in the disclosure notes. 6.2 Recoverable revenue ment) running over more than one fi- Amounts are recognised as recovera- nancial year relating to assets, are 5.4 Contingent liabilities ble revenue when a payment made in only capitalised as assets on comple- A contingent liability is a possible obli- a previous financial year becomes re- tion of the project and at the total cost gation that arises from past events and coverable from a debtor in the current incurred over the duration of the whose existence will be confirmed only financial year. project. by the occurrence or non-occurrence Disclosure Notes 25 and 26 re- of one or more uncertain future events flect the total movement in the asset not wholly within the control of the 7. Related party transactions register for the current financial year. Department; or Related parties are Departments that control or significantly influence enti- A contingent liability is a present ties in making financial and operating 5. Liabilities obligation that arises from past events 5.1 Payables but is not recognised because: decisions. Specific information with Recognised payables mainly comprise • It is not probable that an outflow of regards to related party transactions of amounts owing to other govern- resources embodying economic is included in the disclosure notes. mental entities. These payables are benefits or service potential will be recognised at historical cost in the required to settle the obligation; or 8. Key management statement of financial position. • The amount of the obligation can- personnel not be measured with sufficient re- Key management personnel are those 5.2 Lease commitments liability. persons having the authority and re- Lease commitments represent sponsibility for planning, directing and amounts owing from the reporting Contingent liabilities are included in controlling the activities of the De- date to the end of the lease contract. the disclosure notes. partment. These commitments are not recog- Compensation paid to key man- nised in the statement of financial po- 5.5 Commitments agement personnel including their sition as a liability or as expenditure Commitments represent goods/servic- family members where relevant, is in- in the statement of financial perform- es that have been approved and/or cluded in the disclosure notes. ance but are included in the disclo- contracted, but where no delivery has sure notes. taken place at the reporting date. Operating and finance lease com- Commitments are not recognised 1. This accounting policy is only relevant where mitments are expensed when the pay- in the statement of financial position the Department elects to capitalise the compensa- ments are made. Assets acquired in as a liability or as expenditure in the tion paid to employees involved on capital terms of finance lease agreements are statement of financial performance but projects.

115 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements

Appropriation Statement for the year ended 31 March 2007

Appropriation per programme 2006/07 2005/06 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropria- Funds Appropria- Expenditure as % of Appropria- expendi- tion tion final appro- tion ture priation R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 1. Administration Current payment 23,489 (809) (1,224) 21,456 21,181 275 98.7% 16,470 16,459 Transfers and subsidies 13 - - 13 7 6 53.8% 90 73 Payment for capital assets 800 809 - 1,609 1,609 - 100% 393 392

2. Economic Participation Current payment 16,013 (2,529) - 13,484 13,461 23 99.8% 12,042 12,034 Transfers and subsidies 30,809 2,501 500 33,810 32,308 1,502 95.6% 21,981 21,968 Payment for capital assets 150 28 - 178 150 28 84.3% 83 83

3. Fair Business Environment Current payment 9,176 (526) (500) 8,150 8,143 7 99.9% 8,281 8,022 Transfers and subsidies 1,754 400 - 2,154 1,903 251 88.3% 692 683 Payment for capital assets 100 126 - 226 226 - 100% 42 52

4. Economic Sector Development Current payment 16,464 (3,544) 662 13,582 13,574 8 99.9% 8,579 8,559 Transfers and subsidies 36,811 3,535 - 40,346 39,694 652 98.4% 35,933 35,922 Payment for capital assets 100 9 - 109 109 - 100% 12 12

5. Tourism Current payment 11,575 (623) 560 11,512 11,503 9 99.9% 6,859 6,803 Transfers and subsidies 31,247 330 - 31,577 31,175 402 98.7% 30,912 30,909 Payment for capital assets 160 293 - 453 453 - 100% 36 35

6. Theft and Losses Current payment - - 2 2 2 - 100% - -

Subtotal 178,661 - - 178,661 175,498 3,163 98.2% 142,405 142,006

TOTAL 178,661 - - 178,661 175,498 3,163 98.2% 142,405 142,006

Reconciliation with Statement of Financial Performance Add: Departmental receipts 6,565 628

Actual amounts per Statements of Financial Performance (Total revenue) 185,226 143,033

Actual amounts per Statements of Financial Performance (Total expenditure) 175,498 142,006

116 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Appropriation Statement for the year ended 31 March 2007

Appropriation per economic classification 2006/07 2005/06 Adjusted Shifting Virement Final Actual Variance Expenditure Final Actual Appropria- of Funds Appropria- Expenditure as % of Appropria- expendi- tion tion final appro- tion ture priation R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments Compensation of employees 36,099 (5,016) (596) 30,487 30,372 115 99.6% 27,189 27,084 Goods and services 40,618 (3,062) 94 37,650 37,443 207 99.5% 25,020 24,771 Financial transactions in assets and liabilities - 47 2 49 49 - 100% 22 22

Transfers and subsidies Provinces and municipalities 526 (3) - 523 510 13 97.5% 1,972 1,918 Departmental agencies and accounts 37,181 2,160 - 39,341 39,341 - 100% 51,010 51,010 Universities and technikons 2,480 170 - 2,650 2,650 - 100% 300 300 Public corporations and private enterprises 31,600 1,500 500 33,600 32,100 1,500 95.5% 20,880 20,880 Non-profit institutions 28,847 2,935 - 31,782 30,482 1,300 95.9% 15,446 15,446 Households - 4 - 4 4 - 100% - -

Payments for capital assets Machinery and equipment 1,310 1,237 - 2,547 2,519 28 98.9% 566 565 Software and other intangible assets - 28 - 28 28 - 100% - 10

Total 178,661 - - 178,661 175,498 3,163 98.2% 142,405 142,006

117 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements

Detail per programme 1 - Administration for the year ended 31 March 2007 2006/07 2005/06 Programme per Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual subprogramme Appropria- Funds Appropria- Expenditure as % of Appropria- expendi- tion tion final appro- tion ture priation R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 1.1 Management: Administration Current payment 5,299 (182) - 5,117 5,117 - 100% 4,468 4,465 Transfers and subsidies 2 - - 2 2 - 100% 59 56 Payment for capital assets - 42 - 42 42 - 100% 232 231

1.2 Corporate Affairs Current payment 11,275 262 - 11,537 11,534 3 100% 8,322 8,314 Transfers and subsidies 10 - - 10 4 6 40% 25 15 Payment for capital assets 775 594 - 1,369 1,369 - 100% 154 154

1.3 Delivery Enabling Services Current payment 6,915 (889) (1,224) 4,802 4,530 272 94.3% 3,680 3,680 Transfers and subsidies 1 - - 1 1 - 100% 6 2 Payment for capital assets 25 173 - 198 198 - 100% 7 7

TOTAL 24,302 - (1,224) 23,078 22,797 281 98.8% 16,953 16,924

2006/07 2005/06 Economic Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual classification Appropria- Funds Appropria- Expenditure as % of Appropria- expendi- tion tion final appro- tion ture priation R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payment Compensation of employees 12,044 (876) (96) 11,072 10,971 101 99.1% 9,306 9,298 Goods and services 11,445 47 (1,128) 10,364 10,190 174 98.3% 7,156 7,153 Financial transactions in assets and liabilities - 20 - 20 20 - 100% 8 8

Transfers and subsidies to: Provinces and municipalities 13 - - 13 7 6 53.8% 40 23 Non-profit institutions ------50 50

Payment for capital assets Machinery and equipment 800 809 - 1,609 1,609 - 100% 393 392

Total 24,302 - (1,224) 23,078 22,797 281 98.8% 16,953 16,924

118 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Detail per programme 2 - Economic Participation for the year ended 31 March 2007 2006/07 2005/06 Programme per Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual subprogramme Appropria- Funds Appropria- Expenditure as % of Appropria- expendi- tion tion final appro- tion ture priation R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 2.1 Management: Economic Development Current payment 2,441 (746) - 1,695 1,679 16 99.1% 1,186 1,184 Transfers and subsidies 2 3 - 5 4 1 80% 7 2 Payment for capital assets 20 3 - 23 22 1 95.7% 23 24

2.2 Enterprise Development Current payment 6,719 (547) - 6,172 6,167 5 99.9% 6,946 6,946 Transfers and subsidies 22,826 497 - 23,323 21,823 1,500 93.6% 16,862 16,859 Payment for capital assets 50 21 - 71 72 (1) 101.4% 33 33

2.3 Local Economic Development Current payment 5,288 (1,603) - 3,685 3,684 1 100% 1,858 1,852 Transfers and subsidies 7,981 2,000 500 10,481 10,480 1 100% 4,009 4,004 Payment for capital assets 55 4 - 59 48 11 81.4% (1) -

2.4 Economic Empowerment Current payment 1,565 367 - 1,932 1,931 1 99.9% 2,052 2,052 Transfers and subsidies - 1 - 1 1 - 100% 1,103 1,102 Payment for capital assets 25 - - 25 8 17 32% 28 27

TOTAL 46,972 - 500 47,472 45,919 1,553 96.7% 34,106 34,085

2006/07 2005/06 Economic Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual classification Appropria- Funds Appropria- Expenditure as % of Appropria- expendi- tion tion final appro- tion ture priation R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payment Compensation of employees 7,694 (1,217) - 6,477 6,471 6 99.9% 7,001 6,998 Goods and services 8,319 (1,336) - 6,983 6,966 17 99.8% 5,034 5,029 Financial transactions in assets and liabilities - 24 - 24 24 - 100% 7 7

Transfers and subsidies to: Provinces and municipalities 9 (3) - 6 4 2 66.7% 1,231 1,217 Departmental agencies and accounts 500 1,000 - 1,500 1,500 - 100% - - Public corporations and private enterprises 29,800 1,500 500 31,800 30,300 1,500 95.3% 19,900 19,900 Non-profit institutions 500 - - 500 500 - 100% 850 850

119 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements

Continued: Detail per programme 2 - Economic Participation for the year ended 31 March 2007

Payment for capital assets Machinery and equipment 150 28 - 178 150 28 84.3% 83 84

Total 46,972 - 500 47,472 45,919 1,553 96.7% 34,106 34,085

Detail per programme 3 - Fair Business Environment for the year ended 31 March 2007

2006/07 2005/06 Programme per Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual subprogramme Appropria- Funds Appropria- Expenditure as % of Appropria- expendi- tion tion final appro- tion ture priation R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 3.1 Management: Fair Bussiness Environment Current payment 320 (241) (72) 7 5 2 71.4% - -

