PRESENTATION ON THE AMENDMENTS TO THE SKILLS DEVELOPMENT ACT TO THE PORTFOLIO COMMITTEE ON LABOUR 30 July 2008

SAICA is the pre-eminent accountancy body in South Africa SAICA is a voluntary, non-statutory professional body representing 28 000 Chartered Accountants in South Africa SAICA confers the designation CA(SA), which is protected by the Chartered Accountants Designation (Private) Act SAICA was the first ETQA accredited by SAQA SAICA registered the first learnership with DOL through FASSET: 9 500 learners at 900 accredited workplace providers with 1 600 registered assessors SAICA is the only professional body in South Africa recognised by the Independent Regulatory Board for Auditors SAICA is the only professional accountancy body in South Africa recognised by a number of leading international institutes of accountants

Professional examinations The CA(SA) designation is achieved through a rigorous academic, training and assessment process Education: 13 accredited higher education institutions Training: 900 accredited workplace providers Professional examinations BCom Certificate in the Theory of Accountancy (honours equivalent) Minimum of 3 years Ongoing formative and summative assessment 2 exams 1st exam set by SAICA 2nd exam set by SAICA or IRBA

We commend the drafters of the Bill on the following … The inclusion of the definition of the word ‘trade’ The inclusion of the word ‘profession’ alongside the word ‘trade’ in section 16c to provide that a learnership can only be established if it would lead to a ‘qualification’ registered by the SAQA associated with a trade, occupation or profession. The establishment of the QCTO which requires it to quality assure occupational standards and occupations (section 26H) and liaise with professional bodies (section 26H) which are responsible for establishing standards and qualifications and quality assurance of standards and qualifications Providing that a QCTO may delegate any of its functions to ‘any other suitable body’

We have three main areas of concern … Lack of synergy or consistency in the provisions of the NQF Bill and the proposed SDA amendments Failure to define certain key concepts Fragmented quality assurance by the QCs

Inconsistency in use of “designation” and “qualification” Section 16c of the SDA amendments states that a SETA may establish a learnership if the learnership would lead to a registered qualification associated with a … profession while Section 31 of the NQF Bill requires a professional body to register a designation on the NQF A qualification is a statement of competence which, once achieved, requires no further actions or input, while a designation is not a permanent status - it is subject to on-going requirements and may be revoked due to non-compliance with any specified requirements It will limit a professional body’s responsibility to protect the public interest if members who have been removed from the register are allowed to remain registered on the NLRD The SDA requires the registration of a qualification on the NQF for purposes of establishing a learnership Provision should still be made for the recognition of professional bodies - but such recognition should not be tied to the registration of a designation on the NQF – this will enable professional bodies to participate in learnerships, which will give effect to the spirit and intent of the Skills Development Act

The proposed QCs may lead to a fragmented approach to the quality assurance of education and workplace-based learning The Bill defines one of the objectives of the NQF as enhancing the quality of education and training – however, the distinction between the quality assurance function of the HEQC, the body responsible for higher education and the QCTO, the body responsible for quality assurance of “… learning in and for the workplace” will fragment education and training quality assurance initiatives Many professional qualifications do not fall neatly into the category of academic qualifications or vocational qualifications and it is unclear what the ambit of the respective QCs will be in this regard The Bill provides for professional bodies to register designations on the NQF, but the proposed Skills Development Act provides for SETAs to establish learnerships if the learnership would lead to a SAQA registered qualification associated with a trade, occupation or profession – this may preclude professional bodies from participating in learnerships No specific mention is made in section 261 of the delegation of its functions by the QCTO to professional bodies - despite the fact that the proposed amendments do acknowledge the role played by professional bodies in the establishment and quality assurance of standards and qualifications. It is not clear why SETAs are mentioned by name and not the professional bodies

In terms of the amended SDA, skills development providers accredited by a SETA ETQA will be recognised by the QCTO during the transitional period – there is no reference to professional body ETQAs in this regard Currently professional body ETQAs accredit providers in terms of regulations issued under the SAQA Act, and in terms of the NQF Bill this arrangement will continue until the regulations are repealed by the Minister The proposed transitional arrangements conflict with the provisions of the NQF Bill

Failure to define certain key concepts may lead to confusion in interpreting the legislation Although “trade” is clearly defined, no definition is provided for “occupation”. In the light of the fact that section 16c of the SDA amendments provides for a SETA to establish a learnership if the learnership would lead to a SAQA registered qualification associated with a trade, occupation or profession, “profession” is not defined Following from the above, other definitions such as ‘occupational qualification’, ‘Occupational Qualifications Framework’ may require some revision

Recommendations OR Establish a fourth sub-framework for professional qualifications To be administered by its own QC or one of the three other QCs Insert the words ‘professional qualification’ in section 31 of the NQF Bill to allow professional bodies to choose what to register on the NQF This will enable a professional body that registers either a professional designation or a professional qualification to be recognised by SAQA and to give effect to the spirit and intent of the Skills Development Act by participating in learnerships Section 28(i) of the NQF Bill should be amended to provide for full delegation of quality assurance by QCs to recognised professional bodies This will enable professional bodies to perform the requisite quality assurance functions in respect of their own designations Expand section 1 of the SDA to include additional definitions ‘occupation’ to include a ‘profession’ ‘occupational qualification’ to include a ‘professional qualification’ Occupational Qualifications Framework to include ‘professional qualifications’

SAICA subscribes to the spirit and intent of the Skills Development Act SAICA remains committed to participating in national, legislative structures to enhance the quality of education and training and to develop and improve the skills of the South African workforce and will continue to engage constructively with these structures