The NFVF recognises that the film industry development and growth is a concurrent competency of a number of the spheres of government at national, provincial and local levels. However, the concurrent competency status of the film sector compounds the problem of industrial fragmentation in the sector. The role of the NFVF is to integrate, coordinate and foster collaboration by parties who would otherwise not be able to work together.

Therefore, the programme presented here seeks to address crossing cutting issues in the industry, collaboration, and capacity development within the foundation with the ultimate aim of creating synergy.

The synergy will result from the development of the national film portfolio. This means that every Province and every institution, be it industry or government has a unique role and contribution to make towards the development and growth of the film sector. It is putting in place structures and systems that will bring about synergy and multiplier effects that will deliver rapid growth. The programme presented in this document seeks to address some of the structural and systemic issues.

The Business Case presents multilateral government policy framework as the foundation on which the programme is formulated. It presents situational analysis, the Content Industry Strategy that was approved by Cabinet in December 2003, Key Success Factors (KSF), Cost Benefit Analysis (CBA), the current budget of the NFVF as well as the Business Plan for the MTEF review and the alternative sources of funding.

• The approval and authorization by DAC for MTEF review.
• The finalisation of the Draft Cabinet Memo that accompanies the business
• case and the business plan for the approval by the National Cabinet.
• The agreement on a compact of co-operation with DAC, DoC and DTI where necessary.
• The endorsement of the advocacy dimension of the programme by provincial and local government for the framework for growth and development of the film industry in their areas.

1. To develop and promote the film and video industry;
2. To provide and to encourage the provision of, opportunities for persons, especially from disadvantaged communities to get involved in the film and video industry;
3. To encourage the development and distribution of local film and video products;
4. To support the nurturing and development of and access to the film and video industry; and
5. In respect of the film and video industry, to address historical imbalances in infrastructure and distribution of skills and resources.

3. The Lotteries Act No. 57 of 1997

Section 26 (3) (d), Section 30, and Section 32 make injunctions which are pertinent to the objects of the NFVF, and thus qualifies the Foundation to receive grants in respect of the Section 16 (1) (c), (2) (c) of the NFVF Act concerning donations or contributions received from any source. Section 16 (2) (c) states, "the Foundation shall utilise any donations or contributions contemplated in subsection (1) (c) in accordance with the conditions, if any imposed by the donor or the contributor concerned.

Section 34 (3) (d) states, "not less than the prescribed percentage shall be allocated for expenditure on or connected with arts, culture and the national historical, natural cultural and architectural heritage."

Section 30 (1) states, "so much of any sum paid into the fund as is allocated for expenditure referred to in section 26(3)(d), shall be held in the fund for distribution by the distributing agency appointed by the Minister (of Trade and Industry) in consultation with the Minister responsible for Arts Culture Science and Technology and Environmental Affairs, in the national sphere of government to distribute the sum allocated fairly and equitably among all persons who meet the prescribed requirements. Section 32 (2) states, in deciding on the juristic person to whom grants are to be made, the Minister or the distributing agency, as the case may be, shall be satisfied that such juristic person is competent to allocate the amounts equitably among all the members it represent.

In terms of these provisions the NFVF is in all intent, purpose and stature a competent qualified juristic persona to carry out the objects that are provided for in the sections of the Lotteries Act.

4. The Lotteries Act Regulations relate to the allocation of money in the National lottery distribution Trust Fund

Section 30 of the regulations provides requirements for the allocation of funds for Arts, Culture and National Heritage. The NFVF complies with the requirements stipulated in the regulations.

5. Section 24 F of the Income Tax

Section 24 F provides an incentive through tax deductions in respect of production and postproduction costs incurred by an owner of a film.

6. Other leverageable legislations

1. The Broadcasting Act and Regulations

1. Contribute to democracy, development of society, gender equality, nation building, provision of education and strengthening the spiritual moral fibre of society.
2. Safeguard, enrich and strengthen the cultural, political, social and economic fabric of South Africa.
3. Encourage ownership and control of broadcasting services through participation by persons from historically disadvantaged groups.
4. Encourage investment in the broadcasting sector.
5. Encourage the development of local programming content.

1. The Microeconomic Reform strategy (MRS)

1. Crosscutting issues: technology, human resource development, access to finance and infrastructure.
2. Prioritised growth sector; export sectors, tourism, agriculture, ICT and cultural industries.

1. The National Empowerment Fund

The aim of this Act is to establish a trust for the promotion and facilitation of ownership of income generating assets by historically disadvantaged persons. One of stated objects of the trust is "promoting and supporting business ventures pioneered and run by historically disadvantaged persons."

2. Provincial Competencies

3. National Institutional framework

The discussion in chapter 4 on Policy and legislative framework points out to the fragmentation of the film industry along the structures of government. The institutional framework for the film industry is as follows:

1. The Department of Arts and Culture (DAC)

3. The Department of Trade and Industry (DTI)

• Research & Development;
• Content Production;
• Marketing & Distribution;
• Human Capital Development; and
• Institutional Development.

2. The establishment of the Regional Television Services (RTVS)

On 8 December 2003 the SABC applied for a licence to operate Regional Television Services. Among other key goals of the RTVS is the promotion of programming in indigenous official languages in South Africa. The NFVF will exploit and collaborate with DOC and SABC to promote the interests and access to film and video industries by the Previously Disadvantaged Communities.

3. Developments in the Provinces

• The Western Cape Province has established the Western Cape Film Commission. The Commission is active in the development of the Film City Initiative, a Film City Precinct in the Unicity of Cape Town which will have studio complex, Human Capital Development and the support service industries.
• The Gauteng Provincial Government has established the Gauteng Film Office as part of The Gauteng Economic Development Agency. The Province is exploring ways of expanding its film industrial base.
• In KwaZulu-Natal, the Durban Film Office has been established. The Province is exploring the establishment of the Provincial Film Commission which will spearhead the establishment of the film Office institutional networks all over the Province to expedite issuing of permits for location shooting.

2. NFVF internal analysis

1. Increased State intervention

The South African Film industry is still in an embryonic stage compared to most of the middle-income countries such as India and Brazil. The state intervention is necessary to address market failures and the impact of liberalisation and globalisation.

