South African Local Government Association (SALGA)
Comments on the Skills Development Bill

1. INTRODUCTION
SALGA is committed to the success of South Africa's Skills Development Strategy and broadly supports the content of the Skills Development Bill developed by the department of Labour. Along with the Local Government Education and Training Board that includes the Department of Constitutional Development and organised Labour, we have worked over the past months to mould the proposed legislation into an appropriate vehicle for raising the human resource capacity of local government. If local government is to successfully fulfil its new mandate of development and delivery, a human resource development environment, and an entirely new training system will have to be established and maintained.

SALGA strongly supports the notion of developing an integrated training strategy for councillors and officials through the local government SETA that will result in a democratic, developmental and economically viable local government sector. In the past the belief was held that training needs of councillors and officials were vastly different. Recently, it is broadly acknowledged that the training needs of councillors and officials often overlap. This is particularly true when considering the training needs of local government as a distinct sphere of government charged with the tasks of development and delivery.

In this context it is important that the training needs of councillors and officials be considered within the context of the Skills Development Strategy and the South African Qualifications Authority. Training must ensure that both councillors and officials are given the tools to build and sustain democratic, developmental and accountable local government.

A local government SETA will ensure that training received by councillors and officials will be accredited. Each training course attended becomes a stepping stone on a logical career path for each individual. This approach, we believe, will over time raise the human resource capacity of local government. It will also fall in line with the national training initiative that provides for career pathing and portability of skills to all individuals.

There are, however, some remaining issues that are of particular concern to SALGA that we wish to raise with the Portfolio Committee on Labour.

2. THE NATIONAL SKILLS AUTHORITY
2.1 Representation of SALGA on the National Skills Authority (NSA)
The National Skills Authority as described in the Bill is the body that oversees the work and functioning of the various Sector Education and Training Authorities (SETAs). The NSA will also administer the National Skills Fund. The National Skills Fund will collect in 20% of the revenue collected from all SETAs and has the responsibility of distributing those funds to the most disadvantaged areas of human resource development in the country for additional provision of education and training. It appear's obvious that local government, that spans many industry sectors, is well placed to identify and prioritise areas of disadvantage and should thus of necessity be represented on the NSA.

The NSA comprises 5 State, 5 employer, 5 employee representatives as well as other community and interest groupings. If one considers that there are currently at least 20 sectors planning to establish SETAs, it is clear that all sectors will not be represented on the NSA. In addition, it was agreed at NEDLAC that the 5 employer seats should be reserved for private employers.

SALGA and the Local Government Education and Training Board (which is represented by SALGA, organised labour in the form of SAMWU and IMATU, and the Department of Constitutional Development) agree that SALGA should be one of the state representatives as the representative of local government. SALGA supports this view.

SALGA is also concerned that the Bill does not require the Minister of Labour to consult with other Ministers on matters relating to a SETA in their sector. The role of the Ministry for Provincial Affairs and Constitutional Development within the framework of the Skills Development Bill, is in our mind, rather unsatisfactory.

2.2 Constitution of the NSA
It is SALGA's understanding that the NSA is to act as an advisory body to the Minister. Clause 7 (5) refers to a "supporting vote of atleast two thirds of the Authority's members is required for advising the Minister on regulations to be made". It is not clear why it requires a two thirds majority to do so in terms of clause 7(5). It seems reasonable that the Minister would be interested to hear the recommendations or advice of the majority view of the NSA on the issue. Perhaps SALGA is not clear on the rationale behind such a decision and would seeks clarity in this regard.

3. SECTOR EDUCATION AND TRAINING AUTHORITY
3.1 Establishment of a SETA
SALGA fully supports the establishment of a SETA for local government. SALGA, as a stakeholder of local government has been involved centrally in the process of moulding this legislation to allow local government training to utilise the Skills Development Strategy as a vehicle for transforming local government in line with the National Framework.

3.2 Functions of a SETA
SALGA broadly agrees with the functions of a SETA but asserts that the legislation should not be prescriptive or bind a SETA to only those functions. If a SETA is able to perform other functions not yet envisaged that would enhance the quality of outcomes of that SETA and that are in line with the ACT, then it should be allowed to do so. An enabling phrase that would allow for this would be useful.

3.3 Chambers of a SETA
SALGA envisages provincial Chambers to work on the implementation, monitoring and evaluation of much of the actual training. We support the notion of centralising the responsibilities of a SETA to the national structure. We believe that this will allow for equitable redistribution of funds across provinces to ensure that adequate provision of training occurs throughout local government in the various types of municipalities.

