DIDTETA PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE ON PROGRESS MADE BY THE SECTOR IN LINE WITH THE NATIONAL SKILLS DEVELOPMENT STRATEGY (NSDS) FOR THE PERIOD O1 MARCH 2001 TO 28 FEBRUARY 2003

INTRODUCTION
1. The DIDTETA (Diplomacy, Intelligence, Defence and Trade Education and Training Authority) was established together with the other 24 SETAs ( Sector Education and Training Authorities) on 20 March 2000. However, the DIDTETA only started to function officially as a SETA on 01 March 2001 with the appointment of the Chief Executive Officer. During the inception period (20 March 2000 to 28 February 2001) the DIDTETA was administered by temporary personnel, mainly on loan from the Departments of Defence, National Intelligence Agency and South African Secret Service. In this period the DIDTETA Constitution and Business Plan were formalised together with the set-up of the offices and appointment of another 16 employees. Thus the DIDTETA became fully operational by July 2001. This progress report will cover the period 01 March 2002 to current date.

SKILLS DEVELOPMENT ACT
2. The Skills Development Act 97 of 1998 ( SDA ) and the Skills Development Levies Act 9 of 1999 create an enabling regulatory framework for developing the Skills of the South African workforce.
THE NATIONAL SKILLS DEVELOPMENT STRATEGY

3. The priorities of South Africa’s Skills development programme and indicators to measure progress are set out in the National Skills Development Strategy : April 2001 to March 2005. The National Skills Development Strategy sets out the vision, principles and objectives of the national skills strategy. The five objectives identified to drive the national skills strategy are :
to develop a culture of high quality lifelong learning;

to foster skills development in the formal economy for productivity and employability;

to stimulate and support skills development in small businesses;

to promote skills development for employability and sustained livelihoods through
social development initiatives; and

to assist new entrants into employment.


SECTOR EDUCATION AND TRAINING AUTHORITIES (SETAs)


4. SETAs are critical institutions in the skills development framework and are pivotal to the implementation of the national skills development strategy. They are responsible for developing and implementing skills plans for national economic sectors and monitoring education and training in these sector.



THE DIDTETA SECTOR SKILLS PLAN (SSP)


The DIDTETA SSP was approved by the Department of Labour in April 2002. The National Skills Development Strategy Objectives formed the bases of the DIDTETA SSP. A Memorandum of Understanding (MOU) was concluded between the DIDTETA and the Department of Labour whereby the DIDTETA undertook to plan all its activities in support of the five NSDS objectives. The MOU again, forms the bases of the DIDTETA annual Business Plans. Progress on the five NSDS objectives is monitored on quarterly bases by the Department of Labour.


6. COMPOSITION OF THE DIDTETA

It is imperative to understand the composition of the DIDTETA so as to have a better comprehension or understanding of the challenges facing the SETA in its endeavour to strive for maximum performance and success. The DIDTETA serves the following government departments and institution:

Department of Defence
Department of Foreign Affairs
Department of Trade and Industry
The Intelligence Community
ARMSCOR and the
Competition Commission

In line with the Skills Development Act, the governing body of the DIDTETA ( Board ) consists of both employer representatives as well as labour representatives. It is instructive to note that the following unions are part and parcel of the DIDTETA Board:

National Education, Health and Allied Workers Union
National Intelligence Agency Consultative Forum
National Union of Public Services and Allied Workers
Public and Allied Workers Union of South Africa
Public Servants Association of South Africa
South African National Defence Union
South African Secret Service Consultative Forum and the
South African Security Forces Union

The DIDTETA consisting of in the main government departments differs from other SETAs in that it receives contributions from government departments and very little levies from Competition Commission and thus in the previous year could not disburse any grants as a result of difficulties experienced in regard to the participation of the Competition Commission in the DIDTETA structures. However, the difficulties previously encountered are now a thing of the past. The participation of the Competition Commission in our structures paved the way for the Competition Commission to exercise its rights in terms of the Skills Development Act.

