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PRESENTATION TO PORTFOLIO COMMITTEE: ARTS

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Title: PRESENTATION TO PORTFOLIO COMMITTEE: ARTS


1
PRESENTATION TO PORTFOLIO COMMITTEE ARTS
CULTURE NOVEMBER 2005
2
PATRICE LUMUMBA
  • Africa will write its own history, and it will
    be, to the North and to the South of the Sahara,
    a history of glory and dignity

3
DEPUTY MINISTER MS NTOMBAZANA BOTHA
  • A critical factor in the transformation of this
    sector was to devise legislation which did not
    simply provide an enabling framework in the
    historical areas such as the performing arts, but
    also to pave way for new areas of engagement such
    as the film industry and its development as a
    viable industry which contributes to the economic
    development, job creation and emergence of a
    south African aesthetic in this sector

4
VALUE CHARTER
  • The charterist character of the Value Charter
    is encapsulated in the moral imperative which
    reads
  •  
  • It is a national imperative to create facilities
    for ordinary South Africans to bear influence in
    the expression of their own images, thereby
    deepen democracy and create prosperity.
  • The National Film Video Foundation strives for
    the realisation of this noble ideal. 

5
MORAL IMPERATIVE VALUE CHARTER
  • The Moral Imperative together with the the Value
    Charter could be the basis for
  • Legitimate political,
  • Policy and programme formulating
  • and Consensus between the state, markets and
    citizens.

6
VALUE CHARTER
One of critical factors for the formation of the
distinctive and systematic set of normative
relations whereby the actions of one stakeholder
in the film sector are perceived as meriting
characteristic response by other stakeholders in
the societal scale.
7
VALUE CHARTER
  • Social contract.
  • Social cohesion.
  • Equity and justice.

8
VALUE CHARTER
  • Articulates desirable ends about the structural
    objects of the film sector that are currently
    unevenly distributed in our society.
  • Reminds us that film and video media are not
    about pacifying the nation with forms of
    escapism.
  • Guards against the entertainment myopia of film.

9
PLANNING PROCESS
  • 1999/2000
  • November 2000
  • August 2001
  • Profile 2002 Towards a viable South African Film
    Industry. Price Waterhouse Coopers study
    sponsored the now defunct DACST and the NFVF.
  • European Union - South Africa Film Symposium.
    Meeting opened by Mr Rob Adam DG of DACST.
    Presentations made by the then Dep. Minister of
    Finance Mr Mandisi Mpahlwa and Ambassador Laider,
    Head of the delegation of the European Commission
    to South Africa.
  • NFVF Indaba supported by EU Contributors
  • Dr Rob Adam, DG of DACST
  • Mr Shan Moodley, Chairperson NFVF
  • Mr Eddie Mbalo, Newly appointed CEO of the NFVF
  • Focus
  •    The role of the NFVF in relation to
    government the industry
  •    Consensus on critical recommendations to
    Cabinet

10
PLANNING PROCESS
  • February 2002
  • June 2002
  • November 2002
  • October 2002
  • NFVF strategy formulation process begins
  • R35 million for 3 years given as a stop-gap for
    the Feature Film Fund. The understanding being
    that by the time the NFVF strategy is completed
    the Feature Film Fund will be a permanent feature
    on the NFVF budget in order to comply with NFVF
    Act Section 8(1) (3). The purpose of the Film
    Video Initiative is to provide funding for
    feature film and video projects.
  • Workshop between DAC and NFVF. DAC represented
    by Mr Steven Sack and Ms Lindi Ndebele.
  • NFVF AND DAC WORKSHOP TERMS OF REFERENCE
  • NFVF submits strategy and Value Charter for
    official adoption. Mr Themba Wakashe officiated.

11
PLANNING PROCESS
  • April 2003
  • June 2003
  • December 2003
  • NFVF submissions of the strategy to the Technical
    Committee of MINMEC. It was resolved that DAC
    will call a workshop with provinces to deliberate
    about the implication of the NFVF strategy to the
    Provincial Strategies. The meeting was not
    called.
  • The NFVF briefs the DG Prof. Itumeleng Mosala
    about the NFVF plans and to induct the newly
    appointed Council. A proposal for the follow-up
    on the Inter-provincial workshop was made. The
    workshop never took place.
  • The Content Industry strategy was co-formulated
    by DAC, DOC, DTI, NFVF and SARS to galvanise a
    Sectoral approach incentive programme. The
    role of the NFVF was clarified and affirmed the
    Value Charter. The Cabinet approved the Content
    industry strategy based on the Sectoral Programme
    Approach.

