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Questions over Seta changes

Audra Mahlong
By Audra Mahlong, senior journalist
Johannesburg, 19 Jan 2010

The Department of Higher Education (DHE) has come under fire from the Democratic Alliance (DA) for proposed changes to its training system.

The department previously announced that all Sector Education and Training Authorities (Setas) will be overhauled, but questions still remain as to which authorities will be affected and what the extent of the proposed changes will be.

While the DHE says changes will only be announced in April, the DA's shadow minister for higher education, James Wilmot, says the department plans to impose further obligations on the private sector. According to Wilmot, the DHE intends to compel companies that receive government tenders to provide skills training.

He says higher education and training minister Blade Nzimande's plans are misguided and government is incapable of administering two separate training schemes.

Government has already allocated R316 million for scarce and critical priority skills, and R300 million for priority trades from the National Skills Fund. The Department of Labour has also allocated R844 million for training programmes in all Setas for the next two years, which is expected to be transferred to the DHE. Government has also set aside R2.4 billion to fund initiatives dealing with the economic crisis through a National Jobs Fund.

“Instead of abandoning the Setas and introducing a skills development programme that works, he wishes to add another skills development programme at a further cost to the private sector... there is no factual basis to believe that Nzimande's new scheme will work either. We may well end up with two wasteful skills development programmes,” says Wilmot.

Skills extended

All Setas were recently incorporated into the DHE from the Department of Labour, and further changes will include a review of the National Skills Authority, the Seta landscape and the National Skills Development Strategy, and will only be completed after 2010.

Government has stated it needs time to “apply its mind” to what changes need to be made and ensure the right results are reached before any decisions are made.

While Wilmot says most Setas are a “waste of money” and should be scrapped, the DHE recently indicated it had no plans to dissolve the training bodies.

Nzimande has gazetted the extension of the national skills development strategy and the current Seta licence. These will be extended by one year, from March 2010 to March 2011.

Learnership focus

Nzimande noted that governments would focus on encouraging matriculants to look at Setas for learnerships, apprenticeships and skills programmes. The focus will be on partnerships with the National Skills Fund to make more learnerships available in 2010 in scarce skills areas, such as ICT, engineering, science and health.

The Setas will recruit 35 000 learners into these programmes during 2010. A further 2 500 will receive opportunities for 'skilling' into creating their own new ventures. The department will also contribute R500 million towards a special project to roll out learning programmes, targeting matriculants who failed to meet university entrance requirements.

Wilmot notes that while learning programmes should be supported, government should rethink the Seta system.

“The private sector must play its role. But government must not abuse the goose that lays the golden egg. The private sector creates wealth. Government distributes the taxes based on the wealth and it must do so wisely, prudently and in the interests of those least well off,” says Wilmot.

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