Increased State intervention can occur through the establishment of new institutions such as the Provincial Film Commissions and Offices, expanding the mandates and the capacity of the existing institutions through fiscal intervention and incentives. The central theme that runs through this document is that coordination based on intergovernmental relations and protocol is necessary and the NFVF has a central role to play in this regard.

2. The creation of production capacity to meet global challenges and local content

It was stated in chapter 5.2 that South Africa must balance a thrust that is intended to attract FDI’s by producing genre and products for global export and consumption. The latter requires the generation of the economies of scale in local production. The production mix must include a balance between large budget and small budget productions.

3. Development of the local market

The economies of scale can only be achieved if the local market is strengthened. The traditional market for film in South Africa is LSM’s 6 and upwards. The film industry is an elitist market. The majority of the citizens, particularly in the Previously Disadvantaged Areas and indigenous languages are not catered for.

This can be attributed to the fact that Eurocentric business models and distribution channels are employed in South Africa as a reflection of the colonial and apartheid past.

4. Funding

It was mentioned in paragraph 5.3.3. that the funding ratio international benchmark is 19%, whereas in South Africa it is less than 1%. This means that for every R1.00 worth of production government contributes 19 cents. In South Africa for every R1.00 worth of production government contributes less than 1 cent, mainly through the implementation of Section 24F and commissioning by the broadcasters.

The global trend is the production of large budget production for international markets.

Governments contribute to these productions for the purpose of promoting their culture overseas as an initiative of popular diplomacy. The increased State allocation also influences the allocation of value in co productions. It is for these reasons that South Africa must strive to improve its funding ratio from less than 1 cent to 19 cents global benchmark.

5. Human Capital Development

The film industry, by its nature is driven by both creative talent and skills. Education and Training facilities must be established to meet the demands for rapid growth.

1. Skills

• Script Writers -Scrip writers write scripts or stories for film, advertising, television and other visual media. Script writing is a challenging task in film-making and is often the beginning of making tangible any film idea.
• Producers - Producers ensure that the film materializes. They essentially make sure that all the aspects of the film making process are coordinated.
• Creative managers - Under the banner of creative services, a number of jobs exist including publishing, professional manager, library manager and tape room manager.
• Researchers - The researchers are important in film making as they authenticate the film story line. They ensure that all relevant material is available to ensure that the story materializes.
• Sound Engineers - Sound engineers ensure that all matters relating to sound are taken care of as part of the production, on set and beyond.
• Sound records/sound man - Operates the microphone and makes sure sound is level and in sync
• Cameramen - Cameramen will basically take or "shoot" footage for the film. The cameraman is one of the most important components of film-making as without footage, no film can exist.
• Director - The director will ensure that all scenes and sequences are shot in the right order according to the script. Simply put, he directs the film. The director is an important part of the filming process as he will take the script and bring it to life. The director will normally have an assistant director and a second assistant director.
• Production Manager - Manages the production on the film and makes sure everything is done.
• Production Co-coordinator - Co-ordinates the production, Technical and post production teams
• Unit/Location manager - Gets permission to use locations (working with film offices, police services, hospitals, schools etc.)
• Editors - The editors will generally take the raw material of a film and "mix" it to ensure that all the shoots follow the storyboard. They edits the film working closely with the online Producer (and in some cases the Second Assistant director).
• Audio post production - Syncs the sound on the whole film (music, background voices/sounds)
• Theme Music Composers - Music has become an important part of film. Theme music composers make music or what is known today as the soundtrack of a film. Sometimes, any musician can be contracted by the film-maker to make music for the film.
• Graphic Designers - Graphic designers take care of all graphics in the film. They are especially important in animated movies.
• Make up Artists - Actors need to look good while on set, or a particular look may be required for a particular role. Make up artists take care of this task.
• Wardrobe managers - Wardrobe managers ensure that the right clothing is available for actors on a particular film. They source the clothes, match them to characters and dress the actors.
• The Stylist - Works with the art director for getting the right Wardrobe for the film.
• Food Stylist - The food stylist are also referred to as Caterers or set food designers.
• Continuity - Works close with the Director making sure that there is continuity when shooting
• Art director - The art director is responsible for the set and props in studio and on location in terms of set design
• Publicists - The publicist works as a marketing agent for the film. He ensures that enough publicity is received by the film to ensure the success of the film.

1. Support Skills

• Financial managers, administration managers, librarians, HR Managers, receptionists, marketing managers, cleaners etc.
• Chaperones - Drives the cast around
• Runner - Helps with coffee, making copies of scripts and any other touch up on set
• Driver - Gets sent to the Bank, to get extra props and anything else that needs to be brought to set while shooting.

1. Marketing

Marketing includes the assessment of audience needs through research, the development of genre and products to meet the needs. The development of channels of distribution and exhibition, the development of film markets and festivals, promotions through public relations and special events and exhibitions in festivals such as Cannes, Berlin Film Festival and Sithengi. Marketing also includes the development of the NFVF brand, its offering and the societal impact in terms of its mandate. Information about the film industry in South Africa must be made available to local citizens and foreigners.

2. Development of institutional capacity

The key factor is that the support institutions must be accessible by the majority of the citizens who wish to earn their living in the film industry. The institutions must provide support in the areas where producers would be hard pressed to cope with the production demands.

3. Synergy

• Programmes that are funded from the current MTEF cycle.
• Programmes for the Medium Term Expenditure Budget Review.
• Collaborative programmes with the DAC other spheres and organs of the government which must be delivered in terms of the agency compact e.g. the management of co productions and the NFVF governance. For such programmes the responsible organ of the state provides funding for an initiative and the NFVF provides expertise.
• Programmes funded from sponsorships, aid and development capital.
• Advocacy programmes whereby the NFVF promotes, supports and provides endorsements for initiatives undertaken by any role players such as the provinces and the municipalities to create economies of scale and critical mass for the development and growth of the film industry in South Africa.

1. Governance and Leadership

Governance and leadership of the Foundation are the key areas of the Office of the CEO. This Office is responsible and accountable for the overall running of the Foundation. It is responsible for the ongoing interpretation of government policies, statues, environmental trends and articulates all these inputs into the strategy and programmes of the Foundation. The functions of the CEO are covered in detail from sections 5 to 16 of the NFVF Act. Leadership and governance issues are also covered in the King’s Reports.

