National Council of Provinces - 28 June 2004

MONDAY, 28 JUNE 2004 __

          PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
                                ____

The Council met at 14:00.

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.

Mr M A MZIZI: Chairperson, I hereby give notice that at the next sitting day of the Council I will move on behalf of the IFP:

That the Council notes that -

(1) the Ekurhuleni Metro is in the process of finding a suitable site on which a R600 million hospital is to be built to serve the residents of Katlehong, Thokoza and Vosloorus (Kathorus); (2) the decision to build a new facility was taken due to the Natalspruit Hospital being situated in an area riddled with sinkholes, where the ground is gradually subsiding owing to underground soil erosion and failed attempts to stabilise the hospital foundation;

(3) although this is a decision worth applauding, there is great concern that the new facility could be built in an area that would be inaccessible to the poor, hence causing more problems for those who do not have money to spend on transportation costs; and

(4) it is important for this facility to be built in an area that would make it neutrally accessible to all the people of Thokoza, Vosloorus and Katlehong.

Mnr A WATSON: Agb Voorsitter, ek gee kennis dat die DA met die volgende sitting van die Raad sal voorstel:

Dat die Raad -

(1) met kommer kennis neem van die gerapporteerde pogings van die Nuwe Nasional Party om weer eens ‘n groot donasie te bekom in ruil vir die toekenning van sekere ontwikkelingsregte in Stellenbosch; en

(2) sulke dade of pogings tot misbruik van magte onomwonde verwerp. (Translation of Afrikaans notice of motion follows.)

[Mr A WATSON: Hon Chairperson, I hereby give notice that at the next sitting day of the Council I will move on behalf of the DA:

That the Council -

(1) notes with concern the reported attempts by the New National Party to yet again obtain a big donation in exchange for the allocation of certain development rights in Stellenbosch; and

(2) unequivocally rejects such actions or attempts to abuse power.]

CONGRATULATIONS TO COACH JAKE WHITE AND CAPTAIN JOHN SMIT ON SPRINGBOK INTERNATIONAL TEST WINS

                         (Draft Resolution)

Mr N M RAJU: Deputy Chairperson, I move without notice:

That the Council -

(1) notes that the Springboks successfully completed their hat trick of international test wins, culminating in a devastating, comprehensive defeat of Wales by 53-18 last Saturday, 26 June 2004, thereby signalling the resuscitation of SA rugby of the halcyon days of yore;

(2) congratulates coach Jake White and captain John Smit for their team’s meritorious performances and expresses the hope that the Springboks’ impending expedition down under next Monday for the tri-nations tour in their quest for equally satisfying victories against the All Blacks and the Wallabies will be crowned with success;

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

CONGRATULATIONS TO SARS COMMISSIONER PRAVIN GORDHAN ON RE-ELECTION AS
      CHAIRPERSON OF COUNCIL FOR THE WORLD CUSTOMS ORGANISATION

                         (Draft Resolution)

Mr T RALANE: Deputy Chairperson, I move without notice:

That the Council -

(1) notes that the Council for the World Customs Organisation held its 104th session at the weekend in Brussels, Belgium;

(2) further notes, with delight, that SA Revenue Service Commissioner Pravin Gordhan was unanimously re-elected as Chairperson of the Council for the World Customs Organisation for a historic fourth time; and

(3) extends its congratulations to Mr Gordhan and acknowledges that he will execute his duties with distinction.

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

CONGRATULATIONS TO THE ANC ON ITS VICTORY IN RECENT BY-ELECTIONS IN THE EASTERN CAPE

                         (Draft Resolution)

Ms B N DLULANE: Deputy Chairperson, I move without notice:

That the Council -

(1) notes the decisive victory of the ANC in the recent by-elections in wards 4, 18, 19 and 30 of the KSD Municipality in the Eastern Cape;

(2) believes the results constitute a complete rejection of the policies of organisations such as the UDM whose control of these wards have not translated into any meaningful improvement in the quality of life of people living in this municipality;

(3) further believes the ANC’s victory is an affirmation of the confidence people have in the ability of the ANC as the only organisation that can ensure access to affordable services for the people in the KSD Municipality; and

(4) congratulates the ANC on its victory.

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

        ELECTION OF V V Z WINDVOЁL AS CHIEF WHIP OF THE NCOP

                         (Draft Resolution)

The ACTING CHAIRPERSON OF COMMITTEES: Deputy Chairperson, I move the draft resolution printed on the Order Paper in the name of the Chairperson of the National Council of Provinces, as follows:

That the Council elect Mr V V Z Windvoël as Chief Whip of the National Council of Provinces.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): As there is no speakers’ list, I shall now put the question and the question is that the motion be agreed to. As this decision is dealt with in terms of section 65 of the Constitution, I need to ascertain whether all delegation heads are present in the Chamber. Are you all present? Yes, all delegation heads are present. In accordance with Rule 71 I shall first allow provinces the opportunity to make their declarations of vote if they so wish. Is there any province that wishes to do so? None.

We shall now proceed to the voting on the question. I shall do this in alphabetical order per province. Delegation heads must please indicate to the Chair whether they vote in favour of, against or abstain from voting. Eastern Cape?

Ms B N DLULANE: Sihambisana nawo umbono. [We support.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Free State?

Mr T S SETONA: We vote in favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Gauteng?

Mr S SHICEKA: We support. The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): KwaZulu-Natal?

Mr Z C NTULI: KwaZulu-Natal supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Limpopo?

Ms M M A NYAMA (Limpopo): We support.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Limpopo supports. Hon members, please assist the special delegates in the House. You are aware that we are using very sophisticated microphones here. [Laughter.] Mpumalanga?

Ms M P THEMBA: Re a tlatsa. [We support.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Northern Cape?

Mr M A SULLIMAN: Northern Cape supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): North West?

Mr Z S KOLWENI: North West supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Western Cape?

Mr M FRANSMAN (Western Cape): Western Cape supports.

The DEPUTY CHAIRPERSON OF THE NCOP: All provinces voted in favour. I therefore declare the motion agreed to in terms of section 65 of the Constitution.

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

         ELECTION OF MEMBERS TO JUDICIAL SERVICE COMMISSION

The CHIEF WHIP OF THE COUNCIL: Hon Deputy Chair, I move:

That the Council designates the following members to serve on the Judicial Service Commission: Ms J L Kgoali, Mr M L Mokoena, Mr T S Setona, and Dr F J van Heerden. The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): As there is no speakers’ list, I shall now put the question. The question is that the motion be agreed to. As the decision is dealt with in terms of section 65 of the Constitution, I shall first ascertain whether all delegation heads are present in the Chamber to cast their provinces’ votes. Are you all present? Yes. According to Rule 71, I shall first allow provinces the opportunity to make their declarations of vote if they so wish. Is there any province that wishes to do so? None. We now proceed to voting on the question. I shall do so in alphabetical order per province. Delegation heads must indicate to the Chair whether they vote in favour of, against or abstain. Eastern Cape?

Ms B N DLULANE: Re a o thekga. [We support.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Free State? Have you inserted your card?

Ms E S MABE: Free State agrees.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Agreed. Please insert your card. Gauteng? Mr S SHICEKA: Re a dumela modula sitilo [We agree, Chair.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): KwaZulu-Natal?

Mrs M N OLIPHANT: Siyawuxhasa sihlalo. [We agree, Chair.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Limpopo?

Ms M M A NYAMA (Limpopo): We agree.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Mpumalanga?

Ms M P THEMBA: Siyawusekela. [We agree.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Northern Cape?

Mr M A SULLIMAN: Ke a rona. [We agree.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): North West? Mr P F VILAKAZI (North West): We agree.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Western Cape?

Mr M FRANSMAN (Western Cape): Agreed.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): All provinces voted in favour. I therefore declare the motion agreed to in terms of section 178(1)(i) of the Constitution.

Motion agreed to in accordance with section 178(1)(i) of the Constitution.

           ELECTION OF MEMBERS TO MAGISTRATES' COMMISSION

The ACTING CHAIRPERSON OF COMMITTEES: Chairperson, I move:

That the Council designates the following members to serve on the Magistrates’ Commission: Mr M J Mahlangu, Mr V V Z Windvoël, Ms E S Mabe, Mr M A Mzizi, and Mr D A Worth (alt). The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): As there is no speakers’ list, I shall now put the question. The question is that the motion be agreed to. As the decision is dealt with in terms of section 65 of the Constitution, I will first ascertain whether all delegation heads are present in the Chamber to cast their provinces’ votes. Are they all present? Yes, they are all present. In accordance with Rule 71, I shall first accord or allow provinces the opportunity to make their declarations of vote if they so wish. Is there any province that wishes to do so? None. We now proceed to the voting on the question. I shall do so in alphabetical order per province, and delegation heads must please indicate to the Chair whether they vote in favour of, against or abstain. Eastern Cape?

Ms B N DLULANE: Supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Free State?

Mr T S SETONA: Votes in favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Gauteng? Mr S SHICEKA: Agreed.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): KwaZulu-Natal?

Mr Z C NTULI: IkwaZulu-Natal iyavuma. [KwaZulu-Natal agrees.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Limpopo?

Mrs M M A NYAMA (Limpopo): We vote in favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Mpumalanga?

Ms M P THEMBA: Mpumalanga supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Northern Cape?

Mr M A SULLIMAN: Ondersteun. [Supports.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): North West?

Mr P F VILAKAZI (North West): Supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Western Cape?

Mr M FRANSMAN (Western Cape): Agreed.

The DEPUTY CHAIRPERSON OF THE NCOP: (Mr M J Mahlangu): All provinces voted in favour of the motion. I therefore declare the motion agreed to.

Motion agreed to.

            ELECTION OF MEMBERS TO PAN-AFRICAN PARLIAMENT

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): The Chief Whip of the Council will move the names. I just want to remind members that the number of members going to the Pan-African Parliament is five, and we are going to vote per name, not en bloc.

The CHIEF WHIP OF THE COUNCIL: Hon Chairperson, I move:

The following names as our South African Parliament representatives to the Pan-African Parliament:

That Ms B Mbete, Mr M J Mahlangu, Ms F Hajaig, Adv Z L Madasa and Ms S C Vos be elected as members of the Pan-African Parliament.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): We will now vote for those names individually as I indicated right from the outset. We are not going to vote for them en bloc. I now put forward the name of Mrs B Mbete, the Speaker of the National Assembly. As there is no speakers’ list, I shall now put the question. The question is that the motion be agreed to. As the decision is dealt with in terms of section 65 of the Constitution, I shall first ascertain whether all delegation heads are present in the Chamber to cast their provinces’ votes. Are you all present? Can we have a little bit of life? Maybe somebody is out; I do not know for now. I’ve got to record all these things.

In accordance with Rule 71, I shall first allow provinces the opportunity to make their declarations of vote if they so wish. Is there any province that wishes to do so? None. We shall now proceed with the voting on the question. I shall do so in alphabetical order per province. Delegation heads must indicate to the Chair whether they vote in favour of, against or abstain from voting for the name I put forward. Eastern Cape?

Ms B N DLULANE: Supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Free State?

Mr T S SETONA: Free State votes in favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Gauteng?

Mr S SHICEKA: Re a dumela modula sitilo. [We agree, Chairperson.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): KwaZulu-Natal. Mrs M N OLIPHANT: KwaZulu-Natal is in favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Limpopo?

Mrs M M A NYAMA (Limpop): In favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Mpumalanga?

Ms M P THEMBA: Steun [Supports.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Northern Cape

Mr M A SULLIMAN: In favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): North West?

Mr P F VILAKAZI (North West): Re a amogela. [We agree.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Western Cape? Mr M FRANSMAN (Western Cape): Supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Nine provinces voted in favour of the motion, I therefore declare the motion agreed to.

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

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): We now come to the second name - that of Mr M J Mahlangu. There is no speakers’ list. I shall now put the question. The question is that the motion be agreed to. As the decision is dealt with in terms of section 65 of the Constitution, I shall first ascertain whether the delegation heads are present in the Chamber to vote for their provinces. Are you all present? According to Rule 71, I’ll accord the provinces a chance or an opportunity to make their declarations of vote if they so wish. Is there any province that wishes to do so? None. We shall now proceed to the voting on the question. I shall do so in alphabetical order per province. Delegation heads must indicate to the Chair whether they vote in favour of, against or abstain. Eastern Cape? Ms B N DLULANE: Impuma Koloni iyaxhasa. [Eastern Cape supports.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Free State?

Mr T S SETONA: Free State votes in favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Gauteng?

Mr S SHICEKA: Agreed.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): KwaZulu-Natal.

Mrs M N OLIPHANT: KwaZulu-Natal iyasekela. [KwaZulu-Natal supports.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Limpopo?

Mrs M M A NYAMA (Limpopo): Limpopo votes in favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Mpumalanga?

Ms M P THEMBA: Mpumalanga votes in favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Northern Cape?

Mr M A SULLIMAN: In favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): North West?

Mr P F VILAKAZI (North West): Vote in favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Western Cape?

Mr M FRANSMAN (Western Cape): Supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Nine provinces voted in favour of the motion. I therefore declare the motion agreed to.

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

The CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): I now come to the name of Ms F Hajaij as moved. There is no speakers’ list. I shall now put the question. The question is that the motion be agreed to. As the decision is dealt with in terms of section 65 of the Constitution, I shall first ascertain whether all delegation heads are present in the Chamber to cast their provinces’ votes. Are all delegation heads present? Yes. According to Rule 71, I’ll allow provinces the opportunity to make their declarations of vote if they so wish. Is there any province that wishes to do so? None. We shall now proceed to the voting on the question. I shall do so in alphabetical order per province. Delegation heads must indicate to the Chair whether they vote in favour of, against or abstain. I now call upon the Eastern Cape.

Ms B N DLULANE: Siyavuma. [We agree.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Free State?

Mr T S SETONA: Free State votes in favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Gauteng?

Mr S SHICEKA: Siyavuma baba. [We agree, Sir.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): KwaZulu-Natal?

Mrs M N OLIPHANT: KwaZulu-Natal is in favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Limpopo?

Mrs M M A NYAMA (Limpopo): Re a dumela. [We agree.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Mpumalanga?

Ms M P THEMBA: Mpumalanga supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Northern Cape? Mr M A SULLIMAN: Siyavuma. [We agree.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): North West?

Mr P F VILAKAZI (North West): We agree.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Western Cape?

Mr M FRANSMAN (Western Cape): Supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Nine provinces voted in favour of the motion. I therefore declare the motion agreed to.

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

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): I now proceed to the name of Adv Z L Madasa as moved. As there is no speakers’ list I shall now put the question. The question is that the motion be agreed to. As the decision is dealt with in terms of section 65 of the Constitution, I shall first ascertain whether all delegation heads are present in the Chamber to cast their provinces’ votes. Are you all present? According to Rule 71, I shall first allow provinces the opportunity to make their declarations of vote if they so wish. Is there any province that wishes to do so? None. We shall proceed to voting on the question. I shall do so in alphabetical order, per province. Delegation heads must indicate to the Chair whether they vote in favour of, against or abstain from voting. Eastern Cape?

Ms B N DLULANE: Ke a rona. [We support.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Free State?

Mr T S SETONA: Free State votes in favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Gauteng?

Mr S SHICEKA: Gauteng supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): KwaZulu-Natal? Mrs M N OLIPHANT: KwaZulu-Natal supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Limpopo?

Mrs M M A NYAMA (Limpopo): Ke la rena leo. [We agree.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Mpumalanga?

Ms M P THEMBA: Siyavumelana. [We agree.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Northern Cape?

Mr M A SULLIMAN: Northern Cape supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): North West?

Mr P F VILAKAZI (North West): North West supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Western Cape? Mr M FRANSMAN (Western Cape): We support.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Nine provinces voted in favour. I therefore declare the motion agreed to.

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

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): I now call the last name. If I’m correct it is that of Ms S C Vos. As there is no speakers’ list, I shall now put the question. The question is that the motion be agreed to. As the decision is dealt with in terms of section 65 of the Constitution, I shall first ascertain whether all delegation heads are present in the Chamber to cast their provinces’ votes. Are you all present? In accordance with Rule 71, I shall first allow provinces the opportunity to make their declarations of votes if they so wish. Is there any province that wishes to do so? None. We shall now proceed to voting on the question. I shall do so alphabetically per province. Delegation heads please indicate to the Chair whether you vote in favour of, against or abstain from voting. Eastern Cape? Ms B N DLULANE: In favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Free State?

Mr T S SETONA: In favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Gauteng?

Mr S SHICEKA: Supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): KwaZulu-Natal?

Mrs M N OLIPHANT: Siyaxhasa. [We support.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Limpopo?

Mrs M M A NYAMA (Limpopo): We vote in favour of.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Mpumalanga? Ms M P THEMBA: Supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Northern Cape?

Mr M A SULLIMAN: In favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): North West?

Mr P F VILAKAZI (North West): In favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): Western Cape?

Mr M FRANSMAN (Western Cape): Supports.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): All provinces have voted in favour of the motion. I therefore declare the motion agreed to.

