THURSDAY, 19 MAY 2005 __

          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.

                         APPROPRIATION BILL


                           (Policy debate)

Vote No 28 – Housing:

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P Hollander): Hon members, on behalf of the NCOP we would like to welcome hon Minister Sisulu, national Minister of Housing. You are welcome here with us today, hon Minister, and we know that you will have a good time with us.

The MINISTER OF HOUSING: Chairperson, members of the provincial legislatures, members, when, in the early 1980s, a different South Africa was at the crossroads, a senior official of the then apartheid regime by the name of Timo Bezuidenhout tendered his resignation. He was, by all accounts, a man of many talents and had had wide experience. He had served as a commissioner and a magistrate in the Western Cape and he had been charged with what, in the language of those times, was “black affairs”. In short, this meant that he was responsible for ensuring that blacks did not venture into and settle in the Western Cape.

In 1987, he publicly discussed the reasons for his resignation and he said that during his tenure, he had realised that the solution to the migration of black people lay not in stemming the flow of people into urban areas but in allowing space for controlled self-building of shacks. To find land for this purpose, he therefore consulted the then Minister of co-operation and development, Dr Piet Koornhof, who in turn went to the then president, P W Botha. Botha and Dr Koornhof hired a helicopter – I wish this was available to me as well. They flew over the city of Cape Town and identified Khayelitsha. And so, in conclusion, in order to help stem the flow of black people into the Western Cape, he gave many of them permission to squat in Khayelitsha. He said that every night he sat with piles and piles of files. Taking them one by one, he would write: “approved for squatting in Khayelitsha”.

It would appear to me that as Bezuidenhout did this he had taken good advice from those who, in the stabilised and freer circumstances that our 10-year democracy presently provides, were all too content to give advice that shacks were a constructive solution to the process of rapid urbanisation. More fundamentally, he had been allowed to do so by someone and the idea that the integration of races within South Africa’s living space was not desirable. As such, the landscape of all our provinces shows this outcome of the actions and policies of – not so many years ago – a number of people like Bezuidenhout.

In presenting our budget here for the financial year 2005-06, therefore, we specifically seek to reverse the consequences of these actions and policies. This House, and indeed this government, will never be able to claim that it is a government of the people if it does not do so. It would never be able to claim that it follows the prescripts of the Freedom Charter if it does not give, in a free democratic South Africa, that which we clamoured for, which is decent houses, security and comfort. We will not be able to do this if the results of the actions of the past are not corrected.

In implementing the prescripts of the Freedom Charter, we have correctly said that these will not be achievable unless we created a state that was in partnership with its people. As presented here, together you form the critical tie that helps us develop our linkages with our people at provincial level. Thus this budget is primarily focused on the provinces and municipalities for the purposes of collectively achieving our stated objectives. Firstly, I would like to assure this House that I am extremely satisfied with the progress that we have made as departments and provinces. We have had a very short year because, as you know, we spent the first three months under instructions of the President to produce a new plan on human settlements, and then we proceeded to work out its implementation plan and realign ourselves to the plan. But having said that, our performance has been pleasing and I can confirm that our MECs for housing have done a very good job. [Applause.] I recognise two of them here and I am certain that they acknowledge the applause.

Except for two provinces, most of our provinces have on average spent up to 95% of their budgets. All things considered, this is good news. We are working on ensuring that we can report here next year that all our provinces have spent within the acceptable target. In addition, the number of units that have been made available in the 2004-05 financial year is 178

1. This time the emphasis in our housing programme is on decent houses. We anticipate that next year, because all our systems will be in place, we will produce the highest number of units we have had in the past eight years.

If we were to effectively begin to reverse the essence of apartheid, then we would necessarily have to deal with the residential segregation that was meant to ensure our apartness. Therefore within the comprehensive plan on sustainable human settlements we found it necessary to address the fundamentals that will enable the provinces and municipalities to perform. We have determined that land for human settlements will be well located, with easy access to all those amenities that contribute to the social and economic viability of the community.

We have therefore identified that the issue of land allocation will be pivotal to the success of the plan. We would obviously target the acquisition of state land for this purpose. We would require that we audit this land, investigate its suitability and availability for housing development. For this purpose, we have decided to establish a special purpose vehicle.

It is important to emphasise at this point that the plan is premised on the hope that this will help reverse the trend for low-cost housing to be developed in far-flung places on the periphery of cities and towns, where there is limited access to services and social facilities, and where transport costs to employment and retail opportunities are at their highest.

At this point, it is important also to mention that I am hoping that this will be given the most immediate attention, because most of the land that we own as a state is in the hands of municipalities, and I do not know if any of us sitting here knows what criteria is used by municipalities in disposing of land. We are hopeful that, through the plan, we can influence these criteria. Secondly, steps are being taken to review the national housing code. This is done with a view to make it more flexible and responsive to varying local housing development needs and circumstances. The new guidelines will establish policy principles, be flexible and user-friendly. To ensure that all stakeholders are accommodated, a multistakeholder task team will oversee the process. Owing to the magnitude of the task to review the whole code, a transitional process is being implemented and various guidelines have been developed to guide the key elements of the comprehensive plan in the interim.

Thirdly, the accreditation of municipalities to administer housing programmes would be speeded up and will commence with a pilot phase in which three metros EThekwini, Ekurhuleni and Nelson Mandela Bay and six cities, which are Polokwane, Sol Plaatje, Buffalo City, Emalahleni, Mangaung and Potchefstroom, will be used. [Applause.]

The accreditation, and I am glad that we have some of our MECs here, would be with effect from June this year. Thereafter accreditation will be rolled out to all municipalities nationwide. We see the process as necessary to help municipalities fulfil their political mandates of being the feet of delivery. In this regard, we commend the steps that have been taken by these various cities and municipalities in ensuring that we can commence the process as speedily as possible. National Treasury has allocated us a sum of R50 million to proceed with this task. It is important that at this point I take time to inform the House that these past two hours I was engaged in a meeting of an emergency nature with the Nelson Mandela Metro. This has brought to my attention some of the problems that we are experiencing in our provinces. And I happy to announce that, after the meeting, I dispatched my Deputy Director-general of Finance, together with a number of officials, to go to the Eastern Cape to see if we cannot find a solution speedily. [Applause.] But I am also very happy to announce that by the time that the embattled and very worried mayor left, we had actually solved the problem.

We are hoping that by Tuesday next week, having had discussions with the MEC and the Premier, we will be announcing what the solution to the problem is. I also want to add that I commend the mayor for taking time to find a solution and ensuring that in fact the solution is implemented. It has been necessary to change within ourselves the institutional architecture for housing delivery. This we did for the purpose of aligning the roles and responsibilities of the various institutions to the requirements of the plan. Therefore the social housing policy has now been revised to achieve urban regeneration and renewal, which will contribute to the rectification of the social, spatial and economic dysfunctionalities of our cities and towns.

We seek a social contract with the building and construction industry and developers. We seek to ensure that in future a 20% allocation of all housing developments, which is not entitled to government subsidies, will be reserved for low-cost housing. This plan is being finalised with the participation of key players in the construction industry. A further outcome of the social contract concerns steps that as government we will be undertaking to ensure that regulations are streamlined and made more flexible in respect of the rezoning of land for low-cost housing.

Further, because of the well-publicised problems relating to waiting lists we have taken a decision to audit these. In the Northern Cape recently during an imbizo with the President a number of communities highlighted the difficulties they are experiencing in giving any credibility to the provincial list. These problems are also manifesting themselves in other provinces and municipalities – Western Cape and Cape Town being a clear case in point.

