The Budgetary Review and Recommendation Report of the Portfolio Committee on Water and Environmental Affairs, dated 15 October 2013
The Portfolio Committee on Water and Environmental Affairs (the Portfolio Committee), having considered the performance and submission to the National Treasury for the medium-term period of the Department of Environmental Affairs (the Department), reports as follows:
1.Introduction
1.1.Mandate of Portfolio Committee
To enhance the principles of a developmental state through passing legislation and to facilitate public participation, monitoring and oversight functions over the legislative processes relating to the environment and water; confer with relevant governmental and civil society organs on the impact of environmental and water legislation and related matters, enhance and develop the capacity of committee members in the exercise of effective oversight over the Executive Authority. The mandate of the Portfolio Committee is to:
· Consider legislation referred to it;
· Conduct oversight of any organ of state and constitutional institutions falling within its portfolio;
· Consider international agreements; and
· Consider the budgets, strategic plans, Annual Performance Plans and related performance reports of the departments and entities falling within its portfolio.
1.2.Core functions of the Department and its Entities
The Department is mandated to ensure the protection of the environment and conservation of natural resources, balanced with sustainable and climate variance resilient development and the equitable distribution of the benefits derived from natural resources. In its quest for better use and engagement of the natural environment, the Department is guided by its constitutional mandate, as contained in section 24 of the Constitution of the Republic of South Africa of 1996.
The Department fulfils its mandate through formulating, coordinating and monitoring the implementation of national environmental policies, programmes and legislation with the additional support from entities such as iSimangaliso Wetland Park (iSimangaliso), the South African National Botanical Institute (SANBI), South African National Parks (SANParks), and the South African Weather Services (SAWS). As the national partner in a concurrent function, the Department leads the environmental sector by setting the policy and legislative framework and the norms and standards required for environmentally sustainable development. This role is evident through the large numbers of policy and legislative instruments initiated and processed by the Department.
1.3.Purpose of the Budgetary Review and Recommendation Report
The Money Bills Procedures and Related Matters Amendment Act No 9 of 2009 (the Money Bills Act) sets out the process that allows Parliament to make recommendations to the Minister of Finance to amend the budget of a national Department. In October of each year, portfolio committees must compile the Budgetary Review and Recommendation Reports (BRRR) that assess service delivery performance given available resources; evaluate the effective and efficient use and forward allocation of resources; and may make recommendations on forward use of resources. The BRRR also sources documents for the Standing/Select Committees on Appropriations/Finance when they make recommendations to the Houses of Parliament on the Medium-Term Budget Policy Statement (MTPBS). The comprehensive review and analysis of the previous financial year’s performance, as well as performance to date, form part of this process.
1.4.Consideration and assessment of service delivery performance in relation to available resources of the Department and its entities
On 15 October 2013, the Portfolio Committee engaged the Director-General, Chief Operating Officer (COO), Chief Financial Officer (CFO) and relevant Executive Managers of the Department and its Entities on the Annual Report and any supplementary documentation. The purpose of the interaction is for the Portfolio Committee to undertake its constitutional oversight mandate of complying with the Money Bills Act, which is to oversee budget expenditure by government departments, so as to influence budget prioritisation by amending (if necessary) the national budget.
Section 5 of the Act requires the National Assembly, through its committees, to annually assess the performance of each national department, with reference to the following:
· The medium term estimates of expenditure of a department, including its strategic priorities and measurable objectives. These are tabled in the National Assembly together with the national budget;
· The Department’s strategic plans and annual performance plans;
· The expenditure report of a Department published by the National Treasury in terms of section 32 of the Public Finance Management Act;
· The Department’s annual reports and financial statements;
· The Committee on Public Accounts’ reports relating to a Department; and
· Report of the Portfolio Committee on Water and Environmental Affairs: The Consideration of the 2013/14 Strategic Plans, Annual Performance Plans and Budget Allocation of the Department of Environmental Affairs (DEA), iSimangaliso Wetland Park Authority (iSimangaliso), The South African National Botanical Institute (SANBI), South African National Parks (SANParks) and the South African Weather Services (SAWS); and the Indicative Findings of the Auditor-General regarding the interim audit conducted on DEA’s interim financial statements for 2012/13, dated 21 May 2013; and
· Any other information requested by or presented to Parliament.