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

                         APPROPRIATION BILL

                           (Policy debate)

Vote No 5 - Provincial and Local Government:

Vote No 10 - Public Service and Administration:

The MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT: Chairperson, hon members and delegates, three days ago members of the executive arm of Government of all three spheres of government met at a special workshop in Pretoria. This was an occasion for us as government practitioners to reflect on our institutional circumstances, and to orchestrate intersphere synergies that are favourable to the realisation of a high-growth economic trajectory.

As members and delegates will recall, apartheid exclusionary policies were based on the employment of the trope of South Africa as a country of nations, each with the possibility of developing along its own separate lines. The ideology of politico-economic exclusion and domination was entrenched through a racially based tricameral parliament; ten Bantustans with feeble legislative and executive powers and functions; four provincial administrative entities; and a racially segregated system of local government.

The sinister legacy of that government system and its policies continue to define the social, political and economic challenges of present-day South Africa. As we speak, an intolerably high number of people live in households that are not electrified; households that are without sanitation; households that are without clean drinkable water, or are unable to access services for refuse removal. Millions of people are without jobs and many able-bodied citizens have been reduced to recipients of social grants.

We came into government in 1994 inspired by a vision that assigns to public institutions and policy the role of mobilising the economic resources of our country towards the betterment of the lives of all our people. In 1996 Parliament codified this our vision through the enactment of the Constitution of the Republic of South Africa. The Constitution establishes three distinctive, interdependent and interrelated spheres of government. Drawing from the reservoir of our ten years of experience we should be able at least to present some tentative perspectives on the best possible way of organising ourselves, in order to be equal to the tasks that our entry into the second decade of freedom entails. The experience of ten years has produced a balance sheet, which is at once a source of pride to our Government and a source of optimism to millions of South Africans, who for decades were condemned to a life bereft of hope.

Whereas in 1994 only 2,6 million people were benefiting from various social grants, by 2003 the number of citizens covered by our social net had increased to 6,8 million. In 1996, 60% of the households had access to clean water. By 2001 the number of households with access to clean water had risen to 85%. In 1996, 32% of households had electricity connections. By 2001 the coverage of electricity connections had been extended to 70% of our country’s households. And, whereas in 1994 only 49% of households had access to sanitation, by 2001 the number of households with access to sanitation had risen to 63%.

On the basis of the foregoing experience we understand that social consensus, to which Government must be responsive, is mandating an improvement in the performance of the state. The state is being called upon to increase its own capacity for poverty alleviation and reinforcement of national pride. This goal can only be achieved through focused implementation of policy, better integration and alignment across spheres of Government, and improved contact between Government and the people.

Quite clearly we need an intergovernmental relations framework, which provides for greater opportunity to give practical effect to the government- wide programme of action. It must allow our three spheres of government the possibility to function more and more as an integrated and coherent unit. The synergies we call for must be manifested in the areas of strategic planning, budgeting and implementation of Government policy. In practical terms, all three spheres of government must be single-minded in their pursuit of the goals of the moment.

They must work together to ensure an improvement in the provision of basic services to our people, and to ensure a proper alignment between the policy on free basic services and our policy on indigence. They must together facilitate the provision of social grants to deserving citizens. They must make it possible for line-function departments, which are charged with the responsibility of providing electricity and clean water, to realise the agreed targets.

The plans of all the entities that comprise our spheres of government must indicate how they are all going to contribute to the task of providing more than 300 000 households with basic sanitation during the current financial year. What I have just outlined are the immediate short-term steps that need to be undertaken. In the medium to long term we have to craft a framework that effectively responds to the report of the Presidential Review Commission, which was released in February 1998.

The report concluded that improved information flows between and within sectors in all spheres of government is a matter of considerable importance. It also stated that intergovernmental relations between local government and the other two spheres is weak and will need to be strengthened. It observed that there is a strong need for the development of a co-ordinating mechanism at national level, and that there is no institution assigned with responsibility for overall planning at either national or provincial level. This will need to be addressed. Subsequent to the release of the Commission’s report, Government conducted an intergovernmental relations audit, which reached many conclusions and made a number of recommendations. The audit report was released at the end of 1999. Among other things, the report noted that there was a lack of interaction between local, provincial and national governments as they strategise for growth and development.

Municipalities do not interact with provincial government in formulating integrated development plans, and likewise, provincial budgets are compiled without reference to local plans. The report said that there is a need to develop the capacity of organised local government and to facilitate the interaction between municipalities, provincial and national governments. It also urged provincial government to budget for municipal support, monitoring and intervention.

By the end of the first term of democratic government the intergovernmental relations system was clearly very young and it lacked coherence in many areas. However, with the establishment of the new local government system at the end of 2000 it became possible to conceive of the intergovernmental relations system more holistically, and to focus on areas that are crying out for refinement.

As honourable members are aware, we have Minmecs, which function as sectoral forums to co-ordinate work in areas of concurrent responsibility between national and provincial spheres. The other two structures, the Budget Council and the Budget Forum, provide opportunities for provinces and municipalities to work with national Government on budgetary and fiscal policy matters.

In addition to these, we established the President’s Co-ordinating Council in October 1999. The PCC is there for the purpose of enhancing the ability of the provincial executive councils and the South African Local Government Association to impact on the elaboration of national priorities.

The above-mentioned experiments have resulted in marked improvements with regard to the promotion of intersphere dialogue and co-ordination. They enabled us to forge delivery-oriented partnerships around initiatives such as the Integrated Sustainable Rural Development Programme and the Urban Renewal Programme. These experiences bear on future lessons to be taken on board as we implement the Extended Public Works Programme and the Municipal Infrastructure Grant for which the respective amounts of R45 billion and R15, 6 billion have been allocated.

It is our intention to put before this House and the National Assembly the Intergovernmental Relations Framework Bill. The Bill will serve in the next session of the House. We look forward to insightful contributions from members and delegates. The Bill is meant to take us to the next stage in the learning curve. Above all, it is meant to improve our collective capacity for serving our country and our people. We look forward to your co- operation. I thank you. [Applause.]

The MINISTER FOR THE PUBLIC SERVICE AND ADMINISTRATION: Hon Chairperson, hon members, delegates and community members who have joined us here today as part of the audience to this august House, as stated by my colleague, Minister Mufamadi, South Africa is indeed a diverse country with many differences, including regional ones. However, we have a shared reality of those who are comfortable and self-sufficient, and those who are indigent, and largely dependent on the state for social services and assistance with survival.

Ours is the reality of two economies, and the challenge facing us at the beginning of our second decade of democratic governance is to use the machinery of the state to bridge the divide between them. We must not accept that poverty is the permanent fate of some, and prosperity the fate of others. Nor should we think that the two economies are a permanent feature of our society. We should rather understand the current context from a historical perspective and recognise that it can be changed.

The African writer and intellectual, Ben Okri, reminds us that we, at the start of the 21st Century, need to take action to create a new world:

Will you be at the harvest, Among the gatherers of new fruits? Then you must begin today to remake Your mental and spiritual world, And join the warriors and celebrants Of freedom, realisers of great dreams.

My Ministry is responsible for creating policy frameworks for the whole of the public service regarding the transformation of the human resources and organisational aspects of this massive organisation. It comprises the Department for Public Service and Administration, the South African Management Development Institute, the State Information Technology Agency and the Centre for Public Service Innovation, which provide the frameworks and policy platforms that line departments need to succeed in their programmes.

The Public Service Commission which reports to Parliament, and whose budget vote is appropriated via this Ministry, monitors and evaluates practices and promotes professional ethics in the Public Service. The close relationship with Parliament serves as an important democratic check of the legislature over the executive branch of government.

The electorate has given us a strong mandate during the last election for the policy agenda of the ANC to prevail in all provinces. In this way, we can ensure the absolute unity of vision and commitment to our developmental goals.

We noted in the respective state of the province addresses by premiers the recognition granted to the kinds of initiatives that we drive from this portfolio, and how they indicated that they have put in place initiatives and mechanisms to take forward the required priorities and issues.

Our premiers understand the centrality of the capacity and capability of our human as well as organisational resources. They understand the need for us to have a longer-term perspective on improving public sector employment, through initiatives such as Premier Molewa’s introduction of Public Service bursary schemes. They recognise the need for diversity management and affirmative action through the involvement of women in policy formulation such as Premier Shilowa’s women dialogue meetings and the establishment of gender units in all departments and all local governments in KwaZulu-Natal. Premier Rasool, among others, has flagged the very important issue of better integration between government departments and also between parastatals, nongovernmental organisations, communities and businesses. Our premiers understand the importance of ICT and anticorruption in ensuring that we make the best of our public resources in order to fast-track improvement of life for our people.

The past ten years have been devoted to creating a public service framework that has addressed the apartheid legacy while creating a platform for the future. The next phase of the public sector transformation will make the People’s Contract a reality.

We have six broad-based priority areas in the coming few years. The first is to ensure that administrative practices are in line with the drive to create a developmental state and that Batho Pele is wholeheartedly embraced as the integrating organisational culture for the whole of the public service. Secondly, we are focusing on the development and management of our human resources. Thirdly, we are looking at improving governance, leadership and management; and fourthly, revisiting the macro-organisation of the state to ensure that integration and co-ordination are enabled, addressing the need for a single public service and streamlining the activities of diverse state owned entities.

In terms of the last two areas, we are looking at preparing for better policy implementation by, amongst other things, building our capacity to support and intervene where needed and removing unnecessary red tape where possible and finally, strengthening monitoring and evaluation systems so that decision-making is evidence-based rather than drawing on assumptions.

Creating an effective and professional Public Service requires a focus on both management and administration. Public management involves mastering the art of governance, including giving meaning to principles such as effectiveness, efficiency, transparency and accountability, while administration is about the day-to-day systems and procedures that make governance work so that institutions and resources are effectively utilised. Batho Pele is the Public Service’s improvement programme, and over the coming year it will be expanded and made more visible and effective. We will see visits, spot checks and inspections being used to assess general compliance with Batho Pele requirements.

The Public Service Human Resource Development Strategy is now in place and workshops have been held to communicate it and help departments to develop their own strategies. Cabinet has approved proposals to institutionalise and strengthen internships and learnerships in the Public Service as vehicles to fight unemployment and to develop skills targeting the youth, school leavers and unemployed graduates. An amount of R106 million has been made available to the Public Service Seta from the National Skills Fund for this exciting project, which will form a major component of its work for the coming year. We are committed to ensuring that the Public Service Seta functions better, and we are going to use the next three months to put in place a turnaround strategy which will review the institutional arrangements as they stand. There are a number of other areas that one could refer to on skills development but there is no enough time today.

In terms of partners in building Public Service skills, an important component of building professionalism in the Public Service is the maintenance of sound relations between the state as employer and the people who work for it. We are at the moment involved in a collective bargaining process. I’m not going to talk about percentage increases and what the outcome will be because we have put in place that institution and we negotiate within that institution, and not elsewhere. However, a new multiterm agreement needs to be negotiated, while restructuring will remain a priority area.

Macro benefits such as a housing and medical aid as well as the issue of the determination and retention of scarce skills will be high on the collective bargaining agenda. Assistance and advice to departments on labour relations matters, as well the handling of disputes that impact on national human resources and labour relations policies or national agreements, will remain a focus area. It is also envisaged that the labour relations framework for the Public Service will be implemented during the course of this financial year.

We will strongly rely on the leadership in labour unions and employee organisations to assist with promoting the change in the organisational culture that we seek to bring about in the Public Service and the promotion of the developmental agenda, as outlined in the political programme of the ANC, the majority party in this Government and Parliament. Encouraging commitments in this regard is forthcoming from the labour leadership.

Corruption is recognised globally as a major threat to sustainable development. Provinces are playing a crucial role in fighting the corrupt behaviour of officials. During the weekend we saw the success achieved by the health MEC from the Gauteng province who announced the dismissal of government officials who were found guilty of theft of state property in the health system. In November a national anticorruption forum will take place. It will include a diverse range of stakeholders. The Public Service Commission will lead this multisectoral task team. The forum secretariat is arranging this summit.

The hon Minister Mufamadi referred to the issue of integration in much more detail, but I just want to emphasise that currently the Public Service in South Africa comprises national and provincial government. It does not include the local government spheres and public entities. We have agreed that a single Public Service should be created, encompassing all three levels of government. A comprehensive review of public entities should take place in order to maximise integration. An overarching regulatory framework for public entities will be developed in line with the findings of the project that we are working on. It will be completed by the end of July. We trust that these findings will also result in improvements at provincial and local levels.

The Batho Pele e-gateway provides comprehensive information on Government’s services, from a single portal that can be found at the Government website which is www.services.gov.za. I would encourage all members and delegates of this Council to visit that website. The President in his response to his Budget Vote urged members to answer the questionnaire that appears on this site. I am sure all members are proficient in their ICT skills and will be able to do so. Access to the portal will be possible at selected multipurpose community centres and at Post Office Internet terminals.

We have, for the purposes of the launch at the end of July, made it accessible across eight of the nine provinces at specific MPCC centres. Sixteen new MPCCs will be launched at the end of this year, and a plan will be finalised to have at least one of these in each of our 284 municipal areas.

By the end of this year the first community development workers would have completed their initial training. They will then be working in the jurisdiction of various local authorities, while being employed by the respective provincial governments. These community development workers are Public Service employees of a new type. They are tasked with serving as a catalyst and bringing services into communities while also releasing those energies and resources that are found in communities.

These new public servants will contribute towards integration by helping to align development initiatives with local plans and processes. However, the institutional arrangements for managing these human resources are complex and are bound to lead to some initial problems. We will rely on role- players, such as members of Parliament, to assist in facilitating the smooth institutionalisation of these workers, and to form part of the learning network and action research team that we intend creating around the implementation of the community development workers.

In my last Budget Vote I spoke about the initiative, “From Red Tape to Smart Tape”, which is about easing the administrative burden of Public Service delivery. We have launched a red tape challenge, and in the process we hope to put red tape at the centre of the Public Service discourse and attention. The first challenge ends at the end of July, after which point the most innovative and effective solutions will be selected for recognition and implementation.

In terms of special interventions, members may recall and be very much aware of the Eastern Cape intervention. The President and the Premier of the Eastern Cape commissioned this late in 2002. The Premier’s Office, the provincial treasury, the Department of Public Service and Administration and the Public Service Commission managed this intervention by deploying a multiskilled and multidepartmental team with the co-operation of the Eastern Cape. Today I want to announce that we have, in great part, implemented the turnaround plans developed in the first half of last year.

In consultation with Premier Balindlela, we have also established arrangements that will ensure ownership and sustainability to complete the implementation. We have also identified additional activities to support these processes and arrangements. A monitoring mechanism has also been established in the office of the Premier, with representatives of the relevant national departments participating. We will be creating a dedicated capacity in my portfolio to attend to the increase in requests for assistance with the implementation of our policy frameworks, and to improve on Public Service delivery. We will be working very closely with Minister Mufamadi on this initiative. The President also alluded to this matter.

We see this as a very important role for ourselves with regard to national and provincial administration. We also trust that stronger capacity at provincial level will result in ensuring that the constitutional role of providing support to local authorities, where required, will be fulfilled.

In terms of innovation and strategies for learning and growing, we have observed that our provinces are very strong at solving problems and at implementing innovative solutions. This has also been acknowledged internationally by the United Nations and the Commonwealth through the shortlisting of various initiatives. We have seen the programmes rolled out in provinces. I will not go into those examples today, but they are available in more detail in the input that I am delivering.

I further wish to stress the importance of accurate and reliable information in improving performance. The President made the call for monitoring and evaluation to be treated as a national priority. We have noted that several of our provincial Premiers have chosen to highlight this aspect during their respective state of the province addresses that they delivered since April.

A Government-wide framework should comprise a number of differentiated systems, brought together in an integrated analysis centre, which are able to give meaning to a limited number of defined focus inputs. This system will rely on complete integration and seamless functioning across the traditional divides of the spheres of government. We believe that such an integrated system will facilitate learning, performance improvement and accountability.

The thread needed to link the many elements of the Public Service management framework is that of performance management. While a basic policy and implementation framework is already in place, it is not being implemented with the necessary rigour. Departments have had the opportunity to implement and apply the performance management and development system at senior management level for just over two years now. Unfortunately we still get feedback from many departments and various provinces where this system is still not implemented at the management level. Over the coming year performance management practices will be promoted, and we will provide various kinds of support to ensure that that policy gets better implemented.

In conclusion, I would like to state that as a proud member of the ANC Government it is important to take forward the clear mandate we have received earlier this year. This mandate is captured in the People’s Contract. The programmes that have been presented to this House in the 2004- 05 Budget Vote directly address this People’s Contract.

I would like to express my gratitude to the Chairperson and members of the Select Committee on Local Government and Public Service for their consistent support and dedication. It is welcomed that this committee has already started to assert itself much more strongly, especially since our work programme has a significant provincial aspect to it.

I would also like to thank the Chairperson of the Public Service Commission and all commissioners, the directors-general and chief executive officers of the institutions in my portfolio. I would like to announce to the NCOP that Professor Richard Levin has been appointed as Director-General for the Department of Public Service and Administration. I would also like to extend a special word of thanks to Mr Alvin Phumudzo Rapea for carrying a heavy burden whilst acting as director-general of this department over an extended period. This happened when a significant component of the department, including the former DG, were deployed to the Eastern Cape.

