PRESENTATION TO PORTFOLIO COMMITTEE: ARTS

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PRESENTATION TOPORTFOLIOCOMMITTEEARTS
CULTURENOVEMBER 2005
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PATRICE LUMUMBA

• Africa will write its own history, and it will
  be, to the North and to the South of the Sahara,
  a history of glory and dignity

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DEPUTY MINISTER MS NTOMBAZANA BOTHA

• A critical factor in the transformation of this
  sector was to devise legislation which did not
  simply provide an enabling framework in the
  historical areas such as the performing arts, but
  also to pave way for new areas of engagement such
  as the film industry and its development as a
  viable industry which contributes to the economic
  development, job creation and emergence of a
  south African aesthetic in this sector

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VALUE CHARTER

• The charterist character of the Value Charter
  is encapsulated in the moral imperative which
  reads
•  
• It is a national imperative to create facilities
  for ordinary South Africans to bear influence in
  the expression of their own images, thereby
  deepen democracy and create prosperity.
• The National Film Video Foundation strives for
  the realisation of this noble ideal. 

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MORAL IMPERATIVE VALUE CHARTER

• The Moral Imperative together with the the Value
  Charter could be the basis for

• Legitimate political,
• Policy and programme formulating
• and Consensus between the state, markets and
  citizens.

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VALUE CHARTER
One of critical factors for the formation of the
distinctive and systematic set of normative
relations whereby the actions of one stakeholder
in the film sector are perceived as meriting
characteristic response by other stakeholders in
the societal scale.
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VALUE CHARTER

• Social contract.
• Social cohesion.
• Equity and justice.

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VALUE CHARTER

• Articulates desirable ends about the structural
  objects of the film sector that are currently
  unevenly distributed in our society.
• Reminds us that film and video media are not
  about pacifying the nation with forms of
  escapism.
• Guards against the entertainment myopia of film.

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PLANNING PROCESS

• 1999/2000
• November 2000
• August 2001

• Profile 2002 Towards a viable South African Film
  Industry. Price Waterhouse Coopers study
  sponsored the now defunct DACST and the NFVF.
• European Union - South Africa Film Symposium.
  Meeting opened by Mr Rob Adam DG of DACST.
  Presentations made by the then Dep. Minister of
  Finance Mr Mandisi Mpahlwa and Ambassador Laider,
  Head of the delegation of the European Commission
  to South Africa.
• NFVF Indaba supported by EU Contributors
• Dr Rob Adam, DG of DACST
• Mr Shan Moodley, Chairperson NFVF
• Mr Eddie Mbalo, Newly appointed CEO of the NFVF
• Focus
•    The role of the NFVF in relation to
  government the industry
•    Consensus on critical recommendations to
  Cabinet

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PLANNING PROCESS

• February 2002
• June 2002
• November 2002
• October 2002

• NFVF strategy formulation process begins
• R35 million for 3 years given as a stop-gap for
  the Feature Film Fund. The understanding being
  that by the time the NFVF strategy is completed
  the Feature Film Fund will be a permanent feature
  on the NFVF budget in order to comply with NFVF
  Act Section 8(1) (3). The purpose of the Film
  Video Initiative is to provide funding for
  feature film and video projects.
• Workshop between DAC and NFVF. DAC represented
  by Mr Steven Sack and Ms Lindi Ndebele.
• NFVF AND DAC WORKSHOP TERMS OF REFERENCE
• NFVF submits strategy and Value Charter for
  official adoption. Mr Themba Wakashe officiated.

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PLANNING PROCESS

• April 2003
• June 2003
• December 2003

• NFVF submissions of the strategy to the Technical
  Committee of MINMEC. It was resolved that DAC
  will call a workshop with provinces to deliberate
  about the implication of the NFVF strategy to the
  Provincial Strategies. The meeting was not
  called.
• The NFVF briefs the DG Prof. Itumeleng Mosala
  about the NFVF plans and to induct the newly
  appointed Council. A proposal for the follow-up
  on the Inter-provincial workshop was made. The
  workshop never took place.
• The Content Industry strategy was co-formulated
  by DAC, DOC, DTI, NFVF and SARS to galvanise a
  Sectoral approach incentive programme. The
  role of the NFVF was clarified and affirmed the
  Value Charter. The Cabinet approved the Content
  industry strategy based on the Sectoral Programme
  Approach.

