REPORT OF PORTFOLIO COMMITTEE SCIENCE AND TECHNOLOGY_ ON THE CORPORATE STRATEGIES FOR 2006/ 2007 OF THE DEPARTMENT OF SCIENCE AND TECHNOLOGY AND ITS ENTITIES. THE NATIONAL DEPARTMENT OF SCIENCE AND TECHNOLOGY AND ITS ENTITIES PRESENTED HEARINGS TO THE PORTFOLIO COMMITTEE ON SCIENCE AND TECHNOLOGY.

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In terms of current National Assembly's processes, all Parliamentary Portfolio Committees are required to consider and report on Departmental and Public Entity's budget reports and corporate Strategies after tabling and referral by Parliament. The objective of consideration of the budget and strategic plans is to assess the performance of the Department of Science and Technology (DST) and its Entities that report to it against the targets set in the previous financial year and as well as strategic objectives that DST and its Entities were set to achieve. The Following entities participated in the Budget Hearings

• Department of Science and Technology

• Council for Scientific and Industrial Research (CSIR)

• National Research Foundation (NRF)

• Human Science Research Council (HSRC)

• Council for Geosciences (CSG)

• Godisa Trust

• Academy of Science of South Africa (ASSAf)

• Tshumisano Trust

• National Advisory Council of Innovation (NACI)

Chairperson's Overview:

Chairperson emphasised the Corporate Strategy and Business Plan should be guided by the Budget Speech, State of the Nation Address (SoNA,) Estimates of National Expenditure (ENE), Medium Term Expenditure Framework (MTEF) budget process, government priorities and plans against available resources and it should be done within the confines of the Public Finance Management Act (PFMA). It should also be meaningful to the society it aims to address.

DEPARTMENT OF SCIENCE AND TECHNOLOGY (DST): KEY MESSAGES IN THE STATE OF THE NATION ADDRESS

Ms M Pyoos, Acting Director General of DST, presented a paper on key messages in the State of the Nation Address (SoNA) that had a bearing on DST and highlighted certain substantive issues.

DST is aligned with the Presidents focus in terms of where the economy is going and the development needs of the country. Their perspective is to push for increase in expenditure in Research and Development (R&D), both in public and private sector. As a result of their efforts, Minister T Manuel announced the tax incentive in his budget speech that is the 150% tax deduction that would be made available to the private sector. This is viewed by DST as an achievement and contribution to reaching the projected economic growth of 6%. DST has been reconfiguring itself in term of social delivery to address issues of poverty and have a social impact.

In terms of Research and Development (R&D), they are focusing on increasing the pool of young researchers and DST has specific focus in building core research capacity through Centres of Excellence (CoE) and the South African Research Chairs Initiative. DST hopes that the CoE will act as a magnate for attracting young researchers and strengthen research that is taking place. The Research Chairs Initiative will be aimed primarily at universities and hope to generate masters, doctoral and post doctoral students in a range of fields that are aligned to the Science and Technology (S& T) mission and focus areas. These universities would have to make proposals to DST and it would have to be in line with the national R&D strategy. DST aims to establish 20 Research Chairs in 2006 and hope to have 210by2010.

Issues and / or comments raised by the Committee and Responses and or / Undertakings from DST:

• The Committee recommended that DST include cooperation with Africa and other international countries to the key messages. Mathematics and science is important and therefore it is imperative that DST cooperates with the Department of Education. Requested from DST how they plan to attract and retain qualified research scientist to the higher education sector? What DST can tell the Committee about Higher Education South Africa (HESA) in terms of skills development?

Ms Pyoos, agreed that mathematics and science are key subjects and that the Human Sciences Research Council (HSRC) will work with universities in terms of skills development and this is evidenced by the Joint Statement of the Human Sciences Research Council (HSRC) and HESA on collaboration between Science Councils and Universities.

• The Committee also wanted to know who is responsible for setting the criteria or strategic nature of the research, as one does not want research that cannot be utilised. Whether the Research Chairs Initiative will be given a specific mandate or plan in terms of what it is they should achieve and whether that mandate or plan has come about through consultation with various stakeholders. Whether there are any Key Performance Areas (KPA's) or mechanisms with regard to attracting women and people with disabilities in the Research Chair Initiative?

