SETA LANDSCAPE by gyvwpsjkko


                          18 January 2011
Background- process in brief
 DHET published a proposal in April 2010
 NSA did across the country consultations on the proposal and
  advised the Minister
 DHET further advised the Minister taking into account the
  outcomes of the consultation process
 Minister applied his mind and weighed the various options
  presented to him
 Made a decision and announced on the 9th November 2010
Purpose of the landscape process
 Landscape process is not meant to address
  performance of SETAs, although this may have
  impact due to efficiency gains
 It is a process related to (re)certification of SETAs
  as per the SDA
 The SETA recertification process is provided for in
  the Skills Development Act; and requires the
  Minister to re- establish the SETA’s every 5 years
Principles guiding the landscape
 Minister has indicated that
    ‘SETAs are here to stay’
    Landscape proposals respond to this
 Question is in what form and doing what
    Responds to performance related issues
 It is based on the application of the criteria provided for in
  the Skills Development Act, 1998,
 Other broader considerations informed by the imperative
  of creating a post-school system aimed at addressing the
  skills needs of our country, for both the youth and adult
  sectors of our population.
Principles guiding the landscape
 Ensuring the broad coverage of skills development in all
    key sectors of our economy,
   Ensuring that each SETA is located as close as possible to
    its relevant economic sector.
   Introduced changes should not disrupt or have minimal
    disruption (where absolutely necessary) the closeness of
    each SETA to its relevant economic sector.
   Considerations were also informed by the New Growth
    Path recently adopted by government, as well as the
    imperatives of the Industrial Policy Action Plan 2 (IPAP 2)
    and other government priorities.
   Financial viability of the SETA
New landscape
 18 SETA’s remain the same or have minimal sic code
  transfers as follows;
    12 SETA’s are to be reestablished with no change
    6 SETA’s are to be reestablished with sic code transfers;
 2 SETA’s are affected by insignificant change based on
  receiving sub sectors from MAPPP;
 3 SETAs are affected by significant changes;
 The PSETA is re-established for a year pending an inter
  ministerial task team process that Ministers Nzimande
  and Baloyi have initiated to investigate the viability and
  operational model of the PSETA.
Rationale for PSETA approach
 Public sector contribution to levy
    SDA says they are exempt
    Makes provision for 1% of wage bill to be budgeted for
    Some departments and spheres of government
     ‘contributes’ to SETAs administration budget – not
    History of PSETA teaches the complexities associated
     with participation of the public sector in the SD
Proposals to address the PSETA
 Change legislation – public sector pays the levy
 In effect it means channeling the 1% stipulated in the SDA
    through to skills development processes
   Also means all other agencies, whose 80% or more of their
    income comes from voted funds will start paying the skills
   Improve and enforce contribution of other departments to
    either a SETA relevant to their economic activity or PSETA
   Remove PSETA from DPSA to operate alongside other
   Clarify which skills sets in the public sector will be catered
    for by the PSETA vs. other SETAs
Addressing SETA performance -
 The challenges are widely known, i.e. from the
  following sources for e.g. Nedlac, Singizi, HSRC,
  departmental internal reports
 Portfolio Committee reports and experiences based on
  engagement with SETAs
 AG reports
 In future we also have to take advantage of all the info
  from these sources to ensure that
Addressing SETA performance
 Significant changes are being made in the SETAs
  to address performance, i.e.
   There are immediate and short term measures that the
    Department can institute to address some of the
    challenges, as well as improve its oversight
   Other measures are medium to long term and some
    may require legislative changes
Ministerial Task Team
 The Minister has appointed a task team to advice on how to improve the
  functioning and performance of SETAs. The team will amongst other things
  look at:
    refocusing SETA activities through the new National Skills Development
     Strategy (NSDS) III,
    initiating a process to strengthen the SETA Sector Skills Plans (SSPs) and
     aligning these to much tighter Service Level Agreements and reporting
    Ensure we build the capacity of the QCTO to be the main accreditor of
     training providers so that SETAs concentrate on their role as facilitators of
     education and training in the workplace
    Improve for the future the current model Constitution of SETAs as best
     practice guideline to improve accountability and performance of SETA
     boards and governance;
    Improve cooperation between and among SETAs
Refocusing training
 Through NSDS III
   strengthening the relationship between public colleges and
      universities and the SETAs, as well as with employers.
     achieve significant increases in qualifications and skills to support
      priorities and initiatives such as the New Growth Path, the
      Industrial Policy Action Plan, the Human Resource Development
      Strategy and, in particular, sector development plans
     encourage and actively support the integration of workplace
      training with theoretical learning
     Address the relevance, quality, cost and access to training facilitated
      in the SETAs.
     Ensure that the training facilitated by SETAs leads to a
      qualification, move away from bias towards short courses and skills
Addressing governance of SETAs
      Introducing independent chairpersons
      Limiting the number of Board meetings to a reasonable
      Reducing the size of Boards
      Participation of the Minister in the appointment of Board
      Having a standard remuneration rate for Board and
       committee members
      Holding accountable Board members who do not carry out
       their duties as required
      The Minister’s participation in the appointment of SETA
       CEOs and other members of the Executive Committees of
       Councils, in line with similar practices in relation to public
Improving capacity in the DHET
   Monitoring of SETAs and their functions
   To be informed by all of the above (and more).
   Should ensure that government through DHET plays its
    oversight role
   Improving the performance management system to
    encourage, foster and promote the continuous
    improvement of the SETAs
   There is an expectation that, as a collective, the
    Department and the SETAs should deliver sector specific
    skills interventions that help achieve the goals of the
    NSDS III, address employer demand and deliver concrete
    results and make a decisive impact
 How do we in future collaborate with PC to take
 advantage of the information they gather to assist the
 department and SETAs improve the performance

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