Reprint_EDT AR.p65 by liuqingyan

VIEWS: 57 PAGES: 173

									                        2006/2007
                      Annual Report
 Department of Economic Development and Tourism




                           Jaarverslag
Departement van Ekonomiese Ontwikkeling en Toerisme


                  Ingxelo Yonyaka
       Isebe Lophuhliso Lwezoqoqosho Nezokhenketho
           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:
   agvdberg@pgwc.gov.za or Lmkalipi@pgwc.gov.za

                       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




D E P A R T M E N T   O F   E C O N O M I C   D E V E L O P M E N T   A N D   T O U R I S M :   V O T E   1 2
                                        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




D E P A R T M E N T   O F   E C O N O M I C   D E V E L O P M E N T   A N D   T O U R I S M :   V O T E   1 2
                                       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




D E P A R T M E N T   O F   E C O N O M I C   D E V E L O P M E N T   A N D   T O U R I S M :   V O T E   1 2
                                              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




D E P A R T M E N T    O F    E C O N O M I C   D E V E L O P M E N T   A N D   T O U R I S M :   V O T E   1 2
          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 ground-
                                                        breaking 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

               authority                                organagram. The initial re-engineering of the Department and its focus had seen a
                                                        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                                                                                                   o
                                                        upon filling the 203 approved funded permanent posts in the Department. T 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 T  ourism Chief Directorate, Fishing and
                                                        Aquaculture Industries, and the Creative Industries Unit within Sector Development.




10   D E P A R T M E N T   O F   E C O N O M I C   D E V E L O P M E N T   A N D   T O U R I S M :   V O T E   1 2
                                              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
Liquor Bill has also been approved by                                                   Cape Town Routes Unlimited             27, 050
                                             current catchment of projects and
the Provincial Legislature, and within it,                                              Other                                  22, 654
                                             programmes, and will embark on a
the Department will be able to more                                                     Consultants                            21, 550
                                             process of strengthening integration
efficiently manage the liquor industry, as                                              CASIDRA                                22, 600
                                             not only across Departmental Units,
well as introduce social responsibility                                                 Non Profit Institutions                32, 881
                                             but also among other provincial
programmes and support mechanisms to                                                    CSIR                                    7, 500
                                             departments and among the different
the informal segment of the sector.                                                     TOTAL                                175, 498
                                             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
                                                                                                                             of Employees
economic Development Strategy.                 functions, and (R500) thousand for          19%
                                                                                                                                 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 R outes                         Consultants           Other
                                                                                                 12%
the Department’s understanding of the          Unlimited (CTRU).                                                    13%




                                                                                                                                               11
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     Part 1: General Information

     1.3 Information on                              and services, improving export
                                                     capability of firms and institutions and
                                                                                                         destination of choice both nationally
                                                                                                         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
     Finance and Tourism administer the              was established in term of the
                                                                                                         and Economic Development presented
     Department of Economic                          national Liquor Act, 2003 (Act 59 of
                                                                                                         the provincial Liquor Bill to the
     Development and Tourism.                        2003). The primary responsibility of
                                                                                                         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                   responsible manner ensuring the
                                                                                                         was accepted and approved without
     ministries                                      sustainability and achievement of
                                                                                                         opposition. The assenting by the
     Two institutions report to the                                                                      premier is now pending, subject only
                                                     economic growth, transformation and
     executive authority responsible for                                                                 to the certification by the (national)
                                                     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

     statement                                       mandate                                             responsibilities and authority to
                                                                                                         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
     people dependent on social welfare.                                                                 Investment and Trade Promotion
                                                     1 of 1999 as amended by Act 29 of 1999)             Agency (Wesgro).
     We aim to grow and transform our
     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)
municipalities refuse applications by
                                                                                      Provincial Western Cape Tourism Act, 2004
                                           It is expected that the regulations
certain types of businesses for            applicable to the legislation will be
                                                                                      (Act 1 of 2004)
                                                                                      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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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
                                                     governance within the
                                                                                            management of the Department and
                                                                                            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,
         tion to the best advantage of the                                                       Key strategic objectives linked to
                                                 • to make citizens and their
         province.                                                                          this programme are growing the
                                                     enterprises effective players in the
                                                                                            economy, employment creation and
                                                     global economy,
     Key Measurable                              • to create a fair, effective and
                                                     conducive business environment
                                                                                            economic empowerment.
                                                                                                 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
                                                                                            Fair Business Environment program-
     Achievements                                strategic objectives, the Department
                                                 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. W ithin 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 entre-
                                                                                    preneurs 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.
    (3r d phase MEDS Synthesis Report, 2006)
                                                                                    The RED Door centres and Youth
                                                                                    Commission identified suitable
Socio-economic factors                                                              candidates through assessing
The following factors, as discussed in the 3r d 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.