Given the situation we therefore took the decision to audit all waiting lists and to consolidate these into a national waiting list. At the National Assembly meeting on Tuesday we announced that PricewaterhouseCoopers and Nkonki Consortium have been charged with the provision of this credible and comprehensive national waiting list process.

Already work has started at local level to prepare the lists for auditing. Recently the City of Cape Town completed an update of its waiting list, which currently stands at a 120 000 applicants. I am waiting on other municipalities to follow suit on an urgent basis. Having recognised the difficulty presented to the hard-core poor by the requirement of the production of a deposit of R2 479 – a 10% deposit - for any subsidy house, we have decided that families falling below the income category of R1 500 per month will be exempt from this requirement. We still insist, however, that those earning above R1 500 a month will be required to pay the deposit. Meanwhile, as government, we will work on ways in which this can be paid in manageable chunks.

We have revived the Financial Services Charter by signing a memorandum of understanding with the banks. They have pledged R42 billion to be released into the affordable housing market by 2008. In addition, as part of our agreement with the Banking Association, Absa, FNB, Standard Bank and Nedcor, we are negotiating a national home loan code of practice with an appropriate sanction mechanism. We expect this to be finalised by the end of August this year. We are confident that the memorandum of understanding will benefit those who receive little or no government subsidy - that includes nurses, teachers and police. Unfortunately it does not include members of Parliament, or of the NCOP. [Interjections.] The direct result of this agreement, in other words, will be increased access to housing loans and home ownership to those segments that were previously excluded. For the success of this venture I am greatly indebted to the teams that worked on this, in particular the Banking Council, led by their chief executive, then Mr Bob Tucker and now Mr Cas Coovadia.

To support these initiatives our legislation and the programme of legislation for the year will include the Social Housing Bill, which will assign the responsibility for the national, provincial, and local governments as they pertain to social housing very clearly. In addition, it will ensure that relevant institutional arrangements and capacities required by the National Housing Programme are in place, including the establishment of a Social Housing Regulatory Authority. The task of the regulatory authority will be to maintain a healthy, accountable and effective social housing sector in South Africa.

At this point I would like to indicate that as part of an agreement that the churches and the religious sector have signed with the Presidency, the religious sector has committed itself to help us within this area of social housing, and I am very happy with this. The Housing Development Bill, which we hope also will be introduced to put in place a broad framework for residential development, facilitates spatial restructuring and the setting aside of a certain proportion of all housing developments for affordable housing.

The unveiling of the Comprehensive Plan on Sustainable Human Settlements has indeed ushered in a new period in the development of our urban and rural environments. The plan is our blueprint for all housing developments. It is our response to the demands of the Freedom Charter. To ensure housing, security and comfort, the plan has called for the development of new strategies in dealing with slums and informal settlements, urban renewal and rural housing development. Thus, in line with our commitment to achieving the Millennium Development Goals, we join the rest of the developing world and reiterate our commitment to progressively eradicate slums in the 10-year period ending in 2014.

In addition, we would like to announce that an amount of R500 million in 2006-07 and R1,5 billion in 2007-08 has been allocated to step up the housing programme so that all informal settlements can be upgraded by 2014.

This is the part that I am certain my MECs came all the way to Cape Town to hear, because this is now the provincial allocation for the three years coming. For the financial year 2005-06 the Eastern Cape gets an allocation of R581,218. For 2006-07 this goes up to R679,194 million and for the year 2007-08 the Eastern Cape gets R830,154 million. The Free State – please allow me also to congratulate the new MEC for the Free State who has just introduced himself to me - this is what you will be getting for the year, because I am being nice to you [Laughter.] For the year 2005-06 it’s R398,618 million. I am even nicer to you the following year: In 2006-07 it goes up to R465,814 million, and then I completely outdo myself in 2007-08 when it is R569,347 million.

Gauteng receives - I must add here that it is because they are the most populous province, and not because I come from Gauteng – R1 340,67 billion for the financial year 2005-06. For the year 2006-07 they receive R1,56 billion. For the year 2007-08 they receive R1,9 billion . . . [Applause.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P Hollander): Order!

The MINISTER OF HOUSING: . . . to ensure, may I add, that the 300 informal settlements in Gauteng are completely eradicated by 2014. For the Limpopo province we have allocated R397,650 for the year 2005-06. The last time I was here we were informed that Limpopo has a problem producing more people than it has right now. [Laughter.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P Hollander): Order! Order!

The MINISTER OF HOUSING: Even the fertility of the vegetation does not help the people of Limpopo. [Laughter.] For the year 2006-07 it is R464,682 million, and for the period 2007-08 it is R567,963 million. For Mpumalanga to ensure that we can deliver more settlements like Emalahleni we give you R321,123 million for this period, for the period following that it is R375,255 million and beyond that we give you R458,660 million. I did not see a smile, Chairperson. For the Northern Cape - not because they are furthest from us, but because of the size of the population - we give them R79 million for this year. For the following year we give them R93 million, and for the outer year we give them R114 million. Not bad.

For the North West, an allocation of R467,880 million has been made for 2005-06, R546,751 million for 2006-07, and for 2007-08 we give R668,274 million. Lastly, the Western Cape receives an amount of R456,740 million for this financial year, R533,733 million for 2006-07 and for the outer year they receive R652,362 million. In total the allocation to the provinces per financial year will be R4,843 billion; for the second year, which is 2006-07, it is R5,6 billion; and for the outer year it is R6,9 billion.

In partnership with various institutions in the country we have decided that we are going to reach outside of ourselves to ensure that we can tap the expertise outside of our borders. Therefore, together with the University of South Africa, currently known as Unisa, we have created a fellowship to be received by those whose expertise we will from time to time tap. The first fellowship that we are going to award through the scheme is to hon Tun Daim Zainuddin, who served as Minister of finance in Malaysia and was key in the development of the policy that that country utilised to speedily eradicate slums.

In due course we are hoping that the eminent Peruvian economist, Hernando de Soto, will also benefit from this fellowship, because we want to tap his knowledge to assist us in understanding and making better use of the value that lies in the assets that are otherwise locked up in our dead properties.

Recently we hosted a very successful conference, the African Ministerial Conference on Housing and Urban Development, in Durban. We aligned the problems of the developing world in relation to housing and urban development and we were able to formulate a common African position, and the need for the international community to meet their commitments in respect of finance, as well as debt relief and debt cancellation.

South Africa was appointed as Chair, and we have since offered to host the Secretariat of Amchud. I would like here to thank the staff of my department and the various other government departments that made Amchud such a success. Over and above that I would like to thank my MECs most sincerely for making this what it was. Without them Amchud would not have been a success. I thank you most sincerely.

Further, I would like to thank all the MECs of housing in the provinces - those who are presently MECs and those who were charged with the responsibility before they moved on to other responsibilities - for the enormous contribution they are making in bringing us this far since the unveiling of the Comprehensive Plan on Sustainable Human Settlements. Their efforts have made my burden so much lighter. I would like to congratulate the MEC from Limpopo, Maite Nkoana-Mashabane, for taking the bull by horns when she accepted the report on the maladministration of the department and taking the necessary steps to rectify this.

I thank the executives who are present here from the Institute of Housing in South Africa for all their support and their efforts in rallying around the human settlement plan and the award bestowed on the Ministry for this. I hope our relationship with the Housing Institute will grow from strength to strength. I also want to thank all of those present here who have ensured that the pilot projects on the N2 and Cosmo City were a success.