3.2 Consumer Protector Current payment 4,404 652 - 5,056 5,055 1 100% 4,576 4,397 Transfers and subsidies 1 401 - 402 401 1 99.8% 7 5 Payment for capital assets 50 (4) - 46 46 - 100% 17 17

3.3 Western Cape Liquor Board Current payment 4,452 (937) (428) 3,087 3,083 4 99.9% 3,705 3,625 Transfers and subsidies 1,753 (1) - 1,752 1,502 250 85.7% 685 678 Payment for capital assets 50 130 - 180 180 - 100% 25 35

TOTAL 11,030 - (500) 10,530 10,272 258 97.5% 9,015 8,757

120 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

2006/07 2005/06 Economic Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual classification Appropria- Funds Appropria- Expenditure as % of Appropria- expendi- tion tion final appro- tion ture priation R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payment Compensation of employees 5,380 (585) (500) 4,295 4,290 5 99.9% 4,599 4,537 Goods and services 3,796 59 - 3,855 3,853 2 99.9% 3,676 3,479 Financial transactions in assets and liabilities ------6 6

Transfers and subsidies to: Provinces and municipalities 4 - - 4 3 1 75% 20 11 Non-profit institutions 1,750 400 - 2,150 1,900 250 88.4% 672 672

Payment for capital assets Machinery & equipment 100 126 - 226 226 - 100% 42 42 Software and other intangible assets ------10

Total 11,030 - (500) 10,530 10,272 258 97.5% 9,015 8,757

Detail per programme 4 - Economic Sector Development for the year ended 31 March 2007

2006/07 2005/06 Programme per Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual subprogramme Appropria- Funds Appropria- Expenditure as % of Appropria- expendi- tion tion final appro- tion ture priation R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 4.1 Management: Economic Sector Development Current payment 2,422 (578) - 1,844 1,839 5 99.7% 1,679 1,677 Transfers and subsidies 2 - - 2 1 1 50% 6 3 Payment for capital assets - 66 - 66 66 - 100% 12 12

4.2 Industry Development Current payment 9,179 (2,901) 662 6,940 6.937 3 100% 3,796 3,781 Transfers and subsidies 24,877 3,075 - 27,952 27,301 651 97.7% 26,421 26,417 Payment for capital assets 50 (33) - 17 17 - 100% - -

4.3 Strategic Sector Support Current payment 3,963 4 - 3,967 3,967 - 100% 2,226 2,223 Transfers and subsidies 2,001 - - 2,001 2,001 - 100% 806 802 Payment for capital assets 50 (24) - 26 26 - 100% - -

121 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements

Continued: Detail per programme 4 - Economic Sector Development for the year ended 31 March 2007

2006/07 2005/06 Programme per Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual subprogramme Appropria- Funds Appropria- Expenditure as % of Appropria- expendi- tion tion final appro- tion ture priation R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 4.4 WESGRO Current payment 900 (69) - 831 831 - 100% 878 878 Transfers and subsidies 9,931 460 - 10,391 10,391 - 100% 8,700 8,700

TOTAL 53,375 - 662 54,037 53,377 660 98.8% 44,524 44,493

2006/07 2005/06 Economic Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual classification Appropria- Funds Appropria- Expenditure as % of Appropria- expendi- tion tion final appro- tion ture priation R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payment Compensation of employees 5,799 (1,037) - 4,762 4,759 3 99.9% 2,930 2,915 Goods and services 10,665 (2,510) 662 8,817 8,812 5 99.9% 5,649 5,644 Financial transactions in assets and liabilities - 3 - 3 3 - 100% - -

Transfers and subsidies to: Provinces and municipalities 5 - - 5 3 2 60% 19 8 Departmental agencies and accounts 9,931 860 - 10,791 10,791 - 100% 24,500 24,500 Universities & technikons 2,000 - - 2,000 2,000 - 100% - - Non-profit institutions 24,875 2,675 - 27,550 26,900 650 97.6% 11,414 11,414

Payment for capital assets Machinery and equipment 100 9 - 109 109 - 100% 12 12

Total 53,375 - 662 54,037 53,377 660 98.8% 44,524 44,493

122 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Detail per programme 5 - Tourism for the year ended 31 March 2007 2006/07 2005/06 Programme per Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual subprogramme Appropria- Funds Appropria- Expenditure as % of Appropria- expendi- tion tion final appro- tion ture priation R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 5.1 Management: Toursim Current payment 1,675 (493) - 1,182 1,182 - 100% 645 645 Transfers and subsidies 1 - - 1 - 1 0% 2 1 Payment for capital assets 60 46 - 106 106 - 100% - -

5.2 Tourism Industry Development Current payment 2,337 (428) - 1,909 1,908 1 99.9% 360 360 Transfers and subsidies 881 (150) - 731 331 400 45.3% 1 1 Payment for capital assets 50 (50) - - - - - 20 20

5.3 Tourism Strategic Implementation Current payment 6,663 251 560 7,474 7,466 8 99.9% 4,854 4,798 Transfers and subsidies 8,365 480 - 8,845 8,844 1 100% 5,059 5,057 Payment for capital assets 50 297 - 347 347 - 100% 16 15

5.4 DMO Current payment 900 47 - 947 947 - 100% 1,000 1,000 Transfers and subsidies 22,000 - - 22,000 22,000 - 100% 25,850 25,850

TOTAL 42,982 - 560 43,542 43,131 4 11 99.1% 37,807 37,747

2006/07 2005/06 Economic Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual classification Appropria- Funds Appropria- Expenditure as % of Appropria- expendi- tion tion final appro- tion ture priation R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payment Compensation of employees 5,182 (1,301) - 3,881 3,881 - 100% 3,353 3,336 Goods and services 6,393 678 560 7,631 7,622 9 99.9% 3,505 3,466 Financial transactions in assets and liabilities ------1 1

Transfers and subsidies to: Provinces and municipalities 495 - - 495 493 2 99.6% 662 659 Departmental agencies and accounts 26,750 300 - 27,050 27,050 - 100% 26,510 26,510 Universities & technikons 480 170 - 650 650 - 100% 300 300 Public corporations and private enterprises 1,800 - - 1,800 1,800 - 100% 980 980

Non-profit institutions 1,722 (140) - 1,582 1,182 400 74.7% 2,460 2,460

123 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements

Continued: Detail per programme 5 - Tourism for the year ended 31 March 2007

2006/07 2005/06 Programme per Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual subprogramme Appropria- Funds Appropria- Expenditure as % of Appropria- expendi- tion tion final appro- tion ture priation R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Payment for capital assets Machinery and equipment 160 265 - 425 425 - 100% 36 35 Software and other intangible assets - 28 - 28 28 - 100% - -

Total 42,982 - 560 43,542 43,131 4 11 99.1% 37,807 37,747

Detail per programme 6 - Theft and Losses for the year ended 31 March 2007 2006/07 2005/06 Programme per Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual subprogramme Appropria- Funds Appropria- Expenditure as % of Appropria- expendi- tion tion final appro- tion ture priation R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 6.1 Theft and Losses Current payment - - 2 2 2 - 100% - -

TOTAL - - 2 2 2 - 100% - -

Financial transactions in assets and liabilities - - 2 2 2 - 100% - -

Total - - 2 2 2 - 100% - -

124 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Notes to the appropriation statement for the year ended 31 March 2007

1. Detail of transfers and subsidies as per Appropriation Act (after Virement): Detail of these transactions can be viewed in note 6 (Transfers and subsidies) and Annexure 1 (A-O) to the Annual Financial Statements.

2. Detail of specifically and exclusively appropriated amounts voted (after Virement): Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.

3. Detail on financial transactions in assets and liabilities Detail of these transactions per programme can be viewed in note 5 (Financial transactions in assets and liabilities) to the Annual Fi- nancial Statements.

4. Explanations of material variances from Amounts Voted (after Virement):

4.1 Per Programme Final Appropriation Actual Expenditure Variance R’000 Variance as a % of Final Appropriation R,000 R,000 R,000 %

Administration 23,078 22,797 281 1 %

The saving on the expenditure was for the MEDS project.

Economic Participation 47,472 45,919 1,553 3%

The saving on the expenditure was for the transfer payment to The Fidentia Group for the Siyabulela Project

Fair Business Environment 10,530 10,272 258 2 %

The saving on the expenditure was for the transfer payment to WIETA

Economic Sector Development 54,037 53,377 660 1 %

The saving on the expenditure was for the transfer payments to the Rooibos Council and the Pilot Organic Village

Tourism 43,542 43,131 411 1 %

The saving on the expenditure was for the transfer payments to the Membership Quality Assurance project

4.2 Per Economic classification 2006/07 2005/06 R’000 R’000 Current payment: Compensation of employees 115 105 Goods and services 207 249

Transfers and subsidies: Provinces and municipalities 13 54 Public corporations and private enterprises 1,500 - Non-profit institutions 1,300 -

Payments for capital assets: Machinery and equipment 28 1 Software and other intangible assets - (10)

125 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements

4.3 Additional Notes The Department has undergone changes to its structure during the 2006/2007 financial year and the following sub-programme com- paratives have shifted to other programmes in 2006/2007:

4.3.1 The sub-programmes 4.1, 4.2 and 4.3 in 2005/06 combined to form sub-programme 3.3 in the comparative figures (R4,415) for 2006/07

4.3.2 The sub-programme 4.3 in 2005/06 has become the sub-programme 3.2 in the comparative figures (R4,600) for 2006/07

4.3.3 The sub-programmes 3.1 and 5.1 in 2005/06 combined to form sub-programme 4.1 in the comparative figures (R1,697) for 2006/07

4.3.4 The sub-programmes 5.2, 5.3 and 5.4 in 2005/06 combined to form sub-programme 4.2 in the comparative figures (R30,217) for 2006/07

4.3.5 The sub-programmes 3.2 and 5.1 in 2005/06 combined to form sub-programme 4.3 in the comparative figures (R3,032) for 2006/07

4.3.6 The sub-programme 3.3 in 2005/06 has now become the sub-programme 4.4 in the comparative figures (R9,578) for 2006/07

4.3.7 The sub-programme 5.1 in 2005/06 has now become the sub-programme 5.1 in the comparative figures (R647) for 2006/07

4.3.8 The sub-programmes 4.5 and 5.5 in 2005/06 combined to form sub-programme 5.2 in the comparative figures (R381) for 2006/07

4.3.9 The sub-programme 5.5 in 2005/06 has now become the sub-programme 5.3 in the comparative figures (R9,929) for 2006/07

4.3.10 The sub-programme 5.6 in 2005/06 has now become the sub-programme 5.4 in the comparative figures (R26,850) for 2006/07

126 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Statement of Financial Performance for the year ended 31 March 2007

