Introducing the Intergovernmental Relations Framework Bill (Preview) Department of Provincial and Local Government Tuesday, 15 February 2005

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Introducing the Intergovernmental Relations
Framework Bill (Preview)Department of
Provincial and Local Government Tuesday, 15
February 2005
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Context for Bill

1. Governments program of action (policy context)
2. Constitutional framework for intergovernmental
   relations
3. Current reality
4. Initiatives to strengthen intergovernmental
   cooperation

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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
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The Constitutional context
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Concurrency

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

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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)

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Division of Revenue
R million 2000/01 2001/02 Outcome 2002/03 2003/04 Revised 2004/05 2005/06 2006/07
2001/02 Outcome 2003/04 Revised Medium-term estimates Medium-term estimates Medium-term estimates
National Departments 73 178 87 705 99 091 110 494 120 597 131 047 139 677
Provinces 108 899 121 099 136 925 161 476 181 130 199 704 216 344
Equitable Share 98 398 107 460 123 457 144 743 159 971 173 852 186 392
Conditional grants 10 501 13 638 13 468 16 733 21 158 25 853 29 953
Local Government 5 536 6 520 8 706 12 390 14 245 15 916 17 091
Equitable Share 2 415 3 184 4 187 6 350 7 678 8 643 9 365
Conditional grants 3 121 3 336 4 519 6 039 6 568 7 272 7 726
Total Allocations 187 613 215 324 244 721 284 359 315 972 346 667 373 112
Percentage shares Percentage shares Percentage shares Percentage shares
National departments 39,0 40,7 40,5 38,9 38,2 37,8 37,4
Provinces 58,0 56,2 56,0 56,8 57,3 57,6 58,0
Local government 3,0 3,0 3,6 4,4 4,5 4,6 4,6
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Source 2004 Budget Review
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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

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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!!

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Intergovernmental relations current reality

• Risks
• Informality means intergovernmental relations can
  become discretionary
• Lack of certainty about inclusion of local
  government
• Joint decision-trap
• High transaction costs of coordination

• 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

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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

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Lengthy, inclusive consultation in Government
Nov 2004

Version 1
Version 2
Published Version
Version of Bill
Cabinet approval
Cabinet Workshop
Cabinet Committee
10YR
ELECTION
Premiers wkp LG MinMEC PCC
Cluster (2) PCC MinMEC Budget Coun. Written inputs
Jan/Feb 2005
Certified introduced
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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.

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1. Scope
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Persuasive challenges facing our people
Challenge best addressed by all spheres working
together
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2. Scope and Application
Legislation
Priorities
Institution
POA
PCC
Bill
Premiers District forums
Budget DOR
Budget structures
IGFRA
Concurrent priorities
MinMECs
Bill Acts
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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

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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)_

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Chapter Two Intergovernmental structures

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

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Intergovernmental structuresstatus quo
STATUTORY

1. SAPS
2. Budget Council
3. Budget Forum
4. Council of Education Ministers
5. IDMC (Disaster management)

(5) National structures
NON-STATUTORY

(12) National (11) Provincial District Not
Defined
Majority of forums are non-statutory in all
spheres
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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
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National MinMEC

• Strategic plan for sector
• Sector policy (POA)
• Sector expenditure and
• performance
• Referrals to PCC

Minister
MECs
(SALGA)
Key forum serving concurrency. Majority are
non-statutory
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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
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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
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Inter-municipality/provincial Forums

• Sharing of Best Practice
• and Lessons
• Intergovermental
• relations

Opportunities currently not utilized
effectively!
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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

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Chapter Four Resolution of intergovernmental
disputes

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

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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

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Thank youContactMr D Powell Deputy
Director-General (Acting) Governance, Policy and
Research(012) 334 0833
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