I would like to invite members here, as they leave the hall, not for coffee, unfortunately, but to view the models we have outside of Cosmo City, of the N2 and of Kliptown which have been prepared for us by the engineers. I am grateful to them for that.

This is to indicate to you that this is the way that South Africa will go – the way of human settlements. Allow me to reiterate therefore that our collective success means a better life for the vast majority of our people. History is on our side, and I am ever so grateful for the support that I have received, also from the NCOP, and the warmth with which I have been received from time to time. I thank you. [Applause.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P Hollander): We thank the Minister of Housing for her in-depth and informative contribution to the debate.

Rev P MOATSHE: Chairperson, the Minister and her department, MECs, special delegates, hon members, glory be to God …

HON MEMBERS: Amen!

Rev P MOATSHE: … the Creator who created South Africa amongst the countries of the world. We are happy to be South Africans. Hallelujah.

HON MEMBERS: Hallelujah.

Rev P MOATSHE: Ever since 1994, the ANC has taken new steps to ensure that we move faster towards the realisation of the goals stated in the Freedom Charter, namely that: “There shall be houses, security and comfort!”

The apartheid era has left a legacy of social and economic infrastructure that is unintegrated, environmentally unsustainable, of poor quality and unequally distributed. A mammoth task was faced by the ANC-led government, namely to introduce new priorities in infrastructure since 1994.

On 14 April 2004, the citizens of South Africa clearly articulated their wishes on who should lead government in South Africa. They gave the ruling party the mandate to proceed to deliver the people’s contract to create jobs and meet the basic needs of the people. The delivery of services to our people has also been facilitated by the recruitment of community development workers.

Communication between communities and municipalities will improve, and problems will be detected at the early stages. In the Northern Cape, 120 community development workers were recruited, 400 were recruited in the Western Cape, and in the other provinces such workers were also recruited.

Indeed, there can be no more visible intervention than at the lowest levels, among the poorest of the poor. Housing is an area where the stark reality of inequalities in our society is immediately visible through the overwhelming vote of confidence by our people that commits us to deliver on our promises. Together, therefore, let us break the new ground in housing delivery.

It was in 1912, in May, that concrete steps were taken by Africans to form a movement that would devise some methods of presenting the grievances and complaints of Africans to the government. In this House we are advancing what our fallen comrades could not witness. When we as the ANC deliver with regard to our good policies, we wipe the tears of widows and orphans who lost their loved ones because of this freedom.

Our late President, Oliver Tambo, spelled out the true meaning of the Freedom Charter to our country and people on 8 January 1980, when he said:

The Freedom Charter contains the fundamental perspective of the vast majority of people of South Africa of the kind of liberation that all of us are fighting for. Hence it is not merely the Freedom Charter of the ANC and its allies. Rather it is the Charter of the people of South Africa for liberation. Because it came from the people, it remains still a people’s Charter, the one basic political statement of our goals to which all genuinely democratic and patriotic forces of South Africa adhere.

According to the Freedom Charter -

The people shall govern! All people shall be entitled to take part in the administration of the country.

It is imperative for people to be included when decisions are taken; hence we have a people’s parliament.

Mass participation in the IDP of municipalities, becomes critical. It is not acceptable that departments have roll-overs when we have such a huge backlog. It is when we work together that we can hope to take up the challenges before us. A better life for all will not be achieved if we do not work together. The resources are limited, but they need to be distributed so that people, the poorest of the poor, see that today is not like yesterday.

This is a comprehensive delivery strategy to the poorest of the poor. Through the delivery multiphased issues are addressed, such as water, sanitation, clinics, schools and transport. The dignity of persons is restored and their ownership is also restored. For the first time in their lifetime, people have something that belongs to them. If we are not doing our oversight, hon members, we will be failing the people of this country who gave their lives to the ANC. Their hopes are with the ANC. In the new ground-breaking strategy, facilities such as crèches, sports fields, community halls and taxi ranks can be closer to the communities.

Some 2 000 years ago, these words were uttered: “Foxes have holes, birds have nests, but the Son of Man has nowhere to lie down his head.” These words said centuries ago are true even today. The birds of the sky have nests, foxes have holes, but still millions of our people in our provinces don’t have decent places to call their homes.

This budget, Minister and hon members, is aimed at ensuring that the thousands of homeless people in the various provinces join the birds and foxes that have nests and holes that are integrated in a sustainable settlement.

It is unacceptable to see departments in the provinces having roll-overs when their deliverables and commitments have not yet been met. Clearing of informal settlements is still our challenge; hence you saw communities from various municipalities taking to the streets. This integration also needs to be done on land that is available in the city centres.

As we address the housing backlog, though it is not deliberate, we found ourselves creating separate locations that are placing our people far from their places of work. Rural development also needs to be prioritised, because it does not only address shelter and quality housing. Rural communities will also benefit from the spin-offs, such as jobs, training, access to basic services and an improved standard of living that the housing delivery process brings about.

It places an obligation on us, as the representatives of the people, to ensure that we consolidate the people’s power, especially at local government level, which is central to the implementation of the programmes we vote for in this House. We support this budget, because it will have a long-term impact on the poorest of the poor. Many years into the future, when we are no longer here, the impact of this budget will be felt, hon Minister.

In essence, the municipalities are the actual deliverers of the ideas of a better life for all, as espoused in the Freedom Charter. Thus, the capacity of municipalities to perform such functions is critical for accelerated progress in the fight against poverty and the creation of jobs for our people. As the electorate we are very concerned about the enormous sum of moneys paid to consultants for capacity-building programmes at municipalities, despite the absence of tangible results on the ground.

During the first decade of freedom, the period since we adopted the RDP, we have put in place the necessary, specific programmes to bring realise the objectives of the RDP, and therefore the Freedom Charter. The policies that the ANC-led government have developed are the best policies, and the poorest of the poor are benefiting from them.

The policies of the ANC are based on the pillars of a better life for all. It is against this background that roll-overs in any department are not acceptable, because this retards the progress and stifles delivery, and therefore are too costly to be tolerated.

As the ANC, we have a plan. The ANC has got a plan for the people of this country, nobody else - unless there are dreamers who are dreaming, thinking that they can do better. The ANC has got a plan, so let us adhere to and support this budget so that this plan can be implemented at the end of the day. Let the dreamers come and dream, let’s listen, but watch the crocodile . . . [Laughter.] . . . will push you slowly into the water. [Applause.] I thank you.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P Hollander): Before I call the next speaker, I would like to bring this to the notice of all members in the Chamber: According to Rule 31(a) a member of the Council may not pass between the Chair and a member addressing the House; (b) pass between the Chair and the Table or (c) stand in any of the passages in the Chamber.

Mr G R KRUMBOCK: Madam Chair, the ideological debate with respect to government’s role in the economy ended when the Berlin Wall came down in

1. It is now common cause throughout the world that market forces are the major generators of wealth, and government’s proper role is to establish a framework whereby these forces can promote prosperity for all as quickly as possible.

Governments can, and do, in many cases play a positive role in assisting the poorest of the poor and providing a basic safety net for those who have not yet been lifted out of poverty. What is often left unstated is the significant damage that governments often inflict by their misguided attempts to control and direct the microeconomy which frequently produce effects opposite to that which was intended.

My party has consistently championed the cause of small business and entrepreneurs in South Africa, believing that by building small businesses in communities we can build our nation. We have consistently argued that the plethora of job-crushing legislation, while improving the lives of the well-entrenched labour aristocracy, has also led to substantial disincentives for investment and consequently massive job losses.

