THURSDAY, 26 MAY 2005

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                PROCEEDINGS OF THE NATIONAL ASSEMBLY

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The House met at 14:04.

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

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.

                         APPROPRIATION BILL

Debate on Vote No 1 – The Presidency (reply by President)

THE PRESIDENT OF THE REPUBLIC: Thank you very much, Madam Speaker and Deputy Speaker and Speaker Mwanamwambwa - I am very glad to see you here. As you know, I am also a Zambian. [Laughter.] Hon leaders of our political parties and Members of Parliament, Ministers, Deputy Ministers, distinguished guests, friends and comrades, yesterday we celebrated Africa Day. Perhaps it is fitting that we follow that day with yet another important campaign on our national agenda and that is bringing a girl-child to work. I’d like to say welcome to all of the girl-children in the House. [Applause.] And in particular I want to welcome the ones that were part of the staff of the Presidency today, namely Noluvuyo Sixholo, Anelisa Balfour, Celiwe Luthuli and Lauren Hendricks, who are sitting in the box here behind me. [Applause.] Indeed, it has so far been a most enlightening morning for all of us and I trust that at the end of the day, by the time they leave, the girl-children who have been working with government and with Parliament will have a better insight of the workings of government at all its levels. From the ones that we had in the Presidency, I think, we have four potential presidents for the country. [Applause.] Indeed, their presence amongst us reminds us that the things that we have to do today are very directly relevant to what happens to them in future. They have asked me to raise a number of questions with the National Assembly about matters that they think are important to the future of our country. I have undertaken to do that as faithfully as I can. They have asked that after we adjourn here, we should meet. They want to give an assessment of whether I represented them correctly. [Laughter.]

One of the issues they raised is the following: They say that knowledge is power and therefore it is critically important that we should attend to the matter of education, drawing particular attention to education in the rural areas. Many children in the rural areas are disadvantaged and don’t have access to the sort of facilities they need and therefore it is a matter that we need to attend to. They mentioned also the issue of street children. We need to ensure that we reach out to the street children so that they themselves get empowered by having access to education. In that context they also raised the question of the need to provide bursaries for the poor so as to ensure that no young person is excluded from education simply because they come from a poor family. They said that the matter of education relates directly to the issue of unemployment. The focus that they were paying to the matter of education relates to ensuring that our people do not end up unemployed because they are uneducated.

In that context they have raised the issue of the need to take some steps to increase levels of employment and in that regard referred in particular to matriculants. They say that health is one of the critical challenges that we face and it seems to them that there are some shortages in terms of health personnel. Why don’t we then take matriculants who have completed their schooling and give them the necessary training so that they can make up the shortfall with regard to health workers? With regard to the area of health, they raised the question of the availability of antiretroviral drugs for pregnant mothers.

They say that it is important also to move faster with regard to some of the social challenges that we face, such as housing. Some people have waited for too long to have access to housing and that is why some people are resorting to violence. They don’t approve of it, but that is the reason for the violence, namely that people have waited too long for such services.

They say that one of the matters we need to address is the issue of gender parity. They say that historically men have put down women, but that what we need now is a 50-50 solution. [Applause.] In this regard the boys should bear with the girls, because the girls are determined. It was believed in the past that girls would not be able to understand and cope with subjects like engineering, but they are determined to show the boys that they can cope with such subjects. [Applause.] The girl-children have said that within our society women are also taking charge and they are determined that we should pursue this task of ensuring gender equality. They say that people need to be patient with regard to meeting the challenges that we face. This is in relation to the matter of resorting to violence with regard to housing, but these things will take time and we need to be patient.

They also say it is important to address the challenge of the people who were disempowered. Therefore there shouldn’t be complaints within our society about black economic empowerment. It is important that black economic empowerment programmes should continue in order to bring in people who were excluded in the past. [Applause.] They say that this relates to the challenge that we don’t want to see our people working as sex workers or becoming drug abusers. This will happen if we do not engage this process of black economic empowerment, which will bring people into the economy and enable them to earn a livelihood other than that of a sex worker and give them hope, which will ensure that they don’t resort to drug abuse.

It is important that in our society we should stop discriminating against one another. It is important that we should understand one another, coming as we do from different backgrounds, as the understanding of one another is important in terms of building a new society. They have raised the question about how to deal with the problem of language use in schools and because they come from this province, generally the Eastern Cape, the Western Cape, and the Northern Cape, they cited examples of schools where you might have a clash in terms of use of Afrikaans and Xhosa as the mediums of instruction. They believe that it is important to avoid these divisions and conflicts and have suggested that, in situations of that kind, it is necessary to find a neutral language to use so that you don’t have this competition between these two languages. I will explain later to them why I am not going any further with their proposal on this matter. [Laughter.] They have raised this question, saying that we need to find a way of dealing with the tensions that arise at school with regard to this medium of instruction. It may very well be that, rather than having a fight to the end between two languages, one should find another language with which both factions would be comfortable. I will explain to them why I am not going any further with their proposals with regard to this matter.

Finally, they say that they believe it to be important for the Members of Parliament to give answers to these particular challenges that they have posed to them. The Members of Parliament should give direction to the country with regard to this matter, as well as with regard to the matter of gender equality, language equality, black economic empowerment, the struggle against poverty, access to education, and so on. Indeed, Madam Speaker, I believe that they raised questions that are relevant to the future of our country, as relevant as the matters that were raised by the hon members yesterday.

I would like to thank the hon members for their participation in that debate, in which we sought to focus particularly on the issue of the role of the state in meeting our development challenges. I will try to indicate what the government is doing to improve the capacity of the state to respond to those development challenges. But, naturally, this being the debate of the Vote of the Presidency, it allows for much wider discussion and, indeed, I think that the hon members raised issues that are of importance to the general challenge of transformation. I would like to mention some of these.

For instance, there is the hon Pieter Mulder, who raised issues about Afrikaners, Afrikaans, place names of the Afrikaner heroes and heroines and who indicated a sense of unease - I suppose, to put that mildly – about a process he believes is a process of marginalisation with regard to the Afrikaners, to Afrikaans and of the destruction of place names that are of great emotional value to the Afrikaner people.

The hon Lee raised similar concerns about coloureds, and even suggested, Minister of Sport and Recreation, that Brian van Rooyen is in trouble because he’s a coloured.

The hon Carol Johnson raised issues concerning white fears and black stereotypes. I believe that all of these issues are indeed very important in terms of what happens to South Africa today and tomorrow.

The hon Motsoko Pheko, perhaps like the girl-children, said that the people have waited too long for houses, for jobs, for land and so on, and explained what has been happening in some of our towns and cities on the basis that the people, indeed, have waited for too long, which seems – I think – to substantiate or perpetuate or support the notion that it is not possible in one decade to eradicate the legacy of the past. And, therefore, ten years or 11 years becomes too long.

Hon Rev Meshoe suggested in that same context that this legacy we talk about has become immaterial to contemporary South Africa and that we should therefore not even refer to it. Referring to it is a mere device to avoid our responsibilities.

Hon Bantu Holomisa thought that, to succeed in our effort to address our socio-economic challenges, we need national consensus. He therefore suggested that we needed an economic Codesa, suggesting the problems are so deep-seated that they require the most effective forms of national unity for us to be able to overcome them.

Hon Tony Leon presented the views of the DA on the important matter of the relationship between the state and the market and this is a critically important question about how we construct our society; who plays what role, who does what, in order to meet the challenges that we face.

And, in responding to the hon Dr Buthelezi, the hon Mbulelo Goniwe suggested that we ask the question whether we understand South Africa in the same way. He suggested that if we could agree on this, even the terms of understanding South Africa, how could we agree on what action to take.

