The Portfolio Committee further noted the substantial shortfall (R150 Million approximately) in terms of budget against the expenditure of the Oceans and Coast Branch. It noted that this was largely due to the VAT that had to be paid on the Agulhus II; the costs associated with the Algoa that was transferred to the Department without any budget allocation; the overlap of one month's costs (including management fees) of operating both the Agulhus I and Agulhus II; and other costs associated with the research programmes of the Oceans and Coasts Branch. The Portfolio Committee further noted the Department's intention to fund this shortfall from allowable virements within the Department's budget.