The CEO also commissions and carries out special projects which are not allocated to other functional areas such as funding initiatives local market development, the development of institutional capacity and the creation of synergy across the industry.

The typical of such project is the formulation of strategy and programme development and implementation.

2. Policy

This function is responsible for the design of the processes of policy formulation, monitoring and evaluation in so far as the ends of the NFVF are affected. The Office is responsible to craft policy issues and make inputs into the public policy agendas. The functional area employs tools of research, analysis and political management, government and stakeholder relations. Internally, the policy functional area is a service provider to other business function in so far as policy formulation is concerned. The focus of the policy unit as it is depicted in this business case is the development of policy research capacity, database and stakeholder management systems.

3. Human Capital Development

This function is responsible for the assessment of the state of skills for the film sector and the institutional capacity in the Further Education and Training, (FET), Higher Education Institutions (HEI’s) and the Skills, Education and Training Authorities (SETA). The key inputs of this functional area are the skills laws of South Africa. The function is responsible for the development of the skills profile of the film sector, gap analysis and recommendations to the Department of Labour and Skills Development Agencies.

The Focus of this function as it is depicted in this business case is the development of the research capacity to measure the national skills profile and geographic distribution.

4. Marketing and Promotion

This function is responsible for the assessment of audience needs and concomitant genre development. The marketing function is also responsible for the development of genre observatory, the development of distribution channels, corporate brand development and advertising of the offering of the NFVF, public relations, media relations special event and exhibitions to show case the South African product in national and international film.

5. Administration

• The programme presented in this business case is developmental Addresses the creation of key factors that will bring about structural change in the industry.
• It recognises the film sector as a strategic industry for the evolution and the creation of competencies and the transfer of skills for the creation of the knowledge economy.
• It advocates for state intervention by recognising multilateral concurrent competencies across the spheres and government departments.
• It focuses state intervention of the state to typical state functions, leaving room for the industry to provide the other factors such as entrepreneurship and facilities development and large budget productions.
• The programme is aligned and it augments the national strategy for the development and growth of content industries.
• The programme prioritises human capital development, research and development, funding and access to means of production by previously disadvantaged communities.
• The programme recognises the importance of co production as the driver of liberalisation of the film industry. It recognises that South Africa must not always be junior partners in co production treaties because this results in capita outflows and foreign accumulation of inventories.

1. Appendix 1

 

REPUBLIC OF SOUTH AFRICA

_______________

NATIONAL FILM AND VIDEO

FOUNDATION ACT

____________________________________

REPUBLIEK VAN SUID-AFRIKA

WET OP DIE NASIONALE

STIGTING VIR ROLPRENTE EN

VIDEO’S

____________________________________

No 73, 1997

ACT

To establish a juristic person to be known as the National Film and Video Foundation; to determine its objects, functions and method of work; to prescribe the manner in which it is to be managed and governed; to regulate its staff matters and financial affairs; and to provide for matters connected therewith.

BE IT ENACTED by the Parliament of the Republic of South Africa, as

follows:—

Definitions

1. In this Act, unless the context indicates otherwise—

(i) ‘‘chief executive officer’’ means the chief executive officer appointed in terms

of section 13(1); (iv)

(ii) ‘‘Council’’ means the Council contemplated in section 6; (vi)

(iii) ‘‘Director-General’’ means the Director-General: Arts, Culture, Science and

Technology; (ii)

(iv) ‘‘executive committee’’ means the executive committee established in terms

of section 9; (ix)

(v) ‘‘financial year’’ means the period from 1 April in any year to 31 March in the

following year; (i)

(vi) ‘‘Foundation’’ means the National Film and Video Foundation established by

section 2; (viii)

(vii) ‘‘Minister’’ means the Minister of Arts, Culture, Science and Technology; (v)

(viii) ‘‘prescribed’’ means prescribed by regulation; (x)

(ix) ‘‘regulation’’ means a regulation made under this Act; (vii)

(x) ‘‘this Act’’ includes the regulations. (iii)

Establishment of Foundation

2. There is hereby established a juristic person to be known as the National Film and Video Foundation.

Objects of Foundation

3. The objects of the Foundation are—

(a) to develop and promote the film and video industry;

(b) to provide, and encourage the provision of, opportunities for persons,

especially from disadvantaged communities, to get involved in the film and

video industry;

(c) to encourage the development and distribution of local film and video

products;

(d) to support the nurturing and development of and access to the film and video

industry; and

(e) in respect of the film and video industry, to address historical imbalances in

the infrastructure and distribution of skills and resources.

Functions of Foundation

4. (1) Subject to subsection (3) and in order to achieve its objects, the Foundation

may—

(a) render support, including, but not limited to, financial support, advice and

information, to any person, organisation or institution;

(b) determine which field of the film and video industry should have preference

for the purpose of support thereof;

(c) investigate and determine the need for support of any person, organisation or

institution;

(d) conduct research into any field of the film and video industry;

(e) establish, compile and maintain databases, including, but not limited to,

databases of persons, organisations, institutions, equipment and facilities

connected with the film and video industry;

(f) make bursaries and loans available to students for local and overseas studies;

(g) liaise with a member of the executive council of each province designated by

the Premier of the Province, in order to promote the film and video industry

more effectively throughout the Republic and to ensure co-ordination in the

distribution of funds at national and provincial level:

(h) make funds available to the members contemplated in paragraph (g) for such

distribution as the Council may determine;

(i) nationally and internationally facilitate and promote liaison between individuals and institutions;

(j) make grants and grant loans to any person, organisation or institution in order to provide facilities to support the development and promotion of the film and video industry;

(k) co-operate with any person, organisation and institution;

(l) enter into agreements with any person, organisation or institution, upon such

conditions as may be agreed upon;

(m) purchase or otherwise acquire, or possess, hire, alienate, let, pledge or

otherwise encumber movable and, with the approval of the Minister, granted

with the concurrence of the Minister of Finance, immovable property;

(n) with the approval of the Minister, granted with the concurrence of the Minister of Finance, on such terms and against such security as may be agreed upon, raise money by way of loans; and

(o) generally, do everything which is necessary to achieve its objects.