The nature of the sector is such that it dictates sensitivity of information as well as no substantial grants disbursement. The government departments contribute towards the administration of the SETA 10% of their 1% payroll resulting in the limitations as to what the DIDTETA could do to further or enhance skills development in the sector. In the premises therefore, the DIDTETA unlike other SETAs does not have the benefit of a discretionary system out of which relevant training intervention and payment of subsidy to learners could be sourced. The matter has been compounded, and as such places the DIDTETA in a difficult financial situation, by the directive from the South African Receiver of Revenue (SARS) that out put tax (VAT) be paid over the contributions from government departments. This effectively implies that from the 10 % of 1% contributions earmarked for the administration of the DIDTETA, the DIDTETA in essence receives 8.6% of the 1%. This you will all concur with me does not augur well for skills development not only of employees in the sector but to the citizens of the country as a whole. We would therefore through this committee call upon SARS to exempt in the interest of skills development SETAs like us from payment of this output tax.


PROGRESS MADE BY THE DIDTETA WITH THE FIVE NSDS OBJECTIVES

The DIDTETA will report as follows :

The NSDS success indicator.
The DIDTETA target.
Progress made by the DIDTETA.
Constraints.

NSDS OBJECTIVES 1 : DEVELOPING A CULTURE OF HIGH QUALITY LIFE – LONG LEARNING


The DIDTETA Board in its endeavour to promote a culture of high quality lifelong learning in the sector ensured that the DIDTETA was accredited as an Education and Training Quality Assurance Body (ETQA) by the South African Qualification Authority (SAQA).

The DIDTETA then put in place mechanisms in the form of workshops to inform all the service providers of education and training in the sector of the criteria for accreditation as well as other relevant legislation that service providers needed to comply with. These workshops were conducted in Gauteng, Free State, Eastern Cape, Western Cape and Kwazulu Natal. This approach resulted in a number of service providers approaching the DIDTETA and requesting accreditation. The DIDTETA scrutinised all the applications and observed a few that were relevant to the DIDTETAs area of focus. The DIDTETA referred most of these providers to the relevant SETAs.

The DIDTETA has however provisionally accredited the National Institute of Community Development and Management (NICDAM) and received a letter of intent from Special Forces Brigade. In this regard the DIDTETA is in the process of supporting the Foreign Service Institute with regard to accreditation.

The DIDTETA has trained 202 assessors in the sector. It is important to note that out of the number only a half have been deemed competent and others are in the process of receiving support in regard to the compilation of portfolio of evidence. The competent learners are in the process of being registered by the ETDP SETA as generic assessors. It is the intention of the DIDTETA to further train 50 competent learners against the unit standard on Design and Development assessment tool and moderation.

The DIDTETA through the assistance from the department of labour developed a quality management system (QMS). This system regulates and guides all processes within the DIDTETA.

Constraints

Protocol within some government departments;
Bureaucracy within departments;
Lack of proper understanding of the Skills Development Act; and
Initial reluctance on the part of joint Training in the Defence Force to allow DIDTETA to have direct access to their service providers. This problem has been resolved thanks to the intervention of LT General Matanzima who has made it possible for the DIDTETA to have direct access to all the service providers in the Defence Force. The direct access resulted in substantial progress relating to the accreditation being made by the DIDTETA. The following service providers are engaged in discussion with the DIDTETA with regard to their accreditation:

War College
School of Logistics
Genie Formation
Personnel School
South African Defence Intelligence
SA Navy
SA Army Armoury, to mention but a few.

Challenges

The delays in establishing the Standard Generating Bodies (SGBs) responsible for generating qualifications and units standards is a hindrance to the success of the DIDTETA.
The implementation of the recommendations made by the team on NQF could fast-track the process.


A. NSDS Success Indicator

A total of 70% of all workers have at least a Level 1 qualification on the NQF by March 2005.

B. DIDTETA Target

Long – Term : A total of 94% of all workers have at least a Level 1 qualification on the
NQF.

