THURSDAY, 29 MAY 2003 __

          PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
                                ____

The Council met at 14:05.

The Deputy Chairperson took the Chair and requested members to observe a moment of silence for prayers or meditation.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS - see col 000.

      ECONOMIC GROWTH RATES REQUIRED FOR ALLEVIATION OF POVERTY

                         (Draft Resolution)

Dr E A CONROY: Thank you, Chairperson. I rise to move without notice:

That the Council-

(1) takes cognisance of the 2000 United Nations Millennium Summit’s resolution that poverty in the world must be halved by the year 2015; and

(2) expresses its concern that Africa south of the Sahara might not reach that target unless it reaches economic growth rates of between 7 and 8 percent per annum.

Motion agreed to in accordance with section 65 of the Constitution.

                INCREASED RELIANCE ON PORT FACILITIES

                         (Draft Resolution)

Dr P J C NEL: Thank you, Mr Chairperson. I move without notice:

That the Council-

(1) notes that South Africa relies heavily on its ports for the movement of exports and imports, as the country’s geographic location dictates that most goods move by sea;

(2) is aware that there has been a phenomenal growth in exports and imports by value and tonnage since 1994, placing pressure on all our ports, but especially on the container terminals, where there are many delays resulting, inter alia, in a loss of investment confidence and of income and in additional storage expenditure for exporters; and

(3) urgently requests the Minister of Public Enterprises to facilitate the expansion of the port facilities, especially at the container terminals and address the shortcomings with regard to operations and staff across all of the country’s ports.

Motion agreed to in accordance with section 65 of the Constitution.

       DEPARTMENT OF CORRECTIONAL SERVICES - PERSONNEL BACKLOG

                         (Draft Resolution)

Mr P A MATTHEE: Chairperson, I move without notice:

That the Council -

(1) takes note that -

   (a)  the Department of Correctional Services at present has a backlog
       of 5 402 personnel on its posts establishment;


   (b)  the majority of these positions are on the entry level but  that
       there are also shortages on promotional and senior levels;


   (c)  the cost to fund these shortages is estimated  at  approximately
       R534 million; and


   (d)  at this stage it is foreseen by  the  Minister  of  Correctional
       Services that, instead of decreasing, the shortage of  personnel
       will increase to 7 821 in the 2005/2006 financial year; and

(2) in the light of the overcrowding crisis in our prisons, which are at present overpopulated by 78 874 or 71,1%, with the resultant extremely negative effect thereof on the rehabilitation of prisoners and the fight against crime, requests The Presidency, the Minister of Finance and the Minister of Correctional Services to urgently give attention to this problem and requests the Minister of Correctional Services to report to the Council within three months on progress regarding this matter.

Motion agreed to in accordance with section 65 of the Constitution.

                            ASCENSION DAY

                         (Draft Resolution)

Mnr A E VAN NIEKERK: Mnr die Voorsitter, ek stel sonder kennisgewing voor:

Dat die Raad daarvan kennis neem dat vandag wêreldwyd deur Christene as Hemelvaartdag gevier word en dat dit saam met die geboorte, die kruisiging en die opstanding van Christus ‘n belangrike feesdag op die kalender en in die lewens van Christene is wat daarop dui dat die Verlosser leef en opgevaar het na die hemel. (Translation of Afrikaans draft resolution follows.)

[Mr A E VAN NIEKERK: Mr Chairperson, I move without notice:

That the Council notes that Christians worldwide are celebrating Ascension Day today which, together with the birth, the crucifixion and the resurrection of Christ, represents an important holy day on the calendar and in the lives of Christians and indicates that the Saviour lives and has ascended to heaven.]

Motion agreed to in accordance with section 65 of the Constitution.

                   PRECEDENCE TO ORDER OF THE DAY

                         (Draft Resolution)

The CHIEF WHIP OF THE COUNCIL: Hon Deputy Chairperson, thank you so much. May I move without notice: That Order No 1 under Further Business be considered after the disposal of Order No 5 on the Order Paper.

Motion agreed to in accordance with section 65 of the Constitution.

                         APPROPRIATION BILL

                           (Policy debate)

Vote No 33 - Transport:

The DEPUTY CHAIRPERSON OF COMMITTEES: Before I call the first speaker, may I say I am very happy to see Minister Dullah Omar with us in the House. [Applause.]

Members would have noticed that our Minister took ill some time back. That is why I’m saying we are happy to see him in the House. On behalf of the Presiding Officers of the NCOP and on behalf of the members of the Council, I wish you a speedy recovery, hon Minister, and say to you thanks to the Lord that He still gives you all the energy and power to be within our midst. We really appreciate that. Thank you very much. [Applause.] The ACTING MINISTER OF TRANSPORT (Mr J Radebe): Hon Chairperson, hon members of the NCOP and Minister Dullah Omar, I also want to join the Chairperson and hon members in wishing our Cabinet colleague a speedy recovery.

Chairperson, as we continue to face the challenges of improving our transport system in general, we constantly remind ourselves of a vision we set at the time of developing the White Paper on Transport Policy. Our vision to provide safe, reliable, effective and fully integrated transport operations and infrastructure is still as relevant today as it was in 1996.

On one hand, transport holds the key to economic growth in the country because without the means and capacity to move people and goods efficiently, we stand still as a nation. On the other hand, our social role is to provide for the transport needs of people on an affordable basis whilst we also address the gross distortions inherited from the apartheid government.

Today, I will confine my input to three critical areas of our work, namely road infrastructure, transport safety and public transport. Let me first begin with the road infrastructure. I am pleased to confirm, today, that Cabinet has approved a five-year road infrastructure strategy, which will prevent further deterioration of our road network.

Funds for the implementation of this strategy have already been projected for and are included in the current budget allocations under the Medium- Term Expenditure Framework. A great deal of work needs to be done over the next five years in rural community roads, routine maintenance, resealing and gravelling, rehabilitation and overheads. Provinces and local authorities will need to identify priority projects. I will shortly convene a special Minmec to discuss fast-tracking the planning process.

The focus today will be on provincial road infrastructure service delivery. Provinces face serious challenges in dealing with maintenance and rehabilitation backlogs. A balance has to be struck between the provision of resources for routine maintenance of the existing road network, the rehabilitation of poor roads and investment in the construction of new roads, to improve accessibility.

Allocation for construction and rehabilitation of roads across provinces fluctuate. However, there is a clear increase in allocations for maintenance and there has been a marked turnaround in spending on roads, particularly since the floods experience of 2001.

The recently completed Inter-Governmental Fiscal Review of 2003 shows that provinces account for the most spending on roads, and the provincial budgets will increase by 7,5%, from R4,7 billion in 2002-03 to R5,1 billion in 2003-04. They are also projected to increase further by 9,5% over the MTEF, reaching R6,2 billion in 2005-2006.

In 2002-03, the total provincial budget spending on the constructing and upgrading of roads amounted to R2,2 billion and, following a budgeted decline in spending to R1,9 billion in 2003-04, the expenditure is projected to rise to R2,5 billion in 2005-06.

Provinces have had varying degrees of success in delivery. The key constraint relates to the availability of funds. For example, in 2002-03 Limpopo required R318 million to maintain its roads and to prevent further damage, and R110 million was allocated in its budget, leaving a shortfall of R208 million. Western Cape indicated that only 14% of regravelling, 45% of resealing needs, 39% and 60% of the routine maintenance of gravel and surface road network respectively could be met with the 2002-03 budget.

Notwithstanding these budgetary constraints, most provinces were able to achieve commendable results in the areas of new road construction, maintenance and rehabilitation and development of community access roads through labour-intensive construction aimed at employment creation. The implementation, for example, of Zibambele in KwaZulu-Natal, Zivuseni in Gauteng and Vukuzakhe in Eastern Cape, which are labour-based construction programmes, are examples of key successes of community-based road programmes.

In the context of the integrated sustainable rural development and the urban renewal programmes, the department is supporting the implementation of projects in the following nodes: Chris Hani, Ukhahlamba, O R Tambo, Alfred Nzo, Thabo Mufutsanyana, Ugu, Umzinyathi, Zululand, Ukhanyukude, Sekhukhune, Botshabelo, Kgalagadi and Central Karoo as well as Ethekwini, Galeshewe, Alexandra and Khayelitsha.

The department is also working very closely with the Department of Provincial and Local Government in the process of consolidating the various municipal infrastructure grants, such as the Urban Transport Fund, the Consolidated Municipal Infrastructure Grant, the Community-Based Public Works Programme and others into one municipal infrastructure grant.

Pilot projects in the following district municipalities are under way: Sekhukhune, Botshabelo, Kgalagadi, Motheo, Thabo Mofutsanyana, Alfred Nzo, O R Tambo, Nelson Mandela Metropolitan and Ethekwini.

Let me now highlight one of the key challenges we are facing in public transport, which is that of the provision of passenger transport subsidies. As you are aware, due to the funding constraints related to public transport subsidies, the Department of Transport, in December 2001, introduced a moratorium on the further implementation of competitive tendering.

In December last year, Mincom decided that this moratorium should be lifted and that provinces should, without any further delay, pursue the implementation of competitive tendering. In order to facilitate this, Government is in the process of finalising the model tender document to be published in terms of the National Land Transport Transition Act of 2000.

In the targeting of subsidies, mobility in South Africa cannot be isolated from the history of the country and the detrimental effect that segregated planning has had on the travelling patterns of the majority of the people of this country and, eventually, on the availability of public transport.

The House may recall that due to the ever-increasing needs for passenger transport subsidies, an investigation was concluded towards the end of 2002, which focused on passenger profiles and the targeting of public transport subsidies. Targeting of subsidies is, however, a complex issue and there are various international best-practice models. The challenge that we are facing is to develop a model that serves Government’s social and economic imperatives as well as the interest of the public in general.

Now I turn to minibus taxis. In the light of recent media statements, I would like to assure the House that Government is ever committed to the recapitalisation programme and we’ll do everything in our power to address the differences that exist between Government and the taxi industry.

Although the tender for the new taxi vehicles and the related electronic management system, the EMS, is mainly driven by the Departments of Transport and Trade and Industry, provinces have a key role to play in the rollout of the programme. For example, provinces have been and continue to be responsible for the implementation of the key components of the taxi recap programme, such as the Be Legal Campaign, registration with the SA Revenue Service, conversion from taxi permits to operating licences, to mention but a few of the responsibilities. We are embarking upon this process in time in order to ensure maximum participation of operators in the taxi recapitalisation programme.

Due to the complexity of the processes required for the rollout of the taxi recap programme, there are many challenges still to be addressed. Measures have already been taken to facilitate the identification of gaps in the process, recommending measures to address those gaps and further assisting in monitoring the rollout of the programme.

On the commuter rail, the extension of the Khayelitsha commuter rail line has been on the cards for the last 20 years. This project has now become a reality and I’m pleased to inform the House that the department has managed to secure R140 million for the project. These funds should be adequate in order to proceed with the actual construction of the rail line, the provision of the rail infrastructure and the refurbishment of the rolling stock that will be required once the extension has been completed. It is expected that the construction of the rail extension will be completed by the end of December 2005.

I’m pleased, also, to inform this House of the progress that has been made with the upgrading of the Mabopane station. Last year, the House was informed that an amount of R15 million was set aside for the redevelopment of this particular station. Substantial progress has been made. The precinct development plan and master plan for this station have been completed. Currently, contractors have been appointed, mainly from the local community, to undertake rehabilitation of services such as storm-water systems, water reticulation and electricity. The physical construction of the project will be officially launched on 2 June, a few days from now.

On railway safety, we are committed towards ensuring the safety and security of passengers and goods on the railway transport system, addressing railway occurrences as well as the security of all passengers. I’m pleased to report that we’ll soon announce the names on the board of directors for the newly established railway safety regulator, which will regulate safety by setting standards in the railway transport system.

A lot of work has been done in laying the foundation for the new regulatory body and clear regulations and standards have been developed in consultation with the SA Bureau of Standards, the Department of Labour and other stakeholders in the industry.

Over the past year the National Department of Transport, the SA Rail Commuter Services and Metrorail have begun to develop a new two-pronged strategy of safety and security for the rail commuter system. The safety and security strategy has been deployed as a pilot project in the entire Western Cape metropolitan rail network since October 2002, with very positive results.

The outcome of this project will define the operational infrastructure and facility adequacy gaps in both financial and physical terms and will determine whether the current investment profile of the commuter rail system is to be realigned. I will inform the House of the outcome of the study as soon as the project is completed.

One of the fundamental issues that cuts across public transport and infrastructure development is that of transport planning. The rollout of the first phase of transport planning was embarked upon nationally in the 2002-03 financial year.

In order to address the transport planning capacity limitations at local and provincial spheres, the department is embarking on a training programme that will be rolled out in all the provinces around October this year. With regard to funding, an amount of R3 million was transferred to each of the provinces in the two previous financial years and a further R2 million has already been transferred in the current financial year.

As in the past, the Department of Transport also focused on the developmental nodes. Firstly, with regard to urban renewal, we are currently involved directly with three of the identified urban nodes, and delivery of public transport infrastructure is the focus in Alexandra, Inanda, Kwamashu and Khayelitsha. In Alexandra, a public transport interchange is to be developed together with the city of Johannesburg and it will be completed in the current financial year.

Various upgrading and provision of safe access to taxi facilities will be embarked upon in the Inanda-Kwamashu node. Considering the need to promote non-motorised transport, the department is also working very closely with the Sol Plaatjie municipality in the Northern Cape, to extend the bicycle paths in that area.

With regard to rural transport, the department has conducted strategic transport audits in all 13 of the integrated and sustainable rural development nodes, the findings of which will inform concrete actions that the department will facilitate through pilot projects. In addition, the department’s newly established infrastructure unit has prioritised the development of rural access infrastructure as part of its road infrastructure strategic framework.

The issue of road safety continues to receive priority attention in the department. I need not repeat the daily tragic loss of lives on our roads. The statistics that are continuously released by the department speak for themselves and we cannot allow this scourge to continue at current levels, as it is every South African’s right to travel safely on our roads.

The department, in collaboration with provinces and local government, is hard at work to turn around the current situation. We have assessed issues that require urgent attention and, through a consultative process involving various roleplayers and input provided by the various provinces, the following key interventions have been identified for development and implementation in the short to medium term: Integrated law enforcement and communication, which involves the development and implementation of a coordinated plan for traffic law enforcement and support services.