                                                                                                                         15
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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-repre-
sented in skill- and technology-intensive economic activities that have account-
ed for much of the medium- to long-term dynamism in world output and trade.
     Given the industrial and export specialisation of the Western Cape, knowl-
edge 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 intensifica-
tion 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 accommoda-
                                                                                         tion; and
Overview of the organisational environment for 2006/2007                               • road signs to provide informa-
                                                                                         tion 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 con-
straints 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 T     ourism 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 sec-
    ond 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 establish-
    ments 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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
     whether our programmes are address-
                                                           Departmental                                         be collected from the following
                                                                                                                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
     to interrogate whether our interven-
                                                           topics collection of                                 • tour guide registration R0,270
                                                                                                                    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     2006/200 7     % 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      142,7 1 %




     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
                                              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: T  ourism, 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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                                                                                                         119
       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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




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

                 Programmes                              economic statistics and perform research, which will inform policy
                                                         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
                                                         coordinated effectively, the programme was subdivided into two key sub -
       organised in the following                        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 prac-
                                                         tices are relevant, modern and in tune with the overall good governance practic-
                                                         es 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 docu-
                                                         ments, policies and framework strategies should serve as extensive training.
                                                         Presentations to all staff members are also conducted on a regular basis thereby




30   D E P A R T M E N T    O F   E C O N O M I C   D E V E L O P M E N T   A N D   T O U R I S M :   V O T E   1 2
                                            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 administra-
tive 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 objec-
tives. The Departmental Planning, Monitoring and Evaluation System Framework
emanates from both the Government-Wide Monitoring and Evaluation System
(GWMES) and the Province -W ide 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 Directorate under the leadership of the Chief
                                                                              Directorate,
                                               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 im-
                                               prove 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 pro-
grammes. 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 entre-
preneurs. 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 mu-
nicipalities throughout the province. These workshops targeted local stakehold-
ers 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 informa-
                                                                                             tion on PERSAL

                                                                                             Removal of functions
                                                                                             from staff that do not
                                                                                             require these func-
                                                                                             tions for security
                                                                                             reasons
                                              Review and assess-                             Payment of perform-
                                              ment of staff perform-                         ance 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 profes-
                                                                                          sional support service,
                                                                                          life management
                                                                                          service and face-fact
                                                                                          counselling
      Support line managers                   Manage SPMS                                 Performance bonuses
      and employees in the                                                                allocated
      management of
      performance, identifi-
      cation 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 re-
                                                                                          ports received from
                                                                                          service provider re-
                                                                                          garding 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




                                                                                                                                                        37
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 develop-
      ment capacity build-
      ing 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 deal : 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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
     M r. 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 T    own. 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.                                                                                         o
                                              take business and support services closer to the communities. T date the mobile
                                              programme has assisted thirteen entrepreneurs with business support and advice and
                                              has met with 660 individuals.
     LED Road Shows                                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 P rovider Training Programme was
                                                                                                 Training Programme
     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                                                                          Deliverables,
                                                   The unit was mandated to undertake the Siyabulela Deliverables 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



                                                                                                                                          43
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 ta-
     bleware.                                 determining the most appropriate areas      the target of completing the Preferential
                                              of Departmental support interventions       Procurement Policy in this financial year
                                              and services required. This resulted not    due to the fact that the BBBEE Codes of
     J9 Beads
                                              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 communi-
ties
Programmes and            11 programmes of           Number of entrepre-      11 pr ogrammes 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 communi-
ties
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 entre-
preneurs in local areas
and communities




                                                                                                                                                           45
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 voucher s issued
      projects which address                                issued for business
      the needs of small                                    support
      businesses, business
      associations and
      entrepreneurs in local
      areas and communi-
      ties
      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 busi-
      ness 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 entre-
                                                            preneurship 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 entrepre-     neurs 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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




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
                                                                                              Eden Connect in
                                                                                              collaboration with
                                                                                              ESD: service industries

                                                                                              Cape Winelands retail
                                                                                              business to Paarl RED
                                                                                              DOOR

                                                                                              Overberg film opportu-
                                                                                              nity 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 under-
                                                                                              taken; Department
                                                                                              support halted at
                                                                                              request of project
                                                                                              proposers who sought
                                                                                              financial assistance
                                                                                              only, and declined the
                                                                                              non-financial assist-
                                                                                              ance that is a condi-
                                                                                              tion 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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-
                                                                                                       1st quarter
      projects that will                                tunities identified the
                                                                                                       14 engagements held
      increase community-                               mount of community
                                                                                                       i.t.o provision of expert
      based ownership and                               assistance required
                                                                                                       advice and non-
      participation in line
                                                                                                       financial support
      with the vision of                                The number of en-
      iKapa Elihlumayo                                  gagements to provide
                                                                                                       2nd quarter
                                                        expert advice and
                                                                                                       28 engagements via
                                                        non-financial support
                                                                                                       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 engage-
                                                                                                       ments (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 identi-
                                                                                                 fied to assist
                                                                                                 Matzikama and
                                                                                                 Cederberg through
                                                                                                 WC DGDS and LED
                                                                                                 processes