I want to thank the various boards that have served under me. I also wish to state that without these officials the department and institutions would not have performed as they did. So they should take a bow, but work harder as well. We can see that the pressure is on.

It would be remiss of me if I did not thank my family: my husband, Jabu, for his commitment and camaraderie; Nothando, Themba and Solomzi for their love, support and their critique of our work - and they are the greatest critics. I also wish to thank my mother and mother-in-law for their understanding and support.

The challenge remains that the building of the necessary ethos and value systems amongst our public servants, and across all of our public sector organisations continues. I have quoted Ben Okri earlier, and I want to conclude again with his words:

You can’t remake the world without remaking yourself. Each new era begins within. It is an inward event with unsuspected possibilities. For inner liberation, we could use it to turn on our inward lights. We could use it to use even the dark and negative things positively. We could use the new era to clean our eyes to see ourselves more clearly. Only free people can make a free world.

I thank you. [Applause.]

Mr S SHICEKA: Chairperson, we had a gentleperson’s agreement between myself and the programming Whip, including the Ministers, that I am going to get the remnants of their time. This means that what you see in front of you as the time given to me to address the House is not accurate.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): That has not been communicated to me.

Mr S SHICEKA: Hon Deputy Chairperson, Ministers, Deputy Minister, MECs, special delegates and colleagues, the committee undertook a budget review of the Votes of the Department of Provincial and Local Government, the Department of Public Service and Administration, SAMDI as well as the Public Service Commission. We also engaged the National House of Traditional Leaders, the State Information Technology Agency and Municipal Demarcation Board.

The responsibility of the governance and administration cluster is not to put mortar and bricks on the ground, but to build structures and develop systems of a developmental state. They should be combat-ready to decisively deliver services aimed at creating a better life for all our people. The structures must be aligned and be able to talk to one another, and build a culture of respect within the Public Service that views its citizens as employers and bosses.

Allow me briefly to look at where we come from; where we are and therefore where we want to be. The most significant achievement in the area of transformation since 1994 has been the dismantling of the apartheid state and all its remnants and laying the foundation for the creation of a nonsexist, nonracial, democratic and developmental state. This process has seen the shift from over 1 200 racially based municipalities, four administrations and 10 Bantustans into an ultimately strong central government, nine provinces and 284 democratically elected municipalities. This revolutionary change was made possible by the quest and the commitment of our people to elect leaders of their choice in the three previous national and provincial elections, as well as the 2000 local government elections.

In the past 10 years the intergovernmental relations and the co-ordination of the different spheres of government have surely and steadily improved. National and provincial spheres of government are increasingly working together in a collaborative and co-ordinatory manner on key national priority programmes, such as development planning, provision of free basic services, municipal infrastructure, municipal investment, urban renewal programmes and integrated sustainable rural development.

The Budget for the 2004-2005 financial year and the medium-term has been informed by the anticipated electoral victory. Priorities and programmes have been aligned to Government’s broad strategic outlook, which includes building a people’s contract that would unite South Africans in efforts to create jobs, fight poverty, reinforce national pride, improve the performance of the state through focused implementation, achieve better integration and alignment across all spheres of government as well as direct contact with our people, to address the consequences of social transition - including interventions to address the two-economies paradigm

  • and focus on the national spatial development perspective, improving the regional involvement and Nepad, including intervention to restore sociopolitical normality and achieving high growth in SADC.

The rationalisation of infrastructure grants and programmes by Government departments into municipal infrastructure grants is commended by the committee. We believe that this flagship programme will contribute to major efforts that are directed towards job creation and poverty alleviation in our country. As indicated by the President, the focus of infrastructure will be in the 21 development nodes in both rural and urban areas. The expected benefits of this programme will be to improve access to basic services, especially for the poorest of the poor, creating an enabling environment for local economic development and expanding opportunities for job creation in collaboration with Expanded Public Works Programme. The programme of providing free basic services co-ordinated by the Department of Provincial and Local Government is supported by the committee.

However, a system of targeting the poorest of the poor sections of our community needs to be developed without creating another layer of bureaucracy in the administration. In some major cities and towns the billing system is a major nightmare as it eats into the pockets of our people, both rich and poor, black and white, based in suburbs, townships or hostels. A strategic intervention is required urgently in this matter. This process of participatory budgeting was modelled on the experiences of Porto Alegre province in Brazil and Kerala province in India - the latter province is one of two in India governed by the communists for many years. This process is finding an expression in one of the clauses of the Freedom Charter that says, “the people shall govern.”

How do we concretely ensure that these instruments that have the potential of being a people’s assembly are utilised and inspire all people in our country from all walks of life, the able and disabled, from urban to rural areas, hostels, informal, townships and suburbs from all cities and towns of our country? The people must know wherever they are that every particular year and at any time they will be engaged in a participatory budgetary process, which is commonly known as the IDP. We must find a way for first and foremost all public representatives from all political persuasions to participate in this process of a people’s participatory budgeting process. Surely this can be one of the things that unites us a nation. All public servants, including employees of municipalities, should also join hands. Ward committees need to be elected at a particular time of the year in all communities across the length and breadth of our country. The duration of these committees in terms of their office also needs to be agreed upon. After elections these committees have to be trained, based on a manual dealing with their duties. Resources for the proper functioning of these organs of people’s power need to be investigated.

The first years of the democratic state were about the introduction of a new constitutional and legislative framework. The new Constitution was adopted in 1996, and over 789 laws have been passed since 1994. The Government has also been able to successfully integrate the public services of the various Bantustans and the central Government’s Department of Public Service and Administration into a coherent single Public Service. The democratic Government has been able to transform the Public Service to reflect the people of South Africa. African people now constitute 72% of the Public Service and Government is focusing on increasing the number of women and people with disabilities in senior positions. Government has introduced senior management service to improve the conditions of service for senior personnel. This is also aimed at retaining and attracting skilled personnel in the Public Service. Although the skills level of employees in central government has stabilised there is an urgent need and a bigger challenge in addressing skills shortage at the local government level.

The development of an integrated regulatory framework for all spheres of government and public entities, which forms part of a broader Government modernisation programme, is supported by the committee. This regulatory programme that seeks to improve the alignment of relevant legislation, government arrangements, planning and budgeting, accountability, performance management, remuneration and procurement in different parts of the Public Service to improve and maximise the impact of interventions for development are also commended.

The introduction of the integrated service delivery mechanisms as community development workers, e-government gateway and multipurpose community centres will go a long way in improving service delivery, but will require greater flexibility in the way that the structures of government currently operate. Therefore the work that has been started to create a single Public Service is a major challenge as obstacles of different salaries and benefits in different municipalities are a reality. However, a unified Public Service would enable similar service delivery. In his state of the nation address president Thabo Mbeki stated:

To improve public access to departmental services within two months we will launch the Batho Pele gateway portal, which will provide streamlined government services on-line.

The purpose of this gateway portal is to create a single source of information on government services, organised according to citizens’ needs rather than structures of government. The portal is available to citizens through the website. The committee appreciates the fact that citizens will be able to be assisted by specially trained personnel in nine MPCCs selected for the first phase of implementation of this gateway portal and 55 points of access at postal facilities. The committee view is that the gateway will help in reducing the disparities that exist between the empowered and the disempowered, the first and second economies. Therefore this gateway will ensure that ordinary citizens will be able to interact with Government.

The State Information Technology Agency plays an important role in the management of IT systems within the Public Service and is attempting to ensure a general return of investment in IT expenditure for both Government departments and ultimately citizens - those things that we believe have been increased. However, the major challenge is that you must lead a campaign that will ensure that all Government departments from all spheres utilise this resource, as it will ensure that the benefits are accrued in the economies of state. We know the capacity of Sita will be developed over time, in order to build and handle this mammoth task. At a strategic level there is a department that does not refuse to work with Sita, but at an operational level this department is creating problems. Historically certain outside suppliers provided services and the relationship has become entrenched and therefore they are difficult to change. The committee noted that Sita has a sensitive relationship with this department because this it was a founder member of Sita and we believe that the situation has to be changed as things cannot continue as normal.

The committee views the objective of Batho Pele as noble and with good intentions and as a programme that is aimed at building a stronger Public Service culture among all public servants. People who will ensure Government’s honour and are able to ensure that they respect the people of this country, view them seriously. They should take the citizens as people who are bosses and who are owners of the state. Therefore, they must be treated as such.

The implementation of the Batho Pele principles is a form of induction of employees of the state and the inculcation of the culture and ethos that says, “We belong, we care and we serve”. It takes its cue from the state of the nation address, which emphasises the fact that there is a policy shift from policy-making to implementation, monitoring and evaluation.

In September the NCOP will be engaged in a provincial week, during which members go back to their respective provinces and conduct some oversight work. The focus will be on local government. A questionnaire that asks the right questions for the right answers is being developed. A database will be worked on during this process. This database will be the basis for our oversight work in the next five years. It will give the leaders of our country a clear picture of the status of municipalities in relation to their viability and also their readiness to meet the challenges of delivering services; creating a conducive environment for local economic development linked to the Expanded Public Works Programme; a participatory budgeting process; billing systems; developmental nodes; ward committees; and training community development workers. Therefore, the committee will visit all provinces in order to engage on this database.

The committee will build relationships and partnerships with all provincial and local government counterparts in order to enhance our oversight capacity. Quarterly meetings will be called by this committee with their provincial and local government counterparts in order to ensure that we develop a common understanding so that we are able to discharge our responsibilities with commitment and dedication. This committee is not only intending to work hard but to work smarter. [Time expired.] [Applause.]

Mr G NKWINTI (Eastern Cape): Thank you, Deputy Chairperson, hon Ministers, Deputy Minister, colleagues in the NCOP, our provincial growth and development plan, amongst other things, highlights job creation, poverty alleviation and public sector transformation. In pursuit of the transformation of local governance, the department will focus on the following key strategic objectives: the finalisation of the stabilisation phase, continuing with the consolidation phase, strengthening municipal capacity, good governance, emergency services and disaster management, integrated sustainable development and the facilitation of the provision of sustainable municipal infrastructure. In this regard, we have developed two strategies that are linked to each other. The first one is the short-term strategy and the second one is the medium-term strategy. The short-term strategy, which is a turnaround one is focusing particularly on six areas: poor revenue and financial management, establishment-related weaknesses, unintended consequences of wall-to-wall municipalities, resource migration from small municipalities, poor institutional and systems capacity and noncompliance with legality.

With regard to the medium-term strategy, it is premised on the need to transform municipalities further and we have developed a model for developmental municipalities in this regard, with the following developmental areas: sustainable service delivery, social development and community empowerment. I must mention in this regard the issue of community development workers. We have commissioned eight of them in our province and lot of work is being done, and we hope that there will be great progress in this regard. Lastly, we have sustainable environmental management, infrastructure development and economic development.

In order to promote sound relations between governance and traditional leadership institutions, the department will promulgate provincial legislation on traditional leadership and governance during the current financial year. We intend doing this before the end of September. The development of this policy and legislation is done through collaboration between the House of Traditional Leaders and the department, with the full involvement of the regional authorities and kingdoms in the province.

We have already commenced with a process towards the House of Traditional Leaders as well as Traditional Council Offices. This is part of the process of restoring the dignity, image and integrity of traditional leadership. Institutional and administrative capacity-building will be provided to traditional leaders so that they have a better understanding of Government policies and programmes.

With regard to free basic services in the province, we have 45 municipalities of which 38 are local or category B municipalities. Out of these 45 municipalities, 37 have free water supply, 25 have electricity, 21 have sanitation and 19 have refuse removal services. I must add that this reflects the backlogs of apartheid. We have done a great deal with regard to free water supply, as well as electricity, as a country but there is still a lot of work to be done with regard to sanitation and refuse removal. There might be a distortion now, even a great distortion concerning refuse removal, because even when we talk of 19 municipalities this refers to towns rather than rural areas. Therefore, there is a huge backlog in this regard. With regard to the waterborne sewerage system, we have a backlog of about 64 000 households. We have budgeted an amount of R 38 million this year to reduce this backlog, an increase of R18 million on last year’s amount. Thank you. We support the Budget Vote. [Applause.]

Ms M M A NYAMA (Limpopo): Chairperson of this sitting of the National Council of Provinces, hon members, our honoured ministers, distinguished guests and comrades, I’m truly humbled to stand here this afternoon and highlight the challenges and progress made in our province over the previous financial year in executing our mandate to capacitate, support and empower our municipalities. You will pardon my voice, hon Chairperson, I’ve just had very bad flu.

The transformation of our municipalities is plagued by many challenges, such as the inability of some municipalities to transcend the establishment phase and progress towards the consolidation and sustainability stages; declining, or lack of, revenue generation; the slow pace in delivering free basic services to the poor; a limited capacity to implement or monitor vast capital projects; as well as some municipalities which do not have the human resources with the required skills equal to the tasks confronting them as the most accessible and direct level of governance and service delivery.

I need to indicate, nonetheless, that 96% of our municipalities have gone through the establishment phase and are seized by the challenge of consolidating and sustaining their existence and building capacity to deliver services to residents. There is slow progress, largely because of limited administrative and managerial capacity and the inability to carry the costs of their operations and service delivery imperatives. The national Government is requested to intervene in this regard. The consolidation of the previously scattered grants will create remarkable opportunities for municipalities to better tackle the colossal challenges of meeting the needs of our communities, particularly those situated in rural landscapes, such as the Limpopo province. The municipal infrastructure grant should take into consideration the fact that rural municipalities are naturally without enormous opportunities to generate revenue which is sufficient to cover operational expenses and the provision of services. Therefore, many municipalities depend on the grant from the National Treasury and donations.

Our challenge as a province is to embark on a critical audit of the capacities, limitations and strengths of our municipalities in order to properly define a precise intervention model that would respond to the peculiar problems of our municipalities. In this context our province has entered into an agreement with the Development Bank of Southern Africa for it to undertake this audit.

The President made the call that all spheres of government must ensure that their programmes expand employment opportunities for our people and cultivate their skills to enable them to be active participants in the economy. As the department of housing in the province, we have identified the need to recapitulate existing co-operatives in order to uplift local economies and ensure cohesion in the projects carried out by various programmes. In this connection, we will strive to integrate all efforts of other departments into the IDPs of the municipalities in which those projects are initiated.

The lack of revenue generation is caused by the fact that most people from whom we need payment of services are unemployed and impoverished. We must find creative ways to promote and implement sustainable projects.

The process of establishing towns in Aganang and Fetakgomo is in the pipeline. We have already secured land and tribal resolutions in this regard. Furthermore, Pagetown will be formalised. For these laudable goals to be realised, there should be an injection of a massive amount of resources.

Our Government pledged itself to provide basic free water to our people in order to mitigate their hard social and economic conditions. In our province most district municipalities are water service authorities, yet it is the local municipalities that are, in fact, providing water to the communities.

According to statistics provided by the Department of Water Affairs and Forestry, 21 municipalities are providing free basic water to their communities, thus benefiting 45% of our provincial population. This progress is not easy to quantify in monetary terms, because standpipes and water tankers are utilised in the rural communities unlike in urban areas. Yet there is still a huge concern around water provision in many of the dry villages in the province.

As regards free basic electricity, all municipalities in the province have entered into funding agreements with Eskom for the supply of grid electricity to our people. Thirteen municipalities are already reaping the fruits. On the other hand, four municipalities have agreed with Solar Vision to provide nongrid electricity to residents. In spite of these efforts there is a huge backlog regarding the electrification of our dark rural areas.

This House meets days prior to the Local Government: Municipal Finance Management Act coming into operation. This new piece of legislation seeks to introduce new efforts of accountability and transparency in municipalities. It is our responsibility to guarantee the success of the implementation of this legislation. In this context we’ll roll out a training programme for municipal staff and councillors and also deploy competent public servants to ensure compliance with the legislation.

We have a provincial capacity-building strategy whose purpose is to respond to the mammoth challenges facing our municipalities. The traditional affairs matters, which were previously with this department, are now being shifted to the office of the premier. We are in the process of referring funds and staff accordingly. There is still the challenge of the payment of indunas from former Lebowa in order to bring about equity. We are appealing to this House and the National Assembly to ensure that funds are appropriately channelled to ensure a stronger local government and a really better life for all our people in local areas. Ndiyakhensa. [I thank you.] [Applause.]

Mnr J W LE ROUX: Agb Voorsitter, agb Minister, LUR’e en kollegas, die feit dat ons as Suid-Afrikaners ‘n ware demokrasie hier kon vestig is merkwaardig, en ek glo dat ons almal baie trots is op hierdie prestasie. Die bekamping van armoede is sekerlik ons volgende groot uitdaging, en ons sal slegs slaag as ons almal saamwerk as ‘n span, naamlik eerste-, tweede-, derdevlakregering en die privaatsektor.

Die kern van die vraagstuk is die feit dat ons ekonomie teen tussen 2% en 3% per jaar groei en ons benodig ‘n groei koers van tussen 5% en 6%. Aangesien ons bevolkingsaanwas ook iewers tussen 2% en 3% is, kan die armoedeprobleem nie opgelos word as die ekonomiese aktiwiteite nie drasties toeneem nie. In baie gebiede in ons land is die werkloosheidsyfer reeds 40%, en die werklose mense van ons land is vasgevang in ‘n spiraal van armoede. (Translation of Afrikaans paragraphs follows.)