This seeks to eliminate fragmentation in law enforcement and the promotion of a cooperative, uniform and focused approach towards the undertaking of law enforcement across provincial boundaries. Conducting a forensic audit into road traffic accident statistics, leading to the establishment of the national road traffic accident bureau.

The current fragmented responsibilities across many authorities, together with insufficient resources, have led to a dramatic deterioration of the quality of formal accident information over the last three years. The objective of the project is to undertake a complete and detailed forensic investigation into the current system of recording, capturing, analysing and transferring of accident information, and to this end a reliable system is being developed and will soon be implemented.

Hazardous locations were identified in provinces and there is currently ongoing work to improve safety in those locations. For example, notable improvements have been made in four locations in Gauteng, five in North West and ten in the Western Cape. Furthermore, a pedestrian visibility project has been set up in order to improve visibility of vulnerable pedestrians in and around high-risk and accident-prone areas.

Establishing community-based structures that will coordinate, educate, create awareness and encourage community participation in road safety programmes and, lastly, amending the road traffic legislation in order to give effect to some of the principal strategies contained in the Road to Safety Strategy.

All of the above, all these interventions, are aimed at the elimination of fragmentation between the various authorities and improve coordination of efforts amongst functional areas in road traffic, the optimisation of the utilisation of scarce resources, introduction of the use of modern technology as well as enhanced implementation of some of the aims and objectives of the Road to Safety Strategy 2001-2005.

In conclusion, I wish to restate that transport plays a critical role in addressing social needs and contributing towards growth in the economy. More than any other sector, the transport sector is divided into three spheres of Government and, as a result, requires the highest level of cooperation. This cooperation is particularly critical for the current implementation of infrastructure projects, road safety interventions and in the public transport provision.

These, therefore, compel all of us to share a common planning vision, and I want to thank the NCOP as well as my provincial colleagues for their continuous support and contribution in shaping this vision as well as the achievement of the objectives that we have set. We are still faced, of course, with massive challenges ahead and we look forward to your continued support as we address the challenges in the days ahead. Thank you. [Applause.]

The DEPUTY CHAIRPERSON OF COMMITTEES: Thank you, hon Minister. Can I ask the members to close their cellphones, please? Please check whether your cellphone is closed, before I proceed. I want to make sure. If you have got your cellphone on, just close it.

Mr V V Z WINDVOЁL: Thank you, Deputy Chairperson. Let me first confirm that my cellphone is closed. And, let me also say upfront that today - I’ll be brief, Deputy Chairperson - it was with great shock that, as acting chairperson of our provincial ANC caucus of Mpumalanga, I got the news of the untimely passing away of Comrade Ephraim Mogale, who was a gallant freedom fighter; one of the founders and also the first president of Cosas, the Congress of South African Students, which also played a great role in the liberation of this country.

Chairperson, let me also salute the good work that has been done by Comrade Dullah Omar, our hon Minister of Transport, who also played a very leading role - and also suffered - through his involvement in the struggle to liberate his country. He played a very great role as Minister of Justice, which also saw the establishment of the TRC that played a role in healing the wounds of South Africa and contributed towards reconciliation. I must also, Chairperson, thank - as the acting chairperson - the hon acting Minister, Comrade Jeff Radebe, for his role and his commitment to assist in the department. I know, hon Minister, you are overloaded, but you’ll not be issued a traffic fine, because that overload is for the good cause of the country. I must pledge the support of the committee in assisting you in the moving forward of your work.

Today, as we stand here, transport serves as an effective catalyst of change in South Africa; as an effective, integral part of pushing back the frontiers of poverty. Today we stand in our second term of our democratic mandate of delivering an integrated and sustainable system of transport, and we stand tall with the successes we have made in the short way we have travelled thus far.

Let me also say, Deputy Chairperson, that, notwithstanding the international and continental role the Department of Transport is playing, we are facing certain challenges which we have to overcome, but most of them will have to redress the imbalances of the past. And in the words of the former President, Comrade Nelson Mandela, he says that no society emerging from the grand disaster of the apartheid system could avoid clearing the blemishes of its past. If we are able today to speak proudly of the rainbow nation, it is partly because the words set us a moral example, which we dared to follow. And the first founding stone of our new country is national reconciliation and national unity. The fact that it has settled its mortar needs no advertising. We do face major challenges, but none are as daunting as those we have already surmounted.

We must say that we are moving, bit by bit, to overcome those challenges, because as we speak today we have people who have travelled hundreds of kilometres from the KwaMhlanga, eNkangala area, going to their workplaces around Pretoria, where the Department of Transport is spending millions and millions to subsidise those people for their public transport to go there. If it was not for the racially based spacial planning of the previous regime, we could be utilising those funds for other valuable exercises.

I must also say that as we are here today, this department plays a very significant role in the economic growth of the country. Hence, we say that a good transport system is necessary for efficient functioning of the economy. It creates economic opportunities and facilitates movement of people, resources and output to industries and markets, and enables people to access social services. We must say that the labour-based road construction and maintenance programmes give a lot of job opportunities to our people. It plays a very significant role in developing, and also assisting to empower, our black people in a way that most of the SMMEs, which are involved in the construction and maintenance of our roads throughout the country, are now becoming economically more viable, thus creating a lot of job opportunities.

Chairperson, may I just reflect a bit on the taxi recapitalisation, which, as a committee, we must say that we feel that we need to put some more acceleration towards a conclusion of this noble programme. We are aware that it has taken some time, we are aware that there have been challenges where there was some resistance from some quarters of the taxi industry. But, we know that the department is doing all it can in its efforts to see the realisation of this programme taking place. I must also condemn those taxi drivers who don’t take care for the lives of the commuters.

We are of the view that as much as we have the demeriting points for ordinary driver’s licences - where we accumulate points in terms of how many traffic offences one has committed, leading to a situation where one’s licence can be suspended, or even cancelled - we are saying the department should look into a situation where in the PDPs, the professional driving permits, we could also have points demerited so that those reckless drivers, like those who are found playing this game called chicken - which also led to the death of 13 or more children - should not take the lives of people as simply as the chicken style that they are playing. We believe that such drivers do not belong on our roads.

We must also comment on the issue of the new card licences. We appreciate the stand that the department has taken in terms of acknowledging the administrative problems relating to the licences of drivers from the TBVC - areas the former homelands, which were so-called independent homelands - because their records cannot be found in the central database of the department. We are looking at a situation where the department should pronounce itself about what is going to happen at the end of the day with these drivers who have such licences. I know in the House that the hon Dlulane is one of those licensed drivers whose records are still sort of missing in the database because it was part of the TBVC areas from the Transkei or Ciskei.

Hon Deputy Chairperson, we must also speak about the public transport safety. The department should also look into the issue of the emergency exits, because there is the view that some of the deaths which we experienced in the country could have been avoided. In particular the public transport system, whether it be taxis, buses or trains, if they have a quick way where people can exit after they have overturned or were involved in a collision, and so on. We believe this could be efficiently done in conjunction, or in consultation, with the South African Bureau of Standards, so that we have that as a standard issue. Currently, it would seem that the emergency exits that are in the buses cannot be quickly kicked or pushed out in cases of accidents; that is also assumed in the many deaths when the bus went into the dam in the Free State.

We are also thankful for the statement that the acting Minister pronounced in terms of the railway safety regulator. Very soon the board will be up and running, and we are looking forward to having a very safe environment in terms of the trains. We are also looking forward to the progress report from the task team - which involved the Department of Safety and Security - that was looking into a situation where we will have some form of policing, or people responsible for safety and security on the trains. I must strongly condemn our citizens who are not responsible, to the extent that they involve themselves in vandalising the trains; they steal windows, they steal cables, and at times that also contributes to the train accidents. One could also make reference to some of the commuters who thought they’re justified, because the train is late, to burn down the Pretoria station. Actually, as we speak of nation-building, some of these criminal events do not contribute to developing our country as such.

I must also - towards concluding my speech, hon Deputy Chairperson - comment on the reclassification of the roads, because at times there is the problem that a significant component of deaths on the roads are pedestrians. We have a situation where some of the roads are classified as district roads, as provincial roads, and they go through some of our villages. At times the local municipalities - when we do our constituency work we engage and interact with them - say that they do not have the powers or authority to put down speed humps, which would make those roads calming zones, or slow down the speed of the vehicles on those roads.

I must also commend the department for the good work that it is doing, because the Department of Transport is not solely looking into the roads and vehicle issues, it also looks in terms of aviation. As we stand here today, South Africa is declared a … [Time expired.] Thank you. Dean T S FARISANI (Limpopo): [Inaudible.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J MAHLANGU): You don’t have to, dean. I’ve found those seats to be very uncomfortable, I must tell you. Anyway, you can proceed.

Dean T S FARISANI: Thank you, very much. We take this opportunity to thank our beloved national Minister, Comrade Dullar Omar, for his leadership as well as the colleague who is acting on his behalf, Comrade Jeff Radebe. They are like political twin brothers. Their leadership is good for us in the transport arena in South Africa.

We come from Limpopo, the province of peace. According to Statistics SA, our growth rate to the end of 2001 was 6,3%, compared to the national average of 2,3%. What is our secret?

The Department of Transport in Limpopo has contributed to that secret and to that success. We have started to engage in youth development projects, including training the youth on project management. We support SMME development and have also started seriously to democratise the bus industry so that it can contribute to the economic growth of our country.

The bicycle project has unfolded in a very encouraging way, and in this financial year we intend to roll over the programme to all the districts, to the extent that we might have two per district.

The same applies to the popular donkey-cart project. I shall be launching this project in the next few weeks and by the end of the financial year we hope to have launched over 400 of these donkey carts, which we are marking for visibility to enhance road safety.

In the area of civil aviation, we are happy to announce marked progress towards the materialisation of the dream to use Hoedspruit as an international point of entry. We are in the process of devolving P R Mphephu and Giyani Airports to the relevant areas.

Concerning inland water policy, draft regulations are being finalised. Concerning the taxi industry, taxi-rank facilities and ownership status has been completed, and an inventory of taxi ranks in the province is in place. The route-verification process has been completed.

We take the issue of road safety seriously. The strategic programme for road safety, which was adopted by the national department, is being implemented vigorously in Limpopo. Needless to say, our soldiers continue to get their uniforms so that they can do their job properly, including equipment for speed measuring, for instance.

Our accident investigation unit and inspectorate are in place. We have implemented special operations for safety at provincial and district levels. We believe that we are by far the leading province in the war against corruption in the transport sector.

On issues of National Pedestrian Safety Strategy, we have succeeded in provincialising and localising the strategies so that they can benefit people directly on the ground. This is done partly through identifying pedestrian hazardous locations. I hope this begins to explain to you why we have continued to bring down the level of accidents in the province.

Driver-of-the-year competitions were held. Safety-in-traffic education programmes and child-in-traffic programmes are the order of the day and are empowering our people on the ground. Four driver-education seminars have been conducted and have assisted in improving what we do.

We conclude in two ways, by sharing with you the priorities for the current financial year. We have just finalised the decentralisation of the management of the government fleet to different departments. Government garages have been outsourced and only one will remain per district.

We will continue to facilitate economic growth through transport, especially in our areas of spatial development initiatives, and to promote infrastructure. We are already part of the great plans in the Dilokong Transport Plan, which aims to promote mining through mobility in that area.

For the first time, the railway system is being discussed very seriously in Limpopo, and there will be new plans during the course of this year. Don’t be surprised, we are also thinking of attracting the Blue Train into Polokwane and beyond, up to Hoedspruit. Some are thinking that this dream is too big for Limpopo, but nothing is unreachable in the province of peace.

HON MEMBERS: Hear! Hear!

Dean T S FARISANI: The Beit Bridge border post will receive a multipurpose centre. Plans are in place. It will be a pleasure to go through our province to our neighbouring countries in the north.

We do have a few challenges, what you’ll call budget shortfalls. Upgrading of vehicle testing stations is still a challenge. We don’t have enough money. Establishment of additional traffic stations, additional equipment, upgrading of traffic control centres, funding of special operations, control of overloading and, in general, road safety programmes, remain a very huge challenge.

Needless to say, we must conclude by prayer. I hold two ministries, one of religion and one of transport. [Interjections.] God comes first. We are praying, in support of the Minister, that the recapitalisation project will give birth to joy, happiness and celebration for the people of South Africa, including the taxi industry, and that the Road Accident Fund will become something different to what it had come to be known in the recent past. May God bless you. [Applause.]

Mr K A SINCLAIR (Northern Cape): Hon Chairperson, I came to this honourable and august House today to speak on behalf of the people of the Northern Cape. I came, firstly, to say thank you and, secondly, to ask, or better still, to plead.

I want to say thank you for the gift of R160 million for the building of what is now our new home, the new provincial legislature building in Kimberley. This was done after our hon Premier, various MECs and officials convinced National Treasury that it was indeed necessary that we have a building from which to do our business - a home for all. Thank you for that.

The main purpose, however, of my presence today as chairperson of this portfolio committee is to once again reiterate our plea as a province for more funding, especially regarding infrastructure, with specific emphasis on our roads. But, as I do that, it is important to understand our province, the Northern Cape.

The Northern Cape is geographically very big. Our province consists of 30% of the area of South Africa. It is closer by road to Durban from Kimberley than it is to Port Nolloth, our most western town, from Kimberley. Our province has got 22 000km gravel roads and 5 400km tarred roads. These roads are the backbone of our economy, built on mining, agriculture and tourism. These are the roads that move sheep, cattle, tons of mealies and wheat, tons of export grapes and tons of salt a year.

These are also the roads that bring children to school, that unite churchgoers and take government officials to the people. Frankly, these are also the roads that take politicians to the people to keep them accountable. These roads are the veins of our province.

Unfortunately, many of these roads, especially the gravel roads, are deteriorating at an alarming rate. According to hon John Block, the MEC for this portfolio, speaking during the budget vote debate on the roads on our province, this deterioration will result in an asset loss of R100 million during the next financial year.

The ideal position today would have been to have a holistic picture of the needs assessment of the roads in our province. The Department of Transport, Roads and Public Works in our province has completed this roads needs assessment study. The report highlights the deteriorating condition of our provincial road network.

The key findings include: One, that the condition of the overall paved road network in the Northern Cape has deteriorated from 84% in good condition in ‘91, to 69% in 2002. This will cost the road user R20 million in excess user costs this year; two, the asset value of the network is currently R5 billion, with a possible maximum asset value of R7 billion, which indicates a loss of R2 billion already; three, according to this assessment study a total amount of R1,17 billion is necessary to get rid of this backlog.