Ms Pyoos responded that applications for the Research Chair Initiative would have to be made by universities and they would have to have a strong case to be awarded an award. The research Chair Initiative is not only about recognizing research effort but also research excellence. The award would be for a period of five years with the possibility of renewal for a further two cycles. Research has to be in line with DST’s R&D Strategy and broader national priorities. Would not immediately be able to find the right number of women and people with disabilities to hold positions as Research Chairs. However, through the Research Chairs Initiative will start the development of female and people with disabilities as researchers or scientists. Do not have any targets set for the Research Chairs as they are still in the initial stages. DST cannot guarantee that within the four-year programme that they will be able to place women or people with disabilities as Research Chairs, however they do monitor periodically the statistics on gender, race and disability. The mandate is that all universities strive to increase the level of world-class researchers. Support will be given to historically disadvantaged universities to help build a case in order to be awarded an award for Research Chair.

• The Committee further requested that DST formulate performance indicators to ascertain whether their interventions have made an impact in the second economy. If they have projects that have a potential to make an impact on the second economy and if so, how would they replicate them?

Ms Pyoos said that DST works parallel to the ASGISA principles. Do have successful projects, however in order to replicate such projects at critical level DST would have to consult other departments and it would also depend on whether they have a budget for it.

• The Committee asked that Ms Pyoos relate her presentation more to key elements raised by Accelerated and Shared Growth Initiatives of South Africa (ASGISA).

Ms Pyoos responded that DST is already heavily engaged in ASGISA elements, particularly in the bio-fuels front. They are jointly driving it with the Department of Minerals and Energy (OM E). DST made considerable gains last year when chairing the Bio-Diesel Joint Implementation Committee. This initiative included the participation of Members of SANPAD and a number of agricultural associations and research institutions. Through DST's efforts the Bio-Diesels Standards was adopted in 2005. DST is also working together with the Department of Trade and Industry (DTI) as they have the chemical sector strategy.

Ms Pyoos said that the Corporate Strategy of DST was premised on National System on Innovation (NSI) objectives, which is human capital growth, growing the economy and more importantly improving the quality of life for all people. The Corporate Strategy was also aligned to the National R&D Strategy. Have Cabinets approval that there will be R&D expenditure of 1 % by 2008. Both public and private R&D must grow.

DST has been arguing the case of recapitalisation and upgrading of ageing and obsolete research equipment. Very competitive process however which the National Research Foundations (NRF) will manage the upgrading of research equipment. Secured approval from Cabinet for the construction of the Karoo Array Telescope (KAT) in the Northern Cape.

DST has taken over the National Zoo from Arts and Culture in order to ensure that it is funded and remains a viable organization within NSI. The High Performance Computing (HPC) facility will be established in Meraka Institution, which is a subsidiary in CSIR and therefore will have to report to DST through CSIR. The Meraka Institute will have to drive research in IT support and open soft wear. It houses all of governments strategic intentions in the IT and communications field.

Rational behind the tax incentive given by Minister of Finance is for productive investment. The cost of doing research has been lowered and therefore companies will employ more engineers and scientist.

Issues and / or comments raised by the Committee and Responses / Undertakings from DST:

• Committee requested that DST forward monthly performance plans to the Committee in order to keep the Committee updated. DST mentioned International Centre for Genetic Engineering and Biotechnology (ICGEB), but not International Centre for Scientific and Technical Information (ICSTI). Was there a reason that ICSTI was omitted from the presentation?

Ms Pyoos responded that they mentioned ICGEB as they are putting forward a bid to win the award to have the Infections Diseases Centre built here in South Africa and not elsewhere in the Africa. They omitted ICSTI as they have already briefed the Committee on it.

• As Indigenous Knowledge Systems (lKS) has received more funds and was upgraded from Unit to Sub-Programme, does it meal') that it will receive more attention to ensure that the policy is implemented?

Ms Pyoos said that as IKS policy is at a technical level and that will deal with the regulatory issues, however on the other hand there is commitment from DST for more projects and research work.

• Is there a strategy in place for Information Communication Technology (ICT) by informed industry?

Ms Pyoos responded that DST envisages that with the tax incentive the private sector will grow. DST, Department of Trade and Industry (DTI) and National Treasury will be conducting road shows, i.e. information sessions. They intend to target small businesses to help them understand how they can benefit from the tax incentives. Only 20% of small businesses contribute to R&D and want to change that to 40% by 2014.