[Mr J W LE ROUX: Hon Chairperson, hon Minister, MECs and colleagues, the fact that we as South Africans were able to establish a true democracy here is remarkable, and I believe we are all very proud of this achievement. The fight against poverty is surely our next major challenge, and we will only succeed if all of us work together as a team, namely the first, second and third tiers of government and the private sector.

The core of the matter is the fact that our economy is growing between by 2% and 3% per year, and we need growth of 5% to 6%. Since our population growth is also somewhere between 2% and 3%, the poverty problem cannot be solved unless economic activity increases drastically. In many regions of our country the unemployment figure has reached 40%, and the unemployed in our country are locked in a spiral of poverty. ]

The massive injection of funds to create jobs and to provide basic services and infrastructure, together with the Expanded Public Works Programme, will certainly help our poor and unemployed citizens. It is now up to local government to use this major stimulus to secure a better future for all, but especially for the poor. The safety net is now much wider and the very poor people will certainly benefit. It is clear that the Government favours the public sector as the driving force for job and wealth creation. However, the DA prefers the private sector to be the main agent for job and wealth creation.

Ek kwoteer die DA-leier: “Die staat se rol moet soveel wees as wat nodig is en die privaat inisiatief soveel as wat moontlik is.” Hierdie liberaal- demokratiese stelsel het homself wêreldwyd bewys as die beste stelsel om die breë gemeenskap die grootste ekonomiese voordeel te gee. Die rol wat plaaslike bestuur moet speel in die bekamping van armoede en dienslewering kom nou skerp onder die vergrootglas.

Beleggers en entrepreneurs is deurlopend besig om die verskillende beleggingsopsies te ondersoek. Die entrepreneur se besluit word tot ‘n baie groot mate beïnvloed deur die optrede van plaaslike rade en amptenare.

Dwarsoor die land, en veral in die Oos-Kaap, is dit duidelik dat waar plaaslike bestuur en amptenare effektief funksioneer, die vinnigste groei plaasvind. ‘n Goeie voorbeeld van effektiewe raadsbesluite is Graaff Reinet. Hierdie raad het lank gelede die potensiaal van toerisme geïdentifiseer en met behulp van die privaatsektor en entrepreneurs soos Dr Rupert is die dorp effektief bestuur en bemark. Die historiese geboue is gerestoreer, inheemse lanings bome is langs strate geplant, daarby is hoë gehalte akkommodasie beskikbaar gestel en talle interessanthede is tot die beskikking van die besoekers daargestel. Huidiglik stroom besoekers na Graaff Reinet en floreer die dorp.

In teenstelling hiermee is daar talle stede en dorpe met dieselfde potensiaal maar verval in armoede en agteruitgang. Uitenhage is ook ‘n voorbeeld van waar amptenare, raadslede en die privaatsektor vervaardigingsreuse soos Volkswagen en Goodyear beïnvloed het om hul daar te vestig. Almal wat hierdie gebied ken, sal weet dat die vestiging van Volkswagen byvoorbeeld die hele gemeenskap oor dekades bevoordeel het.

Die Nelson Mandela Metropool is ook ‘n voorbeeld van waar ‘n raad ingestel is vir dienslewering en die opgradering van infrastruktuur, sowel as die verfraaiing van die hele metropool. Die vestiging van die reuse Coega- haweprojek is ‘n baie goeie voorbeeld van waar die staat, plaaslike owerheid en die privaatsektor saamwerk om groot voorspoed te skep. Die kiesers kry volgende jaar die geleentheid om weer raadslede te kies, en dit sal verstandig wees om raadslede te kies met die regte ingesteldheid en visie. Ek dank u. [Applous.] (Translation of Afrikaans paragraphs follows.)

[I quote the DA leader: “The role of the state must be as great as is necessary, and private initiative as great as is possible”. This liberal democratic system has proved to be the best system worldwide to bring the greatest economical advantage to society at large. The role that local government must play in the fight against poverty and in service delivery now comes into sharp focus.

Investors and entrepreneurs are constantly investigating various investment options. The decision of the entrepreneur is to a very great extent influenced by the conduct of local councils and officials.

Throughout the country, and especially in the Eastern Cape, it is clear that wherever local government and officials function efficiently, the most rapid growth occurs. A good example of a council taking effective decisions, is Graaff Reinet. This council recognised the potential of tourism long ago, and with the help of the private sector and of entrepreneurs like Dr Rupert, the town has been managed and marketed efficiently. Historical buildings were restored, lanes of indigenous trees were planted along the streets, and at the same time high-quality accommodation was provided, and numerous interesting sites were made available to visitors. Today visitors stream to Graaff Reinet and the town is flourishing.

In contrast, many cities and villages with the same potential are mired in poverty and degeneration. Uitenhage is another example of a town where officials, councillors and the private sector persuaded manufacturing giants like Volkswagen and Goodyear to establish plants there. Anybody who knows this area will tell you that, for instance, the establishment of Volkswagen benefited the whole community over decades.

The Nelson Mandela Metropole is another example of a council dedicated to service delivery and to upgrading infrastructure, as well as to beautifying the whole metropole. The establishment of the giant Coega harbour project is a very good example of how the state, local government and the private sector can co-operate to generate great prosperity. Next year the voters once again have the opportunity to elect councillors, and it will be wise to elect councillors with the right attitude and vision. I thank you. [Applause.]]

Mr F ADAMS: Hon Chairperson, hon Ministers, hon MECs, special delegates and hon members of the House, foremost I want to congratulate the hon Sydney Mufamadi and the hon Geraldine Fraser-Moleketi on their reappointments as Ministers and the hon Nomatyala Hangana on her appointment as Deputy Minister. I would also like to take this opportunity to welcome back one of our sparkling roses who served with us in the previous parliament, the hon Dorothy Mahlangu. Welcome back, hon Mahlangu. I wish them all successful terms of office.

Attitudes in South Africa are changing. You could see this in the past election results. The people of South Africa have confidence that this Government is here to change things for the better. We South Africans have to change and move with the times and also look at the requirements of the electorate. There are charters out there, and certain percentages that are expected around transformation and service delivery in their broader sense, which will affect all state departments, provincial governments and municipalities. We find ourselves in an era in which change arrives without warning and is of such a nature that it can, with debilitating speed, threaten the very foundation of service delivery and the people’s contract for a better South Africa.

It was the astute and the wise who recognised this and began to adapt, change and work with the new, rather than strive to preserve and entrench the past. For me, if I can help to make changes in favour of and also in line with the new dispensation, I would feel very proud - and could look back and say that that was what I was able to do and what I was able to achieve as a South African who was part of making those significant changes. The NNP supports the Budget Votes. I thank you. [Applause.]

Mrs P M HOLLANDER: Hon Chairperson, hon Minister Geraldine Fraser-Moleketi, hon Sidney Mufamadi, hon MECs, hon members, special delegates, ladies and gentlemen, the ANC on 8 January in its statement for 2004 has declared this the year of the renewal of its democratic mandate and, therefore, a people’s contract to create work and fight poverty. Gone are the days when we were disintegrated into different communities in the city of Cape Town. If you smiled at someone of the opposite race, you were jailed for contravening the Immorality Act. Where you lived - and it was not only the community of District Six that was removed - and amongst other races, that area was called a black spot, and this black spot was mixed with a white spot and they declared Woodstock as a grey spot; but we are still all of the same colour today.

Schools and libraries had separate funding and that all formed part of the development of the Western Cape. There were job reservation, separate post offices, bridges, walls and separate schools. I taught in the city and when we marched to Parliament we were branded and beaten up by the Ossewa Brandwag and the police. This Parliament was closed to all races but whites. We were whipped into submission by the Torch Commando. There was bus apartheid, and mothers and grannies had to go upstairs in train apartheid, and when we boarded the trains they blocked us up at Woodstock station. Therefore, I welcome the ANC to the Western Cape and with them a people’s contract to create work and to fight poverty.

The Public Service and Administration Budget Vote receives more restrained increases to its base line with adjustments of R15 million. This is mainly tied to the need for increased internal capacity to strengthen provincial intervention measures, for instance, the initiative in the Eastern Cape during 2003-2004. In 2003 a new programme, International and African Affairs, was added to accommodate the work emanating from South Africa’s amplified role in Africa and the international arena.

Information technology falls under programme three of the department. The aim of the programme is to ensure the effective use of information and IT in Government, facilitate the use of IT for the modernisation of Government and the establishment of e-Government practices within an acceptable information security environment. The measurable objective of the programme is to improve access to government services by providing a single 24 IT Window in a steady and efficient manner. It is important to manage the development of IT since it has the potential to decrease the gap between the first and second economy by empowering those in the second economy who are without the necessary infrastructure to utilise IT services and access critical government information. Various objects are being implemented under Programme 3 to realise improved service delivery and modernised Government. This is consistent with the ethos of Batho Pele, which puts all citizens first through service delivery excellence. The policy aimed at transforming service delivery through the introduction of eight key principles was first announced in 1997.

The Batho Pele Gateway Project will be a major focus for the Department of Public Service and Administration over the next ten years. In his state of the nation address of 21 May 2004, President Thabo Mbeki announced that the Batho Pele gateway would be launched within two months. The project consists of five phases and aims to bring Government’s information to citizens wherever they are. This information will be available 24 hours a day, seven days a week.

Phase one of the Gateway Project involves the establishment of the portal for information on Government services and making it available to citizens online, as well as through various access channels such as the multipurpose community centres and the Post Office public information terminals. Phase one of the Batho Pele Gateway has now been developed. Phase two will allow citizens to access and conduct Government service transactions online, for instance, completing an application for a passport or identity documents. This will provide citizens with a one-stop access point for all public information and services. Linked to the Gateway Project is the development of access platforms, which will enable users with no Internet access, to access such electronic services. Existing initiatives such as the multipurpose community centres will be utilised for these purposes.

The challenges, however, are weaknesses that include poor senior management involvement in the monitoring of the implementation of the principles driving Batho Pele, and lack of public involvement in the enforcement of these principles. However, the good news is that in August the Cabinet approved the roll-out of community development workers with the broad aim of bridging the gap between Government services and the people. The community development workers are citizens trained in Government processes such as social grant applications, applications for birth certificates, identity documents, and so forth.

On 1 October the South African Management Institute began rolling out the training for community development workers. In terms of recruitment, the minimum requirement for these people is Grade 12 or the equivalent prior learning. In his state of the nation address alluded to earlier, President Mbeki announced that the community development workers would be deployed in the 21 nodal points by the end of 2004. Gauteng will be the first province to deploy a group of these 40 community development workers. The provinces of Limpopo, the Eastern Cape and North West will follow.

Learnerships have been established for these people and following the completion of a one-year learnership, community development workers would be eligible to apply for permanent posts within the provincial departments and establishments responsible for local government. Community development workers are recruited from every ward within provinces. A further intake of learners will commence once the successful community development workers have been placed.

The deployment of community development workers is intended to contribute to improving service delivery by taking services directly to the poor, but is also intended to assist the poor to develop the capacity to organise themselves in participating in decision-making. The challenges here, in this regard, include the lack of funding within provincial departments as well as the capacity challenges of the local government sector and training authority, Seta. However, these challenges need to be balanced with the shortage of skills in the Public Service and rural areas in particular. Skills development is a critical priority for the Public Service, especially since skilled and experienced personnel developed since 1994 have been lost to the private sector. The DPSA was involved in a major intersectorial initiative in the 2003-2004 financial year. Following the Public Service Job Summit in January, an agreement on the transformation and restructuring of the Public Service, which has come to be known as Resolution 7, concluded the restructuring of the Public Service. The broad aim of the restructuring process is to match the skills needs of departments with the human resources available in the Public Service. This would enable more effective end efficiency service delivery.

In certain cases this may mean redeployment of staff or identifying staff in excess. Excess staff members are offered training opportunities to facilitate their redeployment in the Public Service. This restructuring is now in the phase of practical implementation. The resolution itself came to an end on 12 September 2003. The restructuring programme is now in phase two, placing excess employees who are not accommodated for redeployment. On 12 September, employees were identified as redundant. They were placed in the special programme and given assignments. Resolution 7 requires departments to determine an organised structure in line with the skills needed to employees to posts where that was possible, to fill vacancies and deploy those employees who are in excess. Where such deployment is not possible, employees may receive training to facilitate such deployment.

Resolution 7 does not aim to render Government employees redundant although it is perceived as such. Instead it recognises that service delivery demands and the available capacity do not always match in the public sector. Trade unions are engaged with the state in a process to ensure that those employees who are declared excessive in one department could find opportunities in other departments through the use of a redeployment database. Employees who are not successfully redeployed are also eligible for a severance package, as are some of staff who are unwilling to join the special programme.

The impact that provinces now have on the implementation of national policy is substantial, since large allocations of funds are transferred to provinces from the national fiscus and leave to them the responsibility of allocating the resources to the various portfolios of Government. At the same time, South Africa’s historical legacy of a lack of development has resulted in significant differences between provinces in terms of their capacity. As a result, the performance of provinces reflects unevenness, with some provinces doing exceptionally well and achieving development targets while others struggle to achieve the basic level of operational and administrative efficiency.

Given such disparities, the integrated provincial support programme, one of Government’s key capacity-building programmes, is of critical importance. The IPSP is a multiyear strategic programme of the Department of Public Service and Administration to support targeted provincial governments to achieve and sustain poverty alleviation, the effective rendering of basic services and good governance with the implementation of the respective provincial growth and development strategy. This partnership with provinces is aimed at improving service delivery by assisting with the implementation of projects that will facilitate provincial growth.

The focus of the PGDS directs the transformation of the Public Service in the provinces towards socioeconomic development and growth. A key requirement of the IPSP is that all projects initiated by provinces with IPSP funding must have been identified within the strategic scope of the PGDS. In this way the ANC Government will create a people’s contract to create work and fight poverty. In conclusion, I would like to tell Mrs Robinson of the DA that it was not only the National Party that was responsible for apartheid or separate development here in South Africa, but it was also the old Progressive Party which is now today called the DA. Thank you. [Applause.]

Mnr C A T SMITH (Noord-Kaap): Agb Voorsitter, agb Minister Mufamadi en Minister Fraser-Moleketi, agb Adjunkminister Hangana, lede van die uitvoerende rade van provinsies, spesiale afgevaardigdes, lede van hierdie agbare Huis, dames en here, laat my ook toe om die agb Ministers geluk te wens met hul herverkiesing en aanstelling en dit is die gebed van ons hart dat die Allerhoogste hulle ook ryklik sal seën in hul werksaamhede in die onderskeie portefeuljes waarin hulle hulle bevind.

Agb Voorsitter, plaaslike regering is die sfeer van regering naaste aan die mense. As ons daarin slaag om suksesvol hierdie land op plaaslike regeringsvlak te transformeer vanaf apartheid tot demokrasie, sal ons die lewensomstandighede van ons mense op grondvlak verander. Ek is baie trots daarop om ons ook met nasionale en provinsiale beleid te assosieer wat ook erkenning op internasionale gebied kry, as gevolg van die kwaliteit daarvan.

As ons egter nie daarin gaan slaag om as plaaslike regerings die kompleksiteit en probleme waarmee ons worstel in terme van armoede op grondvlak die hoof te bied nie, sal hierdie demokrasie nie die ware kleure hê wat hy behoort te hê vir die mense van hierdie land nie. In hierdie opsig probeer ons dus vir die Huis die belangrikheid van plaaslike regering stel.

Die vordering wat tot dusver oor die afgelope 10 jaar gemaak is, is prysenswaardig en ons wil vir minister Mufamadi gelukwens met die besondere rol en leierskap wat hy getoon het ook tot waar ons vandag is. Mense wat nie die ontwikkeling op plaaslike vlak oor die 10 jaar in hierdie land kan sien nie, is òf blind òf loop met toe oë rond, òf is besig om hardkoppig en arrogant vas te klou aan die verlede met skynwaarheid om alles te probeer opponeer.

Ek wil graag ook vir die agb Minister gelukwens met sy suksesvolle onderhandelings met die Minister van Finansies, in die sin dat die “equitable share” en die “municipal infrastructure grant” verhoog is. Dit sal beslis ‘n groot bydrae lewer tot werkskepping en die verligting van die armoede wat ons daar ervaar. (Translation of Afrikaans paragraphs follows.)

[Mr C A T SMITH (Northern Cape): Hon Chairperson, hon Minister Mufamadi and Minister Fraser-Moleketi, hon Deputy Minister Hangana, members of the executive councils of provinces, special delegates, members of this honourable House, ladies and gentlemen, allow me also to congratulate the hon Ministers on their re-election and appointment, and it is the prayer of our hearts that the Almighty will richly bless them in their work in the respective portfolios in which they find themselves.

Hon Chairperson, local government is the sphere of government closest to the people. If we succeed in successfully transforming this country at local government level from apartheid to democracy, we will change the living conditions of our people at grass-roots level. I am very proud to associate us with national and provincial policy that is also acknowledged internationally as a result of its quality.

If, however, as local governments we do not succeed in overcoming the complications and problems we are wrestling with in terms of poverty at grass-roots level, this democracy will not have the true colours it should have for the people of this country. In this manner we are therefore trying to show the House the importance of local government.

