report to the portfolio committee on higher education and training 18 january 2011
TRANSCRIPT
REPORT TO THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING
18 January 2011
Background- process in brief DHET published a proposal in April 2010NSA did across the country consultations on the
proposal and advised the MinisterDHET further advised the Minister taking into
account the outcomes of the consultation processMinister applied his mind and weighed the
various options presented to himMade a decision and announced on the 9th
November 2010
Purpose of the landscape processLandscape process is not meant to
address performance of SETAs, although this may have impact due to efficiency gains
It is a process related to (re)certification of SETAs as per the SDA
The SETA recertification process is provided for in the Skills Development Act; and requires the Minister to re- establish the SETA’s every 5 years
Principles guiding the landscapeMinister has indicated that ‘SETAs are here to stay’
Landscape proposals respond to thisQuestion is in what form and doing what
Responds to performance related issuesIt is based on the application of the criteria
provided for in the Skills Development Act, 1998, Other broader considerations informed by the
imperative of creating a post-school system aimed at addressing the skills needs of our country, for both the youth and adult sectors of our population.
Principles guiding the landscapeEnsuring the broad coverage of skills development in
all key sectors of our economy, Ensuring that each SETA is located as close as
possible to its relevant economic sector. Introduced changes should not disrupt or have
minimal disruption (where absolutely necessary) the closeness of each SETA to its relevant economic sector.
Considerations were also informed by the New Growth Path recently adopted by government, as well as the imperatives of the Industrial Policy Action Plan 2 (IPAP 2) and other government priorities.
Financial viability of the SETA
New landscape18 SETA’s remain the same or have minimal sic
code transfers as follows;12 SETA’s are to be reestablished with no
change6 SETA’s are to be reestablished with sic code
transfers; 2 SETA’s are affected by insignificant change
based on receiving sub sectors from MAPPP; 3 SETAs are affected by significant changes;The PSETA is re-established for a year pending an
inter ministerial task team process that Ministers Nzimande and Baloyi have initiated to investigate the viability and operational model of the PSETA.
Rationale for PSETA approachPublic sector contribution to levy
SDA says they are exemptMakes provision for 1% of wage bill to be
budgeted for trainingSome departments and spheres of government
‘contributes’ to SETAs administration budget – not consistent
History of PSETA teaches the complexities associated with participation of the public sector in the SD
Proposals to address the PSETA Change legislation – public sector pays the levyIn effect it means channeling the 1% stipulated in
the SDA through to skills development processesAlso means all other agencies, whose 80% or
more of their income comes from voted funds will start paying the skills levy
Improve and enforce contribution of other departments to either a SETA relevant to their economic activity or PSETA
Remove PSETA from DPSA to operate alongside other SETAs
Clarify which skills sets in the public sector will be catered for by the PSETA vs. other SETAs
Addressing SETA performance - challenges The challenges are widely known, i.e. from
the following sources for e.g. Nedlac, Singizi, HSRC, departmental internal reports
Portfolio Committee reports and experiences based on engagement with SETAs
AG reportsIn future we also have to take advantage of
all the info from these sources to ensure that
Addressing SETA performanceSignificant changes are being made in the
SETAs to address performance, i.e.There are immediate and short term measures
that the Department can institute to address some of the challenges, as well as improve its oversight responsibilities
Other measures are medium to long term and some may require legislative changes
Ministerial Task Team The Minister has appointed a task team to advice on how to
improve the functioning and performance of SETAs. The team will amongst other things look at: refocusing SETA activities through the new National Skills
Development Strategy (NSDS) III, initiating a process to strengthen the SETA Sector Skills
Plans (SSPs) and aligning these to much tighter Service Level Agreements and reporting mechanisms;
Ensure we build the capacity of the QCTO to be the main accreditor of training providers so that SETAs concentrate on their role as facilitators of education and training in the workplace
Improve for the future the current model Constitution of SETAs as best practice guideline to improve accountability and performance of SETA boards and governance;
Improve cooperation between and among SETAs
Refocusing training Through NSDS III
strengthening the relationship between public colleges and universities and the SETAs, as well as with employers.
achieve significant increases in qualifications and skills to support priorities and initiatives such as the New Growth Path, the Industrial Policy Action Plan, the Human Resource Development Strategy and, in particular, sector development plans
encourage and actively support the integration of workplace training with theoretical learning
Address the relevance, quality, cost and access to training facilitated in the SETAs.
Ensure that the training facilitated by SETAs leads to a qualification, move away from bias towards short courses and skills programmes
Addressing governance of SETAs Introducing independent chairpersons Limiting the number of Board meetings to a
reasonable number Reducing the size of Boards Participation of the Minister in the appointment
of Board members Having a standard remuneration rate for Board
and committee members Holding accountable Board members who do not
carry out their duties as required The Minister’s participation in the appointment of
SETA CEOs and other members of the Executive Committees of Councils, in line with similar practices in relation to public entities.
Improving capacity in the DHET Monitoring of SETAs and their functions To be informed by all of the above (and more). Should ensure that government through DHET
plays its oversight role Improving the performance management system
to encourage, foster and promote the continuous improvement of the SETAs
There is an expectation that, as a collective, the Department and the SETAs should deliver sector specific skills interventions that help achieve the goals of the NSDS III, address employer demand and deliver concrete results and make a decisive impact
Conclusion How do we in future collaborate with PC to
take advantage of the information they gather to assist the department and SETAs improve the performance