In response, in his state of the nation address on 11 February, the President announced that the government would expand exemptions for small businesses from the burden of many “taxes, levies as well as central bargaining and other labour arrangements”.

The DA welcomes this move wholeheartedly. We warned as far back as 1995, when opposing the Labour Relations Bill, that the legislation would not generate jobs, but would frustrate economic growth. When we proposed an amendment to that Bill that would have allowed a blanket exemption for small business from industry-wide collective bargaining agreements, we were told that this was impossible. We were labelled conservative and reactionary. Now the President says that the need for such exemptions is obvious.

Of course the need for such exemption is obvious. But how seriously do we take this need? After all, the President told us - correctly in my opinion

• that “the burdens placed on small businessmen to comply with some of these labour provisions are quite unreasonable”. He said that he had been told of instances where they would produce paralysis. But this was five years ago and his reforms failed to materialise. Five years later, the government is making the same promises again.

Let us be brutally honest with ourselves. Governments do not create jobs. Government activity that produces employment is financed by taxes or borrowing, which reduces investment and pushes up interest rates, thus crowding-out further investment in the private sector. Moreover, government can never be as efficient as the private sector, as both the motives and incentives are quite different. Therefore, every successful country seeks to promote its private sector and private entrepreneurship to the greatest possible extent. Successful countries lower the barriers to job creation by repealing job-crushing legislation and rolling back other bureaucracy which stifles entrepreneurs and SMMEs. That is why, although our country’s growth rate has increased, it is still amongst the lowest in the world amongst developing nations, because much of this legislation and bureaucracy is still in place.

According to the labour force survey of 2004, the total number of people in the construction industry as at September 2004 was 824 000 persons. Of these, 492 000 were employed in the formal sector and 317 000 in the informal sector, according to Stats SA. The shortfall of 15 000 is not accounted for. Of these persons, the overwhelming majority are African – 638 000 or 77,4%. An even higher percentage, 87% or 717 000 persons, work for either micro, very small or small enterprises. The inescapable conclusion is that most workers employed in the housing industry are relatively vulnerable, arising from a historically disadvantaged background, and almost all of them work for enterprises that are susceptible to inimical labour legislation.

I would like to mention two examples that have been referred to me from my constituency to illustrate this point. In the first instance, a micro enterprise, employing 20 almost exclusively African unskilled workers and artisans, was subjected to a “go-slow” action as an alternative to a strike for higher wages. No action was taken by the employer who attempted to resolve this industrial dispute.

After the dispute was resolved and normal work resumed, the instigators of the “go-slow” action physically threatened other workers with dangerous knives, apparently because they believed the co-workers have settled for too little. The response of the employer was to terminate the employment of the two workers who had brought violence and intimidation into the workplace.

In terms of current labour legislation this action was apparently illegal, as the employer was obliged to issue a series of written warnings, which he failed to do. Although seeking to protect the safety of his workforce, he was found guilty by the CCMA commissioner and ordered to pay three months compensation to the two workers who have threatened the physical safety of his remaining employees.

Furthermore, he was informed by the CCMA commissioner that if he did not settle on this basis, he would be ordered to pay a compensation package amounting to 12 months to both workers, a fine which would have come close to putting him out of business. Needless to say, the employer is extremely disillusioned for being fined merely for trying to protect the safety of his employees and is considering closing down his business, as he is not prepared to put his life at risk in favour of thugs who misuse and exploit our no doubt well-meaning but counter-productive labour legislation. This would affect not only the 20 workers he currently employs, but a much larger number of persons constituting the dependants of his current employees.

In a second example, an employee who was present and paid his weekly wage on a particular Friday did not appear at work on the following Monday. It was assumed that the employee was ill, but it was subsequently discovered that he had joined another firm on a neighbouring building site, ostensibly for a better weekly wage. This particular employee failed to inform his employer that he had sought and gained alternative employment, and instead also approached the CCMA for severance pay.

Although evidence was led and accepted that no termination by the employer took place - including no constructive dismissal - the CCMA commissioner nevertheless awarded the employee R2 000 severance pay, which he then reduced to R1 000 on the grounds that the employee swore at and intimidated his former employer at the hearing.

I have consulted with the labour lawyers who assured me that if an employee voluntarily terminates his employment, and there is no element of constructive dismissal involved, there cannot be any severance pay applicable. Needless to say, this employer is seriously considering his future in the housing industry.

We have to ask ourselves whether our restrictive labour legislation as it applies to SMMEs in the housing industry is always in the interest of all concerned. If we are serious about combating unemployment, we have to encourage rather than penalise risk-takers who are both established and newer enterprises and who comprise an ever-growing percentage of newly empowered black entrepreneurs. The withdrawal from the industry of these SMMEs will not only increase unemployment, but also push up housing prices as competition is weakened. The state, vulnerable workers and new homeowners all lose.

Another government institution which creates as many problems as it solves is the NHBRC. It is becoming increasingly time-consuming in KwaZulu-Natal to obtain the necessary certificates pursuant to housing construction commencing. It is not unusual to stand for over two hours in a queue waiting for a house to be registered. As with most SMMEs, it is usually the employer that must undertake this task, and as a result very often a full day’s production and wages is lost.

As if this was not enough, I have also been made aware of the practice of the NHBRC to issue the tax invoices for the home registration fee to the builder rather than the entity owning the construction site and house before it is sold. There are a number of small developers who create significant job opportunities by investing the necessary risk capital into land and construction activities to promote development. As entrepreneurs with other possible business enterprises, they are not necessarily registered with the NHBRC themselves, but are obliged by law to employ builders who are.

The NHBRC’s insistence on issuing the tax invoice to the builder, who does not pay this account nor owns the house – the entrepreneur will pay for both – simply means that it is impossible to claim this VAT back as a contractor is often not a vendor and an entrepreneur is often not registered with the NHRBC. This cost is then passed on to the homeowner to the ultimate benefit of the banking industry, again an unintended consequence of the legislation. I would be grateful if the Minister could investigate a simple intervention whereby a tax invoice could be made out to the vendor who owns the building and who can then claim the input tax back.

Most disappointing, however, is the lack of progress on the star rating accreditation of NHBRC registered contractors. Both the Minister and her predecessor will recall that I have been asking for this to be implemented for a number of years now. On every occasion I have been assured that the matter was being favourably investigated, and that the industry had raised a valid point in this regard.

However, in the briefing to the NCOP Committee on Public Services: Department of Housing on 18 May this week, we were told categorically by departmental officials that no system affording a discounted rate for builders who had established an exemplary track record was in place. Instead, far more alarmingly, the committee was informed that the NHBRC was considering motivating an increase to the 1,3% levy due to alleged insufficient cover for the warranty.

Minister, this is worse than unacceptable. It is unconscionable. If the 1,3% warranty levy is insufficient, this can only mean that bad building practices and claims are greater than warranty levies collected. Why are we penalising and passing this cost on to all builders, and ultimately to homeowners? Why are we not striking bad builders who generate this cost off the NHBRC roll, as the legislation intended? Why are we suggesting that this cost should be borne by all instead of by none? Surely it is in everybody’s interest – the state, the industry and homeowners – to encourage sound building practices, and to do that by incentivising such practices in the market place. A graduated levy with lower rates for outstanding builders will not only make such builders more competitive, it will lower the cost of homes and will align market forces with government policy.