NOTE 2006/07 2005/06 R’000 R’000 REVENUE Annual appropriation 1 178,661 142,405 Departmental revenue 2 6,565 628 TOTAL REVENUE 185,226 143,033

EXPENDITURE

Current expenditure Compensation of employees 3 30,372 27,084 Goods and services 4 37,443 24,771 Financial transactions in assets and liabilities 5 49 22 Total current expenditure 67,864 51,877

Transfers and subsidies 6 105,087 89,554

Expenditure for capital assets Machinery and equipment 7 2,519 565 Software and other intangible assets 7 28 10 Total expenditure for capital assets 2,547 575

TOTAL EXPENDITURE 175,498 142,006

SURPLUS/(DEFICIT) 9,728 1,027

SURPLUS/(DEFICIT) FOR THE YEAR 9,728 1,027

Reconciliation of Surplus/(Deficit) for the year Voted Funds 12 3,163 399 Departmental Revenue 13 6,565 628

SURPLUS/(DEFICIT) FOR THE YEAR 9,728 1,027

127 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements

Statement of Financial Position for the year ended 31 March 2007

NOTE 2006/07 2005/06 R’000 R’000 ASSETS Current assets 3,440 559 Cash and cash equivalents 8 3,000 313 Prepayments and advances 9 379 19 Receivables 10 61 227

Non-current assets 142,000 142,000 Investments 11 142,000 142,000

TOTAL ASSETS 145,440 142,559

LIABILITIES

Current liabilities 3,440 559 Voted funds to be surrendered to the Revenue Fund 12 3,163 399 Departmental revenue to be surrendered to the Revenue Fund 13 263 160 Payables 14 14

TOTAL LIABILITIES 3,440 599

NET ASSETS 142,000 142,000

Represented by: Capitalisation reserve 142,000 142,000

TOTAL 142,000 142,000

128 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Statement of Changes in Net Assets for the year ended 31 March 2007

NOTE 2006/07 2005/06 R’000 R’000 CAPITALISATION RESERVES

Opening balance 142,000 142,000

Closing balance 142,000 142,000

TOTAL 142,000 142,000

Cashflow Statement for the year ended 31 March 2007

NOTE 2006/07 2005/06 R’000 R’000 CASH FLOWS FROM OPERATING ACTIVITIES Receipts 189,826 147,033 Annual appropriated funds received 1.1 178,661 142,405 Departmental revenue received 11,165 4,628

Net (increase)/decrease in working capital (180) 4 Surrendered to Revenue Fund (11,461) (4,814) Current payments (67,864) (51,877) Transfers and subsidies paid (105,087) (89,554) Net cash flow available from operating activities 15 5,234 792

CASH FLOWS FROM INVESTING ACTIVITIES Payments for capital assets (2,547) (575) (Increase)/decrease in investments - (142,000) Net cash flows from investing activities (2,547) (142,575)

CASH FLOWS FROM FINANCING ACTIVITIES Increase/(decrease) in net assets - 142,000 Net cash flows from financing activities - 142,000

Net increase/(decrease) in cash and cash equivalents 2,687 217 Cash and cash equivalents at the beginning of the period 313 96

CASH AND CASH EQUIVALENTS AT END OF PERIOD 16 3,000 313

129 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements

Notes to the Annual Financial Statements for the year ended 31 March 2007

1. ANNUAL APPROPRIATION 1.1 Annual Appropriation

Final appropriation Actual funds received Funds not requested Appropriation /not received received R’000 R’000 R’000 R’000 Administration 23,078 23,078 - 16,953 Economic Participation 47,472 47,472 - 34,106 Fair Business Environment 10,530 10,530 - 13,142 Economic Sector Development 54,037 54,037 - 11,380 Tourism 43,542 43,542 - 66,824 Theft and Losses 2 2 - - Total 178,661 178,661 - 142,405

2. DEPARTMENTAL REVENUE TO BE SURRENDERED TO REVENUE FUND

Note 2006/07 2005/06 Tax revenue 4,218 4,297 Sales of goods and services other than capital assets 2.1 337 239 Interest, dividends and rent on land 2.2 2 2 Financial transactions in assets and liabilities 2.3 6,608 90 Total revenue collected 11,165 4,628 Less: Departmental Revenue Budgeted 13 4,600 4,000 Departmental revenue collected 6,565 628

2.1 Sales of goods and services other than capital assets Sales of goods and services produced by the Department 329 239 Administrative fees 323 234 Other sales 65 Sales of scrap, waste and other used current goods 8- Total 337 239

2.2 Interest, dividends and rent on land and buildings Interest 22 Total 2 2

2.3 Financial transactions in assets and liabilities Nature of recovery Other Receipts including Recoverable Revenue 6,608 90 Total 6,608 90

130 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

3. COMPENSATION OF EMPLOYEES 3.1 Salaries and Wages Note 2006/07 2005/06 Basic salary 20,965 18,987 Performance award 461 367 Service Based 86 33 Compensative/circumstantial 749 290 Periodic payments 692 606 Other non-pensionable allowances 4,824 4,349 Total 27,777 24,632

3.2 Social contributions 3.2.1 Employer contributions Pension 1,837 1,705 Medical 753 743 Bargaining council 54 Total 2,595 2,452

Total compensation of employees 30,372 27,084 Average number of employees 235 161

4 GOODS AND SERVICES

Advertising 2,743 1,833 Attendance fees (including registration fees) 82 119 Bank charges and card fees 62 58 Bursaries (employees) 132 136 Communication 1,140 269 Computer services 38 295 Consultants, contractors and special services 19,723 12,703 Courier and delivery services 77 9 Entertainment 446 310 External audit fees 4.1 719 854 Equipment less than R5000 697 509 Inventory 4.2 1,027 806 Legal fees 658 Maintenance, repairs and running costs 1,168 120 Medical Services 11 Operating leases 2,386 2,374 Photographic services 13 82 Plant flowers and other decorations 69 35 Printing and publications 778 738 Professional bodies and membership fees -3 Resettlement costs 12 53

131 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements

Note 2006/07 2005/06 Subscriptions 63 48 Storage of furniture 77 Owned leasehold property expenditure 32 Translations and transcriptions 10 138 Transport provided as part of the Departmental activities 44 39 Travel and subsistence 4.3 3,118 2,189 Venues and facilities 1,871 789 Training & staff development 1,008 194

Total 37,443 24,771

4.1 External audit fees Regulatory audits 719 854 Total 719 854

4.2 Inventory Domestic consumables -4 Parts and other maintenance material 92 44 Stationery and printing 935 757 Medical supplies -1 Total 1,027 806

4.3 Travel and subsistence Local 2,951 1,729 Foreign 167 460 Total 3,118 2,189

5. FINANCIAL TRANSACTIONS IN ASSETS AND LIABILITIES

Material losses through criminal conduct 44 2 -Theft 5.3 44 2 Other material losses written off 5.1 3 20 Debts written off 5.2 2 - Total 49 22

5.1 Other material losses written off Nature of losses Vehicle damage 316 Stamp Duty -4 Total 3 20

5.2 Debts written off Nature of debts written off Bad debts 2- Total 2 -

132 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

5.3 Detail of theft Note 2006/07 2005/06 Detail of theft Office Equipment 44 2 Total 44 2

6. TRANSFERS AND SUBSIDIES

Provinces and municipalities Annex 1E 510 1,918 Departmental agencies and accounts Annex 1G 39,341 51,010 Universities and Technikons Annex 1H 2,650 300 Public corporations and private enterprises Annex 1I 32,100 20,880 Non-profit institutions Annex 1K 30,452 15,296 Households Annex 1L 4 - Gifts, donations and sponsorship made and remissions, refunds and payments made as an act of grace Annexure 1O 30 150

Total 105,087 89,554

7. EXPENDITURE FOR CAPITAL ASSETS

Machinery and equipment 25 2,519 565 Software and other intangible assets 28 10 Computer software 26 28 10 Total 2,547 575

8. CASH AND CASH EQUIVALENTS

Consolidated Paymaster General Account (1,444) (1,106) Cash on hand 22 Cash with commercial banks (Local) 4,442 1,417 Total 3,000 313

9. PREPAYMENTS AND ADVANCES

Travel and subsistence 519 Advances paid to other entities 374 - Total 379 19

133 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements

10. RECEIVABLES

2006/07 2005/06 Less than One to Older than Total Total Note one year three years three years Staff debtors 10.1 10 3 - 13 10 Other debtors 10.2 35 13 - 48 82 Intergovernmental receivables Annex 4 - - - - 135 Total 45 16 - 61 227

10.1 Staff Debtors Departmental Debt 14 16 Other (1) (6) Total 13 10

10.2 Other debtors Disallowance Damages and Losses 46 61 Sal Income Tax -21 Sal Tax Debt 2- Total 48 82

11. INVESTMENTS

Non-Current Shares and other equity Cape Town International Convention Centre 142,000 142,000

Total non-current 142,000 142,000

Analysis of non current investments Opening balance 142,000 142,000 Closing balance 142,000 142,000

12. VOTED FUNDS TO BE SURRENDERED TO THE REVENUE FUND

Opening balance 399 97 Transfer from Statement of Financial Performance 3,163 399 Paid during the year (399) (97) Closing balance 3,163 399

13. DEPARTMENTAL REVENUE TO BE SURRENDERED TO THE REVENUE FUND

Opening balance 160 249 Transfer from Statement of Financial Performance 6,565 628 Departmental revenue budgeted 2 4,600 4,000 Paid during the year (11,062) (4,717) Closing balance 263 160

134 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

14. PAYABLES – CURRENT

Description Note 30 Days 30+ Days 2006/07 total 2005/06 total Clearing accounts 14.1 14 - 14 -

- Total 14 - 14 -

14.1 Clearing accounts Note 2006/07 2005/06 Description Sal Pension Fund 3- Sal Income Tax 11 - Total 14 -

15. NET CASH FLOW AVAILABLE FROM OPERATING ACTIVITIES

Net surplus/(deficit) as per Statement of Financial Performance 9,728 1,027 Add back non cash/cash movements not deemed operating activities (4,494) (235) (Increase)/decrease in receivables – current 166 3 (Increase)/decrease in prepayments and advances (360) 1 Increase/(decrease) in payables – current 14 - Surrenders to Revenue Fund (11,461) (4,814) Expenditure on capital assets 2,547 575 Departmental Revenue Budgeted 4,600 4,000 Net cash flow generated by operating activities 5,234 792

16. RECONCILIATION OF CASH AND CASH EQUIVALENTS FOR CASH FLOW PURPOSES

Consolidated Paymaster General account (1,444) (1,106) Cash on hand 22 Cash with commercial banks (Local) 4,442 1,417 Total 3,000 313