When he discussed the Freedom Charter and apparently some comments that had been made about this – about the Freedom Charter – the hon Diale, I think, raised issues concerning the question of which elements of our history constitute part of our national heritage. Similar questions, I am sure, will arise from the comments made by the hon Pieter Mulder, as to what in our history constitute part of our national heritage.

When they were speaking, particularly with regard to the matter of place names, I thought about the town Grahamstown. Grahamstown, as I’m sure the hon members are aware, is named after Colonel Graham, a Scotsman, who was part of the British forces at the time of the so-called frontier wars in the process of the colonisation of South Africa in the Eastern Cape. In IsiXhosa this place is called Rhini, but it is officially known as Grahamstown. Col Graham was a member of the Scottish aristocracy and a soldier. What was peculiar about Colonel Graham was that he was the most brutal and most vicious of the British commanders on that frontier. Introduced in the course of those wars, was the practice of a scorched- earth policy. You didn’t only fight the soldiers on the other side, but you burnt their fields, you killed their cattle, you starved them into submission. You killed them into submission through hunger. He was the most brutal of the British commanders on that frontier in a period of perhaps a 100 years. You have a town called Grahamstown, named after him. The question must arise: Why do we celebrate a butcher? [Applause.]

This place has got a name and it is eRhini. We celebrate a butcher, and we see it in the dispatches of the British governor at the time and what the British governor said in praise of Graham. He praised him for his brutality, because it would break the back of the natives. It may very well be that there are people of Scottish descent in the Eastern Cape, among the 1820 Settlers, who would feel aggrieved if the people in the Eastern Cape decided to change the name of Grahamstown to eRhini. They will say that this was our national hero and a member of the Scottish aristocracy, valued among our community. Why do you obliterate his name?

We do indeed face many challenges in the country, as reflected by the various inputs that hon members made yesterday. We raised matters that went beyond the narrow confines of the matter we sought to address. I believe hon members sought to raise those questions within the context of the fundamental proposition in our Constitution, which I think is accepted by all, that South Africa belongs to all who live in it, united in their diversity. All of us accept that. The challenge is how to translate that into reality in the process of the transformation of our country. When we talk about building a nonracial society, it is a requirement in our Constitution and a matter about which all of us are agreed. What do we mean?

When you talk about affirmative action and say that we should introduce affirmative action and actually do so, part of the response is that, as a result of that, particularly Afrikaner men become an endangered species. You say affirmative action, in order to create a nonracial society, but some people would then respond to that action by saying that actually results in the marginalisation, disempowerment and exclusion of a section of our population. If indeed we agree that South Africa belongs to all who live in it, united in our diversity, how to we deal with that tension?

That understanding of a South Africa that belongs to all of its people, united in their diversity, requires that we deal with the matter raised by the school children of the equitable treatment of languages. That raises its own tensions, as all of us know. If the Venda-speaking people insist that Venda historically, even among the African languages, has not enjoyed the position and status that it should and that something needs to be done about that, as a result of this we then insist that one of the languages that should be used in terms of our legislation is Venda, that displaces another language. If you use two languages and you cannot afford to use five, it displaces another language. So, what do we do if, for example, Minister Mufamadi decides in the legislation on intergovernmental relations to use English and Venda, rather than English and Afrikaans? What do we do with the tension that arises as a result of that?

I have mentioned the matter of place names. Rhini had a place name before it became Grahamstown and if some people say we should return to the traditional name of this place and another says no, and that we should keep the current name that was born out of the system of colonialism, it raises tensions because we want an inclusive South Africa that belongs to all who live in it, united in their diversity. And yet these challenges arise.

I discussed with the Minister of Sport and Recreation what was happening to rugby a few days ago. He assured me that he has made no decision about what should happen to the leadership of rugby, because it’s not a ministerial decision but a decision of the sports organisations. But there’s an important issue arising with regard to that - and I’m sure all of us are interested in this – namely this franchise. Who should get this franchise in terms of the Super 14?

I’m currently reading a book about the history of cricket in South Africa. It’s a very interesting history written by André Odendaal, who says that there is a false image of the history of cricket in this country, which doesn’t recognise the fact that some your first cricketers in South Africa were black people in the Cape. It’s a similar story to the evolution of the development of rugby, but that discussion about this franchise fundamentally has to do with this question: What is it that we need to do in order to produce, to create, a nonracial South Africa?

It produces tensions and conflicts, and challenges the issue that we are indeed trying to build a South Africa that belongs to all who live in it, united in our diversity. Because if you say dissolve the Cats and let the Lions and the Bulls form one franchise, and give another franchise to the Eastern Cape, the Transkei and the Southern Cape, somebody has lost something. Somebody else has gained something. In the totality of this matter, has the country gained? Has it communicated the message that it belongs to all who live in it, united in our diversity? The tensions can’t be avoided.

We all say that we need a nonsexist South Africa. I see iNkosi Mangosuthu Buthelezi is here and he might correct me here, but some of our traditional leaders may very well say that succession is determined according to the male line in the family.

Prince M G BUTHELEZI: Kunjalo! [It is like that!]

The PRESIDENT OF THE REPUBLIC: Kunjalo? [Uhleko.] [Is it? [Laughter.]]

So that’s in the tradition; male succession, but we’ll say that no, we want to build a nonsexist society. Why shouldn’t women succeed? That will raise tensions, and yet we are saying that we want a South Africa that belongs to all who live in it, and therefore we don’t want exclusion of the traditional leaders from that society. We want their inclusion, but at the same time we are saying we want to build a nonsexist South Africa. Tensions arise. How do we resolve them?

I’ve had discussions and I’ve had people raise this matter with me about issues of race and gender. It’s an interesting challenge, with black women saying that in a number of instances the gender issue has indeed been addressed, and it gets addressed by putting in place, recruiting, appointing and so on, white women. So the gender issue is addressed, but the black women say the race issue is not addressed. We can’t object to white women being appointed, because the gender equality issue is important, but how do we balance these two?

I’m mentioning this to again illustrate the tensions that arise, some of which you can discuss within the context of the matters that were raised by the hon members yesterday, one of whom raised this bit of a conundrum that, in terms saying we need a democratic South Africa, we have one party that gets 70% of the votes. It’s a democratic outcome, but seen by some people as a threat to democracy. [Interjections.] How do you deal with that?

Perhaps we need to discuss the question of the role of the political minorities – I’m not talking of racial minorities – in determining national policy, because of this fear that a democratic majority might be a threat to democracy. Perhaps you could seek to address it by asking, in order to deal with the challenge of people who might feel marginalised because they are political minorities, excluded and therefore not part of this South Africa to which they belong, united in its diversity, isn’t there something we should discuss and do to increase their sense of participation in determining national policy?

It might relate to what the hon Holomisa said about an economic “Codesa” so that despite whatever majority the ANC has, with regard to fundamental matters like the direction of our country in economic terms, we bring in the political minorities as well to decide what should happen to the economy. It may be that we need to discuss things like that. As I’ve indicated, one of the girl-children says: “People must understand the importance of black economic empowerment.”

But one of the tensions that arises in the public discourse is that we’re a capitalist country with some very successful capitalists, whom we celebrate every day. But there’s an argument with regard to black economic empowerment, that it should not produce successful black capitalists. When it does, there’s something that is wrong about it. [Interjections.] The hon Mbulelo Goniwe raised this matter yesterday. The existing capitalists must remain and succeed as capitalists. The new ones who are being born … No, no, they shouldn’t be. There should be broad-based ownership.

One understands it because indeed we want broad-based development and a general attack on poverty and all that, but how do we deal with this tension that we defend and protect and work within a capitalist society, but are averse to the emergence of black capitalists? The hon Nefolovhodwe spoke about this and spoke about how few black people apart from sponsored travellers he sees on SA Airways, and he said he’s well sponsored by Parliament! I can give many examples of this.

