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Introducing theIntroducing the
Intergovernmental Intergovernmental Relations Framework Bill Relations Framework Bill
(Preview)(Preview)
Department of Provincial and Local Government
Tuesday, 15 February 20051
Context for BillContext for Bill
1.1. Government’s program of action (policy Government’s program of action (policy context)context)
2.2. Constitutional framework for intergovernmental Constitutional framework for intergovernmental relationsrelations
3.3. Current realityCurrent reality
4.4. Initiatives to strengthen intergovernmental Initiatives to strengthen intergovernmental cooperationcooperation
2
Policy context of BillPolicy context of Bill
ConstitutionalRequirement (s41)
Makgotla resolutions
Ten Year Review
Target for 2014 GVT POA
Act providing for structures tofacilitate IGR and proceduresfor dispute resolution
Integratedgovernance
Realizing national vision givenrelative autonomy of provincial and local government
Improving performanceof the state
3
The Constitutional context The Constitutional context
2. Constitution
invests organs of state with
authority to act in their own right
within their jurisdiction
3. Coherent government for Republic
requires spheres to cooperate
and to coordinate
actionseffectively
1 . Constitution
assigns powers and functions to
three spheres,
unassigned functions
vest in national
government
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ConcurrencyConcurrency
1.1. National government performs functions that are National government performs functions that are not or cannot be (defense) allocated to provinces not or cannot be (defense) allocated to provinces and municipalities and municipalities (37.4% of national budget)(37.4% of national budget)
2.2. National government and provinces share social National government and provinces share social service functions (health, social grants and welfare service functions (health, social grants and welfare and education). National’s role is policy, regulation and education). National’s role is policy, regulation and oversight. Provinces budget and spend and oversight. Provinces budget and spend (58% (58% of national budget: 93.7% is transfers)of national budget: 93.7% is transfers)
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ConcurrencyConcurrency
3.3. National government and local government National government and local government share basic service functions that are cost share basic service functions that are cost recoverable (water provision, sanitation, recoverable (water provision, sanitation, electricity). electricity). (4.6% of national budget: 85.4% (4.6% of national budget: 85.4% is own municipal revenue)is own municipal revenue)
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R millionR million2000/02000/0
112001/022001/02
OutcomeOutcome
2002/032002/03 2003/042003/04RevisedRevised
2004/052004/05 2005/062005/06 2006/072006/07
Medium-term estimatesMedium-term estimates
National DepartmentsNational Departments 73 17873 178 87 70587 705 99 09199 091 110 494110 494 120 597120 597 131 047131 047 139 677139 677
ProvincesProvinces 108 108 899899
121 099121 099 136 925136 925 161 476161 476 181 130181 130 199 704199 704 216 344216 344
Equitable ShareEquitable Share 98 39898 398 107 460107 460 123 457123 457 144 743144 743 159 971159 971 173 852173 852 186 392186 392
Conditional grantsConditional grants 10 50110 501 13 63813 638 13 46813 468 16 73316 733 21 15821 158 25 85325 853 29 95329 953
Local GovernmentLocal Government 5 5365 536 6 5206 520 8 7068 706 12 39012 390 14 24514 245 15 91615 916 17 09117 091
Equitable ShareEquitable Share 2 4152 415 3 1843 184 4 1874 187 6 3506 350 7 6787 678 8 6438 643 9 3659 365
Conditional grantsConditional grants 3 1213 121 3 3363 336 4 5194 519 6 0396 039 6 5686 568 7 2727 272 7 7267 726
Total AllocationsTotal Allocations 187 187 613613
215 324215 324 244 721244 721 284 359284 359 315 972315 972 346 667346 667 373 112373 112
Percentage sharesPercentage shares
National departmentsNational departments 39,0%39,0% 40,7%40,7% 40,5%40,5% 38,9%38,9% 38,2%38,2% 37,8% 37,8% 37,4%37,4%
ProvincesProvinces 58,0%58,0% 56,2%56,2% 56,0%56,0% 56,8%56,8% 57,3%57,3% 57,6%57,6% 58,0&58,0&
Local governmentLocal government 3,0%3,0% 3,0%3,0% 3,6%3,6% 4,4%4,4% 4,5%4,5% 4,6%4,6% 4,6%4,6%Source: 2004 Budget Review
Division of Revenue
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Concurrency Concurrency
Division of revenue is determined according to s214 of Division of revenue is determined according to s214 of the Constitution and coordinated through multi-year the Constitution and coordinated through multi-year budget processbudget process
Provincial and local equitable shares are unconditional Provincial and local equitable shares are unconditional (authority for use, expenditure and accountability vest (authority for use, expenditure and accountability vest in provinces and municipalities).in provinces and municipalities).
