SUBMISSION
TO THE PORTFOLIO COMMITTEE ON
BRIEFING
ON THE ADJUSTMENT APPROPRIATION BILL
VOTE
34 : WATER AFFAIRS AND FORESTRY
The
purpose of this memorandum is to provide the Portfolio Committee with reasons
for the adjustments made to the Main Appropriation and to highlight the impact
of these adjustments. Reference is made to the document Adjusted Estimates of
National Expenditure 2006, Vote 34 Water Affairs and Forestry (pages 209 to
213).
The
total increase to the Department’s budget as a result of the adjustments is
R183,758 million. This represents an overall increase
of 4.1% to the budget for 2006/07 as reflected in the table below. :
|
|
|
|
|
|
|
Programme |
Main Appropriation |
Additional Appropriation |
% Increase |
Adjusted Appropriation |
|
1. Administrtation |
436 708 |
72 962 |
16.7% |
509 670 |
|
2. Water Resources |
2 179 186 |
58 081 |
2.7% |
2 237 267 |
|
3. Water Services |
1 462 251 |
2 715 |
0.2% |
1 464 966 |
|
4. Forestry |
398 400 |
50 000 |
12.5% |
448 400 |
|
Total |
4 476 545 |
183 758 |
4.1% |
4 660 303 |
Details
of the adjustments can be summarised as follows:
Roll-overs R173,208
million
Ø National Treasury had
initially given approval on
Ø The Department made a request
for additional funds through the adjustment estimates in respect of
unforeseeable and unavoidable expenditure of R50,0
million for the operational costs for the commercial plantations in the Lowveld. National Treasury has elected this year to handle
this as a “roll-over” rather than unforeseeable and unavoidable expenditure as
they have done in the past. This was possible as a result of the Department
having surrendered 4.5 % of the 2005/06 budget.
Ø The Roll-overs can be
summarised as follows:
|
Programme |
Description |
Amount |
|
1. Administration |
Personnel related costs linked to transfer of functions |
72 962 |
|
2. Water Resources |
Disaster management funds (drought relief and damaged structures Ø Construction of the Acornhoek pipeline R14,5 million; Ø Groundwater Resources
Information Programme (GRIP) EC and KZN R5,2 million Ø Development of
operating rules for dams R2.9 million Ø Contingencies e.g Van Wyksvlei Dam R2,0
million Ø Management and
monitoring of the drought programme R2.9 million |
26 600 |
|
|
Data management and information management equipment |
2 298 |
|
|
Construction of new gauging weirs |
3 048 |
|
|
Geophysical equipment to improve strike rate of drilling boreholes |
1 800 |
|
|
Establishment of Inkomati CMA |
3 500 |
|
|
Write off loans in respect of Impala WUA |
13 000 |
|
4 Forestry |
Management of commercial forestry in Lowveld |
50 000 |
|
Total |
|
173 208 |
Unforeseeable and unavoidable
expenditure R7,550 million
Ø This amount has been
provided for the flood disasters in the Eastern and
|
Region |
Description |
Amount |
|
|
Flood damage repairs to DWAF owned
water distribution infrastructure |
3 100 |
|
|
Repairs to flow gauging
infrastructure |
2 900 |
|
|
Flood damage repairs to DWAF owned
infrastructure (primarily flow gauging infrastructure) |
1 550 |
|
Total |
|
7 550 |
Virements
Ø The total virements per programme and economic classification amounts
to R50,057 million as part of “clearing the slate” to
ensure that the is no unauthorised expenditure during the 2006/07 financial
year. Details of the virements are shown in Table
34.2.
Ø Programme 1 : Total
adjustments R37,434 million
o
The Department made a contribution of R70 thousand (with
National Treasury approval) to SAMDI for the 10th Annual National
Trainers Conference.
o
An amount of R37,364 million
shifted from goods and services for the essential upgrading and replacement of
IT infrastructure.
Ø Programme 2 : Total
adjustments R12,576 million
o
Savings was declared on the Programme 2 (Water resources
Management) due to posts not filled and transferred to Programme 3 (Water
Services) for filling of critical posts
o
Savings of R12,572 million intended
for subsidies for resource-poor farmers. National Water Act requires that
regulations are in place befor subsidies are made.
Regulations will be in place by the end of the financial year. Provision has
been made in the 2007/08 financial year for subsidies
o
Savings will be utilised for the operation of the Orange-Senqu Commission R3,5 million and
the upgrading of IT infrastructure R9,256 million.
Ø Programme 3 : Total adjustment R2,867 million
o
R2,715 million for Compensation of employees to be used for
filling of critical posts
o
R152 thousand for the purchase of computers and software
Other Adjustments (shifting of funds
between votes) R3,00
million
Ø During the preparation of
the 2006/07 budget an amount of R17,0 million was transferred
to DPLG from the Department for the Working on Fire programme. Subsequent to
discussions between DWAF and DPLG it was established that R3,0
million had been incorrectly allocated. A amount of R3,0
million has been transferred from DPLG Vote 5 “Helicopter Services” to the
Department.
Expenditure Trends
The
current expenditure for the first seven months of 2006/07 is R2,090 billion or 45% of the adjusted appropriation of R4,66
billion. With 58% of time expired as at end of October (7 months) the Department
is approximately 1 month behind programme. The main factors contributing to
this lag are:
Ø There has been very little expenditure of
the R300 million set aside for the De Hoop Dam project due to the protracted
delays in finalising the Record of Decision by the Department of Environment
Affairs and Tourism. It is unlikely that there will be significant spending on
this project during the 2006/07 Financial Year. This represents 6.4% of the
budget.
Ø The expenditure for the Operations of Water
Services is still being partly spent on the Water Trading Account budget.
Expenditure in an amount of R62 million has to be transferred from the Trading
Account to the Exchequer account. This represents 1.3% of the budget.
Ø There has also been very little expenditure
of the R72,9 million allocated to cater for the “once off staff costs” related
to the transfer of staff to other institutions. Expenditure should improve once
the Framework Agreement with the Unions and the MOU with SALGA have been
signed. This represents 1.6% of the budget.
Notes
Prepared by:
Trevor
Balzer
Acting
Chief Financial Officer