The progress made up to now over the past 10 years is laudable and here we want to congratulate Minister Mufamadi for the particular role he has played and the leadership that he has displayed, also up to where we are today. People who cannot see the development at local level in this country over the past 10 years are either blind or walking around with their eyes shut, or are stubbornly and arrogantly clinging to the supposed truths past to try to oppose everything.

I also want to congratulate the hon Minister on his successful negotiations with the Minister of Finance, in the sense that the equitable share and the municipal infrastructure grants have been increased. It will definitely greatly contribute to job creation and the alleviation of the poverty that we are experiencing there.] Our democratic Government’s task is to overcome conditions of underdevelopment through the four priority areas of the RDP, namely meeting basic needs, developing our human resources, building the economy, and the democratisation of state and society. We have to pay priority attention to the tactical requirements for good governance and provide basic services. Our goal is to ensure that our people benefit through the provision of clean water, and have access to basic sanitation.

The success of our investment in basic infrastructure will enable greater gains to be made in the roll-out of the free basic services programme. This programme is pivotal in extending the social safety net to the most vulnerable in our communities. We must direct our sources towards the goal of creating employment opportunities through the extension of labour- intensive infrastructure development programmes.

Through more realistic, integrated development plans, municipalities must develop local socioeconomic profiles which would help the public and private sector to take decisions that are mutually beneficial. We must encourage municipalities to designate rural development and urban renewal nodes and to make use of these mechanisms in order to influence investment within small-scale segments of the economy. The stimulation of economic activity in these areas, however small, will touch in very positive ways the lives of those of our people who are confined to the positions that are marginal to our economy.

The Northern Cape wants to raise a few special issues for the attention of the Minister: the strengthening of the financial base of local government; collaboration with the department of transport and roads to assist district municipalities in the upgrading and maintenance of access roads; conducting a community awareness programme on the establishment, capacity and monitoring of ward committees; and, in consultation with the department of agriculture and land reform, the determination of reasonable prices for commonage land.

Please, Minister, help us see to it that national/provincial departments pay their municipal commitments to local government timeously and expand the disaster management programme to improve the capacity of municipalities. Please, embark on a national awareness campaign to market municipal by-laws. We, once again, just want to bring to the attention of the Minister the difficulties that we experience at provincial level in terms of the cross-border municipalities. Please, assist local municipalities with debt-collection policies and interact with the IEC to ensure that the preparations for the local government elections are on track. The Northern Cape supports this Vote. Thank you. [Applause.]

Mr M FRANSMAN (Western Cape): Chairperson, Ministers and the Deputy Minister, let me first of all indicate that the Western Cape is finally also on a progressive course, that on 14 April the people clearly came out in support of the movement and, therefore, 10 years into our democracy obviously we have to find the necessary processes to streamline our own actions in order for us to move beyond the issue of strategy to implementation.

In this particular budget the direction and tone that the Minister has given, rightfully, over the last few months, have been under the microscope of the national Cabinet, aimed at finding the kind of local governance fitting the image developed from those things the peoples of South Africa told the leadership they wanted from Government in the tenth year of the democracy. The processes leading to the budget statement under consideration today were best captured by a gentleman by the name of Bernard Edmonds who said:

To dream anything that you want to dream, that is the beauty of the human mind. To do anything that you want to do, that is the strength of the human will. To trust yourself, to test your limits, that is the courage to succeed.

Over the dark days of our country’s history we have been carried and propelled by a dream to arrive at a point when South Africa would be democratic, providing opportunities for all, and attentive to the needs of those to whom the atrocities of the past have proved paralysing to a point of despair.

In 1994, I believe, we arrived in that South Africa. In 1997 we began the surgical work of unblocking the service delivery pipelines to local level, assisted by census data and other valuable planning information sources. In 2000 we finally unveiled the model of local governance designed to cater for all, wherever people find themselves, and we will be in the process beyond 2005. The dream of a better life took shape in the challenge we have been issued with in 1994, a challenge which we have been working in earnest towards achieving with great leadership. Here I want to quote what both the President and Mr Mufamadi said:

(We must) make local government more dependable as an enabler for provincial and national departments to realise their development and delivery targets.

Well aware of the fiscal limitations in realising the dreams of our people, nonetheless we are not restrained or daunted in coming across as determined partners in a contract to find these lasting solutions. In the Western Cape we have identified the MIG and other programmes as valuable in dealing with the job creation question, as well as poverty reduction.

During the President’s budget address in the National Assembly, he remarked:

We must achieve greater progress with regard to the integration of our system of governance, achieving seamless co-operation both within and among all spheres of government.

From the President’s remarks it is clear that our foremost challenge would be to put in place and encourage the kind of governance that will feed delivery of services to the poorest of the poor and in the Western Cape. We have already started to get the ball rolling, signalling to municipalities that, as Premier Rasool has put it, there need to be “no more turf wars”, and that we are “declaring a truce unconditionally” for the sake of progress and the millions of people in need of effective delivery of a range of Government services and in response to the policy direction above.

We have decided to respond in the following ways, firstly, by doing a skills audit in municipalities to identify the type of weaknesses at that level and then to put in place appropriate training opportunities and to extend it to senior and middle management and specifically target women in local government. There is definitely a glaring absence of women empowerment, not politically, but in management structures at the local government level.

Secondly, the developmental governance is demanding a deepening of democracy and a culture of stakeholder engagement. Therefore, we welcome the roll-out and a very particular focus on ward-based structures in municipalities. However, I want to link the ward committees process and the community development workers approach into the question of identifying an institutional mechanism to deal with the issues that people raise at a management level in municipalities. In the Western Cape we will particularly focus on that.

We have also decided to follow a consultative partnership approach with Weclogo in the Western Cape on the most appropriate manner to revise and implement a strategy that will ensure sound and co-operative governance.

Municipalities are charged as co-ordinators of social and economic investment to address the geographic poverty implications of former apartheid planning. Therefore, the Integrated Services Rural Development Plan, as well as the Urban Renewal Programme, did show us the potential to target the poor. In the Western Cape we have identified particular weaknesses around it that influence intersphere processes. We will be holding a funding conference in order to bring private capital investment to the table.

We also welcome the announcement regarding the roll-out of free basic services, but with a particular focus on access to sanitation services. The challenge in the Western Cape relates to approximately 30 000 households, and I am proud to inform the Minister that 25 out of the 30 municipalities in the Western Cape indicated that they would provide over and above the free basic water and electricity. They will also now supply free basic sanitation and refuse removal to indigent households in the communities as of 1 July.

Whilst addressing the challenges of ensuring an adequate social safety net and the conditions of the poor, we have unfortunately also seen the ravages of fires and flooding in our informal settlements. Therefore, in the portfolio of housing we have developed a particular approach that says that we will be looking at our disaster mitigation and management strategy over the next 100 days, and obviously roll out that programme, especially over winter.

On 21 June we met all the councillors in the Western Cape, including the mayors, deputy mayors and municipal managers, and there we collectively agreed on the alignment of IDPs with provincial GDS; the issue of ward committee roll - out; maximising benefits from the Mig programmes in the context of job creation and poverty reduction; information around the IGR imperatives, as well as to develop policies to address concerns of the indigent, and working towards making the Western Cape a home for all.

Already it is clear from the speed that you, as the Minister, convened the team to work on the IGR strategy, that there is urgency on this matter. Government departments must co-operate vertically and horizontally to give effect to what you aspire to. I have, with the support of all role-players in the province, now put in place an implementation plan to deal with the issues of the IGR roll-out strategy; even whilst there is no legislation, to put in place a process of piloting.

Lastly I want to mention the issue of bureaucracy, ie the streamlining of some of our processes. I have identified three areas around the problems relating to official bureaucracy. Firstly, there is a lack of organisation; secondly, there is a lack of inner motivation; and, thirdly, a lack of technical knowledge. The academy that you have spoken about will most probably be able to deal with that as a critical issue. Therefore, whilst we are looking at all the plans and the processes in the Western Cape, a strategic focus will be the reorientation of our public servants in the context of service delivery.

Therefore, my participation in this debate sought to do two things, firstly, to support not only the proposed budget, but also to inform policy tone and direction, and lastly to pledge the Western Cape’s support; not only to support this strategy and vision, but to respond by putting in place a practical programme of action. Therefore, we are committed to bringing about developmental local governance and a better life for all our people in the Western Cape. [Applause.]

Mr A WATSON: Madam Chairperson, hon Ministers and hon members, today I want to dedicate my address to a plea for better empowerment of rural local government councillors. The Minister has already referred to the fact that when we engaged in the process of writing the new Constitution in 1994, one of the paramount points of departure in regard to governance was to establish three spheres of government and to do away, once and for all, with lowering certain spheres to tiers or levels of government.

Chapter 7 of the Constitution clearly establishes municipalities as the local sphere of government, and whilst provision is made for provincial and national oversight, and even intervention at times, the status of local government as a full-fledged sphere of government is beyond argument.

I’ve been privileged to serve in the local government for the past three- and-a-half years, and I can testify that we are blessed with dedicated councillors across the country. The problem is that the empowerment of councillors, particularly in the smaller municipalities, has not kept pace with their status as representatives in the local sphere of government and they are consequently unable to execute their tasks fully. The Minister should presently be in the process of revising the upper limits of salaries and allowances of councillors, as he does annually, for implementation by 1 July, and today I want to appeal to him to reconsider some of the categories as determined in the relevant schedule.

Let me explain: In a grade 1 municipality the maximum salary and travel allowance of a councillor is currently only R1 506 per month, compared to the equivalent of nearly R14 000 per month for a grade 6 councillor. The difference becomes more tolerable as the grades move up, but the salary and allowance in a grade 6 municipality is still equal to 197% of that of the next grade down, in other words, grade 5. I believe that the problem could be addressed by readjusting the formulae applied to determine grading, which relate to property rate income and the number of registered voters in a municipality.

This makes sense in determining the size of a municipality and, consequently, also has a direct relation to the reduction of the number of wards, but it certainly does not reduce the workload of a councillor. On the contrary, the work of a rural councillor is much more involved than that of a councillor in a large municipality. The city councillor virtually falls out of bed into his or her ward, whereas rural councillors travel many miles to service their voters and in some cases more than 150 km to attend council meetings alone.

I’m well aware of the choice that can be made and exercised in terms of a rate per kilometre, but the Minister must remember that it only applies to official business and travel, and not to the main task of servicing the communities. How can we expect a councillor in a grade 1 municipality to buy and maintain a vehicle on a travel allowance of only R300 per month whilst a metropolitan councillor … [Interjections.]

The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Hon member, could you take your seat, please.

Mr H T SOGONI: Chairperson, on a point of order, the member is not discussing the principles of delivery that we are talking about here. He is in a bargaining chamber for councillors.

The DEPUTY CHAIRPERSON OF COMMITTEES: Order! I will make a ruling at a later stage on this point of order, but you may proceed, hon member.

Mr A WATSON: Well done, Chair - you have both wasted my time. [Laughter.] I said that the Minister must remember that it only applies to official business and not to the main task of servicing the community. How can we expect a councillor in a grade 1 municipality to buy and maintain a vehicle on a travel allowance of only R300 per month, whilst a metropolitan councillor, who rarely has to move more than a few city blocks, is allocated R2 700 per month? We must also understand, Mr Chair, that in most instances rural councillors have no other income and consider their appointments as full time.

The rural communities also look at councillors as not only their representatives, but also as their leaders and, at times, as a source of financial assistance. We need to attract and keep quality councillors in order to build sustainable local government, and we therefore also have a duty to ensure proper empowerment of the incumbents.

I have not even touched on a further point of empowerment in the actual work environment, but looking after the personal circumstances would be a good start. I thank you. [Applause.]

Cllr M D DIKOKO: Hon Chair, Deputy Chair of the NCOP, in absentia, hon Minister for Provincial and Local Government, as well as the Minister for the Public Service and Administration, including the Deputy Minister for Provincial and local Government, hon members and special delegates, ladies and gentlemen, firstly, I bring greetings from our father who art in local government - Father Smangaliso Mkhatshwa - to the Council this afternoon.

The state of the nation address by the President of our country, Thabo Mbeki, just over a month ago on 21 May, placed the responsibility of service delivery squarely on the shoulders of municipalities. President Mbeki outlined a programme of action complete with timeframes and priority areas. The programme tasks municipalities to deliver basic sanitation to about 300 000 households by the end of the 2004-05 financial year and clean water and sanitation to all schools within the same period; and by December this year, we are supposed to deliver clean, potable water to the 10th million South African since 1994. Of course, we have to deliver numerous other infrastructural projects, such as housing, roads and electricity.

With challenges around indigent policies, meter installation, proper billing systems, debt collection and municipal arrears, the biggest question on the minds of many is whether municipalities have the capacity to manage resources efficiently and effectively to deliver on the instruction of the President. This question is especially pertinent as both the provincial departments and municipalities are currently busy tabling their budgets. Because the Government has made an explicit commitment to a decade of a people-centred Government and service excellence, municipalities simply have to deliver.

I am proud to inform this House that the SA Local Government Association, that is Salga, is putting mechanisms in place to empower municipalities in the area of the best practice, as initiated by the Ministry of Provincial and Local Government. More specifically, Salga runs week-long financial workshops in all provinces, focusing on financial challenges, pressures and complexities within the local government sector. It brings together fiscal elements of the developmental local government and deals in depth with the funding of the provision of municipal services. All these efforts confirm that local government has transformed, and that now we are putting in place mechanisms to ensure best practices in financial management within the sector.

The 2004 Budget consolidates 10 years of major transformation challenges and achievements in our economy. It also reflects the continued fiscal discipline against a fairly stagnating global economy, notwithstanding recent indications of recovery. Over the past 10 years Government has made significant achievements, mainly in reducing poverty, through the provision of basic services to an increasing number of South Africans who were previously marginalized, and by so doing narrowing inequalities and vulnerability. To this end, the following is observed from the 2004 Budget.

The total Budget for 2004 was significantly affected by the less-than- anticipated revenue collected nationally, which was signalled also during the medium-term process in 2003. While R63 billion was added to the 2002 budget over three years, only R44,5 billion has been added, focused mainly on Public Service delivery programmes. Local government received 14,5% of the total budget for 2004. About R2,2 billion from 2004-05 to 2006-07 will be channelled to municipalities for water, sanitation, electricity and refuse removal according to the equitable share. Almost R1,7 billion will be channelled to municipalities towards infrastructure development. Growth has increased to 3% between 1994 and 2003. This compares favourably with the 1% growth posted prior to a democratic South Africa, that is between 1984 and 1993. Inflation has been stable, and continues to decline as a result of further appreciation of the Rand, and is now within the monetary policy target of between 3% and 6%.

Government has managed to bring down debt service costs as a percentage of GDP, freeing additional resources for socioeconomic development. The financial account net inflows have increased to R169, R6 billion over the past 10 years. There has been an increase in infrastructure investment from 16% to 25% of GDP over the past 10 years. An additional R3,2 billion will flow to municipalities and provinces for the Expanded Public Works Programme and infrastructure.

About R6 billion is targeted for Black Economic Empowerment initiatives. Social welfare to provinces has increased significantly to a total of R19,6 billion, to cater for social grants, schools, hospitals and clinic services. Also significant in the 2004 Budget is the elimination of stamp duty on mortgage loans and an increase in the threshold on transfer duty on property transactions up to R150 000. Health and Education received the largest portion of the Budget. An allocation of About R300 million for this financial year is also appreciated. Unlike the previous year, where there was R13 billion provided as relief on personal income tax, we note that only R4 billion could be accommodated this year. This should, however, be viewed against the 10-year achievement of R73 billion in tax relief.

The downsides to the budget are noted, that job creation remains a challenge, for instance. However, it is anticipated that the Expanded Public Works Programme will begin to address job formation, including the employment of the community development workers. There has been a decline in the manufacturing industry, mainly as a result of the stronger rand since the past year to date.

To enable Salga to objectively review the 2004 Budget as it relates to municipalities, an analysis on the division of revenue to local government was undertaken. The analyses were performed on the equitable share allocations at micro level, and on the equitable share formula and conditional grants. Data for this report has been extracted from the Division of Revenue Act, Act 7 of 2003, as well as the Division of Revenue Bill of 2004, including the Budget Reviews of 2001-04, notwithstanding the Intergovernmental Fiscal Review of 2001-03.

The key findings on the analysis are listed as follow: There are numerous and large changes between the local government equitable share, and this is stated in the Division of Revenue Act of 2003 and the Division of Revenue Bill of 2004. There is no obvious trend with regard to the above changes. Some municipalities have seen the equitable share increase, while others have seen theirs decrease. The census data does not appear to impact on the size of the equitable share to individual municipalities. The larger, wealthier metros have also seen their equitable share allocations increase, whilst this is not the case for the less-wealthy metros.

There is a significant number of nodal municipalities receiving less in the Division of Revenue Act of this year than gazetted last year. In total, the equitable share shown in the division of revenue for the 2005 budget year is less than the amount shown on the 2003 budget for about 104 of our category B municipalities. There are insufficient data sets to perform a meaningful analysis of trends in either the equitable share or conditional grants. This is owing, in part, to the manner in which these grants have continually evolved since their introduction.