Municipal functions are primarily funded through own Municipal functions are primarily funded through own revenue (rates, user charges, and RSC levies) and revenue (rates, user charges, and RSC levies) and transferstransfers
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ConcurrencyConcurrency
7.7. Provincial and municipal performance is subject to Provincial and municipal performance is subject to national policy and legislation (norms and national policy and legislation (norms and standards) and subject to powers of monitoring, standards) and subject to powers of monitoring, support and intervention.support and intervention.
8.8. In practice, spheres coordinate their distinctive In practice, spheres coordinate their distinctive responsibilities through intergovernmental responsibilities through intergovernmental institutions and practices in order to forge coherent institutions and practices in order to forge coherent government and equitable service provision for the government and equitable service provision for the country as a whole!!country as a whole!!
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Intergovernmental relations: current Intergovernmental relations: current realityreality
Current reality:Current reality:1.1. Intergovernmental processes Intergovernmental processes
largely informallargely informal2.2. Certain statutory structures Certain statutory structures
existexist3.3. Pressure on all three spheres Pressure on all three spheres
to accelerate delivery of to accelerate delivery of servicesservices
4.4. Emphasis on performance Emphasis on performance and effective coordinationand effective coordination
5.5. Policy issues of the day cut Policy issues of the day cut across jurisdictional across jurisdictional boundariesboundaries
6.6. Stronger, spatially integrated Stronger, spatially integrated forms of cooperation required forms of cooperation required
Risks:Risks:1.1. Informality means Informality means
intergovernmental relations intergovernmental relations can become discretionarycan become discretionary
2.2. Lack of certainty about Lack of certainty about inclusion of local governmentinclusion of local government
3.3. ““Joint” decision-trapJoint” decision-trap
4.4. High transaction costs of High transaction costs of coordinationcoordination
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Key programs 2005Key programs 2005
Intergovernmental Relations Framework legislationIntergovernmental Relations Framework legislation Process (lead by Presidency) to align development Process (lead by Presidency) to align development
priorities of all three spherespriorities of all three spheres Supporting provinces to develop Provincial Growth and Supporting provinces to develop Provincial Growth and
Development Strategies (PGDS) and municipalities to Development Strategies (PGDS) and municipalities to review Integrated Development Plans (IDP)review Integrated Development Plans (IDP)
IDP Hearings (commencing March 2005) will focus on IDP Hearings (commencing March 2005) will focus on engagement with Government priorities and municipal capability to engagement with Government priorities and municipal capability to implement IDPimplement IDP
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Lengthy, inclusive consultation in Lengthy, inclusive consultation in GovernmentGovernment
2003 June 2004
Cabinet
Committee
Cabinet
approval
Cabinet
Workshop
Nov 2004
Cluster (2)PCCMinMECBudget Coun.Written inputs
Premiers wkpLG MinMECPCC
Version 1 Version 2 Published Version
Version ofBill
10YR ELECTION
Certified &
introduced
Jan/Feb2005
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1. Objectives1. Objectives
Promote and FacilitatePromote and Facilitate::
a)a) Coherent Government;Coherent Government;
b)b) Co-ordination in the implementation of policy Co-ordination in the implementation of policy and legislation;and legislation;
c)c) The effective provision of services;The effective provision of services;
d)d) Monitoring the implementation of policy and Monitoring the implementation of policy and legislation; andlegislation; and
e)e) Overall realisation of national priorities.Overall realisation of national priorities.