Short – Term : 2002 / 2003 – A total of 92% of al workers have at least a Level 1
qualification on the NQF by March 2003. Note must be taken of the fact that most members employed by our stakeholders are highly qualified.

C. Progress Made by DIDTETA

With a baseline of 88 000 employees 1% represents 880 people. A total of 1 515 employees were afforded training on NQF Level 1. This figure does not include the 4th quarter information (period 01 January 2003 – 31 March 2003) as this will only be available by the middle of April 2003. It must also be pointed out that NQF Levels can only be confirmed once RPL ( Recognition of Prior Learning ) has been performed. The DIDTETA is in the process of conducting in conjunction with the Construction Education Training Authority (CETA) RPL for employees in the Defence sector. These employees have experience on musterings or occupations that falls within the ambit of CETA. This will result
in a marked increase of the numbers of employees on NQF level 1 in the sector.

D. Constraints.

The DIDTETA serves in the main government departments and therefore has no benefit of the discretionary grant system. The contributions in the form of 10% of the 1% payroll from government departments are not sufficient to allow the DIDTETA to play a meaningful role and made a positive contribution towards the skills development especially around 18 (2) learners ( Learnerships for unemployed youth).

A. NSDS Success Indicator

At least 15% of the workers have embarked on structured learning, programmes, of whom at least 50% (7,5%) have completed the programmes.

B. DIDTETA Target

A total of 14 000 people above NQF Level 1 are engaged in structured learning programmes during 2002 / 2003.

C. DIDTETA Progress

A total of 20 346 people attended and completed structured learning programmes for the first three quarters of the reporting year. Most of these programmes were at NQF Level 4 and higher.

A. NSDS Success Indicator

An average of 20 enterprises and at least 5 national government departments are committed to /have achieved the Investors In People (IIP) standard by March 2005.

B. DIDTETA Targets

A total of one government department and at least 1 division of the Department of Defence are committed to /have achieved the Investors In People standard by March 2005.

C. DIDTETA Progress

The following government departments in the DIDTETA sector are committed to the IIP standard :

Department of Trade and Industry ( pilot department for DOL) (2002).
Department of Foreign Affairs.(2003)

The DIDTETA intends to approach and request the Department of Defence’s commitment to participate in the standard.

NSDS OBJECTIVE 2 : FOSTERING SKILLS DEVELOPMENT IN THE FORMAL ECONOMY FOR PRODUCTIVITY AND EMPLOYMENT GROWTH



A. NSDS Success Indicator

By March 2005 , at least 75% of enterprises with more than 150 workers are receiving skills development grants and the contributions towards productivity, and employer and employee benefits are measured.

B. DIDTETA Target

This success indicator is not applicable to the DIDTETA as the SETA does not disburse grants to stakeholders except with regard to Competition Commission as explained earlier.

A. NSDS Success Indicator

By March 2005 learnerships are available in every sector.

B. DIDTETA Target

26 Learnerships are developed and registered by 31 March 2003.

C. DIDTETA Progress

The DIDTETA was successful in the identification, registering and development of the following learnerships :

Learnerships Registered with DOL (6)

National Diploma in Intellectual Property (NQF Level 5)
National Certificate : Aircraft Radiotrician ( NQF Level 5)
National Certificate : Aircraft Electrician (NQF Level 5)
National Certificate : Aircraft Instruments Workers ( NQF Level 5)
National Certificate Aircraft Structured Workers ( NQF Level 5)
National Certificate : Aircraft Mechanic ( NQF Level 5)

Learnerships Provisionally Registered with DOL(4)

Initial Military Certificate (NQF Level 4)
National Diploma in Aircraft Weapons ; Electro – Mechanician ( NQF Level 5)
National Diploma in Aircraft Reconnaissance : Electro – Mechanician ( NQF Level 5); and
National Diploma in South African Special Forces Operations (NQF Level 5)

Consultations with NIA and SASS are at an advanced stage to address their learnerships and short courses / Skills Programmes.
In addition to the above learnerships the DIDTETA identified three (3) learnerships unique to the Diplomacy environment (Foreign Affairs) and are to be registered with the DOL in due course.

