Science and technology, as well as arts and culture, can drive economic development and improve the quality of life of people. By catering for the needs of the science/technology and arts/culture community, the Department of Arts, Culture, Science and Technology aims to contribute to increased economic development and a better quality of life. The transformation of the Department into an organisation that promotes life-long learning for all South Africans is a prerequisite for fulfilling this task. The diverse portfolio of the Department is divided into four programmes:

Arts and culture support the arts, culture and heritage of the country while promoting cultural diversity and economic opportunities.

Before 1994, there had not been a dedicated department for arts, culture, science or technology. The Department of Arts, Culture, Science and Technology embarked on several consultative processes following its establishment in 1994. These culminated in the White Paper on Arts, Culture and Heritage, and the White Paper on Science and Technology, both published in 1996.

In arts and culture, the challenges were to shift funding away from only serving the needs of a minority, and to explore the "forgotten" arts, culture and heritage of the majority. Greater efficiency and exploiting the economic potential of the arts were also required. Several Acts set the framework and established the institutions for transformation, in particular the Cultural Institutions Act of 1998 and the National Heritage Resources Act of 1999. The transformation has been substantially successful. Under the guidance of the new National Arts Council, the share of arts funding to the performing arts councils has declined from 67,7 to 32,4 per cent in 1999. Approximately 14 new institutions have been established, substantial amounts have been spent on new initiatives in arts and culture, and the Cultural Industries Growth Strategy has been launched. The recent crisis within the performing arts councils has led to the review of all previous policy guidelines and reports. The review led to a confirmation of past policy approaches, which are outlined under the appropriate programmes below.

Further developments in arts, culture and heritage will occur within the legislative and policy framework established over the last few years. Further policy development will focus on the monitoring and evaluation of institutions to strengthen institutional governance, and on extending access to arts education and training.

Language policy as mandated by the Constitution has received substantial attention in the Department and a draft language policy and plan for South Africa was submitted to Cabinet in 2000. The Department intends to finalise this policy and plan in 2001.

In the science and technology arena, a National System of Innovation was introduced as the policy framework. It focuses on the key role of technology in economic growth and supports innovation and technology diffusion. Developments since 1994 have seen the establishment of appropriate institutions, such as the National Advisory Council on Innovation, to advise the Minister on policy and the allocation of funding. There has also been substantial reform of the funding of science institutions such as the National Research Foundation and the Council for Industrial and Scientific Research. Funding now consists of core funding through a parliamentary grant and a second component allocated through a competitive bidding process from the Innovation Fund. The Innovation Fund focuses on the major themes of competitiveness, quality of life and environmental sustainability.

As with arts, culture and heritage, development work over the last number of years has firmly established the structures that will be further developed over the next three years. Emphasis on cooperation with African, especially SADC countries, is also growing. The statutory research institutions, primarily the science councils, are addressing regional cooperation and will report annually to the National Advisory Council on Innovation in this regard. Governance issues will, also be high on the agenda in the science sector – some legislative changes are envisaged.

In January 1997, the legislative mandate of the National Archives was transformed with the implementation of the National Archives of South Africa Act of 1996. The Act creates a national archival system and provides the foundation for a significant policy shift. The new national system is to incorporate nine provincial archive services, which will be assisted and guided by the National Archives. The period 1997 to 2000 has seen the National Archives preparing some provinces to receive national facilities and assisting others with building completely new facilities.

The Department’s budget is funded through two routes. The first is through the national budget and the second through the allocation process driven by the National Council of Innovation, which distributes the pool of money (sometimes called the "Science Vote") available for distribution to the science councils. Funding from the national budget comprises about 45 per cent of the departmental budget over the next three years.

The budget has seen strong real growth over the last three years, with nominal growth at an annual average of 13,6 per cent between 1997/98 and 2001/02. Growth is projected to slow, but remains high in real terms over the next three years, with nominal growth at an annual average of 10,1 per cent. Strong growth funded several new museums and heritage activities (for example, Robben Island), higher allocations to the science bodies and increased allocations to "Special Projects" from the Science Vote.