                                                                                                 1 opportunity identi-
                                                                                                 fied to assist URP
                                                                                                 (CoCT) with better
                                                                                                 alignment in city’s IDP
                                                                                                 and explore spatial
                                                                                                 opportunities for
                                                                                                 economic develop-
                                                                                                 ment 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 strat-
                                                                                                 egy 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 develop-
      ment’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 compa-
                                                                                                              nies, clothing compa-
                                                                                                              nies, 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 oppor-        tunities directed at      access funding and        tunities directed at      nities                     empowerment oppor-
tunities 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 refer-
                                                                                                        ence were presented,
                                                                                                        amended and adopted;
                                                                                                        the unit has drafted a
                                                                                                        comprehensive report
                                                                                                        on the workshops and
                                                                                                        have identified gaps on
                                                                                                        the implementation
                                                                                                        plan; further consulta-
                                                                                                        tion 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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.
                                      sub-programme,
    Within the Liquor Regulation sub-programme liquor licence adminis-
tration 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 du-
ties in accordance with service delivery goals set in conjunction with staff, and
the implementation of service delivery improvement proposals made by the cli-
ents 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 op-
portunity to achieve compliance within a set period. The number of approvals,
particularly in respect of HDI applicants, has climbed dramatically, and the in-
creased 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 moni-
toring of the progress of renewal payments being made, and to remind new li-
cence 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 devel-
opment 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 com-
                                                                                                                            ment 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 administra-
                         tive 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 possibil-
                                                                                                                                ity 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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. exist-
                                                                                                                                    ing act, largely i.t.o.
                                                                                                                                    increased demand
                                                                                                                                    from board, which
                                                                                                                                    considered and ap-
                                                                                                                                    proved 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 in-
                                                                                                                                    crease 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 quar-
                                                                                                                               ter and training to be
                                                                                                                               outsourced to expe-
                                                                                                                               dite process of ready-
                                                                                                                               ing SAPS liquor offi-
                                                                                                                               cials for implementa-
                                                                                                                               tion of act




                                                                                                                                                         63
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 pro -
                                              gramme 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 ena-
                                              bled specialised research to establish opportunities in industries such as agricul-
     Africa Aerospace                         ture, forestry, aquaculture, mining and other associated value chains.
     and Defence                                                                        sectors,
                                                  With regard to the manufacturing sectors the Department played a lead-
                                              ing role in developing strategies that have impacted on the labour-intensive in-
     (AAD) 2006                               dustries, 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.
                                                                         sectors,
                                                  The service industry sectors 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


64
64
                                            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-


                                                                                                                                 65
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 industry , 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-                           sector,
                                            processing sector considerable            contribute to short and long term sus-
tries These industries are mainly the
tries.                                      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              sector and more specifically the in-
                                            sector,                                   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



                                                                                                                                  67
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     Part 2: Programme Performance
     Programme 4: Economic Sector Development


     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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 pro-
      grammes 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 develop-
      ing furniture, electron-                                                                                   ment in electronics
      ics and printing,
      though minor inter-
      ventions
      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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 inter-
                               ventions                                            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 ap-
                               proach                                              proach
      Develop and grow the     Expand support for        Amount of invest-         Expand support for        CallingtheCape has
      BPO industry through     CtC as the invest-        ment recruited and        CtC as the invest-        directly facilitated over
      investment recruit-      ment 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 indus-
                                                                                                             try 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 proce-
                                                                                                           dures 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 pro-                                      gramme                     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 sup-
                                ported 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 eco-
                                                                                                               nomic impact assess-
                                                                                                               ment 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 pro-
                          grammes, 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 sup-    ported 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 develop-
ment 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 partici-
                                                                                                      pate in Transcape
                                                                                                      Biennale as final part
                                                                                                      of their skills develop-
                                                                                                      ment 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 initia-
                                tives                   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 inno-
                                                    vation policies devel-
                                                    oped 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 accord-
                           ing 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 signifi-
                                                                                                        cant developments
                                                                                                        towards the develop-
                                                                                                        ment 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 indus-
      tries, 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 knowl-
      edge intensive activi-
      ties, e.g. new materi-
      als, 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-
acr oss sectors, equity,                                                                             ment between SETAs
technology transfer                                                                                  and province
and innovation
                                                                                                     Successful CHEC
                                                                                                     summit held, co-
                                                                                                     operative 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 com-
                                                                                                     menced




                                                                                                                                                      79
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 evalu-
                                                                                                           ation of the develop-
                                                                                                           ment and implemen-
                                                                                                           tation 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 invest-
                              ment                                               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 recom-
                                                                                                           mended 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 poli-
                                                                                                          cies 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 re -
                                               ceived 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)
                                               and in employment (compared to about 7.4 % for South Africa as a whole).
     Tourism Enriches
                                               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                                                             Tourism
                                                   The development of the Western Cape Tourism Development Frame -        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 r d 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
         Tourism
Cape Tourism Development Pa r t-     Pa t-   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 -
                                                                     Tourism              Park (FBEP) as part of the development
which will be made up of delegations         velopment Partnership held its
                                                          Partnership                     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 F ramework).          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-    (R TOs) 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.                                     dti.
                                             the dti 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 -  Work
gramme resulted in the addition of two       ensuring joint planning, budgeting and       shop (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 3r d 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


                                                                                                                                      83
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     Part 2: Programme Performance
     Programme 5: Tourism