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1. Scope1. Scope
1. Scope and content of Bill
•Executive government•Institutional Framework•National, Provincial & Local Gvt•Promote and facilitate IGR•Integration•Dispute Resolutions
2. Section 41(2) of the Constitution
•Structure and Institutions•Settlement of Disputes
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Persuasive challenges facing Persuasive challenges facing our peopleour people
Redress Apartheid legacy:
• Poverty
• Underdevelopment
• Marginalisation
Challenge best addressed by all spheres working together15
2. Scope and Application …2. Scope and Application …
POA
Budget &DOR
Concurrent priorities
Priorities
PCC
Budgetstructures
MinMECs
Premier’s &District forums
Institution
Bill
IGFRA
Bill & Acts
Legislation
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3. Overview of chapters3. Overview of chapters
Chapter OneChapter One: Interpretation, Application and Object of Act: Interpretation, Application and Object of Act
Chapter TwoChapter Two: Intergovernmental structures: Intergovernmental structures
Chapter ThreeChapter Three: Conduct of Intergovernmental Relations: Conduct of Intergovernmental Relations
Chapter FourChapter Four: Resolution of intergovernmental disputes: Resolution of intergovernmental disputes
Chapter FiveChapter Five: Miscellaneous: Miscellaneous
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Chapter One: Interpretation, Chapter One: Interpretation, Application and Object of ActApplication and Object of Act
Applies to government and Organs of State of executiveApplies to government and Organs of State of executive Does not apply to:Does not apply to:
ParliamentParliament LegislaturesLegislatures Courts and judicial OfficersCourts and judicial Officers Institutions established in terms of Chapter 9Institutions established in terms of Chapter 9
(eg. Public Service Commission, etc)_(eg. Public Service Commission, etc)_
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Chapter Two: Intergovernmental Chapter Two: Intergovernmental structuresstructures
1.1. Chapter provides a broad legal framework for Chapter provides a broad legal framework for existing non-statutory structuresexisting non-statutory structures
2.2. Defines primary purpose of each institutionDefines primary purpose of each institution
3.3. Clarifies linkages between intergovernmnetal Clarifies linkages between intergovernmnetal structures are broadly defined (especially structures are broadly defined (especially between MinMecs, Budget Council and PCC)between MinMecs, Budget Council and PCC)
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Intergovernmental structures:Intergovernmental structures:status quostatus quo
STATUTORY
NON-STATUTORY
(5) National structures
1. SAPS2. Budget Council3. Budget Forum4. Council of Education Ministers5. IDMC (Disaster management)
(12) National(11) Provincial District Not Defined
Majority of forums are non-statutory in all spheres20
Members
Focus
National PCCNational PCC
PresidentCoordinating Ministers
Premiers
SALGA Chairperson
• High level policy priorities
(POA) and monitoring of
implementation
• Hear views of provinces
and Local Government
•Analysis of formal trends in resource
mobilisation and expenditure
•Identified issues from
MinMecs/provinces/ organised LG
Currently: non statutory comprises senior executive authority
21
National MinMECNational MinMEC
Members
Focus
Minister
MEC’s
(SALGA)
Strategic plan for sector
Sector policy (POA)
Sector expenditure and performance
Referrals to PCCKey forum servingconcurrency.Majority are non-statutory
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Premiers ForumPremiers Forum
At least MEC for Local Government
Metro & District mayors
Members Focus
Coordinate strategic priorities for Province
Matters arising from/to PCC
Implementation of policy and legislation (POA)
Many provinces have established similar forums.All are non-statutory
Premier
Organised Local Government
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District ForumDistrict Forum
District mayor
Local mayor
Members
Focus
Matters arising from/toPremiers Forum
Service delivery, economicdevelopment and districtco-ordination
Implementation of policyand legislation (POA)Variety of similar forums
established. All arenon-statutory
Strengthen role of a District Municipality24
Inter-municipality/provincial Inter-municipality/provincial ForumsForums
Focus
• Sharing of Best Practice and Lessons
• Intergovermental relations
Opportunities currently
not utilized effectively!
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Chapter Three: Conduct of Chapter Three: Conduct of intergovernmental relationsintergovernmental relations
1.1. Organs of State must assist and support one Organs of State must assist and support one another as contemplated in Constitution and another as contemplated in Constitution and National LegislationNational Legislation
2.2. Chapter also provides for Chapter also provides for implementation implementation protocolsprotocols to assist the division of responsibilities to assist the division of responsibilities between spheres in key areas of national priority between spheres in key areas of national priority in spatially integrated waysin spatially integrated ways
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Chapter Four: Resolution of Chapter Four: Resolution of intergovernmental disputesintergovernmental disputes
1.1. Organs of State must seek to resolve own disputes without Organs of State must seek to resolve own disputes without resorting to judicial proceedingsresorting to judicial proceedings
2.2. Default measure (Chapter not apply to disputes concerning Default measure (Chapter not apply to disputes concerning interventions in terms of Section 100 or Section 130 of the interventions in terms of Section 100 or Section 130 of the Constitution)Constitution)
3.3. Compliance with procedures mandatoryCompliance with procedures mandatory
4.4. Non-compliance precludes court actionNon-compliance precludes court action
5.5. Facilitation role for Minister of Provincial and Local Government Facilitation role for Minister of Provincial and Local Government or MEC for Local Governmentor MEC for Local Government
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Chapter Five: MiscellaneousChapter Five: Miscellaneous
1.1. Main purpose of chapter is to provide for reporting, Main purpose of chapter is to provide for reporting, regulation and other incidental mattersregulation and other incidental matters
2.2. Ministerial Report to Parliament in both Houses with Ministerial Report to Parliament in both Houses with regard to, inter alia:regard to, inter alia:
General conduct of IGR in RepublicGeneral conduct of IGR in Republic Incidence and Resolution of Intergovernmental Incidence and Resolution of Intergovernmental
DisputesDisputes
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Thank youThank you
Contact:Contact:
Mr D Powell: Deputy Director-General (Acting): Mr D Powell: Deputy Director-General (Acting): Governance, Policy and ResearchGovernance, Policy and Research
(012) 334 0833(012) 334 0833
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