You have the problem of access to land. This is part of the process of building a prosperous South Africa, which is an inherent part of the South Africa that belongs to all of you and all who live in it, united in their diversity. We say that therefore we must expand access to land. But the landless cannot own land until somebody else who owns land loses some of the land. It’s unavoidable. [Interjections.] State land, sure, but how much state land is there? [Interjections.] No, we shouldn’t … Let’s leave the propaganda about this matter. I’m talking about the bulk of the land in this country. You can’t deal with the question of equitable access to land without somebody who owns land losing that land. You can’t do it! [Applause.]

But we will all agree that yes, indeed we need to produce a nonracial South Africa. We need to expand the base of the economic actors, one of the elements of which is access to land. We’ll all agree. In practice, particular challenges arise.

I believe therefore that there’s a particular challenge that faces this House, namely to ask how this House answers the questions posed by these young people. If we’re talking about gender equality, beyond the good speeches that all of us in this House would make about it, when we come to the practical detail of effecting it, what is it that we need to do? You are the leaders of our people in this House, recognised by the nation as our leaders. What do our leaders say?

When we say we want to produce a nonracial South Africa in all of its elements, how do we sort out the tensions that must arise in the process of transformation towards creating a nonracial South Africa? How do we balance the losses and the gains?

I believe that, given our history, given our challenges, given our possibilities, the things that we are discussing, the things that the girl- children raised today are matters that in reality also preoccupy many other countries in the world. I think our particular fortune is that we have the possibility of actually making significant progress with regard to the solution of these challenges.

But together we must perhaps do what the hon Holomisa was suggesting, namely to put our heads together and answer the questions as to what is to be done. I do not believe we need a Codesa other than this “Codesa”, so let this “Codesa” discuss these matters. I have, in the 11 years of our democracy, never seen a 10-page pamphlet coming out of Parliament, saying these are the practical steps that the National Assembly says should be taking to create a nonracial South Africa. [Applause.] I’ve never seen it. And yet, these young girl-children here expect that these leaders who sit here will indeed answer these questions for them. Why don’t we do that?

I’d like to thank the Deputy President, the Minister in the Presidency, the director-general and our entire staff for their tireless efforts towards fulfilling the obligations to which we are committed. I’d also like to thank the Ministers and Deputy Ministers of other departments, Premiers, provincial and local governments for the co-operation that they’ve shown towards the Presidency, and I’m sure that working together we will be able to answer quite correctly these various questions. I thank the members for their attention. [Applause.]

Debate concluded.

The House adjourned at 14:46. ____

            ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

ANNOUNCEMENTS:

National Assembly:

1. Membership of Committees (1) The following members have been appointed to serve on the Ad Hoc Committee mentioned, viz:

     Appointment of Deputy Public Protector
   
     African National Congress:
                Hendrickse, Mr P A C (Alt)
                Mahlawe, Ms N M
                Makasi, Ms X C
                Meruti, Ms M V
                Mokoto, Ms N R
                Mgabadeli, Ms H C
                Mzondeki, Mr M J G
                September, Ms C C
                Sibanyoni, Mr J B
                Schneemann, Mr G D
                Tolo, Bishop L J
   
     Democratic Alliance:
                Camerer, Ms S M
                Delport, Dr J T
   
     Inkatha Freedom Party:
                Van der Merwe, Mr J H
   
     New National Party:
                Johnson, Ms C B
     African Christian Democratic Party:
                Swart, Mr S N
   
     United Christian Democratic Party:
                Pule, Mr B E
   
     Pan Africanist Congress of Azania:
                Likotsi, Mr M T
   

   (2) Ms E Ngaleka, has been elected as acting chairperson of the Portfolio Committee on Agriculture and Land Affairs with effect from 25 May 2005.

   (3) Mr J B Sibanyoni, has been elected as chairperson of the Ad Hoc Committee on Appointment of Deputy Public Protector with effect from 26 May 2005.

TABLINGS:

National Assembly and National Council of Provinces:

1. The Minister for Justice and Constitutional Development

   (a) Report on the provisional suspension from office of senior magistrate Mr. S E Tebe.

   (b) Report on the provisional suspension from office of magistrate Mr. L D Monageng.

COMMITTEE REPORTS: National Assembly:

1. Report of the Portfolio Committee on Water Affairs and Forestry on Budget Vote 34, dated 13 April 2005:

   The budget review of the Department of Water Affairs and Forestry (DWAF) was conducted on the 6th and 7th of April 2005. The Portfolio Committee on Water Affairs and Forestry, having considered Budget Vote 34: Water Affairs and Forestry, reports as follows:

   A. Introduction

   The Committee received presentations from various stakeholders in the sector, which includes:

   (a) The Department of Water Affairs and Forestry (DWAF) (b) The South African Local Government Association (SALGA) (c) The Overberg Water Board (d) The Timberwatch Coalition (e) The Minister of Water Affairs and Forestry (f) Geosphere (g) The National Movement of Rural Women (h) The Mvula Trust (i) The South African Water Caucus

   A list of representatives from the different organizations is annexed. The report does not follow the order in which organizations or individuals presented during the hearings, but has been consolidated to avoid incoherence.

   1. Political input by the Minister of Water Affairs and Forestry, Ms B.P. Sonjica

   The Minister of Water Affairs and Forestry, Ms B P Sonjica addressed the Committee and Forestry, and raised the following key issues:

   (a) Water Affairs

   The Department of Water Affairs and Forestry has initiated a process of substantive change and restructuring currently in process and that is reflected in the budget vote. The process of transferring water services to local authorities has gathered momentum in that 20 transfer agreements have been signed.

   An audit of all water services schemes to be transferred has been completed and a total of 512 schemes are to be transferred. She mentioned that some local authorities were not ready to receive these functions, as they still needed to develop/enhance their capacity. The local authorities that require intervention are in the process of being identified and assistance will be provided to them. This assistance will either be in the form of technical or financial capacity.

   The Minister emphasized that it is important that the commitment with respect to enhancing democracy at local government level is delivered. Within this context, the transfer of water services to local authorities is important. The Constitution also mandates the transfer of these services to local government. The necessary guidance and leadership for local government will be provided to ensure the success of this process.

   Expenditure relating to water resource management is accorded priority status. The primary purpose of this process is to ensure that the country’s water resources are protected, used, developed, conserved and managed in a sustainable and equitable manner for the benefit of all people. Because the country is going through a period of climatic change, water resource management needs to be given serious priority. A strategy for this has been developed and the National Water Act also provides guidelines in this regard. In National Water Week, 2 strategies were launched. One of these is the National Water Resource Strategy.

   The implementation of this strategy will be prioritised, including the institutional reform of water service provision arrangements. The National Water Resource Strategy provides the national framework for managing water resources and for the establishment of catchment management agencies. These agencies are intended to bring about equity in the allocation of water resources. These agencies will perform water resources management functions performed by DWAF regional offices.

   Expenditure in relation to water resource management has increased rapidly in the last few years. This is largely because the Operations of Water Resources sub-programme has more than doubled. Provision has also been made for continuing the investment in water infrastructure. Three dams are being built in Limpopo. The raising of the Flag Boshielo Dam in Limpopo is expected to be completed in 2006. Advance works for the Berg River water project have begun and the Olifants River water resources development project has been approved. Water summits are being held in all provinces to consult with the public on matters in the public interest.

   The Minister emphasized that policies that are friendly to the poor must not be compromised in the restructuring process. The Free Basic Water and Sanitation policy is a step towards ensuring universal access to basic water and sanitation. The Department’s role in this regard will include ensuring that water and sanitation projects and agencies that manage these services are sustainable and can maintain and expand access.

