National Transfer s

1. National Transfers Portfolio Committee workshop Transfers and Restructuring 10 August 2004

2. Impact of Restructuring and Transfers As the Department restructures and transfers “non-core” activities to other appropriate institutions the shape and size of the Department will change considerably over next 5 years. Current staff complement of 18 200 will reduce to approximately 6 000 as functions are transferred: Water Services Authorities/Providers (municipalities and or water boards) 8000 personnel; Water User Associations 1300 personnel; Catchment Management Agencies, Number of personnel still to be determined; National Water Resources Infrastructure Agency, internal “ring fenced” operation, currently 2200 staff involved; Appropriate Forestry agencies (commercial plantations and woodlots) 1825 personnel; and Appropriate Conservation agencies (natural forests) 850 personnel.

3. Challenges There are three major challenges facing the Department with regard to this institutional transformation and restructuring: Ensuring that the institutions to which we are transferring functions have sufficient capacity toperform the functions; Ensuring that the Department retains and/or creates sufficient capacity in DWAF to perform the functions relating to the Department’s long term role; Ensuring that there are mechanisms in place to dealwith any potential overstaffing

4. Organisational Structure National transfers Director General DDG Corporate Services Manager National Transfers Water Sector Transfers Forestry Transfers Restructuring Data Management Compliance Water Services Coordinator National Coordination Water Resources Coordinator Regional Coordination Administration And HR Refurbishment

5. Water Sector Comp of Employees/Co-ordination 6 400 000 Communications 500 000 HR training and retraining 550 000 Survey and land allocation 3 750 000 Data base 1 500 000 Capacity Building WSA/WSP 2 000 000 Capacity Building DWAF 1 874 000 Forestry Plantation restructuring 776 000 Indigenous Forest Restructuring. 209 000 Community forestry Restructuring 103 000 Restructuring Change Management (DFID) 134 000 Culture Survey (DFID) 239 000 Personnel Cost of transfer (+RO) 31 890 000 plus 29 300 000 TOTAL 79 225 000 Budget 2004/05

6. Water Sector Transfers (1) WATER SERVICES:The extent of water services transfers: 316 bulk (large) schemes, which were part of pre-1994 homelands; 196 new schemes completed in terms of the CWSSCP since 1994; 1032 rudimentary schemes; total present day value of infrastructure is estimated at R7,403 billion; refurbishment required estimated at of cost of R725 million; current number of Departmental staff involved is 8000; 84 Municipalities affected by the programme (2 Metros, 18 DM’s, 64 LM’s) Project cycle, 253 days from start of transfer negotiations to conclusion. PROGRESS to 31 July 2004:Agreements concluded and those under negotiation represents 34 % of the major agreements which must be concluded. Progress can be summarised as follows 20 Agreements concluded (17 municipalities, 3 water boards); 87 Schemes transferred, total asset value R999.6 million, 419 staff transferred and/or seconded; 10 Agreements in advanced stage of negotiation, 41 schemes, total asset value R1627 million and 3050 staff.

7. Water Sector Transfers (2) WATER RESOURCES: Water User Associations 26 Water User Associations operating government water schemes; the operation and maintenance functions transferred to the Oranje Riet, Vaalharts, Boegoeberg, Kakamas, Lower Olifants WUA’s; In the case of Boegoeberg and Kakamas and Lower Olifants staff are still seconded; Staff transfers are pending the outcome of discussions/negotiations with unions; A draft contract to regulate the maintenance of infrastructure is being finalised; 2004/05 discussions/negotiations commenced for the delegation of operation and maintenance responsibilities to the Sand/Vet and the Orange River (Van Der Kloof Canals) WUA’s.

8. Forestry Transfers (1) Number of forestry transfer initiatives are in progress and can be summarized as follows: Restructuring of SOE’s : Restructuring of SAFCOL nearing completing, commercial closure achieved on the last three packages – Amatola, MTO and Komatiland. Target to conclude lease negotiations by September 2004; Knysna Forests : Ministerial approval for the delegation of the management functions of 97294 ha of forest land to the South African National Parks (SANParks), the transfer of functions which was scheduled for 1 April 2004, delayed as a result of deadlock in negotiations with labour. New target date 1 September 2004. Western Cape: Negotiating with WCNCB to take responsibility for the forest land West of the Touw River. The proposal is to de-proclaim areas (761 900 ha) in terms NFA and designate as conservation areas. PWD will be responsible for vesting the land with WCNCB.

9. Forestry Transfers (2) Eastern Cape : Negotiating with the Eastern Cape Provincial Government for the transfer of natural forests. Proposal to assign 413 063 ha of state forest areas to Provincial DEAEAT. Target date for transfer to be agreed. Mpumalanga : Negotiating with DEAT and MPB to assign the natural forest areas and conversion areas (Clear felled commercial plantation areas) for incorporation into the proposed Blyde Canyon National Park.Total area to be assigned is 15 600ha. Work commenced on socio-economic impact assessment and consultation with stakeholders.MOU to be signed 19 August 2004 Category B and C plantations : Packaging category B and C plantations to comply with FED principles. Target end September for submission to RCC.

10. Restructuring Restructuring Office engaged in the following activities: Support to Restructuring Core Committee; Implementation of the restructuring scorecard; With assistance of Chief Directorate Communications, Publish a Newsletter of National Transfers Office, two newsletters have been published and circulated. The Social plan is being implemented, includes all employees who took severance package or early retirement in terms of the implementation of Resolution 7 (delay in concluding due to arrangements with DOL and service providers). Change management strategy being developed, survey completed and preparing proposals for establishment of change management hub. Culture survey being conducted which will feed into the change management strategy. Minister of PSA issued a directive regarding staff transfers to local Government effective 1 July 2004. Developing “after care programme”

11. THANK YOU