The Portfolio Committee noted the critical factors informing the strategic and business plans, section 32 reports, annual report and financial statements of the Department and its Entities. In addition, the Portfolio Committee focused on the way in which the Department aligned and accomplished its work over the medium term in relation to its constitutional imperative, legislative mandate, the Medium-term Strategic Framework of Government, National Development Plan 2030, Outcome 10 Delivery Agreements, obligations and commitments stemming from multilateral and bilateral environmental agreements and other international instruments such as the Millennium Development Declaration and priorities emanating from the 2012 State of the Nation Address.
1.5.Compliance by the Department and its Entities
The Portfolio Committee noted with appreciation that the annual report of the Department and its entities were tabled in full compliance with the relevant prescripts and prior to the stipulated time of 30 September 2013. The reports of the Department and entities were tabled on 31 August 2013.
2.Policy Areas
The priority policy areas for the Department over the medium term included providing support to local government in the areas of air quality management, waste management, biodiversity management, coastal planning and open space planning; strengthening compliance and enforcement activities; drawing linkages between climate change, the green economy and sustainable development; aligning governance systems with the new outcomes approach, paying particular attention to ensuring that environmental assets and natural resources are valued, protected and continually enhanced (Outcome 10); and focusing on key national and international engagements.
The Department’s programmes are aligned with government’s Outcomes approach, especially having environmental assets and natural resources that are well protected and continually enhanced (Outcome 10) and the related outputs; reduced greenhouse gas emissions, climate-change impacts and improved atmospheric quality (Output 2); sustainable environmental engagement (Output 3); and protected biodiversity (Output 4). The Department leads the implementation of the Outcome 10 delivery agreement and the monitoring of and reporting on the targets set.
2.1.Key policy focus areas
To facilitate and work toward implementation of the key policy focus areas, the departmental approach is to thematically incorporate these areas into six categories – legal, authorisation and compliance enforcement; oceans and coastal management; climate change; biodiversity and conservation; environmental sector programmes and projects (employment creation) and sector services; and environmental awareness and international relations.
Within thelegal, authorisation and compliance enforcementcomponent of its work, the Department noted an increase in voluntary compliance with environmental legislation by industry as a result of departmental compliance and enforcements efforts. The Department also recognised the importance of the country’s ability to effectively combat environmental transgressions by increasing the capacity of the environmental inspectorate. Another critical aspect of the work of the Department is to ensure that land and infrastructure development takes place in an environmentally responsible and sustainable manner. The instruments devised by the Department to improve efficiency and effectiveness of the environmental impact assessment system across the county include the development of strategic spatial tools such as Environmental Management Frameworks (EMFs) for certain areas identified as critical development areas with increasing development pressure and some level of ecological or environmental sensitivity; the development and refinement of regulations to legislate environmentally sound development; the development of strategic instruments such as Strategic Environmental Assessments (SEAs) and Strategic Environmental Management Framework for emerging areas key to the South African economy and transitioning to a low carbon economy, such as renewable energy applications; and the development of a web-based registry of applications – the National Environmental Authorisations System (NEAS). To promote behaviour that contributes to sustainable development, interventions are undertaken through the national Environmental Management: Waste Act (2008), particularly boosting recycling efforts through the implementation of the Integrated Waste Management Strategy (IWMS), and through the National Environmental Management: Air Quality Act (2004) aimed at addressing the monitoring and enforcement of ambient air quality standards and emissions to air licensing.