In conclusion, if there are good reasons why this should not be implemented without further delay, I would appreciate it if you could inform this hon House when the graduated levy for accredited builders will take place. Thank you, Madam Deputy Chair. [Applause.]

Mr S A MKHIZE (Gauteng): Chairperson, Minister of Housing, members of the NCOP, the representatives of various stakeholders, ladies and gentlemen, I think it is important upfront to acknowledge the statement made by the Minister. We, as Gauteng, welcome the allocation and thank you very much. It is an honour for me to be part of the debate and to respond to what the Minister of Housing, Dr Lindiwe Sisulu, has presented to the House as a programme of the delivery of government.

This presentation and debate come after long consultation between national, provincial and local governments on how best to address the challenges of housing the nation based on a common approach. We now have a detailed programme of delivery. This is an indication that government at all levels is highly committed to change people’s lives.

Because we subscribe to and believe in the principle of participatory democracy through our consultation with people, we know what the concerns are, and what processes are needed to deal with such challenges.

The ANC-led government has over the past 10 years learnt a lot and now we are ready to intensify the housing programme. One of the lessons we have learned is that the objective of integrating the many infrastructure- related programmes of government has not always been achieved.

This led to the housing projects which are often not well located, and do not have a fully rounded range of amenities to ensure the full participation by residents in various economic development activities. To address these issues the housing department must align its plan with other departments, as well as improve the integration of factors into housing projects like job creation, poverty alleviation and building safe and sustainable communities.

As we approach the 50th anniversary of the Freedom Charter, it becomes crystal clear that the fierce struggle by the gallant fighters, the founding fathers and mothers of the Charter, was not in vain. Today we pride ourselves on being a free nation, conscious of the fortitude and relentless struggle waged by these heroes and heroines who gathered in Kliptown in 1955. Their vision remains a brighter star that beckons all of us towards its attainment.

Since the Minister of Housing unveiled a comprehensive plan on sustainable human settlement in September 2004, we have seen considerable change in our housing delivery programme. There are pilot projects being implemented in the provinces and all plans are now in line with the objectives of the new plan.

Accordingly, in breaking new ground in housing delivery, the Department of Housing in Gauteng has identified areas that call for policy interventions. In line with the national human settlement plan, we have identified the creation of sustainable human settlement as a primary goal.

In support of this goal we are adopting an integrated development approach in the delivery of houses. What it means is that the issue of creating a quality living environment, in which conditions of squalor and unplanned settlement will not be tolerated, becomes a priority.

In essence our policy interventions are now geared towards the provision of all the ingredients that make for a healthy and a secured community. It is our deep-seated conviction that this government will be betraying the aspirations and the struggle of the 1955-generation if the realisation of human settlement remains unchanged.

It is encouraging to note that government is exploring ways and means of ensuring that people from different racial groups, with varying incomes, begin to appreciate the value of sharing the same settlement space. It is therefore our express intention to direct our energies to building an integrated nonracial society.

Indirect intervention aimed at achieving this includes the identification of land in former white areas such as Austin View and Calvin School sites, in-field development in Marlboro Gardens and the delivery of a variety of products to address the needs of different income groups in Olievenhoutbosch.

Our programme of upgrading and eradicating informal settlements is on track. We have registered all informal settlements, and the provision of services to those informal settlements that can be upgraded is being implemented. We now have reliable information in terms of the numbers of people, households and shacks in each of the informal settlements registered.

This information will be used for planning purposes and to determine what resources are needed. We will also be in a position to know which informal settlements are situated on well-located land, and can be developed further. It is important to note that the challenges of dealing with informal settlements in Gauteng cannot be met successfully if they do not relate to national initiatives, because at the core of the challenges of informal settlements is the unabated migration to Gauteng from other provinces.

One of the critical issues facing our government today is poverty. Through the introduction of the Expanded Public Works Programme we have realigned our housing delivery programme to focus on creating a number of short-term employment opportunities by ensuring that we use labour-intensive construction methods.

In implementing that, the President and the Premier of Gauteng have made reference to the fact that co-operation between all spheres of government must be maintained at all levels. In pursuit of these directives, the department will work very closely with the department of local government in building capacity for the local municipality, in order to speed up the delivery of services relating to housing matters across the board.

We welcome the additional R50 million that will be utilised for the capacitating municipality, and we believe that this will go a long way towards delivering houses and other services to needy people at local level.

One of the key challenges which government faces is that of co-ordination between the three spheres of government. We have to make sure that government improves its institutional arrangement, especially with regard to the presidential projects. The ministerial committee appointed by the President to champion all urban renewal projects is highly welcomed, and through consultation and interaction we will be able to identify shortcomings and possible interventions.

It is encouraging to see that the housing delivery programme is geared towards promoting human settlement that goes beyond the production of houses or basic shelter, and ensure the integrated delivery of a wide range of social and economic amenities and infrastructure leading to a supportive context for sustainable livelihoods.

The construction of Cosmos City bears testimony to our programme of mixed income settlement. We applaud the increase of subsidy and the exemption of R2 479 for families earning less than R1 500 per month. The ANC-led government remains committed and focused, and will forge ahead with its objective of accelerating the delivery of quality houses, and thereby fulfilling the mandate bestowed on us during the 2004 polls. We now have a comprehensive human resettlement plan which will guide us in delivering not only houses, but in building sustainable and viable communities.

Our main focus is to continue making sure that we have a sustainable housing and human settlement process in order to achieve housing with a secure tenure, within a safety and healthy environment, and the development of viable communities for all people. We support the Minister’s budget and commit ourselves to work tirelessly in ensuring that the prospective beneficiaries have access to houses. Thank you. [Applause.]

Mr C J VAN ROOYEN: Hon Chairperson, hon Minister, hon MECs, hon members, today I’m especially proud to be a member of the ANC. [Interjections.] Therefore please allow me to brag just a little bit today. [Interjections.]

Fifty years ago on June 26 1955 the people of this country declared at Kliptown that there shall be houses, security and comfort for all. The Freedom Charter further states that all people shall have the right to live where they choose, be decently housed and bring up their families in comfort and security. Therefore the groundbreaking memorandum of understanding signed on the 31st of March this year is an important step closer to the commitments made 50 years ago.

Just to remind the DA, and especially the hon Mr Steyn in the NA, who has a policy to try and copycat policies and not to pay attention to policy statements made by the government, this is a product of the ANC-led government, and a very progressive initiative. They should not attempt to rename this and try to claim ownership for their own petty party-political promotion.

This memorandum of understanding was signed between the Minister of Housing and the financial sector represented by the Banking Association of SA. This is in line with the commitment of the financial service charter and the new Comprehensive Plan on Sustainable Human Settlements, which aim to extend housing finance on a sustainable basis to the low-income borrowers and to transform the way in which this sector engages with the historically disadvantaged sector of the housing market.

Central to the partnership is implementation by the financial services sector to ensure the delivery of a minimum of R42 billion in a targeted investment for the new affordable housing finance for households with an income of R1 500 to R7 500 per month by 31st December 2008. This is certainly not the type of progressive initiative that one can expect from any opposition party in this House. This is another victory for the ANC-led government.

The Minister should be congratulated on this achievement, unprecedented in any part of the world – truly another world-class initiative from the African continent and, may I add, a product of the ANC! [Interjections.]

From the national department’s briefing on the 18th of May to the Select Committee on Housing on its strategic plan it became evident that the department’s intention with the budget was to map complex changes, from the adoption of the groundbreaking new policy framework to the translation into new programmes. This strategy therefore attempts to establish greater alignment between the department and the housing institutions, particularly in terms of agreement and mandates.