The conditional grant system has been rationalised and restructured for this coming financial year. The conditional grants to local government increased from approximately R5 billion, in the last financial year, to R6,7 billion in the 2006-07 financial year. This is an increase of 11% over the medium term. The infrastructure grant from the bulk of conditional grants has increased from R4,1 billion to nearly R6 billion over the medium term.

In 2003-04 the Consolidated Municipal Infrastructure Programme, the Community-Based Public Works Programme and the Urban Transport Fund together amounted to only R2,64 billion. But this financial year the municipal infrastructure grant, which will be replacing these three, amounts to R4,5 billion, which is appreciated.

Capacity-building grants will be capped at R750 million from 2005-06 onwards. A commonality between the equitable share and the municipal infrastructure grant is that an individual municipality receives a share of funding as a proportion of the allocation to all municipalities, rather than their allocations being viewed or looked at as needs-based. The MIG introduces … Perhaps, for the sake of time I should say that notwithstanding all these challenges …

The DEPUTY CHAIRPERSON OF COMMITTEES: Hon member, I’m afraid your time has expired.

Cllr M D DIKOKO: Well, Chair, maybe if you allow me 45 seconds, I will be able to say that Salga will continue to … [Time expired.]

The DEPUTY MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT: Hon Chairperson, Ministers, members and special delegates, ladies and gentlemen, decades of apartheid colonial rule penetrated the most basic and elementary aspects of our lives and sought, as its primary objective, to socially and morally oppress and divide the majority in our nation. Both social status and human dignity were judged in terms of white and black.

The apartheid regime’s policies of exclusion separated us from each other and defined the majority as second class residents, fit only to serve and provide labour to a small racial minority. These same exclusionary policies separated us into racially distinct places of residence, worship, school and leisure. Our cultural, religious and linguistic differences were used against us to reinforce this exclusionary logic.

In 1994 this country embarked on a new journey of reconstructing and reweaving the rich, social, human fabric and tapestry of our broken society. The majority of our people voted for a new society based on values such as nonracialism, nonsexism, equality and human dignity in a single united South Africa. In 1994 this newly elected democratic Government started the process of building one inclusive South African nation. Our commitment to nation-building was captured in the supreme law of the land in 1996, whose founding provisions clearly outlined a new value base. This was further enshrined in the Bill of Rights that affirmed the democratic values of human dignity, equality and freedom.

Freedom of expression and the recognition of 11 official languages became two of the many defining features that separated us from the previous apartheid regime. We went further in our Constitution to define the role of the state as being that of respecting, protecting, promoting and fulfilling the rights outlined. This was further complemented by making provisions for the establishment of various independent state institutions whose role it was to strengthen our constitutional democracy.

On matters specifically pertaining to nation-building and social cohesion, we provided for the establishment of the Human Rights Commission, the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities and the Commission on Gender Equality.

The nine provinces are an indivisible part of the Republic of South Africa. Provinces have an indispensable role and responsibility in contributing to matters of nation-building and social cohesion, as outlined in the Constitution. Provinces have legislative and executive powers within the concurrent functions in schedule 4, and exclusive functions in schedule 5 of the Constitution. What this means in practice is that provinces mainly administer social services functions, that is education, social grants and health. An analysis of expenditure trends since 1994 shows that the provincial sphere continues to play a valuable role in addressing some of the material conditions that give rise to social fragmentation and moral decline in our communities.

Firstly, more than 50% of the national annual Budget is allocated to provinces, and of this amount more than 80% is allocated between three sectors, that is health, education and social grants. Secondly, if we look at provincial expenditure for the fourth quarter of 2003-04, we can see that from a budget of R171,1 billion, provinces had spent R170,1 billion. Capital spending in the nine provinces was R17,4 billion of the total adjusted budget of R19,2 billion. The highest share of capital spending was in the public works, roads and transport departments.

Education expenditure for the fourth quarter totalled R59,8 billion, social development R42,2 billion, and health R37,1 billion. Overall social services, that is education, health, and social development spent 81,7% of total provincial spending.

This brief analysis demonstrates the important role that provinces are playing in contributing to the social and human capital wellbeing of our people. Inadequate schools and education infrastructure, poor social amenities, a lack of basic health care facilities, and the absence of social grants to the most vulnerable all undermine the basis for national pride and social cohesion.

This role of provinces must be located in our system of intergovernmental fiscal relations. The Constitution gives provinces very limited own revenue- raising powers. It is for this reason that provinces rely mainly on national transfers. In 2002-03 over 96% of provincial revenue was derived from national transfers. Provincial own revenue is thus just under 4% of their own budgets.

Expenditure analysis trends within the provincial sphere, undertaken by the National Treasury over recent years, speak to a number of positive trends. Key amongst these has been the ability of provinces to improve expenditure management. This has resulted in strong real spending of 7,5% in provincial budgets in 2003-04. This will allow provinces to expand and consolidate existing programmes in key areas of social development in 2004 and beyond.

As a country we have been proud to be able to demonstrate the expansion of our social safety net and social grant programmes to the most vulnerable in our country since 1994. Expenditure on social grants with the direct aid of provinces, since 1994 to 2003, has increased from R10 billion to R34,8 billion. The historical reasons for this expenditure pattern are well known to us. However, as we move into the next decade we will need to find innovative ways of adopting a more sustainable allocative spending pattern. This speaks to addressing the fundamental duality in our economy and the role that provinces will need to play in this regard. We will return to this matter on a later occasion.

In 2003 this House supported the enactment of national framework legislation on the institution of traditional leadership. Since the birth of our new democracy in 1994, this piece of legislation is probably the single most important law to affirm the relevance of the institution of traditional leadership in the reconstruction and development of this country.

In the preamble to this legislation we recommitted ourselves to the following democratic values, and these included: democratic governance and the values of an open society; and gender equality within the institution of traditional leadership. We affirmed the role of this institution in our system of governance across all three spheres of government and entrenched a number of provisions that seek to give greater clarity in this regard. We made provision for the establishment of local Houses of Traditional Leadership, traditional councils and also a National Commission on Claims and Disputes. The House has just heard from the MEC from the Eastern Cape on the progress already made in this regard.

We are well aware that this institution performed a crucial role in the promotion of ubuntu and communal values in our rural communities. This role was brutally eroded and distorted through many years of colonial and apartheid rule. As we enter the second decade of freedom in this country, we expect this institution of traditional leadership to support Government in giving full effect to the democratic values of nonracialism, nonsexism, equality and human dignity of our Constitution, as well as the spirit and provisions outlined in the national framework legislation.

National and provincial government will continue to support the institution in its role as the custodian of culture and tradition in our communities. We will also work with this institution as a partner with local government to facilitate delivery and implementation of priority programmes, and fight poverty, unemployment, marginalisation and HIV/Aids. Traditional leaders will have an important role in the campaign for moral regeneration and will need to place special emphasis on matters such as crime, child and women abuse.

The Department of Provincial and Local Government will work closely with provinces to ensure that they provide appropriate support to this institution of traditional leadership, especially as they prepare and finalise provincial-specific legislation on this institution by early 2005.

In May 2004 the President outlined the key priorities for the country in 2004 and beyond. We will expect the institution of traditional leadership, as it is constituted across all levels of Government and in our local communities, to clearly define their supporting role in facilitating the implementation of these commitments. Key programmes that will require their active participation will include the Integrated Sustainable Rural Development Programme, the Expanded Public Works Programme, the municipal infrastructure grant and various social development programmes and social grant campaigns.

In 2003 we enacted legislation that made it possible to establish the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities. This commission will also play a unique role in strengthening the social fabric of our society. Under the apartheid regime our wealthy reservoir of culture, religion and language was used as instruments of division, segmentation and discrimination. The fragmentation of our society was based on racist and colonialist notions of social status and class.

Today, with the establishment and support of this commission, we aim to do exactly the opposite. Our rich diversity in culture, religion and language must be used to build a single, united and socially transformed South African nation. The mission of the commission is to promote and develop peace, friendship, humanity, tolerance and national unity among cultural, religious and linguistic communities. Since 1994 all communities are free under the law to enjoy their culture, practise their religion and use the language of their choice.

We are pleased to report satisfactory progress in the work of the commission since its announcement by the President in September 2003. Eighteen commissioners were appointed by the President with Dr Mongezi Guma as Chairperson and Mrs Marlene Bethlehem as Deputy Chairperson. The commission was formally inaugurated by Judge President B Ngoepe on 2 December 2003 in Pretoria.

This commission has already convened its first strategic planning session and has identified critical work areas or thrusts on which it will concentrate. These include public education and information; undertaking investigation and assisting with dispute resolution; undertaking policy research; facilitating the establishment of community councils; and convening its first national consultative conference by December 2004. Lastly, we will regularly keep this House informed of the valuable work that will be undertaken by this commission. The ministry and the department will provide ongoing and appropriate support to the work of the commission.

The task of nation-building and mending the social fabric of our society will require active intervention and support from the state and its various associated institutions of governance. Today we have outlined the very important roles and functions that will need to be undertaken by our provinces, the institution of traditional leadership and the newly established Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities. I thank you. [Applause.]

The DEPUTY CHAIRPERSON OF COMMITTEES: Order! I now call upon the hon Ms M P Themba. I am informed that she will speak on behalf of the MEC for local government and housing in Mpumalanga.

Ms M P THEMBA: Hon Chairperson, hon Minister for Provincial and Local Government, hon Minister for the Public Service and Administration, hon Deputy Minister, it is a privilege for me to present to you a speech on behalf of Mr J L Mahlangu, MEC for local government and housing in Mpumalanga. He is unable to be here because he is presenting his budget speech in the province today.

On 14 April 2004 the citizens of South Africa clearly articulated their wishes on who should lead in South Africa. They gave the ruling party the mandate to proceed to deliver on the people’s contract to create jobs and meet the basic needs of the people. All of us in the department of local government and housing in Mpumalanga intend to do just that. On 3 May 2004 the hon Premier, T S P Makwetla, announced a new department called the department of local government and housing. On 9 June 2004 the administrative arm of traditional affairs was also added to the new department. The overall challenge is developing a common departmental culture and work ethic from the newly merged three units. We need to provide the necessary resources, staffing and capacity-building for the new incumbents. These programmes will include the implementation of the learnership programme in the department, as well as facilitating the orientation and adjustment of the community development workers.

The merger of the three components led to the creation of a formidable structure that will inclusively build on all the people of the province. Both local and national Government will jointly, with the department, creatively respond to the basic needs of the people in a manner that builds on our cultural diverse heritage and rich value base. The addition of the traditional affairs administration follows closely on the signing of the Traditional Leadership and Governance Framework Act, No 41 of 2003. This Act suggests that we need equivalent provincial legislation. Significant guidance provided by this Act is a judicial structure to deal with succession disputes and other disputes. Legal task teams are preparing for the necessary legislation. The local government transformation process is nationally driven. The process comprises 15 strategic interventions. It is a systematic and phased process, which commenced in 2000. The Mpumalanga province actively participated in this process.

Our province’s performance in this process demonstrates a commitment to development and growth. A sound foundation has been laid and building blocks are in place. We are taking a cue from the spirit of intentions in the Intergovernmental Relations Bill and framework. The province will utilise the national guidelines to developmentally build sound relations within the various spheres of Government. This is a concerted action aimed at proactively building a strong local government sphere and enhancing its status to deliver services within a stable, well managed co-operative government framework; strengthening the existing base of structures to achieve sound and financially viable local government with a stable administrative and institutional information technology systems; improving accelerating and extending the initiatives rolled out by free basic service delivery and local economic development; and deepening local democracy and accountability to ensure the capacitating of ward committees. To this end workshops have been initiated to build the capacity of ward committees. The community development workers will add value to this process.

The recent negative publicity at local and district municipal levels demonstrates a need to establish a strong provincial development support structure for municipalities. The Minmec system, the Municipalities and MECs’ Forum will be utilised as a method or vehicle pertinently to provide leadership and policy information sharing, thereby providing direction on critical governance matters. My department has started implementing this developmental approach. A monitoring and evaluation information and technology system was piloted in eight municipalities. The lessons learnt suggest a need to roll out the monitoring and evaluation IT system into all municipalities over the next two-year period. This diagnostic tool will be followed by the diagnostic response, and the support team will be set up by the end of December 2004. This team will be able to come into a municipality, follow up on the issues raised by the diagnostic tool and put in place corrective measures. The lessons learnt in two ventures managed to put in place the much-needed capacity that improved revenue and stability at Dipaliseng and Ethlanzeni. We will continue to consolidate these gains. This is going to be a dedicated permanent team.

The department is committed to the elimination of corruption. We will be enhancing sound systems of accountability within all structures of the provinces. We are acting on all the identified forms of corruption and are adopting a developmental approach to capacitate all our structures on sound governance practices. The full implementation of the code of conduct for public servants is one of the initiatives. Increased contact with senior leadership at municipal level, both administrative and political, will enhance the plan to rid us of these negative elements. The current reality is that free basic services are not reaching people who need it most, namely the previously disadvantaged sectors of our community. The reason is that the provision of readily measured water is not assured in the previous homeland areas and a sanitation prerequisite infrastructure is not in place. This infrastructure costs a lot of money. I am suggesting a bold move that will have an impact on service delivery. I am proposing that we bite the bullet and roll-out full water and sanitation services, district by district over the next five years. We will achieve this lasting impact if we look at the full municipal infrastructure grant and roll-out per district of the total water and sanitation programme. While we ponder on this strategy we will continue with the current plans that cannot be halted because they have already commenced. The roll-out of free basic services will address the needs through the municipal infrastructure grant.

The province will deliver on disaster management services in compliance with the national policy. Plans are advanced to establish a provincial disaster management centre and the roll-out of the provincial framework and guidelines that will assist every municipality to develop its own disaster response programme. Numerous capacity building initiatives are taking place. The Norwegian funded initiative enables us to pilot the IT diagnostic tool. Workshops are taking place on the Municipal Finance Management Act. This will ensure sound financial management, disaster management, the roll-out on MIG and community development in Mpumalanga and the presidential strategic leadership development programme.

The introduction of community development workers to assist with community participation at local government level will start with 60 participants. Recruitment is at an advanced stage. Standards drafted in bylaws will be published in the provincial Gazette. Municipalities, if they do so wish, can adopt these bylaws as their own. This will faciliate the billing system. The bylaws in question are related to credit control, debt collection, cemeteries and crematoria. Thank you. [Time expired.][Applause.]

Mr P F VILAKAZI (North West): Chairperson, hon Minister Mufamadi, Minister Fraser-Moleketi, Deputy Minister Hangana, MECs and members of the NCOP, you will bear with me, I have a bit of flu. Deputy Chairperson of Committees, the new paradigm of local government emerged during the intense and vigorous election campaign, led by the President of my party the ANC, Comrade Thabo Mbeki, when he visited young and old, black and white alike in their homes to see what has to be done.

It emerged during the election day itself that saw millions in long queues at Ga-Sekgonyane, Garankuwa, Motswedi, Mafikeng, Kanana, Klerksdorp, and many more towns, townships and villages, including farmlands in our province. This is a mandate given by our people on how the ANC should take government forward. The people of South Africa entered into a people’s contract with the ANC to deepen participatory democracy, provide municipal services efficiently, and put quality shelter over their heads in a more rapid way, creating jobs and fighting poverty.

On 24 May 2004 His Excellency President Thabo Mbeki gave all of us marching orders setting the tone for a delivery framework, underpinned by clear targets and time-based deliverables in the state of the nation address. These targets, inter alia, included giving all people access to clean water in the next five years, extending basic sanitation to more than 300 000 households in the coming year, eradicating the bucket system in all our townships by 2006, spending R14 million in the next three years to give people access to shelter, and lastly to spend R1,2 billion annually which will focus on bulk electricity infrastructure in rural areas and address the estimated 3 million household backlog in electricity.

The hon Premier of the North West, Ms Molewa, on 28 May 2004 directed all of us in the province to elaborate on provincial orders of delivery and this, inter alia, included in the short term to act decisively to ensure functionality of all those municipalities crippled by political and administrative problems, resulting in the collapse of service delivery; in the medium to long term to build capacity of municipalities to deliver services through training in conflict management, project management and administrative skills, guided by the national strategy assembly a trouble- shooting team to assist troubled municipalities, intensify the training of ward committees, roll out the Expanded Public Works Programme, to drive skills development targeting the youth, women and people with disabilities; and capacitating traffic policing and public safety institutions, aligning their work with counterparts in other provinces and municipal level enforcement agencies. She also said to us that municipal policing needed to be piloted in the province in the Mafikeng and the Rustenburg Municipalities. Minister Mufamadi on 21 June directed departments of local government in the entire country to pay priority attention to technical requirements for good governance. And on his part, he will assemble a high-calibre team to undertake intense hands-on support for municipalities experiencing short- term needs. He also mentioned with regard to the municipal infrastructure grant that we should ensure that over 375 000 households benefit through the provision of clean water; and that over 300 000 households benefit through the access to basic sanitation in the year 2004-05.

