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Context for Bill

Introducing the Intergovernmental Relations Framework Bill (Preview) Department of Provincial and Local Government Tuesday, 15 February 2005. 1. Context for Bill. Government’s program of action (policy context) Constitutional framework for intergovernmental relations Current reality

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Context for Bill

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  1. Introducing theIntergovernmental Relations Framework Bill (Preview)Department of Provincial and Local Government Tuesday, 15 February 2005 1

  2. Context for Bill • Government’s program of action (policy context) • Constitutional framework for intergovernmental relations • Current reality • Initiatives to strengthen intergovernmental cooperation 2

  3. Policy context of Bill Constitutional Requirement (s41) Act providing for structures to facilitate IGR and procedures for dispute resolution Integrated governance Makgotla resolutions Realizing national vision given relative autonomy of provincial and local government Ten Year Review Improving performance of the state Target for 2014 GVT POA 3

  4. 2. Constitution invests organs of state with authority to act in their own right within their jurisdiction 1 . Constitution assigns powers and functions to three spheres, unassigned functions vest in national government 3. Coherent government for Republic requires spheres to cooperate and to coordinate actions effectively The Constitutional context 4

  5. Concurrency • National government performs functions that are not or cannot be (defense) allocated to provinces and municipalities (37.4% of national budget) • National government and provinces share social service functions (health, social grants and welfare and education). National’s role is policy, regulation and oversight. Provinces budget and spend (58% of national budget: 93.7% is transfers) 5

  6. Concurrency • National government and local government share basic service functions that are cost recoverable (water provision, sanitation, electricity). (4.6% of national budget: 85.4% is own municipal revenue) 6

  7. Division of Revenue 7 Source: 2004 Budget Review

  8. Concurrency • Division of revenue is determined according to s214 of the Constitution and coordinated through multi-year budget process • Provincial and local equitable shares are unconditional (authority for use, expenditure and accountability vest in provinces and municipalities). • Municipal functions are primarily funded through own revenue (rates, user charges, and RSC levies) and transfers 8

  9. Concurrency • Provincial and municipal performance is subject to national policy and legislation (norms and standards) and subject to powers of monitoring, support and intervention. • In practice, spheres coordinate their distinctive responsibilities through intergovernmental institutions and practices in order to forge coherent government and equitable service provision for the country as a whole!! 9

  10. Current reality: Intergovernmental processes largely informal Certain statutory structures exist Pressure on all three spheres to accelerate delivery of services Emphasis on performance and effective coordination Policy issues of the day cut across jurisdictional boundaries Stronger, spatially integrated forms of cooperation required Risks: Informality means intergovernmental relations can become discretionary Lack of certainty about inclusion of local government “Joint” decision-trap High transaction costs of coordination Intergovernmental relations: current reality 10

  11. Key programs 2005 • Intergovernmental Relations Framework legislation • Process (lead by Presidency) to align development priorities of all three spheres • Supporting provinces to develop Provincial Growth and Development Strategies (PGDS) and municipalities to review Integrated Development Plans (IDP) • IDP Hearings (commencing March 2005) will focus on engagement with Government priorities and municipal capability to implement IDP 11

  12. 2003 June 2004 Lengthy, inclusive consultation in Government Nov 2004 Version 1 Version 2 Published Version Version of Bill Cabinet Workshop Cabinet approval Cabinet Committee 10YR ELECTION Premiers wkp LG MinMEC PCC Cluster (2) PCC MinMEC Budget Coun. Written inputs Jan/Feb 2005 Certified & introduced 12

  13. 1. Objectives • Promote and Facilitate: • a) Coherent Government; • b) Co-ordination in the implementation of policy • and legislation; • c) The effective provision of services; • d) Monitoring the implementation of policy and • legislation; and • e) Overall realisation of national priorities. 13

  14. 1. Scope and content of Bill • Executive government • Institutional Framework • National, Provincial & Local Gvt • Promote and facilitate IGR • Integration • Dispute Resolutions 2. Section 41(2) of the Constitution • Structure and Institutions • Settlement of Disputes 1. Scope 14

