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The President in his opening address to Parliament on Friday highlighted a number of issues that have been and continue to be a central concern of my Ministry. These issues are spelt out in the programme of action contained in the White Paper on the Transformation of the Public Service and feature in the programme of activities that will be implemented during the course of this year by the Department of Public Service and Administration.

The transformation of the Public Service is the reason for the existence of my Ministry and constitutes the mission of the Department of Public Service and Administration. This is a broad mandate whose fulfillment requires prioritisation and segmentation into manageable implementation phases. As indicated in the President's speech, during this year the issue of managing the human resources in the Public Service will occupy centre stage.

In this regard, three particular issues were highlighted in the President's address:

the need to cut spending on personnel and negotiate retrenchment packages in such a way so as not to worsen the problem of unemployment;
the need to root out those corrupt elements who are not imbued with a spirit of public service and see the Public Service as a opportunity for self enrichment; and finally
the need to ensure employment equity in the Public Service and ensure the attainment of affirmative action targets.

The employment policy framework within which these issues will be addressed is already in place. The White Paper on Human Resource Management in the Public Service, which will be formally launched on the 17th of this month, will create an enabling policy environment characterised by employment justice, cultural diversity and transparency The White Paper contains a number of pertinent proposals. Amongst the proposals on the table are the phasing in of a retirement age reduced from the age of 65 to 60, and the proposal that all public servants be issued with written employment contracts

The White Paper on Human Resource Management in the Public Service also contains proposals on the termination of the services of public servants. In cases where termination is initiated by the employer on the basis of compulsory severance, the White Paper spells out the principles which should be adhered to when negotiating compulsory severance schemes with employee organisations.

These principles include stipulations that redeployment options be considered before implementing severance, that selection criteria should be focused on operational requirements, that there should be fair financial compensation, and that severance arrangements should include measures to assist employees to make the transition from the Public Service.

The President in his speech was forthright about the need to cut personnel expenditure in the Public Service. This need arises from the structure of employment in the Public Service and the redundancy problems in the Public Service.

This government is committed to transforming the Public Service so that it can meet the needs of our people. To achieve this we have to radically change a Public Service designed to support a privileged minority and repress the aspirations of the majority. This process of radical transformation necessarily encompasses and affects the structure of employment in the Public Service.

As the Reconstruction and Development Programme indicates, it is not possible to improve conditions for historically neglected communities exclusively by means of additional outlays. This is not a feasible or affordable possibility. As we redirect resources to meet the needs of reconstruction and development, we must phase out unnecessary activities. Any other approach would lead to an unnecessary ballooning of expenditure, and slow down the redirection of our government, and undermine the efficiency of the Public Service.

Two key areas of transformation have had a direct bearing on the restructuring of Public Service employment and exacerbated the problem of redundancies. These are the rationalisation process and the reprioritisation exercise.

Let me first deal with the issues around rationalisation. It was a commonly shared expectation that substantial savings would emerge from the rationalisation of multiple apartheid administrations. Rationalisation was expected to free resources for use in providing basic services to the public. Instead, we found that although we could merge the parallel administrations of the homelands and the tripartite system into a single effective structure, we could not substantially reduce employment.

Since government, like most other services, is inherently labour intensive, the inability to end unnecessary jobs means that most of the hoped-for savings remain unrealised.

The second key area of transformation that has led to the restructuring of Public Service employment and exacerbated the problem of redundancies is reprioritisation. The Reconstruction and Development Programme set an agenda that included the redirecting of government efforts from an excessively large security establishment and the slimming down of programmes that benefited the relatively well off. We have gone some way in redirecting fiscal resources to that end, with a steady decline in funding for the military and the gradual equalisation of budgets between provinces and communities.

Within departments, new policies have brought forth new needs, while generating savings in others areas. Again, however, while we can redirect the budget to meet the needs of our people, the current personnel framework in the public service means that we cannot easily change our employment structures.

Various factors make it particularly difficult to manage the problems of redundancy that arise out of transformation. In 1996, we agreed to put a freeze on employer-initiated retrenchments in return for the unions' agreement to a voluntary severance package which we hoped would make it possible for redundant personnel voluntarily to leave the public service. Unfortunately, the redundant personnel have not really taken advantage of this offer.

Despite considerable effort, we have found it difficult to redeploy people within the Public Service. On the one hand, many of the people affected do not have the skills we need in the new Public Service. On the other hand, we have very few ways to exert pressure on people whose current work is not in the public interest. As a result, such people may refuse to accept work in new areas or perform new functions.

To deal with this situation we need to ensure that redundant employees have realistic options outside the public service. We plan to devote considerable effort and funds to enabling redundant employees to join in developmental efforts outside the public service. We will do this by helping them to access appropriate training and by helping them to participate in broader efforts to reconstruct our economy. This kind of social plan or programme is particularly crucial in the former homeland areas, which apartheid historically underdeveloped and where many redundant employees now live.

The President has mandated the Department of Public Service and Administration to begin working out proposals in this regard. Discussions will be initiated with the unions on retrenchments in accordance with the provisions of our labour laws. We know that our employees and their representatives are dedicated to the transformation of the Public Service. We also realise that employee organisations have an obligation to ensure a fair deal for their members.

We have to find ways to protect the interests of individual public servants while reducing the obstacles to the development of a Public Service that effectively and efficiently meets the needs of reconstruction and development.

As the President pointed out in his speech, as a result of staff reductions in some departments and provinces, the size of the Public Service has been getting smaller. The number of public servants declined from 1,270,112 in September 1995 to 1,138,549 at the end of December 1997. This effectively means that there were 131,563 less public servants on the payroll.