   There is a need to focus on the infrastructure-related projects to create the capacity to deal with reducing the backlog in implementing poor-friendly policies. Addressing this backlog is central to the eradication of poverty. Direct responsibility for infrastructure has shifted away form DWAF and funding will in future come from the municipal infrastructure grant, the local government equitable share and the capacity-building grant.

   (b) Forestry

   The Minister indicated that there is a need for the restructuring process in relation to forestry conservation to be accelerated. Employees are frustrated because this process is moving very slowly. Timeframes must be determined for the completion of this process. The Department’s main role in this regard will be to provide the national policy and regulatory framework within which appropriate institutions will manage forest resources with sustainability as a critical priority. The Minister noted that efforts to monitor the implementation of forestry-related policies would be increased.

   Priority has been accorded to the consideration of Broad Based Black Economic Empowerment in forestry conservation and in their commercial and community uses. In this way, the contribution of forest resources to economic development and poverty eradication is ensured. A national forestry indaba will be held on 14 April 2005 to further explore the contribution to Broad Based Black Economic Empowerment.

   With regard to the transfer of indigenous forests, the transfer of forests in the Eastern Cape has been delayed. The management of several State forests has been transferred to external institutions such as SAFCOL.

   (c) General

   In relation to expenditure on administration, it is expected that expenditure pertaining to administrative costs may decrease once the restructuring process is completed. Expenditure in this regard has increased steadily over the course of the past four years. Much of the increase in expenditure is to cover the costs of transferring water service operations to local government.

   Efforts have been made by the Department to ensure compliance with the PFMA and to achieve a clean audit report. This is because qualified reports have been received in the past. To resolve this issue, the Minister has met with various Directorates to discuss the issues. It subsequently emerged that the Finance Branch is grossly under- capacitated, both in relation to being under-staffed and in relation to a lack of capacity among the staff employed. A need has been identified to upgrade posts and 3 Director posts have been advertised.

   The Minister noted that the African Minister Council would meet to discuss matters pertaining to the access to finance for attaining the Millennium Development Goals (MDGs) for countries on the continent. Finance is particularly required for the poorer countries on the continent.

   The Minister concluded her address by emphasizing the need for the Department to contribute to the development of the first economy and the integration of the second economy into the first economy to ensure that the most important beneficiaries of the Department are the poorest of the poor.

   (d) Discussions

   Members of the Committee raised the following issues during the discussion:

• What is meant by the impact of serious climatic change over the course of a medium to long-term period? What would the impact of such change entail? • In relation to the financial resources that will be transferred to local authorities, will municipalities be in a position to manage these resources adequately? It is critical that these resources are used to assist the poorest of the poor. How will this be monitored?

• A question was posed as to whether local authorities were sufficiently involved in the National Water Week Campaign.

• With regard to the building of technical and financial capacity among local authorities, it was stated that SALGA had indicated that the budgetary allocations for the 2005/2006 period are insufficient to maintain the desired level of support to local authorities.

• The Committee on Trade and Industry is currently considering the Co- Operatives Bill [B4-2005]. What has the Department of Water Affairs and Forestry done to ensure that there are synergies between the Trade and Industry and Water Affairs Departments?

• A question was posed as to whether the Department has considered the issue of aquaculture.

The Minister responded with the following key points:

• With regard to the changes in the climate, the industrial world has increasingly been producing more pollution, which has resulted in a blanket around the earth causing it to warm. This impacts upon climate patterns. In South Africa, it is forecast that this will result in increased dry conditions on the west side of the country, which means in turn that this will result in hotter conditions and that dams here will yield less water. Because global warming affects us at an international level any one country in isolation cannot change this situation. It must be addressed at an international level. South Africa as a country could, however, prepare for the impacts of global warming. Africa as a continent also needs to consider the impact of climate changes, given that poor countries are likely to suffer most as a consequence. Discussions in this regard are necessary.

• With regard to aquaculture, the Minister pointed out that South Africa does not have a fish farming industry to the same extent as many other countries in the world. This industry is more pronounced in the other parts of the world, which depend less on fishing from trawlers and more on fish farming. One of the main controversies pertaining to fish farming relates to the pollution that it causes.

• The Minister raised the issue that there has not been much engagement as yet on the Co-operatives Bill. There is a need to engage on the legal framework for agricultural co-operatives.

• The Minister mentioned that there are currently 139 local authorities that have been identified as requiring assistance in terms of developing their technical and financial capacity. A project has been developed to deal with and monitor project consolidate.

• The Minister stated that South Africa is classified as a water-scarce country. In periods of good rainfall, the sum total of rainfall is estimated to average 454mm a year. In comparison to the average in most other countries, which is estimated to be at about 860mm, South Africa is clearly at a disadvantage. Within the context of an expanding population, this problem becomes critical. It is therefore essential that a culture of using water efficiently is inculcated. Public campaigns in this regard are therefore designed to communicate this to the public in general. The Minister raised the point that much work has been done in this regard, but there is a need to ensure that these campaigns reach communities.

1. Presentations by Government and Organizations

3.1 The Department of Water Affairs and Forestry (DWAF)

The Director-General of DWAF, Mr. Mike Muller, briefed the Committee on trends in the Department’s Budget.

The total budget of the Department comprises 2 parts, i.e. the Exchequer Account and the Trading Account. The Exchequer account refers to the account voted in Parliament, while the Trading Account refers to those accounts that are intended to generate revenue, such as the income from water users. If the Trading Account generates insufficient revenue, it is augmented from the exchequer allocations. The generated revenue and the augmentation therefore make up the total Trading budget.

In the 2005/06 financial year, the Exchequer Account constitutes R2 069 993 million (34%) of the total departmental expenditure, whilst expenditure on the Trading Account amounts to R4 103 397 million (66%). Total DWAF expenditure therefore amounts to R5 342 million. Expenditure in the Exchequer Account remains fairly stable between 2001/02 to 2007/08, whilst expenditure in the Trading Account increases rapidly during the same period.

3.1.1 Trading Account

The Department’s Estimates of National Expenditure (ENE) distinguishes between 2 different trading accounts, i.e. a water trading account and an equipment trading account.

The Water Trading Account has 2 main sources of funding, i.e. revenue generated by a water management charge levied on all registered water users, and revenue collected through the sale of water in bulk to various institutions and individuals. The shortfall is funded through allocations from the National Revenue Fund in the normal budget process. Expenditure under the Water Trading Account is divided into 4 components. Each component is designed to provide a channel for funding a specific activity in the water sector. These components are:

1. Integrated water resource management - this component aims to develop catchment management plans and to implement these through the effective integration and rollout of water quality standards, water use and water conservation measures in all catchments in the country.

2. Integrated systems - where locally available water resources in a particular area cannot meet the demand, water is transferred from water- rich areas. This component reflects the management, operation and maintenance of these schemes as integrated systems, as well as the revenue collected from water users.

3. Bulk water supply - expenditure in this component covers operations and maintenance, as well as management costs. Revenue is earned through the sale of water, mostly in bulk.

4. Water services - in 1994, a number of water and sanitation schemes were transferred from the previous homelands to DWAF. More than 7million people are currently served through these schemes. The operational, management and maintenance costs of these schemes are reflected in this component.

The Equipment Trading Account provides for equipment for the construction and maintenance of government water schemes. This Trading Account has 3 main sources of income, i.e. income from leases; revenue from the sale of plant and equipment; and the collection of maintenance fees.

