2. TETA PRESENTATION TO PARLIAMENT Dr Piet Bothma 19 October 2005 Dr Piet Bothma 19 October 2005

3. TRANSPORT SECTOR PROFILE ChamberMicroSmallMediumLargeUnclassifiedTotalLevies AC19023242620046336 194 601 FC32748352423667018 196 329 FH43465434926385425 109 780 MC41064232442894916 826 656 RC252032399851 893 273 RF2000184114961222361648 090 707 RP222514246381965441626 584 929 TC8690092187290 296 Unknown21712704735742 010 Total5718544286291514911988223 928 585

4. Transport Sector Profile OCCUPATIONAL CATEGORIES AFRICANCOLOUREDINDIANWHITETOTAL Legislators, Senior Officials and Managers 724 666 607 6 236 8 233 Professionals 1 083 383 203 3 311 4 980 Technicians and Associate Professionals 3 749 2 861 88410 70318 197 Clerks 10 469 5 351 4 62518 167 38 612 Service and Sales workers 14 090 3 346 1 30414 932 33 672 Skilled agricultural and fishery workers 928 4 573 4 39 5 544 Craft and related trade workers 14 637 4 166 53010 305 29 638 Plant and machine operators and assemblers 28 08310 880 3 60110 046 52 610 Elementary occupations 43 69819 220 884 3 669 67 471 TOTAL PERMANENT 117 46151 446 12642 77 408258 957

5. TETA Structure Driving Force: To provide the best quality service and maximise value for all stakeholders Eight chambers: - Aerospace - Forwarding and Clearing - Freight Handling - Maritime - Rail - Road Freight - Road Passenger - Taxi Driving Force: To provide the best quality service and maximise value for all stakeholders Eight chambers: - Aerospace - Forwarding and Clearing - Freight Handling - Maritime - Rail - Road Freight - Road Passenger - Taxi

6. TETA STRUCTURE TETA currently has 49 full time staff. This will be increasing to 54 with the addition of 5 new positions currently being recruited. TETA currently has Offices in Gauteng, Kwa-Zulu Natal and Western Cape. STAFF COMPLIMENTPDIFemaleMaleVacant CEO11 Senior Managers12 5 471 Practitioners18 9 756 Admin Staff18131521 Support5 5 410 Total543230168 65 % Black 61 % Female15 % Vacant TETA currently has 49 full time staff. This will be increasing to 54 with the addition of 5 new positions currently being recruited. TETA currently has Offices in Gauteng, Kwa-Zulu Natal and Western Cape. STAFF COMPLIMENTPDIFemaleMaleVacant CEO11 Senior Managers12 5 471 Practitioners18 9 756 Admin Staff18131521 Support5 5 410 Total543230168 65 % Black 61 % Female15 % Vacant

7. SCARCE & CRITICAL SKILLS High level Transport Management, General Management and IT Skills to ensure Redress and Transformation of the Transport Sector. The Technical Critical and Scarce skills per Sub-Sector/Industry is as follows: AEROSPACE Fixed wing pilot training, specifically the progression from Commercial Pilot Licence (CPL) level to Airline Transport Pilot (ATP) level. Aircraft Maintenance Staff – Mechanical, electrical, structural and avionics. Airport Planning Engineers FORWARDING & CLEARING Supply Chain Management Customer Care Logistic & Data Analysis Project Management IT Skills High level Transport Management, General Management and IT Skills to ensure Redress and Transformation of the Transport Sector. The Technical Critical and Scarce skills per Sub-Sector/Industry is as follows: AEROSPACE Fixed wing pilot training, specifically the progression from Commercial Pilot Licence (CPL) level to Airline Transport Pilot (ATP) level. Aircraft Maintenance Staff – Mechanical, electrical, structural and avionics. Airport Planning Engineers FORWARDING & CLEARING Supply Chain Management Customer Care Logistic & Data Analysis Project Management IT Skills