• Whether poverty alleviation projects such as papermaking, will its funding be discontinued or will they be moved to Arts and Culture. Satisfied with new mission "technology for poverty reduction", however will other poverty alleviation projects-be abandoned? For example the Ceramics project that was closed down.

Ms Pyoos said that on the poverty alleviation front, DST does employ an exit strategy for its successful projects. For example the paper-making initiatives, it was agreed that businesses needed to be set up and assisted until it was handed over to Arts and Culture. DST therefore does not only train communities but assists them until the businesses are viable. Will follow-up as to why the Ceramics program was closed down. DS1's Budget for social impact is at R116 million, which evidences its seriousness about social impact interventions. Social impact initiatives are social livelihoods and sustainable habitats.

• Committee asked Ms Pyoos to expand on the level of co-ordination with other departments in the field of poverty alleviation. The reason being that when DST discovers that there is a project that works, there is no mechanism to roll out that project in order to have a substantial effect on poverty alleviation. Committee stressed that if there was sufficient coordination between the various departments such projects could be rolled out on a large scale.

Ms Pyoos responded that on the sectoral co-ordination, have structured contractually based co-operation with sector departments. In addition to this, they attend the Economics Cluster where DST together with other departments report on what is happening with the Expanded Public Works Programme and Project Consolidate, which look at the capabilities of municipalities.

COUNCIL FOR SCIENTIFIC AND INDUSTRIAL RESEARCH (CSIR):

Dr S Sibisi, Chief Executive Officer of CSIR, briefed the Committee and highlighted its areas of competence: Background and context for CSIR corporate plan, Strategic objectives to be achieved and Operational plan highlights and financial budget.

Issues and / or comments raised by the Committee and Responses / Undertakings from CSIR:

• Whether CSIR in terms of its role in defense, peace, safety and security is working in partnership with DENEL in ensuring that the objectives are mutually realized?

Dr Sibisi answered that DENEL has been experiencing difficulty but has been given a lifeline. The lifeline did not come easily as it had to outline a plan for its future. CSIR had to interrogate that plan and look at which areas they have to maintain. In this context there has been discussions with DENEL and other stakeholders with a view to forming Defense Evaluation and Research Institute (DERI), which will focus on the areas of activities that have to be maintained but which may not be part of a conventional commercial venture. For example the wind tunnel and strategic test facilities.

These activities will not be sustained by the commercial activity but various countries will be devoting resources into supporting these ventures.

• CSIR referred to platinum mines being notorious for rock falls. However, is it not correct to say that rock falls are more likely to occur in gold mines? If so, would it therefore not be best to focus that attention to gold mines?

Dr Sibisi agreed that the Committee was correct in pointing out that it is gold mines and not platinum mines that are a problem in terms of mines collapsing. There is a discrepancy between safety in mining the different commodities. CSIR research considers in what manner they are able to predict the better options and delineate the ore body for better planning. Gold mines are deeper than platinum mines however there is a trend towards the platinum mines going deeper and their research is aimed at assisting them as the cost of ore extraction is significantly higher than in gold mining.

• Can satellite images be used to identify areas where infrastructure is required? For example where are people starting to live in order to provide services? Whether housing construction will be located close to work areas?

Dr Sibisi said that the location of low cost housing were dependent on a number of factors. What would be the most cost effective for the people who live in those areas? Will it be close to the city or further away? There appears to be no simple answer but depends on a number of factors. CSIR is trying to find the best solution. There is a problem in interpreting satellite images to ascertain which areas would require services.

• Will improved materials used for roads minimise or solve the problem of sinkholes?

Dr Sibisi said that the purpose of materials research is that correct selection of materials will reduce the incidents of sinkholes.

• What informed the choice of themes for the Research and Innovation Conference? Did it have anything to do with the national imperatives or request by government departments or funding?

Dr Walwyn said that each proposal or theme was evaluated within a framework and the key objectives were (1) whether it was aligned with the National R&D Strategy and (2) to illicit multi-disciplinary proposals.

• The present human resource I Human Capital Development (HCD) strategy seems to be more rigorous than in the past. Whether they have any mechanism to monitor their targets? Also such targets have not been outlined in their presentation, which is fundamental as how would they be able to ascertain whether their targets have been met?