I will, however, just focus on two issues today. Firstly, our gravel roads. The reality is that half of the province’s gravel roads are graded less than twice a year by the district municipality on an agency basis. The reason for that is that the allocation for roads is currently two thirds of R130 million - the amount budgeted during the 1996-97 financial year. Inflation and consequent price increases in diesel, parts and labour costs are therefore not taken into account.

If we want to make comparisons, Namibia must certainly be the most relevant country. Circumstances regarding vastness, climate, water scarcity and soil types are very similar. The Namibian government allocates R8 141 per year per kilometre of gravel road. The Northern Cape’s allocation per year is R1 800 per kilometre. On a purely region-to-region basis, Namibia thus spends more than three times what we spend as a province.

Regarding the division by the FFC, we admit that the province is getting an equitable share. I want to, however, say that in terms of the facts highlighted earlier, I really do not know how fair this division is. As a provincial legislature there is consensus that we must improve our own revenue-collection mechanism.

In terms of an announcement made by the hon MEC for Finance, a percentage of revenue collected by transport would be ploughed back into the department. An estimation of R6 million to R8 million per year would be reasonable. What I therefore want to put on the table, hon Minister, is a request for additional assistance from national Government for the gravel roads of the Northern Cape. An additional amount of R30 million per year would make it possible for the district municipalities to improve their efficiency.

The second issue is one of upgrading some gravel roads to tarred roads. Although some major road projects are underway, it is important to highlight two roads. The first one is the road between Springbok and Kommagas in Namaqualand, which also serves the diamond mining area at Kleinsee. The total cost would have been R54 million, whilst the province had committed R40 million only. Unfortunately, the company mining at Kleinsee has offered no help in financing this project. The shortfall of R14 million meant that the department had to leave out 15 kilometres of the 60 kilometres originally planned for surfacing. We therefore request the national Government to assist the province with the shortfall to make it possible to complete the road as was envisaged.

The second road that I want to bring to your attention, hon Minister, is a road around which the people on the north western part of our province have on many occasions raised concern. This is the road from Britstown via Vosburg to Carnarvon. Many serious and fatal accidents have already occurred on this road.

The advantages of tarring this road are numerous. If completed, it will be an alternative route to the N1 to Cape Town and it will open up the tourist potential of the Karoo, Hantam and Namaqua areas. I therefore want to propose that the national department registers this road as a national priority through a multiyear commitment and a commitment from the Northern Cape provincial government to settle this long outstanding request.

Hon Chairperson and hon Minister, the Northern Cape is a province at work. Despite numerous challenges and shortfalls, the Committee on Roads, Transport and Public Works wants to assure you that the department stretches every rand to the benefit of our people in the province. We however urge you to respond to our requests and pleas. I thank you. [Applause.]

Mr M A SULLIMAN: Thank you, Chairperson. Chairperson, hon Minister, hon Acting Minister I am also from the Northern Cape. What I would like to mention here is that I am from a town called De Aar and Noupoort is not very far from De Aar; and as we know, De Aar was the second biggest railway junction in South Africa. A lot of people worked for the South African Railways and the economy was really strong. But what happens nowadays is that if one goes to De Aar and looks at the station, it is an eye sore to look at. We need to pay attention to that particular area over there. In Noupoort itself, the unemployment rate is about 80%. People find it extremely difficult to make ends meet over there.

‘n Paar weke gelede was daar ‘n tragiese ongeluk by die Saulspoortdam waarin 49 mense van die Noord-Kaap verdrink het en hul families groot verliese gely het. Dit het my laat dink aan die nooduitgange van busse, sowel as taxi’s. Hierdie is ‘n ernstige saak wat deur ons en die Departement self aangespreek sal moet word. ‘n Mens kan nie verstaan dat ons busdienste in die land het vir jare al, maar ons kon nooit hierdie skuiwergat raaksien nie - dat daar net ‘n plakkertjie op ‘n venster is wat sê ``nooduitgang’’, maar in werklikheid is dit net die plakker op die venster.

Ek wil van hierdie geleentheid gebruik maak om die Noord-Kaapse regering te bedank vir die miljoen rand wat hulle beskikbaar gestel het vir daardie mense. (Translation of Afrikaans paragraphs follows.)

[A few weeks ago there was a tragic accident at the Saulspoort Dam in which 49 people from the Northern Cape drowned and their families experienced great losses. This reminded me of the exits on buses, as well as those of taxis. This is a very serious matter that should be addressed by us and the department. One cannot understand that since we have had bus services in this country for many years we have not noticed this loophole - that there is only a sticker on the window that indicates ``Exit’’, but in reality this is only a sticker on a window.

I would like to use this opportunity to thank the Government of the Northern Cape for the R1 million that they have made available for those people.]

Comrade Windvoël touched on the matter of the classification of roads. I think this is a serious issue because municipalities are maintaining roads, provinces are maintaining roads and national Government is as well. We need to relook this particular issue because there is not even a single province that can really maintain their roads sufficiently. The previous speaker, Mr Sinclair, indicated the position in the Northern Cape. That is true. But what we are doing in our province is to try and use whatever we can and we can only use about 50% of our budget. I think it would be an ideal situation if we can declare more of these roads national roads. This will assist us a great deal in our provinces.

Regarding ID card driver’s licences, I know that many people were reluctant to renew their driver’s licences. We have taken a stance in the Northern Cape to say that this was the deadline.

As jy nie jou lisensie hernieu nie, gaan jy gevang word. [If you do not renew your licence you will be caught.]

And we intend putting up road blocks to make sure that whoever is driving a car has a valid driver’s licence. We cannot afford the number of accidents that we are having in our province.

The Minister mentioned that he will be having a Minmec very soon, where they are going to discuss the five-year road strategy. Hon Minister, I want you to pay special attention to the Northern Cape. If you look at the vastness of our province, it is in actual fact costing more money to deliver services there. I know for a fact that only 850 000 people live in that particular province, but to put it in geographical terms, I do not want to use the term 30%; but one third of South Africa falls under the Northern Cape. It is an enormous task to deliver services in our province.

On the Road Accident Fund, it is so that the fund finds itself in difficulties at times. A number of fraud cases were reported. Lawyers who were not honest and loyal submitted false claims. I want us as the legislature and as our department to come up with special plans and strategies to curb these kinds of fraudulent activities.

Ons kan nie bekostig dat daardie geld so misbruik word deur oneerlike mense in die land nie. [We cannot afford to have money misappropriated by dishonest people in our country.]

Chairperson, my acting chair alluded to the recap programme. We think it is very important for us to get this particular programme off the ground. There is also an understanding, and we know that the Department of Transport and of Trade and Industry are working hand in glove on this particular matter. We foresee a situation whereby an impression is being created that Government is holding that process back, which is not true. I would strongly recommend to the hon Minister that he has a meeting with Santaga and all the relevant stakeholders to clarify this matter. That will be to our advantage because we know there are certain obstacles.

With these few words I want to thank the hon Minister, Acting Minister and the Minister present here today. We wish them well for the year to come.

Mr S M A MALEBO (Free State): Dit is plesierig om my buurman van die Noord- Kaap op te volg. [It is fun to speak after my neighbour from the Northern Cape.]

I have a problem with my voice as a result of illness and I hope I will be audible. I also want to express my appreciation that the Minister has indeed kept the home fires burning whilst Minister Omar is still recuperating. Acting Minister, your leadership has indeed been very inspiring. It would be correct to say that you have ensured that the departmental machinery is fully oiled to perform at its peak level, given the challenges of the time. It is also my wish that Minister Omar recovers speedily. It was exciting and indeed uplifting to have seen him on television the other day. It is even more inspiring to see him amongst us here. I am pleased to see that he is making such remarkable progress. You are in our prayers and in our hearts and we are looking forward to you joining us fully.

From the Free State we return to this august House, inspired and confident that despite the shortcomings of the first nine years of our democratic order, we shall see a better life for our people. This was not just an election promise but this is a commitment. We have no choice but to deliver on it. We have no choice.

We are confident because in the past nine years we learned from our weaknesses, which resulted in rollovers and the nonexecution of projects on time. We have acquired experience of how to deliver projects that impact directly on the lives of our people by executing this on time and within the budget of the allocated resources and having quality products and projects.

This experience has enabled us to now package projects that are related and complement one another, that can procure jobs, reduce poverty and grow the economy. Projects that achieve these kinds of developmental objectives are those that are planned in an integrated manner and complements one another, offering a basket of services where there were no services before or enhancing the quality of existing services. This is what we call integrated development in action, led by roads infrastructure. Where roads lead, development follows.

When we see this kind of development, we know that our dream of a better life is and was never an empty promise. The achievements of the previous financial year and the preceding years have indeed laid a solid foundation for the better life we have strived for. The new financial year’s budget solidifies this foundation for the people’s contract for a developed Free State and South Africa. Therefore, this foundation, as represented in the record of what was achieved, reflects the intentions of 1912 and the dreams of 1955 at Kliptown.

A quick overview of the previous financial year will indicate that we are finally beginning to address the backlog of road maintenance and of our current needs, as mentioned in the Minister’s media address.

Major road rehabilitation of roads was done. Just a quick mention of a few: The Bothaville-Orkney road to facilitate the agricultural produce to reach markets; the S1544 in QwaQwa to improve access for the rural poor to social amenities; the resealing of the Heilbron district and the resealing of the Bultfontein-Wesselsbron road.

We have also noted the gravelling of several roads in the Southern Free State area, as well as in the north Kroonstad area. The Bethlehem area will be done in the new financial year. The Jammersdrift Bridge was completed, so enhancing the access of our people in the Southeastern Free State to markets and to social services in the area.

We do not wish to go through the whole list but we do wish to mention a few. All roads that were transferred to SANRAL will be maintained as from July this year by the said body. Their total rehabilitation will be done once studies have been concluded on the future traffic volumes on these roads. These are the W5,6,8 and R30.

At the height of our road-building strategy and provision, the Government Garage section for road building will be restructured so that it becomes the backbone of our road provisioning and maintenance in the province. It will be done so that the province, the local and district municipalities can benefit from this restructuring. The strategy is for municipalities to restructure for the betterment of their street network whilst the province will utilise it for providing it with provincial roads. This facility and all equipment will from this year be available to all municipalities and districts, but this will come at a cost. All of us will pay for the services that we get from this. At the same time, all the expertise in this road-building section, engineers, road superintendents and so on, will also be available to the municipalities, especially those that are unable to buy new road-building equipment and unable to appoint expertise in the form of engineers, as mentioned.

Each district’s road-building centre, with its engineers, will be available to municipalities, as mentioned. This is about sharing resources and supporting one another in our endeavour to deliver on our commitment. At the heart of our strategy to ensure that our roads are better and safe are the equipment and resources, the two most important and expensive components in road provisioning and maintenance. We still need an extra R20million to get all our equipment ready for this major task. Nevertheless, this year we would see an increase in the number of toll roads in the province. The new one will be built south of Kroonstad and north of Bloemfontein and another one is likely to be erected on the R30.

With regard to transport, an intermodel ranking facility is being set up at Mangaung. This will be done in partnership with the SA Commuter Rail Corporation and the Mangaung Municipality. Once completed, this will change the face of the Bloemfontein CBD. This is an example of an inner-city rejuvenation. Business must now follow by investing. We have, therefore, with the first increase of our road budget been able to reduce road maintenance backlogs and roads usually regarded as poor have decreased by 2%, while roads regarded as very poor have decreased by 4%. This gives us a total reduction of 6%.

With the new allocation I can confidently say that next year we will record a reduction of another 10%. This, together with other construction-related work, has resulted in improved economic performance in our province. With our new budget of R761 495 for this current financial year, we hope to announce even better results.

Chairperson, last month on 1 May we witnessed an accident that is beyond description. A bus transporting workers plunged into a dam.

Agb lid, dit is nie 49 mense nie, maar wel 51 mense wat daar verdrink het. [Hon member, it is not 49, but in fact 51 people who drowned there.]

This was after a very promising campaign for road safety. We await the results of the investigation so that we can improve where we failed and enhance our efforts where we performed well.

In conclusion, a good example of what we can do is the development of an interchange at Sasolburg. This is a project that will cost R30 million. However, the immediate spin-off of this project will result in the following: An immediate investment by the private sector of R200 million; the facilitation of the process of infilling, which will assist with the objective of integration of communities or anti-apartheid planning of residential areas; increased trade with neighbouring provinces, towns and countries, and it will also improve access to new employment opportunities for the locals.

Development where it is led by road infrastructure is always followed by investment that is sustainable with a basket of services. [Time expired.]

Mr S PASHA (Mpumalanga): Thank you Chairperson. The people have spoken, the provinces did speak. Change must indeed go on at a faster pace. The policy budget speech presentation here today is a clear and real indication of how committed the ANC-led Government is to pushing back the frontiers of poverty and bettering the lives of the people, particularly the rural masses of our country. The province upfront wish to welcome the five-year road infrastructure strategy as spelt out by the hon acting Minister.

The province of the ever-rising sun, Mpumalanga, has in the past, and now, ensured that the budget appropriated is indeed in all respects in line with our vision of making public transport the real pride of our nation.

The province has during the year under review delivered on its goal of providing significant policies and legislation to guide transport planning in the province. Worth mentioning here is the Land Transport Policy Framework, Mpumalanga Provincial Transport Policy and soon to be tabled Mpumalanga Transport Bill and Public Transport Regulations.

Our commitment to providing quality public transport to our people cannot be overemphasised, particularly to those in extreme rural areas of the province. We have thus began with the implementation of the Bus Contract System after we experienced some delays. Design and compilation of provincial bus contracts, with the aim of including black economic empowerment strategies and also improving reliability, have started and are progressing well.

The bus commuter subsidy grant of R170 million received during the last financial year, though not enough, has indeed assisted the province. This grant is an allocation to passenger operation services covering most of the rural communities of our province. We are thankful to those operators who, in line with their social responsibility have built schools and continue to transport pensioners to paypoints free of charge.

Democratisation of the taxi industry has progressed well in the province. There have in the past been a few exceptions where disputes occurred. However, the department managed to deal with those accordingly. A report at hand now is that the first fleet of new taxi vehicles will soon be on the road. We just hope and we are eagerly waiting for this development. I will surely be second to ride on those taxi vehicles after yourself.

The province is presently engaged in a study of taxi cooperatives with the idea of resuscitating them. Through taxi cooperatives, not only will we address black economic empowerment, but also the creation of more job opportunities in the taxi industry.

