REPORT TO THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING

18 January 2011

Background- process in brief DHET published a proposal in April 2010NSA did across the country consultations on the

proposal and advised the MinisterDHET further advised the Minister taking into

account the outcomes of the consultation processMinister applied his mind and weighed the

various options presented to himMade a decision and announced on the 9th

November 2010

Purpose of the landscape processLandscape process is not meant to

address performance of SETAs, although this may have impact due to efficiency gains

It is a process related to (re)certification of SETAs as per the SDA

The SETA recertification process is provided for in the Skills Development Act; and requires the Minister to re- establish the SETA’s every 5 years

Principles guiding the landscapeMinister has indicated that ‘SETAs are here to stay’

Landscape proposals respond to thisQuestion is in what form and doing what

Responds to performance related issuesIt is based on the application of the criteria

provided for in the Skills Development Act, 1998, Other broader considerations informed by the

imperative of creating a post-school system aimed at addressing the skills needs of our country, for both the youth and adult sectors of our population.

Principles guiding the landscapeEnsuring the broad coverage of skills development in

all key sectors of our economy, Ensuring that each SETA is located as close as

possible to its relevant economic sector. Introduced changes should not disrupt or have

minimal disruption (where absolutely necessary) the closeness of each SETA to its relevant economic sector.

Considerations were also informed by the New Growth Path recently adopted by government, as well as the imperatives of the Industrial Policy Action Plan 2 (IPAP 2) and other government priorities.

Financial viability of the SETA

New landscape18 SETA’s remain the same or have minimal sic

code transfers as follows;12 SETA’s are to be reestablished with no

change6 SETA’s are to be reestablished with sic code

transfers; 2 SETA’s are affected by insignificant change

based on receiving sub sectors from MAPPP; 3 SETAs are affected by significant changes;The PSETA is re-established for a year pending an

inter ministerial task team process that Ministers Nzimande and Baloyi have initiated to investigate the viability and operational model of the PSETA.

Rationale for PSETA approachPublic sector contribution to levy

SDA says they are exemptMakes provision for 1% of wage bill to be

budgeted for trainingSome departments and spheres of government

‘contributes’ to SETAs administration budget – not consistent

History of PSETA teaches the complexities associated with participation of the public sector in the SD

Proposals to address the PSETA Change legislation – public sector pays the levyIn effect it means channeling the 1% stipulated in

the SDA through to skills development processesAlso means all other agencies, whose 80% or

more of their income comes from voted funds will start paying the skills levy

Improve and enforce contribution of other departments to either a SETA relevant to their economic activity or PSETA

Remove PSETA from DPSA to operate alongside other SETAs

Clarify which skills sets in the public sector will be catered for by the PSETA vs. other SETAs

Addressing SETA performance - challenges The challenges are widely known, i.e. from

the following sources for e.g. Nedlac, Singizi, HSRC, departmental internal reports

Portfolio Committee reports and experiences based on engagement with SETAs

AG reportsIn future we also have to take advantage of

all the info from these sources to ensure that

Addressing SETA performanceSignificant changes are being made in the

SETAs to address performance, i.e.There are immediate and short term measures

that the Department can institute to address some of the challenges, as well as improve its oversight responsibilities

Other measures are medium to long term and some may require legislative changes

Ministerial Task Team The Minister has appointed a task team to advice on how to

improve the functioning and performance of SETAs. The team will amongst other things look at: refocusing SETA activities through the new National Skills

Development Strategy (NSDS) III, initiating a process to strengthen the SETA Sector Skills

Plans (SSPs) and aligning these to much tighter Service Level Agreements and reporting mechanisms;

Ensure we build the capacity of the QCTO to be the main accreditor of training providers so that SETAs concentrate on their role as facilitators of education and training in the workplace

Improve for the future the current model Constitution of SETAs as best practice guideline to improve accountability and performance of SETA boards and governance;

Improve cooperation between and among SETAs

Refocusing training  Through NSDS III

strengthening the relationship between public colleges and universities and the SETAs, as well as with employers.

achieve significant increases in qualifications and skills to support priorities and initiatives such as the New Growth Path, the Industrial Policy Action Plan, the Human Resource Development Strategy and, in particular, sector development plans

encourage and actively support the integration of workplace training with theoretical learning

Address the relevance, quality, cost and access to training facilitated in the SETAs.

Ensure that the training facilitated by SETAs leads to a qualification, move away from bias towards short courses and skills programmes

Addressing governance of SETAs Introducing independent chairpersons Limiting the number of Board meetings to a

reasonable number Reducing the size of Boards Participation of the Minister in the appointment

of Board members Having a standard remuneration rate for Board

and committee members Holding accountable Board members who do not

carry out their duties as required The Minister’s participation in the appointment of

SETA CEOs and other members of the Executive Committees of Councils, in line with similar practices in relation to public entities.

Improving capacity in the DHET Monitoring of SETAs and their functions To be informed by all of the above (and more). Should ensure that government through DHET

plays its oversight role Improving the performance management system

to encourage, foster and promote the continuous improvement of the SETAs

There is an expectation that, as a collective, the Department and the SETAs should deliver sector specific skills interventions that help achieve the goals of the NSDS III, address employer demand and deliver concrete results and make a decisive impact

Conclusion How do we in future collaborate with PC to

take advantage of the information they gather to assist the department and SETAs improve the performance