Travelling through the rural and farming areas of the Free State, one cannot help but notice some of the well built and maintained houses provided to farmworkers, and I would like to thank these progressive farmers. However, these are still too few and far between, and I’d like to appeal to commercial farmers through the organised agriculture sector to provide decent housing for their farmworkers.

We are looking forward to the new guidelines for farmworkers’ housing due in July 2005, which are being prepared by the department. The process of exploring models of on-farm and off-farm housing agrivillages by the department to limit the establishment of unsustainable settlements should be speeded up.

This will go a long way to addressing the long-standing confusion experienced by farmers in the rural subsidy programme owing to the lengthy procedures with regard to the ownership of communal land. Organised agriculture should therefore play a positive role in this initiative. Policies and initiatives like the ones taken by the Minister give life to the undertaking of the Freedom Charter.

As Afrikaners kan ons in ons gemeenskappe, hetsy in die landelike of stedelike gebiede, ’n verskil maak. Om betrokke te raak by die oplossing van die land se uitdagings is vervullend. Ek nooi graag mede-Afrikaners om deel te word van die ANC en om vir ons land en sy mense ’n beter toekoms te skep. Dankie. (Translation of Afrikaans paragraph follows.)

[As Afrikaners, we can make a difference in our communities, whether in the rural or urban areas. It is satisfying to get involved in resolving the challenges of the country. I gladly invite fellow Afrikaners to become part of the ANC and to create a better future for our country and its people. Thank you.]

Mnr K SINCLAIR: Agb Voorsitter, ek gaan vandag maar Afrikaans praat sodat die agb lede van die DA kan verstaan wat ’n mens vir hulle sê, want dit lyk my die probleem is baiekeer dat hulle nie verstaan nie.

Hoe meer ek na die DA luister, hoe minder verstaan ek hulle. Die agb lid Krumbock het vroeër vir ons gesê die regering moenie werk skep nie, maar as die regering nie werk skep nie, kritiseer die DA die regering. Ek kan nie verstaan dat die DA telkemale kom en hulle verwar in die argumente wat hulle na vore bring nie, want dit bevestig weer eens hoe min die DA die dinamika van ons land en veral van die landelike gebiede verstaan.

As die regering nie die katalisator is om werk te skep nie, sal daar nie werk geskep word nie. As daar nie entrepreneurs in die landelike gebiede is nie, is dit die regering se plig om dit te doen en toe te sien dat dit gebeur. Ek dink baiekeer ons gee te veel aandag aan die DA, want die DA is so ’n klein party dat ’n mens dikwels die teleskoop by Sutherland nodig het om hulle op die politieke toneel raak te sien. [Tussenwerpsels.]

Die ADJUNKVOORSITTER VAN DIE NRVP (me P Hollander): Orde!

Mnr K SINCLAIR: Voorsitter, ek gaan nie veel meer tyd aan die DA spandeer nie. Hulle moet maar vir hulself praat. (Translation of Afrikaans paragraphs follows.)

[Mr K SINCLAIR: Hon Chairperson, I will speak Afrikaans today, so that the hon members of the DA can understand what one is telling them, because it seems as if the problem is often that they do not understand.

The more I listen to the DA, the less I understand them. The hon member Krumbock told us earlier on that the government should not create employment, but when the government fails to create employment, the DA criticizes the government. I cannot understand that the DA time and again confuse themselves in their own arguments, because that confirms once again how little the DA understands the dynamics of our country, especially of the rural areas.

If the government does not act as catalyst in the creation of employment, no employment will be created. If there are no entrepreneurs in the rural areas, it is the government’s duty to do it and to see to it that it is done. I believe we often pay too much attention to the DA, because the DA is such a small party that one often needs the telescope at Sutherland to notice them in the political landscape. [Interjections.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P Hollander): Order!

Mr K SINCLAIR: Madam Chair, I am not going to devote much more time to the DA. They will have to speak for themselves.]

Hon Minister, I want to raise an issue with you today which is very important in terms of the free-market economy of our country.

Baie onlangs het ’n eiendomskenner, mnr Hernando de Soto, ’n wêreldkundige op die gebied van armoedeverligting, gesê dat die afwesigheid van wettige eienaarskap van eiendom in Afrika die grootste struikelblok is wat ontwikkeling op die kontinent van Afrika belemmer.

Ons is baie opgewonde oor die R33 miljard wat Barclays deur middel van die oorname van Absa in ons land se ekonomie inbring, maar dit word bereken dat daar bykans R68 miljard in die townships is wat nie as ’n verhandelbare eiendomsmark gereken word nie. (Translation of Afrikaans paragraphs follows.)

[Very recently a property expert, Mr Hernando de Soto, a world authority in the area of poverty alleviation, said the absence of legal ownership of property in Africa was the greatest obstacle that hampered development on the African continent.

We are very excited about the R33 billion Barclays is pouring into our country’s economy by means of its Absa take-over, but it is calculated that almost R68 billion is tied up in the townships that is not recognized as a negotiable property market.]

The time has arrived, hon Minister, that government, and you specifically, must drive the action to make it possible for our people to get their title deeds and, through that, allow them to be part of the property market process in South Africa.

Further than that, hon Minister, your department is on the run and it’s creating wonderful initiatives such as what we are experiencing here in Cape Town. However, I think there is also a different element to that, and that is that we must move away from creating houses for our people to getting sustainable homes where people can live in a community where they can perform their daily activities.

Until now I think we’ve sometimes followed the policy of “one size fits all”. If you go to the Northern Cape and you pass the new legislature you see the same houses, and maybe we must move away from that and through that create a sustainable economic policy for our country. [Time expired.] [Applause.]

Mr K PANDAY (KwaZulu-Natal): Hon Madam Chair, I bring greetings from the Kingdom of the Zulus. In the book Community Development in KwaZulu-Natal distributed by the Department of Local Government and Housing in KwaZulu- Natal, it is stated:

A house is more than just a shelter or a roof over one’s head. It is also the basis of a home. It provides security and a sense of permanence and belonging. It is the heart of a family. And a family is the basic building block of the community. Providing a house is therefore not only about providing houses, it is also about providing people with homes, where they can live together as stable families or householders, and when grouped together, as a stable country.

I must acknowledge, at the very outset, that the hon Minister of Housing is doing excellent work in ensuring that our people get decent homes. In order to complement what she is doing, all her counterparts in the various provinces have to devise plans to fast- track the building of homes. I repeat, the emphasis is on fast-tracking.

Our hon MEC of Housing in KwaZulu-Natal in his recent budget speech quoted the following words uttered some 2 000 years ago, and the Acting Chair of the Select Committee alluded to that this afternoon as well: “The foxes have holes, birds have nests, but the son of Man has nowhere to lie down and rest”.

The question is to what extent have we solved the problem of the grave housing shortage of two millennia ago? The answer is quite obvious, hence we are still trying to find ways to provide shelter for many of the sons of man, so that they could lie down and rest. KwaZulu-Natal alone, requires 872 000 units to satisfy the housing needs of our homeless.

The housing policy has been implemented to provide housing opportunities based on the subsidy principles. Since 1994 tremendous progress has been made in structuring the subsidy bands with regard to housing opportunities. Bearing in mind that we need homes rather than houses - and with the increase in subsidy, which will assist the top structure and the municipal infrastructure grant, which will supplement the bottom structure - I wish to make a strong appeal to the hon Minister to increase the size of our housing units to 45 square metres. That is at the very least.

