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
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