Report of the Portfolio Committee on Science and
Technology on Budget Vote 34: Science and Technology, and the Strategic Plan
for the Fiscal Years 2011-2016, dated 20 April 2011:
The Portfolio Committee on Science and Technology,
having considered and concluded its deliberations on Budget Vote 34: Science
and Technology, and the Strategic Plan for the Fiscal Years 2011 – 2016, reports
as follows:
1. Introduction
On 13 April 2011, the Committee was briefed on the
strategic plan and budget by the Department of Science and Technology’s
Director-General, Dr Phil Mjwara.
The presentation by the Department of Science and
Technology (DST) included a focus on their strategic context and goals, building
a National System of Innovation with a further focus on key priorities and
recent outputs, current strategic challenges, monitoring and evaluation, gross
expenditure on research and development and the financial resources of the
Department.
2. Strategic Context
The Corporate Strategy is guided mainly by the White
Paper on Science and Technology, the Ten-Year Innovation Plan, the National
Research and Development Strategy and the Government’s Medium-Term Strategic Priorities.
3. Strategic Goals
One of DST’s main aims is to develop the innovation
capacity to further contribute to socio-economic development. The National
System of Innovation (NSI) is currently being reviewed to enhance the country’s
innovation capacity. The idea is to build a world-class science and technology infrastructure
(STI) to extend the frontiers of knowledge, train the next generation of
researchers and enable technology development and transfer, thereby positioning
South Africa as a strategic international research development and innovation
(RDI) partner and making the exchange of knowledge, capacity and resources
between South Africa and its regional and international partners possible.
4. Key STI Policy
Developments
4.1 National System
of Innovation
The overall aim of the DST is to develop a National
System of Innovation (NSI), as envisioned in the 1996 White Paper on Science
and Technology. Ideally, the NSI should be a set of functioning institutions, organisations
and policies, which interact constructively in the pursuit of a common set of
social and economic goals and objectives. Industry and government play a fundamental
role in working towards this ideal co-ordination of activities within
institutions.
4.1.1 Institution
building and instruments to facilitate innovation
Key STI policy developments led to the establishment
of the Technology Development Agency, which focuses on promoting commercialisation
and technology transfer by and at South African research institutions. A new
institutional intervention, the National Intellectual Property Management
Office (NIPMO), is in the process of being established. Its function is two-fold:
on the one hand, it is putting a mechanism in place to enable government to
encourage, monitor and quantify intellectual property that is the result of
publicly funded research and development; on the other, it is developing
capacity at the level of universities and public research institutions to
identify, protect and where appropriate commercialise such intellectual
property. Close partnerships are
nurtured with relevant national and provincial departments to support the
success of high-potential research and development-led industrial development
initiatives.
Other structural interventions focusing on research
and development are the Centres of Excellence (CoE) programme and the South
African Research Chairs Initiative (SARChi). Some of the Centres of Competence
(CoC) and Partnerships foci are in the areas of fluoro-chemicals, titanium
metal powder industry development, unmanned aerial systems, nanotechnology in
minerals beneficiation and hydrogen and fuel cell technology.
4.2 Human Capital
Development
Significant investment is required in both human
resources and research infrastructure at universities to improve the quality of
learning and teaching, and to support the development of research capacities at
universities. The National Research
Foundation (NRF) internship programme support increased from 216 interns in
2008 to 365 interns in 2010. South African Research Chairs increased from 82 in
the previous year to 92 chairs in 2010. Eight CoEs are already in place. The
percentage of students supported expressed as a percentage of total possible
students to be funded through existing instruments is still low. The existing
instruments are not yet providing sufficient numbers of emerging and young
researchers.
4.3 International
and Continental Linkages
DST has actively and strategically established close
STI co-operation with several international and African countries. The recent
achievements include:
·
Winning the bid to
host the new regional New Partnership for
·
DST leveraged R868
million through official donor assistance;
·
·
Dr Shisana of the Human
Sciences Research Council (HSRC) was elected as President of the International
Social Science Council.
5. Current
Strategic Challenges
The increase in gross investment in research and
development (R&D) still poses a challenge. The amount still falls short of
attaining the target of 1 per cent of gross domestic product (GDP). Other
challenges are around the increase in knowledge generation capacity,
intensifying the development of innovation capacity and better governance and
co-ordination of the system.