135 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements

Disclosure Notes to the Annual Financial Statements for the year ended 31 March 2007

17. CONTINGENT LIABILITIES

Note 2006/07 2005/06 Liable to Nature Housing loan guarantees Employees Annex 3A 87 110 Other Departments (interDepartmental unconfirmed balances) Annex 5 264 314 Total 351 424

18. COMMITMENTS

Current expenditure Approved and contracted 7,685 2,809 7,685 2,809 Capital expenditure Approved and contracted 292 22 292 22 Total Commitments 7,977 2,831

19. ACCRUALS

2006/07 2005/06 Listed by economic classification 30 Days 30+ Days total total Goods and services 52 144 196 567 Machinery and equipment - 45 45 40 Total 52 189 241 607

Listed by programme level 2006/07 2005/06 Programme 1 80 158 Programme 2 21 215 Programme 3 101 38 Programme 4 16 110 Programme 5 23 86 241 607

Confirmed balances with other Departments Annex 5 - 11 - 1 1

20. EMPLOYEE BENEFITS

Leave entitlement 380 1,074 Thirteenth cheque 675 641 Performance awards 624 628 Capped leave commitments 617 741 Total 2,296 3,084

136 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

21. LEASE COMMITMENTS

21.1 Operating leases 2006/2007 Land Buildings and other Machinery and Total fixed structures equipment Not later than 1 year - - 475 475 Later than 1 year and not later than 5 years - - 346 346 Total present value of lease liabilities - - 821 821

2005/2006 Land Buildings and other Machinery and Total fixed structures equipment Not later than 1 year - - 483 483 Later than 1 year and not later than 5 years - - 817 817 Total present value of lease liabilities - - 1,300 1,300

22. RECEIVABLES FOR DEPARTMENTAL REVENUE

Note 2006/07 2005/06 Tax revenue (Liquor License Income) 573 52 Total 573 52

23. KEY MANAGEMENT PERSONNEL

No. of Individuals 2006/07 2005/06 Officials Level 15 to 16 2 715 640 Level 14 (incl CFO if at a lower level) 3 1,656 1,406

Total 2,371 2,046

24. PROVISIONS

2006/07 2005/06 Provisions Impairment of investments 77,000 -

Total 77,000 -

137 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements

25. TANGIBLE CAPITAL ASSETS

MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2007

Opening balance Current Year Additions Disposals Closing Balance Adjustments to prior year balances R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 3,327 (1,139) 2,519 (482) 4,225 Transport assets 1,139 (1,139) 482 (482) - Computer equipment 1,286 - 1,794 - 3,080 Furniture and office equipment 683 - 120 - 803 Other machinery and equipment 219 - 123 - 342

TOTAL TANGIBLE ASSETS 3,327 (1,139) 2,519 (482) 4,225

NOTE: In terms of a legal opinion, GMT is responsible for the GG vehicles and therefore the vehicles have been transferred to GMT. The vehicles are reflected in GMT’s asset register and annual financial statements.

25.1 ADDITIONS TO TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2007

Cash Non-cash (Capital Work in Received current, Total Progress current not paid (Paid costs) current year,,, received prior year) R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 2,519 - - - 2,519 Transport assets 482 - - - 482 Computer equipment 1,794 - - - 1,794 Furniture and office equipment 120 - - - 120 Other machinery and equipment 123 - - - 123

TOTAL 2,519 - - - 2,519

NOTE: The total value of assets exclude the value of any assets acquired through finance a finance lease.

138 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

25.2 DISPOSALS OF TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2007

Sold (Cash) Non-Cash Total Cost Cash Received Actual R’000 R’000 R’000 R’000 MACHINERY & EQUIPMENT 482 482 Transport assets 482 482

TOTAL 482 482

25.3 MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2006

Opening balance Additions Disposals Closing balance R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 2,792 565 (30) 3,327 Transport assets 1,139 - - 1,139 Computer equipment 956 330 - 1,286 Furniture and office equipment 595 113 (25) 683 Other machinery and equipment 102 122 (5) 219

TOTAL TANGIBLE ASSETS 2,792 565 (30) 3,327

26. INTANGIBLE CAPITAL ASSETS

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2007

Opening balance Current Year Additions Disposals Closing Balance Adjustments to prior year balances R’000 R’000 R’000 R’000 R’000 COMPUTER SOFTWARE 37 - 28 - 65

TOTAL INTANGIBLE ASSETS 37 - 28 - 65

26.1 ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2007

Cash Non-Cash (Development Received current Total work in progress – year, not paid current costs) (Paid current year,,, received prior year) R’000 R’000 R’000 R’000 R’000 COMPUTER SOFTWARE 28 - - - 28

TOTAL 28 - - - 28

26.2 MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2006

Opening balance Additions Disposals Closing balance R’000 R’000 R’000 R’000 COMPUTER SOFTWARE 27 10 - 37

TOTAL 27 10 - 37

139 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements

Annexures to the Annual Financial Statements for the year ended 31 March 2007

ANNEXURE 1E STATEMENT OF TRANSFERS PAID TO MUNICIPALITIES

NAME Of TRANSFER ALLOCATION TRANSFER SPENT 2005/06 MUNICIPALITY Adjusted Roll Overs Adjustments Total Available Actual Transfer % of Available Amount Amount spent % of available Appropriation Appropriation funds received by by municipality funds spent by Act Act Transferred municipality municipality R’000 R’000 R’000 R’000 R’000 % R’000 R’000 % R’000 Cape Winelands District Municipality 20 - - 20 20 100% - - - 200 Central Karoo District Municipality ------450 City of Cape Town ------200 Eden District Municipality ------200 Overberg District Municipality 180 - - 180 180 100% - - - 300 West Coast District Municipality 291 - - 291 291 100% - - - 500 RSCL: Cape Metropolitan 19 - - 19 19 100% - - - 68

510 - - 510 510 - - - 1,918

ANNEXURE 1G STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS

DEPARTMENT/ AGENCY/ ACCOUNT TRANSFER ALLOCATION TRANSFER 2005/06 Adjusted Roll Overs Adjustments Total Available Actual Transfer % of Available Appropriation Appropriation funds Act Act Transferred R’000 R’000 R’000 R’000 R’000 % R’000 WESGRO 9,000 - 1,891 10,891 10,891 100% 24,500 Western Cape Tourism Board 26,570 - 480 27,050 27,050 100% 26,510 SEDA (Small Enterprise Development Agency) - - 1,000 1,000 1,000 100% - Provincial Development Council - - 400 400 400 100% -

Total 35,570 - 3,771 39,341 39,341 51,010

140 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

ANNEXURE 1H STATEMENT OF TRANSFERS TO UNIVERSITIES AND TECHNIKONS

UNIVERSITY/TECHNIKON TRANSFER ALLOCATION TRANSFER 2005/06 Adjusted Roll Overs Adjustments Total Available Actual Transfer Amount not % of Available Appropriation Appropriation Transferred funds Act Act Transferred R’000 R’000 R’000 R’000 R’000 % R’000 Cape Peninsula University of Technology 550 - 2,000 2,550 2,550 - 100% 300 University of Western Cape 100 - - 100 100 - 100% - - --- Total 650 - 2,000 2,650 2,650 - 300

ANNEXURE 1I STATEMENT OF TRANSFERS TO PUBLIC CORPORATIONS AND PRIVATE ENTERPRISES

NAME OF PUBLIC TRANSFER ALLOCATION EXPENDITURE 2005/06 CORPORATION/PRIVATE Adjusted Roll Overs Adjustments Total Available Actual Transfer % of Available Capital Current Appropriation ENTERPRISE Appropriation funds Act Act Transferred R’000 R’000 R’000 R’000 R’000 % R’000 R’000 R’000 Public Corporations Transfers Airports Company SA ------900 CASIDRA (PTY) Ltd 20,100 - 2,500 22,600 22,600 100% - - 16,980 Council Science and Industry Research (CSIR) 5,000 2,500 - 7,500 7,500 100% - - 2,.000 Development Bank of SA 500 - 1,500 2,000 2,000 100% - - - Subtotal 25,600 2,500 4,000 32,100 32,100 - - 19,880

Private Enterprises Western Cape Business Opportunities Forum (WECBOF) ------400 Old Mutual Asset Management ------600

Subtotal ------1,000

Total 25,600 2,500 4,000 32,100 32,100 - - 20,880

141 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

Part 4: Annual Financial Statements

ANNEXURE 1K STATEMENT OF TRANSFERS TO NON-PROFIT INSTITUTIONS

NON-PROFIT INSTITUTIONS TRANSFER ALLOCATION EXPENDITURE 2005/06 Adjusted Roll Overs Adjustments Total Available Actual Transfer % of Available Appropriation Appropriation funds Act Act Transferred R’000 R’000 R’000 R’000 R’000 % R’000 Transfers Breedekloof Wine and Tourism 109 - - 109 109 100% 99 Cape Africa Platform 600 - - 600 600 100% 500 Cape Craft and Design Institute 2,120 - - 2,120 2,120 100% 350 Cape Film and TV Initiative ------400 Cape Film Commission Development Fund ------2,500 Cape Oil and Gas Supply Initiative 300 - 3,000 3,300 3,300 100% 1,500 Library Business Corners 250 - - 250 250 100% 250 South African Tourism Services Association ------350 South African National Parks 250 - - 250 250 100% 250 South Cape Business Centre ------300 Meerkat ------100 Calling the Cape 3,870 - - 3,870 3,870 100% 1,250 Cape Clothing Cluster 1,000 - 400 1,400 1,400 100% 1,039 Cape Flats Development Association ------70 Cape Information and Technology Initiative (CITI) 2,420 - 1,000 3,420 3,420 100% 1,000 Cape Tooling Initative ------500 Cape Town Boatbuilding and Technology Initiative 350 - 200 550 550 100% 250 Clotex 1,000 - 900 1,900 1,900 100% 875 District Six Museum Foundation 500 - - 500 500 100% 500 FASfacts 1,000 - - 1,000 1,000 100% 600 Furntech - - 175 175 175 100% 250 Grootbos Green Futures Foundation ------70 Lwandle Migrant Museum ------80 Overberg Regional Tourism Organisation ------50 Robben Island Museum ------80 Saldanha Bay Tourism Organisation ------100 South African Labour Research Institute (SALRI) ------600 South African Mariculture Institute ------400 The Business Place eKapa ------500 Western Cape Nature Conservation Board ------150 Wine Industry Ethical Trading Association (WIETA) 250 - - 250 - 0% 72 CPUT 50 - - 50 50 100% 261 Airports Company SA 120 - - 120 120 100% - AISA 650 - 305 955 955 100% - Arts & Media Access Centre 300 - - 300 300 100% - Association for Responsible Alcohol - - 500 500 500 100% - Cape Film Commission 3,500 - 1,700 3,670 3,670 100% -