3.1.2 Exchequer Account The Department has organised the expenditure of its Exchequer Account into 4 Programmes, i.e:

1. Programme 1: Administration - This Programme provides for the management of the Department, including policy formulation; centralised administrative, legal and office support services; departmental personnel management and financial administration; Information technology (IT); determining working methods and procedure and exercising control through head office and regional offices. Expenditure under this Programme experiences a slight decrease of 3% in the 2005/06 financial year, but is expected to increase steadily over the medium term. The increase in expenditure will mainly be to cover the costs of transferring water service operations to local government. These include the personnel costs associated with the transfer and the operational costs. The increases are also a result of the change in the Department’s focus from operations to policy development and regulation, and the restructuring costs attached to such a change in focus.

2. Programme 2: Water Resource Management - This Programme ensures that water resources are used and managed sustainably and equitably. It is the priority programme of the Department, as it consumes the bulk (43%) of the budget. Expenditure under this Programme decreases from R1.6 billion in the 2004/05 financial year to R1.5 billion in 2005/06. Expenditure is expected to increase to R2.1 billion in 2007/08. Future increases in expenditure will finance the operations and maintenance of infrastructure, and the Working for Water Programme. The Sustainable Supply sub-programme increases rapidly between 2005/06 and 2007/08, from R344.4 million to R624.1 million. This includes the investment of R500 million in dams and related infrastructure.

3. Programme 3: Water Services - This Programme ensures access to effective, sustainable and affordable water and sanitation services through policy development and planning and regulating and monitoring the sector. This includes institutional and implementation support to local government. The Programme experiences a steady decrease in expenditure and is expected to fall to R1.3 billion in 2006/07, as the expenditure on new water and sanitation connections are transferred to the municipal infrastructure grant. The large increase experienced by this Programe in the 2003/04 financial year was mainly due to drought relief allocations, to help reduce the backlogs in the provision of water and sanitation services and to support the process of transferring water services to local authorities.

4. Programme 4: Forestry – This Programme promotes the conservation of plantation and indigenous forests and their commercial and community uses, to achieve optimal social and economic benefits and to promote rural development through policy development, regulation, facilitation, as well as monitoring and evaluation. Expenditure under this Programme is heavily influenced by expenditure on the commercial and indigenous forests that are under the Department’s control. The aim in the long term is to transfer this responsibility out of the Department. However, the process is taking longer than expected, as it is difficult to hand commercial forests over in a sustainable manner. The trends in expenditure on this Programme are not consistent, although it is expected to rise steadily over the medium term.

The Department attributes fluctuations in expenditure to allocations to restructuring packages for forests transferred to the South African Forestry Company Limited in the 2001/02 financial year, and increased funding to salvage fire-damaged timber, as well as to cover the operating costs of the Mpumalanga forests in the 2003/04 and 2004/05 financial years.

3.1.3 Discussions

Questions that were raised by Members of the Committee during the discussion following the presentation include:

• From which Programme in the budget will the funds to transfer water schemes to local government be allocated? The Department indicated that these funds would be allocated from Programme 3: Water Services. • The Working for Water programme was started with foreign funding, and the question was raised whether the Department still receives foreign funding and if this forms part of the Vote amount. The Department indicated that the foreign funding is separate from the Vote amount. However, it does not envisage any increase in foreign funding and the programme is essentially funded through domestic sources, such as the grant from the poverty relief fund. • To what extent does the Department’s budget conform to the national priorities outlined in the State of the Nation Address and what are the difficulties in transforming, i.e. will the Department be able to meet its budget. The Department indicated that there is a degree of consistency between the State of the Nation Address and its budget. For example, it pointed out 3 specific areas in which the budget conforms, i.e. providing basic services; the 2nd Economy and rural development; and creating a framework for economic growth in the 1st Economy. • Why is the Strategic Plan of the Department and the budget not aligned? The Strategic Plan has 14 Programmes, whilst the Department’s expenditure is divided into only 4 programmes.

According to the Department this is a difficult process, as the Strategic Plan has to conform to the format requirements of the Department of Public Services, whilst the budget has to conform to the format requirements set by the National Treasury. However, the activities in the Strategic Plan are linked to the different Programmes of the budget. Furthermore, there is a matrix system of reporting between the Head Office and Regional Offices, which makes the linkage between the Strategic Plan and the budget possible.

• The Department appears to have shifted targets that have not been met. The Department conceded the fact that targets set by them are optimistic, especially if the achievement of such targets is dependent on consultation with other role-players. In its opinion, the Department can only be held responsible where it has direct responsibility for an activity, but not where it has to achieve goals through other agencies, such as municipalities.

• When will the restructuring process end? The Department is trying to adopt a responsible approach to the restructuring process that takes into account all role-players. The restructuring process is budgeted for in the Administration Pogramme and other line functions. This will take some time, for example, Water Services will only be transferred by April 2006.

3.2 The Overberg Water Board

Mr. D. Abrahams, Chairperson of the Water Board, and Executive Mayor of Theewaterskloof Municipality, briefed the Committee on the work of the Board as follows:

Overberg Water started out as a rural scheme, which was initiated by the commercial farming community in Overberg. Initially, the scheme was State controlled, as it was subsidised by Government. This meant that no reserves were built up and tariffs were kept low. During the early 1990s, the Scheme was transformed into the Overberg Water Board, and the subsidy from Government was terminated. Despite the fact that the Board was at a disadvantage because of a lack of reserves in the reserve fund, as well as low tariffs, it was expected to be economically viable and sustainable. In terms of its equity profile, the Board consists of 7 members, of whom 2 are white males, and 5 are previously disadvantaged persons (of whom only 1 is a female). Also, there is only 1 woman in the top management structure of 6 people and women constitute only a quarter (25%) of the entire staff establishment of 75 employees. The Board has an equity plan in place that is aimed at improving these employment figures.

The Overberg Water Scheme is expensive by nature, as relatively small amounts of water are distributed over long distances, using expensive infrastructure. The area of service is roughly ±200 km from Botrivier in the West to Riversdal in the East, and ± 60km from the Langeberg to the sea. Fortunately, the Scheme has a good cost recovery rate of almost 100%. However, the challenge is to address the backlog in its reserve fund caused by the previous regime.

Overberg Water distributes 60% of its water to rural areas (i.e. farmers) and 40% to Towns. Despite its financial position, the Scheme has managed to keep its annual increase in rural tariffs fairly low, at 4.8% over the last 10 years. The Scheme believes that its tariff structure is unique, as it allows clients to be allocated water on request. The aim is to encourage farmers to keep their requests for water allocations as low as possible, and to use their allocations as efficiently as possible. As the nature of Overberg Water differs substantially from other Water Boards and its tariff structure is unique, it is difficult to ascertain which comes cheapest. However, the Scheme’s tariffs do compare favourably with other Water Boards.

As local government in the Overberg area battles with a lack of capacity, Overberg Water considers itself to be in a good position to assist with the provision of water services in the region. For example, the Scheme could provide the quota of free basic water (6kiloletres) free to rural areas. However, this is dependent on instruction from municipalities and an agreement has to be entered into with municipalities. Negotiations in this regard are ongoing with municipalities. Furthermore, the Scheme believes that it can play a leading role in the setup of institutional mechanisms for the provision of water services. However, a major obstacle that has to be overcome relates to conservatism in the region. The Scheme plans to host a summit (which they agreed after inquiry by the Committee should include the whole province), to inform stakeholders about where Overberg is headed in terms of the provision of water services.

Overberg Water also performs well in the Working for Water programme. The Scheme is of the opinion that an increased Working for Water Programme could possibly contribute towards curbing the problem of water shortage experienced in the Western Cape. To this end, they propose that 1000 hectares in the Sonderend River valley, from the TWK dam to the confluence with the Breede River be cleared (±120 km), at an estimated cost of R 4 million. The total amount of water, i.e. ±3,000 000 m3, that Overberg Water subtracts from the river annually, can be saved. This water will then be available for the metropole. It will cost approximately R34 million to clear the whole valley. Overberg Water can also assist DWAF to manage the river as well as the subtraction from the river and other rivers. This will not only contribute to a further saving of water, but will also create jobs for an estimated 176 people.