(2) The Foundation shall—

(a) at the request of the Minister advise the Minister on matters concerning the

film and video industry;

(b) publish information on its objects and functions;

(c) perform such duties in respect of its objects as the Minister may assign to it;

(d) undertake or procure the undertaking of such investigations and research

concerning its objects as the Minister may assign to it;

(e) in conjunction with the Departments of Trade and Industry and of Education,

investigate the viability of establishing a national film school;

(f) promote the distribution and showing of local films and videos throughout the

Republic and the showing of local films and videos on television;

(g) liaise with the Independent Broadcasting Authority to encourage the use of

local content programmes on television; and

(h) approach the film and video industry and other interested parties for financial

contributions to the Film and Video Initiative, referred to in section 18.

(3) The Foundation shall not itself establish, acquire or operate any organisation or institution connected with the film and video industry, but may initiate projects which it considers necessary in pursuit of its objects, provided that such projects are undertaken in partnership with existing organisations or institutions which have the capacity to undertake the projects.

Performance of functions outside Republic

5. (1) The Foundation may, in order to achieve its objects, render such support as may be prescribed to any person who is a South African citizen in any territory outside the Republic.

(2) This Act shall, as far as it can be applied with the necessary changes, apply in

connection with the performance by the Foundation of its functions under subsection (1) as if the territory in which it so performs its functions were part of the Republic.

Establishment and composition of Council, tenure of office and filling of vacancies

6. (1) The Foundation shall act through a council consisting of no fewer than nine and no more than 14 members.

(2) (a) The members shall be appointed by the Minister from a short list of no more than 22 names.

(b) Nominations for inclusion in the short list shall be obtained from the public in the prescribed manner.

(c) An independent panel, appointed by the Minister, shall compile the short list from the nominations referred to in paragraph (b) after interviewing each nominee in public.

(d) Any member of the public may object in writing to the nomination of any person.

(3) (a) The first meeting of the Council shall be held at such time and place as the Minister may determine.

(b) The Director-General shall preside at that meeting.

(4) (a) The chairperson of the Council shall be appointed by the Minister from

amongst the members of the Council and such person shall be the chairperson for the period for which he or she was appointed as a member of the Council.

(b) If the position of chairperson becomes vacant the Minister shall, subject to

paragraph (a), appoint another member as chairperson.

(c) If the chairperson is absent from a meeting of the Council, the members present shall elect one of their members to preside at that meeting.

(5) (a) Subject to paragraph (b), a member of the Council shall hold office for a period not exceeding three years and shall be eligible for reappointment after a further three years have elapsed.

(b) At the end of the members’ term of office, three members shall be re-elected by the Council to serve for a further three years, after which they shall not be eligible for reappointment until a further three years have elapsed.

(6) A member of the Council may at any time be removed from office by the Council if there is sufficient reason for doing so, subject to the approval of the Minister.

(7) Any vacancy on the Council shall be filled in the manner in which the member

who vacates the office was required to be appointed, and any member so appointed shall hold office for the unexpired portion of the period for which the member who vacates the office was appointed: Provided that the Minister shall, if the vacancy occurs in the Council’s first term, fill the vacancy by appointing a candidate from the short list.

(8) (a) No member shall serve on the Council on a full-time basis.

(b) Members of the Council shall, in respect of their service, receive such allowances as the Minister with the concurrence of the Minister of Finance may determine, either in general or in a particular case.

(9) Members of the Council shall not be eligible for grants from the Council during their term of office.

Qualifications of members of Council and circumstances under which they vacate Office

7. (1) (a) The members of the Council shall be persons who have—

(i) special knowledge or experience in the film and video industry; or

(ii) specialist skills which are not directly related to the film and video industry

but which would be beneficial to the Council.

(b) A member of the Council shall not hold office in any political party or political

organisation.

(c) The composition of the Council shall be broadly representative of the—

(i) stakeholders in the video and film industry; and

(ii) South African population.

(2) No person shall be appointed as a member of the Council—

(a) if that person is an unrehabilitated insolvent;

(b) if that person has been convicted of an offence and in respect thereof

sentenced to imprisonment without the option of a fine; or

(c) unless that person is a South African citizen permanently resident in the

Republic. (3) A member of the Council shall vacate office if he or she—

(a) becomes disqualified in terms of this section from being appointed as a

member of the Council;

(b) is according to law detained as a mentally ill person;

(c) has, without the leave of the Council, been absent from three consecutive

meetings of the Council;

(d) is removed from office as contemplated in section 6(6); or

(e) resigns by written notice addressed to the Minister.

Meetings of Council

8. (1) The Council shall meet at least four times a year, and meetings shall be held at such times and places as the Council may determine.

(2) The chairperson may at any time convene a special meeting of the Council, which shall be held at such time and place as the chairperson may direct.

(3) A quorum for a meeting of the Council shall be a majority of its members.

(4) Any decision of the Council shall be taken by resolution of the majority of the

members present at any meeting of the Council, and, in the event of an equality of votes on any matter, the person presiding at the meeting in question shall have a casting vote in addition to his or her deliberative vote as a member of the Council.

(5) A member of the Council shall not vote or in any manner participate in the

proceedings at any meeting of the Council nor be present at the venue where such a meeting is held, if, in relation to any matter before the Council, he or she has any interest which precludes him or her from performing his or her functions as a member of the Council in a fair, unbiased and proper manner.

Executive committee

9. (1) The Council shall establish an executive committee—

(a) which shall consist of the chairperson, vice-chairperson and such other

members of the Council as the Council may determine, but which shall not

exceed 25 per cent of the Council’s total membership at the time; and

(b) which shall, subject to the direction of the Council, exercise the powers and

perform the duties conferred or imposed upon the Council by or under this

Act.

(2) The chairperson of the Council shall be the chairperson of the executive

committee.

(3) (a) The executive committee shall meet at such times and places as the chairperson of that committee may direct.

(b) A quorum for a meeting of the executive committee shall be the majority of its members.

Committees of Council

10. (1) The Council may nominate one or more committees, which may, subject to the instructions of the Council, perform such functions of the Council as the Council may determine.

(2) A committee referred to in subsection (1) shall consist of such number of members of the Council and employees of the Foundation, if any, as the Council may deem necessary, and the Council may at any time dissolve or reconstitute such committee.

