VOTE 30: ENVIRONMENTAL AFFAIRS MTEF for the years

2014/15 - 2015/16 – 2016/17

1

Ms Nosipho NgcabaDirector GeneralDepartment of Environmental Affairs15 October 2013

Presentation Outline MTEF 2014/15 – 2016/17

- Indicative Allocations per programme- Indicative Allocations per economical classification- Notes to Indicative Allocations - National Treasury: Proposed Cuts/Savings - Additional Funding Requests over the MTEF

2

Indicative Allocations per Programme

3

Programmes 2014/15 2015/16 2016/17 % Growth

1. Administration

R’000

630 158

R’000

661 058

R’000

699 455 5.8%

2. Legal, Authorisations and ComplianceStrategic Infrastructure Projects (SIP -Authorisation processes)

113 77832 000

120 34629 000

127 8910*

6.3%(100.0%)

3. Oceans and Coasts 388 432 424 617 448 254 5.6%

4. Climate Change and Air Quality 247 708 260 149 274 582 5.5%

5. Biodiversity and Conservation 598 870 635 570 669 968 5.4%

6. Environmental Programmes 3 494 347 3 918 523 4 128 326 5.4%

7. Chemicals and Waste Management 72 210 79 222 83 997 6.0%

Total 5 577 503 6 128 485 6 432 473 5.0%

• National Treasury initiated baseline reduction for the Integrated Permitting Systems (non-recurrent project)

• Treasury was approached to clarify the impact of the cut

Indicative Allocations per economical classification

4

Programmes 2014/15 2015/16 2016/17 % Growth

1. Current Payments

R’000

1 967 841

R’000

2 069 079

R’000

2 157 918 4.3%

Compensation of employeesGoods and Services*

697 6001 270 241

747 3001 321 779

796 6231 361 295

6.6%3.0%*

2. Transfer Payments 3 547 219 3 994 030 4 205 714 5.3%

Departmental Agencies Foreign Governments and International OrganisationPublic Corporations and Private EnterprisesNon-Profit InstitutionsExpanded Public Works Projects*

1 236 47212 890

013 825

2 285 162

1 372 05313 485

300 00012 932

2 295 560

1 444 77214 200

315 90013 617

2 417 225

5.3%5.3%5.3%5.3%5.3%

3. Payments for Capital Assets 62 443 65 376 68 841 5.3%

Machinery and Equipment 62 443 65 376 68 841 5.3%*

Total 5 577 503 6 128 485 6 432 473 5.0%

*Included in Goods & Services is small contractors for clearing AIS +-R200 Million per annum and New Building Unitary payments +-R120 Million per annum * Included in Capital Assets is Eco Factories budget of +-R43Million and IT infrastructure of R4million per annum.

* Goods and Services Analysis per item

5

Programmes 2014/15 2015/16 2016/17

Fixed and Earmarked Allocation:Office AccommodationUnitary Payment new Departmental BuildingInternational Membership FeesCommunication Systems and Data lines: SITA Auditors: External & InternalStrategic Implementation Programme (SIPS)Research and development: Oceans and CoastsLaboratories: Occupational Health & SafetyWildlife Information Management Unit (new)SA Algoa: Manning and OperatingSA Agulhas II: Manning and OperatingAntarctica & Islands: Fuel, Groceries, Satellite, etAntarctica & Islands: Helicopter ServicesEPWP: Small Projects Alien Vegetation clearing (contractors)

R’00040 000

120 00015 98640 00010 56532 00020 00010 00010 60045 00093 41212 54032 897

200 000

R’00040 944

120 00016 78641 16411 09429 00020 000

011 00048 00098 17213 16734 542

200 000

R’00048 991

120 00017 62543 22211 64830 00021 000

011 55050 400

102 97614 76636 269

200 000

Total Fixed and Earmarked Allocation 683 000 683 869 708 447

Budget available for other operational expenses, inspections, personnel development, stationary, travel & subsistence, advertising, bursaries,other environmental agreements/stakeholders

587 241 637 930 652 848

Total Goods & Services 1 270 241 1 321 799 1 361 295

Proposed Cuts by National Treasury over the MTEF

6

Item 2013/14R’000

2014/15R’000

2015/16R’000

2016/17R’000

1. Compensation of Employees

0 (17 440) (28 024) (19 915)

2. Travel and Subsistence 0 (7 700) (11 400) (15 100)

3. Corporate Services 0 (17 788) (28 736) (30 175)

4. Green Fund* (300 000) 200 000 (100 000) 0

Total (300 000) 157 072 (168 160) (65 190)

• Previous years baseline cuts of 1%:2%:3% were already effected by NT. These additional proposed cuts & impacts were discussed with NT 31 July 2013.