The DIDTETA in consultation with the Defence Force has identified twenty (20) apprenticeships that are to be converted to learnerships. There has been progress made in relation to the conversion of these apprenticeships.



D. Constraints.

Although the identification and registration of learnerships are relatively easy, the development of such is a very complicated and costly exercise, with specific reference to the establishment of Standards Generating Bodies (SGBs) and the writing of unit standards. The major bottleneck or rather hindrance relates to the lack of registered qualifications and unit standards with the South African Qualification Authority. The major flaw in the system relates to lack of any form of incentives for government departments participating in learnerships. The current incentives in the form of tax rebates are not applicable to government departments. This result in these departments not being keen to ensure success of the learnerships.

Challenge

The DIDTETA has undertaken a process to fast-track the generation of unit standards and qualification due to the slow pace at which the SGB’s are operating. This involves the engagement of consultants to develop qualifications and then allow the stakeholders together with the relevant SGB to critique the qualification with a view to fine- tune it in line with their requirements. The equipment of all relevant subject matter specialists from stakeholders on the development of curriculum and writing of unit standards is in our view key to the effective and efficient working of the SGBs.


NSDS Success Indicator

By March 2005, all government departments assess and report on budget expenditure for skills development relevant to Public Service, Sector and Departmental priorities.

DIDTETA TARGET

By March 2003, all government departments assess and report on budgeted expenditure for skills development relevant to Public Service, Sector and Departmental priorities namely :

Department of Foreign Affairs
Department of Defence
Department of Trade and Industry
National Intelligence Agency
South African Secret Service
ARMSCOR (Public Entity)
Competition Commission ( Public Entity)

100 % of Workplace Skills Plans ( WSPs) submitted to DIDTETA for assessment, approval and implementation. Feedback on progress to be submitted to DIDTETA in April 2003.

C. DIDTETA Progress

WSPs received from all stakeholders except SA Secret Service. All received WSPs assessed and approved for implementation. Returns for first three quarters indicate that expenditure is in line with budgets. A full expenditure return is expected in April when government departments submit their annual training reports.

D. Constraints

The sensitivity of the information contained in the Workplace Skills Plan from the intelligence community prohibits the release of such document. The DIDTETA is engaged in serious negotiations with SASS to allow the Senior Manager Skills Development of DIDTETA access to the document for assessment and approval. The DIDTETA is confident that the SASS Workplace Skills Plan will be approved in the very near future.

NSDS OBJECTIVE 3 : STIMULATING AND SUPPORTING SKILLS DEVELOPMENT IN SMALL BUSINESS

A. NSDS Success Indicator

By March 2005, at least 20% of new and existing registered small businesses to be supported in skills development initiatives and the impact of such support to be measured.

B. DIDTETA TARGET

One SMME learnerships developed and 20 learners have entered training .
A number of SMMEs initiatives developed in conjunction with DTI.
The proposed Project Military Veterans that hopefully will be funded by the NSF will have an impact on SMMEs.

C. DIDTETA Progress

The learnership on National Diploma in Intellectual Property which was developed in conjunction with the Department of Trade and Industry, ie Company and Intellectual Property Registration Office (CIPRO) was registered with the Department of Labour. Once the unit standards are finalised training will commence.

The DIDTETA is working very closely with DTI to explore ways whereby support can be rendered to SMMEs. Once Project Military Veterans is approved by the National Skills Fund a greater effort will be possible, specifically for those veterans with entrepreneurial skills who want to start small businesses.

D. Constraints.

The DIDTETA sector comprises of seven major government departments and public entities with no SMME involvement. The only channel through which DIDTETA can reach out to SMMEs is the Department of Trade and Industry. The DIDTETA and DTI are working very closely to determine how DIDTETA can be of assistance in this regard.