8. SCARCE & CRITICAL SKILLS (Cont.) FREIGHT HANDLING Logistics Management Port Operation/Management Operators (Forklift and Lifting Machinery) / Technical IT Skills MARITIME Navigation Skills – Watch Officer (Fishing & Merchant Marine) Engineering Skills – Watch Officer (Fishing & Merchant Marine) Fishing Technologies / Fish Hunting competencies Marine Pilots RAIL Train Driving Railway Engineering (Maintenance, Repairs, Building and Designing) Production Planning and Logistics IT Skills Rail Traffic Management (Development & Implementation) FREIGHT HANDLING Logistics Management Port Operation/Management Operators (Forklift and Lifting Machinery) / Technical IT Skills MARITIME Navigation Skills – Watch Officer (Fishing & Merchant Marine) Engineering Skills – Watch Officer (Fishing & Merchant Marine) Fishing Technologies / Fish Hunting competencies Marine Pilots RAIL Train Driving Railway Engineering (Maintenance, Repairs, Building and Designing) Production Planning and Logistics IT Skills Rail Traffic Management (Development & Implementation)

9. SCARCE & CRITICAL SKILLS (Cont.) ROAD FREIGHT Dangerous Goods Professional Driver Qualifications Porters, Loaders and Packers (Material Handling) Technical Skills (Maintenance & Support) IT Skills ROAD PASSENGER Professional Driver Qualifications Maintenance Management & Technical Skills IT Skills Logistics and Supply Chain Management TAXI Professional Driver Qualifications (Upgrading Code 8 to 10) Legislation Customer Care Business Administration ROAD FREIGHT Dangerous Goods Professional Driver Qualifications Porters, Loaders and Packers (Material Handling) Technical Skills (Maintenance & Support) IT Skills ROAD PASSENGER Professional Driver Qualifications Maintenance Management & Technical Skills IT Skills Logistics and Supply Chain Management TAXI Professional Driver Qualifications (Upgrading Code 8 to 10) Legislation Customer Care Business Administration

10. TETA Achievements in line with National Skills Development Strategy Objectives SLA TARGETS 2000 – 2005ACHIEVEMENTS 2000 – 2005 By March 2005 at least 154 550 workers in the transport sector have at least a level one qualification on the NQF or higher 158 733 workers completed at least a NQF level one Qualification 50 000 learners have embarked on a structured learning programme with at least 25 000 having successfully completed their programme. 363 126 learners participated on a structured learning programme. 206 561 completed structured learning programme. 20 Enterprises committed to implement QMS 27 Enterprises committed and implementing QMS NSDS 1 - Developing a culture of high quality lifelong learning

11. NSDS 2 (1):Fostering skills development in the formal economy for productivity and employment growth SLA TARGETS 2000 - 2005ACHIEVEMENTS 2000 – 2005 By March 2005, at least 198 enterprises with more than 150 workers are receiving skills development grants 217 enterprises with more than 150 workers received skills development grants and contribution towards productivity were measured At least 88 enterprises employing between 50 and 150 employees are receiving Skills Development grants 109 enterprises employing 50 – 150 employees received skills development grants and the contribution towards productivity were measured

12. NSDS 2 (2):Fostering skills development in the formal economy for productivity and employment growth SLA TARGETS 2000 - 2005ACHIEVEMENTS 2000 – 2005 By March 2004, 50 learnerships are available in the Transport Sector 55 learnerships registered and 52 apprenticeships available in the Transport Sector NDoT pay levies to TETA. NDoT align HRD strategy with TETA’s strategy - TETA signed MOU with 7 Provincial DoT - NDoT Contributed their component of the skills levy to TETA - NDoT and TETA do joint research on skills demands in the Transport Sector - NDoT align their HRD strategy with TETA Skills Development strategy for the Transport Sector

13. NSDS 3: Stimulating & supporting skills development in small businesses  Working relationship with DTI on SMME development. TARGETS: 2000 - 2005ACHIEVEMENTS: 2000 – 2005 By March 2005, at least 2 000 new and existing registered small businesses supported through Skills Development initiatives A total of 3 309 new and existing registered small businesses were supported and the impact of such support measured