This will be a milestone in housing delivery. The R7 500 extended benefit has not contributed very much towards the formalisation process. We are aware that our government’s priority is to transfer old housing stock to the relevant beneficiaries. However, I will ask our hon Minister to ensure that the discount benefit scheme be enhanced to facilitate this process, in keeping with the sustainable human development.

In our province we have just approved our budget. Within the constraints of our budget, we are meeting the challenges that we face. However, bearing in mind that KwaZulu-Natal has the largest population amongst our provinces - and I wish to differ with the hon Minister when she made mention of Gauteng being the most populous; I am subject to correction, but I think it is KwaZulu-Natal - I appeal to the hon Minister to help our hon Minister in KwaZulu-Natal, together with the department, by considering an additional budget.

The budget at the moment stands at about R799, 659 million. Gauteng has R1,34 billion, and I am not quite certain as to why KwaZulu-Natal has only 60% of the budget of Gauteng when it should have been, really, the other way round.

Another area that I wish to address is that of the Land Bank. It would be appreciated if the hon Minister could provide us with information that could lead us to understand the availability of land for housing in each of the provinces. I would love to have a sense of this, namely whether there is sufficient land to meet the requirements of all the people who need housing throughout this country. Here, hon Minister, we would love to hear about the total land owned by all three spheres of government. Thank you.

Mr M J MAFEREKA (Free State): Chairperson, hon Minister, officials from the Department of Housing, my colleagues, special delegates, members of the House, before I start with my speech - it is a maiden speech in any case . . . [Laughter] . . . let me say that I think the Minister has set the tone, and it is for us as provinces to deliver. For that I should just say thank you, and sit down. But I think there are other things that we need to mention so as to teach those hard nuts, so that they can understand in order to crack.

I would also like to talk about my leaders. The reason that the ANC was formed in 1912, was because it was after the Anglo-Boer War. In 1948, when the NP put a stamp on the apartheid regime to be followed, creating their own agents, the people of South Africa gathered in 1955 to put a counter action in place, and they said: the people shall govern, not the individual. That is the Freedom Charter.

The ANC adopted it in 1956 as a working document, which we are celebrating on 26 June this year. That is the reason why we are saying the Freedom Charter is a living document. Even the DA must accept that. Whether they like it or not, it is a living document. [Interjections.] When that was adopted they created what we called a Black Book to give the ANC problems, namely the VLA. We are working on correcting all those evil things of the VLA today. Minister, I must tell you that we have a town there called Botshabelo, where they dumped everybody. There was no work and no industries. But let me come back to my speech of today.

We take this opportunity to congratulate the hon Minister on having charted the way towards housing the nation. It gives us a sense of pride to realise that her speech demonstrates that the wishes of the people through the Freedom Charter, when they said, “There shall be houses, safety and security”, were realistic. Hon Minister, your budget speech clearly reflects the practicality and the higher level of human settlements, which departs from the narrow scope of houses and shelter. It is really a paradigm shift, and you must be commended for this bold step.

We take cognisance of the plight of the mushrooming shacks through the length and the breadth of our country. The conditions of most informal settlements are generally appalling and demeaning. These areas are characterised by poverty, inadequate essential services, such as social and economic amenities, makeshift shelters made out of plastics and rusty iron sheets, inadequate sanitation and water supply.

Sometimes even numbers as a means of indicating physical addresses are not to be found. Darkness of the night exposes residents to opportunistic, dangerous criminal elements. More often than not, child and women abuse abound.

During rainy seasons these houses get flooded, leaving a spate of opportunistic diseases. On windy nights, severe cold leads residents to warming themselves at open coal fires, paraffin stoves, gas stoves, and so on, which become very dangerous when it comes to setting shacks alight. Serious burns and death may result.

It is only the effective roll-out of the comprehensive housing plan that can help change these squalid conditions for the better. For its implementation to be successful, collaboration between the different spheres of government, in partnership with communities and the private sector, will go a long way towards making a positive impact. Municipalities must enforce the PIE Act and simultaneously identify suitable land, install soft and hard infrastructure, and then make allocations to citizens in need of sites timeously to avoid land invasion.

Communities, on the other hand, must refrain from invading any open space they lay their eyes on, because open spaces, besides being significant for parks and playgrounds, may be earmarked for much needed social or economic amenities. Through the comprehensive housing plan existing houses with serious defects will be corrected, funds permitting. Contractors must take full responsibility regarding the products they produce.

Beneficiaries must, on the other hand, maintain their properties to add value thereto. The NHRBC must champion the implementation of these elements. Hon Minister, we are also proud to know that, through this comprehensive housing plan, we are going to empower local municipalities to compile the housing sections in preparation for effective forward planning. Forward planning is critical to smooth and sustainable housing delivery.

Though the housing demand outstrips the housing supply, when one weighs the available funds against the ever-increasing housing backlog, forward planning will bring certainty to both local municipalities and prospective beneficiaries. Developers will also be relieved to know upfront how many units will be allocated to which areas for them to make arrangements in preparation for the commencement of construction.

Then development processes can also be fast-tracked and effectively monitored. Following from the housing section, compiled by the local municipalities, spatial integration development will be amenable to change, thus curbing the continuous urban sprawl. In the fullness of time this control will ensure that human settlements reflect nonracial communities, rather than the continued apartheid spatial distortion we have been trapped in for the first decade of the democratic dispensation. There is a need to rearrange spatial planning.

Housing sector plans will also help empower local municipalities in comprehending their own weaknesses, whether in terms of human resource planning, organising, or policy interpretation and understanding. They can then plan around closing identified gaps. Having closed the gaps, local municipalities will then be able to apply for accreditation to administer some housing programmes.

Those beneficiaries who have for the past decade been trapped in what is referred to as a “black hole” - because they earn more than the required qualification bracket, but are too poor to be credited worthy for financial institutions to lend them enough funds to purchase or build houses they can afford - can now obtain some assistance in terms of housing subsidies with the introduction of the new band or bracket, from the R3 500 combined household income to R7 000 combined household income. That is a great thing, Minister, that you mentioned today that touches my heart, and I really applaud you for that. Collapsing previous housing subsidy bands is more than significant.

Hon Minister, the focus of Farm Worker Housing Programme comes handy, especially to the most vulnerable section of the society, because they are in the remote areas where they are not easily accessible. Most of them live in squalor and abject poverty. Though in essence they are in a precarious situation, they can at least from now on choose whether to continue to stay on the farms where they are working, or stay elsewhere and commute to work. They have a choice as to whether they want to separate the point of production from the point of reproduction. It is important to note that they also must enjoy the fruits of democracy.

The introduction of the medium-density social housing programme crowns it all, because it is a flexible tool that can make short-term social impact. For example, the problem of the transient section of communities who find job opportunities in various areas and keep on migrating in accordance with available job opportunities do not necessarily require fixed places of abode, especially the young and the mobile. Their housing needs can be addressed through this programme, because they reside temporarily in a place and move on.

Rental and/or rent-to-buy, is a robust programme in the inner city or town, and will maximise the use of space and infrastructure. Mixed land uses can also be easily explored through this programme. This situation can also largely encourage saving schemes in housing delivery. Ethnic and class differentiation can also be minimised by the effective use of the medium- density social housing element of the comprehensive housing plan.

Viable communities can only be achieved by focusing not only on houses per se, but also on creating social and economic amenities. We are grateful to note that these amenities, ranging from halls, integrated community centres, taxi ranks, clinics, and so on, can now be provided to complement shelter. [Time expired.]

