Report of the Portfolio Committee on Trade and Industry on Department of Trade and Industry on Vote 32 of the 2005/6 Budget: Trade and Industry

The Portfolio Committee on Trade and Industry having considered the budget of the Department of Trade and Industry (Vote 32) for 2005/6 financial year and the forwarded estimates for 2006/7 and 2007/8 included in the Estimates of National Expenditure 2005, as well as the Department’s Medium Term Strategic Plan 2005-2008 presented before the Committee, reports that it accepts them. The Committee further reports as follows:


The main features of the 2005/6 budget are:

A more comprehensive report on the Department’s performance against the output targets in the 2004/5 budget will be provided in the Department’s Annual Report, which will be a subject of detailed engagement, by Members.

The Committee also received a report on output targets for 2005/6. These include a number of detailed targets aimed at increasing the contribution of small enterprises to the economy, advancing broad based Black Economic Empowerment, raising levels of investment, increasing market access opportunities for South African enterprises, building skills, technology and infrastructure and general improving the performance and capacity of the Dti in all areas. A feature of output targets this year is the identification of "flagship projects", which the Committee was told to be "non-negotiables" that needed to be delivered on as identified before the end of the financial year and these include:

The Committee also had an opportunity to engage on budgetary issues with four of the COTII institutions. Highlights of these discussions include:




The Industrial Development Corporation

The National Empowerment Fund

Khula Enterprise Finance

The National Gambling Board




The Committee is pleased to report continued progress in the presentation and reporting on the Dti’s budget. A Department once known for its significant underspending and large roll overs, is now a Department that spends almost all of the funds allocated to it by Parliament. The Department’s programmes are also closely aligned to its major activities and financial control and reporting systems seem to be functioning effectively. In addition, the Committee has received report indicating that the Department had delivered on a number of key output targets identified in the 2003/4 budget. However, as indicated above, the Committee did not receive a full, comprehensive report on its performance against last year’s output targets. The Committee was told that such a report will only be provided later in the year. Monitoring this is one of the key oversight activities, which have been flagged by the Committee for later this year for a detailed engagement.

While the Committee found that in general there was improved delivery in 2004/5 on the output targets identified, a few matters of concerns were identified. These include:

The Committee notes that Khula's indicators are positive.

The challenge of responding to the needs of persons in the "second economy" by creating new opportunities for high quality sustainable livehoods, has been identified by the President and Government as priorities. Many of the structures we interrogated have at least tacitly and/or expressly acknowledged that many of their existing products and services are poised to respond to the challenges of transforming the "second economy". As such, the Committee notes that identifying options to improve service delivery to persons in the "second economy" is one of the "flagships", non-negotiable output targets for the 2004/5 financial year. The Committee welcomes these new focuses, as well as the commitment to begin to implement the broad based BEE strategy, and believes that engaging with these issues will need to guide much of the work of Parliamentary oversight in the years ahead.

The Committee acknowledges the contribution made by Dr. A. Ruiters during his term as Director General for the Department of Trade and Industry.

Report to be considered.



Chairperson Date