14. NSDS 4: Promoting skills development for employability and sustainable livelihoods through social development initiatives SLA TARGETS 2000 - 2005ACHIEVEMENTS 2000 – 2005 By March 2005 100% of the NSF apportionment disbursed on viable development projects By March 2005, R 26.4 million were disbursed. A further R 38.6 million were committed, to be disbursed before end of June 2005 By March 2005, at least 3 000 learners from the Taxi and Small Boat Fishing Industries have benefited through structured training A total of 20 671 learners have benefited from structured training. 4 183 in the Taxi Industry and 16 488 in the Small Boat Fishing Industry

15. NSDS 5: Assisting new entrants into employment TARGETS: 2000 - 2005ACHIEVEMENTS: 2000 – 2005 By March 2005, a minimum of 3 500 learners have entered learnerships in the Transport Sector 6568 learners entered learnerships, in the Transport Sector By March 2005, 50% of those learners who entered learnerships will have employable skills or are in Social Development Programmes 85 % of learners successfully completed their learnership and achieved placement in the Transport Sector

16. Innovative Achievements TETA accredited as an IiP Organisation (35 % of TETA staff in Higher Positions) Awarding over R140 mill to 1 045 DG Projects R 20 mill SMME Project – 3 461 employees and 927 Companies employing less than 49 people benefited R 72 mill NSF Project - 20 671 People benefited from structured learning R 58 mill NSF Learnership Project – 2 253 Unemployed Learners R 14 mill DG Learnership Project – 560 Unemployed Learners 27 TETA Stakeholders committed to IiP Freight Handling, Dangerous Goods, Supply Chain Management, Maintenance Management and SMME Project successfully implemented in co-operation with the Belgium Government support TETA signed MOU’s with 5 Provinces - Department of Transport to add value in TAXI Industry Training Labour (552), Assessors (118), SDF’s (160) and Moderation Training successfully implemented TETA accredited as an IiP Organisation (35 % of TETA staff in Higher Positions) Awarding over R140 mill to 1 045 DG Projects R 20 mill SMME Project – 3 461 employees and 927 Companies employing less than 49 people benefited R 72 mill NSF Project - 20 671 People benefited from structured learning R 58 mill NSF Learnership Project – 2 253 Unemployed Learners R 14 mill DG Learnership Project – 560 Unemployed Learners 27 TETA Stakeholders committed to IiP Freight Handling, Dangerous Goods, Supply Chain Management, Maintenance Management and SMME Project successfully implemented in co-operation with the Belgium Government support TETA signed MOU’s with 5 Provinces - Department of Transport to add value in TAXI Industry Training Labour (552), Assessors (118), SDF’s (160) and Moderation Training successfully implemented

17. Income Statement for the year ended March 2005 R’000 INCOME 252 540 Levy income – Admin 21 903 Levy income – Grant 172 575 Levy income – Interest & penalties 1 741 NSF 33 158 Investment Income 23 072 Other Income 91 EXPENSES 181 822 Administration expenses 21 163 NSF 33 158 Project expenses 16 530 Mandatory Grant Disbursement 78 317 Discretionary Grants 32 654 SURPLUS 70 718 Notes: Grants Disbursed as a percentage of grant income, is 64% Administration expenditure for the year was within the administration income of the Seta. Interest income was earned on the funds placed on call on surplus funds. The net surplus funds are all committed funds for the mandatory and discretionary grants and projects in terms of its contract obligations. The income statement recognizes all payments made for the year in terms of contracts concluded and the difference is regarded as committed funds in terms of Generally Accepted Accounting Practice. Grants Disbursed as a percentage of grant income, is 64% Administration expenditure for the year was within the administration income of the Seta. Interest income was earned on the funds placed on call on surplus funds. The net surplus funds are all committed funds for the mandatory and discretionary grants and projects in terms of its contract obligations. The income statement recognizes all payments made for the year in terms of contracts concluded and the difference is regarded as committed funds in terms of Generally Accepted Accounting Practice.