142 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Continued: Annexure 1K - Statement of transfers to non-profit institutions

Cape Initiative in Materials & Manufacturing 500 - - 500 500 100% - Cape Ship Repair 1,400 - - 1,400 1,400 100% - Cape Town Fashion Council - - 600 600 600 100% - Cape Town Partnerships - - 500 500 500 100% - Fusion Outsourcing - - 100 100 100 100% - Performing Arts Network of SA (PANSA) - - 185 185 185 100% - South Cape College 100 - - 100 100 100% - Swisscontract SA 250 - - 250 250 100% - VANSA - - 180 180 180 100% - West Coast Business Development and Tourism - - 23 23 23 100% - Western Cape Advice Office Association 400 - - 400 400 100% - Western Cape Musicians Association - - 175 175 175 100% - Western Cape Tooling Initiative 1,000 - - 1,000 1,000 100% - Pilot Organic Village 250 - - 250 - 0% - Rooibos Council 400 - - 400 - 0% - SATSA 400 - - 400 - 0% - Fidentia Group 1,500 - - 1,500 - 0% - Total 24,869 - 8,413 33,282 30,482 15,296

ANNEXURE 1L STATEMENT OF TRANSFERS TO HOUSEHOLDS

HOUSEHOLDS TRANSFER ALLOCATION EXPENDITURE 2005/06 Adjusted Roll Overs Adjustments Total Available Actual Transfer % of Available Appropriation Appropriation funds Act Act Transferred R’000 R’000 R’000 R’000 R’000 % R’000 Transfers MA Nyepha - - 4 4 4 100% - Total - - 4 4 4 -

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ANNEXURE 1O STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE AND REMMISSIONS, REFUNDS AND PAYMENTS MADE AS AN ACT OF GRACE FOR THE YEAR ENDED 31 MARCH 2007

NATURE OF GIFT OR SPONSORSHIP 2006/07 2005/06 (group major catergories but list material items including name of organisation) R’000 R’000 Paid in cash Department of the Premier (Mali project – Timbuktu) -50 The Micro Enterprise Network of NGO’s (MENGOS) - 100 Manenburg Education and Development 30 -

TOTAL 30 150

ANNEXURE 3A STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2007 – LOCAL

GUARANTOR INSTITUTION Guarantee in Original Opening Guarantees Guarantees % of Available Current Guaranteed Realised losses respect of guaranteed balance draw downs repayments/ funds revaluations interest for year not recoverable Housing capital amount 1 April 2006 during the year cancelled/ Transferred ended 31 March reduced/released 2007 during the year R’000 R’000 R’000 R’000 R’000 % R’000 R’000 R’000 ABSA 87 87 - - - 87 - Nedbank 93 23 - 23 - - -

TOTAL 180 110 - 23 - 87 -

ANNEXURE 4 INTER-GOVERNMENT RECEIVABLES

GOVERNMENT ENTITY Confirmed balance outstanding Unconfirmed balance outstanding Total 31/03/2007 31/03/2006 31/03/2007 31/03/2006 31/03/2007 31/03/2006 R’000 R’000 R’000 R’000 R’000 R’000

DEPARTMENT Local Government and Housing - - - 4 - 4 Cultural Affairs and Sport - - - 122 - 122 Free State Health -- -9-9

TOTAL - - - 135 - 135

144 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

ANNEXURE 5 INTER-GOVERNMENT PAYABLES

GOVERNMENT ENTITY Confirmed balance outstanding Unconfirmed balance outstanding Total 31/03/2007 31/03/2006 31/03/2007 31/03/2006 31/03/2007 31/03/2006 R’000 R’000 R’000 R’000 R’000 R’000

DEPARTMENTS Current Transport and Public Works - - 235 237 235 237 Justice and Constitutional Development - - - 6 - 6 Tourism, Environment and Economic Affairs - - - 71 - 71 Local Government and Housing - 11 - - - 11 Environmental Affairs and Development Planning - - 28 - 28 - Premier -- 1-1-

Total - 11 264 314 264 325

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146 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Part 5 Human Resource Management

147 Part 5: Human Resource Management

1. Service Delivery Table 1.1 – Main services provided and standards

Main services Actual customers Potential customers Desired standard of service Actual achievement against standards Liquor Regulation Direct beneficiaries: Potential applicants for new 90% of applicants considered 75% of applicants considered Processing of applications for new Liquor licence applicants licenses within 90 days within 180 days licences Indirect beneficiaries: SAPS

Office of the Consumer Protector Direct beneficiaries: Consumers within the Western 90% of applicants considered 75% of applicants considered Advise consumers and businesses Consumers and tourists visiting Cape Province within 90 days within 180 days and attend to consumer-related the Western Cape Resolution rate of settled com- Resolution rate of settled com- complaints with the aim of settling Indirect beneficiaries: plaints is 70% plaints is 65% the complaint Businesses

Table 1.2 – Consultation arrangements with customers Once the Service Delivery Charter encompassing all relevant service standards Departmental has been published and distributed for public consumption, it is envisaged that a Employee Customer Satisfaction Survey will be conducted to evaluate the Department’s Assistance progress against set service standards. Programme (EAP) Table 1.3 – Service delivery access strategy An evaluation report based on the outcomes of the Customer Satisfaction Survey will inform the Department on how best to improve access to certain services of- The Departmental Employee fered to the public. Strategies will be devised based on customer inputs/recom- Assistance programme (EAP), was mendations to better affect the SDIP of the Department. implemented on 01 July 2006. Table 1.4 – Service information tool QUERY: This process involved, amongst It is envisaged that a Customer Satisfaction Survey as well as a Citizen’s Report others, the sourcing and contracting will be utilised to gear up for improved service delivery. of a service provider, Independent Counselling and Advisory Services Table 1.5 – Complaints mechanism QUERY: Complaints mechanisms such as call centres and helpdesks would have to be ex- (ICAS). Several information sessions plored based on the findings of the SDIP. Adherence to set service standards will were conducted to inform all staff, be monitored and evaluated in relation to the complaints received. including managers, about the EAP. Staff members were given EAP brochures containing information about the services available as well as a wallet card.

148 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

2. Expenditure Table 2.1 – Personnel costs by programme, 2006/2007

Programme Total Personnel Training Professional & Personnel Average expenditure expenditure expenditure special services cost as a % personnel of total cost per expenditure employee R’000 R’000 R’000 R’000 R’000 R’000 Administration 22 799 10 971 891 3 482 48% 157 Economic Participation 45 919 6 471 15 3 714 14% 196 Fair Business Environment 10 272 4 290 51 2 208 42% 204 Economic Sector Development 53 377 4 759 62 6 681 9% 317 Tourism 43 131 3 881 70 3 639 9% 194 TOTAL 175 498 21 181 1089 19 724 12 ,1 214

Table 2.2 – Personnel costs by salary bands, 2006/2007

Salary bands Personnel % of total Average expenditure personnel cost personnel expenditure cost per employee R’000 Lower Skilled Levels 1-2) 107 0.35 54 Skilled (Levels 3-5) 3 352 11,1 56 Highly skilled production (Levels 6-8) 6 967 23,27 114 Highly skilled supervision (Levels 9-12) 14 576 48,4 211 Senior management (Levels 13-16) 4 438 14,8 403 630 2,10 19 TOTAL 30 153 100 857

The following tables provide a summary per programme (Table 2.3) and salary bands (Table 2.4), of expenditure incurred as a result of salaries, overtime, home owners allowance and medical assistance. In each case, the table provides an indication of the percentage of the personnel budget that was used for these items. Table 2.3 – Salaries, overtime, home owners’ allowance and medical assistance by programme, 2006/2007

Programme Salaries Overtime Home owners’ allowance Medical Assistance Amount Salaries as a Amount Overtime as a Amount HOA as a % Amount Medical assist- % of personnel % of personnel of personnel ance as % of cost cost cost personnel cost R’000 R’000 R’000 R’000 % R’000 R’000 R’000

Administration 7 624 25,4 20 0,06 73 0,24 311 1,03 Economic Participation 4 422 14,7 0 0 15 0,04 135 0,44 Tourism 2 729 9,07 0 0 9 0,02 92 0,30 Fair Business Environment 2 793 9,2 0 0 30 0,09 140 0,46 Economic Sector Development 3 116 10,4 0 0 13 0,04 80 0,27 TOTAL 20 684 69 20 0,06 140 0,46 758 2,5

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Table 2.4 – Salaries, overtime, home owners’ allowance and medical assistance by salary bands, 2006/2007

Salary bands Salaries Overtime Home owners’ allowance Medical Assistance Amount Salaries as a Amount Overtime as a Amount HOA as a % Amount Medical assist- % of personnel % of personnel of personnel ance as % of cost cost cost personnel cost R’000 R’000 R’000 R’000 % R’000 R’000 R’000 (Levels 1-2) 78 0,25 0 0 0 0 8 0,02 Skilled (Levels 3-5) 2 472 8,21 6 0,02 14 0,04 129 0,04 Highly skilled production (Levels 6-8) 5 288 17,6 8 0,03 75 0,25 241 0,80 Highly skilled supervision (Levels 9-12) 10 324 34,33 5 0,02 54 0,18 291 0,10 Senior management (Levels 13-16) 2 522 8,39 0 0 0 0 89 0,30 TOTAL 20 684 69 19 0,07 143 0,47 758 1,26

3. Employment and vacancies The following tables summarise the number of posts of the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment. This information is presented in terms of three key vari- ables, namely, programme (Table 3.1), salary band (Table 3.2) and critical occupations (Table 3.3). Departments have identified critical occupations that need to be monitored. Table 3.3 provides establishment and vacancy information for the key critical occupations of the Department. The vacancy rate reflects the percentage of posts that are not filled. Table 3.1 – Employment and vacancies by programme, 31 March 2007

Programme Number of Number of Vacancy Number of posts posts filled rate posts filled additional to establishment

Economic Participation 39 16 41 12 Economic Sector Development 57 24 42 4 Fair Business Environment 37 19 51 2 Corporate Affairs 104 54 52 4 TOTAL 237 113 48 22

150 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Table 3.2 – Employment and vacancies by salary bands, 31 March 2007

Salary band Number of Number of Vacancy Number of posts posts filled rate posts filled additional to establishment

Lower skilled (Levels 1-2) 2 2 100 1 Skilled (Levels 3-5) 52 31 60 10 Highly skilled production (Levels 6-8) 71 37 52 0 Highly skilled supervision (Levels 9-12) 96 36 38 11 Senior management (Levels 13-16) 16 7 44 0 TOTAL 237 113 48 22

Table 3.3 – Employment and vacancies by critical occupation, 31 March 2007

Critical occupations Number of Number of Vacancy Number of posts posts filled rate posts filled additional to establishment Communication 11 00 Sector specialists 18 2 16 0 Senior management 16 7 9 0 TOTAL 35 10 25 0

The information in each case reflects the situation as at 31 March 2007. For an indication of changes in staffing patterns over the year under review, please refer to section 0.5 of this report. 4. Job evaluation The Public Service Regulations, 1999 introduced job evaluation as a way of ensuring that work of equal value is remunerat- ed equally. Within a nationally determined framework, executing authorities may evaluate or re-evaluate any job in his or her organisation. In terms of the regulations all vacancies on salary levels 9 and higher must be evaluated before they are filled. This was complemented by a decision by the Minister for Public Service and Administration that all SMS jobs must be evaluated before 31 December 2002. The following table (Table 4.1) summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on the number of posts that were upgraded or downgraded.