                                                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 cul-
                                                ture 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 T      ourism
     Premiers Service                           Growth sub-committee which will be established in the WCTD Partnership.
                                                     The Tourism Programme has been actively involved in training and development
     Excellence Awards
                                                initiatives for the 2005/2006 and 2006/2007 fiscal years. In the 2005/2006 fi-
     for Development                            nancial 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 Development , most of the projects were sus -
                                                pended pending the restructuring of the Tourism Chief Directorate and the estab -
                                                lishment 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, pro-
                                                fessional 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 T ourism 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 R outes 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



84
                                              ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007




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 under-
standing of tourism and how communities can be involved into almost every cor-
ner of our Province.
                                             Portfolio
     The Tourism Blue Chip Investment Portfolio was also developed. It fa-
cilitates 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 assist-
ance provided and will be form part of the T   ourism Blue Chip Investment Portfo -
lio.                                                                                   Noxolo Ntenetya, Provincial Tourist
     The Tourism Regulation environment continues to implement training and
                    Regulation                                                         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 reg-
istered tourist guides to increase opportunities for employment in the industry.       Provincial
     The provincial Tourist Guide Registrar responsible for keeping an ac-
                       Tourist        Registrar
                                        egistrar,                                      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, dti TBCSA, the Coaches Association and emerging
                            dti,                                                       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.



                                                                                                                             85
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     Part 2: Programme Performance
     Programme 5: Tourism


                                               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 im-
                                                  plemented 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-
                                                  ploying tourist guides.
     Competition                               • 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                    Tourism Road
                                              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 ) 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.



86
                                           ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2007




    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                          Tourism
                                         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
           Road
Tourism Road Signage                     and benefits that tourism has to          taken to the Cango Wildlife Ranch.
                         Western
F ramework for the Western               offer; to allow learners to focus on                           Youth
                                                                                        The Tourism Youth Indaba
Cape,
Cape 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, 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



                                                                                                                             87
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     Part 2: Programme Performance
     Programme 5: Tourism


                                              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 P rovince. [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.] R egional 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 R outes
     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 in-
                                                                                                                               cludes 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 infor-
                                                                                                                               mation 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 seat-
                                                                                                    ing), and 4 x Tables;




                                                                                                                                                         89
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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
                                                                                                         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 con-
                                                                                                         junction 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




90
                                                     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
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 oppor-
                                                                                                   tunity to study to-
                                                                                                   wards 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




                                                                                                                                                    91
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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
                                                                                                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 pro-
                                                                                                gramme; the curricu-
                                                                                                lum for beginners,
                                                                                                intermediate and
                                                                                                advanced has been
                                                                                                revised and we have
                                                                                                applied for THETA
                                                                                                accreditation; in
                                                                                                addition all entrepre-
                                                                                                neurs 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 inter-
                                                                                                mediate sessions (150
                                                                                                entrepreneurs), and



92
                                                    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
                                                                                                  one combined ad-
                                                                                                  vanced 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 ses-
                                                                                                  sion).
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 atten-
                                                                                                  tion 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 imple-
                                                                                                  mentation, and with a
                                                                                                  greater number of




                                                                                                                                                   93
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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
                                                                                                         participants and a
                                                                                                         further increase in
                                                                                                         regional spread; fur-
                                                                                                         thermore 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 entre-
                                                                                                         preneurs 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



94
                                                       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
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




                                                                                                                                                            95
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




     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 estab-
                                                                                                        lishment 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 repre-
                                                                                                           sentative 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 consulta-
tion 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 develop-
                           ment of road signage                                ment of road signage
                           for Overberg tourism                                for Overberg tourism
                           routes                                              routes

                           Continued develop-                                  Continued develop-
                           ment 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
     D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




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   D E P A R T M E N T   O F   E C O N O M I C   D E V E L O P M E N T      A N D     T O U R I S M :   V O T E   1 2
                                             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
    application backlog and some
                                            Reporting
                                            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
                                            progress is being made in the
Risk Management
                                            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
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




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 gov-

       1. General review                                 ernment, business, civil society and social partners, sets a clear vision for the
                                                         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 iK apa 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 ine-
                                                         quality 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 econom-
                                                         ic 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 in-
                                                         terventions 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 of-
                                                         fered by the RED Doors, the roll out of the Die Plek Plan programme and the fi-
                                                         nalisation 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 hav-
                                                         ing the infrastructure to establish a curriculum for entrepreneurs; we have identi-
                                                         fied 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   D E P A R T M E N T   O F   E C O N O M I C   D E V E L O P M E N T   A N D   T O U R I S M :   V O T E   1 2
                                            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 r d
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
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




      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 ex-      it 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 P rovincial 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-
lected from the following sources:
                                             donor funds                                  Western Cape and Cape Town as a
                                                                                          premier tourist destination.
• Liquor License Fees (R 4, 330              No Donor funding was received in the
                                                                                              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-