Within theoceans and coastal managementcomponent of its work, the Department understands the importance of sustaining economic, social and ecological services provided by the marine and coastal spaces. For the financial year under review, the Department developed a draft oceans policy to ensure that there is a clear framework for the management, protection and conservation of South Africa’s coastal and oceans environment. The Integrated Coastal Management Act (2009) also presents the Department an opportunity to proactively reduce incidences of illegal developments and trends of inappropriate/unsustainable land use planning and practices along the coast, thus reducing potential future loss of life and property due to storms and other ocean dynamics. The Department, in conjunction with their partners will continue to maintain South Africa’s research presence in Antarctica; the Prince Edward Islands and the Southern Oceans. Focus will be on recapitalisation of the state of the art polar vessel, the Agulhas II, which shall be used for research and relief voyages to Antarctica, Gough and Prince Edward Islands as well as for High Seas research. The National Programme of Action (NPOA) on land based sources of pollution will be implemented to abate and or reverse impacts of pollution on the oceans and coastal environment.
Within theclimate changecomponent of its work, the Department understands the impacts of climate change on global environmental, social and economic systems. In October 2011, Cabinet approved the National Climate Change Response White Paper. The policy paper sets out South Africa’s vision for an effective climate change response, and a transition, in the longer term, to a climate resilient and lower carbon economy and society.
The presentations made by the Department and Entities focused on the prioritised targets, outputs, achievements, challenges and interventions for the 2012/2013 financial year to attain the above. The Portfolio Committee in engaging on this component of the work of the Department was particularly impressed by the collaboration between the Department and the South African Weather Services in relation to the outcomes of prioritised indicators and targets attained for the 2012/2013 financial year. The focus was on the way in which the SAWS assisted the Department on Air Quality Information Management; Monitoring and Modelling changes in climatic conditions over time due to climate change; and Climate Change Adaptation through disaster prevention such as early warning mechanisms on severe weather conditions. The presentations provided the following insights:
Within thebiodiversity and conservationcomponent of its work, the Department must ensure the realisation of biodiversity conservation and management as well as mitigation of threats to biodiversity, whilst still ensuring equitable and sustainable use of natural resources to contribute to socioeconomic development. Over the medium term, the Department’s focus will be on expanding the conservation estate to ensure that all ecosystems and geographic areas are represented in line with the protected areas expansion strategy. Effective management of the existing conservation and heritage estate will also be put in place. The Department will ensure protection of indigenous biodiversity from unscrupulous exploitation as well as invasion by alien species to ensure beneficiation and sustainability, and that local indigenous knowledge and species are recognised and protected. To this end, the Department has developed bio-prospecting regulations and is finalising the alien invasive species regulations. The Department also aims to attract investment for infrastructure development in the transfrontier conservation areas in support of regional economic development.
For the 2012/13 financial year, the entities supporting this component of the work of the Department, iSimangaliso, SANBI and SANParks projected certain outcomes in the areas of the expansion of the conservation estate, challenges associated with the management of the Transfrontier Conservation Areas, the establishment of the National Wildlife Information Management Unit, the impact of tightening the permitting regime, the role of SANBI as the national implementing agent of the Adaptation Fund and its role in the implementation of the Biodiversity Sector Skills Plan and the Jobs Fund.
Within theenvironmental sector programmes and projects (employment creation)component of its work, the Department understands the importance of employment generation as a key priority over the medium term and is intensifying its involvement in the expanded public works programme in relation to generating green jobs. The transfer from the Department of Water Affairs of the Natural Resources Management Programmes, Working for Water, and Working on Fire, has significantly increased the Department’s capacity and responsibility to create employment. Both job creation and critical environmental outcomes will be realised through these programmes, including the management of invasive alien plants, wild fires, wetlands, land and forest degradation, river health; the potential creation of value-added industries; and the conversion of invasive alien plant biomass, bush encroachment biomass and waste materials, to energy.
Within thesector services, environmental awareness and international relationscomponent of its work, the Department seeks to facilitate environmental cooperative governance across all spheres of government and provide geographically referenced environmental information for decision-making. This part of the Department’s work includes reporting on the state of the environment, promotion of the incorporation of environmental objectives into strategic planning instruments at national, provincial and local government level, development and maintenance of the departmental research and developmental agenda to ensure informed and coherent policy making, as well as facilitation of development and implementation of the national greening programme.