1. Legal Practice Bill Costing Portfolio Committee on Justice and Constitutional Development

2. 2 Introductory remarks The cost imperative of the proposed legislation is premised on the following considerations:  contribution from the fiscus which will be in respect of the Transitional Consultative Forum (TCF) which will be funded for a single MTEF cycle for the duration of the TCF;  Contribution from the fiscus for the Ombud which kicks in in the 4 th year of the implementation of the Act – funding for the TCF will constitute baseline for the Ombud [A provision that the budget for the Ombud will constitute earmarked funds in DOJ&CD vote will enhance the independence of the office]  continuing funding for 4 law societies and the Fund parallel to the TCF processes  National Legal Practice Council and Regional Council kicks-in in the 4 th year of the implementation of the Act - funding for the law societies to fund the National and Regional Councils The funding model and costing for the National and Regional Councils to be undertaken by the TCF to ensure inclusivity and buy-in by the advocates and attorneys profession

3. 3 FACILITIES & START-UP COSTS The accommodation needs of the TCF is a permanent investment as it will provide for the facilities for the Ombud Accommodation in state-owned building in the long term will constitute savings to the state Pretoria will be preferred site in view for TCF / Ombud National Council & Regional Councils will leverage from existing infrastructure of law societies and Fund Lease must make provision for continuing costs such as water electricity and municipal taxes

4. 4 COMPENSATION OF EMPLOYEES Condition of service of Staff of TCF and Ombud will be subject to Public service laws The core staff of the TCF will consists of: -CEO [level 14/15 of Public Service] -3 Directors for Corp & Finance, Regulation, Professional Affairs & Conduct [ level 13] -Senior Researcher -3 Law Researchers, 1 Administrative Officer, 2 Admin clerks, Messenger Posts of staff of TCF will be retained for Ombud save for the position of Ombud which will be equivalent to salary of judge Staffing norms for National & Regional Council will be determined by TCF and may use Public Service as baseline or existing norms applicable to legal profession

5. 5 GOODS & SERVICES Goods and Services will cater for the following: -Security costs (security of facilities, personnel and information) -Meetings of the TCF (Subsistence & Travelling, per diem =12 times a year) -Meetings of Committees of TCF (Subsistence & Travelling, per diem = 24 times a year) -Operational Costs (overheads – telephones, fax, stationary) -Professional and expert services TCF will be subject to systems & internal controls of DOJ&CD as DG is accounting officer For the Ombud systems will be developed over the three year period in terms of the ear-marked funds dispensation

6. 6 INDICATIVE MTEF BUDGET ALLOCATIONS: Transitional Consultative Council Cost Item 2014/15 ‘ 2015/162016/17Total MTEF cycle Facilities and start-up costs Compensation of Employees Goods and services Total: 5, 400, 000 6, 681, 019 7,117,306 19,198,325 2,,400,000 7, 015, 153 7, 327, 419 16,532,459 2,500,000 7,436,063 7, 544, 344 17, 480,407 10,300,000 21,132,235 21,989, 069 53,421,304 Start-up costs will only be more for the first year of implementation and subsequent years will cater mainly for the lease TCF must be housed separately from the DOJ&CD to ensure functional independence

7. 7 FACILITIES MANAGEMENT The accommodation needs of the Department has increased over the past decade as more services are required to increase access to justice service to more citizens and the expansion of personnel establishments (court personnel, prosecutors and judicial officers) Increased accommodation also increased the budgetary requirements for municipal rates and taxes. Over the past five years the increases on building costs, office rental, water electricity and municipal taxes has on average increased with between 12 and 15 percent in real terms. The budget allocation has however increased with just more than 6 per cent over the past MTEF period thus putting further strain on the capital and office accommodation budget. The current estimated shortfall (2011/12) inclusive of capital works and property management amounts to R559 million (Leases R99 million, Rates and Taxes R35 million and Capital works R425 million)

8. 8 Facilities and Start-up costs Item ‘ 2014/15 ‘000 2015/16 ‘000 2016/17 ‘000 Lease Tenant installation Office furniture IT and network installation Security Total: 1,600 000 4, 000 000 2,200 000 1,4 000 000 R1,100 10,300,000 1, 700 000 - 600,000 1, 100 000 R1,200 4,600, 000 R1, 800 000 - 500,000 1,300, 000 R1, 300 4,900,000

9. 9 Compensation of employees Item ‘ 2014/152015/162016/17 CEO Corporate Services Dir Proff Affairs & Conduct Senior Researcher 3 Legal Researcher Administration Officer 2 Admin clerk 3 Personal Assist Messenger Receptionist Total: 1,136,910 771,306 771,506 1,486,809 290,585 379,065 758,131 157,840 6, 681,099 1,193,756 809 871 809,871 1,561,149 305,114 398,019 796,037 165,732 7, 015,153 1,265,381 858,464 1,654,818 323,421 421,900 843,799 175,676 7, 436,063

10. 10 Goods and services Item ‘ 2014/152015/16 ‘000 2016/17 ‘000 Meetings (Accommodation, SNT) Stationary & Publications Telephones Allowances Professional Services Total 2, 000 000 2, 200 000 1,200, 000 1,800, 000 1,500 000 R1,100 2,600 400 -

11. 0mbud Office of the Ombud will use facilities Personnel expenditure of TCF to be absorbed into the Personnel of Ombud with adaptation of remuneration of Ombud The 3 rd expenditure will form the 1 st year baseline for the Ombud

12. 12 INDICATIVE MTEF BUDGET ALLOCATIONS: Legal Services Ombud Cost Item 2017/182018/192019/20Total MTEF cycle Facilities and start-up costs Compensation of Employees Goods and services Total: 2,500, 0005, 400, 000 9,609,494 + 1,888,452 7,544,344 21,542,229

13. 13 Compensation of employees Item ‘ 2014/152015/162016/17 Ombud CEO Deputy CEO Corporate Services Dir Media Liaison Officer Senior Researcher 3 Legal Researcher Administration Officer 2 Admin clerk 4 Personal Assist 2 Legal Admin Off Messenger Receptionist Total: ? 1,485,576 1,136,910 771,306 771,506 1,486,809 290,585 379,065 758,131 467,192 157,840 8, 633,867 ? 1, 559,855 1,193,756 809 871 809,871 1,561,149 305,114 398,019 796,037 490,552 165,732 9, 065,560 ? 1,653,446 1,265,381 858,464 1,654,818 323,421 421,900 843,799 519,985 175,676 9,609,494

14. End Q&A