Turning back to Shova Kalula, and I wish to invite my colleagues hon VV to China, to go and experience himself what Shova Kalula is. You must go to China. This project, as reported before, is progressing well in the province. The province will, with the R800 000 grant to be allocated pending submissions of a business plan, roll out the second phase of the project in the province. It is our intention, funds permitting, that the project reaches all three districts of our province. The province has in the previous and current year ensured that the budget we spend is geared towards uplifting the rural masses without neglecting the urban areas.

Amounts of R466 836 000 and R53 177 000 respectively will be spent on roads and transport during this financial year.

Three major tourist roads, namely the White River to Hazy View road, for those who know the Kruger National Park, the Middleburg to Bethal road and the Bethal to Hendrina Road, was constructed in the past year and many more are being designed and planned.

With the allocated amount, the province will continue work on the Moloto Road, which is notorious as a killer, and the construction of the Driefontein road, both in deep rural areas of our province.

The Karino-Plaston Road, leading to the newly constructed Kruger Mpumalanga Airport, will also be completed this financial year. And, Baba Farisani, I want to assure you that this airport poses no threat to the North West Province. Rest assured.

We have taken a conscious decision to expand both roads and the transport infrastructure network. In so doing, we will also ensure that small and emerging contractors access the opportunities brought about by government projects. We have ensured that women and youth will also benefit from this project. The department is at work to simplify tender documents in order to make them more user-friendly for emerging contractors.

Traffic safety and control in the province is resident in the Department of Local Government, Traffic Safety and Traffic Control.

Overloading, particularly by trucks, is costing the province and municipalities a fortune in road repairs. The department has, during the past year, in an attempt to protect the road infrastructure, built several weight bridges in many parts of our province. To date 188 000 vehicles have been weighed, amounting to fines totalling R20 million. The province will during this financial year also upgrade weight bridges to alternate routes to the N4, because as we build weight bridges at the N4, most of the trucks coming from Gauteng and Northern Province divert to our provincial roads. We have taken a decision to ensure that we upgrade weight bridges to these alternate roads.

Mpumalanga is a province at work. We have decided to be more aggressive on corruption. To date 364 licences have been cancelled.

KwaMhlanga testing station has been temporarily closed and the province is working closely with Business Against Crime to combat the scourge of corruption. We are determined to be the victors.

In conclusion, let me, on behalf of the Mpumalanga province, thank the Ministry of Transport for the continued support they have given and continue to give the province. To Comrade Dullah Omar, in absentia now, we wish you all the best and success in life.

To hon Comrade Jeff Radebe, we say keep up the good work. The province will always be ready to implement all the plans and strategies aimed at bettering the people’s lives. Together we will make public transport the pride of our nation.

Ke ya leboha. Baie dankie. [Thank you very much.]

Mr N M RAJU: Thank you, Chairperson. Hon Acting Minister, hon special delegates, hon colleagues, it is accepted that in any country transport is a necessity, whether by road, rail, sea or air. But in the new democratic South Africa, public transport is almost a basic need, just like food, clothing or shelter. We all know that during the dark era of apartheid, very little consideration was given to the commuter needs of the vast majority of our people.

The Group Areas Act had created black ghettoes and racial ethnic enclaves on the periphery of urban residential and industrial areas.

With the advent of democracy, the free movement of people to and from work, to go shopping, to visit clinics and hospitals, to go to school or universities, unleashed a new sense of urgency for the Government to address the needs of commuters in a holistic fashion. It was not an easy task, as former Minister of Transport, Mr Mac Maharaj had conceded that:

Changing attitudes is a long-term campaign and we will face a grim and daunting task to reduce human carnage on our roads.

Under Minister Dullah Omar’s stewardship, the Arrive Alive Awareness Campaign took on a higher profile, but unfortunately the carnage on our highways and byways continues unabated.

Yes, we acknowledge that the authorities make strenuous efforts, especially during the peak Easter and Christmas periods to stall the high accident rates. But are we succeeding? What is it that is not being done to minimise accidents and fatalities? Have we seen an appreciable change in the mindset of drivers and the attitude of motorists, which is paramount to whatever solutions the ministry may devise?

We throw up our hands in agonising despair everytime we hear of another accident resulting in fatalities. We think of the bus driving into a dam in the Free State recently, resulting in over 50 deaths! We think of the minibus colliding on the South Coast of KwaZulu-Natal recently, transporting school children from school. Again fatalities, loss of innocent lives of our children and there are many more similar accidents resulting in fatalities and casualties. The costs incurred, not only physical losses but losses to the state and the economy, are indeed inestimable.

We remain optimistic that the conversion of driver’s licences into ID-card- type licenses will help to weed out the chaff from the grain. The chaff is the hundreds of ill-gotten licences, as alluded to by my hon friend from Mpumalanga, the Acting Chairperson of the Select Committee on Public Services.

However, I must compliment the authorities in my province, for instance, who started holding road blocks immediately after the deadline had come and gone. And I have seen many drivers being booked for still using old licences and other misdemeanours.

The DA calls for a sustained assault on and apprehending of offenders in this respect. Further in my province, the Department of Transport is on the hunt for all miscreant drivers and it has put into place a telephone hotline, called the impimpa hotline, to phone and report any misdemeanours, any breaking of traffic laws and road rules. It is a kind of whistle-blowing. In fact I would like to say that the number plate of the Department of Transport in my province is ZTOO, zero tolerance, no, no.

Just yesterday, the Select Committee on Public Services listened to a briefing by the South African National Roads Agency on the National Road Network. Interesting information was supplied to the committee on its management cycle, budget procedure, expenditure details, and so on. There was some information on poverty alleviation allocation and expenditure. In the summary provided for the period 2001 to 2004, an amount of R203 185 762 was set as an … [Time expired.]

Mr M I KLAAS (Gauteng): Chairperson, hon Minister and hon members, since the ANC came into power almost a decade ago, we pledged key conditions of prosperity and a better future for our people. We set out a clear agenda and articulated strategic priorities, which are economic growth, development, employment creation and infrastructure, quality service delivery and good governance.

Our objectives were to touch the souls of our citizens and a sense of humanity and hope in all their places of residence and of work. To date, in all places and areas identified, we have already put in place structures and plans that will ensure the acceleration of our goal of a better life for all. To make headway for all, I have mentioned, we have to deal with a long list of brutal realities of apartheid, which include, amongst others, mismanagement of the economy, debt burden, destruction of our human resources and a dysfunctional civil service and the marginalisation of the majority from mainstream economic activity.

The Gauteng Department of Transport has succeeded in normalising the minibus taxi industry from a violent strife-torn industry to the current situation. The department committed itself to embark on efforts to bring about peace and stability in the taxi industry. The democratisation and the formalisation of 130 local associations have been accomplished with over 80% of these having gone through the second round of democratic elections. The efforts to find a lasting peace in the industry has further been boosted by the formation of a nationally recognised and representative body in South Africa and the democratically elected provincial taxi council of Gauteng.

One of the top priorities in the MTEF cycle is the recapitalisation of the minibus taxi industry. Major upgrading of public transport facilities such as taxi ranks and modal interchange will be required. The department will work closely with the metropolitan and district municipalities in this regard. The modal integration is a priority in Gauteng. The programme is aimed at integrating all existing and potential modes of transport. Supported by an integrated fare collection system, this aims to promote public transport enhancing efficiency, eliminating duplication, whilst promoting accessibility of public transport to all users. As part of this process, provision of public transport and facilities for people with disabilities will also be a focal point.

As part of the ongoing integration of the public transport modes at all the different spheres of Government, we hope that the commuter rail function will in future be devolved from the national to the lower levels of Government - and we believe that this will further boost the development of integrated transport plans. The registration process of all subsidised bus operators under the South African Bus Operators Association has been realised. As part of the ongoing efforts towards achieving transformation in the bus industry, about 15 entities representing five companies owned by women operators are currently receiving capacity-building support from the department.

The year 2002 was again an eventful year for the Gauteng rapid rail link project. At the opening of the legislature last year, it was announced that the national treasury, through its public-private partnership unit, had given its first authorisation for the project to proceed. The request for pre-qualification commenced towards the end of February and, after 10 submissions were evaluated, two consortia were pre-qualified. They have three of the world’s best and largest train manufacturing companies involved, some of the largest and best international and South African construction companies and some of the best train operating companies in the world. Both these consortia met all the pre-qualification requirements and have the experience and ability to successfully design, finance, build, operate and maintain the Gauteng rapid rail link.

The final request for proposal documents was submitted to the bidders in November last year. They have until June 2003 to submit their proposals. It is expected that the preferred bidders will be selected and announced in September this year. An anti-bribe pact was signed between the Gauteng provincial government and the bidders to ensure that bribery and corruption will not take place. As the project proceeds, its needs become more and more evident. It must not only alleviate the growing traffic congestion between Tswane and Johannesburg but also stimulate economic growth and create jobs.

Road safety under traffic management: in the effort to enhance efficiency and effectiveness in the law-enforcement processes, two units of the department - transport inspectors and traffic officers - have been merged into one unit. It is anticipated that a further plus-minus 250 officers will be recruited for future deployment and a work study investigation on this aspect is expected to be completed by November 2003. Recently, the initiated integrated approach of law enforcement, which incorporates all different spheres of Government in a coordinated and coherent manner, will continue as a pivotal point around which effective law enforcement will be promoted.

The current strategy of multidisciplinary joint operations at hazardous locations between Gautrans, metropolitan municipalities and local authorities is bearing fruit. During the Easter 2003 period, about 47% less road fatalities were reported compared to Easter 2002. The number of fatal crushes also reduced by 48% - from 35 to 18. It must be noted that more than 80% of all road fatalities occur within the jurisdiction areas of metros and district local councils. Thank you. [Applause.]

Mr T MHLAHLO (Eastern Cape): Chairperson, we have gained a tremendous amount of experience over the past few years. Such experiences have helped us reflect on our ability and readiness to adjust according to the challenges of the present time. Through these experiences, we have been able to address a number of problems as well as challenges facing the province, which certainly improved and accelerated service delivery, within the framework of the department’s multiyear strategic plan. We have carefully and systematically selected and prioritised key strategic objectives for the year 2002-03.

These strategic objectives are in line with the national and provincial legislative framework and the President’s state-of-the nation address, the state-of-the-province address by the Premier of the province, the provincial growth and development strategy as well as the medium-term revenue and expenditure framework. Through this financial year, the department is committed to the maximum utilisation of available resources in pursuance of both its strategic objectives and quality of land use and transportation integrated planning; the provision of an efficient and cost- effective public passenger multimodal transport system; including the promotion of a nonmotorised transport system; traffic administration; control; road safety and public-private partnership through facilitating taxi transformation and recapitalisation; reviewing public transport subsidies; promoting private-public partnerships; reducing the rate of accidents on our provincial roads and intensifying the fight against HIV/Aids in the transport sector.

In view of the above, the department’s priority for this year was to continue and to complete all the multiyear capital expenditure projects in progress and, as contained in the department’s 2002 to 2004 strategic plan, the business plan and the departmental budget estimates. The projects undertaken by the department and achievements attained under each project are briefly articulated in this report.

As far as the taxi recapitalisation project is concerned, although the national taxi recapitalisation programme’s progress is slow, the province has continued to undertake preparatory measures in terms of levelling the playground with special focus on training and the formalisation of the industry. To this effect, the department sponsored a taxi training study tour in July and August this year. This was organised and funded by the public passenger transport study tour to Tanzania, Uganda, Kenya and Zimbabwe, for the Eastern Cape taxi council officials and the department’s officials responsible for the taxi and public bus transport service in the province.

This study tour was undertaken as an integral component of capacity- building and empowerment of the industry under the taxi recapitalisation programme. It is the consensus of all those who undertook this tour that the study tour was very successful and that there were several findings that will make a difference in our taxi industry if properly implemented by both the taxi industry and the Government in our province. It is also believed that the department was the first and the only one in the country to undertake such a project jointly with the taxi council and we hope that this will assist other provinces to follow suit.

In an effort to improve the quality of subsidised public transport in the Transkei region and services in the rural areas of the former Transkei region of the province, the department is undertaking a route viability study from July this year. The main output of this project is to crystallise various prerequisites for providing a qualitative, cost- effective, sustainable and demand-responsive public transport system in our province. Of course, this information will assist our strategic planning for the future in our province. The project is behind schedule because of some operators’ reluctance to participate in the project and to provide critical operating information on statistics. Meanwhile the passenger-bus subsidy scheme in the Transkei area will continue to be provided by the provincial government.

With the provincial land-transport framework, the department, in accordance with the provisions of the National Land Transport Transitional Act of 2000, completed the preparation for the first provincial land-transport framework for the province of the Eastern Cape. This was officially submitted to the national Minister of Transport in January this year. According to the National Department of Transport, the Eastern Cape was one of the first two provincial departments to complete the study before 31 December last year, which was the original deadline. The deadline has since been extended to 31 March this year.

The East London and Umtata Kei Railway project continued to be the major undertaking by the department during the previous financial year and this year. Phase two and three - preliminary and detailed design including limited construction - was awarded to a particular company called Arcus Gibb and Consortium in July last year. The project implementation is on schedule and actual refurbishment construction work is to commence in April this year. The socioeconomic impacts of this project on other sectors’ projects are likely to outweigh any investment in the envisaged efficient and cost-effective rail mode of transport to be integrated with other modes of transport within the East London and Umtata development corridor.

According to Spoornet’s senior officials, the department is rated high in its efforts to rehabilitate railway as a viable mode of transport in the province. At the same time, the proposed extension of commuter-passenger services from East London to King William’s Town has experienced some delays due to legal and financial constraints. This is an integrated inter- modal transport system involving rail, bus and taxi in the Eastern Cape province. Metrorail is expected to continue playing its role until the project is completed in the interests of captive public users.

This project was to facilitate the restructuring of Government Motor Transport in line with the national framework for restructuring state assets whilst shifting the underlying philosophy from a state-public to a public-private partnership service delivery. Tenders for service providers were advertised in December last year and closed on 24 January this year. The contract to the successful tender has been awarded at the beginning of this year. The project implementation is on schedule and department performance is considered satisfactory.