12
PLANNING PROCESS
  • April 2004
  • June 2004
  • NFVF presents a business case for the
    NFVF programmes.
  • NFVF submitted draft Cabinet Memo to DAC to
    motivate for the Cabinet Approval for the
    programme.

13
THE BREAKDOWN AND PARALYSIS
  • DAC response the Department will prepare a
    general CABINET MEMO, moving away from the
    sectoral approach underpinned by the planning
    process that started in the year 2000.
  • The NFVF is allocated R24 million, a budget not
    informed by the strategic process.
  • R35 million for feature film funding lapsed.
  • Nothing is done to act on the Cabinet Authority
    on the content industry strategy.

14
THE AGENCY ROLE OF THE NFVF AS THE ORGAN OF THE
STATE AND THE PROCESS
  • Agency role.
  • Inter-institutional relations.

It is therefore important to clarify assumptions
in this regard so as to achieve effectiveness,
efficiencies and inter-institutional
compatibility.
15
OPTION 1 ON THE ISSUES RAISED
  • The NFVF could exercise its powers and mandate
    only through DAC without any flexibility to
    engage other organs of the state, industry and
    society.

In this scheme of things the NFVF is nothing but
the extension of the DAC bureaucracy.
16
OPTION 2 ON THE ISSUES RAISED
  • Parliamentary allocation through the DAC.
    However, the institution is a broker for both the
    development and growth of the film sector.

The NFVF would also be entitled to broker other
service deals with other government and the
spheres of government, including DAC.
17
FILM INDABA 2001 2005
  • According to the Film Indaba and the workshop
    that was held between the DAC and the NFVF, it
    was the latter form of the relationship that was
    adopted. This position was re-affirmed at Indaba
    2005

18
TURN AROUND KEY SUCCESS FACTORS
  • Film is a concurrent competency between the three
    spheres of government.
  • The Charterist view.
  • Accountable autonomy of the NFVF.
  • Commensurate resources to the mandate.
  • Bracing the DAC and NFVF for rapid growth.

19
CONCURRENT COMPETENCY
  • Film is a concurrent competency between the three
    spheres of government as well as a number of
    government Departments and institutions
  • Intergovernmental, departmental collaboration
    should be guided by Section 41 of the
    Constitution on the principles of co-operative
    government.

20
SECTION 41 OF CONSTITUTION
  • All spheres of government and all organs of
    state within each sphere must
  • cooperate with one another in mutual trust and
    good faith by
  • fostering friendly relations
  • assisting and supporting one another
  • informing one another of, and consulting one
    another on, matters of common interest
  • co-ordinating their actions and legislation with
    one another
  • adhering to agreed procedures and
  • avoiding legal proceedings against one another.

21
THE CHARTERIS VIEW
  • The focus should be on how the film sector is
    transformed thus contributing to nation building
    and global competitiveness.
  • This end cannot be achieved by bureaucratic
    orthodoxy cast in departmental silos.
  • Therefore, the Value Charter should be adopted
    as a National position. To that effect Cabinet
    approval of the Value Charter is necessary.

22
  ACCOUNTABLE AUTONOMY OF THE NFVF
  • The NFVF should be a broker for both development
    and growth of the film sector across government
    spheres, departments and institutions
  • However the Parliamentary allocation should be
    effected through the DAC.

23
COMMENSURATE RESOURCES TO THE MANDATE
  • The resources allocated to the NFVF should be
    commensurate and congruent to the NFVF mandate
    provided in terms of the NFVF Act.
  • The current allocation was based on the budget
    for the founding phase and establishment phase.
    It is not appropriate to the rapid growth phase.
  • The focus during the rapid growth phase should be
    on creating the threshold point to address the
    market failures in South African film industry
    while at the same time building the Relative
    Competitive Advantage at a global scale.

24
COMMENSURATE RESOURCES TO THE MANDATE
  • It is this kind of a mindset that will make South
    Africa a strong partner in co-productions.
  • The funding should be sourced from all the
    spheres of government, competent government
    departments and institutions.

25
 BRACING THE DAC, NFVF OTHER INSTITUTIONS FOR
RAPID GROWTH
  • The NFVF and the DAC should formulate and enter
    into a Service Level Agreement (SLA)
  • The SLA should include how the NFVF, DAC and the
    Arts and Culture Ministry will jointly approach
    other state departments and institutions which
    could add value to the Value Charter. Such
    institutions are mentioned throughout the Value
    Charter.

26
 BRACING THE DAC, NFVF OTHER INSTITUTIONS FOR
RAPID GROWTH
  • Appropriate resources should be allocated to the
    NFVF.
  • The Sectoral approach was both the spirit and the
    letter of all consultative processes and the
    Microeconomic Reform Framework that was
    prescribed by Cabinet in 2002.
  • The MTEF Review is the main window of opportunity
    to factor the proposed programmes and business
    plan.