Dr Sibisi responded that the implementation of the HCD Strategy is that it has been elevated to a Group Executive level. Targets set in the HCD strategy will be monitored on a quarterly basis by the Group Executive.

• Satisfied with their developments in nano-technology Le. materialise the concepts into practice such as medical applications, however have they thought of extending that research to astronomy, environment and other areas of social interest?

Dr Sibisi said that CSIR are working in five separate areas relating to nano technology. Some of these are in advance materials that have application in textiles and carbon nano-tubes, which have application in heat transfer and possibly replace carbon fibers.

• In light of the mandate of CSIR, the incidents at Koeberg and the fuels industry, should they not be involved in that research that would prevent these incidents?

Dr Sibisi emphasized that CSIR does research in the energy sector, however they do not believe it is the role of CSIR nor to expose ESKOMS lack of planning. CSIR would focus on new ways of energy production. Energy research has been waiting for the formation of National Energy Research Institute (NERI) and once that happens, incidents such as Koeberg could be avoided.

NATIONAL RESEARCH FOUNDATION (NRF):

Dr K Mokhele, Chief Executive Officer of NRF, addressed the Committee on their corporate strategy for 2006 /2007 and highlighted the following: NRF as a science council, Mandate and Strategic Approach, South African Association of Science and Technology Advancement (SMSTA), Research and Innovation Support and Advancement (RISA) and National Research Facilities.

Issues and / or comments raised by the Committee and Responses / Undertakings from NRF:

• When they draw up plans do they take into account the need to transform the second economy and how would the NRF define sustainable livelihoods?

Dr Mokhele responded that they do take into account the transformation of the second economy and sustainable livelihoods. The mandate of NRF is support and promotion of research. When restructuring the NRF, they looked at the problems dealt with as a nation and how research could generate answers to those problems. That is how they structure their projects. One of the problems that they identified is sustainable livelihoods. Received a plethora of research proposals to address the problem on sustainable livelihoods. Referred Members to the Register of Grants, which would answer all Members queries. Sustainable livelihood means the use of sustainability definition of the millennium development goals. Which means creating wealth but also preserving the environment.

• With regard to RISA, did not see specific targets. Do they target schools and how would schools access the programmes that they offer? Do they address the issue of mathematics in schools?

Dr Mokhele emphasised that the key obstacles to obtaining PhD's should be removed within the higher education sector. The other obstacle is that they moved away from the entire infrastructure and expertise base. NRF is working in partnership with the CSIR, they are already responding to these obstacles and both have put funding into it, in order to attain the target of 200 Masters and PhD's students by the end of 2006. The problem is trying to bridge gaps between the higher education sector and the private sector.

For example, Finland was not satisfied with their future development of the economy. They were also not happy with the nature of the conversations that were taking place between the private sector and the higher education sector. Private sector would fund higher education but dictate what it was they wanted the universities to do. But universities also had their own initiatives. In order to change that the Finland government decided to fund higher education optimally. That initiative changed the discussions that were taking place between universities and private sector.

It is therefore imperative that discussions between private sector, higher education and science councils need to change. Proposed that the Committee should discuss with other Portfolio Committees on the kinds of consultation that should take place, Le. who should be consulting with whom and what issues should be discussed.

Mathematics at school is a major issue. That is why they, link public outreach directly to the PhD production. Schools access their programmes through Provincial Departments of Education.

In drawing up the business plan decided to not include the specific targets. As SAAST A is under new management who wants to put in place new science indicators. The indicators used in the past did not illustrate whether there was an impact. They are working together to create new targets. Therefore they don't want an indicator that would say the number of students that attended but what impact they had on those students.

• During the Committee's oversight visit they ascertained that RISA and Ithemba Labs had a high turnover of staff. Asked Dr Mokhele to expand on the problems that they have been experiencing, whether the situation has stabilised and what they are doing to address this problem? Committee expressed concern with regard to some of the research projects and their relevance to the national priorities of the country. Wanted to know how it all relates to poverty situation in the country as they are making claims to the public office.

