Design & Planning of EPWP Phase II

Transcription

1 Design & Planning of EPWP Phase II Briefing and Key Decisions 10 November 2008

2 EPWP 2 GOAL To create 4,5 million (short and ongoing) work opportunities for poor and unemployed people in South Africa so as to contribute to reducing unemployment by 2014, through the delivery of public and community services. (This will scale up from 500,000 per year in 2009/10 to 1.5 million in 2013/14) EPWP to enable government to act as an employer of last resort as part of the Anti-Poverty Strategy 2

3 Background to EPWP 2 EPWP 1 achieved its 1 million work opportunities targets a year ahead of schedule EPWP 2 to adjust and scale up to contribute significantly to halving unemployment by 2014 (as part of Government s Anti-Poverty Strategy) Cabinet approved the high level proposals for EPWP 2 in June 08 R 5 billion allocated over the MTEF to scale up the EPWP EPWP 2 business plan to be submitted to the January Cabinet Lekgotla EPWP 2 implementation to start on 1 April 2009

4 Medium term budget statement: Next year, government will initiate the second phase of the expanded public works programme. Drawing on the successes and lessons of this programme over the past five years, R4 billion is added to this programme to incentivise the creation of longer term, more stable employment in provinces, municipalities and non-governmental organisations. It is anticipated that this programme will be phased up to grow the number of full time equivalent jobs from about at present to over a year

5 Critical Success Factors for EPWP 2 Work creation must be the primary objective (Employer of last resort) Locate clear political and administrative accountability for targets for creating EPWP work opportunities across all spheres of government Align EPWP with the core mandates of all implementing public bodies Have fiscal mechanisms to accelerate scaling up of EPWP outputs across all spheres of government Mobilise non-state capacity to deliver additional EPWP work opportunities

6 Definitions Work opportunities (WO): Opportunity to work provided to targeted individuals measured by duration and level of income and regularity Full Time Equivalent employment (FTE): Measure of number of full years of employment (230 days of work per year) created through the work opportunities Impact on unemployment: the degree to which unemployment, as measured, is reduced as a result of the EPWP

7 Targets EPWP 1 and 2 Phase 1: Cumulative Achievements Annual WO Annual FTE million WO Phase 2: Cumulative Target Annual Target WO Annual Target FTE million WO 1.5 million

8 Key Components of EPWP 2 1. Targets and accountability across Government 2. Fiscal mechanisms & budgets a) Incentive for provinces and Municipalities for infrastructure b) National Departments (Environmental Sector) c) Social Sector 3. Non-State sector 4. Technical Support to spheres, sectors and implementing bodies 8

9 1. Targets and Accountability across all spheres of Government Overall Phase 2 targets will be distributed across all spheres of government and the five year period so that: Each public body has a clear target for each financial year It is clear which programmes/ activities of the public body are expected to contribute to the target The targets are adjusted annually over the MTEF in line with budget allocations and performance Respective political and administrative heads to be held accountable for achieving respective targets EPWP Unit to manage the setting, monitoring and feedback process for performance in relation to all targets 9

10 2. Fiscal Mechanisms and Budgets EPWP unit will: Lead the EPWP component of the annual MTEC which includes consolidating and endorsing budget requests across all spheres of government Monitoring and evaluating performance of specific EPWP budget allocations Management of Fiscal Incentive for Infrastructure Sector Management of Non-State Sector Allocations 10

11 2.1 EPWP incentive for provinces and municipalities MTEC made allocation for an incentive to provinces and municipalities to increase performance in the infrastructure sector Incentive targets based on the potential of the total infrastructure budget of each public body (with different formulas for civil and construction) The incentive is designed to influence the behaviour and performance of provinces and municipalities in three areas: Increased numbers of public bodies contribute to and report on EPWP Public bodies increase the labour intensity of their infrastructure portfolio Public bodies mobilise a larger share of their infrastructure budgets to contribute to the EPWP Provinces and municipalities that meet or exceed their annual targets are rewarded Targets are increased annually to ensure year on year growth of the EPWP work opportunities Public bodies that perform below minimum targets are not eligible for the incentive 11

