John Peters

1. Red Tape to Red Carpet Red Tape Reduction Conference 2014 John Peters

2. RTR in perspective …
•National Development Plan (NDP)
Reducing the cost of regulatory compliance for small and medium- sized businesses.
•Medium Term Strategic Framework
Increased engagement between business and government to better understand what is required to unlock private sector investment and build trust between government and business.
•Provincial Strategic Goal 1 (PSG1)
Reduce red tape to make the province an easier, better place to do business.

3. WESTERN CAPE RED TAPE TO RED CARPET
Looking back.. What we’ve achieved
Looking forward.. What we are planning
•Established latter part of 2011

4. Looking back.. Achievements in 8 areas
Area 1: General Red tape & business support enquiries
Business support & red tape: Call centre, 20 access points & partnership network (e.g. SEDA, The Business Place)
Before: No central access point to raise red tape-related issues & business support After:
•Dedicated business support helpline & network of support
SARS/DHA/DoL: Established relationship with selected national government depts.
Before: Limited recourse when dealing with departments. After: Individual cases actioned and followed up.

5. Looking back.. Achievements in 8 areas
Area 2: Business registration
Hands-on support at 20 access points across province
Before: Fragmented support to SMEs regarding business registration After: Easy access to business registration support – both geographically & hands-on assistance
Commitment by CIPC to certain processing times and all WC enquiries to be escalated and settled by Call Centre
Before: Long and indefinite processing times After: Agreed processing timelines for at least 90% of applications:
•WC queries escalated promptly

6. Looking back.. Achievements in 8 areas
Area 3: Provincial Procurement
Commenced the process of overhauling the procurement process
Before: Multiple registrations - 13 departments; cost to subscribe; No electronic submissions After:
•Easier and more convenient registration and applications - once-off registration and electronic submission of quotations
•Scrapping of costs to subscribe – saving of >R5000 pa for an SME
•Implementation of Integrated Procurement Solution which allows electronic submission.
Hands on support through 20 access points and campaign to encourage registration and dedicated procurement portal
Before: Limited procurement assistance and fragmented points of assistance After: Once-stop shop portal

7. Looking back.. Achievements in 8 areas
Area 4:
Planning & Land Use
Introduction of service standards (score cards)
Before: Limited commitment to sticking to declared standards After:
•Municipalities are processing (compliant) plans in shorter timeframes
•City of Cape Town commitment: To process 80% of plans <500m2 within 30 days and those >500m2 within 60 days
Overhauling of systems:
•Improving technology
•Repeal of obsolete policies
•On-line viewing of zoning regulations
•Withdrawal of provincial guide plans
Before: Submission of applications (plans) in person and hard copy After:
•CoCT allows electronic submission of plans (since 1 Apr 2014)
•Quicker processing time – Fewer policies to consult

8. Looking back.. Achievements in 8 areas
Area 5:
Environment & Land Management
Major initiatives and projects by DEADP to improve processing time and increase predictability including:
•Adoption of environmental management frameworks
•Development of standards, easing EIAs
Before: Focus on application of regulations After: Attention to easing compliance with regulations and improving predictability
•No EIAs required for aquaculture, poultry & ostrich farming where standards are complied with
•EIAs only required for very sensitive areas or > 100ha and earmarked for agriculture and afforestation
•Establishment of Development Facilitation Unit (DFU) in DEADP
•Approval of CoCT SDF
•Replacement of various zoning schemes
Before: No dedicated unit assisting with development applications; limited spatial predictability ; various zoning schemes within a municipality After:
•Hands-on support to development projects and improved guidance
•Improved spatial predictability & less uncertainty wrt development planning

9. Looking back.. Achievements in 8 areas
Area 6:
Provincial Red Tape Challenge
Before
•Launched the inaugural Red Tape Challenge during the 2013/2014 financial year - limited to 5 provincial departments.
•Increased awareness and commitment within the WCG to reduce red tape to business.
Before: No dedicated initiative calling on WCG officials to proactively take steps to reduce red tape to business. After: Red tape reduction ideologies have been embedded in the minds of WCG officials in departments rendering business-facing services

10. Looking back.. Achievements in 8 areas
Area 7:
Municipal Support
•SOP gaps now being filled in municipalities
•Process times being optimised (e.g. reductions in approval period for building works under 500m2)
•Extensive business surveys in Cape Winelands, Eden and West Coast Districts to identify priority issues for business
•Increased awareness of the need for red tape reduction among municipalities
Hands on assistance to the municipalities of Eden, West Coast and Cape Winelands to reduce red tape