Dr Mokhele responded that they do have staff turnover challenges at RISA and iTHEMBA Labs. Black staff In RISA is very mobile, while white staff stays. One of the challenges is that salaries are marketed against universities. 95% of their Black staff leave to work in government. They cannot compete with the salaries offered by government. iTHEMBA Labs also had a major transformation problem. For example South African Large Telescope (SALT), had researchers at South African Astronomical Observatory (SAAO) that refused to research on ten-meter astronomy. Therefore the researchers who refused had to leave and make those salaries available for other researchers.

When the NRF took over iTHEMBA Labs from Wits University it was in a bad state. The funding facility had collapsed about three years ago. Wits continued to enroll students without having the opportunity to collect data from that facility. When the NRF received data they discovered that there were students doing a seven-year masters degree. That was the problem they acquired from Wits University. The NRF is determined to transform iTHEMBA Labs. To address these issues they have set up a Management Committee to deal with staff problems.

Dr O Shisana, Chief Executive Officer, Human Sciences Research Council (HSRC) briefed the Committee on their corporate strategy for 2006/ 2007 and highlighted certain issues: The challenges the organisation faced pertaining to finance, capacity and infrastructure. The HSRC received more grants externally, especially from international donors, than from the parliamentary grants. Government funding at this point was inadequate. Its infrastructure was inadequate as it was housed in an old building and they had to use obsolete computers. Dr Shisana also briefed the Committee on its achievements and transformation.

• As DST has given funding for the Research Chairs Initiative, would that improve the relations with Higher Education Institutions to work together and not duplicate the research programmes.

Dr Shisana said they were pleased that DST will be funding the Research Chairs Initiatives at the universities, however were concerned that some of those Chairs may not be social scientist. Would like one of the Chairs to be a social scientist and in that way the HSRC can interact with universities.

• In the area of service delivery, what impact does their research have on municipalities and do they engage municipalities in terms of their research.

Dr Shisana said that the work they do have an impact on government and service delivery, however there are areas that they feel they are not packaging correctly for policy makers to recognize and utilize. The development of research material to policy is difficult, as it has to take into-account all stakeholders. Community based Public Works Programme (PWP) is interesting, as government has shifted to the idea of Expanded Public Works Programme (EPWP). This is good as government had problems in implementing PWP, as its core strength was implementing routine big expenditure items. EPWP shifted emphasis for expanded expenditure to offer contracts if they were labour intensive.

• Extent to which their research projects have an impact on poverty alleviation and whether they are in partnerships with other parties on this issue? If so could forward such a list of parties with whom they involved in on poverty alleviation projects?

Dr Shisana responded that poverty reduction is at the center of their research. Most of their research revolved around job creation, food security, etc. It was important to have direct linkages with the affected communities to conceptualise, formulate and design a research project with them. That way they could identify the key issues that needs to be addressed. The issue of livelihoods, food security and strategies for sustainability in townships and some peripheral areas is key and would if requested, forward projects that have had small but significant impact on the community. It also noted that the problem of the survival of small businesses that South Africa is facing due to its history and the pattern of economic development is an ongoing one. Although one would like to see more micro finance and stronger small business policy, the fundamental structure of the economy makes it very difficult for small businesses to enter the economy.

• Do they have an audit of projects that are successful and those that are not successful?

On the issue of audit of projects, Dr Shisana was not sure if they had a response except to say that it became clear when the HSRC was commissioned together with other organisations to do governments ten year review programme. They realised that government departments were in a bad state with respect to measuring their performance, impact and the development of their indicators. The aforementioned items were linked. They have been forced through the medium of Statistics South Africa to standardize the benchmark of their indicators in order to measure the extent to which poverty alleviation is happening in a sustainable way. For example the Expanded Public Works Programme, who knows how well it's working and whether jobs have been created. An audit was done by Treasury but will try to provide the Committee with a copy of the audit report.

• The Committee asked whether the HSRC have looked how the Chinese have reduced unemployment? They changed unemployment from 600 million to 200 million in five years.

Correct to point out that the Chinese have decreased poverty but they are now grappling with unemployment. The number that the Committee referred to was the drop in poverty and not unemployment. The Chinese have privatised their state institutions and now have the transition problem of unemployment. Does not have an answer for the Committee but are looking - at a series of international case studies of which is China. These case studies will be available soon and it will look at high growth economies, what their income distribution was, where it is now and where their employment came from.

