Department Budget: briefing

Meeting report

FOREIGN AFFAIRS PORTFOLIO COMMITTEE
12 March 2003
DEPARTMENT BUDGET: BRIEFING

Chairperson: Dr P Jordan (ANC)

Documents handed out:
Foreign Affairs Budget 2003: Vote 3- programmes and allocations
Department Presentation

SUMMARY
The Department briefed the Committee on its budget, financial performance and financial strategies. Plans for the restructuring of the Department had been approved but the funds required to carry this out were not forthcoming. A freeze has been put on new appointments, and the Department has decided to prioritise its operations and missions in Africa. The Committee discussed a number of issues arising from the presentation, the status of the Department of Foreign Affairs' Training Institute and the allocation of funds for specific projects and operations.

MINUTES
The Acting Director-General, Mr A Minty provided a brief outline of the strategic objectives of the Department of Foreign Affairs, the current status in terms of global trends and developments and the Department's priorities for 2003-2004.

Mr Minty called attention to the changes that had taken place in the world in the last ten years. He specifically drew attention to the current destabilisation of international groupings such as the United Nations, the decline of multilateralism, and a renewed emphasis on national interests. In terms of economic world trends, he reported that that last ten years had seen a reduced division of the North and South as well as a global increase in budget deficits. He referred to the serious economic consequences of the crisis in Iraq, and the United States' moving on to a war footing The US had experienced a 2.2% negative growth rate last year.

Mr Minty discussed the threats posed in Europe by a radical shift to the right and the growth of racism on the continent as well as the emerging alliances between Great Britain and the US as well as France and Germany. By contrast, although Japan had experienced negative economic growth of 0.5%, Asia in general was growing in economic stature, characterised in particular by the growing economic strength of China and India.

In Africa, Mr Minty noted an emphasis on the African Union, NEPAD and partnership with the G-8 powers, as well as the continent's increased resolve to combat conflict and abuses of human rights. On the negative side, he reported the growth of infectious diseases on the continent and the emergence of acts of terrorism in East Africa. Furthermore, he warned against the catastrophic results on Africa's development by a war in the Middle East and its effect on the oil price.

Mr Minty drew attention to the successes of South Africa in global interactions in the past few years, specifically referring to South Africa's work in the Non-Aligned Movement, Burundi, Palestine and Ireland as well as President Mbeki's role in the leadership of the Commonwealth. He reported that, as a result of South Africa's efforts, nations of the South had increased representation in the G-8.

Mr Minty then handed over to Mr M Apleni: Deputy Director-General: Corporate Services, to outline the Governmental Planning Process. After a brief discussion of the upcoming steps needed before the submission of the Department's budget in August, Mr Apleni drew the Committee's attention to the five programmes tabled in the appended document.

He discussed the performance of the Department's budget. In 2000-2001 the Department spent only 91% of its budget, saving R 149 million. Due to the devaluation of the Rand however, the Department was granted an increase of 34% of their budget, swelling it to a total of R 2.2 billion. Of this, the Department under-spent by R 129 million. Although the figures for the current financial year had not been audited, it was projected that the Department would under-spend by R66 million, and a rollover would be requested.

Mr Apleni then briefly ran through a breakdown of foreign missions, and the personnel employed by the Department.

Mr Minty stated that, although plans for the restructuring of the Department had been approved, the funds required to carry this out were not forthcoming. As a result a freeze had been put on new appointments, and the Department had decided to prioritise its operations and missions in Africa.

Discussion
Dr Jordan asked why the Department required funds for a new headquarters in Pretoria.

Mr Minty responded that under the current system personnel were housed in separate buildings, resulting in a lack of efficiency as well as morale. It was thought that operations could be improved if the Department worked from a single facility.

Mr Hendrikse (ANC) asked where the input of the Portfolio Committee would come into the Department's planning process.

Mr Minty responded that there was no formal stipulation on this, but the process had to be completed promptly in order to meet the deadline of August.

Ms Hajaij (ANC) asked Mr Minty for details regarding the expenditure of R147 million on 'Special Projects' as outlined in the presentation, as well as clarification on the gender breakdown of personnel employed by the Department.

Mr Minty replied that the finds had been allocated for the African Renaissance Fund. Regarding the gender breakdown, he undertook to compile the figures for the Committee.

Dr Jordan stated that gender breakdowns should be provided as a matter of course and not as an afterthought.

Ms Hajaij later refined her request by asking for details on the level at which women were employed by the Department.

A Member requested details of the Department's preparations for a possible war in Iraq in the budget.

Mr Minty stated that a war would not affect the budget in terms of an active engagement in the conflict. He anticipated that the major economic consequence would be a large increase in the fuel price, which would effectively cripple plans for NEPAD. At this moment the US was looking to turn to Africa for an increased proportion of its fuel supplies.

Dr B Geldenhuys (NNP) said that while he understood the need for the Department to be housed in a single building, he proposed that renting an existing building would be far cheaper than building one specifically for this purpose.

Mr Minty defended plans to erect a new building. He said that there were requirements specific to the Department that are not currently available in Pretoria. He explained that, in a public-private partnership, the costs could be paid off over 20 to 25 years. He also defended the expenditure, saying that facilities could be rented out at a profit, and finally that the use of a single building would save the Department large sums in security and the transport of documentation and personnel. He promised a detailed report on the matter.

Ms Mahomed raised the issue of problems currently experienced in the Department's Training Institute, asking whether the Institute was in a position to turn out suitable people.

Mr D Sithole (ANC) followed this up by noting with annoyance that the Committee had been told a year previously that the Institute was in the process of change, and still no improvements could be seen. He described the Institute as being "in tatters".

The discussion turned briefly to the question of Governmental Lounges being closed by the ACSA in Durban and Cape Town. The redesign of lounges in Johannesburg would require that the Department contribute some funds in order to purchase the civilian lounge which, due to its proximity to the Government Lounge, was seen to constitute a security threat.

Mr Makanda stated that he would like to see the Training Institute provide a pool of cadets from which the Department could select recruits. Furthermore, he asked for details of the course content and its planning. Lastly, criticised the under-representation of Coloureds in the Department.

Mr Minty indicated that he would make the curriculum available to the Committee. He outlined a number of initiatives being brainstormed regarding the Training Institute:
-The possibility of integrating courses with those already currently underway at nearby institutions.
-Contracting a university to prepare and teach a course in International Relations, specifically for the Institute.
-Increased Information Technology training. Currently, the courses offered by the institute are prepared and taught by senior officials within the Department who have the required practical experience to know what needs to be taught to recruits.

Members asked the Department for further details on their increased activity in the Far East.

Dr Sooklai: Deputy Director-General of Asia, Australasia and the Middle East, stated that trade with the Far East had increased substantially in the previous financial year, and that, furthermore, 50,000 tourists were expected from China alone in the forthcoming year.

Mr Minty commented on the cost of foreign missions, stating that further analysis was required to ascertain whether money would be better spent opening new missions or strengthening those existing.

The meeting was adjourned.