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Table 4.1 – Job Evaluation, 1 April 2006 to 31 March 2007

Salary band Posts upgraded Posts downgraded Number of posts Number of jobs % of posts Number % of posts Number % of posts evaluated evaluated by evaluated evaluated salary bands Lower skilled (Levels 1-2) 2 0 0 0 0 0 0 Skilled (Levels 3-5) 52 29 56 28 97 0 0 Highly skilled production (Levels 6-8) 71 17 24 1 6 0 0 Highly skilled supervision (Levels 9-12) 96 35 36 1 3 0 0 Senior management Service Band A 12 4 33 4 100 0 0 Senior management Service Band B 3 1 33 0 0 0 0 Senior management Service Band C 1 0 0 0 0 0 0 Senior management Service Band D 0 0 0 0 0 0 0 TOTAL 237 86 36 34 40 0 0

The following table provides a summary of the number of employees whose salary positions were upgraded due to their posts being upgraded. The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the new posts and some of the posts upgraded could also be vacant.

Table 4.2 – Profile of employees whose salary positions were upgraded due to their posts being upgraded, 01 April 2006 to 31 March 2007

Beneficiaries African Asian Coloured White Total

Female 00000 Male 00000 TOTAL 00000 Employees with a disability 0

The following table summarises the number of cases where remuneration levels exceeded the grade determined by job evaluation. Reasons for the deviation are provided in each case.

Table 4.3 – Employees whose salary level exceed the grade determined by job evaluation, 01 April 2006 to 31 March 2007 (in terms of PSR 1.V.C.3)

Occupation Number of Job evaluation Remuneration Reason for employees level level deviation

Secretary 1 5 6 Personal notch Total number of employees whose salaries exceeded the level determined by job evaluation in 2006/2007 1 Percentage of total employment 100

Table 4.4 summarises the beneficiaries of the above in terms of race, gender, and disability.

152 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Table 4.4 – Profile of employees whose salary level exceed the grade determined by job evaluation, 01 April 2006 to 31 March 2007 (in terms of PSR 1.V.C.3)

Beneficiaries African Asian Coloured White Total

Female 00011 Male 00000 TOTAL 00011 Employees with a disability 0 Total Number of Employees whose salaries exceeded the grades determined by job evaluation in 2006/ 2007 One

5. Employment changes This section provides information on changes in employment over the financial year. Turnover rates provide an indication of trends in the employment profile of the Department. The following tables provide a summary of turnover rates by salary band (Table 5.1) and by critical occupations (Table 5.2). (These “critical occupations” should be the same as those listed in Table 3.3.) Table 5.1 – Annual turnover rates by salary band for the period 01 April 2006 to 31 March 2007

Salary band Number of Appointments Terminiations Transfer rate employees per and transfers and transfers band as on into the out of the 01 April 2006 Department Department Lower skilled (Levels 1-2) 2 0 2 100 Skilled (Levels 3-5) 59 68 70 55 Highly skilled production (Levels 6-8) 61 27 35 40 Highly skilled supervision (Levels 9-12) 69 39 61 56 Senior management Service Band A 71 256 Senior management Service Band B 2 0 0 100 Senior management Service Band C 2 0 0 100 Senior management Service Band D 0000 TOTAL 202 170 172 51

Table 5.2 – Annual turnover rates by critical occupation for the period 01 April 2006 to 31 March 2007

Salary band Number of Appointments Terminiations Transfer rate employees per and transfers and transfers band as on into the out of the 01 April 2006 Department Department

Communication officer 1000 Sector specialists 7000 Senior management 16000 TOTAL 24 0 0 0

Table 5.3 identifies the major reasons why staff left the Department.

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Table 5.3 – Reasons why staff are leaving the Department

Termniation type African Asian Coloured Number % of Total

Death 00 Resignation 27 15 Expiry of contract 137 78 Dismissal – operational changes 00 Dismissal – misconduct 00 Dismissal – inefficiency 00 Discharged due to ill-health 00 Retirement 00 Transfers to other public service Departments 10 5,7 Other 1 0,57 TOTAL 175 57 Total number of employees who left as a % of the total employment 74

Table 5.4 – Promotions by critical occupation

Occupation Employees as Promotion to Salary level Progressions Notch progres- at 01 April 2006 to another promotions as to another sions as a % of salary level % of employees notch within a employees by by occupation salary level occupation

Communication officer 1 0 0 0 0 Sector specialists 70000 Senior management 12 2 10 1 5 TOTAL 20 2 10 1 5

Table 5.5 – Promotions by salary band

Salary band Employees as Promotion to Salary bands Progressions Notch progres- at 01 April 2006 to another promotions as to another sions as a % of salary level % of employees notch within a employees by by salary level salary level salary band

Lower skilled (Levels 1-2) 2 0 0 0 0 Skilled (Levels 3-5) 59 6 10,16 2 3,4 Highly skilled production (Levels 6-8) 61 6 10 3 1,6 Highly skilled supervision (Levels 9-12) 69 1 1,4 8 1,4 Senior management (Levels 13-16) 11 0 0 1 9 TOTAL 202 13 6,4 13 6,4

154 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

6. Employment equity The tables in this section are based on the formats prescribed by the Employment Equity Act, 1998 (Act 55 of 1998). Table 6.1 – Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2007

Occupational cat- Male Female Total ergories (SASCO) African Coloured Indian White African Coloured Indian White

Legislators, senior officials and managers 1 4 0 1 1 3 0 1 11 Professionals 0 1 0 0 2 2 0 0 5 Technicians and associate professionals 15 30 0 4 19 33 1 15 117 Clerks 12 13 0 0 13 29 0 1 68 Service and sales workers 0 0 0 0 0 0 0 0 0 Skilled agriculture & fishery workers 0 0 0 0 0 0 0 0 0 Craft and related trades workers 0 0 0 0 0 0 0 0 0 Plant and machine operators and assemblers 0 0 0 0 0 0 0 0 0 Elementary occupations 0 0 0 0 0 0 0 0 0 TOTAL 28 49 0 5 35 67 1 17 202 Employees with disabilities 1 1

Table 6.2 – Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2007

Occupational Male Female Total bands African Coloured Indian White African Coloured Indian White

Top management 0 1 0 0 0 0 0 1 2 Senior management 8 3 0 1 1 3 0 0 16 Professionally qualified and experienced specialists and mid-management 5 17 0 4 17 110963

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Continued: Table 6.2 – Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2007

Occupational Male Female Total bands African Coloured Indian White African Coloured Indian White

Skilled technical & academically qualified workers, junior management, supervisors, foreman and superintendents 5 12 0 0 7 26 1 8 59 Semi-skilled and discretionary decision making 9 12 0 0 16 27 0 0 64 Unskilled and defined decision making 100001002 TOTAL 28 45 0 5 41 68 1 18 206

Table 6.3 – Recruitment for the period 01 April 2006 to 31 March 2007

Occupational Male Female Total bands African Coloured Indian White African Coloured Indian White

Top management 000000000 Senior management 100000001 Professionally qualified and experienced specialists and mid- management 3702660327 Skilled technical and academically qualified workers, junior management, supervisors, foreman & superintendents 3400440217 Semi-skilled and discretionary decision making 570011110034 Unskilled and defined decision making 000000000

TOTAL 12 18 0 2 21 21 0 5 79 Employees with disabilities 100000000

156 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Table 6.4 – Promotions for the period 01 April 2006 to 31 March 2007

Occupational Male Female Total bands African Coloured Indian White African Coloured Indian White

Top management 0 0 0 0 0 0 0 0 0 Senior management 0 0 0 0 0 0 0 0 0 Professionally qualified and experienced specialists and mid- management 0 1 0 0 1 2 0 0 4 Skilled technical & academically qualified workers, junior management, supervisors, foreman and superintendents 1 2 0 0 0 3 0 0 6 Semi-skilled and discretionary decision making 0 0 0 0 2 1 0 0 3 Unskilled and defined decision making 0 0 0 0 0 0 0 0 0 TOTAL 1 1 0 0 1 6 0 0 9 Employees with disabilities 0 0 0 0 0 0 0 0 0

Table 6.5 – Terminations for the period 01 April 2006 to 31 March 2007

Occupational Male Female Total bands African Coloured Indian White African Coloured Indian White

Top management 0 1 0 0 0 0 0 0 1 Senior management 1 0 0 0 3 0 0 0 4 Professionally qualified & experienced specialists and mid -management 7 12 0 2 20 12 0 5 58 Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents 1 8 0 0 4 12 2 4 31 Semi-skilled and discretionary decision making 13 12 0 0 18 25 0 1 69

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Continued: Table 6.5 – Terminations for the period 01 April 2006 to 31 March 2007

Occupational Male Female Total bands African Coloured Indian White African Coloured Indian White

Unskilled and defined decision making 200000002 TOTAL 24 22 0 2 45 49 2 10 165 Employees with disabilities 0 0 0 0 0 0 0 0 0

Table 6.6 – Disciplinary action for the period 01 April 2006 to 31 March 2007

Occupational Male Female Total bands African Coloured Indian White African Coloured Indian White

Disciplinary action 130002017

Table 6.7 – Skills development for the period 01 April 2006 to 31 March 2007

Occupational Male Female Total bands African Coloured Indian White African Coloured Indian White

Legislators, senior officials & managers 2401640320 Professionals 00000100010 Technicians and associate professionals 25 64 0 2 38 146 0 37 312 Clerks 43 35 0 0 57 88 0 10 233 Service and sales workers 000000000 Skilled agriculture & fishery workers 000000000 Craft and related trades workers 000000000 Plant and machine operators and assemblers 010000001 Elementary occupations 000000000 TOTAL 70 104 0 3 101 248 0 50 576 Employees with disabilities