As at the end of the 2006/07 finan-
                                             and public entities                          pared to the 2005/06 financial year
                                                                                          where an amount of R 26, 510 mil-
cial year, the Department reflected an       The Department has three Public Enti-
                                                                                          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
2. Service rendered                              Routes Unlimited)
                                                                                          is responsible for the regulation of

by the Department                            • The Western Cape Liquor Board              the retail and micro-manufacturing
                                                                                          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                      expended by the Western Cape Liquor
Guides and the issuing of Liquor             and Trade Promotion Agency                   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
August 2002 and revised on an annu-
                                             Trade Promotion Law, 1996 (act 3 of
                                             1996). The major objective of the
                                                                                          6. Organisations to
al basis or as legislation may deter-        agency is to promote investment in           whom transfer
mine.                                        and trade with the Western Cape.
                                                 An amount of R 10, 891 million
                                                                                          payments have been
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
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




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


          Transfers to CASIDRA amounted
      to R 22, 6 million, primarily to assist
                                                       The comprehensive inherent risk
                                                   assessment was completed for the
                                                                                                   10. New/proposed
      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-

      7. Public Private                            ing of financial records.
                                                       For the financial year in review,
                                                                                                   ments of Economic Development na-
                                                                                                   tionally.
      Partnerships (PPP)                           the Internal Control Unit has conduct-
      No PPP’s were undertaken in the              ed compliance audits within the Finan-
                                                   cial Management and Human
                                                                                                   11. Asset
      2006/07 financial year.
                                                   Resource Management directorates.               management
      8. Corporate                                 Reports on the findings and recom-
                                                   mendations were submitted to man-
                                                                                                   All assets have been captured in the
                                                                                                   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
                                                   control deficiencies and improve the
                                                                                                       There is only one official currently
                                                                                                   in this unit. A clerk post will be filled
      The National Treasury ’s Internal Audit                                                      in the next two months. Approval has
                                                   systems as identified.
      Framework and Treasury Regulations
                                                       The Department currently shares             been obtained to expand the unit.
      determine the establishment of a risk-                                                           The asset register comply with the
                                                   the centralised Audit committee and
      based approached to an Internal Audit.                                                       minimum requirements of National
                                                   Internal Audit unit of the Province.
      This approached is consistent with the                                                       Treasury guidelines.
      requirements of the Public finance
      Management Act, Act 1 of 1999 and            9. Discontinued                                     The milestones to meet the com-
                                                                                                   pliance with National Treasury Guide-
      the King II report.                          activities/activities to                        lines have been met.
           A risk based approached requires
                                                   be discontinued
      that audit planning and associated
      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
      risks, but also includes focusing on         Economic Development, nationally, the
                                                                                                   No material facts or circumstances
      operational and strategic risks.             Department underwent a process of
                                                                                                   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
      proach to an internal audit is the ability   for 2007/08 financial year. The re-
                                                                                                   issue of this report
      to define a common approach to as-           named programmes are as follows:
      surance incorporating a number of as-
      surance role players. Within this
                                                    No Programme       No   New Programme Name     13. Performance
      context and as part of a three-year en-       2
                                                       (2006/07)
                                                       Economic        2
                                                                            (2007/08)
                                                                            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 W estern 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
ficer, HR manager, DOPMS manager         Include a table in the management re-
                                                                                              based on the percentage shareholding
and all Programme Managers, has          port on the SCOPA resolutions. The
                                                                                              in Cape Town International Conven-
also been established. All Pro-          table should conform to the following
                                                                                              tion Centre (Convenco). The share of
grammes are to present information       format:
                                                                                              the impairment calculates to R77 mil-
to the Panel and this is then evaluat-    Reference to                                        lion and form part of the provisions
                                                             Subject   Findings on progress
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       None                None           None
projects.
    The Management Accounting
                                                                                              16. Approval
                                                                                              The Annual Financial Statements set
sub-directorate further evaluates all
performance against expenditure.         15. Other                                            out on pages 103 to 145 have been
                                                                                              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
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




      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
                                                   includes:
                        Introduction               · 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
                                                   Act, 2004 (Act No. 25 of 2004) my responsibility is to express an opinion
      statement, statement of financial
                                                   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
                                                   amounts and disclosures in the financial statements. The procedures
                         set out on pages
                                                   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.                             Economic Development and
   accurately account for the liquor
   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
   behalf as a result of SARS paying       accounting officer                          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
        D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




        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)
                                                 which is also the functional currency of the Department.
                            indicated.
                                                 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 in-
                                                 formation 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 recog-
                                                 nised in the financial records on the date the adjustments become effective.
                                                     Total appropriated funds are presented in the statement of financial perform-
                                                 ance.
                                                     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 re-
                                                 ceived, unless otherwise stated. Amounts owing to the Provincial Revenue Fund
                                                 at the end of the financial year are recognised in the statement of financial posi-
                                                 tion. 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 pay-         ment 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
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




      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-
tion of the project and at the total cost                                                a previous financial year becomes re-
                                            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
project.                                                                                 financial year.
                                            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
5. Liabilities                              obligation that arises from past events
                                                                                         ties in making financial and operating
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
      D E P A R T M E N T O F E C O N O M I C D E V E LO P M E N T A N D T O U R I S M : VO T E 1 2




      Part 4: Annual Financial Statements

      Appropriation Statement for the year ended 31 March 2007
                                                                               Appropriation per programme
                                                                                               2006/07                                            2005/06
                                    A d j u s t e d Shifting of   Virement         Final      Actual         V a r i a n c e Expenditure      Final        Actual
                                   Appropria- F u n d s                          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
      D E P A R T M E N T O F E C O N O M I C D E V E LO P M E N T A N D T O U R I S M : VO T E 1 2