Two programmes dominate the budget of the Department of Arts, Culture, Science and Technology. Arts and culture and Science and technology respectively constitute 32,4 per cent and 60 per cent of the Department’s expenditure in 2000/01. While Science and technology has been growing in relative importance since 1997/98, and continues to do so over the medium term, the relative role of Arts and culture declines strongly from 1997/98 to 2003/04. The bulk of departmental expenditure (92,3 per cent), especially in these two programmes, is on transfer payments to cultural and science institutions.

While spending on personnel has grown at an average rate of 12,8 per cent a year over the last three years, the personnel share of the total remains about 5,9 per cent. Personnel expenditure growth is projected to be about 9 per cent a year over the next three years, owing to annual improvements and higher staff numbers.

The 2001 Budget increases the medium-term allocations by R24,8 million in 2001/02 and R32,9 million in 2002/03. These amounts include adjustments for higher than expected inflation, and policy-related adjustments for language policy and associated services. Additional amounts of R55 million, R48 million and R64 million were allocated from the Poverty Relief Fund. An adjustment for increases in the remuneration of associated institutions (amounting to R8 million, R8,5 million and R9 million) has also been provided. Total adjustments on baseline (excluding the allocation for the science vote) amount to R79 million in 2001/02 and R80,5 million in 2002/03.

Departmental receipts constitute mainly miscellaneous receipts such as debt repayments, private telephone calls and subsidised motor vehicle payments, as well as revenue generated by the National Archives through service fees. Services to the public are free of charge as far as possible, but the Archives charge for specialised services. These include copying of documents, the use of the National Film, Video and Sound Archives’ editing tables, and the registration of coats of arms by the Bureau of Heraldry. Departmental receipts are estimated at R520 000, R573 000, R619 000 and R681 000 in 2000/01 to 2003/04, respectively and are deposited into the National Revenue Fund.

The programme conducts the overall management of the Department. Its activities include policy formulation by the office of the Minister, Deputy Minister and Director-General, and the provision of centralised support services (including legal, financial and human resource services) to the Department.

A concerted effort has been made to ensure that Government respond to the needs of civil society. A set of principles, strategic guidelines and an institutional framework contribute proactively to addressing gender equality, disability issues, transformation and the fight against HIV/Aids.

Compared with overall growth of the Department, the programme has seen relatively low growth. Higher real growth of about 2 per cent per year is anticipated for the medium term. Personnel expenditure dominates the programme at about 64,4 per cent of total expenditure.

The programme facilitates equal opportunity for artistic and cultural participation through ensuring a rational policy and institutional framework, and through financing appropriate organisations. Different subprogrammes deal with policy on financial assistance to:

Over the medium term, the governance of arts, culture and heritage institutions will receive increased attention. Enhanced monitoring will focus on effective service delivery and, in particular, transformation, redress, job creation and the promotion and development of the arts. The Informal Arts and Culture Education and Training policy is a strategy to improve access to arts education by all South Africans, and in particular disadvantaged rural communities, disabled people, out of school youth and women.

The recent crisis regarding some of the performing arts councils has led to the review of all previous policy guidelines and reports. Key policy aspects that flow from the review are:

The projects on the Cultural Industries Growth Strategy and on Cultural Tourism initiated intensive research into the targeted sectors to suggest viable and practical government initiatives. This research has informed the development of strategic objectives and the delineation of three Spatial Development Initiatives as focus areas for cultural tourism development.

Despite its large task and significant progress to date, this programme has seen weak growth in the three years to 2001/02, averaging only 4,2 per cent a year in nominal terms. This has put substantial pressure on the budgets of older institutions. Growth is more rapid at 9,6 per cent a year over the next three years but still below the average growth rate for the Department as a whole. Support of conservation bodies and for the promotion of arts and culture grows strongly between 2000/01 and 2003/04.

There have been upward adjustments of allocations to the programme in the 2001 Budget, by R46,6 million in 2001/02 and R68,3 million in 2002/03, following an apparent reprioritisation away from this programme in the 2000 Budget. The increase includes an adjustment for improvements in conditions of service for associated institutions, as well as an increase in the poverty relief allocation for this programme.