158 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

7. Performance rewards To encourage good performance, the Department has granted the following performance rewards during the year under review. The information is presented in terms of race, gender, and disability (Table 6.1), salary bands (Table 6.2) and critical occupations (Table 6.3). Table 7.1 – Performance rewards by race, gender, and disability, 01 April 2006 to 31 March 2007

Beneficiary profile Cost Number of Total number of % of total Cost Average cost beneficiaries employees in within group R’000 per employee group R’000

African 00000 Male 0130 0 0 Female 41610307 Asian 00000 Male 00000 Female 1 2 50 32 32 Coloured 00000 Male 7 24 29 139 19 Female 14 43 33 191 13 White 00000 Male 0140 0 0 Female 3 3 100 41 13 Employees with a disability 0 0 0 0 0 TOTAL 29 115 25 408 87

Table 7.2 – Performance rewards by salary bands for personnel below senior management service, 01 April 2006 to 31 March 2007

Salary Bands Beneficiary profile Cost Number of number of % of total Total cost Average cost Total cost as a beneficiaries employees within salary (R’000) per employee % of the total bands R’000 personnel expenditure

Lower skilled (Levels 1-2) 0 2 0 0 0 0 Skilled (Levels 3-5) 7 31 23 24 3 0,08 Highly skilled production (Levels 6-8) 12 71 17 97 8 0,32 Highly skilled supervision (Levels 9-12) 10 96 10 281 28 0,92 TOTAL 29 200 15 404 39 1,34

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Table 7.3 – Performance rewards by critical occupations, 01 April 2006 to 31 March 2007

Critical occupations Beneficiary profile Cost Number of Number of % of total Total cost Average cost beneficiaries employees within R’000 per employee occupation R’000

Communication officer 0 0 0 0 0 Sector specialists 00000 Senior management 00000

TOTAL 0 0 0 0 0

Table 7.4 – Performance related rewards (cash bonus), by salary band, for senior management service

Salary Bands Beneficiary profile Total cost Average cost Total cost as a Number of number of % of total R’000 per employee % of the total beneficiaries employees within band R’000 personnel expenditure

Band A 0 0 0 0 0 0 Band B 0 0 0 0 0 0 Band C 0 0 0 0 0 0 Band D 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0

8. Foreign workers The tables below summarise the employment of foreign nationals in the Department in terms of salary bands and by major occupation. The tables also summarise changes in the total number of foreign workers in each salary band and by each major occupation. Table 8.1 – Foreign workers, 01 April 2006 to 31 March 2007, by salary band

Salary Band 01 April 2006 31 March 2007 Change Number % of total Number Number % of total Number

Lower skilled (Levels 1-2) 0 0 0 0 0 0 Skilled (Levels 3-5) 0 0 0 0 0 0 Highly skilled production (Levels 6-8) 0 0 0 0 0 0 Highly skilled supervision (Levels 9-12) 1 100 1 100 0 0 Senior management (Levels 13-16) 0 0 0 0 0 0 TOTAL 1 100 1 100 0 0

160 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Table 8.2 – Foreign worker, 01 April 2006 to 31 March 2007, by major occupation

Major Occupation 01 April 2006 31 March 2007 Change Number % of total Number Number % of total Number

Query Table to be completed 0 0 0 0 0 0 Table to be completed 0 0 0 0 0 0 Table to be completed 0 0 0 0 0 0 Table to be completed 1 100 1 100 0 0 Table to be completed 0 0 0 0 0 0 TOTAL 1 100 1 100 0 0

9. Leave utilisation for the period 01 January 2006 to 31 December 2006 The Public Service Commission identified the need for careful monitoring of sick leave within the public service. The following tables provide an indication of the use of sick leave (Table 9.1) and disability leave (Table 9.2). In both cases, the estimated cost of the leave is also provided.

Table 9.1 – Sick leave, 01 January 2006 to 31 December 2006

Salary Bands Total days % days with Number of % of total Average Estimated medical employees employees days per cost certification using sick using sick % of the total leave leave R’000 Lower skilled (Levels 1-2) 24 8,3 2 100 12 1 Skilled (Levels 3-5) 173 29 50 68 3,5 0 Highly skilled production (Levels 6-8) 287 24,3 70 84 4,1 1 Highly skilled supervision (Levels 9-12) 254 0,40 53 49 5 5 Senior management (Levels 13-16) 11 36,3 4 45 3 6 TOTAL 749 24 179 65 4 13

Table 9.2 – Disability leave (temporary and permanent), 01 January 2006 to 31 December 2006

Salary Bands Total days % days with Number of % of total Average Estimated taken medical employees employees days per cost certification using disability using disability employee leave leave R’000 Lower skilled (Levels 1-2) 0 0 0 0 0 0 Skilled (Levels 3-5) 0 0 0 0 0 0 Highly skilled production (Levels 6-8) 0 0 0 0 0 0 Highly skilled supervision (Levels 9-12) 55 100 1 1 55 22 Senior management(Levels 13-16) 0 0 0 0 0 0 TOTAL 55 100 1 1 55 22

Table 9.3 summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service.

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Table 9.3 – Annual leave, 01 January 2006 to 31 December 2006

Major Occupation Total days Average per taken employee

Lower skilled (Levels 1-2) 33 17 Skilled (Levels 3-5) 554 11 Highly skilled production (Levels 6-8) 998 16,3 Highly skilled supervision (Levels 9-12) 938 15,3 Senior management (Levels 13-16) 225 25 TOTAL 2748 7

Table 9.4 – Capped leave, 01 January 2006 to 31 December 2006

Salary bands Total days of Average Average capped capped leave number of leave per em- taken days taken ployee as at 31 per employee December 2006 Lower skilled (Levels 1-2) 000 Skilled (Levels 3-5) 7715 Highly skilled production (Levels 6-8) 15 8 25 Highly skilled supervision (Levels 9-12) 15 8 34 Senior management (Levels 13-16) 45 11 19 TOTAL 82 24 37

Table 9.5 – Leave payouts for the period 01 April 2006 to 31 March 2007

Reason Total amount Number of Average employees payment per employee R’000 Leave payout for 2006/2007 due to non-utilisation of leave for the previous cycle 0 0 0 Capped leave payouts on termination of service for 2006/2007 0 0 0 Current leave payout on termination of service for 2006/2007 0 0 0 TOTAL 000

10. HIV and AIDS and health promotion programmes Table 10.1 – Steps taken to reduce the risk of occupational exposure

Units/categories of employees identified to be at high risk of contracting HIV and related diseases (if any) Key steps taken to reduce the risk Specific categories of staff were not identified. All staff should be regarded as being at a high risk of contracting HIV and related diseases. Display of posters, banners, pamphlets and brochures Distribution of condoms among staff Special advocacy arrangements designed for commemorative days VCT sessions

162 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Table 10.2 – Details of Health Promotion and HIV and AIDS Programmes (tick the applicable boxes and provide the required information)

Question Yes No Details if yes

1. Has the Department designated a member of the SMS to implement X External: The designated employee is Ms J Johnston the provisions contained in Part VIE of Chapter 1 of the Public Service Internal: The designate employee is Mr R Adams (Director) Regulations, 2001? If so, provide her/his name and position.

2. Does the Department have a dedicated unit or has it designated X Three staff members within the Directorate: HRM & SS is responsible for specific staff members to promote the health and wellbeing of your the promotion of this programme internally employees? If so, indicate the number of employees who are involved in Two staff members are responsible for promotion externally this task and the annual budget that is available for this purpose.

3. Has the Department introduced an Employee Assistance or Health X A service provider has been appointed to facilitate the Departmental Promotion Programme for your employees? If so, indicate the key Employee Assistance Programme. The EAP provides the following elements/services of this Programme. services: Professional support line eervices Life management services Face-to-face counselling services Managerial consultancy services Account consultancy services Communications consultancy services Monitoring, reporting, consultation and evaluation services

4. Has the Department established (a) committee(s) as contemplated in X The Department established a HRFU, which consists of 10 members. The Part VIE.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, budget for this purpose forms part of the operational budget of the please provide the names of the members of the committee and the directorate and therefore cannot be separately reflected stakeholder(s) that they represent.

5. Has the Department reviewed its employment policies and practices X Provincial policies are used and reviewed by the Department of the to ensure that these do not unfairly discriminate against employees on Premier the basis of their HIV status? If so, list the employment policies/practices so reviewed.

6. Has the Department introduced measures to protect HIV-positive X Display of posters, banners, pamphlets, and brochures as well as infor- employees or those perceived to be HIV-positive from discrimination? If mation sessions. Distribution of condoms amongst staff. so, list the key elements of these measures.

7. Does the Department encourage its employees to undergo Voluntary Voluntary Counselling and Testing was advocated. Approximately 100 X Counselling and Testing? If so, list the results that you have achieved. staff members went VCT.

8. Has the Department developed measures/indicators to monitor & X To be developed evaluate the impact of its health promotion programme? If so, list these measures/indicators.

11. Labour relations The following collective agreements were entered into with trade unions within the Department. Table 11.1 – Collective agreements, 01 April 2006 to 31 March 2007

Subject matter Date None None

If there are no collective agreements, then use the following table

Total collective agreements None

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The following table summarises the outcome of disciplinary hearings conducted within the Department for the year under review. Table 11.2 – Misconduct and disciplinary hearings finalised, 01 April 2006 to 31 March 2007

Outcomes of disciplinary hearings Number % of total

Correctional counselling 114 Verbal warning 342 Written warning 114 Final written warning 114 Suspended without pay 00 Fine 00 Demotion 00 Dismissal 114 Not guilty 00 Case withdrawn 00 TOTAL 7100

If there are no collective agreements, then use the following table

Disciplinary hearings – 2006/200 None

Table 11.3 – Types of misconduct addressed at disciplinary hearings

Type of misconduct Number % of total

Improper conduct 114 Poor work performance 342 Misuse of IT equipment 114 Absenteeism 114 Dishonesty 114 TOTAL 7100

Table 11.4 – Grievances lodged for the period 01 April 2006 to 31 March 2007

Number % of total

Number of grievances resolved 2 100 Number of grievances not resolved 00 TOTAL NUMBER OF GRIEVANCES LODGED 2100

Table 11.5 – Disputes lodged with Councils for the period 01 April 2006 to 31 March 2007

Number % of total

Number of disputes upheld 00 Number of disputes dismissed 00 TOTAL NUMBER OF DISPUTES LODGED 00

164 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Table 11.6 – Strike actions for the period 01 April 2006 to 31 March 2007

1. Total number of person working days lost

Total cost (R’000) of working days lost 0 Amount (R’000) recovered as a result of no work no pay 0