  15. Redress Apartheid legacy: • Poverty • Underdevelopment • Marginalisation Persuasive challenges facing our people Challenge best addressed by all spheres working together 15

  16. Legislation 2. Scope and Application … Priorities Institution POA PCC Bill Premier’s & District forums Budget & DOR IGFRA Budget structures Concurrent priorities MinMECs Bill & Acts 16

  17. 3. Overview of chapters • Chapter One: Interpretation, Application and Object of Act • Chapter Two: Intergovernmental structures • Chapter Three: Conduct of Intergovernmental Relations • Chapter Four: Resolution of intergovernmental disputes • Chapter Five: Miscellaneous 17

  18. Chapter One: Interpretation, Application and Object of Act • Applies to government and Organs of State of executive • Does not apply to: • Parliament • Legislatures • Courts and judicial Officers • Institutions established in terms of Chapter 9 (eg. Public Service Commission, etc)_ 18

  19. Chapter Two: Intergovernmental structures • Chapter provides a broad legal framework for existing non-statutory structures • Defines primary purpose of each institution • Clarifies linkages between intergovernmnetal structures are broadly defined (especially between MinMecs, Budget Council and PCC) 19

  20. Intergovernmental structures:status quo STATUTORY • SAPS • Budget Council • Budget Forum • Council of Education Ministers • IDMC (Disaster management) (5) National structures NON-STATUTORY (12) National (11) Provincial District Not Defined Majority of forums are non-statutory in all spheres 20

  21. Members Focus National PCC • High level policy priorities • (POA) and monitoring of • implementation • Hear views of provinces • and Local Government • Analysis of formal trends in resource • mobilisation and expenditure • Identified issues from • MinMecs/provinces/ organised LG President Coordinating Ministers Premiers SALGA Chairperson Currently: non statutory comprises senior executive authority 21

  22. Members Focus National MinMEC • Strategic plan for sector • Sector policy (POA) • Sector expenditure and • performance • Referrals to PCC Minister MEC’s (SALGA) Key forum serving concurrency. Majority are non-statutory 22

  23. Members Focus Premiers Forum Premier Coordinate strategic priorities for Province Matters arising from/to PCC Implementation of policy and legislation (POA) At least MEC for Local Government Metro & District mayors Organised Local Government Many provinces have established similar forums. All are non-statutory 23

  24. Members Focus District Forum District mayor Matters arising from/to Premiers Forum Service delivery, economic development and district co-ordination Implementation of policy and legislation (POA) Local mayor Variety of similar forums established. All are non-statutory Strengthen role of a District Municipality 24

  25. Focus Inter-municipality/provincial Forums • Sharing of Best Practice • and Lessons • Intergovermental • relations Opportunities currently not utilized effectively! 25

  26. Chapter Three: Conduct of intergovernmental relations • Organs of State must assist and support one another as contemplated in Constitution and National Legislation • Chapter also provides for implementation protocols to assist the division of responsibilities between spheres in key areas of national priority in spatially integrated ways 26

  27. Chapter Four: Resolution of intergovernmental disputes • Organs of State must seek to resolve own disputes without resorting to judicial proceedings • Default measure (Chapter not apply to disputes concerning interventions in terms of Section 100 or Section 130 of the Constitution) • Compliance with procedures mandatory • Non-compliance precludes court action • Facilitation role for Minister of Provincial and Local Government or MEC for Local Government 27

  28. Chapter Five: Miscellaneous • Main purpose of chapter is to provide for reporting, regulation and other incidental matters • Ministerial Report to Parliament in both Houses with regard to, inter alia: • General conduct of IGR in Republic • Incidence and Resolution of Intergovernmental Disputes 28

  29. Thank youContact:Mr D Powell: Deputy Director-General (Acting): Governance, Policy and Research(012) 334 0833 29

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