Traffic administration remains the most important challenge in our province. The department has developed strategies to promote and facilitate traffic safety knowledge by actively pursuing the ideas and objectives of the national road safety programme, which embraces the Arrive Alive campaign; to maximise traffic control and law enforcement through the construction of several weight bridges and vehicle testing stations; and to enhance the management of the national traffic information system, Natis, in terms of the registration and licensing of motor vehicles and its impact on maximising revenue collection for motor vehicle licensing, fees and penalties. We need 800 traffic officers in order to be effective in our provincial road network, which covers 47 000km across the province.

As far as the Mayibuye Transport Corporation is concerned, the tenders for service providers to participate in public-private partnership within the provincial government closed on 26 May this year and the contract will be awarded to the successful bidder in the very near future. This contract will be monitored by a separate supervising and monitoring firm to be appointed very soon.

As far as Shova Kalula, which is the national coordinated bicycle project, in Eastern Cape is concerned, it was delayed. Our provincial Department of Transport has implemented a pilot phase of its own vision of the project as a means of nonmotorised, yet efficient and affordable transport only for learners in the rural schools of Magadla in Alfred Nzo District Municipality, and Mtikrakra in Chris Hani District Municipality. This project is a joint venture with the district municipalities as well as the provincial Department of Education.

The estimated number of driver’s licence holders in the province … [Time expired.]

Mr S N MTETWA (KwaZulu-Natal): Madam Chair, it is an honour for me to be in this meeting where I will be able to see Comrade Dullar Omar. Wherever you are, since you are absent from the room, I wish you well and I also pass my greetings to Comrade Jeff Radebe and everyone.

Let me begin by telling you a true story. After what happened in KwaZulu- Natal, the Minister and the department have decided to call an imbizo of all religious leaders. The Thekwini City Hall was packed. The Minister wanted religious leaders to help answer the question: What is it, what else is it, that needs to be done in order to eliminate these accidents that are happening?

The story that I want to tell you is, when the Minister was saying to everybody:

Thula! Angeke ngithule ngimbona umshayeli wethu Ethath’ impilo yami eyifaka emathuneni Ngeke ngithule. (Translation of isiZulu paragraphs follows.)

[Keep quiet, No, I’ll never keep quiet and watch the driver take my life, And toss it into the grave No, I’ll never keep quiet!]

This means that the message of mpimpa [informing] should be everywhere. That was the story.

Eighty per cent of people and goods in KwaZulu-Natal are transported by road and our ports handle the major proportion of our international import and export trade.

It is common cause that the transport portfolios throughout South Africa are significantly underbudgeted. This is reflected by the fact that economic services in South Africa are allocated only 10% of the overall budget, although we know the reasons and accept them.

Our programme to review the KwaZulu-Natal provincial road network has made considerable progress and we have developed a uniform prioritisation methodology that defines the status of roads.

The identification of the provincial road network will allow the KwaZulu- Natal Department of Transport to budget for and plan more holistically the development of a balanced road network that accommodates an intermodal transport system and promote safe and affordable public transport. Speaking about delivery in rural areas versus traditional leaders, I want to say we do not have a major problem, as one may anticipate. But I think suffice to say in recent years, since the introduction of the MTEF, the department has dedicated the budget to the African Renaissance Road Upgrading Programme. This programme targets the upgrading of major rural transport corridors from gravel to black-top surfaces.

But, when you talk about pushing back the frontiers of poverty in KwaZulu- Natal, we usually say, let us not talk about it, but let us do it. Therefore, I would like to refer to Zibambele. Zibambele is a programme for the maintenance of rural road by labour-intensive methods. It is contracted to destitute rural households. Woman-headed households are specifically targeted - currently some 98% of Zibambele contracts are awarded to woman- headed households.

A total of 14 000 contracts will be awarded this financial year. The KwaZulu-Natal Department of Transport anticipates increasing the number of Zibambele contracts available by some 4 000 contracts on an annual basis.

When you talk about black economic empowerment, KwaZulu-Natal refers to Vukuzakhe. Vukuzakhe is the KwaZulu-Natal Department of Transport’s emerging contractors’ programme. It is a stacked advance programme in which contractors receive training, mentorship and other support to assist them to advance through a contract designed to prepare them to compete on the open market. [Interjections.] [Time expired.]

The DEPUTY CHAIRPERSON OF COMMITTEES: Baba, ngiyaxolisa. [I am sorry, sir.]

Nkskn B N DLULANE: Sihlalo obekekileyo, Mphathiswa, tata uJeff Radebe, amalungu abekekileyo, xa ndiza kuthetha ngezothutho, izixhobo ezisisiseko (infrastructure) kwezothutho zingundoqo, kuphuhliso loluntu nezoqoqosho kwihlabathi liphela. Abantu basebenzisa inkonzo yezothutho ukuya ezimalikeni, xa besiya emsebenzini naxa besiya kuyifuna, xa befuna ukuxhamla iinkonzo zempilo, ezentlala-kahle, intlala-kahle ke zinkamnkam, xa bethatha inxaxheba kwezoqoqosho kwaye xa befuna ulonwabo. Ezothutho yinjini yokukhula kwezoqoqosho, kwaye zezothutho ezisisiqinisekiso sonxibelelwano lwesizwe ndawonye nehlabathi liphela.

Ngumbono nezimvo ze-ANC, njengoko idandalazisiwe kumqulu wenkqubo yokwakha uphuhliso loluntu i-RDP, ukuphucula intshukumo nobume bobomi babantu, nesebe lizeke mzekweni kwiimbono zalo. Zezi meko ezibangela ukuba isebe lizimisele ngandlela zonke, kwaye lingqale ngokuthi ngqo ekulungiseni ukuhamba ngokushiyekela, ukusilela okungummangaliso, okuyingxaki kweli Sebe lezoThutho, okwabangelwa ziindlela ezingeyonyani nezingezizo, kwaye ezigqwethekileyo, zokuhlala nelishwa, nto leyo, elilifu esishiywe nalo ngurhulumente wengcindezelo. (Translation of isiXhosa paragraphs follows.)

[Ms B N DLULANE: Hon Chairperson, Minister, Mr Jeff Radebe, hon members, talking about transport, infrastructure is essential to social development and the economy in the whole world. People use transport services to get to the markets, when going to work and to seek employment, access health services, social services and social grants, when they participate in the economy and when they want to engage in recreation. Transport is the engine to facilitate growth in the economy and it is transport that ensures communication of a nation with the rest of the world.

It is the vision and the views of the ANC, as spelt out in the programme to rebuild the development of society, the RDP, to improve the lives and living conditions of the people. One of the conditions that the department is so determined to focus on is rectifying travelling delays, those astonishing hold-ups that are a problem to this department of transport. They have been caused by methods of settlement that were not true and real but perverse as well as unfortunate. This is a cloud that was left to us by the oppressive government.]

The introduction of nonmotorised transport is seen as one way of addressing the shortage of transport facilities in rural and semiurban areas.

Xa ndiza kuthetha ngezithuthi ezingenayo injini (nonmotorised transport), isebe likazwelonke lenze isiqalo esibizwa ngolokuba nguShova Lula, esithi ngesiXhosa ngushova kalula, ezothutho ngeebhayisekile.

Okokuqala, ibijoliswe kumabanga aphantsi emfundo, kwabangathathi ntweni, ezilalini. Nanjengoko sele nimvile umntakwethu ophuma phesheya kweKoloni okokuba phaya kwaMagadla, kwezinye zeelali ezingaphaya eMatatiele, ibe lulutho le nkqubo isakuba ifikelele nakweli lethu iphondo, ngokunjalo, inwenwele ezidolophini, empahandleni nakubasebenzi basezidolophini abahamba imigama emide ukuya emisebenzini.

Eli phulo lokuqala libe yimpumelelo. Wonke amaphondo alixhasile ngoyaka ka-

1. Iivenkile ezili-11 ziye zavulwa ngenxa yokuxhaswa koShova Kalula. (Translation of isiXhosa paragraphs follows.)

[On the matter of nonmotorised vehicles, the national department has embarked on an initiative called Shova Lula'' - in isiXhosa, we say shova kalula bicycle transport’’.

In the first place, it was intended for people at the lower levels of education, the indigent in the villages. As you heard my brother from the Transkei saying, in kwaMagadla in some of the villages of Matatiele, this programme was something that reached our province also and, in the same way, extended to towns in the rural area as well as to people employed in towns, who walk long distances to places of employment.

This first campaign was a success. All the provinces supported it in the year 2000. Eleven shops were opened because of the support of ``Shova kalula.’’]

The demand by potential users was good and got support from local politicians and officials. The positive spin-off of this programme has been the creation and improvement of the rural road infrastructure such as access roads, low-level access bridges, footpaths, sidetracks as well as various safety gadgets.

Local authorities and provinces have to take into account the need to provide for cyclists and pedestrians in road planning and design. Alleviating rural poverty by promoting small, medium and macro enterprises would be achieved by using local expertise in the running and maintaining of bicycle transport, developing mobile bicycle transport clinics and shops, and training interns in the bicycle transport business, which will create opportunities for young people in rural and urban areas.

The success of bicycle projects in South Africa has caught the eye of the World Bank and, as a result, has asked South African specialists to assist in starting pilot projects in Senegal, Ghana and Guinea.

On the issue of road transport, the disparities in remuneration between local and provincial government traffic officials, who are there to ensure road safety, have to be taken into account. Minister, I fail to understand why traffic officials in local authorities are paid more than those in provincial government.

Likhwelo nje. Andinamona, kodwa mayijongwe loo nto. [It is merely a wake-up call. I am not jealous, but let that be looked into.]

The disparities need to be investigated and addressed. The department is busy examining a proposal for a new classification of roads, which aims to categorise roads according to the function they perform and assign the appropriate authority to take over responsibility for maintaining the roads.

According to the new classification, some provincial roads will be included as part of the strategic road network for which national Government is responsible. In the same way, local roads could be classified by strategic road network for provincial government. The new classification will ensure that unproclaimed roads, which are mostly rural, are properly classified into a rural network and assigned to the appropriate authority.

When it comes to safety at sea, the sea is a very important mode of transport, because 90% of world trade is conducted by sea. In the area of safety, there has been general improvement in coastal safety systems.

The South African Maritime Safety Agency, a statutory body that reports to the Minister of Transport, is responsible for the promotion of the safety of life and property at sea. It is also responsible for the prevention of sea pollution by pollutants emanating from ships, the management of incidents, casualties and wrecks and participation in search and rescue.

South Africa has contributed actively to search and rescue in southern oceans and is seen as a focal point for that. It is for this reason that the department sees the establishment of the Maritime Rescue Control Centre as a priority and has included it in its 2003 budget. The Department has concluded bilateral research and rescue agreements with Madagascar.

The Special Development Initiatives, the SDIs, are public-private partnership programmes. The involvement of the department in these projects focuses on providing infrastructure, black economic empowerment, skills transfer and the creation of sustainable jobs.

The SDIs, which the department initiated, are Lebombo, West Coast, Fish River, Maputo Development Corridor, Wild Coast, Phalaborwa and Richards Bay.

Let me take Maputo Corridor as an example to show the impact of these initiatives on the economy. The combined effect of the Maputo Corridor and the new border post will make the journey between Maputo and Johannesburg quicker, safer and smoother, decrease freight transport costs, assuming that increased efficiency and reliability will lead to increased volumes in both directions and pass cost savings on to customs because of the competitive nature of the road freight industry.

Transport has a critical role in the implementation of Nepad. It is crucial in creating an effective co-ordinated African response to the global market. Challenges are market-access mobility and system integration.

The commitment of the department … Mhlali-ngaphambili, i-ANC iyaluxhasa olu hlahlo lwabiwo-mali. Enkosi. Laphela ixhesha [Chairperson, the ANC supports this budget. Thank you. [Time expired.]]

Mnu M S MALAKOANA (KwaZulu-Natali): Malungu ahloniphekile, Ngqongqoshe osamise insika okwalesi sikhathi emNyangweni wezokuThutha, uBhungane, nezithunywa ezikhethekile esinazo lapha, ngiyathokoza ngaleli thuba lokuthi nami kube nomshisanyongo engiwuphonsayo esivivaneni ngawo esihlose ukuthi umnkantsha kube ngoshubile ngempela uma usukhiqizwa. (Translation of isiZulu paragraph follows.)

[Mr M S MALAKOANA (KwaZulu-Natal): Hon members, Acting Minister of Transport - Mr Radebe, and distinguished guests, I appreciate this opportunity given to me to make a really substantive contribution to the discussion.]

Transport is a vital link in all people’s lives. It is the artery of the economy. It ensures the freedom of the individual in a country of such long distances. It links our country and its entire people with the outside world through trade and investment. Above all, like everything else in life, transport, with all its connotations, is indeed also political. But, of course, it is not my intention and my interest at this time to address the political issues of transport.

My point of departure is to begin by looking at the issue of rural roads. In most developing countries the provision of rural roads is linked to the needs of those dependent on agriculture to subsist and earn an income through agriculture. Indeed this could not have been the case in South Africa because of the apartheid legacy. Much fewer people are dependent on agriculture for a living and the numbers continue to decline.

In fact, the foundational and fundamental philosophy of self-help and self- reliance seems not to be given enough space for it to thrive. Over 37% of rural households depend on income generated outside their communities. The implication of the above statement is that it is vital that it be an integrated approach if we are to meet the basic needs of people. I doubt very much if generally there is much evidence of this in all provinces. There is also a clearly discernible lack of capacity at local level to capitalise on the provision of rural roads. Herein lies the greatest challenge to use the provision of roads as a motor for development and upliftment in rural areas.

One could of course unjustifiably say that it is the lack of capacity at local level, whereas the truth, whether whispered or shouted aloud, is that national Government and provincial governments still perform functions that are supposed to be executed by local government, for example, the construction of community access roads. This needs to be addressed as a matter of urgency.

Diverting my focus to the issue of black economic empowerment and the role that is played and should be played by the department, the Department of Transport is the key to economic and social development of all the provinces, as has been confirmed by the hon the Minister, Bhungane.

Thus, one needs to put it on record that we appreciate greatly and tremendously the role that has been played by the department in terms of ensuring that the PDIs benefit from programmes. However, one likes to caution the department to be watchful as it wants information that large monopolies have been and are being created when it comes to, for example, the disestablishment of other bus companies under the pretext of black economic empowerment. It is therefore my considered view that even though it is always the intention of the department to be involved in black economic empowerment, a transparent, fair and equitable process should always evolve.

I say this because some schemes have mushroomed in some quarters but crumbled as a result of the lack of a strategic vision that can be transformed into a practical and sustainable plan of action.

