1995 - National Treasury

-2.16-
assets during the transition phase. The Minister
of Finance is assisted in this exercise by an
Advisory Board, chaired by Mr Laurie Korsten and
composed of members nominated by the associated
institutions. Its brief, as suggested by its
name, is to advise the Minister on the management
of the AIPF.
In the recent past two years other important
developments in the field of pension funds
occurred. The Closed Pension Fund Act of 1993
provided for the establishment of the Closed
Pension Fund (CPF) to provide for the
administration of the pensions of members and
former members of the former Parliament and
former provincial councils. All obligations to such
members arising from the one or other statutory
pension provision were transferred to the CPF. In
order for the CPF to discharge its obligations
towards its members, the Act authorised:
the immediate transfer of R440 million to
the CPF; and
• the discharge of the remaining obligation of
R334 million (as at 1 February 1994)
established by actuaries over a period not
exceeding nine years.
The first capital redemption (being one-ninth of the
outstanding amount) was made on 1 February
1995. Provision for interest payable on the
outstanding amount is included in the Finance
Vote.
Section 189 of the 1993 Constitution, charges that
an Act of Parliament is to provide for the payment
by the national government of special pensions to
persons who have made sacrifices or served the
public interest in bringing about a democratic
order in South Africa. A first draft of such a Bill
has been completed and is currently being
considered.
2.2.5 Sectoral policies and programmes
2.2.5.1 Education and training
Education and training is the largest functional
component of consolidated national and provincial
expenditure, accounting for an estimated P.31,4
billion in 1994/95. Expenditure in this sector also
continued to grow faster than total government
spending during the early 1990s. Education
spending by the consolidated national and
provincial governments increased from an
estimated 6,2 per cent of GDP in 1991/92 to 7,0
per cent in 1994/95, and from 24,2 per cent of
total non-interest expenditure to 25,5 per cent.
Pre-tertiary education absorbed the bulk of the
additional spending during this period. Ordinary
schooling and other pre-tertiary education increased
from 20,8 per cent of total non-interest government
spending in 1991/92 to 21,9 per cent in
1994/95, while tertiary education increased from
3,4 per cent to 3,5 per cent.
Following an extensive process of policy debate
and consultation over the past year, the Minister
of Education issued a White Paper in February
1995 which sets out principles and policy
directions for education and training. In addition,
the Minister has appointed a National Commission
on Higher Education whose brief is to recommend
the restructuring of this sector to promote equity
and efficiency. Adult basic education and training
has been identified as an RDP project and a task
team has been established in this regard. Adult
education and training also feature strongly in
other investigations relating to the development of
an integrated qualifications structure and a new
approach to education and training. It is envisaged
that various other aspects of education will be
investigated during the 1995/96 financial year,
including the development of new curricula.
The Government of National Unity has launched
a process aimed at ensuring the provision of
qualitatively sound education to all. Implementation
of this programme began in January 1995
with a campaign aimed at the enrolment in
Grade 1 of all children aged six. This constitutes
the first step towards assuring that all children will
have access to ten years of schooling, beginning
with a pre-school year.
The Government recognises that there are
financial and resource constraints which limit its
ability to implement free education for all. The
State will not be able to fund all schools at the
level of per capita expenditure prevailing in those
parts of the system which have had higher levels
of funding in the past. The Government is
committed, however, to providing a sound educational
foundation to all and to the principle that this
basic educational entitlement should be free.
Many schools will continue to charge fees, at