He also said that the progressive, natural solvency of municipalities needed to be put on our priority list and that he will ensure that the Property Rates Act guidelines are issued within the next three months. He also said that the equitable share allocation will be revised and therefore be equitably distributed. He also directed us to the free basic programme to extend the social safety net to the most vulnerable. Today Minister Mufamadi highlighted the need to create an effective intergovernmental framework underpinned by interspherical planning and budgeting implementation processes. This we agree with and support.

On the 25 June we presented to the North West Provincial Legislature our plan to realize the marching orders given by our principals and the delivery processes needed to service and develop our communities. Over the past two months we started, as a department, a journey to shake the bureaucracy and the department in order to create an efficient organisation to meet the new paradigm.

We are on course to create a place where people get up every morning searching for a better way to do their best and improving on what they did yesterday. As we go about creating these efficiencies we will not wait too long to get rid of managers and staff who are not willing or able to change and embrace the new breeze of working to achieve our marching orders.

We will spend a relatively short time to recruit, train, develop and reward the best amongst us. Change in how we will deliver will occur, as you have never seen before, at a speed you have never seen. It will be fun for those who relish it and fearful for those who do not grasp its opportune moment. For us in the North West there is only one way to respond positively to the marching orders of our principals and change the way we used to do things. By this we do not mean that things were done wrongly in the past, but we mean we should improve on how we used to do things.

Contrary to the belief of some councillors and some members of the public, section 139 of the Constitution intends nothing but to assist municipalities to meet their obligations and that of serving their communities with basic services and developmental needs without fail. The North West Provincial Executive Council rightly intervened through section 139 to stabilise and normalise deteriorating administrations and the political functioning of various municipalities that impacted negatively on service delivery.

In the intervening period, Lekoataemane local municipality has been successfully dealt with and normalisation has returned. Mafikeng municipality is currently under section 139(b), which proves to be difficult to resolve. Recently an agent was appointed and the departmental seconded official was withdrawn to fast track and consolidate the intervention.

Mamusa local municipality was recently dissolved and an administrator appointed. The processes are under way to bring back administration to normality in this municipality. At the heart of most of these interventions there is a lack of discipline and co-operation amongst councillors, which ultimately affects the functioning of councils. It also affects the administration and consequently service delivery. As a province we have a constitutional responsibility to ensure that municipalities maintain national standards or meet established minimum standards for the rendering of services.

We cannot abdicate this responsibility and let the community suffer at the hands of people who are otherwise more interested in issues unrelated to the wellbeing of the community. We will not hesitate to intervene in that and bring perpetrators to book, and call for the re-election of leaders who put their interests first over that of the community. We are intending to take practical measures to ensure that we discharge our constitutional mandate in earnest and avoid reacting to situations only when they occur, or when they have worsened.

Over the next two weeks we will receive an assessment report of municipalities in the province from the Minister, through which we will develop a targeted intervention plan to turn around struggling municipalities. We must, however, commend the following municipalities which we think are equal to the task: the Rustenburg local municipality; the Potchefstroom local municipality; the Moses Kotane local municipality; the Southern District local municipality, whose chairperson has had the opportunity to address the House today; the Bojanala district council; the Bophirima district council and many more municipalities that continues to service our communities.

We will, in joint collaboration with the department as I said, undertake the following in a much more focused way. We will develop early warning systems to monitor the performance of municipalities on a monthly basis; we will develop empowering legislation and regulation in line with section 156 of the Constitution and 105 of the Municipal Systems Act to streamline the monitoring of municipalities.

We will assemble over the next month a high-calibre team guided by the Department of Provincial and Local Government to undertake intense hands-on support for municipalities experiencing short-term needs. We do so, mindful of the need to streamline our capacity building, support and monitoring responsibilities … [Time expired.] Mr M A MZIZI: The Department of Public Service and Administration is responsible for providing policy and strategic leadership to the Public Service, to enhance the Public Service’s ability to deliver on Government’s priorities and objectives. This is one of the most important departments because of its function of ensuring an efficient delivery of services to our people.

The efficient delivery of services to our people can only be achieved if the skills of public servants are improved. The issue of ill-equipped public servants who render an inefficient service should be dealt with as a matter of urgency. This problem of inadequate skills of public servants is a contributing factor that slows down service delivery, which especially affects the poor. It is vital that this issue be dealt with as speedily as possible.

The inefficiency of Setas, in addition, only aggravates this problem of skills acquisition. The Setas are supposed to render a service, but instead they seem only to add to the problem instead of solving it. They need to become more results driven for the improvement of skills acquisition by public servants. This is fundamental to the improvement of service delivery and an improved Public Service for all South Africans. In addition, the IFP believes that the Department of Public Service and Administration renders an important service. They need to focus on skills acquisition for public servants as a fundamental point of departure.

The IFP supports the Department of Public Service and Administration’s objective to prevent and combat corruption in the Public Service by establishing and implementing strategies and partnerships that improve ethical conduct and practice. In this regard the IFP supports the Vote.

The Department of Local Government and Administration carries out a very important function in our society, which is that of developing and promoting a national system of co-operative governance and to support the development of provincial and local government.

There is, however, concern about whether it has enough capacity to carry out all the prerequisites in consolidating the system of local government for accelerating service delivery. In relation to this, local government has to be capacitated adequately to ensure that it is able to perform its function effectively. One problem that will also affect access to services, and hence service delivery, is adequate funds for municipalities to make basic services accessible to those who need them.

The IFP does not believe that adequate funds have been allocated to the budget of the Department of Local Government and Administration. The IFP also believes that this budget will not accommodate the requirements of the free basic services for communities. Many municipalities have failed our people in supplying free basic services, stating that their budgets do not allow them to expand to reach all areas. One such example is the Maluti aPhofung in QwaQwa in the Free State.

The Phutadichaba community have access to free basic services, while Ntabazwe township in Harrismith do not, yet they are served by the same council. In this regard, it is vital that adequate …

The DEPUTY CHAIRPERSON OF COMMITTEES: Hon member, I am afraid your time has expired.

Mr D WORTH: Thank you, hon Deputy Chairperson. My speech this afternoon is directed to the hon Minister for the Public Service and Administration. Hon Deputy Chairperson, the job of politicians is to formulate policy and provide the strategic vision. The administration then has to execute this function. Our public sector institutions constitute the most powerful instrument of Government to realise the vision for South Africa. Our people are entitled to the realisation of this vision for prosperity and democracy. Government therefore has the right and the responsibility to ensure that our public institutions are functioning optimally.

Whilst the Government has made much progress in transforming the state machinery to make it more responsive to the needs of its citizens - and more accountable - the level of service is often hardly acceptable. One has to look at the service provided by the Departments of Home Affairs and Social Development or the motor licensing offices throughout the various provinces. The work ethic is sometimes poor and the Public Service is not always motivated to serve the people and taxpayers in a dignified manner. The President has stated however that:

… this Government will ensure that the public sector discharges its responsibilities to our people as a critical player in the process of the growth, reconstruction and development of our country.

People are by far the most valuable asset in any endeavour and this holds true for the Public Service. Employing over a million people, the Public Service is by far the biggest employer in the country. Whilst the Public Service has shrunk by around 15% since 1994, many public service organisations are struggling to meet the required standards in crucial areas. The introduction of the senior management service has improved the conditions for the senior managers with the aim of retaining and attracting skilled personnel, but the lack of technically empowered personnel at all levels is a matter of concern.

This problem is particularly acute in the provinces and local government. Many skilled and experienced personnel, developed since 1994, are being lost to the private sector. The exodus of doctors and nurses from state hospitals and clinics partly reflects this pressure.

Local government continues to make use of consultants at enormous cost. Alternative ways must be found of addressing these needs by means of training, capacity-building and recruitment before hiring consultants. Consultants are often appointed without having the required experience or competence, skills are not transferred to the staff, and appointments are often virtually permanent.

The Democratic Alliance welcomes the Government’s initiative in refining the monitoring and evaluation system to improve the system of government and the quality of outputs. We welcome the launch of the Batho Pele Gateway Portal to provide streamlined government services, as we heard this afternoon, online at post offices and multipurpose community centres.

Corruption in the Public Service continues to be of major concern. Corruption is essentially the use of public office for private gain. The most illegal activities in the Public Service happen with the awarding of tenders, buying of equipment and other goods and services. A high standard of professional ethics must continue to be promoted and maintained through the implementation of the Public Service Anti-Corruption Strategy, by strictly enforcing the Public Finance Management Act as well as the Local Government: Municipal Finance Management Act. Corruption, however, is likely to continue to be a major challenge to the Public Service and proactive efforts will be needed to address new forms of corruption as they emerge … [Time expired.]

Ms E S MABE: Hon Deputy Chairperson, hon Minister, hon Deputy Minister, present MECs, hon members, special delegates, ladies and gentlemen, these are the speech notes of the MEC of the Free State who could not be present here today because of unforeseen circumstances. It reads as follows:

We are celebrating 10 years of a democratic system in Government. In our pursuit to restructure and govern the country, we were faced with many daunting challenges; our efforts were not in vain. In these 10 years local government, in particular, has assisted the country in achieving the following: We have established a nonracial, democratic, developmental local government; rationalised the number of municipalities from 99 to 25 to ensure the pooling of resources and expertise for carrying out the mandate assigned to local government; and developed and enacted a series of policy and legislative frameworks geared towards transforming municipalities into developmental entities - as envisaged by the Constitution.

A number of tools outlined in the aforesaid policy and legislative frameworks, viz integrated development planning and community involvements or engagements are being used effectively by municipalities as a basis for ensuring optimal use of limited resources and forging participation for development facilitation with communities they serve and other stakeholders. Financial management and the position of municipalities have been stabilised in the past three years through the Municipal Support Programme that yielded a positive effect on the treasury capacity of municipalities.

Despite the laudable achievements, there are a number of challenges that local government faces that need to be tackled with relentless vigour and determination. These are firstly, the limited revenue bases that are prevalent in the majority of municipalities in our province - this means that the attainment of enduring financial viability will be an arduous task; secondly, building leadership capabilities for the provision of strategic and effective leadership at municipal level; thirdly, supporting municipalities in the implementation of the new system of local government

  • planning, performance management and the new policy frameworks: the Municipal Finance Management Act of 2003 and the yet to be enacted Municipal Property Rates Act.

There are a number of factors that need to be dealt with simultaneously to create an environment conducive to setting municipalities on a path to attain financial viability. Firstly, we will continue providing ongoing support to municipalities in executing their Treasury responsibilities of preparing budgets, compiling financial statements and updating financial records and asset registers. Those activities are the foundation for financial viability as part of the Municipal Support Programme. Strategically, we will be providing resources to selected municipalities to develop comprehensive mechanisms for revenue collection strategies and development and implementation of strategies to deal with the rising municipal debt in our municipalities. Furthermore, we will ensure that projects identified and implemented in municipalities to improve liquidity of municipalities contribute towards the achievement of objectives set out in the Municipal Revenue Enhancement Programme developed by the Department of Provincial and Local Government.

Secondly, we will be conducting an extensive review on how the lesser- resourced municipalities in our province have executed their constitutionally assigned developmental mandate. This exercise will provide information for the anticipated review of local government. Strategically it would provide options to be pursued to support municipalities in their quest to achieve financial viability.

Thirdly, the department will be placing greater emphasis on local economic development to support municipalities in their endeavours of growing local economies and thus create a foundation for financial viability. However, we are aware that municipal LED initiatives can only work in a thriving provincial economic development context. To this end, we will partner and encourage our relevant sector departments and other stakeholders like the private sector in implementing strategies geared towards growing the provincial economy. That will invariably impact positively on local economies.

In partnership with the SA Local Government Association - Free State, and the Department of Provincial and Local Government, we will ensure that elected municipal leaders are trained. We will continue providing councillor training in the budgeting process. We will ensure that councillors understand their role as envisaged in the recently enacted Municipal Finance Management Act through convening a series of training or information sessions.

We have forged a relationship and established a partnership with the University of the Free State and Salgas in establishing a Local Governance Unit to develop and capacitate municipal leaders. In the past year we have trained 100 municipal leaders in project management. For phase two of the leadership and development programme, the unit will be running a series of leadership programmes focusing on strategic planning, performance budgeting and community participation.

In partnership with the Development Bank of South Africa, through its development fund, R10,3 million has been granted to implement a municipal capacity-building programme. This programme will supplement the mentioned technical assistance that focused extensively on enhancing the treasury capacity of municipalities. We will do the following to enhance institutional capacity, administrative leadership and capacity in municipalities: We will be establishing a support team at the department that identifies and unblocks bottlenecks inhibiting the acceleration of service delivery, particularly free basic services. We will be providing mentorship and ongoing technical support to municipalities in implementing performance management systems. This will assist in improving the quality of municipal integrated development plans and ensuring the accountability of municipal leadership to developmental priorities that have been set in consultation with communities. A series of policy awareness workshops will be convened with the provincial treasury on municipal finance management and the Municipal Property Rates Act.

In partnership with local government, the Department of water Affairs and related State Education and Training Authorities we will facilitate learnership programmes for 100 learner community development workers. These new cadres of workers will ensure that a critical mass of South Africans gain access to the services that Government provides.

Lastly, we will also be documenting the experiences of municipalities in our province that were short-listed for the Vuna Awards. Their experiences will be translated into a best practice guide that will be disseminated widely to all our municipalities in our province. We will be using the guide to launch a forum where municipalities will be exchanging information and learning from one another. It is envisaged that this forum would lay a foundation for the forging of collaborative networks amongst our municipalities. I thank you. [Applause.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr M J Mahlangu): I have been informed that the following member is going to make her maiden speech in the NCOP. I have also been informed that she is a former member of this House. Congratulations on being promoted to MEC for Local Government. [Applause.] It is of course Ms Dorothy Mahlangu, former Chairperson of the Finance Committee in the NCOP.

Ms D MAHLANGU: Chairperson, thank you very much, and good afternoon to my former colleagues. It’s good to be back. I have fond memories of this place and I assure you that I will cherish them for as long as possible. First of all I would like to congratulate both Ministers for having been reappointed by our President. I think that shows his confidence in them, and indicates that they have done well in the first five years. I would also like to congratulate the leadership of the NCOP on the responsibilities that you have been given. I know the challenges that this House is faced with, and I am looking forward to supporting you in whatever way I can.

Chairperson, Deputy Chair, Minister Mufamadi, Minister Geraldine Fraser- Moleketi, Deputy Minister Nomatyala Hangana, congratulations - MECs for local government and housing from different provinces, members of this august House, ladies and gentlemen, I am honored to take part in this very important debate today. The transformation of local government structures has not been an easy task, given the history of discrimination between the haves and the have-nots in delivering basic services and the lack of income- generating and productive economic activities in some of our localities. The post-1994, democratic era provided us with opportunities to transform the sphere of local government to become democratic, inclusive and participatory - with sufficient checks and balances.

On 5 December 2004 we are celebrating four years of democratic government at local sphere. Despite some initial difficulties, the Gauteng government has successfully established 15 functional municipalities, which are amalgamations of the 51 inherited from the apartheid dispensation.

I am proud to say that the local government sphere in the province is now stable. We must, however, continue to work with municipalities to become an effective sphere of government that is able to deliver services to all communities, as well as to be responsible and accountable to ratepayers. This will entail the maintenance of existing and the expansion of new infrastructure, especially to communities where these are lacking.

Having successfully established functional municipalities, we are now in a consolidation phase to ensure the strengthening of their institutional capabilities and financial viability. This process will ensure that municipalities have proper billing systems, financial management systems and managerial and administrative capacities in order to meet the challenges of local developmental government.

The consolidation of municipalities in our province will also ensure greater citizen and community involvement in local governance, as envisaged in the different pieces of municipal legislation. In this respect we will ensure functional ward commities and greater responsiveness and accountability by councillors. Municipalities in Gauteng are already working on innovative ways to enhance their financial viability. These include improving their billing system, revenue enhancement, different IT systems, replacing faulty metres, installation of new meters in areas which never had them before, implementation of proper credit control policies and improving the customer relations programme.

Almost all municipalities in our province have been categorised as having high capacity, particularly the metros and some districts, and some of them have medium capacity. They have been categorised by the National Treasury. The Municipal Demarcation Board could not find any municipality in Gauteng without capacity, only one district has low capacity.

Our efforts will be directed at ensuring that we improve the capacity of those with medium capacity, but we will also have a specific approach to help the high-capacity municipalities in the areas of their weakness. The R15 million in the current financial year will be used to target particular areas of weakness and to provide training, ensuring that we use accredited service providers. In the past most municipalities procured services from organisations that were not accredited, hence they could not claim money from Seta. We will work with municipalities to ensure that all of them are able to address problems raised by the Auditor-General’s report. I remember very well the last speech I made in this house was about such issues, ie to put policies in place to make sure that we help municipalities to put policies in place where such policies do not exist.

In the long term my vision is that we should see all municipalities in the province getting unqualified audit reports. Today 102 community development workers have been deployed across our province. We are working with our local government and the water Seta to further train the community development workers to become multiskilled so that they can assist communities to overcome service delivery blockages, as well as empower communities to be effective stakeholders in Government. By December 2004, 200 community development workers will be deployed into a learnership programme. Priority in this regard is given to the urban nodes in our province, as announced by the President in his state of nation address. In some of these nodes we have already deployed community development workers. It should be borne in mind, however, that such deployment includes active, extensive and practical work within communities.