      Part 4: Annual Financial Statements

      Detail per programme 1 - Administration for the year ended 31 March 2007
                                                                                          2006/07
                                                                                          2006/07                                              2005/06
          Programme per              Adjusted     Shifting of V i r e m e n t     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)        23,0 7 8         22,797         281         98.8%       16,953        16,924



                                                                                          2006/07
                                                                                          2006/07                                              2005/06
             Economic                Adjusted     Shifting of V i r e m e n t     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)        23,0 7 8         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
                                                                                    2006/07                                               2005/06
    Programme per              Adjusted     Shifting of V i r e m e n t     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
                                                                                    2006/07                                               2005/06
       Economic                Adjusted     Shifting of V i r e m e n t     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
      D E P A R T M E N T O F E C O N O M I C D E V E LO P M E N T A N D T O U R I S M : VO T E 1 2




      Part 4: Annual Financial Statements

      Continued: Detail per programme 2 - Economic Participation for the year ended 31 March 2007
                                                                                           2006/07
                                                                                           2006/07                                                  2005/06
              Economic              Adjusted       Shifting of V i r e m e n t     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
       Households                            -               4               -             4                 4              -        100%             -               -

       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
                                                                                           2006/07                                                  2005/06
           Programme per            Adjusted       Shifting of V i r e m e n t     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
                                                                                    2006/07                                                2005/06
        Economic               Adjusted     Shifting of V i r e m e n t     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
                                                                                    2006/07                                                2005/06
    Programme per              Adjusted     Shifting of V i r e m e n t     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
      D E P A R T M E N T O F E C O N O M I C D E V E LO P M E N T A N D T O U R I S M : VO T E 1 2




      Part 4: Annual Financial Statements

      Continued: Detail per programme 4 - Economic Sector Development for the year ended 31 March 2007
                                                                                          2006/07
                                                                                          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
                                                                                          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
                                                                                    2006/07                                              2005/06
    Programme per              Adjusted     Shifting of V i r e m e n t     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
                                                                                                                                    37,807         37,747




                                                                                    2006/07
                                                                                    2006/07                                              2005/06
        Economic               Adjusted     Shifting of V i r e m e n t     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
      D E P A R T M E N T O F E C O N O M I C D E V E LO P M E N T A N D T O U R I S M : VO T E 1 2




      Part 4: Annual Financial Statements

      Continued: Detail per programme 5 - Tourism for the year ended 31 March 2007
                                                                                             2006/07
                                                                                             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
                                                                                                                                             37,807        37,747




      Detail per programme 6 - Theft and Losses for the year ended 31 March 2007
                                                                                             2006/07
                                                                                             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%               -              -




                                                                                             2006/07
                                                                                             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

       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                                                                                           2006/0 7                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
      D E P A R T M E N T O F E C O N O M I C D E V E LO P M E N T A N D T O U R I S M : VO T E 1 2




      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 . 1 0 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
      D E P A R T M E N T O F E C O N O M I C D E V E LO P M E N T A N D T O U R I S M : VO T E 1 2




      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
      D E P A R T M E N T O F E C O N O M I C D E V E LO P M E N T A N D T O U R I S M : VO T E 1 2




      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
                                                                                                               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                                                                                                            6                     5
      Sales of scrap, waste and other used current goods                                                                     8                      -
      Total                                                                                                               337                   239


      2.2 Interest, dividends and rent on land and buildings
       Interest                                                                                                              2                     2
        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         2006/0 7            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                                                                       5                  4
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                                                                               6                58
Maintenance, repairs and running costs                                               1,168               120
Medical Services                                                                         1                  1
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
      D E P A R T M E N T O F E C O N O M I C D E V E LO P M E N T A N D T O U R I S M : VO T E 1 2




      Part 4: Annual Financial Statements

                                                                                Note                  2006/07
                                                                                                      2006/07              2005/06
      Subscriptions                                                                                                 63                  48
      Storage of furniture                                                                                            7                  7
      Owned leasehold property expenditure                                                                            3                  2
      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
                                                                                                                                 24,771


      4.1 External audit fees
      Regulatory audits                                                                                            719                 854
      Total                                                                                                       71 9                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                                                                                                         11
                                                                                                                3 , 11 8             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                                                                                                   3                16
      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
                                                                                           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                                                                                              2                   2
Cash with commercial banks (Local)                                                                    4,442               1,417
Total                                                                                                3,000                 313


9. PREPAYMENTS AND ADVANCES

Travel and subsistence                                                                                    5                  19
Advances paid to other entities                                                                         374                   -
Total                                                                                                  379                  19




                                                                                                                                   133
      D E P A R T M E N T O F E C O N O M I C D E V E LO P M E N T A N D T O U R I S M : VO T E 1 2




      Part 4: Annual Financial Statements

       10. RECEIVABLES

                                                                                                      2006/07
                                                                                                      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        2006/0 7 total           2005/06 total
Clearing accounts                               14.1                        14               -                      14                    -