COUNCIL FOR GEOSCIENCES (CSG):

Mr Ramontja, Chief Executive Officer of Council Geosciences addressed the Committee on their Corporate Strategy for 2006/2007. Mr Ramonlja said that the CGS was mandated to undertake systematic mapping, research on the nature and origin of rocks, to render geosciences knowledge and services to the State, to manage the national geosciences facilities, and to render commercial geosciences services to national and international organisations. Its seven main focus areas were geosciences mapping, mineral resources, engineering geosciences, water research, environmental geoscience and education and information. Human resources were critical and much emphasis and funding was placed on training and staff retention.

Issues and / or comments raised by the Committee and Responses / Undertakings from CGS:

• The Committee wanted to know whether assisting municipalities fall within their mandate. For example, if a municipality wanted assistance with a survey of potential mining in a particular area. Do they receive request from municipalities for such undertakings.

Mr Ramontja said that they do work closely with other government departments. such as municipalities but it is on a cost recovery basis. They are working with a municipality in Mpumalanga on investigating coal resources. But would like to enhance that relationship and proposed that if the Committee interacts with other government institutions should let them know of the expertise of CGS.

• It appears that they have problems with stability in their long and short-term sustainability. Do they have problems with stability. if so what are they?

Mr Ramontja said that they do emphasis the issue of stability in CGS. They need to ensure that skills remain in the organisation. as they need to transfer skills to new employees. It takes approximately 5 years to train a new scientist.

• It appears that mapping is used principally for mining resources; however, can their maps be used to assess agricultural potential? Also. mapping takes place in developed areas. would it not make a contribution to transforming the second economy if they mapped poor rural areas in order to identify small mining potential? Mentioned that their airborne surveys were done by aircrafts but do they use satellites as well?

Mr Ramontja said that they select areas for mapping on the criteria of which areas have resources. It will be an area that they are most likely to make an impact with the resources that they discover. With regard to satellite services, they do have a remote sensing unit that is dedicated to using satellites to assist them in mapping. Information can be used for agriculture; however have not focused on it. They do feel that it is an area that they should look into.

• CGS mentioned that they are investing in their human resource development, what return do they have on that investment. In terms of their equity plan, wanted to know where they have allocated staff. Although 50% of the staff may be women it could be that they are all field workers.

Mr Ramontja said that they have a serious problem with staff retention due to the boom in the mining industry. Recently lost one of their top scientists. These are scientist with rare skills and are currently looking at bringing scientist from Germany in order to train their young staff.

GODISA TRUST

Mr Wyeth, Chief Executive Officer of Godisa Trust addressed the Committee on their corporate strategy for 2006 I 2007 and highlighted the following: GODISA Trust was established as a programme within the Department of Science and Technology in 2000 but would, from 1 April 2006 be incorporated within the Small Enterprise Development Agency (SEDA), reporting to the Department of Trade and Industry. The Godisa Trust was set up to improve performance and productivity in small enterprises, to enhance technological innovation, increase access to technology, reduce enterprise failure rates and encourage competitiveness.

Issues and / or comments raised by the Committee and Responses / Undertakings from Godisa Trust:

• What would they require if a person wanted to start a new business?

Mr Wyeth responded that any entrepreneur that approaches their Centres must have a developed idea of what they want to do. Clients would be given a list of questions to think about. They do not want to do all the work for the client and therefore ask questions that would guide them in the right way.

• How are they linked to rural communities and to what extent, as it appears that most projects that make an impact are in developed communities and not in the poorer communities.

Mr Wyeth said that they have received criticism from their board that the bulk of their Centres are located in the three wealthy provinces. Are working towards geographic equity and if new centres are created it will have to be in one of the poorer provinces.

• Committee was happy to hear that Godisa assisted in creating millionaires but what have they done to create employment and to sustain small businesses?

Mr Wyeth responded that they help the poorer communities by supporting the businesses in rural as well as in urban areas. Labour and input in many instance comes from poor communities. They now have a focus on supporting black owned businesses and this has strengthened their involvement in poorer areas. Although they don't have projects that specifically deal with poor communities they do reach them in supporting businesses and entrepreneurs.