Through deployment of community development workers Government aims to ensure that community centres, such as MPCCs and parliamentary constituency offices, throughout the province, are properly utilised as a form of engagement and offices for these people. But they will be linked with different council offices, and we are currently working on a study that is going to guide us on what is the best form of institutional arrangement for community development workers, and on intergovernmental relations. We will work closely with the Premier’s office to ensure that we strengthen co- ordination and integration between the province and municipalities in our province.

This will also assist us to contribute better to the draft intergovernmental relations framework and to the Bill currently under discussion at national level. In the meantime we will use existing structures to co-ordinate and support the provincial imperatives that include municipalities. It is envisaged that in the medium to long term, as a province, we shall have to think more strategicly on how to ensure that we work together as the three spheres of government - being informed by our unique strength as a province and our capabilities.

You will recall that both the President and our Premier have committed our Government to the fact that all citizens of Gauteng in this regard, but also the country, will have access to clean water and proper sanitation by

  1. This commitment is part of our effort to eradicate poverty in our societies. It is important to note that most people without access to these services reside in informal settlements, and we will work very closely with the Department of Housing in our province in the formalisation of informal settlements, as announced by the Premier, and make sure that these people get basic services, whether temporary or waterborne structures.

As part of our commitment to extend these services to our people in order for them to live a decent life with pride and dignity, we have allocated an amount of R100 million for water and sanitation in the current financial year. It will be used in different projects. Some of it will be used to eradicate the bucket system, some to service the informal settlements, and another amount will be used for capacity-building and institutional support. We are working very closely with municipalities to ensure that these services are delivered at an acceptable standard, because there is a disjuncture between the provincial norms and what municipalities are willing to compromise to come to an acceptable norm. So, we are working with other departments to ensure that we agree on some form of standard.

It is also important to know that most municipalities in our province have included free basic electricity to connected consumers. There are only three municipalities that are not in a position to do so; these are Randfontein, Nokensdiamond and Morafong. It is important to indicate that these municipalities are some of the municipalities that do not have any form of revenue whatsoever, and when you talk about the review of the equitable share, consideration should be given to such municipalities which do not have any form of revenue, and so forth.

We have committed ourselves as a province to extend services to where they do not exist, in particular to farms. Some of you may think that Gauteng does not have rural areas, but we do. We are going to work with the agricultural organisations, both black and white, to ensure that services are extended to these areas. We will continue to improve monitoring and support mechanisms to strengthen the capacity of municipalities to implement programmes and deliver services. We will work with the Department of Housing and the Department of Social Development to develop a framework for the provincial indigent policy to guide all stakeholders, including municipalities in the province. In the end the policy must provide a single window for the benefit of the poor masses of our province.

The municipal infrastructure grant owes a contribution towards our commitment to halve poverty and unemployment by 2014. The department will ensure that we accelerate the municipal infrastructure development and maintenance programme. An amount of over R678 million that will come from national departments have been allocated to 10 municipalities in Gauteng, that is three metros, six district and some local municipalities - and I am told my time is about to expire. So, I may not be in a position to share some of my issues.

I just want to highlight a few challenges as I conclude. One of them relates to what the President said on 21 May. He said that the first regional electricity distributor must be ready by June 2005, and the rest by January 2006. To ensure that municipalities are also ready, we have began the process of helping them to ring-fence their electricity function, so that when the rest comes into effect the municipalities in the province do not get affected severely. Secondly, the demarcation process has been started in earnest by determining the number of councillors, and the next phase is the delimitation of the inner-ward boundaries. To this end the work has … [Time expired.] [Applause.]

Mr B J MKHALIPHI: Thank you very much, hon Deputy Chairperson. Hon Minister, hon Deputy Minister, MECs, special delegates, members and our colleagues from Salga, as we approach the second decade of freedom the role of the local sphere of government will continue to occupy centre stage on matters of service delivery and development.

During the election campaign it was apparent that our people mainly raised issues about local government despite the fact that the election was about provincial and local government. This scenario clearly illustrates the kind of expectations people have of local government and the prejudice faced by local government.

On considering the performance of the department in the past year, as well as its projections and budget for the current year, one notices the remarkable strides that have been made. We note with appreciation that the department has maintained the progressive stance in line with our declared approach of developmental local governance. We also noted that throughout the process of policy implementations runs the visible vein of community participation with the end results being policy enrichment and empowerment of all role-players. Indeed, there is more room and opportunity for each role-player to put forward its contribution to the national effort to ensure that indeed the people are governing.

During our interaction with the department we also noted the calculated and responsible manner in which the department intends dealing with some of the statutory obligations imposed either on itself, municipalities or provincial government. As a national department entrusted mainly with the co-ordination of local government affairs, the department’s programmes adequately address several functions stemming from legislation and the Constitution. We are, however, challenged to ensure that municipalities and provincial governments attain the required levels of capacity in order to reach the milestones and meet the stipulated timeframes imposed by legislation as well as by the President in the state of the nation address.

As demonstrated to us during the briefing we are confident that the initiatives by the department, such as the Vuna Awards and especially the establishment of the local government leadership academy, will add impetus to achieving these goals. As we continue to support and monitor the strides made by municipalities in fulfilling their constitutional mandate we will also have to tap into the expertise of the Municipal Demarcation Board as far as its assessment of municipal functions are concerned, not neglecting our declared objective of a wall-to-wall local government. We are also of the opinion that the Municipal Demarcation Board should be implored to maintain a fair balance, wherever possible, between using its technological expertise as opposed to community participation especially in the processes of ward delimitations. We are of the view that increased community participation would further enhance the board’s profile and its activities. We concur that the decisions on the determination of ward boundaries will not always meet everybody’s wish. A further accord would be another look at the Demarcation Board’s budget shortfall of R5,5 million. We are concerned that this shortfall could compromise the board’s activities, especially in the light of the forthcoming local government elections. Despite all these strides made and progress achieved at local government, situations may still arise that would necessitate an intervention in terms of section 139 of the Constitution.

Our honest observation is that recently interventions have been occasioned by the human factor among councillors rather than any systems failure. This speaks volumes about the progress and sanctity of our developmental system of local government. We are also of the opinion that we need to arrive at a situation ideally that would make section 100 or section 139 of the Constitution fall into some kind of disuse. I am sure that our collective ambition in this House and in Government in general is that when we speak of interventions, we refer only to the stipulations of section 154 of the Constitution, which entail the support and strengthening of the capacity of municipalities to enable them to manage their own affairs, to exercise their powers and to perform their functions.

We need to move with speed and firmness to address the tendency that is looming among councillors. We need to indicate that the increasing tolerance of any irresponsible conduct will not be tolerated whenever and wherever it occurs. Colleagues, if anyone of you thought that our strides, especially of our senior management there, were going unnoticed, someone has some encouraging news for us all here. And I read here from a quotation of this booklet published by the South African Airways entitled The South African History. The hon Chris Landsberg, Director of the Centre for Policy Studies - and it is not that I always agree with him - has this to say:

Rarely in the history of world affairs has a young democracy … exerted so much influence and leadership as does this liberated republic. Indeed, South Africa exerts a global leadership incommensurate with its size and capabilities. It punches above its weight. South Africa’s effect on world governance in the last 8 years has been nothing short of outstanding.

And I agree with him entirely on this matter. I thank you. [Applause.]

The DEPUTY CHAIRPERSON OF THE NCOP: Order! All right, all right, all right, ok. I am waiting for Mrs Dolo to finish. [Laughter.] Are you done? All right.

The MINISTER FOR THE PUBLIC SERVICE AND ADMINISTRATION: Thank you very much, Deputy Chairperson and I would like to thank the members of this House for their contributions to this Budget Vote debate. One could actually comment on a number of matters raised or on all matters raised today, but I felt that this was also feedback to us in the governance and administration cluster by way of giving us input on the portfolio of Public Service and Administration as well as the portfolio of Provincial and Local Government.

One would interpret this as constructive input from patriots who have the interests of our country and the interest of this region at heart; also from patriots who would like to make inputs in order to ensure that we are able to engage globally in an appropriate manner. There are obviously exceptions to one or two comments. I want to say generally to everyone who has supported this Budget Vote and contributed to the debate that this is the way in which one has interpreted this.

In terms of one hon member raising a challenge in relation to the role of the state and the necessary centrality of the state in a developmental state and even in the economy, I want to state this afternoon that there is a clear need for the role of the state. You find this not only in the developing countries, but also in the developed world, so we must not develop a blind side when we engage in certain debates because we know that the private sector can drive growth. But the role of the public sector is essential for growth opportunities and dealing with certain realities, and if we look at our situation we can mention one and that is that of economic disparities. We have in South Africa examples where we’ve used very clearly the whole issue of public funding. Gauteng province is one such example, if one has to give an example, where public funding was used to crowd in private funding or to crowd in both domestic and foreign investment. I think we need to be careful that we do not become narrow in the way we want to analyse that.

We also see the need for the role of the state if we want to talk about the deracialisation of the economy. When it comes to the Public Service sector we are going to use procurement in terms of contributing to the whole issue of empowerment, etc. I raise this not apologetically, but merely to state that we need to be very careful when we narrow down a debate because we have a particular blind side or we are ideologically myopic when we look at particular issues. I think it is also necessary to say that there are certain services that can only be delivered by the Public Service sector and delivered quite well in instances.

I don’t think at any point today did one claim, or at any point previously, that the public sector has reached the point where we have a situation where all services are delivered across the spectrum. We have clearly said that there are disparities in the nature in which these services are delivered. This is precisely why we are looking at the issue of people and systems, and the institutions that are there, and we are trying to see how we can improve this on an ongoing basis. I do not think we are doing badly but we can do better and we need to see how we can do better.

So very clearly then, just to conclude that aspect, there is a particular set of values that you will only find in the public sector and not in the private sector that is very necessary when you look at the issue of service provision. Hon chairperson of the select committee, I actually want to say that one really appreciates your inputs and I want to raise one mild concern about an analogy that you used today. You said we should interpret Batho Pele as the people being the bosses and the owners of the state. Knowing where you come from, I am not sure how you engage with bosses and owners of a private entity and I did not think that we wanted an ongoing class struggle. Instead I thought that we should to change that analogy a little bit. But I think the point you made about serving the people is an absolutely essential point. In terms of the points other members have made around the centrality and importance of human resource development we will not and cannot argue about that in any way. Yes, we are working on how we are going to take it forward. We centrally at the level of governance and administration have a particular subcommittee that looks at the question of human resources. On looking at our responses to dealing with the challenges around skills development for the immediate future, the medium term and the long term, this will also deal with the area of scare skills that largely covers professional capacities. For us the big challenge is that our response around human resources in our country should be such that we know the interventions will be sustainable and we will be able to deal with the questions in a manner that is required. This covers issues that include retentions, recruitment of personnel and conditions of service.

We heard what our President said when he spoke about this matter last week. I also want to say regarding the issue of consultants, we do have a framework for the use of consultants in a responsible manner in the Public Service. I will suggest that hon Worth, who seems to be new to this House, accesses our site and looks at what is available there because there is quite important information that can be shared. That also deals with the anticorruption thrust.

I want to conclude by saying that, when you look at the anticorruption framework, we can pride ourselves as a democracy that we have contributed to putting that framework in place. We have also put in place legislation that hon members have heard about over recent days that has been used for Operation Dribble. That framework was not in place in the past. That legislation was not there to be used. We should commend ourselves on what we have done. On matters of community development workers and all others, we note this and we definitely will come back and report to the various committees. I thank you.

The MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT: Chairperson, I wish to join Minister Fraser-Moleketi in thanking the hon members who participated in the discussion of the two Votes before the House. In the course of discussions and the debate members and delegates made several valuable suggestions on what needs to be done to improve the efficacy of our governance and administrative systems. I want to assure the House that these suggestions will be taken to heart.

I also wish to note the announcement made by the ``share person’’ … [Laughter.] … of the select committee, the hon Shiceka, to the effect that the committee intends visiting municipalities in order to put its collective finger on the pulse of the local government system. We welcome this because we believe that it will enable the committee on behalf of the Council to better monitor the work of the administration and the executive, and also to co-operate with us for the good of our country. Once more I want to thank you all.

The DEPUTY CHAIRPERSON OF THE COUNCIL (Mr M J Mahlangu): Thank you very much. On behalf of the Council I also wish to thank you all who participated in the debate today, including the two Ministers.

That concludes the debate and the House is adjourned. Thank you very much.

The Council adjourned at 17:42. ____

            ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

                       WEDNESDAY, 23 JUNE 2004

ANNOUNCEMENTS

National Assembly and National Council of Provinces

  1. Classification of Bills by Joint Tagging Mechanism
 (1)    The Joint Tagging Mechanism (JTM) on 23 June 2004  in  terms  of
     Joint Rule 160(3), classified the following Bill as a money Bill:


     (i)     Taxation  Laws  Amendment  Bill  [B  8  -  2004]  (National
          Assembly - sec 77)

                       THURSDAY, 24 JUNE 2004

ANNOUNCEMENTS

National Assembly and National Council of Provinces

  1. Classification of Bills by Joint Tagging Mechanism
 (1)    The Joint Tagging Mechanism (JTM) on 11 June 2004  in  terms  of
     Joint Rule 160(3), classified the following Bill as  a  section  75
     Bill:


     (i)     Public Investment Corporation Bill [B 6 -  2004]  (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)     Bills  passed  by  National  Assembly  on  24  June  2004   and
     transmitted for concurrence:


     (i)     Appropriation Bill [B 3 - 2004] (National  Assembly  -  sec
             77)


     (ii)    Taxation  Laws  Amendment  Bill  [B  8  -  2004]  (National
             Assembly - sec 77)


     The Bills have been referred to the Select Committee on Finance  of
     the National Council of Provinces.

TABLINGS

National Assembly and National Council of Provinces

  1. The Minister of Finance (a) Report of the Executive Officer of the Financial Services Board on the Road Accident Fund - 10th Report for 2002-2003.
 (b)    Report and Financial Statements of Sasria Limited for 2003.


 (c)    Government Notice No 423  published  in  Government  Gazette  No
       26203 dated 31  March  2004:  Amendment  of  the  Rules  of  the
       Government Employees Pension Fund in  terms  of  the  Government
       Employees Pension Law, 1996 (Act No 21 of 1996).


 (d)    Government Notice No 445  published  in  Government  Gazette  No
       26219 dated 31 March 2004: Supplementary  adjustments  to  local
       government allocations for 2003-2004 in terms of the Division of
       Revenue Act, 2003 (Act No 7 of 2003).


 (e)    Government Notice No 446  published  in  Government  Gazette  No
       26220 dated 1 April 2004: Local Government allocations for 2004-
       2005 in terms of the Division of Revenue Act, 2004 (Act No 5  of
       2004).
 (f)    Government Notice No 444  published  in  Government  Gazette  No
       26230 dated 1 April 2004: Allocations made to the  provinces  in
       terms of section 7 of the Division of Revenue Act, 2004 (Act  No
       5 of 2004).

                        FRIDAY, 25 JUNE 2004

ANNOUNCEMENTS

National Assembly and National Council of Provinces

  1. Assent by President in respect of Bills
 (1)    Electoral Commission Amendment Bill [B 7 - 2004] - Act No 14  of
     2004 (assented to and signed by President on 22 June 2004).
  1. Draft Bills submitted in terms of Joint Rule 159
 (1)    Immigration Amendment Bill, 2004, submitted by the  Minister  of
     Home Affairs on 24 June 2004. Referred to the  Portfolio  Committee
     on Home Affairs and the Select Committee on Social Services. COMMITTEE REPORTS

National Council of Provinces

  1. Report of the Select Committee on Land and Environmental Affairs on the Agreement establishing the International Organisation of Vine and Wine, dated 24 June 2004:

    The Select Committee on Land and Environmental Affairs, having considered the request for approval by Parliament of the Agreement establishing the International Organisation of Vine and Wine, referred to it, recommends that the Council, in terms of section 231(2) of the Constitution, approve the said Agreement.

 Report to be considered.

                        MONDAY, 28 JUNE 2004

COMMITTEE REPORTS

National Council of Provinces

  1. Report of the Select Committee on Finance on the Appropriation Bill [B 3 - 2004] (National Assembly - sec 77), dated 28 June 2004:

    The Select Committee on Finance, having considered the subject of the Appropriation Bill [B 3 - 2004] (National Assembly - sec 77), referred to it, reports that it has agreed to the Bill.

  2. Report of the Select Committee on Finance on the Taxation Laws Amendment Bill [B 8 - 2004] (National Assembly - sec 77), dated 28 June 2004:

    The Select Committee on Finance, having considered the subject of the Taxation Laws Amendment Bill [B 8 - 2004] (National Assembly - sec 77), referred to it, reports that it has agreed to the Bill.

  3. Report of the Select Committee on Finance on the Agreement between The Government of the Republic of South Africa and the Government of the Kingdom of Swaziland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, dated 28 June 2004: The Select Committee on Finance, having considered the request for approval by Parliament of the Agreement between the Government of the Republic of South Africa and the Government of the Kingdom of Swaziland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, referred to it, recommends that the Council, in terms of section 231(2) of the Constitution, approve the said Agreement.

 Report to be considered.

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