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PLANNING PROCESS

• April 2004
• June 2004

• NFVF presents a business case for the
  NFVF programmes.
• NFVF submitted draft Cabinet Memo to DAC to
  motivate for the Cabinet Approval for the
  programme.

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THE BREAKDOWN AND PARALYSIS

• DAC response the Department will prepare a
  general CABINET MEMO, moving away from the
  sectoral approach underpinned by the planning
  process that started in the year 2000.
• The NFVF is allocated R24 million, a budget not
  informed by the strategic process.
• R35 million for feature film funding lapsed.
• Nothing is done to act on the Cabinet Authority
  on the content industry strategy.

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THE AGENCY ROLE OF THE NFVF AS THE ORGAN OF THE
STATE AND THE PROCESS

• Agency role.
• Inter-institutional relations.

It is therefore important to clarify assumptions
in this regard so as to achieve effectiveness,
efficiencies and inter-institutional
compatibility.
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OPTION 1 ON THE ISSUES RAISED

• The NFVF could exercise its powers and mandate
  only through DAC without any flexibility to
  engage other organs of the state, industry and
  society.

In this scheme of things the NFVF is nothing but
the extension of the DAC bureaucracy.
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OPTION 2 ON THE ISSUES RAISED

• Parliamentary allocation through the DAC.
  However, the institution is a broker for both the
  development and growth of the film sector.

The NFVF would also be entitled to broker other
service deals with other government and the
spheres of government, including DAC.
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FILM INDABA 2001 2005

• According to the Film Indaba and the workshop
  that was held between the DAC and the NFVF, it
  was the latter form of the relationship that was
  adopted. This position was re-affirmed at Indaba
  2005

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TURN AROUND KEY SUCCESS FACTORS

• Film is a concurrent competency between the three
  spheres of government.
• The Charterist view.
• Accountable autonomy of the NFVF.
• Commensurate resources to the mandate.
• Bracing the DAC and NFVF for rapid growth.

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CONCURRENT COMPETENCY

• Film is a concurrent competency between the three
  spheres of government as well as a number of
  government Departments and institutions
• Intergovernmental, departmental collaboration
  should be guided by Section 41 of the
  Constitution on the principles of co-operative
  government.

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SECTION 41 OF CONSTITUTION

• All spheres of government and all organs of
  state within each sphere must

• cooperate with one another in mutual trust and
  good faith by
• fostering friendly relations
• assisting and supporting one another
• informing one another of, and consulting one
  another on, matters of common interest
• co-ordinating their actions and legislation with
  one another
• adhering to agreed procedures and
• avoiding legal proceedings against one another.

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THE CHARTERIS VIEW

• The focus should be on how the film sector is
  transformed thus contributing to nation building
  and global competitiveness.
• This end cannot be achieved by bureaucratic
  orthodoxy cast in departmental silos.
• Therefore, the Value Charter should be adopted
  as a National position. To that effect Cabinet
  approval of the Value Charter is necessary.

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 ACCOUNTABLE AUTONOMY OF THE NFVF

• The NFVF should be a broker for both development
  and growth of the film sector across government
  spheres, departments and institutions
• However the Parliamentary allocation should be
  effected through the DAC.

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COMMENSURATE RESOURCES TO THE MANDATE

• The resources allocated to the NFVF should be
  commensurate and congruent to the NFVF mandate
  provided in terms of the NFVF Act.
• The current allocation was based on the budget
  for the founding phase and establishment phase.
  It is not appropriate to the rapid growth phase.
• The focus during the rapid growth phase should be
  on creating the threshold point to address the
  market failures in South African film industry
  while at the same time building the Relative
  Competitive Advantage at a global scale.

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COMMENSURATE RESOURCES TO THE MANDATE

• It is this kind of a mindset that will make South
  Africa a strong partner in co-productions.
• The funding should be sourced from all the
  spheres of government, competent government
  departments and institutions.

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 BRACING THE DAC, NFVF OTHER INSTITUTIONS FOR
RAPID GROWTH

• The NFVF and the DAC should formulate and enter
  into a Service Level Agreement (SLA)
• The SLA should include how the NFVF, DAC and the
  Arts and Culture Ministry will jointly approach
  other state departments and institutions which
  could add value to the Value Charter. Such
  institutions are mentioned throughout the Value
  Charter.