• *Balance remaining for green fund budget is +-R200 Million per annum

Notes to Indicative Allocations & Spending pressures over MTEF

Indicative Allocations-Compensation of Employees growth based at 6.6% cost of living adjusted per year -Use of Goods and Services growth at 3% (because of 1%, 2% & 3% annual cuts)-Budget for integrated permitting system reduced on outer years. Impact discussed with National Treasury-Allocations to Departmental Agencies, and Expanded Public Works Projects (overall increase of 5.3%)

Identified Spending Pressures over MTEF Inflationary increases:-Vessel operating cost -Helicopter services-Antarctica and Islands Research - fuel and supplies -Funding changes to the establishment• increased capacity, coordination, strategic infrastructure support, monitoring, enforcement & waste management functions

- Funding increases in procurement of goods & services

7

Additional Funding Requested

8

Programme Additional Funding Proposal 2014/15 2015/16 2016/17

1. Administration Green Solar Electricity Stations

Spatial Data Infrastructure for the Environmental Sector

Implementation of Integrated Permitting System

R’000

60 000

16 500

35 000

R’000

60 000

26 000

20 000

R’000

60 000

18 000

15 000

2. Legal, Authorisations and Compliance

Deployment of Environmental Management Inspectors at South African ports of entry and exit

20 040 21 750 24 200

3. Oceans and Coasts

Baseline shortfall to cover SA Agulhas II and Antarctic Support

Replacement of Gough Base Building

New Research Laboratories: Marine: Cape Town

34 597

15 000

50 000

36 603

90 000

150 000

38 726

40 000

100 000

Additional Funding Requested....cont

9

Programme Additional Funding Proposal 2014/15 2015/16 2016/17

4. Climate Change and Air Quality Management

South African Weather Services :Implementation of the ICT Master Systems

- Skills Development Plan & implementation for weather and climate impact science-Improved Climate Data Management Systems - Sector Specific weather and climate applications

R’000

57 370

10 000

01 900

R’000

33 611

10 000

2 5559 300

R’000

34 420

10 000

6112 800

5. Biodiversity and Conservation

Rhino PoachingCITES COP 17: Hosting National Biodiversity Research Strategy implementation

Management Effectiveness – Protected areas infrastructure, community facilitation, Baseline adjustment for COE for Isimangaliso, updating permitting system and strengthening scientific services for non detriment findings, pilot projects for biodiversity economy interventions

Building Biodiversity Economy and Sustainable Use - National Compound Library,

40 00000

100 000

156 491

41 60090 00022 000

120 000

91 371

43 680 11 35018 000

150 000

41 316

Additional Funding Requested....cont

10

Programme Additional Funding Proposal 2014/15 2015/16 2016/17

6. Environmental Programmes

Environmental Protection and Infrastructure Projects - Famine Weed Programme (world’s worst invasive species) - Bio-security, - Youth Jobs in Waste Project - People and Parks Programmes - Development of a Platform for Investments in Ecosystem Services in Southern Africa

R’000

10 885

40 00070 000

012 420

R’000

14 265

47 000120 000

50 00011 681

R’000

18 274

56 500200 000

90 00012 382

7. Chemicals & Waste Management

Environmental Impact Assessments

Development of a standard for Waste Derived Fuel (WDF) and Standard Operating Procedure (SOP)

5 000

2 200

5 250

2 400

5 513

2 600

TOTAL 749 301 1 058 324 1 008 452

Public Entities MTEF Allocation2013/14 2014/15 2015/16 2016/17Baseline R’000 R’000 R’000

Financial Assistance 620 562 662 987 701 345 738 516iSimangaliso 28 790 30 610 32 128 33 831

SANParks 220 145 235 185 251 604 264 939

SANBI 208 684 224 703 237 190 249 761

SAWS 162 943 172 489 180 423 189 985

Infrastructure Grant

479 203 573 755 670 708 706 256

iSimangaliso 96 970 101 397 115 141 121 243

SANParks 306 843 375 854 478 304 503 655

SANBI 55 570 66 504 77 263 81 358

SAWS 20 000 30 000 0 0

TOTAL 1 099 765 1 236 742 1 372 053 1 444 772

11

-Percentage increases to 2014/15: 2015/16: 2016/17 12.23%: 10.99%: 5.3%-Overall increase in allocations for operations & infrastructure

12