(3) If a committee consists of more than one member, the Council shall designate a member of the committee to be the chairperson thereof.

(4) The Council shall pay a member of a committee who is not an employee of the Foundation such remuneration and allowances as the Minister may determine with the concurrence of the Minister of Finance.

 

(5) The Council shall not be absolved from the performance of any function entrusted to any committee of the Council in terms of this section.

Advisory panels

11. (1) The Council may establish an advisory panel for every field of the film and video industry it deems necessary.

(2) Every advisory panel shall consist of no more than five persons who have

achieved distinction or have special knowledge or experience in the field in question, and who are not members of the Council.

(3) An advisory panel shall advise the Council on the merits of applications for grants and on any matter relating to the field for which it was established.

(4) Every meeting of an advisory panel shall be chaired by a Council member.

(5) The Council shall appoint persons to an advisory panel on the basis of nominations obtained from the public as prescribed.

(6) An advisory panel shall meet at least twice a year before Council meetings.

(7) A member of an advisory panel shall hold office for a period not exceeding two years, and may be appointed on the same or a different panel after a further two years have elapsed.

(8) A member of an advisory panel shall be appointed on such conditions, including conditions relating to remuneration for attending meetings and for services rendered, as the Minister may determine with the concurrence of the Minister of Finance.

(9) The Council may at any time terminate the membership of a member of an

advisory panel if sufficient reason exists therefor.

(10) A member of an advisory panel shall not vote or in any manner participate in the proceedings at any meeting of the advisory panel nor be present at the venue where such a meeting is held, if, in relation to any matter before the advisory panel, he or she has any interest which precludes him or her from participating as a member of the advisory panel in a fair, unbiased and proper manner.

Right of appeal

12. (1) Any person who feels aggrieved at any action or decision that the Council has taken or made in terms of this Act may, within 30 days from the date on which the action or decision in question was taken or made known by the Council, and after having given notice to the Council as prescribed, appeal to the Minister in the prescribed manner.

(2) The Minister shall appoint one or more independent assessors with knowledge of the film and video industry to assist him or her.

(3) The Minister may, after consultation with the assessors, confirm, set aside or

amend any action or decision contemplated in subsection (1).

Chief executive officer

13. (1) The Council shall appoint a full-time chief executive officer for the Council.

(2) The chief executive officer shall be responsible for the management of the affairs of the Council, and shall report on those affairs to the Council as often as may be required by the Council.

(3) The chief executive officer shall be appointed for such period and subject to such conditions, including conditions relating to the payment of remuneration and allowances, as the Council may, subject to section 15(1)(b), determine, and may be reappointed on the expiry of his or her period of office.

(4) Whenever the chief executive officer is absent for any reason or unable to carry out his or her duties, or whenever there is a vacancy in the office of chief executive officer, the Council may, subject to such conditions and the payment of such remuneration and allowances as it may determine in the manner contemplated in subsection (3), appoint an employee of the Foundation to act as chief executive officer during such absence or inability, or until a chief executive

officer has been appointed in terms of subsection (1), and that employee shall, whilst so acting, have all the powers and perform all the duties of the chief executive officer.

Accounting officer

14. (1) In addition to the other functions entrusted to the chief executive officer by or under this Act, he or she shall be the accounting officer charged with the responsibility of accounting for all money received and the utilisation thereof and be responsible for the property of the Foundation.

(2) (a) The accounting officer may—

(i) delegate to an employee of the Foundation a power conferred upon the

accounting officer by or under this Act;

(ii) authorise such employee to perform a duty assigned by or under this Act to the accounting officer.

(b) A delegation under paragraph (a) shall not prohibit the exercise of the power in question or the performance of the duty in question by the accounting officer.

Staff and conditions of service

15. (1) (a) The Council may, subject to paragraph (b) and on such conditions as it may determine, appoint such number of employees as it deems necessary to enable the Foundation to perform its functions.

(b) The Foundation shall out of its own funds pay to its employees such remuneration, allowances, subsidies and other benefits as the Council may determine in accordance with a system approved for that purpose by the Minister with the concurrence of the Minister of Finance.

(c) The Council may, on such conditions as it may deem fit and if the employee

consents thereto, second an employee, either for a particular task or for a period of time,to the service of a department of State, an organisation or institute in the Republic on condition that such employee’s rights, privileges and benefits by virtue of his or her conditions of service as an employee of the Foundation are not adversely affected by=

(2) The Council may on such conditions and against such security as may be

prescribed by the Minister with the concurrence of the Minister of Finance—

(a) lend money to an employee, or provide collateral security, including

guarantees, to a registered financial institution in respect of a loan granted to

an employee by that financial institution, to enable such employee to acquire,

improve or enlarge immovable property for residential purposes;

(b) lend money to an employee to enable him or her to become a member of a

pension fund approved by the Council or to have a break in service on account

of approved leave without full pay reckoned as pensionable service.

Financing

16. (1) The funds of the Foundation shall consist of—

(a) money appropriated by Parliament to finance the functions of the Council;

(b) money paid to the Council by users of its services;

(c) donations or contributions received from any source;40

(d) interest on investments;

(e) money in the Funds established by section 18; and

(f) income derived under this Act from any other source.

(2) (a) The Foundation shall utilise its funds to defray expenses in connection with the performance of its functions: Provided that at least 75 per cent of the funds contemplated in subsection (1)(a) shall be distributed as grants in support of the film and video industry, unless otherwise approved by the Minister.

(b) The Foundation shall utilise any money contemplated in subsection (1)(a) in

accordance with the statement of its estimated income and expenditure referred to in subsection (3), as approved by the Minister: Provided that, subject to paragraph (a), the Foundation may utilise any amount or portion of any amount required to be so utilized for a particular purpose in connection with a specified matter, for any other purpose in connection with such matter: Provided further

that the Foundation may with the approval of the Minister utilise any balance of such money remaining at the end of the financial year of the Foundation for any expenses in connection with the performance of its functions.

(c) The Foundation shall utilise any donations or contributions contemplated in

subsection (1)(c) in accordance with the conditions, if any, imposed by the donor or contributor concerned.

(3) The Foundation may, in respect of any work completed or service rendered by it under this Act, charge such fees or make such other financial arrangements as it may deem fit.