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 BRACING THE DAC, NFVF OTHER INSTITUTIONS FOR
RAPID GROWTH

• Appropriate resources should be allocated to the
  NFVF.
• The Sectoral approach was both the spirit and the
  letter of all consultative processes and the
  Microeconomic Reform Framework that was
  prescribed by Cabinet in 2002.
• The MTEF Review is the main window of opportunity
  to factor the proposed programmes and business
  plan.

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BUDGET PROCESS

• Development of NFVF Strategy and Value Charter.
• Development of Business Plan.
• Development of NFVF Programme Plan. Cost of
  programmes for 2006 is R54,6 million.
• Current funding allocation is R24,6 million.
• Receipt of the feature film fund of R35 million
  over past 3 years.

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MULTIPLIER EFFECTS

• R200 Million investment from direct allocation
  will result in strategic multiplier to R1.2.
  billion over 5 years.
• The investment multiplier effect 6.
• Medium size production of R15 to R20 million
  creates 200 jobs.
• Minimum foreign trade ratio as per co-productions
  2080.
• International benchmark funding ratio is 19.
• The last time assessment in RSA the FR is less
  than 1 Profile 2000.

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Value Chain Matrix
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IMPACT OF FEATURE FILM FUND

• 2001 2002 2003 2004 2005
• Production
• Documentary 15 14 11 40 28
• Features 1 3 5 13 6
• Shorts 5 8 7 7 2
• Animation 1 1 1 1 2

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IMPACT OF FEATURE FILM FUND (cont)

• 2001 2002 2003 2004 2005
• RD
• Documentary 14 8 11 25 17
• Features 12 2 2 16 19
• Shorts 0 3 2 3 6
• Animation 0 1 1 1 1
• TV Series 13 1 1 5 1

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IMPACT OF FEATURE FILM FUND (cont)

• 2001 2002 2003 2004 2005
• Training
• Bursaries 2 19 22 38 74
• Programs 15 5 6 8 4
• Distr. Marketing 5 4 8 8 9

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IMPACT OF FEATURE FILM FUND (cont)

• Increased funding to other genres especially
  documentaries.
• Increased funding to training progammes.
• Increased number of bursary students funded.
• Support given to more local film festivals.
• Increased participation at international
  festivals.

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FEATURE FILMS

• Drum
• Max Mona
• The Flyer
• Tsotsi
• Twist
• U-Carmen eKhayelisha
• The Story of an African Farm

• Forgiveness
• Yesterday
• Zulu Love Letter
• 34 South
• God is African
• Promised Land
• Proteus
• Wooden Camera

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DOCUMENTARIES

• South African Love Story
• Born into the Struggle
• Maxine's Journey
• Es'Kia Mphahlele
• Karoo Kitar Blues
• Crayfish Catchers
• The Legacy of Muhammad
• Spirits of The Uhadi
• Sabrina
• A South African Christmas
• Sophiatown

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TRAINING PROJECTS

• AVEA
• SCRAWL
• CVET
• SASWA
• WITS Feedback Project
• The Animation Workshop
• 74 Bursaries

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AWARDS

• 30 Local and international awards including
• U-Carmen e-Khayelitsha Golden Bear Berlin
• Drum The Golden Stallion Fespaco
• Drum The Best Art Direction Fespaco
• Zulu Love Letter Best Actress - Fespaco
• Zulu Love Letter European Union Prize - Fespaco
• Max and Mona Best First Time Director (Feature)
  Fespaco
• Beat the Drum SIGNIS Prize Fespaco
• Beat the Drum Prize for Health and Security at
  Work Fespaco
• Beat the Drum City of Ouagadougou Prize
  Fespaco

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CHALLENGES

• Funding of projects
• - The NFVF will be unable to fund as many
  projects as in previous 2 years.
• - The rand value attributable to projects will
  decline.
• Staff Capacity
• - Key positions currently vacant.
• - Current staff overburdened due to lack of
  resources.
• NFVF ACT
• - Administration expenses exceeds maximum of
  25.
• - Based on current allocation this equates to R
  6.15 million.
• - Inability to meet all of the mandates set out
  in Act (e.g co-ordination of film at a National
  scale, policy development, conduct industry
  research, management of co-production treaties).

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CHALLENGES (cont)

• Other Statutory Obligation
• - Non compliance with PFMA due to lack of
  resources, e.g. Supply Chain Management.
• NFVF Programmes
• - Inability to implement NFVF programmes
  effectively.
• The incrementalist budget approach is clearly not
  sufficient to deal with the institutional
  requirements for service delivery.

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