3.2.1 Discussions

Questions that were raised by Members of the Committee during the discussion following the presentation include:

• Overberg Water claimed that it would cost R4 million to clean up 1000 hectares of land in an effort to save water. Has a cost estimation been done in this regard? The figure provided is rough, based on accurate research and calculations by DWAF. • Does the Board provide water services in consultation with anyone? Yes, services are provided in consultation with municipalities as the water authority, as there is a lot of capital that has to be invested in terms of infrastructure. In fact, the Board is in the process of proposing models to municipalities of how water services can be provided. • How will the Board address gender imbalances in its equity profile? The term of Office of the current Board expires on 30 September 2005. It is hoped that at top management level, this imbalance will be addressed with the appointment of the new Board. However, many of the posts in the establishment are of a technical nature, and there is only a small pool of women to draw from. • How affordable are the Board’s tariffs. The Board believes that its tariffs are favourable. This is evident in the low default rate of approximately 4%. • What steps have been taken against people who extract water illegally from dams? The Board noted that it is difficult to control unauthorised water extraction, as there is currently no system in place to do this. However, this can be done at some cost. • The Board indicated that the Working for Water Project creates jobs and alleviates poverty. How many people are currently employed in the project, disaggregated by categories such as race and gender? The Board did not have the data available, but indicated that it could provide the Committee with the information at a later stage.

3.3 The South African Local Government Association (SALGA)

The objective of SALGA is to assist municipalities in delivering services in an equitable, affordable and sustainable manner. The Organization recognizes that not all people are benefiting from government policies as a result of local government’s poor delivery track record, and acknowledges that many municipalities need to improve the efficiency of their water and sanitation services.

Key challenges faced by SALGA include:

• The delivery of Free Basic Water and Sanitation is a problem for people who do not have access to piped water. • With the restructuring process, it is important that DWAF assets are transferred in a sustainable manner. • It is difficult to eradicate the sanitation backlog in the absence of a comprehensive policy. • The impact of the restructuring of water services providers on local government. • In general, SALGA supports the Budget of DWAF for the 2005/06 financial year. Its presentation focused on 5 key areas in the budget, i.e.:

1. Sanitation - SALGA views the delivery of free basic sanitation as one of its key priorities. It acknowledges the fact that the White Paper on Basic Household Sanitation should be amended to align it with the new Water Services Strategic Framework. Furthermore, SALGA considers it necessary to revisit the sanitation policy and subsidy levels if the service delivery targets in the Strategic Framework document are to be met.

2. Free Basic Water - Local Government is making continuous progress with the provision of free basic water. Almost all municipalities now provide free basic water to their residents who have access to services. However, some of the challenges that confront municipalities in the provision of free basic water are:

   1. The development and implementation of indigent policies. There is a need to define that constitutes indigent or poor people in order to determine who should be getting the subsidized water.

   2. There is a need to extend the delivery of free basic water to those people who are not currently served and poor households, by extending water networks or constructing local water schemes. This requires funds and skills, but municipalities should be empowered to extend this service in a sustainable manner.

   3. Large-scale meter installation is required, which is an expensive exercise.

   4. Billing systems, debt collection and municipal arrears remain problematic.

3. Transfers - The Joint Transfer policy indicates that all schemes are to be transferred by June 2005. Although SALGA is supportive of the transfer process, it has consistently stated that the timeframes may not be met, as this is a process which requires co-operation between different role- players, including local government, communities, politicians, etc. SALGA is of the opinion that the transfer of schemes must be done in the proper manner, and that another year would constitute a reasonable timeframe for the completion of this process.

4. Catchment’s Management Agencies - Seven proposals for the establishment of catchment’s management agencies have been under consideration for some time and debates between SALGA and other agents with regard to the cost and where this will be sourced from has been ongoing. In terms of the Department’s targets, 6 catchment management agencies were to be established by March 2005.

5. Restructuring of water services providers in South Africa – the benefits of the restructuring process, as highlighted by SALGA, are that it provides an opportunity to:

   1. Create viable water services providers and use scarce human resources in the sector more effectively.

   2. Create water services providers that can provide competitive services to communities in South Africa and beyond its borders.

   3. Create efficient institutions that result in less duplication of functions and lower costs.

However, the restructuring process is an expensive exercise that needs to be adequately funded and resourced. It is also important to ensure that there is a regulatory framework within which the restructuring process occurs, as the absence of such a framework will increase the costs and impact negatively on the efficiency of services provided. SALGA is of the opinion that the budget allocations in the 2005/06 budgets are insufficient to maintain the desired level of support to municipalities.

1. Discussions

Questions that were raised by Members of the Committee during the discussion following the presentation include:

• Are there any mechanisms in place for the maintenance of municipal infrastructure? A benchmarking project is underway to establish indicators for measuring loss. Unfortunately, local government inherited the legacy of poor maintenance from the past, and it requires a lot of funds and professional skills upfront to get the process started before getting any returns.

• SALGA reported that one of the key challenges is to eradicate the backlog in the provision of sanitation services because of a lack of national policy in this regard. Do municipalities not create individual policies in this regard or do they have to refer to a national policy? SALGA indicated that a common framework is required in this regard. A lot of work has been done towards this, but the process needs to be concluded. For example, there is no agreement on what constitutes basic sanitation.

• Another challenge reported by SALGA is that the concept of indigenous/poor people has to be defined, in order to determine who should benefit from the Free Basic Water programme. Members wanted to know who constitutes the poor. SALGA indicated that this couldn’t be measured, as there are no indicators in this regard. Steps should be taken to ensure that directing resources more accurately at them as the intended beneficiaries of the programme targeting the poor.

• What is SALGA doing to address the lack of capacity in municipalities? Yes, SALGA does provide assistance to municipalities where there is a lack of capacity.

3.4 The Timberwatch Coalition

Timberwatch was founded in 1995 by a group of concerned members of civil society. It has since developed a volunteer network, working together with a coalition of environmental non-governmental organisations (NGOs). The mission of Timberwatch is to promote and coordinate action by members, organisations and the public, and to keep such bodies adequately informed, in order to ensure that timber plantations are not established on land where food, other crops and livestock could be farmed to the greater benefit of both local communities, and South Africa as a whole. The organisation is privately funded and does not receive any funding from Government.

The organisation submits that natural resources such as forests, grasslands, wetlands, clean air, water and food should be valued in order to set off any loss of amenity against the claimed economic benefits from plantations. This process is known as resource economics.

The impact of timber plantations is varied. On the social front, timber plantations could, among other impacts, cause health problems from exposure to toxic agri-chemicals and in-field injuries; disrupt family and community life as a result of the contract labour system; and spread sexually transmitted diseases as a result of both the contract labour system and the trucking of timber. Implications for water resources include that large- scale timber plantations negatively affect surface and groundwater resources; and timber plantations (especially eucalyptus plantations) are known to dry up local streams and wetlands. Other negative impacts include damage to public roads; pollution of streams and rivers; air pollution and water pollution.

The presentation highlighted the plight of the Sabokwe People who were removed from their ancestral land north of Richard’s Bay (KwaZulu Natal) in the 1970’s to make way for pine plantations. After 1994 the Sabokwe people reoccupied a small portion of their land. However, they are now surrounded by alien timber plantations, and do not have sufficient land to keep their livestock. The people of Sabokwe feel that they have very little hope of regaining their identity and self-respect as a community.

