|The Portfolio Committee having considered Budget Vote 13: Statistics South
Africa (Stats SA), reports as follows:
Credibility is a critical component of statistics because it informs
policy, development, effective implementation of targeted delivery, and
allocative efficiency. The Portfolio Committee on Finance was impressed with
the improvement in the credibility of statistics produced and the employment
and planned use of sound management resources and systems.
The
Statistician General (SG) in line with Parliament’s constitutional oversight
powers explained the relationship between the strategic plan together with the
medium term budget requirements and the allocation for the current fiscal
year. The Committee commended Stats SA
on a much-improved strategic plan, which showed great alignment with resource
allocation, the identified output and desired outcome. Notwithstanding the
Committee acknowledgement of improvement in Vote 13 it raised a number of
questions relating to the community survey, definition of poverty, the labour
force survey, and statistical master plan.
In its
deliberations of Stats SA’s allocated efficiency of resources and its linkage
to targeted strategic output, the quality of economic statistics, skills
shortages, communication, statistical master plan, and poverty statistics were
scrutinised during the oversight engagement by the Finance Committee.
The SG informed the Committee that
this survey is different from a general survey, as the sample would be drawn
from the business register. It is important to note the distinction between
commercial business aspects of agriculture and subsistence agriculture. The use
of postal surveys is more effective and cheaper.
The SG informed the Committee that the business
surveys are additional surveys that measure business characteristics such as
turnover, and it also try to address the gaps that existed due to inaccuracies
of past data collection processes. This will ultimately improve the coverage
and quality of the Gross Domestic Product (GDP). Quarterly surveys of the
business will be introduced during 2007/8.
The Committee enquired whether Stats SA has developed
a survey that would accurately quantify the levels, and different sectors that
have a shortage of skills.
Stats SA recognised the skills shortage within the
economy but has not yet developed a survey to quantify to what extent it
exists. In the area of statistical skills shortages do exist. Stats SA in
collaboration with universities have developed an education campaign that would
form the foundation of attracting school children to develop the necessary
skills required.
The Committee enquired how
Stats SA would improve communication, not only to its direct stakeholders, but
also to the community in general. The Committee further wanted to know if the
publication of statistical materials would be made more accessible to the
general public.
The Minister responded that one need
to be careful in determining to what extent Stats SA makes the information
available to non- users. A balance needs to be established as to ensure that
those who want and need the information have access, and also to make the
information generally available. The community generally is only interested in
basic information on the economy and society such as economic growth,
employment, inflation, population etc. The media is mainly the forum through
which statistical information on both national and local level is published.
The Committee enquired into the
importance of having the draft statistical master plan and how it would enhance
the National Statistics System.
Stats SA indicated that it is not
the only source of statistical information used by the various role-players in
the economy. The demand for accurate
statistical information has increased and statistics currently available are of
questionable quality, incoherent as they lack the common standards and are
produced by different agencies in an uncoordinated manner. The statistical
master plan provides for the coordination and prioritisation of statistical
data to overcome these coverage and quality constraints. Statistics would only
be classified as official if it has met the requirements set out by the South
African Statistical Quality Framework.
The Committee enquired whether the
definition of poverty has not yet been standardised and if any survey has been
done to quantify the level of poverty in the country.
Stats SA informed the Committee that
it is currently looking into the process of standardising the definition of
poverty. The need for an annual measure of poverty and inequality do
exist. A multidimensional concept of
poverty should be used and that this annual measure should provide a solid and
stable trend analysis to measure development initiatives for the reduction in
poverty in
Stats SA further indicated that the
information collected by it should provide us with the level of poverty, but
the credibility of the information with respect to the Income and Expenditure
Survey is questioned. This fragmented and contradictory data and its
interpretation lead to confusion and uncoordinated development efforts. Stats
SA has taken a decision to design, develop, and implement a poverty survey over
the medium term. It aims to provide reliable and comparable information to the
relevant stakeholders on a regular and timely basis. Once the concepts have
been defined, Stats SA would develop a questionnaire to collect data, with survey
methodologies and processes being tested in 2006/7. Stats SA aims to have a
full poverty survey by 2008.
The Committee
enquired whether there is alignment of targets in Government agencies for
achieving the MDG and the role of Stats SA in providing the necessary support
in this regard.
Stats SA
informed the Committee that it has the responsibility of providing official
statistics and is responsible for managing the rollout of the process, as well
as providing the secretariat for the MDG activities. Stats SA recognises that the
statistical requirements for the MDG are enormous and that current data
sources, especially in the African continent are questionable. The
Secretary-General of the United Nations also echoes this view. Internationally,
there is recognition about the statistical shortcomings in achieving the MDG
and that capacity building in the area of statistics is critical. Stats SA
together with
The Committee requested that Stats SA provide more details with respect
to the reengineering of the LFS.
Stats SA informed the
Committee that after an evaluation process into all aspects of LFS,
recommendations were made to address weaknesses in conceptual clarity,
questionnaire design, sample design, estimation procedures and the timeliness
of reporting. The main recommendations
are that the LFS should be done quarterly and data should be made available
four weeks after the last day of data collection. The Strategic Plan outlined
the timeframes for implementations of the LFS with the objective of launching
the quarterly LFS in August 2008.
3. Conclusion
3.1 Further activities planned by Committee:
3.1.1 The Committee requests that Stats SA brief the Committee,
within six months,
after adoption of the report, on
progress with respect to implementation of the
2006/7 strategic plans.
3.2 Recommendations:
Based on its
deliberations the Committee recommends that the House requests that Stats SA:
3.2.1 Ensures that information
generated by the community survey will provide
an effective data base and information
trends, particularly at a ward level.
3.2.2 Ensures an appropriate
operational definition of poverty that will promote
effective delivery.
3.2.3 Ensures that human resource
management is not allowed to shift back to
its former ineffectiveness.
3.2.4 Develops a strategic plan to
ensure that necessary skills are retained and
developed within the organisation.
Report to be considered.