                                                   -
Total                                            14                         -               14                       -


14.1 Clearing accounts
                                                                                   Note            2006/0 7                 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                                                                                                         2                    2
Cash with commercial banks (Local)                                                                              4,442                 1,417
Total                                                                                                          3,000                  313




                                                                                                                                              135
      D E P A R T M E N T O F E C O N O M I C D E V E LO P M E N T A N D T O U R I S M : VO T E 1 2




      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
                                                                                                  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
                                                                                                      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                  07
                                                                                                                                     6 07


      Listed by programme level                                                                             2006/07
                                                                                                            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                   07
                                                                                                                                     6 07


      Confirmed balances with other Departments                                      Annex 5                        -                 11
                                                                                                                    -                 11


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


23. KEY MANAGEMENT PERSONNEL

                                                           No. of Individuals          2006/07
                                                                                       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                                                                                             2,37 1          2,046


24. PROVISIONS

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


Total                                                                                            77,000                 -




                                                                                                                            137
      D E P A R T M E N T O F E C O N O M I C D E V E LO P M E N T A N D T O U R I S M : VO T E 1 2




      Part 4: Annual Financial Statements

      25. TANGIBLE CAPITAL ASSETS

                            CAPITAL                                                        2007
      MOVEMENT IN T ANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 3 1 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
      NOTE:
      GMT’s asset register and annual financial statements.


                            TANGIBLE                                                       31       2007
      2 5 . 1 ADDITIONS T O TANGIBLE CAPIT AL 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)                            year,
                                                                                                                         curr ent 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




                                                                                     31       2007
2 5 . 2 DISPOSALS OF T ANGIBLE CAPIT AL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2007

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


TOTAL                                                                482                      482


2 5 . 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 INT ANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2007
                        CAPITAL                                              31       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


                                  CAPITAL                                              31       2007
2 6 . 1 ADDITIONS T O INT ANGIBLE 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
                                                                                                         year,
                                                                              current costs)                   current year,
                                                                                                       (P aid current year,
                                                                                                      received prior year)
                                     R’000                 R’000                   R’000                       R’000                 R’000
COMPUTER SOFTWARE                                 28                     -                        -                        -                    28


TOTAL                                            28                      -                        -                        -                    28


2 6 . 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
      D E P A R T M E N T O F E C O N O M I C D E V E LO P M E N T A N D T O U R I S M : VO T E 1 2




      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
                                                                                                                  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
      D E P A R T M E N T O F E C O N O M I C D E V E LO P M E N T A N D T O U R I S M : VO T E 1 2




      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

                    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

 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                               -




                                                                                                                                                                                    143
      D E P A R T M E N T O F E C O N O M I C D E V E LO P M E N T A N D T O U R I S M : VO T E 1 2




      Part 4: Annual Financial Statements

      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                 1 10                 -              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




                                                                                                                                                       145
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




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
                                                                        progress against set service standards.
              Assistance
        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    D E P A R T M E N T       O F     E C O N O M I C        D E V E L O P M E N T     A N D    T O U R I S M :   V O T E     1 2
                                                               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 (T  able 2.4), of expenditure incurred as
a result of salaries, overtime, home owners allowance and medical assistance. In each case, the table provides an indica-
tion 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




                                                                                                                                                                                     149
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




      Part 5: Human Resource Management

      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 identi-
      fied 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                                                                            1              1              0              0

 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. W ithin 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.




                                                                                                                                             151
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




      Part 5: Human Resource Management

      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                                                                                              0              0                 0               0                  0
       Male                                                                                                0              0                 0               0                  0
       TOTAL                                                                                               0              0                 0               0                  0
       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                                                                                                    0                0                0                1               1
 Male                                                                                                      0                0                0                0               0
 TOTAL                                                                                                     0                0                0                1              1
 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 pro -
vide a summary of turnover rates by salary band (Table 5.1) and by critical occupations (Table 5.2). (These “critical occupa-
tions” 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                                                                                           7                1                2             56
 Senior management Service Band B                                                                                           2                0                0            100

 Senior management Service Band C                                                                                           2                0                0            100
 Senior management Service Band D                                                                                           0                0                0              0
 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                                                                                                      1                0                0              0
 Sector specialists                                                                                                         7                0                0              0

 Senior management                                                                                                         16                0                0              0
 TOTAL                                                                                                                     24                0               0               0


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



                                                                                                                                                                                  153
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




      Part 5: Human Resource Management

      Table 5.3 – Reasons why staff are leaving the Department
       Termniation type                                                           African            Asian        Coloured        Number           % of Total

       Death                                                                                                                               0               0
       Resignation                                                                                                                         27             15

       Expiry of contract                                                                                                                137              78
       Dismissal – operational changes                                                                                                     0               0
       Dismissal – misconduct                                                                                                              0               0

       Dismissal – inefficiency                                                                                                            0               0
       Discharged due to ill-health                                                                                                        0               0
       Retirement                                                                                                                          0               0
       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                                                               7                0                0                0               0
       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             1
                                                                                                  1                     0            9            63