6. Medium-term priorities
and initiatives
An overview of the medium-term priorities,
deliverables and medium-term initiatives made reference to:
·
The development of
the bio-economy, nanotechnology, the hydrogen economy, space science, information
and communication technology (ICT) and advanced manufacturing;
·
Up-scaling some
pilot projects with appropriate partners on a range of technologies to address
poverty and improve quality of life;
·
Development of an
innovative and diverse flux of young people seeking and finding careers in
science and engineering;
·
Finalising the human
capacity development (HCD) strategy for research, development and innovation;
·
Strengthening of
structural interventions and establishment of focused, high-level, cutting-edge
research and development platforms e.g. CoEs and post-doctoral fellowships;
·
Consolidating new
institutions such as the Technology Innovation Agency (TIA), NIPMO and South
African National Space Agency (SANSA);
·
An investment and
growth strategy for the provision of scientific equipment to support research
and innovation within the National System of Innovation;
·
Developing and strengthening
of international and African linkages in support of HCD, research and
development and infrastructure;
·
Establishing and
enhancing partnerships with the private sector to increase the Gross Expenditure
of Research and Development (GERD);
·
Reviewing the
Strategic Management Model and strengthening co-ordination and governance; and
·
Enhancing macro
policy planning, monitoring and evaluation capacity.
7. Monitoring and
evaluation
The DST has a monitoring and evaluation system by
which performance information from the DST programmes and public entities are
reported. Reports are compiled quarterly and on an annual basis. Work is underway to develop capacity to
assess the outcomes and impact of interventions in science and technology. Monitoring
and evaluation will be informed by the Presidency’s Outcomes framework,
published in January 2010.
8. Gross
Expenditure on Research and Development
GERD, as reflected in the 2008/9 Research and Development
(R&D) survey, showed spending on R&D amounted to R21 billion, that is
0.92 per cent of GDP. The proportion of spending decreased from 0.93 per cent (2007/8)
to 0.92 per cent (2008/9). Private sector spending on R&D contributed 58.6
per cent to total expenditure on R&D.
9. Medium-term Expenditure
Estimates
The estimated expenditure for the 2011/12 financial
year amounted to R4.4 billion, increasing to R4.8 billion in 2012/13 and further
increasing to R5.5 billion in 2013/14. Transfers to public entities form 92.1
per cent of the allocated funds with the remainder of the allocation being
spent on goods and services, compensation of employees and payments for capital
assets. Programmes allocations are as
follows: Research, Development and Innovation is allocated 29 per cent of the
budget, Human Capital and Knowledge Systems is allocated 45 per cent,
Socio-Economic Partnerships receives 19 per cent and International Co-operation
and Resources amounts to 3 per cent. The historical spending trends (2005-2010)
of the Department reflect that over the years the Department spent its allocated
budget.
10.
Summary of the Committee Discussion following
the Presentation by the DST
The
Committee deliberated on the following key points:
·
Members highlighted the time constraints under which the Committee
operated to deliberate on the budgets of the Department and its entities.
·
The Committee invited the Council for Scientific and Industrial Research
(CSIR) and the HSRC to submit written additions to their inputs in the event that
they felt not all their points were covered.
·
The allocated amount over the Medium-Term Expenditure Framework (MTEF)
period for 2011 to 2013 seemed to have decreased. Members wanted to know
whether this was the case.
·
The review of the design of the MeerKAT caused a delay in the rolling-out
of this programme. The DST had unspent funds as a result of this, but an
arrangement had been reached with the National Treasury on how the unspent
money will be reallocated.
·
Members noted that the Department’s plan did not indicate the status of
the Science and Technology Amendment Bill. It was explained that the Bill had
been certified by the State Law Adviser, was approved by the Cabinet and is ready
to be introduced in Parliament.
·
Members enquired about the funding allocation for the National Advisory
Council on Innovation (NACI), which seemed not to be reflected in the
allocation to entities.
The NACI was located within Programme 1. Because there are no
sub-programmes in Programme 1, it is difficult to trace this allocation.
·
Members enquired about the status of the Antarctic Programme and whether
the entire programme was now located within the National Research Foundation
(NRF). The DST indicated that the responsibility for the Antarctic Programme is
located within two departments. The Department of Environmental Affairs was
responsible for all logistical aspects, whereas the NRF was responsible for the
science aspects. There is a proposal to have this programme located under one
body.
·
Members noted that the programme on the Research Chairs Initiative was not
meeting its targets and requested an explanation for that. The Department explained
the reason for appointing the Research Chairs in facilitating the efficiency and
effectiveness of delivery, which is targeted at government’s key priority
areas. It is expected that the Minister for Science and Technology will make an
announcement on the way forward in the near future.