(4) The Foundation may invest any unexpended portion of its funds with the

Corporation for Public Deposits.

(5) The Foundation may establish such reserve funds and deposit therein such

amounts as the Minister may approve, with the concurrence of the Minister of Finance.

(6) (a) The Foundation shall in each financial year, at such time as the Minister may direct, submit a statement of the Foundation’s estimated income and expenditure during the following financial year, and the Foundation may also

during the course of a financial year submit supplementary statements of the Foundation’s estimated expenditure for that financial year, to the Minister for approval, granted with the concurrence of the Minister of Finance.

(b) The Foundation shall not incur any expenditure in excess of the total amount

approved under paragraph (a).

Audit, annual and financial report

17. (1) The Auditor-General shall audit the accounts and balance sheet of the

Foundation.

(2) The Foundation shall—

(a) furnish to the Minister such information as he or she may call for in

connection with the activities and financial position of the Foundation;

(b) submit to the Minister an annual report containing a balance sheet, a statement of income and expenditure certified by the Auditor-General and such other particulars as the Minister may require.

(3) The Minister shall table the report referred to in subsection (2)(b) in Parliament within 14 days after receipt thereof if Parliament is then in ordinary cession or, if Parliament is not then in ordinary session, within 14 days after the commencement of its next ordinary session.

Establishment and control of Funds

18. (1) There are hereby established two funds to be known as the Film and Video Initiative and the Film Development Fund, respectively.

(2) The funds shall consist of—

(a) money appropriated by Parliament; and

(b) any other money accruing to the Fund in question from any other source.

(3) The purpose of the Film and Video Initiative is to provide funding for feature films40 and video projects.

(4) The purpose of the Film Development Fund is to provide funding for—

(a) entry level producers and first time directors;

(b) bursaries for study in film making;

(c) short and specialised film and video productions; and

(d) script development.

(5) The Funds shall be controlled and administered by the Foundation in accordance with the provisions of this Act.

(6) The Council shall open separate accounts with a bank as defined in section 1 of the Banks Act, 1990 (Act No. 94 of 1990), in which the money of the respective Funds is to be kept.

Losses and damage

19. (1) If a person who is or was in the employment of the Foundation caused the Foundation loss or damage because he or she—

(a) failed to collect money due to the Foundation for the collection of which he or

she is or was responsible;

(b) is or was responsible for an irregular payment of money of the Foundation or

for payment of such money not supported by a proper voucher;

(c) is or was responsible for fruitless expenditure of money of the Foundation

owing to failure to carry out his or her duties;

(d) is or was responsible for a deficiency in, the destruction of, or any damage to

the Foundation’s money, stamps, face value documents and forms having a

potential value, securities, equipment, stores or any other property of the

Foundation;

(e) is or was responsible for a claim against the Foundation owing to failure to

carry out his or her duties, the accounting officer shall determine the amount of such loss or damage, and may order that person, by notice in writing, to pay to the Foundation, within 30 days from the date of such notice, the whole or any part of the amount so determined: Provided that the accounting officer may not make such an order before the person concerned has been afforded an opportunity of making representations in writing to the accounting officer

regarding the loss or damage which the person is alleged to have caused.

(2) If the person contemplated in subsection (1) fails to pay the amount within the period stipulated in the notice in question—

(a) the amount may, subject to subsections (3) and (4), be deducted from his or

her monthly salary: Provided that such deduction shall not in any month

exceed one-fourth of such monthly salary;

(b) the accounting officer may, subject to subsections (3) and (4), recover the

amount from such person by legal process.

(3) If, within the period stipulated in the notice in question, the person makes an offer to pay the amount in instalments, the accounting officer may allow payment in such instalments as may be reasonable.

(4) A person who has been ordered to pay an amount in terms of subsection (1) may, within a period of 30 days from the date of the order, appeal in writing against such order to the Council, stating the grounds of appeal, and the Council may, after such investigation as may be necessary, dismiss the appeal or order that the appellant be exempted, either wholly or partly, from the payment of such amount.

Delegations

20. (1) The Council may—

(a) delegate to the chairperson, the chief executive officer or any other employee

of the Foundation any power conferred upon the Council by or under this Act,

on such conditions as the Council may determine, but excluding the power to

make grants and to grant loans;

(b) authorise the chairperson, chief executive officer or other employee to

perform any duty assigned to the Council by or under this Act.

(2) The chief executive officer may—

(a) delegate any power conferred upon the chief executive officer by or under this Act to an employee of the Foundation;

(b) authorise such employee to perform any duty assigned to the chief executive

officer by or under this Act.

(3) A delegation under subsection (1) or (2) shall not preclude the exercise of the power in question by the Council or the chief executive officer, as the case may be.

Regulations

21. (1) The Council may, subject to the approval of the Minister and by notice in the Gazette, make regulations regarding—

(a) the procedure at meetings of the Council; (b) a Code of Conduct for members of the Council and advisory panels in order to prevent conflicts of interest and bringing the Foundation into disrepute, and, in general, regarding any matter in respect of which the Council deems it necessary or expedient to make regulations in order to achieve the objects of this Act. (2) The Minister may, by notice in the Gazette, make regulations regarding—

(a) any matter which may or shall be prescribed in terms of this Act;

(b) any other matter which may be necessary or expedient in order to achieve the objects of this Act.

(3) No regulation relating to State revenue or expenditure shall be made by the

Council or the Minister except with the concurrence of the Minister of Finance.

(4) Any regulation made under subsection (2) may provide that any person

contravening such regulation or failing to comply therewith, shall be guilty of an offence and liable on conviction to a fine or to imprisonment for a period not exceeding six months.

Short title and commencement

22. This Act shall be called the National Film and Video Foundation Act, 1997, and shall come into operation on a date fixed by the President by proclamation in the Gazette.

 

2. Appendix 2

27. Section 4 of the National Film and Video Foundation Act, 1997, is hereby amended-

1. by the deletion in subsection (2) of the word "and" at the end of paragraph (g), the addition of the word "and" at the end of paragraph (h) and the addition to that subsection of the following paragraph:

1. by the substitution for subsection (3) of the following subsection:

"(3)(a) The Foundation shall not itself establish, acquire or operate any organisation or institution connected with the film and video industry, but the Counci1 may, subject to the approval of the Minister and the Minister of Trade and Industry, establish a separate legal entity for purposes of film and video projects in accordance with the objects of this Act

(b) The Foundation may initiate such projects which it considers necessary in pursuit of its objects, provided that such projects are undertaken in partnership with existing organisations, or institutions which have the capacity to undertake the projects."

28. Section 6 of the National Film and Video Foundation Act, 1997, is hereby amended by the addition of the following subsection:

"(10) The Minister may dissolve the Council on any reasonable grounds.".

29. Section 9 of the National Film and Video Foundation Act, 1997, is hereby amended by the substitution in subsection (1) for paragraph (a) of the following paragraph:

"(a) which shall consist of the chairperson, vice-chairperson and [such] no more than four other members of the Council, [as the Council may determine, but

which shall not exceed 25 per cent of the Council’s total membership at the time] determined by the Council; and".

30. Section 16 of the National Film and Video Foundation Act, 1997, is hereby amended by the substitution in subsection (2)(b) for the words preceding the first proviso of the following words:

"The foundation shall utilise any money contemplated in subsection (l) (a), in accordance with the statement of its estimated income and expenditure referred to in subsection [(3)] (6), as approved by the Minister:".

31. Section 17 of the National Film and Video Foundation Act, 1997, is hereby amended by the addition of the following subsection:

"(4) Within five months after the report has been tabled, a delegation consisting of the chairperson of the council and at least two other council members must brief the Portfolio Committee on Arts, Culture, Science and Technology on the annual report.

It is a national imperative to create facilities for ordinary South Africans to bear influence in the expression of their own images, thereby deepen democracy and create prosperity. The National Film & Video Foundation strives for the realization of this noble ideal.

To create an environment that develops and promotes the South African film and video industry domestically and internationally.

A South African film and video industry that mirrors and represents the nation, sustains commercial viability, encourages development and provides a medium through which the creative and technical talents of South Africans are able to reach the world.

Creativity

Freedom of expression

Entrepreneurship

Equitable redress

[PMG note: table not included]

The NFVF has successfully gone through the founding, forming and establishment phases. In the current cycle, 2003 - 2007 the strategic focus is rapid sector development and growth through expansion to impact mostly on the disadvantaged sections of the population, the creation of new services by exploiting technology developments, deeper penetration of the existing markets, capital formation to address the need for new equipment, technology and facilities, increase the institutional capacity of the NFVF. All this is done in line with the Cultural Industry Growth Strategy (CIGS) and other national prerogatives.

The NFVF is committed to the transformation of the film sector to be one of the main streams of GDP growth in South Africa. This calls for the paradigm shift to a sector development where the government, industry, and organized communities carry out their roles guided by a common macro policy framework. The macro policy framework must be informed by reliable measures of aggregation and Key Performance Indicators. In terms of Standard Industrial Classification, (SIC), the film industry is regarded as part of the sector for transport, storage and communication and also part of the sector for community, social and personal services including recreational services. The fragmented statistics relating to the sector makes it difficult to measure economic performance and therefore sector investment attractiveness. To address these challenges the NFVF will undertake the development of Sectoral Information Systems (SIS) in order to accurately measure sector performance and the related economic and job multiplier effects. This will be achieved through collaboration with Statistics South Africa, The South African Revenue Services, The Department of Trade & Industry, the Treasury and the Reserve Bank and DAC. The Sectoral aggregate measuring system will be aligned to the GDP measures and it will be aligned to the Cultural Observatory concept. The model below shows the intended Sector Information System (SIS).

[PMG note: table not included]

The stimulation of demand-driven economic growth can be achieved through Integrated Promotional and Development Campaigns by the NFVF, the government and the industry simultaneously measure the direct impact of this initiative to industry aggregate revenues and contribution to tax. Industries that show sustainable growth and dynamism are those that have moved away from production orientation to marketing orientation. This paradigm shift prescribes that production must be guided by intelligent marketing information of what the consumer want, how much the consumer is willing to pay and how best it is reached by means of persuasive communication. In other industries such initiatives are done by industry bodies. Since there is no Film Industry Body NFVF can take leadership in this regard.

Since 1994 there has been a steady growth of the core market for film, LSM 5, 6, & 7. The decline in film consumption revenues and the closure of screens in recent times contradicts the growth in the potential demand. NFVF will undertake an integrated marketing campaign and research to turn this situation around. This requires a collaborative between The Department of Arts, Culture, Science & Technology, The Department of Trade & Industry, South African Revenue Services, The South African Broadcasting Corporation, Government Information Services, Department of Education, other Government Departments that carry out massive public communication campaigns and the Film Industry.

In order to appeal to all segments of audiences the production of local content and genre with global appeal should be a high national priority. The production of African Genre for the entire continent can be enhanced through initiatives such as NEPAD. The scripting, filming and screening of continental legends and stories can have a catalytic impact on the demand for local content and contribute towards African Renaissance and identity. At the moment it is perceived that local stories have marginal commercial value for local and export markets. This is a myth that needs to be corrected. India has demonstrated beyond doubt the demand for indigenous content by international markets. The NFVF will undertake the establishment of the South African Film Portfolio that mirrors the cultural diversity of South Africa and align this to specific global market through co-production and distribution treaties. The co-production and distribution arrangements will stimulate sustainable trans-national business development including the SMME’s, NGO’s, and CBO’s and result in net exports and capital inflows into South Africa. The NFVF envisages the co-production and distribution arrangements and treaties an essential part of Trade in Intellectual Property, (TRIPS), Trade in Investment Measures, (TRIMS). Local script writers, producers and distributors will be helped with producing and appropriating their wares through advice on investment, business development, production incentive schemes available in South Africa and else where in the world as well as with copyright and intellectual property laws.

This initiative requires collaboration between NFVF, DACST, DTI, SABC and NEPAD. DACST has already committed R35 Million to NFVF over the next three years for the production of local feature films. This will go a long way as an impetus of this initiative.

This requires a collaborative effort between the NFVF, DAC, GCIS, NEPAD, Foreign Affairs, the Ministry of the President, the SABC, global media and the Industry.

Global trends indicate that the film industry has high propensity for technological innovations in setting up infrastructure and facilities. South African film industry needs to keep abreast with the world with respect to technological, infrastructure and facilities development in order to remain competitive. Developments in communication and multi media technologies need to be harnessed and enhanced by the film sector. This requires collaboration between the NFVF, DAC, Department of Communications, Department of Trade & Industry, Department of Public Works, Provincial and Municipal Governments and the Industry.

The diagrams that follow provide the model for technology logic that must be harnessed by the film industry.

The second diagram shows the model for capitalization and facilities creation that can be obtained from various sections of society, the public goods from the public sector, the quasi public goods from public private partnerships and the private goods from the private sector and the individuals.

[PMG note: table not included]

Human Capital Development consists in a system of education, and training as well as the concomitant facilities and amenities such as schools, collages, technikons universities, commercial entities, and apprenticeship and mentorship programs. In South Africa Human Capital Development is legislated in terms of the South African Qualifications Authority Act No. 58 of 1995, the Skills Development Act No. 97 of 1998 and the associated Skills Development Levies Act of 1999, as well as the policies on transformation of the Tertiary Sector Education These legislations policies have to do with general education in schools, further education and training in collages and schools, higher education in universities and technikons, South African competitiveness in the global knowledge economy, work, basic conditions of employment performance, equity and redress, labour relations, redesigning of the future and industry specific skills development. NFVF commits to compliance and harnessing of the skills developments in terms of national policy, legislative and regulative framework.

In line with the national policy, legislative and regulatory framework skills development within the film sector requires a combination of competencies ranging from script writing, production, crew development, project management, marketing, accounting, entrepreneurship, banking, and law dedicated to the industry, as is the case with all other industries; facilities such as film faculties or departments within the existing tertiary sector, special schools to deal with industry specific requirements, in-house apprenticeship and mentorship programs within businesses.

Harnessing skills development and facilities requires collaboration between NFVF, DAC, Department of Education, Department of Labour and other national skills development communities governed in terms of the Skills Act, the Provincial and Municipal Governments. In particular, the establishment of a special film school is a project that requires a feasibility study.

This legislation stipulates the establishment of a trading entity of the film sector to be driven collectively by the NFVF and Department of Trade and Industry (DTI). The establishment of this entity requires a Memorandum of Understanding (MoU) between DAC, the NFVF, DTI, and other institutions within Trading & Industry. A feasibility and viability study must be done. NFVF will play a catalyst role in this regard due to its position of advantage in understanding the dynamics of the film sector.

Funding initiatives requires all the sophistication involved in establishing a fund management. Other than the allocation by DACST, the NFVF will explore other sources such as the National Empowerment Fund (NEF), the skills development levy grant schemes, the Lotto, co-production treaties, contributions by television broadcasters and Industrial Corporate Social Responsibility Programs.

NFVF will initiate a special project plan to conduct a feasibility study and to raise additional funding and redistribute the revenue for empowerment and talent incubation.

The realization of all strategic initiatives requires ongoing collaboration and cooperation with a number of government departments, policy and legislation formulation institutions and other stakeholders. Government departments are proactive actors in policy and fiscal matters and they are also potentially potent consumers of film. The interests of stakeholders need to be properly assessed and accounted for in terms of the outcomes and the impact of the strategic initiatives. The creation of good will, alliances and support long before transactional relationships or conflict commence is critical for the success of the initiatives and policy formulation.

In order to ensure participation of stakeholders the NFVF will encourage formation of and work with film sector forums, associations, federations and relevant special interest groups.

The NFVF is committed to the principles of cooperative and intergovernmental relations as defined in the Constitution, Batho Pele and Integrated Service Delivery.

The demands on the NFVF and the required societal impact prescribe commensurate stature, structure and capacity. The diagrams above are a comparator of the current situation to the desired situation. The essence of the desired situation is that inputs must produce the desired outcomes as green fields effects sufficient to create societal impact threshold and critical mass. The NFVF business machinery operates on 25% of budgetary allocation. To keep to this quota and yet produce the critical societal impact, the inputs must be increased. This increase in inputs can be achieved through the creation of synergy with the key role players across government and industry, the NFVF as broker. The NFVF aspires and is inspired by institutions such as SATOUR (South African Tourism), NRF (National Research Foundation), and National Parks Board. These institutions have demonstrated noticeable transformation of their sector domains. The stature, structure, capacity and competencies of the NFVF must also be deepened and broadened in terms of organization.

The Organogram below shows the functions required to achieve the strategic intent and impact.

The development of NFVF Corporate Identity and Brand Equity will be achieved as part of the Integrated Marketing and Promotional Campaign. The exclusive treatment of this matter is made necessary by the fact that corporate identity and Brand Equity are intellectual assets in their own right. In order for NFVF to play its respective role in society, it needs to establish a credible Corporate Identity and image among all stake holders. This can be achieved through a dedicated initiative.

The intended strategic initiatives will depend to a large extent on good governance.

Since inception the Auditor General accorded the NFVF a bill of good health in financial and material management matters. This is attributable to unwavering commitment good governance and management through compliance with the pronouncements in the NFVF Act of 1997, the Protocol for Corporate Governance in the Public Sector including the Public Finance Management Act, (PFMA) and The King Report. The NFVF also recognizes and strives to adhere to the following Corporate Governance best practice principles:

• Direction: The NFVF has formulated the strategic plan and the governance manual to provide ethical code, guidance and direction to the future.
• Executive action: Involvement of the Council in crucial executive decisions
• Supervision: Monitoring and overseeing by the Council of management processes.
• Accountability: Recognizing responsibilities to those making a legitimate demand for accountability.
• Having clear majority of outsiders on the council, with no management ties;
• Having formal evaluation of the council, its committees and panels.
• Responsiveness to stakeholder requests for information on governance, management and performance issues.
• Ensure that strategic risks are recognized, pre-empted, communicated to the Council, National Government and the stakeholders if need be.

• Ensure that communications with stakeholders are accurate, timely and fully compliant with financial reporting and other standard and rules.
• Procurement and continuous development of competent managers and staff.
• Ensure that remuneration of management and staff is market related and that excellent performance is appropriately rewarded.
• Ensure that internal systems and controls are well designed and monitored to ensure compliance with strategic priorities and plans.

Involvement of other organs of the state in the projects of NFVF and hold public accounting sessions to ensure participation, accountability and transparency.