It is not, of course, my intention to discourage the department from fortifying its efforts when it comes to black economic empowerment, but what I have raised above deserves serious consideration.

Coming back to roads again, main roads and road infrastructure are a passion for me as a I come from the province that has serious backlogs in roads infrastructural development.

Kuyaziwa ukuthi uma sikhuluma ngeKwaZulu-Natali ithatha esandleni sababesiphethe ondlebezikhanyilanga, amaphuma emi, ayekade eyidlavadlavaza indawo yakithi. Njengamanje sibhekene naleyo nkinga yesimo esinjalo. (Translation of isiZulu paragraph follows.)

[It is well known that KwaZulu-Natal inherited its legacy from the whites, who ruinously administered our land. That’s the situation we are faced with today.]

There has been a proclivity to construct new roads to the total disregard of maintaining the existing infrastructure. There can be no denying the fact that much of the infrastructure in more developed areas is not maintained properly. Crumbling road surfaces are common everywhere in the country, even in my province too. Though we do try to contain the speed of disintegration, the appearance of potholes in tarred roads has led to the proliferation of warning signs against potholes over vast areas of our country. This is a first and is cause for concern.

Whilst I emphasise the importance of increasing expenditure on rural roads, I am in no way implying that this should happen at the expense of the road infrastructure on which the first-world part of our economy is dependent. [Time expired.]

Dr P J C NEL: Mevrou die Voorsitter, die NNP is dankbaar dat die agb Minister van Vervoer vandag, ten spyte van swak gesondheid, sy sitplek in hierdie Raad kon inneem vir ‘n paar oomblikke. Ons bid hom baie sterkte toe.

Ek haal dan ook graag aan uit die voorwoord tot die nuutste besigheidsplan van die departement wat deur dié agb Minister geskryf is. (Translation of Afrikaans paragraphs follows.)

[Dr P J C NEL: Madam Chairperson, the NNP is grateful that the Minister of Transport can take his seat in this Council for a few moments today, ill health notwithstanding. We wish him every strength.

I also would like to quote from the preface of the latest Budget Plan of the department, which was written by this hon Minister.]

I quote as follows:

Transport is a basic necessity for sustainable social and economic development and an enabler in addressing poverty and development needs.

Dit, Voorsitter, in kort vat na my mening al die doelstellings van ‘n goeie vervoerstelsel saam en vorm verseker ‘n goeie basis vir die opstel van ‘n besigheidsplan. (Translation of Afrikaans paragraph follows.)

[This, Chairperson, in my opinion briefly summarises all the objectives of a good transport system and ensures a good basis for drafting a budget plan.]

It is, however, disappointing to learn from this budget-plan document that the backlog with regard to road and commuter-rail capital and infrastructure has escalated over the years to such an extent that it might lead to unacceptable consequences should it not be addressed adequately within the medium term.

The most important challenge for the department of transport in the Free State is the closure of the gap between the backlog and the new needs and to bring existing infrastructure into an acceptable state of repair. In the Free State, the backlog in the resealing and rehabilitation of roads has resulted in an old road network that requires far more maintenance than can be provided or afforded. A total of only R280 million will be invested in provisioning for and maintenance of the road infrastructure in this financial year.

However, the estimated need to address the backlog in the Free State over a realistic period of 10 years is approximately R1 billion per annum. My plea to the hon Minister today is to negotiate for more money for all the provinces for this purpose. South Africa’s road to safety and the road to riches cannot be a road full of potholes.

Die NNP het egter groot waardering vir wat die agb LUK en sy amptenare in die Vrystaat in die departement vermag met die beperkte fondse tot hul beskikking. Dit het, glo ek, sekerlik bygedra tot die 12% afname in die padongeluksyfer in die Vrystaat die afgelope Kersseisoen. Dit is voorwaar ‘n prestasie. (Translation of Afrikaans paragraph follows.)

[The NNP, however, has great appreciation for what the hon MEC and his officials in the department in the Free State have been able to achieve with the limited funds at their disposal. It has, I believe, certainly contributed to the 12% decrease in the road accident figure in the Free State during the past Christmas season. It is indeed an achievement.]

That brings me to road and rail safety. South Africa is currently facing the crisis of a very high rate of road accidents, injuries and fatalities. This is a disease killing about 10 000 people on our roads annually and thousands more are injured and mutilated on our roads, costing the South African economy approximately R4,2 billion per year.

Given the fact that information and statistics play such a critical role in strategic planning, management and evaluation of policies, it was very disappointing to learn from a written reply by the Minister of Transport to a question put to him recently that the statistics in respect of fatal road accidents for 2002 will only be available towards the middle of 2003 and that, due to the high number of accidents in other accident groups, information is collected only for fatal accidents and no information is currently available for the number of serious injuries. Without a good diagnosis, a doctor cannot prescribe the correct medicine. I am, however, pleased that the hon Acting Minister has announced some mechanisms today to address this problem.

The New NP welcomes the announcement by the hon Acting Minister today that the Rail Safety Regulator Act will hopefully be implemented soon. Hopefully this will enhance the safety of passengers on our trains. I would like to express my party’s disappointment that the report on the disastrous Muldersvlei train accident has been released at such a late stage. I still do not have it in my hands.

In my first speech in the debate on this Budget Vote in this House, I expressed my concerns about the medical and mental fitness of professional drivers on our roads and I have requested the hon Minister to amend the current legislation regarding medical testing to provide for stricter medical testing. The hon Minister, in a written reply to a question put to him, has informed me now that legislation to this effect is currently being developed. For that the New NP is very grateful.

My plea to the hon Acting Minister is to make provision in this legislation for a stipulation that only specifically accredited medical practitioners may conduct … [Time expired.] [Applause.]

Mr Z S KOLWENI: Hon Chair, Minister, my colleagues and distinguished guests from various provinces, I rise to present the speech or statement as prepared for the chairperson of the standing committee in my province who, due to unforeseen circumstances, could not find an hour to be here with us.

Before I start to present the needs of the people in terms of transport in the North West, in this era of transformation and commuter care, I must indicate the situation on the taxi recap and the training of taxi drivers. The first phase of this training was completed at the end of last year. The second phase is due to start shortly, mid-year. These courses are TETA- accredited. In terms of public transport subsidies, to date all subsidies have gone well. However, there is the new challenge of having to revisit the subsidy strategy due to a new rezoning approach in the bus industry on some routes in the province. As our province is mostly rural, the bus industry has scaled down its operations in some areas due to the scaling down of the industry itself. The rural commuters are therefore dependent on the taxi industry to fill the gap left by the bus. This affects both the working and the nonworking classes.

About black economic empowerment, five taxi cooperatives were registered with the Registrar of Cooperatives last year. These co-operatives are intended to empower both taxi operators and drivers economically. The Caltex fuel company has won the tender to supply fuel to the taxi industry in bulk. The industry will subsequently purchase fuel cheaper at a subsidised price.

In terms of the Arrive Alive campaign, the province has established the Road Safety Forum, to which full-time road safety officers have been appointed to work directly with the forum in terms of facilitating understanding with communities. The province set itself a target last year to contribute by 10% to the national Arrive Alive campaign and the assessments is that it was achieved.

The general situation regarding testing stations is that most of them are in the process of being upgraded to meet the national standards and comply with the SABS requirements.

I must also highlight that as far as the Road Accident Fund Commission Report is concerned, the province has not assessed the report so far as the national department has direct access to the RAF.

About nonmotorised transport, the South African Bureau of Standards, the SABS, is currently formulating specifications for the province with regard to donkey carts. The guideline document is due for completion towards the middle of this year.

A number of 1 350 bicycles have been distributed to the identified deserving schools in the Bophirima district municipality by President Thabo Mbeki during his visit to the province following the Imbizo Week. At the same time 1 200 bicycles are in the process of being distributed to the deserving schools in the Kgalagadi district municipality. This exercise will be completed at the beginning of June this year.

In conclusion, North West welcomes the Budget Vote. Thank you.

Mnr A J WILLIAMS: Dankie, Voorsitter. Ek wil die agb Minister mnr Radebe bedank en gelukwens met die doeltreffende wyse waarop hy waarneem in hierdie portefeulje. Die Wes-Kaap het groot waardering vir die reusetaak wat u saam met u eie portefeulje het en wat u so suksesvol hanteer.

Die provinsie Wes-Kaap het onlangs sy mobiliteitstrategie bekendgestel. Hierdie geïntegreerde strategie tussen busse, treine en minibus-taxi’s het ten doel om volhoubare ontwikkeling te verseker en om die lewenskwaliteit van die inwoners van die provinsie te bevorder. Die meeste pendelaars wat van openbare vervoer gebruik maak, is van die arm, voorheen benadeelde gemeenskappe. (Translation of Afrikaans paragraphs follows.)

[Mr A J WILLIAMS: Thank you, Chairperson. I want to thank the hon Minister, Mr Radebe, and congratulate him on the effective way in which he is acting in this portfolio. The Western Cape has great appreciation for the gigantic task that you have, together with your own portfolio, and that you cope with so successfully.

The Western Cape province has recently introduced its mobility strategy. This integrated strategy between buses, trains and minibus-taxis is aimed at ensuring sustainable development and promoting the quality of life of the residents of this province. Most of the commuters who are using public transport are from the poor, previously disadvantaged communities.]

For most people in our province transport is expensive and time-consuming. For many it is also unpleasant and unsafe. It is also costly to society. Accidents, congestion and environmental destruction waste our social resources. Apartheid policies, which segregated people on racial grounds, created settlement patterns that were grossly inefficient and unequal. This, Chair, imposed poverty, dependence and high costs on poor people. Trapped in a cycle of poverty, many people were denied access to basic resources.

Improving the transport system means creating a viable, affordable and sustainable transport system for everybody. Transport policy and strategy must therefore change the way things were done in the past and to bring about major improvements in both urban and rural areas.

Chair, to make sure that this happens, any mobility strategy we start must be related not only to producing the distribution of land-use activities but must also help to create jobs, reduce poverty, make the best use of available transport resources in an integrated transport strategy, and lead to the empowerment of our people.

The planned development of the Klipfontein corridor will truly lead to empowerment of those who were economically neglected in the past.

Verkeersbestuur ressorteer in die Wes-Kaap onder die departement gemeenskapsveiligheid, en daar is ‘n noue skakel tussen die ministeries van gemeenskapsveiligheid, en vervoer en openbare werke sowel as die twee staande komitees van daardie twee ministeries om van ons verkeersbestuur ‘n sukses te maak in ons provinsie. (Translation of Afrikaans paragraph follows.)

[In the Western Cape traffic management falls under the community safety department, and there is a close link between the ministries of community safety, transport and public works, as well as the two standing committees of those two ministries, to make a success of traffic management in our province.]

Public transport is a basic need for a very large proportion of the Western Cape community, because low-income levels, and in many cases dire poverty, do not provide these communities any alternatives to the public transport service available to them. In the city of Cape Town, where some 80% of the population of the province reside, a low car-ownership rate means that 56% of persons depend on the public transport for work and other trips. This translates into almost 500 000 persons travelling to and from work daily by means of public transport.

Minibus-taxi operators deliver much of the public transport being provided, and, in the case of rural areas, nearly all public transport. Partnership agreements have been concluded by the city of Cape Town and in some other municipalities in order to join and implement projects, carry out statutory planning and manage and provide operational projects. To support the efforts of the road infrastructure branch and to meet the requirements of the Batho Pele principle, the branch has developed a key measurable objective management system, the KMOMS, that contains details of about 120 key measurable objectives developed to measure service delivery in the respective 29 branch priority programmes.

The measurement of this delivery, through the KMOMS, is a continuous process undertaken by the management of the road infrastructure branch and serves as the basis of progress reports required by provincial treasury and the provincial cabinet.

The major achievement during 2002-03 was the transformation that occurred with the roads infrastructure branch. This transformation is reflected in the mission statement that changed from being product-orientated to one that emphasises the importance of a process that is socially just, developmental and empowering. With an allocation of R55,27 million, only 40% of the need for regravelling of the gravel roads could be met. Of the R79,68 million available for resealing, only 45% of the need could be met. The amount of R83,15 million was made available for routine maintenance activities on gravel roads, and only 39% of the needs on roads could be met in this regard.

Madam Chair, R89,95 million was allocated for the maintenance of service roads in the province, which enabled the branch to meet only 60% of the need. Government motor transport introduced the 24-hour report line in an effort to curb fraud and misuse of government vehicles. A special project was launched to update and to keep track of the transport officers to enable better communication. A strategic planning and extensive consultation process led to the publication of its visionary delivery plan for 2002-2007, which gained acceptance by the province, all the municipalities in the province and stakeholders affected by the new direction to be taken in terms of the new policy.

The vision of the delivery plan takes forward existing programmes, one of which is the transformation of the minibus-taxi industry into a more formally structured operating sector. This involves the transitional intervention of the Be Legal Campaign, in terms of which some 1 500 illegal operators were granted operating licences. Another achievement this year was the appointment of the new provincial appointing licence board, an independent body established in terms of the National Land Transport Transition Act.

In line with the intent to deliver a people-friendly Batho Pele approach when interacting with the public-transport industry, major improvements were made to the Goldburn Centre at a cost of some R10 million. This is the provincial office where applications by operators for operating licences and registrations are made. Regarding the Community-Based Public Works Programme, the department was successful in obtaining an allocation of R46,16 million from the allocation for poverty alleviation in structure and job summit projects.

Madam Chair, of the R46,16 million an amount of R44,91 million was set aside for the Community Access Road Programme, and R1,25 million for the Community-Based Road Maintenance Programme. The Community Access Road Programme broadly encompasses the construction of municipal streets, sidewalks and access to road services for marginalised communities in the five district municipalities that we have in our province. These projects presented opportunities to reduce unemployment by creating productive jobs and opportunities for affirmative business enterprises, the ABEs, the creation of assets of an appropriate quality by incorporating construction methods and encouraging the employment of local labour at ABEs.

In order to complete these projects within the communities, the department provided training and transferred skills to unemployed people and ABEs involved in the projects, to improve their chances of becoming self- employed and entering the formal economy after the completion of these projects.

Madam Chair, to ensure the ongoing alleviation of poverty, the department provided members of the community with the opportunity for ongoing employment opportunities, after the creation of initial assets by way of the Community-Based Road Maintenance Programme. These projects presented opportunities to develop the capacity of communities through the direct participation in the development of the projects. We in the Western Cape are committed to root out the evil of poverty in the province. I thank you. [Applause.]