·
Members wanted to know what efforts were in place to boost the production
of PhD studies; if it was a question of money, how much was required to ensure
the increase. The Human Capital Development Strategy was being reviewed and one
of the things identified was to look realistically at the numbers of doctoral
students who could be funded.
·
Members enquired about the status with regard to the biotechnology
strategy, as there was no mention of this in the DST strategic plan. The biotechnology
strategy was in the process of being finalised and once finalised the Department
will brief the Committee on the strategy.
·
Members enquired about the increased amount of R27 million for salaries. The
creation of the SANSA Board and the TIA necessitated the strengthening of
monitoring, evaluation and planning within the Department for these entities.
This further meant that capacity needed to be expanded.
·
Members required a breakdown in terms of the representation of the
students referred to in the Titanium Centre of Competence project. The Department
undertook to provide this information to the Committee.
·
Referring to the roll-out of rural broadband connectivity and
establishing the abalone hatcheries, Members inquired which criteria were used
to identify provinces and areas for this. The projects referred to were pilot
projects and the areas were chosen purely on the basis of suitability.
·
Further comments related to the CSIR’s involvement in climate change
issues and the International Astronautical Congress and work done in relation
to energy.
·
The Chairperson referred to the Money Bills Amendment Procedure and
Related Matters Act and advised the Department and entities that projects which
lacked funding should be brought to the attention of the Committee. This Act
enables the Committee to make recommendations with regard to financial
allocations. This was raised in light of the HSRC’s appeal for additional funding
for infrastructure.
11. Conclusions
1.
The Committee would
have liked more time for the deliberation process during this phase of the
Appropriation Bill 2011-2012 within the MTEF. However, the local government
election commitments constrained the time available. In future, the Committee
will embark on the Budgetary Review and Recommendation Report processes in much
more detail in order to effectively track the implementation of service
delivery and performance targets.
2.
In light of the
above, the Committee further undertakes to regularly monitor progress of the
Department and its entities, especially in relation to a key priority
highlighted in the 2011 State of the Nation Address of enhancing innovation in
science and technology to create jobs.
3.
The Committee appreciates
that further detail on the way forward with regard to the Research Chairs
Initiative will be unveiled by the Minister of Science and Technology.
4.
The Committee noted
and congratulated Dr Olive Shisana of the HSRC who has recently been elected
President of the International Social Science Council.
5.
The Committee notes
the important role that agencies such as the Technology Innovation Agency,
National Space Agency and the National Intellectual Property Management Office
have to play in facilitating the development of cutting-edge science and
technology capabilities in the country. The Committee is therefore keen to
monitor their operations and will make provision in its programme for detailed
engagements with these entities.
6.
The Department
would be expected to brief the Committee on the progress and outcome of the
review of the strategies such as the NSTI, HCD and bio-economy.
7.
The Department will
be required to provide more detailed presentations on the role of science and
technology in energy security, the development of alternative energy-generation
technology and energy as one of the Department’s grand challenges.
8.
The Committee notes
that intergovernmental collaborative partnerships are instrumental in ensuring
the success of the National System of Innovation. Enhanced co-ordination is
necessary even at parliamentary level amongst the various portfolio and select
committees in instances where science and technology issues are
transversal.
9.
The Committee is
satisfied with the development of the MeerKAT radio telescope as a prototype
for the Square Kilometre Array (SKA) and the completion of the seven dishes. The
Committee undertakes to secure continued support for the SKA project and will
actively monitor DST’s progress in its bidding mission to host the telescope.
10.
The Committee
recently visited the SKA project and is concerned about the intended ”fracking“
for gas in the
11.
The Committee noted
the explanation with regard to the reallocation of funds for the SKA project
(amounting to R508 million) across the 2011/12 and 2012/13 financial years.
12.
The Committee is satisfied
with the Department’s track-record of unqualified reports by the
Auditor-General.
13.
The Committee is
satisfied with the Department’s historical spending trend of actual expenditure
in relation to the amount voted for.
12. Recommendation
The Portfolio Committee on Science and Technology,
having considered and concluded its deliberations on Budget Vote 34: Science
and Technology, and the Strategic Plan for the Fiscal years 2011 – 2016, recommends
that Budget Vote 34, be approved by the House.
Report to be considered.
References:
Department of Science and Technology (2011) Strategic Plan for the Fiscal Years 2011-2016
Department of Science and Technology (2010) Annual Report 2009/10
Department of Science and Technology (2011) DST Strategic Plan, Presentation
to the Portfolio Committee on 13 April 2011
Portfolio
Committee on Science and Technology (2010) Report
of the Portfolio Committee on Science and Technology on Budget Vote 33: Science
and Technology, dated 14 April 2010.