1. Discussion

Questions that were raised by Members of the Committee during the discussion following the presentation include:

• Is there any consultation with traditional leaders when plantations are created? The Coalition indicated that traditional leaders are represented in some forums dealing with these issues, but that their representation could be increased.

• What is the Coalition doing for the people of Sabokwe as an NGO? The Coalition has to some extent been involved in trying to assist the Sabokwe people. It identified youth development as important in the community, and has run a workshop with them. It is currently also working on a proposal for developing a project in the community, though with limited resources. A proposal for funding of such a project has to be submitted.

• Is there any partnership between the Coalition and Government? The Coalition desires a working relationship with DWAF, as it believes it is in a good position to point out information to the Department. However, the challenge in the past has been to get an appropriate response from the Department to efforts made by the Coalition. The Coalition requires the co-operation of the Department to exchange ideas and information and possibly share resources.

3.5 National Movement of Rural Women

3.5.1 Water Affairs In 2005 there are still people who do not have access to clean water. Consequently, people source drinking water from rivers where there are crocodiles and from places where animals drink water and this leads to acquired waterborne diseases such as cholera, malaria, and diarrhea. The needs of women are not catered for when discussing water issues and women feel marginalized. Women are not consulted when there are discussions on where to place communal taps, and when the taps will be connected to their areas. Many women in rural areas are not catered for, nor are they consulted when most of the water policies are being discussed, whereas the President in his State of the Nation Address said, “ We must achieve a new and democratic State which truly serves the needs of the people”. This seems not to be the case when considering the marginalization of rural women. Rural women are the ones who use water mostly, but the decisions on where to erect taps are taken by men.

In the Mpumalanga areas of the Ntsikazi and Nkomazi regions there are illegal connections of taps outside the borders of those regions. This is the result of lack of running water for these rural people. Moreover, people from Nelspruit come to Ntsikazi with trucks to sell water, because there is a lack of infrastructure to provide clean water to the people.

In areas of Ga-Mashashane in the Limpopo province, women in this rural village travel for long distances to collect drinking water. The Government must provide for a budget to cater for water needs in the rural areas. The situation is worse for children between 6 weeks and 6 years, 14% of whom are dying because of waterborne related diseases like cholera, diarrhea, and malaria found in rural provinces such as Northern Natal, Free State, Northern Cape, Mpumalanga, and North West. It seems that the Government has not put much emphasis on gender and children’s issues in the Water Affairs and Forestry’s Budget Vote.

There is a need for water to be used for sanitary purposes. Government must engage with the communities to allow for a situation where water will be supplied for sanitation purposes.

The government must also negotiate with communities about the privatisation of water services. The Movement is against the privatisation of water services.

3.5.2 Forestry

The Government has abandoned Arbor Day, which was commemorated on a day in a week dedicated to planting trees. There is a need to revive the custom of having a specific day set aside for planting trees. There is also a need for grazing land in the rural areas, since there is high demand for green trees. There are people in the rural areas that sell firewood for profit from trees that are not theirs, but belong to nature.

1. Discussions

Members raised the following key general question during the discussion that followed the presentation:

• What is the relationship between the National Movement for Rural Women (NMRW) and the municipalities? They also wanted to know whether is there any training is provided to women.

3.6 The Mvula Trust

3.6.1 Water Affairs

There is a need for Government to provide financial assistance to small- scale farmers. The government has allocated R5000 per household to be rolled out to five thousand households. This allocation is covered in this year’s budget, which was increased from R27 million to R37 731 million.

According to the Trust there is a need to redefine what is meant by water supply and sanitation. The Water Services Act provides for water supply and sanitation and potable water.

The Government must commit itself to 6 000 kilolitres per month per household of Free Basic Water. Moreover, the Government should devise the best way for the Municipal Infrastructure Grant (MIG) to be spent. There is a need to develop water policy synergies within the Department of Water Affairs and Forestry directorates for water for domestic and productive use.

There is a also a need for engagement between DWAF, the Department of Agriculture, the Department of Provincial and Local Government and the SALGA on the application of the MIG funding to strengthen this important initiative to provide sustainable water for multiple use to vulnerable households.

3.7 The South African Water Caucus

3.7.1 Water Affairs

The South African Water Caucus (SAWC) is a national organization, which represents civil society organizations in the area of water. The organization is concerned that there are 1.5 million people who are currently not serviced. There is a backlog that faces the Government. The organization has questions that relate to the budget on which it is not clear, as to why their budget has dropped from R236 209,00 to R157 364,00 for this current year.

There is also a need for the budget to cater for civil society organizations to enable them to participate and make input into the vote and enable them to attend public hearings. However, it is appreciated that the budget for stakeholder empowerment has increased substantially.

The Budget vote does not provide for the empowerment of women.

The Government and other institutions have co-modified water. The Government should therefore attempt to increase Free Basic Water to poor households.

The SAWC is concerned that the consumers are charged higher rates than bulk agricultural users. For this reason, it is suggested that the tariff structure should be revised.

The SAWC is also concerned that the Department spends much money on consultants and not on service delivery.

1. Discussion

The following were key general questions and comments that were raised by Members of the Committee during the discussion following the presentation:

• The Members raised the concern that Mvula Trust has not made follow-ups after donating funding to communities for water connection to ascertain whether the money was used appropriately for the intended purpose. This arises out of the fact that there are communities that leave pipes lying around after they have put pipelines underground for transporting water.

• The Members of the Committee also wanted to know whether Mvula Trust has alerted communities that water harvesting was temporary and whether they engaged with the communities where there are rivers and streams, such as KwaZulu Natal, to develop catchment areas.

• Are there training programmes that the Women’s Movement is providing to women? • The Members wanted to ascertain whether the R27 million is money that is projected by the Trust or whether it is a Departmental budget allocation.

• Members also commented that the input by SAWC was more of a list of questions and comments about the strategic plan than the Budget vote.

• Lastly, Members wanted to ascertain whether the Trust has applied for funds as stipends to people who work on the water projects responsible for putting the pipelines in the different communities.

The following were general answers and comments to the above questions:

• It was explained that there is a relationship between the NMRW and the
  different local municipalities. The Movement is also part of the local
  municipalities’ programmes.

• With regard to training and skills development, women are being
  trained on different issues and the Movement works with the Women
  Development Forum. There is a grant for the Movement dedicated to
  training. The local clinics also provide training to women on boiling
  water to kill germs and to advise women on how to avoid acquiring
  waterborne diseases such as cholera.

• The Mvula Trust no longer receives funding as it used to in the past,
  due to new fundraising legislation, and it now operates like a
  consultant for municipalities. The Trust does not participate in the
  catchment areas, but communities and municipalities do. The reason for
  not participating is that the Trust does not have the locus standi in
  respect of water issues in the different communities. The R27 million
  is a correct figure, which is contained in the Budget vote.

3.8 The Contact Trust

Contact Trust addressed the Committee on its work, particularly in relation to opposing timber plantations and their “Value Grasslands” project. The Chairperson raised the fact that the presentation did not address the budget vote. Notwithstanding the presentation would be useful to the Committee. The Chairperson therefore decided that no discussion would be entertained in this regard, but requested that Contact Trust be invited to do a full presentation at another meeting in future. The work of Contact Trust will then be dealt with separately from the budget vote.

1. Response by the Department of Water Affairs and Forestry to the inputs

4.1 Essentially, water is governed by the Constitution of the Republic of South Africa.

4.2 The Government is restructuring entities that were established and operated beyond South Africa’s borders. During this process, municipalities would have to look for services that they can source from outside the government and itself.

4.3 The Water Services Act provides for authorities to come together and form a Water Services entity like the Umngeni Water in KwaZulu- Natal. The National Treasury will increase funding for the municipality as the Department lowers its contribution to water services to municipalities.