• With regard to essential oils, there is a project in Giyane, Limpopo that is successful. CSIR has been very much involved. There was talk of this project being replicated in other provinces. Whether it was one of the success stories in agri-business. If so, are they working closely with DST to ensure that it becomes a success in those terms?

Mr Wyeth responded that the essential oils (the Giyani) project, was not included in their reporting as their Board only approved the essential oils incubator in the new financial year and it is now being established. The Giyani project evidences why an essential oils incubator is so important. The project has worked very well and had extensive support from CSIR and Agricultural Research Commission (ARC). There are a few other DST essential oils projects around the country and through their incubator they can leverage the lessons learned from these projects. They foresee it as a big area of growth for small businesses and job creation. They do work closely with DST and when their Board approved the section 21 company for the essential oils project it was a condition that both DST and Department of Trade and Industry (DTI) need to be directly involved.

ACADEMY OF SCIENCES OF SOUTH AFRICA (ASSAf):

Professor W Gevers, Executive Officer of ASSAf highlighted the following in his presentation: ASSAf had been very active on the continent in establishing science academies. It was working together with the Department of Science and Technology (DST), the National Research Foundation (NRF) and other bodies, in applying science to solve problems linked to poverty.

Issues and / or comments raised by the Committee and Responses / Undertakings from Godisa Trust:

• The Committee commented that ASSAf were an exclusive science entity as they deal with issues of an academic and knowledge production nature and are not directly involved with the issues of national priorities. However, there focus was important as a nation cannot be successful without a firm technological base and therefore their contribution is important.

• Said that they have monthly meetings I lectures, asked that Prof Gevers elaborate on what the content of those meetings?

Professor Gevers said that with regard to the monthly lectures, the Minister for Science and Technology was insistent that they should interact at a grassroots level. Made enormous efforts in considering how they were going to go about it. One way of doing it was to have regional offices in the main population centres where they could have lectures and where organizations could become associate members of the Academy. They are however still exploring that route. The lectures are advertised at the different training colleges and universities. At the moment don't advertise at school's but any learner would be welcome to attend. The aim of the monthly lectures is to bring science closer to the people.

• As they receive a huge grant from the United Sates of America, the Committee asked whether there are conditions attached to those grants?

Professor Gevers said that the US grant, the Gates Foundation (grant received from the United Nations) has funded massive interventions in public health and one of the conclusions that it came to was governments were not receiving the best advice on vaccinations and other health interventions. As a result of their efforts as NASAC, working with US National Academies, which a grant was made by the Gates Foundation to the US National Academies. US National Academies are therefore the agents of a grant and the agenda is entirely open. Throughout Africa it is known by governments that the funding is an attempt to increases the capacity autonomously of science councils. There is no dictation of their agenda.

• Noticed that a lot of money is spent on the journal, wanted to know what the readership of the journal is and does the readership of the journal justify such a huge expense?

Professor Gevers emphasized that the South African Science Journal is recognized in terms of the ISI ratings and is one of the important rated journals of the country. Its readership is therefore both local and international. The money is therefore well spent. Its multi-disciplinary in that some articles are of a general nature and would be applicable to a wider audience. The Journal is available to its Members but they pay a membership fee and it was freely accessible only six months after publication to subscribers and members.

• What is it that their Committee on poverty alleviation is doing? Has it commenced working and if so, has it coordinated with a numerous of projects of the DST and its Entities?

Professor Gevers responded that the Committee on Poverty Alleviation is in its early stages and looks at a variety of topics such as sanitation, rural agriculture and health, urban planning, etc. Essentially the council does not have the necessary expertise and experience and therefore asked its Membership as whole to volunteer on this Committee in order to identify and consult with other agencies such as DST and HSRC. For example, one of their Members Dr D Ngqayiyana who is Dr Shisana's main consultant on research relating to poverty alleviation. In that way they are not duplicating-the work and adding value to the research that is being done.

Mr E Makqopa, Operations Manager of Tshumisano Trust, briefed the Committee on their corporate strategy and highlighted the following: Its corporate strategy included plans to expand to under-serviced provinces and send students to be trained in scarce skills in other countries. Tshumisano, and the latter in turn funded Small, Medium and Micro Enterprises (SMMEs) in the provinces.

• With regard to the Programme of sending students abroad to obtain skills, how long is it destined for and is it line with governments intentions to grow the economy by 6% by 2014? Also do they have any projects on poverty alleviation.