NSDS OBJECTIVE 4 : PROMOTING SKILLS DEVELOPMENT FOR EMPLOYABILITY AND SUSTAINABILITY LIVELIHOODS THROUGH SOCIAL DEVELOPMENT INITIATIVES

A. NSDS Success Indicator

By March 2003, 100% of the NSF apportionment is spent on viable development projects.

B. DIDTETA TARGET

By March 2005 50 000 Military Veterans to receive training under the NSF project. By March 2003 13 000 Military Veterans to receive training under the NSF project.
Feasibility study executed on sample of 1800 retrenched soldiers.

C DIDTETA Progress

The DIDTETA submitted an application for funding of the Military Veterans project to the NSF on the 31st May 2001. The NSF requested as a condition to the application the undertaking of a feasibility study on the project.
The feasibility study was completed in October 2002 and submitted to the NSF. The NSF board responsible for the approval of NSF projects is yet to advise the DIDTETA on the final outcome of the application requesting funding of the project.

D. Constraints

The delay in respect to the approval of the project by the NSF. The time frame for the project is already out and will necessitate a serious review. However, the target of 50 000 will be achieved depending on the outcome.

NSDS OBJECTIVE 5 : ASSISTING NEW ENTRANTS INTO EMPLOYMENT


A. NSDS Success Indicator

By March 2005, a minimum of 80 000 people under the age of 30 have entered into learnerships

B. DIDTETA Target

By March 2005, 3 600 learners are contracted into learnerships by the DIDTETA in the sector.
By March 2003, 1200 learners across 26 learnerships have entered into learnerships

C. DIDTETA Progress

The newly identified and registered learnerships have not yet been fully developed thus no learners can enter into it. The sector, on the other hand, is training learners on a continuous bases in those fields. For example, the Department of Defence houses 47 occupations which are fed through internal learnerships (previously apprenticeships). These learnerships account for more than 600 learners per year.

D. Constraints

The development of learnerships is a complicated and expensive exercise. Once all identified learnerships have been developed and implemented the envisaged targets will be realised. It should be pointed out that the DIDTETA perceive this as a tall order specifically because of limited resources available. The amount paid over to SARS in the form of output tax should rather be diverted to the development of learnerships to assist new entrants in employment.

A. NSDS Success Indicator

By March 2005, a minimum of 50% of those who have completed learnerships are, within six months of completion, employed, in full – time study or further training or are in a social development - programme.

B. DIDTETA Target

By March 2003, 50% of learners are placed as per NSDS success indicator, ie 600 learners.

C. DIDTETA Progress

The DIDTETA is fortunate in the sense that all learners trained by its member departments are appointed on a permanent bases from the first day they set foot in that organisation, due to the specialisation of their function and the departments they serve.

ADDENDUM TO OBJECTIVE 2: FOSTERING SKILLS DEVELOPMENT FOR PRODUCTIVITY

A. NSDS Success Indicator

All managers in the sector competent in respect of national management standards.

B. DIDTETA Target

A total of 50% of managers competent in respect of national standards, ie 20% (160 managers) by 2003 / 2004.

C. DIDTETA Progress

The DIDTETA introduced, through the South African Management Development Institute (SAMDI), the Presidential Strategic Leadership Development Programme ( PSLDP) and afforded, during 2002, development to 58 top – level officials ranging from Deputy Director Generals to Deputy Directors. At present 102 top – levels officials from its sector are attending the PSLDP.

D. Constraints

The PSLDP, facilitated by SAMDI ( South African Management Development Institute), was partly financially supported by external donors(European Union). This sponsoring made the PSLDP affordable to the DIDTETA. The donors have now withdrawn their financial support leaving the DIDTETA with an insurmountable financial burden. This might hamper the progress of the PSLDP initiative to the extend that it might have to be cancelled, with adverse effect on the managerial cadre of the civil service.








Thank you.