4.4 The definition of Free Basic Sanitation should be revamped, but not in the manner suggested by Mvula Trust, because currently the definition provides for safe, reliable, private, easy to keep, clean, hygienic and easily removable of human waste. Thus it is broad enough, but it may need further revamping.

4.5 There will be four catchment areas that will be established and R12 million has been put aside for Catchment Management Services. The Department acknowledges that not everybody has access to clean water and it recognises what women are doing in the area of water access.

4.6 The Government will work with Water Service providers and municipalities on Water Service Development Plans (WSDPs).

4.7 The Government is also concerned about the illegal connection of water and steps will be taken regarding these illegal acts.

4.8 Arbor Week has not been scrapped. It is still being catered for in the Department’s calendar and will take place in the first week of September 2005.

4.9 The debate on privatisation of water services is not closed and the Department engages with stakeholders, including the South African Municipal Workers Union, Anti-Privatisation Forum, and other stakeholders.

4.10 There is a need for legislation that deals with the supply of water to communal taps and the catchment areas. The Government has allocated 72% of the Municipal Infrastructure Grant (MIG) to water and sanitation.

4.11 There has been spending on consultants and the Department will try to build an in-house capacity.

4.12 The Government is trying its best to develop gender sensitive policies at all levels, and all government policies are gender sensitive.

4.13 The Department will ensure that Regional offices communicate with the different civil society movements to invite them to engage with the Department on Water Affairs and Forestry matters.

4.14 There are laws that govern forestry and veldfires. There are also Forestry Development Plans, which deal with forestation and other matters connected therewith and the Minister is still looking at these issues.

4.15 The Ministry is also looking at the government’s Black Economic Empowerment (BEE) policy in forestry through the planned Izimbizos. An assessment will also be made on Sappi and Mondi’s BEE. This will, among other things, look at how the Previously Disadvantaged benefit from forestry. In the forestry Indaba, there will be a discussion and decision on how to use forestry, herbs to benefit the poor and the use of forestry by the traditional doctors.

Appendix A

Names of Presenters

Department of Water Affairs and Forestry Mr M. Miller (Director General) Ms N. Mohoboko Mr L. Mufamadi Mr P. Botha Mr J. Sindane

Overberg Water Board Mr D. Abrahams (Executive Mayor) Mr D. Potgieter Mr. A. Behardian

Timberwatch Coalition Mr. W Mene

Minister of Water Affairs and Forestry Hon Ms B.P. Sonjica

Geosphere (Contact Trust) Mr P. Owen Mr G. Siloale

National Movement of Rural Women Ms P. Sithole

Mvula Trust Mr P. Davids

South African Water Caucus Ms H. Deedat

South African Local Government Association Mr Neil McCloud

Executive Summary: Key Issues Emanating From the Public Hearings Of the Department of Water Affairs and Forestry Budget Vote

1. Introductory Overview

The key distinguishing feature of the budget vote of the Department of Water Affairs and Forestry is that the budget is divided in two parts, namely; the Exchequer Account and the Trading Account. The Exchequer account refers to the account voted in Parliament, while the Trading Account refers to those accounts that are intended to generate revenue, such as the income from water users. In each financial year the exchequer account and trading account, fused together, make a composite whole of the budget vote.

In the 2005/06 financial year, the Exchequer Account constitutes R2 069 993 million (34%) of the total Departmental expenditure, whilst expenditure on the Trading Account amounts to R4 103 397 million (66%). The Department has organised the expenditure of its Exchequer Account into 4 Programmes, i.e: Administration, Water Resource Management, and Water Services Forestry

Programme 1 Administration 272 491 Programme 2 Water Resource Management 1 506 657 Programme 3 Water Services 1 405 075 Programme 4 Forestry 373 189

1. Strategic Plan and the Budget Vote

The Strategic Plan of the Department has fourteen (14) Programmes while the Appropriation is divided into four (4) programmes. It seems that there is a disjuncture between the Budget Vote and the Strategic Plan of the Department. The strategic plan contains the objectives of the department. The objectives are or should be specific, measurable, achievable, real and time-bound. This will be able to merge with the Strategic Plan and the Budget Vote together with the Appropriation.

The disjuncture between the two arises because the Strategic Plan has to conform to the format requirements of the Department of Public Services, whilst the budget has to conform to the format requirements set by the National Treasury. However, the activities in the Strategic Plan are linked to the different Programmes of the budget. Furthermore, there is a matrix system of reporting between the Head Office and Regional Offices, which makes the linkage between the Strategic Plan and the budget possible.

1. Restructuring of the Department

The Department adopts a responsible approach to the restructuring process that takes into account all role-players. The restructuring process is budgeted for in the Administration Programme and other line functions. This will take some time, for example, Water Services will only be transferred by April 2006.The process is therefore dependent on the other cross- departmental services.

Moreover, the Government is restructuring entities that were established and operated beyond South Africa’s borders. During this process, municipalities would have to look for services that they can source from outside the government and itself.

1. Gender and the Budget Vote

The government develops policies that are gender sensitive at all levels. However, there is a weakness in the budget vote in that it does not cater fully for rural women who bear the brunt in communities where there is lack of sanitational and water services.

1. State of the Nation Address

There is a degree of consistency between the State of the Nation Address and the budget of the Department. For example, the budget provides for the provision of basic services; the 2nd Economy and rural development; and creating a framework for economic growth in the 1st Economy which are areas covered in the State of the Nation Address.

RECOMMENDATIONS

 1.  Where the department has shifted targets in a budgeted year and
    are reliant on other departments and tiers of government, that
    those targets remain the responsibility of the department of Water
    Affairs and Forestry to monitor and effect through a process of co-
    operative governance.

 2.  That the restructuring process with regards to water services to
    local government and forestry to other departments, that the target
    dates be relooked at and that service delivery and human resource
    concerns and capacity not be compromised in the process.

 3. That all provinces, which have not held Provincial Water Summits,
    be encouraged to do so and that it should not be left for
    individual municipalities to organise.

 4. That the Working for Water programmes to be enhanced so as to
    contribute in curbing the water shortage problems as currently
    experiencing in the Western Cape.

 5. That the department of Water Affairs and Forestry in conjunction
    with provinces and municipalities take steps to continue to
    investigate illegal use or extraction of water where they occur.

 6. That the department of Water Affairs and Forestry assist in
    clarifying the policy positions on Basic Household Sanitation so as
    to build capacity in municipalities and ensure that service
    delivery targets are met and that our people obtain the quality
    services the budget sets out to be.

 7. That the department on Water Affairs and Forestry as sector leader
    provide guidance on the implementation on indigent policies so as
    to ensure that especially poor people who has not received free
    basic services by municipalities can receive them.

 8. As SALGA is of the view that the 2005/2006 budget is insufficient
    to maintain support to municipalities, DWAF together with SALGA
    should embark on further capacity programmes especially with regard
    to Project consolidate.

 9. That the department on Water Affairs and Forestry enhances its
    focus on the impact of inaccessible water services and forestry for
    women in rural areas in relation to clean drinking water and the
    impact on their health (water borne diseases).  That DWAF
    investigate the claim by the National Movement of Rural Women with
    regards to illegal connections of taps and that allocation of water
    services and infrastructure that mitigates against service delivery
    to women in rural areas, that the regional offices of DWAF initiate
    co-operate community participation to overcome these backlogs.

10. That the department of Water Affairs and Forestry initiate
    engagement with the departments of Provincial and Local Government,
    SALGA, Agriculture and other relevant departments on the need to
    strengthen important initiatives to provide sustainable water for
    multiple use to vulnerable households including a programme on
    sustainable multiple use for forestry to vulnerable households.