Legal Practice Bill Costing

Portfolio Committee on Justice and Constitutional Development

2

Introductory remarks The cost imperative of the proposed legislation is premised on the following

considerations:

contribution from the fiscus which will be in respect of the Transitional Consultative Forum (TCF) which will be funded for a single MTEF cycle for the duration of the TCF;

Contribution from the fiscus for the Ombud which kicks in in the 4th year of the implementation of the Act – funding for the TCF will constitute baseline for the Ombud [A provision that the budget for the Ombud will constitute earmarked funds in DOJ&CD vote will enhance the independence of the office]

continuing funding for 4 law societies and the Fund parallel to the TCF processes

National Legal Practice Council and Regional Council kicks-in in the 4 th year of the implementation of the Act - funding for the law societies to fund the National and Regional Councils

The funding model and costing for the National and Regional Councils to be undertaken by the TCF to ensure inclusivity and buy-in by the advocates and attorneys profession

3

FACILITIES & START-UP COSTS

The accommodation needs of the TCF is a permanent investment as it will provide for the facilities for the Ombud

Accommodation in state-owned building in the long term will constitute savings to the state

Pretoria will be preferred site in view for TCF / Ombud National Council & Regional Councils will leverage from

existing infrastructure of law societies and Fund Lease must make provision for continuing costs such as

water electricity and municipal taxes

4

COMPENSATION OF EMPLOYEES

Condition of service of Staff of TCF and Ombud will be subject to Public service laws

The core staff of the TCF will consists of:

- CEO [level 14/15 of Public Service]

- 3 Directors for Corp & Finance, Regulation, Professional Affairs & Conduct [ level 13]

- Senior Researcher

- 3 Law Researchers, 1 Administrative Officer, 2 Admin clerks, Messenger

Posts of staff of TCF will be retained for Ombud save for the position of Ombud which will be equivalent to salary of judge

Staffing norms for National & Regional Council will be determined by TCF and may use Public Service as baseline or existing norms applicable to legal profession

5

GOODS & SERVICES

Goods and Services will cater for the following:

- Security costs (security of facilities, personnel and information)

- Meetings of the TCF (Subsistence & Travelling, per diem =12 times a year)

- Meetings of Committees of TCF (Subsistence & Travelling, per diem = 24 times a year)

- Operational Costs (overheads – telephones, fax, stationary)

- Professional and expert services TCF will be subject to systems & internal controls of DOJ&CD

as DG is accounting officer For the Ombud systems will be developed over the three year

period in terms of the ear-marked funds dispensation

6

INDICATIVE MTEF BUDGET ALLOCATIONS:Transitional Consultative Council

Cost Item 2014/15

‘

2015/16 2016/17 Total MTEF cycle

Facilities and start-up costs

Compensation of Employees

Goods and services

Total:

5, 400, 000

6, 681, 019

7,117,306

19,198,325

2,,400,000

7, 015, 153

7, 327, 419

16,532,459

2,500,000

7,436,063

7, 544, 344

17, 480,407

10,300 ,000

21,132,235

21,989, 069

53,421,304

• Start-up costs will only be more for the first year of implementation and subsequent years will cater mainly for the lease

• TCF must be housed separately from the DOJ&CD to ensure functional independence

7

FACILITIES MANAGEMENT The accommodation needs of the Department has increased over the past

decade as more services are required to increase access to justice service to more citizens and the expansion of personnel establishments (court personnel, prosecutors and judicial officers)

Increased accommodation also increased the budgetary requirements for municipal rates and taxes.

Over the past five years the increases on building costs, office rental, water electricity and municipal taxes has on average increased with between 12 and 15 percent in real terms. The budget allocation has however increased with just more than 6 per cent over the past MTEF period thus putting further strain on the capital and office accommodation budget.

The current estimated shortfall (2011/12) inclusive of capital works and property management amounts to R559 million (Leases R99 million, Rates and Taxes R35 million and Capital works R425 million)

8

Facilities and Start-up costs

Item‘

2014/15

‘000

2015/16

‘000

2016/17

‘000

Lease

Tenant installation

Office furniture

IT and network installation

Security

Total:

1,600 000

4, 000 000

2,200 000

1,4 000 000

R1,100

10,300,000

1, 700 000

-

600,000

1, 100 000

R1,200

4,600, 000

R1, 800 000

-

500,000

1,300, 000

R1, 300

4,900,000

9

Compensation of employees

Item‘

2014/15 2015/16 2016/17

CEO

Corporate Services Dir

Proff Affairs & Conduct

Senior Researcher

3 Legal Researcher

Administration Officer

2 Admin clerk

3 Personal Assist

Messenger

Receptionist

Total:

1,136,910

771,306

771,506

771,506

1,486,809

290,585

379,065

758,131

157,840

157,840

6, 681,099

1,193,756

809 871

809,871

809,871

1,561,149

305,114

398,019

796,037

165,732

165,732

7, 015,153

1,265,381

858,464

858,464

858,464

1,654,818

323,421

421,900

843,799

175,676

175,676

7, 436,063

10

Goods and services

Item‘

2014/15 2015/16

‘000

2016/17

‘000

Meetings (Accommodation, SNT)

Stationary & Publications

Telephones

Allowances

Professional Services

Total

2, 000 000

2, 200 000

1,200, 000

1,800, 000

1,500 000

R1,100

2,600 400

-

-

-

0mbud

Office of the Ombud will use facilities Personnel expenditure of TCF to be absorbed into the

Personnel of Ombud with adaptation of remuneration of Ombud

The 3rd expenditure will form the 1st year baseline for the Ombud

12

INDICATIVE MTEF BUDGET ALLOCATIONS:Legal Services Ombud

Cost Item 2017/18 2018/19 2019/20 Total MTEF cycle

Facilities and start-up costs

Compensation of Employees

Goods and services

Total:

2,500, 0005, 400, 000

9,609,494 + 1,888,452

7,544,344

21,542,229

13

Compensation of employees

Item‘

2014/15 2015/16 2016/17

Ombud

CEO

Deputy CEO

Corporate Services Dir

Media Liaison Officer

Senior Researcher

3 Legal Researcher

Administration Officer

2 Admin clerk

4 Personal Assist

2 Legal Admin Off

Messenger

Receptionist

Total:

?

1,485,576

1,136,910

771,306

771,506

771,506

1,486,809

290,585

379,065

758,131

467,192

157,840

157,840

8, 633,867

?

1, 559,855

1,193,756

809 871

809,871

809,871

1,561,149

305,114

398,019

796,037

490,552

165,732

165,732

9, 065,560

?

1,653,446

1,265,381

858,464

858,464

858,464

1,654,818

323,421

421,900

843,799

519,985

175,676

175,676

9,609,494

EndQ&A