Table 11.7 – Precautionary suspensions for the period 01 April 2006 to 31 March 2007

Number of people suspended 1 Number of people whose suspension exceeded 30 days 1 Average number of days suspended 109 Cost (R’000) of suspensions 117

12. Skills development This section highlights the efforts of the Department with regard to skills development.

Table 12.1 – Training needs identified 01 April 2006 to 31 March 2007

Occupational categories Gender Number of Training needs identified at start of reporting period employees as Learnerships Skills program- Other forms Total at 01 April mes and other of training 2006 short courses

Legislators, senior officials and managers Female 6 0 4 0 4 Male 6 0 4 0 4 Professionals Female 3 0 2 0 2 Male 1 0 2 0 2 Technicians and associate professionals Female 68 0 64 0 64 Male 49 0 43 0 43 Clerks Female 43 0 31 0 31 Male 25 0 10 0 10 Service and sales workers Female 0 0 0 0 0 Male 0 0 0 0 0 Skilled agriculture and fishery workers Female 0 0 0 0 0 Male 0 0 0 0 0 Craft and related trades workers Female 0 0 0 0 0 Male 0 0 0 0 0 Plant and machine operators and assemblers Female 0 0 0 0 0 Male 1 0 1 0 1 Elementary occupations Female 0 0 0 0 0 Male 0 0 0 0 0 Subtotal Female 120 0 101 0 101 Male 82 0 60 0 60 202 0 161 0 161

165 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

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Table 12.2 – Training provided 01 April 2006 to 31 March 2007

Occupational categories Gender Number of Training provided within the reporting period employees as Learnerships Skills program- Other forms Total at 01 April mes and other of training 2006 short courses Legislators, senior officials and managers Female 6 0 13 0 13 Male 6 0 7 0 7 Professionals Female 3 0 10 0 10 Male 1 0 0 0 0 Technicians and associate professionals Female 68 0 221 0 221 Male 49 0 91 0 91 Clerks Female 43 0 154 1 155 Male 25 0 76 2 78

Service and sales workers Female 0 0 0 0 0 Male 0 0 0 0 0 Skilled agriculture and fishery workers Female 0 0 0 0 0 Male 0 0 0 0 0 Craft and related trades workers Female 0 0 0 0 0 Male 0 0 0 0 0 Plant and machine operators and assemblers Female 0 0 0 0 0 Male 1 0 1 0 1 Elementary occupations Female 0 0 0 0 0 Male 0 0 0 0 0 Subtotal Female 120 0 398 0 399 Male 82 0 175 0 177 202 0 573 3 576

Table 12.3 Departmental Internship Programme, 01 April 2006 to 31 March 2007

Level of Male Female Total Qualification African Coloured Indian White African Coloured Indian White

NQF level 7 100010002

NQF level 6 4200931019

NQF level 5 100010002

NQF level 4 1200520010

TOTAL 7 4 0 0 16 5 1 0 33

Employees with a disability 110000002

The Departmental Internship Programme was targeted to: • students who as a requirement must complete an internship, • unemployed graduates.

166 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Table 12.4 Bursary Programme, 01 April 2006 to 31 March 2007

Beneficiary Profile Level of qualification Academic level Number of Total number % of total NQF 8 NQF 7 NQF 6 NQF 5 NQF 4 First Second Third beneficiaries of employees within group qualification qualification qualification in group

African 6 6 3 9.5 0 4 2 0 0 2 3 1 Male 2 28 7.1 0 1 1 0 0 1 1 0 Female 4 35 11.4 1 3 1 0 0 1 2 1 Indian 0 1 0 0 0 0 0 0 0 0 0 Male 0 0 0 0 0 0 0 0 0 0 0 Female 0 1 0 0 0 0 0 0 0 0 0 Coloured 10 116 8.6 0 4 4 0 2 5 2 3 Male 4 49 8.2 0 1 1 0 2 3 0 1 Female 6 67 9 0 3 3 0 0 2 2 2 White 2 2 2 9.1 0 1 1 0 0 0 2 0 Male 0 5 0 0 0 0 0 0 0 0 0 Female 2 17 11.8 0 1 1 0 0 0 2 0 Employees with a disability 0 1 0 0 0 0 0 0 0 0 0 TOTAL 18 202 8.9 0 9 7 0 2 7 7 4

13. Injury on duty The following table provides basic information on injury on duty.

Table 13.1 – Injury on duty, 01 April 2006 to 31 March 2007

Nature of injury on duty Number % of total

Required basic medical attention only 00 Temporary total disablement 00 Permanent disablement 00

Fatal 00 TOTAL 00

167 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

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14. Utilisation of consultants

Table 14.1 – Report on consultant appointments using appropriated funds

Project title Total number of Duration: work Contract value consultants days in Rand that worked on the project

The publicity and advertisement for projects for the Department Economic Development and Tourism 11 22 Feb 2007 R202 065.60

Conduct an institutional review process to accelerate the implementation of economic development initiatives 7 1 March 2007- R1 140 000.00 31 July 2007

Recruitment of a service provider for the Tourism Blue Chip Investment Portfolio 7 Feb 2007- R438 900.00 Jan 2008

Project title Total individual Duration: work Contract value consultants days in Rand

Coordinate and implement the National Department of Trade and Industry’s small business summit cocktail function 12 Nov 2006 R190 000.00

Develop a mobile craft initiative, Craft Route and Tourism Linkage project October 2006- R700 000.00 June 2007

Develop a mobile craft initiative, Craft Route and Tourism Linkage October 2006 - R250 000.00 March 2007

Host the Design Indaba to develop the province’s profile as an innovative and creative region Nov 2006- R 750 000.00 March 2007

Recruitment of sector specific specialist (Resource Based Industries) for the implementation of the second round of the MEDS 1 Dec 2006 – R474 000.00 for a period of a year 1 Dec 2007

Request for expansion of approved bid EDT 022/05 Recruitment of a Chief Economist for the final round of phase one of the Dec 2006 R60 000.00 Micro- economic Development Strategy

Hosting a film and television market and the implementation of screenings 1 Dec 2006 R460 000.00

Develop and Manage the implementation of technical areas for the PLEK PLAN programme Dec 2006 R2019 800.00

Facilitate and implement the first phase of the creative streets initiative Dec 2006 R75 000.00

Recruitment of a consultant to develop a craft retail linkages projects for local crafters Dec 2006 R250 000.00

Develop an improved methodology and assess the feasibility of establishing a creative learning HUB to fast track and customize Dec 2006 - R250 000.00 training to fit the nature of the film and the creative industries May 2007

Review and revise the present preferential procurement policy of the Western Cape Provincial Government 9 Feb 2007 R387 600.00

Facilitate and implement the first phase of the creative streets initiative March 2007 R125 000.00

Skills Development Intervention that strengthens the impact of the National Skills Fund Allocation to this and the oil/gas sector 15 March 2007- R350 000.00 31 July 2007

Development Intervention to increase the number of skilled artisans for the ship repair and the oil/gas sector 25 March 2007- R200 000.00 9 Oct 2007

Chief Economist on the MEDS Programme for the fourth phase, as well as a general advisor to the Department 1 March 2007- R359 000.00 Dec 2007

Recruitment of four oversight committee members for the fourth round of the MEDS process 12 March 2007- R153 900.00 31 Oct 2007

168 ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007

Table 14.2 – Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs)

Project title Percentage Percentage Number of con- ownership by management sultants from HDI HDI groups by HDI groups groups that work on the project

Approval for expansion of approved sourcelink tender WCON 0443 for the BBBE empowerment strategy 80% 80%

Various advice offices as multiple source suppliers of a consumer advice and assistance service in towns and townships N/A N/A throughout the province

Develop a mobile craft initiative, craft route and tourism linkage 100%

Coordinate and implement the National Department of Trade and Industry’s small business summit cocktail function 100% 100%

Host the Design Indaba to develop the province’s profile as an innovative and creative region 100%

Recruitment of a sector specific specialist (Resource Based Industries) for the implementation of the 2nd round of the MEDS for a 0% 0% period of a year

Hosting a film and television market and the implementation of screenings 21.4%

Develop and manage the implementation of technical areas for the PLEK PLAN programme Government owned

Request for expansion of approved bid EDT 022/05. Recruitment of a Chief Economist for the final round of the phase one of 0% 0% the MEDS

Recruitment of a consultant to develop a craft retail linkages projects for local crafters Section 21 company

Review and revise the PPPP of the Western Cape Provincial Government 53.4%

The publicity and advertisement for projects for DEDAT 42%

Develop an improved methodology and assess the feasibility of establishing a creative learning HUB to fast track and customize 0% training to fit the nature of the film and the creative industries

Development intervention to increase the number of skilled artisans for the ship repair and the oil/gas sector 99%

Facilitate and implement the first phase of the creative streets initiative 100%

Skills development intervention that strengthens the impact of the National Skills Fund Allocation to this and the oil/gas sector 99%

Conduct an institutional review process to accelerate the implementation of economic development initiatives 57.25%

Chief Economist on the MEDS programme for the fourth phase, as well as general advisor to the department: Dave Kaplin 0% 0% 0%

Chief Economist on the MEDS programme for the fourth phase, as well as general advisor to the department: Michael L Morris 0% 0% 0%

Chief Economist on the MEDS programme for the fourth phase, as well as general advisor to the department: Reza Daniels 100% 100% 100%

Recruitment of a service provider for the Tourism Blue Chip Investment Portfolio 100% 100%

169 DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM: VOTE 12

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15. Organogram: 31 March 2007

Vacant Vacant

Labeeqah Schuurman Chief Director: Tourism Acting Director:Tourism Director: Tourism Growth Participation

Vacant

Dr Hildegarde Fast Jo-Ann Johnston Nigel Gwynne-Evans Acting Head of Chief Director: Economic Director: Workforce Director: Industry Department Sector Development Development Development & Innovation

Vacant

Tembeka Mhlekwa Monwa Luxande Fayruz Dharsey Chief Director: Economic Director: Economic Director: Enterprise Director: Local Participation Empowerment Development Economic Development

Prof. Dave Kaplan Chief Economist Division: Fair Business Environment

Antoinette Van Dalen Raybin Windvogel Raybin Windvogel Acting Chairperson: Director: Liquor Acting Director: Office Liquor Board Regulation of the Consumer Protector

Division: Corporate Support Services

Mymoena Abrahams Romeo Adams Cheryl Phillips Director: Financial Director: Human Resource Acting Director: Management Management & Support Strategic Coordination Services

170 2006/2007 Annual Report 2006/2007 Department of Economic Development and Tourism Annual Report

www.capegateway.gov.za Department ofEconomicDevelopment

PR29/2007 & ISBN: 0-621-37047-9