11. Looking back.. Achievements in 8 areas
Area 8: Enterprise and entrepreneurship support
•Improved and more convenient access to opportunities – financial and non-financial
•Being better prepared to access procurement and finance opportunities
Programmes and projects addressing:
•Entrepreneurship promotion
•Procurement support
•Access to finance (e.g. cession of payment, ED funding)

12. Looking forward.. Intervention areas (at national, provincial and municipal level)
Red tape reduction
General support
Continuation of existing projects
RIA
Municipal Support
Helpline

13. Looking forward…. Provincial & Municipal level: Red Tape Helpline intervention
Helpline intervention
Ongoing:
Close to 3 000 cases for assistance attended to since July 2011
(Almost 90% overall resolution rate. 74% resolved/closed at call centre (1st call resolution). Ongoing data analysis to determine priority areas for intervention)
OUTCOMES & TARGETS: 1. Increased utilisation of Helpline by business by 20% p.a. Actual: 2012/13 to 2013/14 752 to 1 475 2. Resolution of at least 80% of red tape queries received Actual: 89%

14. Looking forward…. Provincial & Municipal level: Regulatory impact assessment
Regulatory Impact Assessment (RIA)
Project 1: RIA Output/Milestones (1)Submission of RIA Guidelines and Framework at PTM (2) Institutionalisation of RIA in the WCG
OUTCOME: Reduction in new regulations that could negatively impact on business (pending baseline measurement).
What does RIA mean for business: New legislation/ regulations will not be passed unless impact on business (especially small business) has been assessed

15. Looking forward…. Provincial & Municipal level: Environment and land management
Environment and Land Management
Project 1: Environment and Land Management Date of completion: March 2015 Outputs/Milestones: Implementation of 6 key interventions : adoption of environmental frameworks; identification of areas excluded from EIAs; development of standards resulting in no EIAs being required for selected farming activities; defining/adopting “urban areas” – certain EIAs not being required; defining “development setback lines” – no EIAs required behind setback lines
OUTCOME & TARGET:
Reduction in time and cost of EIA- related applications and procedures (pending development of baseline)

16. Looking forward…. Municipal level: Municipal Support Programme
Municipal Red Tape Reduction Project
Project : Municipal Red Tape Reduction Project Output/Milestones: All district municipal areas for improvement in business-facing services (e.g. planning, business licences, fleet licences)
OUTCOME & TARGET:
Adoption of service level standards across all district municipalities leading to 80% of applications dealt within standard stated times

17. Looking forward…. Red Tape Reduction Portal
Red Tape Reduction Portal
Project Phase 2 of Red Tape Reduction Portal Outputs/milestones: to provide a platform for proactive dialogue with business to address key areas of focus for red tape reduction initiatives in support of business
OUTCOME & TARGET:
A dedicated communication channel for business and government.

18. FUTURE INITIATIVES
Cost of Red Tape Study
Last study in SA already 10 years old (R79bn in 2004)
Provincial Support Programme
Information Portal
Regulatory Requirement Count
Direct service delivery improvement
Single platform for accessing all government services
Modelled on initiatives in Canada and Austr.

19. FUTURE INITIATIVES
Sector Support Programme
Regulatory improvement by sector (e.g. film) including transversal issues (e.g. immigration)
Red Tape Report Card
Enterprise & Entrepreneurship Promotion
Monitoring government’s RTR initiatives and successes
Focus on youth entrepreneurship

20. Some of our challenges …
•Later starters (European standards) with relentless pressure to “catch up”
•Limited influence over other spheres of government
•Limited awareness of role-players about the need to improve the business enabling environment AND the integrated effort required for economic growth
•(Selfish) Public and private sector interests and agendas
•Narrow view of red tape – legislation & regulations – and not about improving systems and communication

21. Looking forward…. A summary of the positive change we hope to bring about
Have a visible response system that is used by business where queries are resolved
AND .. We ensure new regulation don’t impact negatively on small SMEs
AND… support local authorities to improve turnaround times wrt business-facing services
AND …continue to improve WCG business processes
It will be easier, cheaper and quicker to do business in the Western Cape
If we..
then..

22. Thank you

23. Tel:
Fax:
www.westerncape.gov.za
Contact Us
John Peters
Chief Director: Integrated Economic Development Services
021 483 9417
John.Peters@westerncape.gov.za
021 483 4892