Mr Makqopa responded that students sent to India were graduates and therefore they were sent to India in order to specialise in a particular field. The Programme is ongoing. With regard to poverty alleviation, they are of the opinion that the development of SMME's is part of the development of the growth of the economy. Ensuring that more people are employed and have the requisite skills contributes to poverty alleviation.

• Mentioned that universities and technicons are benefiting from dealing with Thumisano but have not mentioned anything about schools. What are their linking's with schools?

Mr Makqopa said that their original mandate of the Trust was to look at how they can improve the competitiveness of established Small Micro Medium Enterprises (SMME) and skills development. They agree that they should promote themselves among learners in order that they know what they are doing. Are looking at encouraging learners at high schools to consider tool making as a career. At present the average age of a toolmaker is 50 years and predominantly white male. Therefore need a new generation of toolmakers. It is a competitive market and would make an impact. At present had 12 learners who did not know anything about tooling but now they are receiving training from the Dept of Labour and Shosanguve Campus.

• In terms of skills development what areas do they target and what motivates them to target those areas?

Mr Makqoba responded that in terms of their original mandate they were to establish technology stations in provinces. Specifically in the Western Cape where there is a strong yet troubled clothing and textile sector. It therefore- - made sense to set up a technology station in clothing and textile. In Pretoria there is strong automotive component industry. At present "they have the Institute for Advance Tooling in Shosanguve. The purpose of which is to for the toolmakers to serve the Ros;:llind area. They therefore look at the industries that would benefit from government initiatives.

Prof T Marwala, a Member of the NACI Council briefed the Committee and highlighted the following in his presentation: The statutory mandate of the Council and its contribution to economic development. NACI had to advise the Minister of Science and Technology on scientific innovation and had to strive to improve science and technology activities in South Africa. Research had to gravitate around national government policy. The Council intended to promote public awareness of science and technology.

• What advice they have given to the Minister about transforming the second economy and increase its linkage with the first economy? Has the gap between the first and second economy been defined or identified in order that the government can work together to close it?

Professor Marwala said that it was difficult to identify an undisputed definition of the second economy. A multitude of indicators existed such as life expectancy and education levels. In his view the gap between the first and second economy can only be closed if individuals within the second economy are educated on science and technology. With to regard to the advice given to the Minister. Two recent examples are: The first was where they developed an advance manufacturing and logistics technology strategy, which was subsequently adopted by Cabinet and is being implemented by DST and CSIR. Once NACI forwards advice it is out of their hands although they do follow it. Secondly, they made recommendations to the Minister about skills acquisition and these recommendations appeared in the Joint Initiative for Priority Skills Acquisition (JIPSA) document.

• What have they specifically advised or suggested to the Minister to do to increase the awareness of science and whether NACI had foreseen the electricity crises and have they advised the Minister on it?

Professor Marwala said that they have not advised the Minister on Public Understanding of Science, Engineering and Technology (PUSET) and did not undertake a foresight exercise on electricity. Although they conceded that they should have done that and will have an item on their agenda for their next Council meeting. They will especially focus on the lessons that can be learnt from the power outages.

• Concerned as it has been s struggle to have the investment in R&D increased to 1'%, however South Africa is still lagging behind in terms-of-international standards. What are they doing to advise government that they have to invest beyond the 1 %.

Professor Marwala agrees with research prioritisation and should not let short term gains compromise our long-term goals.

Dr P Jordaan. Chief Executive Officer of MINTEK, addressed the Committee and highlighted the following: History of mining in South Africa. Qualification of audit. Research and Development (R&D) in South Africa.

• It appears that they lack financial capacity. If that is so what are they doing about it?

Dr Jordaan responded that they had lost their Chief Financial Officer (CFO) and therefore there is a lack of financial capacity.

• Are there potential for small-scale mining to create wealth and thereby alleviate poverty?

Dr Jordaan said that small-scale mining does have the potential to create wealth and have an impact on the second economy. However. government needs to come in as a shareholder as foreign companies purchase these mines and wealth is lost to them. It is therefore important that government regulates this area. It would also aid in transforming the mining industry.

• Requested a copy of audit report that is done every six months.

Dr Jordaan undertook to forward copy of report regarding audit.