However, if one takes into account the number of funded vacant posts in critical areas that may still be filled, the number of public servants on the payroll could change in the future. The figures also still include tens of thousands of supernumerary personnel that up to now could not be redeployed or retrenched. To be more specific, we are talking about approximately 55,000 supernumerary personnel.

As the President pointed out in his speech on Friday, this reduction in size is not nearly enough. The government remains committed to right-sizing the Public Service. The recommendations, instruments and guidelines being developed by the Project on Right-Sizing and Retrenchment Management in Department of Public Service and Administration will be finalised and implemented during the course of this year. The project is scheduled to table its recommendations at the end of March this year.

Right-sizing has been one of the key strategies used to achieve a leaner and more cost effective Public Service since the publication of the White Paper on the Transformation of the Public Service two years ago. In the first 18 months of the transformation process, the right-sizing initiative focused on the abolition of funded vacancies including positions vacated by officials who accepted voluntary severance packages.

As of December 1997, the number of funded vacancies abolished in the 1997/98 financial year was 6,998. The abolition of these funded vacancies realised savings of 323 million rands which was used for improvements in the conditions of service of public servants. This is in addition to the more than 18,000 vacancies abolished in the previous financial year which realised savings of 622 million rands.

With regards to voluntary severance packages, as of September 1997, 65,848 applications had been received, 48,054 of which were approved. The restrictive policy on the filling of voluntary severance packages posts is aimed at absorbing as many surplus personnel as possible, promoting representativeness and efficiency, and reducing the total number of public servants. This restrictive policy has, however, not proved sufficient.

As stated earlier, during this year the issue of managing human resources in the Public Service will occupy centre stage.

During the latter part of 1997 Parliament approved a new Public Service Commission Act and the Public Service Laws Amendment Act. These Acts reflect the new roles of the Ministry, of executing authorities and of the Public Service Commission. There is now a clear devolution of powers to executing authorities who have original powers with regard to internal organisation, appointments, promotions and other career incidents of public servants.

In order to give departments and provincial administrations the capacity to operate within this legislative framework, the Department of Public Service and Administration launched a project on introducing completely new Public Service Regulations and a Good Management Guide. This project has an envisaged implementation date of 1 April 1998 and pervasive implications.

The project will have three primary outputs. Firstly, a substantially reduced number of nevertheless mandatory new regulations for the entire Public Service. Secondly, binding collective agreements with employee organisations on matters of mutual interest. Thirdly, an extensive Good Management Guide that offers guidance and examples of best practices for possible use by departments and provincial administrations. This guide will provide scope for management discretion and diversity while providing for a unified Public Service.

The draft Public Service Regulations have already been workshopped with the appropriate executive and parliamentary bodies. Transitional arrangements, training programmes and communication strategies are being designed. The draft Public Service Regulations cover a range of topics. These include:

Responsibilities, delegations and authorizations;
Service delivery standards and improvement programmes;
Work organisation, planning, remuneration and other conditions of service;
Procedures for appointment, promotions and termination of services;
Performance management, training and education;
Labour relations issues, appeals and misconduct; and the
Publication of stipulated or requested information.

Each one of these topical areas features in the Department of Public Service and Administration's programme of activities for 1998. A number of them cover matters of mutual interest with employee organisations and are therefore subject to negotiations and consultations.

I would now like say a few words regarding the appointment of a new Public Service Commission. The new Constitution establishes a single Public Service Commission to replace the existing national Public Service Commission and the nine Provincial Service Commissions. The new 14-member Public Service Commission, which will be appointed by the President, will consist of five members approved by the National I>egislature and nine members nominated by the Provincial Premiers and approved by the provincial legislators.

I have requested and expect to receive these nominations by 1 March 1998. It is likely that the President will appoint the new members of the Public Service Commission by April this year.

In line with its constitutional mandate, the Public Service Commission has identified the eradication of malpractice, corruption and poor services as a high priority. The Code of Conduct, which was launched in June last year, has been translated into all eleven official languages as well as Braille. The Commission has developed an Explanatory Manual on the code to assist departments and administrations with its practical implementation.

In so far as the South African Management Development Institute (SAMDI) is concerned, it has been repositioned to address the current needs of the transformation process. New specialised training units have been established on Human Resource Management, Policy Analysis, Project Planning and Productivity Management. In order to broaden its pool of expertise and provide appropriate training, SAMDI has established linkages with a number of foreign public service training institutions.

The Civil Service College, London continues to assist SAMDI in the provision of management training programmes. The French Institute for Public Administration is committed to assisting with the provision of training programmes in public finance; while the Civil Service College, Singapore will assist with training programmes in productivity. Additional assistance programmes are being negotiated with the German Federal Leadership Institute and the Irish Institute for Public Administration. The Japanese government has equally offered to train public servants.

To conclude, let me say a few words about the importance the government attaches to the key role of Information Technology in transforming the Public Service. The Department of Public Service and Administration is investigating the restructuring of the IT function at both a policy and operational level to ensure that a coherent approach through out government is adopted.

For this reason that we are looking at adopting a "single window approach" to the way in which we deliver some services to the public. This will allow the citizens faster and more convenient access to a broad range of government services from a single point. It will also mean better service to the public and lower cost to the taxpayer.

The Department of Public Service and Administration is developing a strategic plan for IT activities throughout government. An integral part of the strategic plan will be standards governing data, information and technology. We are also co-ordinating within government the efforts involved in fixing the YEAR-2000 problem, which is common to all governments and the private sector world-wide.

My Ministry is confident that the programme of activities that I have outlined will provide a platform for the attainment of the goal of better governance as spelt out in unequivocal terms by the President in his opening address to the penultimate sitting of our first democratic parliament.

I Thank you.

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