Ms B THOMSON: Ngiyabonga Mphathisihlalo, Ngqongqoshe uJeff Radebe, manxusa ayisipesheli namalungu ahloniphekile. NoComrade Dullar, yize esephumile eNdlini, sithi makakhule aze akhokhobe. [Thank you Chairperson, Minister Jeff Radebe, special delegates and hon members. To Comrade Dullah, who has just left the House, we say: Long Live!

We are keen on languages. That actually means growing up and using an aid like Comrade Madiba is doing now. That is what it means. ``Ukhul’uzukhokhobe!’’ [May you live long!]

The ANC’s policy around transport is informed by the needs for transport to support Government’s social and economic development objectives. Transport, whether by road, rail, sea, or air, is the backbone of our economy, because it carries people to and from work, move products from producers to markets, and offer affordable movement to mostly poor people to enable them to access social services such as health care and education.

For transport to fulfil this important social function, it is essential that it be underpinned by a clear vision and an appropriate policy and legislative framework. Our vision, articulated in the RDP and further elaborated in the White Paper on Transport on Moving South Africa, calls for a transport system that will provide safe, reliable, effective and efficient, and fully integrated transport operations and infrastructures that will best meet the needs of communities and improving levels of service and cost in a fashion that supports Government strategies for social and economic development while being environmentally and economically sustainable.

When we assumed power, we inherited a transport system that was in sharp contrast with the one contained in our vision above. It was a transport system characterised by the absence of proper roads in townships, severe backlogs in road maintenance, deterioration of rail and bus services for commuters and rural people, inadequate regulations of the taxi industry and ignorance of the country’s outrageous road safety record. Given this legacy, it was never going to be an easy task to transform our transport system to one that is responsive to the needs of the vast majority of poor people. Neither could it be accomplished in a short space of time.

Indeed, in our first few years of democracy, the focus was on a painstaking process of internal restructuring and the development of new policies and strategies. It is these new policies and strategies that have now laid the foundation for us to begin to accelerate the implementation of our vision for transport in this country. A number of daunting challenges are facing us in implementing our vision. I want to focus on just a few of them.

That is the taxi recap, and I think a lot of members have spoken about this issue. The taxi recap process is a recognition on the part of the ANC of the important role that the taxi industry plays in our national economy. We believe the taxi industry should take its rightful place in our public transport industry, because 65% of South Africans are transported by the taxi industry.

Sizokhumbula ukuthi abantu abashayela amatekisi besibabiza ngosomatekisi. Yilo Hulumeni wethu we-ANC owabona ukuthi akusilo igama elehla kahle lelo ukuthi bangosomatekisi. Yikho-ke sesibabiza ngokuthi abantu abakwi-taxi industry. Kuqala bebethathwa njengabantu abafana noskhotheni, bengahlonishwa. UHulumeni ka-ANC nguye oze wabuyisa isithunzi sabo ukuthi sibe sendleleni. (Translation of isiZulu paragraphs follows.)

[We will remember that we used to call taxi drivers ``osomatekisi’’. It is our ANC Government who realised that this name was not acceptable, and that is why we now refer to them as people in the taxi industry.

Previously they were not respected, they were regarded as vandals. It is the ANC Government that has restored their dignity.]

The key advantage of the recapitalisation process includes improved safety and efficiency, since the vehicle specifications are designed for passenger safety and comfort, electronic fare collection, which improves the ability to generate tax revenue from the billions generated by the stability in the industry. It will also create considerable opportunities for black economic empowerment in the various sectors that supply and service the industry. An important objective of the recap is to help advance and achieve the property development investment and ownership aims of the South African National Taxi Council.

In this regard the ANC is pleased to note that the R8 billion project between SANTACO empowerment property development, group taxi prop and construction group Basil Read will begin in September 2003. I say this noting the concerns that have been raised by SANTACO with regard to the slowness of our process. As Government was saying, we are prepared to address their problem as a collective. This joint venture will transform existing taxi and bus ranks into diversified retail and service outlets.

These transport hubs will offer facilities like retail stores, financial and banking facilities, medical clinics, community centres, vehicle dealerships and other motor-related services. In other words, they will offer commuters the convenience of retail stores and retailers access to a concentrated market. It will also include lock-up market kiosks for hawkers. Given the significant contribution this process will make in realising and unlocking the economic potential of the taxi industry, it is essential that the interdepartmental processes that are currently taking place be accelerated. I will touch a bit on road safety. The ANC applauds Government’s increased emphasis on the safety issues in all transport modes. The Road Safety Strategy, new regulations that are on the transportation of dangerous goods by road, the establishment of the Marine Rescue Centre, the setting up to the Rail Safety Regulator and the Road Traffic Management Corporation, are excellent examples of this commitment to create a safe transport system. If I may just say …

KwaZulu-Natali umhlonishwa uSbu Ndebele unohlelo olubizwa ngokuthi Yomela Ngasekhaya.'' [In KwaZulu-Natal the hon Sbu Ndebele has a programme called Quench your thirst at home’’.]

He advertises that slogan on the glasses, which simply means:

Noma sewome kangakanani, ungalingi uwuphuze ubhiya wakho. Linda uze ufike ekhaya, ungaphuzi emgwaqweni. [No matter how thirsty you are, do not drink your beer while you are on the road. Wait until you are home.]

Since 1994 we have developed a comprehensive road traffic safety system through an integrated approach which includes safety aspects ranging from driver and vehicle certification and testing, road signage, road-user education and traffic law enforcement. They have also secured passenger safety even further through the speed limit for public transport vehicles such as buses having been lowered to 100km/h. The major strategy for combating road accidents is more effective law enforcement. This means physical detention and prosecution of road traffic offenders and increased maximum fines.

However, this needs to be combined with the broader pro-active strategies, which will enhance compliance with road traffic rules. The main reason for this is that the effectiveness of enforcement-based strategies to modify road-use behaviour is dependent on there being a perception that there is a real possibility that breaches will be detected. [Time expired.]

The ACTING MINISTER OF TRANSPORT: Chairperson, I really appreciate all the members who participated in this debate and I am sure that as a Department we will incorporate many of the suggestions that were made in this Budget Vote. I want to respond to some of the issues that have been raised.

Firstly, on the issue of emergency exits for public vehicles, in the aftermath of the Bethlehem accident where 51 of our people died, the department has commissioned the South African Bureau of Standards to undertake a detailed study on emergency exits. We have already had preliminary discussions with the SABS and we look forward to a detailed report and guidelines in due course.

It is also important to add that the department is also looking at the adequacy of emergency services. The department will also be commissioning an audit to determine the nature, location and availability of emergency support services when accidents occur on our roads.

On the issue of the points demerit system for public transport, the Department of Transport has taken note of all requests by several stakeholders, including this House, for the introduction of the points demerit system as part of the regime to improve public transport services.

It is also part of the new bus tendering system which introduces these sanctioning measures to ensure that operators recognise the fact that safety is non-negotiable. Similarly with the introduction of new vehicles as part of the taxi recap programme the Department will include safety standards to ensure that any operator who does not adhere to minimum safety standards will forfeit their operator’s permit as part of this points demerit system.

On issues that have been raised especially by the Northern Cape on the issue of provincial road funding, the department is engaged in discussions with the National Treasury on inadequate funding for road maintenance rehabilitation and further development. One of the proposals that is on the table is the consolidation of the Municipal Infrastructure Grant and increasing the total allocation for purposes of ensuring better maintenance of all provincial roads.

Secondly, as part of the new five-year road plan that I mentioned in my earlier comments, a joint task team involving the national Department of Transport, the National Treasury and road departments in all provinces has been established to provide a better coordination of efforts in the management of public transport infrastructure. The entire Government must acknowledge this problem in the area of road funding and we are committed to bringing about substantial improvements in this regard.

I want to ensure and assure this House that all these requests will receive high priority. I may add as well that the Roads Agency, SANRAL, as an agency of the Department of Transport, will also be assisting in many provinces to ensure that the question of road maintenance is dealt with and also taking over certain of the portions of road when it is economic to do so.

On the progress of taxi recap, members will recall that this programme consists of two processes: the Electronic Management System and the new taxi vehicles. With regards to EMS, which is the Electronic Management System, we are in the process of finalising a tender evaluation and the recommendation will come to Cabinet soon.

On the new taxi vehicles, I must indicate to this House that the best and final offer, the so-called Bafo document, has been issued on 21 May 2003 and as soon as this process is concluded, a decision will be taken by Cabinet. On the Road Accident Fund, there have been fraudulent claims for road accidents that have been submitted to the RAF. While this RAF embarked on a strategy to clamp down on fraudulent claims, the Department of Transport appointed a commission of inquiry to make recommendations with respect to the whole system and improve procedure by the RAF to verify the validity of claims and to investigate suspect claims. This has already proved successful as a number of corrupt attorneys and employees, as members are aware, are being exposed and prosecuted.

The commission of inquiry has released its report, as we may be aware, in December of last year and it contains several recommendations. The core thrust of these recommendations is that this fund should be replaced with a new system of compensation for victims. Many of the recommendations are being taken up in revised legislation to be finalised but, of course, consultation with all relevant stakeholders will ensure that we will be able to take people on board.

On the issue of the bicycle project, the so-called Shova Kalula project, the question was why it had been delayed. When the first phase was completed, the department initiated evaluation of phase one of the bicycle project in order to measure the successes as well as the failures.

Both these successes and failures were meant to be considered in the design of the second and third phases. The evaluation exercise involved various visitations to each of the eleven sites in the seven provinces where the project was launched. The second reason contributing to the delay has to with the development of tender specification for the supply and maintenance of the shops as well as the bicycles themselves.

In developing these specifications, the department had to interact with the SABS in ensuring that its tender specifications are aligned with the bicycle norms and standards based on the comments that were received. So as a result, tender specifications had to be redone.

Based on the lessons of this evaluation, the decision was taken to separate the component for the supply of bicycles and the management of shops. This meant that two tender specifications had to be redeveloped in this regard. Because the bicycle project is a joint venture between the department and provinces, it was important that consultation on these tender specifications was done and deliberated upon with provinces who have indicated strong support and interest in gaining the strategic control and ownership of the project. This has also contributed to the delay.

Right now, there is a memorandum of understanding that is being negotiated between the department and the provinces. As soon as this memorandum of understanding has been completed and the business plan concluded with the provinces, funds will be transferred to the provinces so that we can move to the last phase.

On the issue of BEE, the Department of Transport has made much progress with regards to BEE through, in particular, the bus tender system. In spite of the moratorium on the issuing of bus tenders, especially in KwaZulu- Natal, the majority of subsidised bus services are operated, in fact, by historically disadvantaged individuals. The MinCom decided that this process should be expedited and in order to achieve this, it was decided that in future 30% of all tenders will be set aside for the historically disadvantaged and provision will also be made for a further 10% for subcontracting. The Department of Transport is aware of the challenges of economic empowerment and there is also a concurrent process of developing the BEE Charter for the transport sector. We are in a process of consulting stakeholders and hopefully before the end of August 2003 the charter will be available.

With those comments, Chair, I would like to take this opportunity to thank all the hon members for their constructive and useful comments. As I have indicated, we will act upon many of the comments that have been made. [Applause.]

The CHAIRPERSON OF COMMITTEES: Order! Hon Minister, thank you very much and thanks to all the special delegates. We want to thank you sincerely, hon Minister, for the work that you are doing on behalf of your colleague hon Dullah Omar. We say, keep the home fires burning. Siyabonga Bhungane. [Thank you, Bhungane.]

                        BANKS AMENDMENT BILL

            (Consideration of Bill and of Report thereon)

Ms C-S BOTHA: Chairperson, colleagues, the most substantive amendment to the Banks Act is to the powers of the Registrar of Banks to ensure sound corporate governance. But perhaps the most interesting aspect for this Council are the changes to the gender-insensitive provisions of the Banks Act of 1990.

Members of this Council may remember the efforts of the chairperson of the Select Committee on Finance, who tried to have the gender-insensitive terminology of the Act changed in 2000 already. The debate was taken to the Joint Monitoring Committee on Improvement of Quality of Life and Status of Women, whence it was brought directly to the Minister of Finance.

Our objections were not successful, and it is only now that the terminology in the Act - which referred only to close relatives in relation to a man, namely his spouse, child, stepchild, parent or step-parent and, furthermore confined the business of a bank only to the use of the male pronoun - has been amended.

By themselves these linguistic issues may not seem to be of huge importance and were certainly not viewed as such by the Treasury in 2000, but it is the mindset that could write important legislation in terms of male references and perspectives only, that caused the relegation of women to an inferior position in earlier times and reinforced the notion that men be viewed as the guardians of women, even when women had reached their majority or were married, particularly in relation to banking matters. Therefore the present changes are symbolic of a much bigger debate. They confirm that women are, as a matter of course, the legal equals of men in whatever capacity they operate.

The Bill also provides for the establishment of a compliance function within banks. It requires banks to establish and maintain adequate processes of sound corporate governance which, in relation to the management of a bank or a controlling company, now includes all structures, processes, policies, systems and procedures in terms of which a bank or controlling company is governed and in terms of which the term ``director’’ is defined to include an executive director and nonexecutive director.

The proposed amendment has not only imposed a duty of care and skill on each director but extends such duties to chief executive officers and executive officers of banks and bank controlling companies. The House will well remember that these procedures were not in place when we were faced with the Saambou problem. The amendment clarifies the common law uncertainty relating to the test applicable to the determination of whether or not the duty has been discharged.

The proposed amendment makes it clear that the company, as opposed to the shareholders, is the beneficiary of the statutory fiduciary duty and duty of care and skill, and grants certain powers to the registrar for breach of action. These new powers will allow the registrar to fulfil a powerful function in protecting the interests of depositors.

It is noted in the memorandum that no specific meaning has been given to date, or is likely to be given in future, to the term ``fiduciary duty’’ but rests on the perception of the community of what constitutes acceptable conduct or breach of such, and changes over time.

The amendments also extend the powers of the registrar to object to a proposed appointment of a director, whilst making the necessary distinction between executive and nonexecutive members, the latter being appointed under the Companies Act, while the former are subject to the various labour laws.

I request, on behalf of the Select Committee on Finance, support for the passing of the Bill. Thank you. [Applause.]

Debate concluded.

Bill agreed to in accordance with section 75 of the Constitution.