12 Targets and indicative incentives per public bodies as published in the Division of Revenue Act Public Body Target (FTE) Year 1 Year 2 Year 3 Indicative incentive (R 000) Target (FTE) Indicative incentive (R 000) Target (FTE) Indicative incentive (R 000) A B C D Totals

13 Performance of public bodies-an example Public Body A: Is not reporting and not eligible for incentive Public Body B: Is eligible but will not receive the incentive as it is not meeting minimum performance level Public Body C: Exceeds minimum performance level but not meeting full target and receives a part of its incentive Public Body D: Is exceeding its full target, gets full incentive and possibly more is funds are available Phase 2 Target (500) Public Body D Performance 625 FTE s Minimum performance (100) 0 performance (no reporting) Public Body A Performance: 0 FTE s Public Body B Performance 80 FTE s Public Body C Performance: 250 FTE s

14 Performance of public bodies-an example Actual incentives paid out in year 1 Year 1 (Indicative) Year 1 (Actual) Public Body Target (FTE) Indicative incentive (R 000) Actual A B Actual incentive (R 000) C D Totals

15 2.2 Budgets, Mechanisms and Targets for National Departments (Environmental) Currently this applies primarily to Environmental sector programmes (DWAF & DEAT) Budgets for EPWP 2 to be allocated through the normal budgeting process, with the possibility of an amount ring-fenced for application to the EPWP over and above existing allocations Budget Allocations to National Departments to be linked to targets over the MTEF National Departments to be monitored against these targets Performance to be considered in future bids for additional budgets 15

16 2.3 Budgets and Targets for Social Sector Not possible to apply incentives to the social sector at this stage In the meantime: Provincial targets for EPWP outputs will be developed by applying a standard agreed formula taking into account key current programmes: Department of Social Development -ECD Department of Education -ECD Department of Health -Home Based Care Department of Social Development -Home Based Care Above targets consolidated into overall provincial EPWP targets In order to put in Social Sector EPWP incentives in place by July 2009, the following needs to be resolved: Basis for EPWP targets, incentives and alignment to be agreed The basis for explicit provincial budgets to the key social sector programmes EPWP Employment conditions for the sector 16

17 3. Non-State Sector EPWP targets are limited by the rate at which state programmes can expand their contribution to the EPWP Consequently there is a need to mobilise the capacity of the non-state sector Currently Community Works Programme of the Presidency is piloting an area based approach There is a need to also pilot an institution based approach to mobilising the non-state sector (eg existing NGO managed neighbourhood clean up programmes) 17

18 Non-State Sector Initiative A detailed proposal and business plan to pilot the non-state sector initiative over the financial year to be prepared and approved EPWP incentive applied by funding the wage costs (plus some administration costs) of additional EPWP work opportunities created by non-state organisations The Business Trust to act as the primary intermediary between DPW and the non-state sector Disbursements to be subject to participation agreements, detailed reporting and verification undertaken by the Business Trust Community work programme to be incorporated into the non-state initiative and expanded The institutional based approach to be initiated on a pilot basis 18

19 4. Technical Support to Implementing Public Bodies Increased technical support is critical to meeting expanded targets Technical support by the EPWP Unit to the spheres of government will include: Engagement to agree on targets Development of plans to meet targets Coordination processes to hold implementers within the sphere accountable Oversee progress and performance Technical Support by the EPWP Unit to the Sector lead departments to improve consistency and integration of approaches across the overall programme Technical support by the sector lead departments to implementers will include: Identifying areas with potential to create to create EPWP work opportunities Developing and promoting best practice Assisting with reporting EPWP outputs Monitoring and improving performance 19

20 MTEF Budget of R 5 billion Line item Infrastructure incentive grant for provinces and municipalities National departments (DEAT and DWAF) Amount R3 800 million R 630 million Non-state Sector initiative EPWP unit New Programmes (Working for Energy) R400 million R125 million R 45 million 20