Transfer payments, including some capital transfers (mainly to the cultural institutions, the National Arts Council and performing arts institutions) absorb 95,4 per cent of the programme’s total expenditure. After real declines in both capital and current transfers in the three years to 2000/01, growth resumes quite strongly over the medium term. Current transfers are projected to grow by 8,9 per cent a year and capital transfers by 25,7 per cent a year, although the latter is from a low base.

During 2000, a number of new monuments and museums were opened, including the Woman’s Monument at the Union Buildings and the Nelson Mandela and Ncome museums in the Eastern Cape. The Department hosted cultural festivals in three provinces and managed national projects such as Heritage Day, Africa Day and Ma Africa. Cooperation programmes with Russia and Mexico were finalised. The State Theatre was closed down and is being transformed into a playhouse. The South African Heritage Resources Agency was established during the year.

The aim of the programme is to foster national identity and the protection of rights by preserving a national archival heritage for use by Government and the people, as well as by promoting efficient, accountable and transparent governance through the proper management and care of government records. The programme comprises four subprogrammes:

The new national system of archives is to incorporate nine provincial archive services, which will be assisted and guided by the National Archives. The period 1997 to 2000 has seen the National Archives preparing some provinces to receive national facilities and assisting others in building foundations of completely new facilities. Funding for a full set of provincial archives must still be finalised.

This programme comprises less than 2 per cent of the departmental budget and 69,5 per cent of its expenditure is on personnel. There has been some real growth in expenditure up to 2000/01 with nominal growth averaging nearly 10 per cent a year. Average annual growth over the next three years is more subdued at 6,9 per cent.

During 2000, the National Archives managed the acquisition of the archives of the Truth and Reconciliation Commission. The National Oral History programme was launched, and the programme developed guidelines for the management of electronic records. It also managed a pilot educational project for school pupils.

The transfer of the Durban and Pietermaritzburg components of the National Archives to the Department of Education and Culture of KwaZulu-Natal was approved by the Minister of Arts, Culture, Science and Technology. The Minister of Public Service and Administration has also made a determination in this regard and the member of Executive Council of Education and Culture of KwaZulu-Natal concurred. The amounts will be R2 million for 2001/02, R2,1 million for 2002/03 and R2,2 million for 2003/04.

The programme manages and promotes language resources and diversity. Three core subprogrammes provide for a variety of activities:

During 2000, a draft language policy and plan was submitted to Cabinet. The finalisation and implementation of the plan will take precedence in the National language services over the next five to ten years.

The National language services programme grew rapidly during the last three years (an average annual rate of 28,6 per cent) and this is set to continue over the next three years, partly as a result of an increase to the baseline. Before 2000/01, the driving force in expenditure growth was the establishment of the Language Board. Over the next three years, the substantial growth is due to the Translating, editing and planning subprogramme and relates to the new language policy.

During 2000, the National language service met the language requirements of the Constitution by facilitating a translation and editing service in all the official languages and managing language diversity through language planning and terminology activities. Examples of its activities include the draft Language Policy and Plan, the Human Language Technologies strategic document, a revised business plan for the Telephonic Interpreting Service, the Council for Language Practitioners draft bill and a South African input to the United Nations Educational, Science and Cultural Organisation World Language Report. Translation and editing services in 11 official languages as well as foreign languages were provided and an audit of terminology projects was done.

The Science, technology and meta-information programme promotes the National System of Innovation. The Department aims to ensure that South Africa has a set of science, technology and knowledge institutions, programmes, policies and international agreements that are properly configured and interlinked, and are responsive to the socio-economic needs of the country. These institutions should also interact constructively within a national culture of science and technology, and have an articulated vision for the future. The subprogrammes are as follows:

Policy on the National System of Innovation framework is continuously under review. The efforts of the past few years, which were aimed at improving the value for money of the government science and technology system, are resulting in enhanced efficiency of the institutions concerned. However, additional resources for science and technology are still required. Policy development will strive for improvements in the quality and quantity of science and technology skills, and strategically directed investment in science and technology.

