NATIONAL COUNCIL OF PROVINCES
QUESTION FOR WRITTEN REPLY
QUESTION NUMBER 88
DATE OF PUBLICATION: 9 OCTOBER 2009
Mr T Harris (DA-WC) to ask the Minister of Finance:
(1) Whether the National Treasury was (a) involved in negotiating or (b)
consulted regarding the recent public service wage settlement at an
average wage increase of 11.5%; if not, what is the position in this
regard; if so, what are the relevant details;
(2) whether this increase (a) is in line with medium term fiscal planning
and (b) will result in an adjustment in government recruitment in the
medium term; if not, what is the position in this regard; if so, what
are the relevant details?
CW141E
REPLY
(1) (a) No. This is the responsibility of the Department of Public
Service and Administration.
(b) Yes. The National Treasury was consulted regarding the recent
public service wage settlement agreement.
(2) (a) In terms of the 2009 budget guidelines, departments were asked
to budget for salary increases of 6.0 per cent in 2009/10. The higher
than anticipated CPI predicted for 2009/10 warranted higher increases
in salaries, and provision has been made for several occupation
specific dispensations. It has proposed that a maximum of R9Â billion
be added to the provincial equitable share and a maximum of R3Â billion
be added to the votes of national departments to cover the commitments
contained in various salary agreements signed this year. These amounts
are in addition to the provision for improvements in conditions of
service made in the February budgets of national and provincial
departments.
(b) Public sector employment growth has increased strongly and is
expected to continue to increase especially in sectors such as
education, health and policing, albeit at a slower pace. Details in
this regard are available in the 2009 Medium Term Budget Policy
Statement.