                                                                                                                                                       155
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




      Part 5: Human Resource Management

      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 manage-
      ment, 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 de-
      fined decision
      making                           1          0                0                0               0           1                     0            0             2
      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                   0          0                0                0               0           0                     0            0             0
      Senior management                1          0                0                0               0           0                     0            0             1

      Professionally
      qualified and exp-
      erienced specialists
      and mid-
      management                       3          7                0                2               6           6                     0            3            27
      Skilled technical
      and academically
      qualified workers,
      junior management,
      supervisors, foreman
      & superintendents                3          4                0                0               4           4                     0            2            17
      Semi-skilled and
      discretionary
      decision making                  5          7                0                0           11             11                     0            0            34
      Unskilled and
      defined decision
      making                           0          0                0                0               0           0                     0            0             0

      TOTAL                       12             18                0                2          21              21                     0           5             79
      Employees with
      disabilities                     1          0                0                0               0           0                     0            0             0




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 exp-
erienced specialists
and mid-
management                       0          1                0           0             1              2                 0           0            4
Skilled technical &
academically quali-
fied workers, junior
management,
supervisors, fore-
man and superin-
tendents                         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 qua-
lified & experienced
 specialists and mid
-management                      7         12                0           2         20             12                    0           5           58
Skilled technical
and academically
qualified workers,
junior manage-
ment, 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




                                                                                                                                                     157
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




      Part 5: Human Resource Management

      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 defin-
      ed decision making               2          0                0               0                0          0                     0            0             2
      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              1          3                0               0                0          2                     0            1             7




      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             2          4                0               1                6          4                     0            3            20

      Professionals                    0          0                0               0                0         10                     0            0            10
      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                          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          1                0               0                0          0                     0            0             1

      Elementary
      occupations                      0          0                0               0                0          0                     0            0             0
      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 re-
view. 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                                                                           0                 0               0                   0                    0
 Male                                                                              0                13               0                   0                    0

 Female                                                                            4                16              10                  30                    7
 Asian                                                                             0                0                0                   0                    0
 Male                                                                              0                0                0                   0                    0

 Female                                                                            1                 2              50                  32                   32
 Coloured                                                                          0                 0               0                    0                   0
 Male                                                                              7                24              29                  139                  19
 Female                                                                           14                43              33                  191                  13
 White                                                                             0                0                0                   0                    0
 Male                                                                              0                14               0                   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




                                                                                                                                                                      159
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




      Part 5: Human Resource Management

      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                                                               0                  0                    0                  0                  0
       Senior management                                                                0                  0                    0                  0                  0

       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 ma-
      jor 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 fol-
lowing 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.




                                                                                                                                                               161
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




      Part 5: Human Resource Management

      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)                                                                                                                            0                  0                    0

       Skilled (Levels 3-5)                                                                                                                                  7                  7                15
       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                                                                                                                                                0                   0                0




      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




                                                                                                                                                                     163
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




      Part 5: Human Resource Management

      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                                                                                    1            14

       Verbal warning                                                                                              3            42
       Written warning                                                                                             1            14
       Final written warning                                                                                       1            14

       Suspended without pay                                                                                       0                0
       Fine                                                                                                        0                0
       Demotion                                                                                                    0                0

       Dismissal                                                                                                   1            14
       Not guilty                                                                                                  0                0

       Case withdrawn                                                                                              0                0
       TOTAL                                                                                                       7          100


      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                                                                                            1            14
       Poor work performance                                                                                       3            42

       Misuse of IT equipment                                                                                      1            14
       Absenteeism                                                                                                 1            14
       Dishonesty                                                                                                  1            14
       TOTAL                                                                                                       7          100




      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                                                                           0                0
       TOTAL NUMBER OF GRIEVANCES LODGED                                                                           2          100




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

       Number of disputes upheld                                                                                   0                0
       Number of disputes dismissed                                                                                0                0
       TOTAL NUMBER OF DISPUTES LODGED                                                                             0                0




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
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




      Part 5: Human Resource Management

      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                        1                0                   0           0                1            0                      0               0                2


       NQF level 6                        4                2                   0           0                9            3                      1               0               19


       NQF level 5                        1                0                   0           0                1            0                      0               0                2


       NQF level 4                        1                2                   0           0                5            2                      0               0               10


       TOTAL                              7               4                    0           0           16                5                     1                0               33


       Employees with
       a disability                       1                1                   0           0                0            0                      0               0                2


      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                  63             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                  22             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                                                                                                                      0                0
 Temporary total disablement                                                                                                                                0                0
 Permanent disablement                                                                                                                                      0                0

 Fatal                                                                                                                                                      0                0
 TOTAL                                                                                                                                                      0                0




                                                                                                                                                                                 167
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




      Part 5: Human Resource Management

      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
      D E P A R T M E N T O F E C O N O M I C D E V E L O P M E N T A N D TO U R I S M : V OT E 1 2




      Part 5: Human Resource Management

      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
                                                                       www.capegateway.gov.za




                                                                                                                  red
                                   D E PA R TMENT OF ECONOMIC DEVELOPMENT AND TOURISM                             oor
                                   S U P P O RT   .   ENERGISE   .   CREA T E   .   S T I M U L AT E   .   GROW




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

								
To top