Indigenous knowledge will receive increasing attention, with the development of legal frameworks, appropriate incentives and the management of benefits for "communities and custodians of indigenous knowledge systems".

The Science, technology and meta-information programme grew strongly over the three years to 2000/01, by an average of 20,4 per cent a year. Most growth was in the small subprogrammes that provide support for institutions, with the bulk of the programme growing by only 6,1 per cent a year to 2000/01 and 6,9 per cent a year over the medium term. The 2001 Budget adjusts the baseline upwards by R86,5 million in 2001/02 and R144 million in 2002/03.

During 2000, the Department initiated 57 technological innovation projects in biotechnology, infrastructure, communication, technology, new materials and advanced manufacturing. The National Research Foundation promotes and supports science-related research and capacity building. The Department is committed to supporting HIV/Aids vaccine development in cooperation with the Department of Health, Eskom and the international research community. The National Laser Centre was established during the year, drawing on assets and resources formally held by South African Nuclear Energy Corporation, the Council for Science and Industrial Research and the National Research Foundation. The Department also undertook the Science, Engineering and Technology Holiday Camps for Girls; National Science, Engineering and Technology Week 2000; a science and technology awareness campaign; science communication workshops; and a reference group for women in science as part of its Public Understanding of Science, Engineering and Technology Project. The Department continued to fund technologies, as an integral component of the poverty relief, job creation and infrastructure provision programme across Government.

The Science allocation process begins with budgetary proposal guidelines from Treasury. Science councils then interact with line ministers on the sector-specific and national development priorities. The Department coordinates the budget submission in line with the Treasury guidelines and the approved prioritisation of programmes. A consolidated budget submission, covering all the councils and the National System of Innovation development programmes, is then prepared for submission to Treasury. The National Advisory Council on Innovation evaluates the performance of the National System of Innovation and draws on various instruments to examine scientific research and technology priorities across the different sectors in the National System of Innovation. These evaluations enable the Council to advise the Minister on issues relating to the distribution of the parliamentary research grant funding.

The management and disbursement of funds of the Innovation Fund Programme drive the programme, in line with the strategic objectives of the White Paper on Science and Technology. An operations management unit is responsible to the Trust for the routine administration of the programme and the processing of the grant applications. The framework for evaluating and selecting technologically innovative projects includes checks and balances, such as funding parameters (sector focus; technology and development weighted criteria); proposal evaluation (technical assessment; alignment with national development agenda); quarterly reporting from coordinators; monitors appointed per project over three years’ life to assess progress; forensic audits (financial, random but thorough, approximately 30 per cent of current projects per audit run); and selection committees. Lastly, the following Departments and Institutions assist the Department – Agriculture, Communications, Transport, Trade and Industry, Minerals and Energy, Education and Training, as well as the Industrial Development Corporation and the National Research Fund.

The Innovation Fund Trust is in contract with institutions or individuals acting as project coordinators for the projects receiving support. The contracts define the funding commitments over the life of the projects and, once finalised, transfers begin in support of the project. Disbursement of funds is modelled to involve a business plan that commits the Trust in respect of financial operational requirements and grant allocation requirements on a monthly basis and the Department in respect of transfers to the Trust. The operations manager of the programme requires authorisation from the Board of Trustees before approved grants may be withheld. The progress reports and the forensic reports inform decisions on such authorisation.

The following public entities currently report to the Minister of Arts, Culture, Science and Technology:

These institutions were declared as Cultural Institutions by the Minister of Arts, Culture, Science and Technology in terms of the Cultural Institutions Act of 1998. They must formulate policy to receive and preserve all property, of whatever kind, in their care, including specimens, collections or other movable property. They must also manage any movable property that belongs or has been given to Government or the people of South Africa.

The South African Heritage Resources Agency was established in terms of the National Heritage Resources Act of 1999 to:

• Provide for the protection and management of conservation-worthy places and areas by local authorities

Arts institutions (in terms of Section 21 of the Companies Act of 1973) assist in creating a sustainable performing arts industry based on access, excellence, diversity and redress. They encourage the development of the full range of performing arts. The institutions include: