Report
of the Portfolio Committee on Finance on Budget Vote 13: Statistics South Africa, dated 20 May 2005:
The
Portfolio Committee having considered Budget Vote 13: Statistics South Africa,
reports as follows:
1.
Introduction
The
Statistician General was invited to make a presentation of StatsSA’s strategic
plan and medium term budget requirements.
The Committee commended StatsSA on a much-improved strategic plan but
raised a number of questions related to the presentation, the strategic plan
and the budget. These are summarised below.
1.
Issues raised by the Committee
In
its deliberations of StatsSA’s strategic plan, and the presentation by the
Statistician General, the Committee raised the following issues:
2.1
Quality control and credibility
The Committee
enquired as to what steps StatsSA was taking to ensure quality control in the
collection and reporting of statistical information that ensured StatsSA
regained its credibility. The issue of quality control, producing quality
statistics and credibility is of grave concern to the
Committee. Of particular concern with respect to quality control was the use of
postal surveys to collect data. With respect to the credibility of the
statistics reported by StatsSA, the Committee enquired whether StatsSA is able
to defend and explain their new methodologies.
The
Statistician General and representatives of StatsSA acknowledged the
Committee’s concern about quality control and said they are on a continual and
incremental path of improving the quality of the statistics they were
reporting.
StatsSA
is transforming their approaches to data collection and while this
transformation process continues they will use a
number of what are now outdated techniques but will run these in parallel with
more modern approaches. Therefore postal surveys are not the only technique used,
but are part of a portfolio of approaches used to collect data. While the adjustment to the new techniques are under way errors may be
made as processes are refined.
StatsSA
is engaging with international bodies such as the IMF, EU and Rosc commission
and Standard and Poor to find ways in which systems and techniques can be
improved.
The
Statistician General mentioned that it is important that StatsSA be open and
honest about mistakes made to help build confidence. He felt that StatsSA should be compared to
its peers; for instance very few countries report the
Consumer Price Index on a monthly basis.
StatsSA
commented that they are working with the media to ensure that its findings are
reported accurately. StatsSA also has
intentions to train journalists. This
process will ensure that findings of new methodologies are
better communicated than in the past and no longer create controversy.
StatsSA
commented that their ability to report accurate information for a number of
sectors was largely at the mercy of departments’ ability to supply the
information. StatsSA are working closely
with departments so that they can provide StatsSA with quality information and also enable StatsSA to provide them with information
they are able to use. A key department
is the Department of Home Affairs where there is a project to construct the
population register, however this is fraught with challenges.
The
Statistician General commented that they are making incremental improvements in
collecting data as they become better at managing the sampling frames they
use. StatsSA is also adopting a strategy
of sticking to the vision of “preferred provider of quality statistics” and
focusing on that and not getting involved in unnecessary activities.
2.2
Capacity building
The
Committee asked StatsSA what their approach to building capacity is to ensure
that
StatsSA
has the necessary skills in-house to collect the relevant data.
The
Statistician General responded that they used international consultants,
particularly from Australia and Canada, to transfer skills and is working with
various education institutions in South Africa and elsewhere in Africa to
develop the necessary skills. The Statistician General commented that the
individuals in StatsSA have to be “eager” to learn and acknowledged StatsSA
needs a more systematic approach. StatsSA is also implementing specific steps
to improve the quality of statistics such as weekly question and answer
sessions. The weekly sessions should
help StatsSA to transform staff from being good statisticians to being good
statisticians that can make sense of economic and social information.
2.3
The quality of information collected during Community Surveys
The
Committee felt StatsSA did not take sufficient steps to ensure that the staff
that conducted community surveys was adequately trained to deal with the
situations and frustrations they would be faced with. The Committee asked how StatsSA will ensure this is run more professionally in the
future. The Committee asked that StatsSA
look at ways to get around challenges they are facing such as “high walls” that
are compromising their ability to collect quality data and implement techniques
that assure StatsSA reports quality information. The Committee asked if they could report on
the state of development and specifics in terms of municipal prioritisation.
StatsSA
responded by asking that they be allowed to investigate reasons for
unprofessional or poor conduct in the collection of data for community surveys
as they themselves were trying to establish reasons for this. StatsSA also asked that they be given time to
refine their sampling techniques as they are applying new methodologies to get
around the problems they are facing.
Some of these techniques are proving to be successful, such as the new
diaries approach and the point of sale approach, but these techniques produce
new types of data that differ from the old data sets, and these differences
need to be understood by users.
2.4
New Methodologies and “Compliance”
The
Committee felt StatsSA needed to explain what it referred to as compliance and
what the new methodologies are.
The
Statistician General responded by saying they have a new Swedish system for approving
methodologies that explains how the methodology should be implemented on a step-by-step basis.
They are also using a framework provided by the Rosc Commission that
provides a multi-dimensional basis on which compliance is measured.
2.5
Tabling and reporting on Measurable objectives and targets
The
Committee commented that StatsSA’s targets and measurable objectives shown in
the strategic plan this year showed no continuity from the strategic plan
tabled last year. The Committee enquired
how StatsSA is going to measure its performance and report on that
performance. The Committee wanted to
know how well StatsSA had reached its targets set in the previous year.
The
Statistician responded by saying that StatsSA had met most of the targets set
in the previous strategic plan and in fact very few had not being met. The Statistician General also stressed that
new methodologies were being implemented and the way in which the
implementation of these were being implemented need to be explained and
understood and hence some of the measurable objectives may appear poorly
constructed at this time.
2.6
Improvements on Qualified Audit Report
The
Committee enquired what progress StatsSA had made on resolving the issues that
resulted in the entity getting a qualified audit opinion and how they would
ensure that they would achieve an unqualified audit opinion in the future. The Committee also asked what StatsSA was
doing to ensure compliance with the Public Finance Management Act.
The
Statistician General responded by saying that StatsSA was making progress on
improving processes, systems and organizational structures to ensure that they
received an unqualified audit opinion and were continually improving their
compliance with the PFMA. However Census 2001 put StatsSA under tremendous strain that
affected systems and this caused the qualified audit opinion. It also put strain on StatsSA’s
implementation of the PFMA.
2.7
Improving financial management and information technology systems
The
Committee asked StatsSA what steps it was taking to improve its financial
management systems and information technology systems.
StatsSA
noted that the information technology systems were an issue of critical concern
and they have hired consultants to assist in identifying appropriate software.
StatsSA commented that one of the biggest problems caused by the current system
was that there were too many users with access that allowed
them to edit the data and differences in systems that required
formatting that caused data to be lost during transfers and formatting
processes.
2.8
Statement from the Council
The
Committee noted the strategic plan referred to the Council yet did not include
an official statement from the Council. The Committee asked StatsSA to explain
the role of the Council and who sits on the Council.
StatsSA
indicated that the Council will have 25 members. There are nine members from provinces; one
from each province as nominated by the premiers. The rest of the members belong to interest
groups e.g. organized labour. These
interest groups must show a particular interest in the production and use of
data. The Council will advise the
Statistician General, the Minister, interest groups, organs of state etc on
matters relating to statistical data.
This could be matters of production, analysis, storage etc. After StatsSA met
with the Committee in Parliament in October 2004 they met with the Council and
agreed on broad levels of work that the Council will take interest in and they
will leave the instruments of measurement for StatsSA to implement. The Council must produce an annual report
that they will submit to the Statistician General and Minister indicating
issues of concern. The Minister should
then report to Parliament on what issues were accepted and which weren’t and
give reasons for the areas of advice that were not adopted. At this stage the members are still advising on their ability to
serve. Once this process is finalized StatsSA will engage with the Council and find
ways to work constructively with it.
2.9
The position of the Deputy Director General
The
Committee enquired what the position of the current Deputy Director General
was, and what is being planned to find a replacement.
The
Statistician General explained that the DDG is currently suspended and subject
to disciplinary proceedings. Due to
these proceedings there will be time delays before the
next DDG can be appointed. The Statistician General noted that this is causing
problems as many staff are in acting positions, which
is not helpful.
2.10
The quality of StatsSA’s budgeting processes
The
Committee enquired why the budget totals fluctuated so considerable and what
the reasons are for the overspending of budget totals, under-spending on some
programmes and no allocations for important programmes. The Committee expressed particular concern
about the funding for the cause of death survey.
The
Statistician General noted that the recent fluctuations in the budget can be attributed to the decision not to run Census 2006,
but rather Census 2011. Now that the
processing of Census 2001 is complete the budget
allocations have dropped considerably. The fluctuations in programme budgets
can be attributed to the project nature of the work StatsSA does and the change
from the census to conducting the community surveys. StatsSA commented that the Department of
Health did not participate fully in the cause of death survey and that is why
sufficient budget allocations were not made for that project.
2.11
Ensuring the use of the information
The
Committee enquired what measures are being put in place to ensure that they
tracked the usefulness of information to users and what steps were being taken
to ensure that the information is accessible to small, micro and medium
enterprises, the informal sector, schools and health institutions.
The
Statistician General responded that StatsSA has been performing a survey on the
usefulness of the data, but at this time the results
will not be made public, as trends cannot yet be established. StatsSA has established sophisticated
technology to ensure that information is easily accessible and they believe
they have developed information that is very useful to the Department of Trade
and Industry for SMMEs. The Statistician
General stressed that it is important that other departments co-operate with
StatsSA to help collect data, ensure the usefulness of data, limit duplication and also suggested that each department have their own
statistician that can assist StatsSA with collecting necessary data. The
Statistician General commented that there was a need for the various
departments and municipalities to access and use the
data. The Statistician General also commented on the success of census@schools saying it has been successful
in collecting information and getting children to learn to play with the data.
StatsSA
commented that they are recording the number of enquiries made by the public
for specific information and proactively communicating with stakeholders,
through road shows and pamphlets, to create awareness of the statistics and
feedback mechanisms available.
2.12
Construction industry and trade flows information
The
Committee enquired how StatsSA is ensuring that accurate information for the
construction industry will be collected and why StatsSA is not collecting
information on trade flows.
StatsSA
indicated that they are aware that existing techniques to capture information
on the construction industry are not optimal.
StatsSA commented that due to the nature of the work in that industry it is very difficult to accurately capture
construction industry information but they were examining international
practices to establish a better approach.
StatsSA stated that SARS and the Department of Trade and Industry
collect trade information and that is where they got their trade information.
2.13
Use of consultants
The
Committee noted that there was an alarmingly high ratio of consultants in
StatsSA.
The
Statistician General noted that the consultants are actually temporary
employees, but are called consultants to indicate they are not employed on a
full time basis. StatsSA uses few
consultants on a permanent basis.
2.14
The necessity of another census
The
Committee asked if it is in fact necessary to have another census when new
sampling frames and collection techniques are being used.
StatsSA
responded that it is necessary for a Census to be performed as these new
techniques and sampling frames do not ensure that every single citizen is
counted.
3.
Committee recommendations
Based on its
deliberations the Committee makes the following recommendations:
Report
to be considered.