27
BUDGET PROCESS
  • Development of NFVF Strategy and Value Charter.
  • Development of Business Plan.
  • Development of NFVF Programme Plan. Cost of
    programmes for 2006 is R54,6 million.
  • Current funding allocation is R24,6 million.
  • Receipt of the feature film fund of R35 million
    over past 3 years.

28
MULTIPLIER EFFECTS
  • R200 Million investment from direct allocation
    will result in strategic multiplier to R1.2.
    billion over 5 years.
  • The investment multiplier effect 6.
  • Medium size production of R15 to R20 million
    creates 200 jobs.
  • Minimum foreign trade ratio as per co-productions
    2080.
  • International benchmark funding ratio is 19.
  • The last time assessment in RSA the FR is less
    than 1 Profile 2000.

29
Value Chain Matrix
30
IMPACT OF FEATURE FILM FUND
  • 2001 2002 2003 2004 2005
  • Production
  • Documentary 15 14 11 40 28
  • Features 1 3 5 13 6
  • Shorts 5 8 7 7 2
  • Animation 1 1 1 1 2

31
IMPACT OF FEATURE FILM FUND (cont)
  • 2001 2002 2003 2004 2005
  • RD
  • Documentary 14 8 11 25 17
  • Features 12 2 2 16 19
  • Shorts 0 3 2 3 6
  • Animation 0 1 1 1 1
  • TV Series 13 1 1 5 1

32
IMPACT OF FEATURE FILM FUND (cont)
  • 2001 2002 2003 2004 2005
  • Training
  • Bursaries 2 19 22 38 74
  • Programs 15 5 6 8 4
  • Distr. Marketing 5 4 8 8 9

33
IMPACT OF FEATURE FILM FUND (cont)
  • Increased funding to other genres especially
    documentaries.
  • Increased funding to training progammes.
  • Increased number of bursary students funded.
  • Support given to more local film festivals.
  • Increased participation at international
    festivals.

34
FEATURE FILMS
  • Drum
  • Max Mona
  • The Flyer
  • Tsotsi
  • Twist
  • U-Carmen eKhayelisha
  • The Story of an African Farm
  • Forgiveness
  • Yesterday
  • Zulu Love Letter
  • 34 South
  • God is African
  • Promised Land
  • Proteus
  • Wooden Camera

35
DOCUMENTARIES
  • South African Love Story
  • Born into the Struggle
  • Maxine's Journey
  • Es'Kia Mphahlele
  • Karoo Kitar Blues
  • Crayfish Catchers
  • The Legacy of Muhammad
  • Spirits of The Uhadi
  • Sabrina
  • A South African Christmas
  • Sophiatown

36
TRAINING PROJECTS
  • AVEA
  • SCRAWL
  • CVET
  • SASWA
  • WITS Feedback Project
  • The Animation Workshop
  • 74 Bursaries

37
AWARDS
  • 30 Local and international awards including
  • U-Carmen e-Khayelitsha Golden Bear Berlin
  • Drum The Golden Stallion Fespaco
  • Drum The Best Art Direction Fespaco
  • Zulu Love Letter Best Actress - Fespaco
  • Zulu Love Letter European Union Prize - Fespaco
  • Max and Mona Best First Time Director (Feature)
    Fespaco
  • Beat the Drum SIGNIS Prize Fespaco
  • Beat the Drum Prize for Health and Security at
    Work Fespaco
  • Beat the Drum City of Ouagadougou Prize
    Fespaco

38
CHALLENGES
  • Funding of projects
  • - The NFVF will be unable to fund as many
    projects as in previous 2 years.
  • - The rand value attributable to projects will
    decline.
  • Staff Capacity
  • - Key positions currently vacant.
  • - Current staff overburdened due to lack of
    resources.
  • NFVF ACT
  • - Administration expenses exceeds maximum of
    25.
  • - Based on current allocation this equates to R
    6.15 million.
  • - Inability to meet all of the mandates set out
    in Act (e.g co-ordination of film at a National
    scale, policy development, conduct industry
    research, management of co-production treaties).

39
CHALLENGES (cont)
  • Other Statutory Obligation
  • - Non compliance with PFMA due to lack of
    resources, e.g. Supply Chain Management.
  • NFVF Programmes
  • - Inability to implement NFVF programmes
    effectively.
  • The incrementalist budget approach is clearly not
    sufficient to deal with the institutional
    requirements for service delivery.

40
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