3.4 Constitution of a SETA
SALGA agrees that the ACT should set out the framework for a Constitution of a SETA. This framework should be enabling. It should provide guidelines for the minimum requirements of a SETA, but should allow it to expand beyond its minimum requirements. For example, the ACT cannot prescribe through a standard constitution that all sectors should engage in employment services. However, should the local government SETA see scope for the co-operation between some municipalities and the Department of Labour around employment services, the Constitution should not be so prescriptive that it would prevent such an activity for the SETA.

4. FINANCES OF THE SETA
4.1 The Ability of Local Government to pay the 1% Levy as prescribed by the Bill
SALGA is cognisant of the fact that the clauses relating to the levy have been removed from the Skills Development Bill and will be contained in a separate Skills Development Money Bill. However, the issue of ability to pay the levy is central to discussions around the success of a local government SITA and the success of local government training as a whole. SALGA is also not debating the amount of the levy, but raising questions and possibilities to ensure payment of 1% should local government find that it is not able to pay all of it.

SALGA recognises that if South Africa is seriously going to address the lack of human resource capacity within local government, far' more resources are needed for education and training than currently exist. In light of this, it supports the figure of a 1% levy to fund local government training. The levy amount for each SETA is calculated as 1% of an employers payroll per month. This is a much higher levy than we currently collect through the two existing local government training levies. If 1% of payroll is collected it will allow for more intensive and widespread training to take place throughout the local government sector.

However, the currently reality is that municipalities may not be able to afford the 1% levy. The Skills Development Bill goes some way in addressing this by introducing some transitional arrangements for phasing in the levy in local government over 3 years. This does not, however, put all our concerns to rest. Firstly, there is no guarantee that the whole of local government will be in a position to pay the levy in 3 years. Secondly, even if that does happen, the question remains of how local government will fund training for the next 3 years whilst the full levy is not flowing into the SETA. As the employer representative this is a grave concern for us.

A mechanism needs to be sought that will cater for the shortfall from municipalities unable to meet the 1% as a result of the realities facing local government. We need to consider where the shortfall of funds could be derived from. We submit that it could come in the form of a National Grant from the Department of Constitutional Development, as a portion of the Equitable Share of Revenue to Local Government (which would have to be increased accordingly), or from the National Skills Fund.

SALGA is of the view that the transitional measures for phasing in the levy is at the very least necessary, but will not provide the answer to the solution. In the same way a mechanism to allow for exemptions is essential and must be allowed for in terms of the legislation. Exemptions should not be left to the Minister alone but need to include the inputs of both employer (SALGA), and employee (SAMWU and IMATU) on the issue.

5. LEARNERSHIPS
SALGA supports the introduction and development of learnerships in local government broadly, though other methods of training for councillors through the SETA will be more appropriate.

6. SKILLS PROGRAMME
A skills programme, according to the Bill is one that is occupationally based, will constitute a credit towards a qualification registered in terms of the National Qualifications Framework (NQF), uses accredited training providers, and complies with prescribed requirements. Any person that has developed a skills programme may apply for a grant to a SETA or a subsidy from the National Skills Fund.

SALGA has already started considering the type of accredited training that could be funded for councillor training through a SETA. SALGA envisages skills programmes for local government councillors initiated, guided and funded through the local government SETA.

7. EMPLOYMENT SERVICES
The Department of labour must establish labour centres and appoint any person in the public service to these centres. The centres are to provide employment services for employees, employers and training providers. The centres must register work seekers, register vacancies and work opportunities, assist prescribed categories of persons with special education and training and try to find them employment through special programmes. The centres must support communities to start income generating and training projects for prescribed categories of persons.

It will be fruitful to explore local government's relationship, if any, to the employment centres of the department of labour. It may be possible that some of these centres be hosted within our municipalities. However, this should not become an obligation placed on municipalities, but an agreement entirely based on the will of a municipality. It also cannot be an unfunded mandate. The necessary financial, human and infrastructural resources would have to be considered and provided by the Department of labour should such an agreement take place. The important point to be made at this stage is that the ACT should not preclude such explorations in the future.

8. CONCLUSION
The transitional arrangements contained in the Bill relating to Local Government, relate primarily to financing local government training. The comments here are contained in the section above dealing with ability to pay the 1% levy.

Although SALGA has made comments on many aspects of the Bill in this submission, in summary our two primary concerns revolve around local government representation on the NSA and the ability of local government to pay the 1% levy. It is critical to the success of local government training that the Portfolio Committee on Labour considers these concerns and we trust that you will consider them in a very serious light.