18. Grant Disbursement Schedule for the year ended March 2005 Financial YearAcademicImplementationTotal MandatoryDiscretionaryTOTAL GRANTS Year-ended 2005 27 57950 73878 31732 654110 971 Year-ended 2004 20 79452 49573 28918 978 92 267

19. ANNUAL FINANCIALS & AUDIT RESULTS 2004 – 2005 Financial Year –SDL Income = R194 478 000 –Total Investment Income = R23 072 000 –Total revenue = R252 540 000 –Total expenses = R181 822 000 –Expenses as percentage of SDL Income = 93% –Net surplus / (deficit) = R70 718 000 –Total Cash & Cash equivalents = R372 092 000 2004 – 2005 Financial Year –SDL Income = R194 478 000 –Total Investment Income = R23 072 000 –Total revenue = R252 540 000 –Total expenses = R181 822 000 –Expenses as percentage of SDL Income = 93% –Net surplus / (deficit) = R70 718 000 –Total Cash & Cash equivalents = R372 092 000

20. COMMITTED FUNDS AND PROJECTS 1Discretionary Grant Contracts 70,670,341.76 2Project Contracts 32,675,934.51 3Learnership Contracts 7,828,478.67 4SMME Contracts 3,924,619.00 5General Trade Suppliers 1,173,908.66 6Provision for Audit Fees 250,000.00 7Provision for Unpaid Leave 672,348.20 8Provision for Academic/Imp Grants 108,051,692.65 9Provision for Discretionary Grants 12,348,937.38 10SMME for year 2005-2006 10,000,000.00 11Taxi Technical Training 1,000,000.00 12Taxi Follow up Training 10,000,000.00 13Learnership ETDP with TETA 1,000,000.00 14Service Provider Support 5,000,000.00 15NGO's and CBO's 5,000,000.00 16BEE Company Support 5,000,000.00 17Investors in People 1,000,000.00 18Fishing Industry Support - 7 Hubs 7,000,000.00 19Discretionary Grant 2005-2006 22,500,000.00 Total Committed Funds = 304,611,678.55

21. ANNUAL FINANCIALS & AUDIT RESULTS –TETA has achieved unqualified audits by the Auditor General’s (AG’s) office for the last five years. This can be attributed to the stringent controls that are in place. –No matters of emphasis were identified by the AG’s office –No significant matters were identified by the AG’s office with the exception of reporting of surplus vs committed funds. –TETA has achieved unqualified audits by the Auditor General’s (AG’s) office for the last five years. This can be attributed to the stringent controls that are in place. –No matters of emphasis were identified by the AG’s office –No significant matters were identified by the AG’s office with the exception of reporting of surplus vs committed funds.

22. KEY CHALLENGES 2005 - 2008 Ensure High Quality Service Delivery to TETA Stakeholders Implementation of Total Quality Management Systems (ISO 9002) Facilitate a high quality delivery framework in line with Critical and Scarce Skills and logistical spread of stakeholders Avail information on Supply and Demand of Skills in the Transport Sector Addressing Transformation, Economic Growth, Retirement, Flow of HR between sectors, New entrants Support to SMME and SMME sustainability Challenges facing the Transport Sector preparing for 2010 Skills demand for Gautrain Project Formalisation of TAXI Industry and Skills demands for the Industry Small Boat Operators Safety at Sea Impact of HIV/AIDS on the Transport Sector demand for Skills Inter-Model Transport Operations and an Integrated Supply Chain Management Strategy Demand Different Skills Mix International Best Practices Ensure High Quality Service Delivery to TETA Stakeholders Implementation of Total Quality Management Systems (ISO 9002) Facilitate a high quality delivery framework in line with Critical and Scarce Skills and logistical spread of stakeholders Avail information on Supply and Demand of Skills in the Transport Sector Addressing Transformation, Economic Growth, Retirement, Flow of HR between sectors, New entrants Support to SMME and SMME sustainability Challenges facing the Transport Sector preparing for 2010 Skills demand for Gautrain Project Formalisation of TAXI Industry and Skills demands for the Industry Small Boat Operators Safety at Sea Impact of HIV/AIDS on the Transport Sector demand for Skills Inter-Model Transport Operations and an Integrated Supply Chain Management Strategy Demand Different Skills Mix International Best Practices

23. The End