21 Implications for EPWP Unit and DPW Organisational assessment and development of EPWP Unit to ensure capacity to respond adequately to EPWP 2 Financial administration and management of R4.2 billion of grants and incentives Capacity and institutional arrangements to mobilise intergovernmental commitments (political and administrative) to deliver on EPWP 2 targets Ongoing participation in Anti Poverty Strategy development and alignment 21

22 Implementation Timelines Business plan to January 2009 Cabinet Lekgotla Nov Dec/Jan Feb Mar x Communicate EPWP 2 x x x x Establish infrastructure fiscal incentive for provinces and municipalities Non state sector business plan x x Final EPWP 2 Log-frames Interim capacity mobilised x x Operational systems for fiscal incentive in place M&E Framework finalised Target agreement process X x Recommendations on employment conditions Roles and responsibilities clarified x x x x x x x x x

23 Support Programme Contribution Background The Support Programme (EPWSP) is a joint initiative between Business Trust and the Department of Public Works [DPW] The Goal of the EPWSP is to support the implementation of the EPWP by undertaking focused and prioritized programmes, which seek to maximise the achievement of the EPWP s targets Total funding R110 million R100 million : Business Trust R10 million: DPW Five year programme 1 March 2005 to 31 March 2010 Currently in fourth year [2008/09] The Support Programme targets was to assist in creating work opportunities (44% of the overall EPWP target). This target will be reached a year early in March 2009nd progress are as follows:

24 Support Programme Contribution cont. Overall Support Approach Overall target of Support Programme in securing work opportunities by March 2010 in respect of Business Trust contractlikely to be met by March 2009 Handover process developed and implemented - ensure that all learnings, systems and processes are handed over to the EPWP Unit. Focus support on assisting the EPWP Unit implement EPWP 2- from January 2009 existing resources to be refocused on following two types of support: Strategic/Technical: Assignments undertaken with EPWP Unit to address agreed critical issues Operational : Operational assistance undertaken with a Chief Director EPWP Unit to scope, procure/allocate and induct the capacity essential to implement a critical element of work

25 Support Programme Contribution cont. Strategic and Technical Support Strategic support for planning of EPWP 2 including: Business Plan for January Cabinet Lekgotla, development of the Overall and Sector Log-frames, clarification of roles and responsibilities, and setting targets for all Public Bodies Infrastructure Fiscal Incentive -Development of the infrastructure fiscal incentive for EPWP 2 Social Sector- support the resolution of key conditions to secure EPWP Social Sector incentive grants for 2010/11 Environmental Sector- support engagement with DWAF and DEAT to enhance alignment and basis for expansion of the existing EPWP linked programmes Non State Sector-proposals for the pilot so as to secure approval and funding Institutionalization of STAF for EPWP 2-basis for ongoing access to this support Learning programme for the EPWP 2-skills development for EPWP practitioners Conditions of employment for EPWP 2- assist with review and revision Long term Institutional Proposals for the EPWP 2

26 Support Programme Contribution cont. Operational Support Subject to the approval of the EPWP 2 business Plan the following areas will be supported: Infrastructure Sector: Support to scope, procure/allocate and induct the capacity to implement the fiscal incentive Mainstreaming EPWP 2: Support to scope, procure/allocate and induct the capacity to implement the stakeholder engagement and management process (where Public Bodies accept their EPWP 2 targets and incorporate these into their performance management process). Support to scope, procure/allocate and induct the capacity to communicate the EPWP to all stakeholders. Subject to approval and funding for implementation of the following areas of work, support to scope and procure the capacity to implement the: Institutionalization of the STAF Oversight of the Non State Sector initiative Subject to the approval and funding to the Business Trust for the Non State

27 Key issues and recommendations Agree overall approach Agree sphere targeting approach Agreement on incentive approach Year 0 or Year 1 for assessing first year of performance Non state pilots Budget Business Trust role Community Works Programme Agreement on technical support approach