                      INSURANCE AMENDMENT BILL

            (Consideration of Bill and of Report thereon)

Dr E A CONROY: Hon Chairperson and colleagues, following an intensive review of the administration, implementation and efficacy of the Long-Term Insurance Act of 1998 and the Short-Term Insurance Act of 1998, the Bill on the table today, namely the Insurance Amendment Bill, has been designed to update and consolidate the insurance industry’s legislative framework in terms of internationally accepted principles and best practice. Some of the amendments are identical to the relevant sections of both Acts, while others are specific to either the Long-Term Insurance Act or the Short-Term Insurance Act. In the first instance, the definition of the managing executive'' of insurance companies is expanded to include not only the chief executive officers and the executive management, but also senior managers who report directly to the CEO, as it is desirable, from a regulatory viewpoint, that both the CEO and the manager reporting to him or her be fit and proper persons and that the term fit and proper’’ apply not only to a person but also to the top management of a long-term insurer.

Other new definitions also became necessary to bring the definitions of certain words in line with those commonly used in accounting practice. An example is the term fair value'' to replace market value’’ in accordance with international accounting standards. Other amended definitions cater for provisions on the financial soundness valuation method in respect of assets, liabilities and capital adequacy requirements for long-term insurers.

The amendments to the said Acts are quite comprehensive, and it will not be possible to cover them all in the limited time at my disposal. I will, therefore, only refer to the more salient amendments.

As far as the regulation of advertising material related to insurance policies is concerned, the relevant subsection is expanded to ensure that advertising material in a long-term insurance policy includes the name of the long-term underwriting insurer. The amendment is a measure to prevent persons from carrying on unregistered insurance business and to afford the public an opportunity to verify the contents of the advertising material with the particular long-term insurer. The registrar may direct a person to either cease publishing or abstain from publishing certain advertising material if such material is misleading or contrary to the public interest.

Furthermore, the requirement that the registrar’s prior approval be obtained if a long-term insurer wishes to change its name, is expanded to include the requirement to obtain the registrar’s approval also if a translation, shortened form or derivative of the insurer’s name is changed. The amendment became necessary as the registrar has to determine whether the planned changes to the name are acceptable and to enable the registrar to keep records of any such changes.

It is also essential to prevent a long-term insurer from using a name closely related to the name of another insurer, as this may create and promote confusion and uncertainty amongst prospective clients.

At present the registrar must be notified whenever directors and managing executives of long-term insurers are appointed or their appointments are terminated. This requirement is expanded to also cover cases in which such persons resign their positions, and it enables the registrar to request further information from directors and managing executives who have resigned, or whose appointments have been terminated in circumstances that may prejudice the relevant insurer’s ability to comply with the provisions of the Act.

As such resignations and terminations of appointments may be the result of irregular circumstances in an insurer’s internal affairs, which might cause the interests of policy holders and other stakeholders to be at risk, it is necessary for information thereon to be given or to be available as soon as possible.

Section 26 of the Long-Term Insurance Act, 1998, imposes limitations on the control and the holding of shares and other interests in long-term insurers. To widen the net of such restrictions and to avoid indirect frustration of the objectives sought to be achieved by that section, limitations are also imposed on certain associates of persons primarily vested with such rights and interests. The expression associate'' is replaced by the termrelated party’’ and is necessary in order to be more closely in line with and to avoid misinterpretation with South African Statements of Generally Accepted Accounting Practice.

Section 44(1) of the Long-Term Insurance Act states that a person who is required to provide a policy or policy benefits as security for a certain transaction, must be given a free choice regarding certain matters. The amendment excludes policy loans from the said requirements and will only apply in a case in which the long-term insurer lends money to the holder of, and upon the security of, a long-term policy taken out with that insurer. The giving of policy loans is a long-standing practice and has become a standard commercial feature and facility of long-term policies.

It is a requirement of the Act that where a premium is paid in cash, a receipt, which contains certain information including the name of the insurance company, the policy number and the details of the recipient, be issued. As the current banking systems do not make provision for a bank to state the names of the insurance company and of the policy holder in receipts, banks are continually in breach of that requirement.

The section envisages protecting particularly the less sophisticated segment of the market in which premiums are paid in cash to a person collecting them on a frequent basis. As enough protection is built into the current banking system to safeguard a policy holder paying the premiums in cash to a bank, banks will be excluded from the relevant requirements.

Listed securities and shares issued by a foreign government or institution will be regarded as an asset in the Republic which long-term insurers must hold, if the registrar has recognised the stock exchange or the country in which a regulated market exists.

A few aspects of the amendment proposals are formal and textual, but, essentially, the proposals mean that the relevant assets will still be regarded as assets in the Republic. However, the stock exchange or the country within which a regulated market exists shall no longer be subject to recognition by the registrar.

Investing in a recognised stock exchange or in a country in which a regulated market exists is not necessarily a guarantee that this will be a good investment. The amendments will have the effect that greater responsibility will be placed on the directors of long-term insurance companies to assess the risks in investing in foreign stock exchanges and regulated markets.

That is the Insurance Amendment Bill in a nutshell, albeit a large nutshell. I request the House, on behalf of the Select Committee on Finance, for its support in the passing of the Bill. I thank you. [Applause.]

Debate concluded. Bill agreed to in accordance with section 75 of the Constitution.

       BOPHUTHATSWANA NATIONAL PROVIDENT FUND ACT REPEAL BILL

            (Consideration of Bill and of Report thereon)

Mr T RALANE: Chairperson and colleagues, actuaries were appointed to take over the administration of the Bophuthatswana National Provident Fund to establish financial and administrative control. The Bophuthatswana National Provident Fund was converted into a privately administered provident fund. The new fund was registered with the Registrar of Pension Funds Act and Income Tax Act.

In light of the above, this Bill seeks to: Firtsly, disestablish the Bophuthatswana National Provident Fund; secondly, transfer the assets and liabilities of the Bohuthatswana National Provident Fund to Bosele National Provident; and thirdly, repeal the Bophuthatswana National Provident Fund Act of 1979.

All affected stakeholders were consulted and the Bill has no financial implications for Government. The Select Committee on Finance recommends that this House supports this Bill. Thank you. [Applause.]

The DEPUTY CHAIRPERSON OF COMMITTEES: That concludes the debate. I shall now put the question. The question is that the Bill be agreed to. In accordance with Rule 63 I shall first allow political parties the opportunity to make their declaration of vote if they so wish. We shall now proceed to the voting on the question. Those in favour will say Aye'', those againstNo’’.

HON MEMBERS: Aye!

The DEPUTY CHAIRPERSON OF COMMITTEES: The majority of members voted in favour. I therefore declare the Bill agreed to in terms of section 75. [Applause.]

       SEFALANA EMPLOYEE BENEFITS ORGANISATION ACT REPEAL BILL

            (Consideration of Bill and of Report thereon)

Mr T RALANE: Chair and hon members, the Sefalana Employee Benefits Organisation, widely known as SEBO, was established by section 2 of the Sefalana Employees Benefits Organisation Act of 1989. The functions and objectives of SEBO were to operate and control each of the following five funds: Bophuthatswana Government Service Pension Fund; Bophuthatswana Super Annuation Fund; Bophuthatswana Unemployment Insurance Fund; Bophuthatswana Accident Fund; and Bophuthatswana National Provident Fund.

The first two of these funds were amalgamated into the Government Employees Pension Fund in terms of the provisions of Government Employees Pension Law with effect from 1 May 1996. The National Treasury, following the amalgamation absorbed 39 former SEBO employees into the department. The remaining two funds were transferred to the Department of Labour and the compensation commissioner respectively. The fifth and remaining fund, the Bophuthatswana National Provident Fund, was converted into a privately administered provident fund registered with the Registration of Pension Funds in terms of section 4 of the Pension Funds Act of 1956.

A Bill seeking to repeal the Bophuthatswana National Provident Fund Act of 1979 is also before this House. The effect of these changes is that there is nothing left for Sefalana Employees Benefits Organisation Act of 1989 to administer and the Act is still in force. This Bill thus seeks to disestablish SEBO and to repeal the said Act.

The Select Committee on Finance recommends that this House supports this section 75 Bill. Thank you. [Applause.]

The DEPUTY CHAIRPERSON OF COMMITTEES: That concludes the debate. I shall now put the question. The question is that the Bill be agreed to. In accordance with Rule 63 I shall allow political parties the opportunity to make their declaration of vote if they so wish. We shall now proceed to the voting on the question. Those in favour will say Aye.

HON MEMBERS: Aye!

The DEPUTY CHAIRPERSON OF COMMITTEES: Those against, No''. The Ayes’’ have it. The majority of members voted in favour. I therefore declare the Bill agreed to in terms of section 75 of the Constitution.

          FILLING OF VACANCIES ON NATIONAL YOUTH COMMISSION

(Consideration of Report of Joint Monitoring Committee on Improvement of Quality of Life and Status of Children, Youth and Disabled Persons)

The DEPUTY CHAIRPERSON OF COMMITTEES: As there is no speakers’ list I shall now put the question. The question is that the report be adopted. As the decision is dealt with in terms of section 65 of the Constitution, I shall first ascertain whether all the delegation heads are present in the Chamber to cast their provinces’ vote. Are all the delegation heads present?

In accordance with Rule 71 I shall first allow provinces the opportunity to make their declaration of vote if they so wish. We shall now proceed to the voting on the question. I shall do so in alphabetical order per province. Delegations heads please indicate to the Chair whether they vote in favour, or against or abstain from voting. Eastern Cape?

Ms B N DLULANE: Eastern Cape supports.

The DEPUTY CHAIRPERSON OF COMMITTEES: Free State?

Mr T S SETONA: Free State supports.

The DEPUTY CHAIRPERSON OF COMMITTEES: Gauteng?

Mrs D M RAMODIBE: Gauteng ea amohela. [Gauteng supports.]

The DEPUTY CHAIRPERSON OF COMMITTEES: KwaZulu-Natal

Ms B THOMSON: KZN ea ithekga. [KwaZulu-Natal supports.]

The DEPUTY CHAIRPERSON OF COMMITTEES: Limpopo?

Mr M I MAKOELA: Limpopo e a e thekga. [Limpopo supports.]

The DEPUTY CHAIRPERSON OF COMMITTEES: Mpumalanga?

Ms M P THEMBA: Mpumalanga ondersteun. [Mpumalanga supports.]

The DEPUTY CHAIRPERSON OF COMMITTEES: Northern Cape?

Mr M A SULLIMAN: Noord-Kaap ondersteun. [Northern Cape supports.]

The DEPUTY CHAIRPERSON OF COMMITTEES: North West?

Mr Z S KOLWENI: North West ke ea rona. [North West supports.]

The DEPUTY CHAIRPERSON OF COMMITTEES: Western Cape?

Mr F ADAMS: Western Cape supports.

The DEPUTY CHAIRPERSON OF COMMITTEES: All provinces have voted in favour. I therefore declare the report adopted. That concludes the business of the day and the House is adjourned.

The Council adjourned at 17:22. ____

            ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

ANNOUNCEMENTS:

National Assembly and National Council of Provinces:

1. Classification of Bills by Joint Tagging Mechanism: (1) The Joint Tagging Mechanism (JTM) on 27 May 2003 in terms of Joint Rule 160(3), classified the following Bill as a section 75 Bill:

   (i) Local Government: Property Rates Bill [B 19 - 2003] (National Assembly - sec 75).

2. Introduction of Bills:

 (1)    The Minister of Trade and Industry:


     (i)     Broad-Based Black Economic Empowerment Bill [B 27  -  2003]
          (National Assembly - sec 75) [Explanatory summary of Bill  and
          prior notice  of  its  introduction  published  in  Government
          Gazette No 24902 of 23 May 2003.]


     Introduction and referral to the Portfolio Committee on  Trade  and
     Industry of the National Assembly,  as  well  as  referral  to  the
     Joint Tagging Mechanism (JTM) for classification in terms of  Joint
     Rule 160, on 30 May 2003.


     In terms of Joint Rule 154 written views on the  classification  of
     the Bills may be submitted to the  Joint  Tagging  Mechanism  (JTM)
     within three parliamentary working days.

1. Bills passed by Houses - to be submitted to President for assent:

 (1)    Bill passed by National Council of Provinces on 28 May 2003:


     (i)     Exchange Control Amnesty and  Amendment  of  Taxation  Laws
          Bill [B 26 - 2003] (National Assembly - sec 77).


 (2)    Bills passed by National Council of Provinces on 29 May 2003:


     (i)     Insurance Amendment Bill [B 52B - 2002] (National  Assembly
           - sec 75).


     (ii)    Bophuthatswana National Provident Fund Act Repeal  Bill  [B
           13 - 2003] (National Assembly - sec 75).
     (iii)   Sefalana Employee Benefits Organisation Act Repeal Bill  [B
           14 - 2003] (National Assembly - sec 75).


     (iv)    Banks Amendment Bill [B 15B - 2003]  (National  Assembly  -
           sec 75).

National Council of Provinces:

1. Messages from National Assembly to National Council of Provinces in respect of Bills passed by Assembly and transmitted to Council:

 (1)    Bill passed by National Assembly on 29 May 2003 and  transmitted
     for concurrence:


     (i)     Public Protector Amendment Bill [B  6B  -  2003]  (National
          Assembly - sec 75).


     The Bill has been referred to the Select Committee on Security  and
     Constitutional Affairs of the National Council of Provinces.

1. Referrals to committees of papers tabled: The Fourth Economic and Social Rights Report of the South African Human Rights Commission for 2000-2002 is referred to the following Select Committees:

 Security and Constitutional Affairs;


 Public Services;


 Land and Environmental Affairs;


 Social Services; and


 Education and Recreation.


 Each committee to consider the Report and formulate their response  and
 recommendations thereto. Each committee to designate two Members of the
 committee to develop  a  composite  report  for  consideration  by  the
 Council.

TABLINGS:

National Assembly and National Council of Provinces:

Papers:

1. The Minister of Environmental Affairs and Tourism:

 (1)    Treaty between the Government of the Republic of Mozambique, the
     Government of the Republic of South Africa and  the  Government  of
     the Republic of Zimbabwe on the establishment of the Great  Limpopo
     Transfrontier Park, tabled  in  terms  of  section  231(3)  of  the
     Constitution, 1996.


 (2)    Explanatory Memorandum to the Treaty between the  Government  of
     the Republic of Mozambique,  the  Government  of  the  Republic  of
     South Africa and the Government of the Republic of Zimbabwe on  the
     establishment of the Great Limpopo Transfrontier Park.


 (3)    Annual Report of the Committee for  Environmental  Co-ordination
     for 2002.