Ms H MATLANYANE: Comrade Chairperson, Comrade Minister, comrades, compatriots and hon members, I would like to dedicate my speech to the late Comrade Frans Mhlala, our Chief Whip in Limpopo province. “There shall be housing, security and comfort for all.” At the swearing in of the first democratically elected government in South Africa, our former President, Nelson Mandela, announced that the new government would deliver, during the first five years, one million houses. This was a big challenge, not only because of the enormous size of the housing backlog and the complicated, bureaucratic, administrative, financial and institutional framework inherited from the previous government. This demanded that new institutions be formed to monitor the delivery of houses throughout the country.

While we are celebrating 50 years of the Freedom Charter, we also need to look at the institutions we have created to assist government departments in the delivery of services in order to see whether they are doing the right thing or not. This document defines the hopes and aspirations of this nation. It is almost 11 years to the day that we had our new freedom delivered to us as a nation. With this came the responsibility of serving a nation, a responsibility that demanded of us to effectively use the resources of this country to meet the aspirations of all the people.

It is sad to realise that persons who have sacrificed their lives are no longer with us today. Many of these persons are liberation giants, such as Mark Shope, Florence Matjeke, Lillian Mgoyi, Matthew Ngoniwe, Sparrow Mhlawuli, Martha Motsuenyane, and Comrade Frans Mhlala. The list is endless.

Our people waited for 300 years for a government to listen to them. For 100 years we strove for a government of the people, by the people. Over the past 10 years, we have committed ourselves to construct one million decent houses for our people throughout the country, thus again supporting the principle of the Freedom Charter that declares, “There shall be houses, security and comfort for all”.

Not all is bad, because the ANC-led government has delivered on its promises. I will just name a few provinces to illustrate this promise. The housing institutions are playing a pivotal role in the implementation of housing. The role played by the National Homebuilders Registration Council is critical to the delivery of houses. This institution has registered 6 845 homebuilders in 2003, and the number is growing. Through this programme, 41 580 homes were recorded in 2002.

Despite the mistakes, Limpopo alone, as part of its target, has delivered approximately 200 000 houses. Some of the projects had to be stopped, because they didn’t deliver the quality of housing our people needed. The National Housing Finance Corporation is also playing a role in making sure that people at the lowest possible income levels are able to afford credit on a sustainable and commercial basis.

This institution was appointed to implement the Presidential pilot project on rental housing, of which the first phase is in various stages. The first pilot project for Gauteng was launched in Fochville by President Thabo Mbeki in 2002. These institutions are contributing positively towards the housing backlog we have inherited in our country. We will continue with our oversight work to stop all projects that are not delivering quality to our people. The fly-by-night contractors will be dealt with accordingly.

We have an undisputed mandate from the electorate, who came in large numbers to the voting stations last year. It is our duty and responsibility to speak on behalf of the electorate. While government continues to increase resources channelled to local government for accelerated of delivery, the challenge remains the capacity of the municipalities to utilise those resources.

At this level, some contractors still see an opportunity to enrich themselves at the expense of the poor. We will not sit back and watch our people being deprived of their dignity. We urge our people to be patient. We are doing so, because it will not take 11 years to undo the housing backlog. This journey we have travelled thus far gives us confidence that we will reach our goal of a society that cares.

The Rural Housing Loan Fund has, since its inception, provided more than 45 000 loans to rural borrowers for incremental and home improvements. This alone means that this institution has had a significant impact on rural areas. It is in the spirit of fighting the frontiers of poverty and improving the living conditions of the poorest of the poor. It is proper for provinces to follow up on those housing contractors who have built houses of poor quality, of which some are collapsing, to rectify those mistakes. It is also imperative to blacklist such contractors, because they are wasting resources we do not have.

Today, South Africa is a democratic country with a government based on the will of all the people. The change that happened 10 years ago was a result of the struggle and sacrifice by the ANC. It was change that created an opportunity for us to chart our future together. We will fight corruption, as the ANC, from all angles. A system has been put in place to expose and punish corruption, both at government level and in the private sector. Government institutions are not immune from corruption and there will be no exceptions.

Quality is what is guiding the delivery of services, hence our election manifesto in 2004. We promised to build more subsidised houses, introduce medium-density housing closer to the people’s places of work and provide those who have as yet not received such housing with serviced stands for more decent living. The ANC-led government’s housing delivery will always be measured by the efforts we put into pushing back the frontiers of poverty and expanding access to a better life for all.

Comrade Minister, our commitment in this Budget Vote is to build quality homes and help in the building of thriving communities, while at the same time trying to turn around the apartheid spatial development pattern that we inherited. The ANC supports the Budget Vote. Thank you. [Applause.]

Mr T JEEBODH (KwaZulu-Natal): Chairperson, hon Minister, hon members and NCOP colleagues, it gives me great pleasure to speak on behalf of my province KwaZulu-Natal in this hon House today. We are 11 years into the new democracy, and since 1994 the delivery of houses has remained a cornerstone of social delivery.

Since the first democratic government, led by His Excellency ex-President Mandela, the millions totalling 80% of South Africa’s population who were disenfranchised were brought into the net. It seemed a very daunting task. However, the delivery of 1,74 million subsidised houses has taken place.

My very own experience still haunts me till this day. The first time I came to Cape Town in 1998, I happened to be in the same bus as the NP stalwart, Mr Thinus Volker, who sat next to me and remarked that the squatters seemed to be increasing between the airport and Cape Town. My response was that this was the NP’s legacy to keep the people of colour chained to poverty, underdevelopment and neglect, and now the chickens have come home to roost.

With this example you can only realise the enormity of the task. However, this ANC-led government has met the challenges and continues to deliver. But due to urbanisation the demand out-strips supply, thus making communities rebellious and demand quicker delivery. A classic case is the Nelson Mandela Metropole. I am pleased to note that the hon Minister has already engaged with the embattled mayor and his council. The people still have confidence in this government and we dare not let them down.

Risks compiled at council level always seem to be the tool of unscrupulous politicians. It is outrageous and criminal for councillors to use housing lists to deny people on the grounds of party and political allegiances. It has been the norm in many rural councils, and corruption is a cancer that must be removed. It is also pleasing to note that the hon Minister has instituted an order to unwrap this.

We as KwaZulu-Natal approve this budget, but with some provisos. Since April 2004 property prices in the two major towns, Durban and Pietermaritzburg, have risen by between 22% and 40%. It is not hearsay but a fact. Is this not displaying the confidence of the private sector, putting its confidence in a government led by the ANC for the first time since 1994, and now being led very ably by the hon Sbu Ndebele?

We want to take cognisance of the provincial allocations, and here I am betting for my province. KwaZulu-Natal is the most populous province in this country. It has 28% of the people living there. I must take exception to my colleague from Gauteng because a lot of the visitors from KwaZulu- Natal go out to Gauteng and then come back again, so they are inflating your numbers to the detriment of my province. If you do your maths properly, KwaZulu-Natal only gets 15% of the housing budget. In essence, our 28% should bring us close to R1,4 billion.

Currently we are providing 22 000 units; with an increased budget we could do 38 000 units. With regard to the backlog Ethekwini alone, our metro, required 88 000 units, most of which fall into the slums clearance category. However, our budget cannot achieve that. Our total budget of R799 million has to look out for the whole of KwaZulu-Natal.

The Ethekwini housing budget alone - and this is income that they put in from their side - for this year is R920 million. Clearly, our allocation is not sufficient. Now, the Minister of KwaZulu-Natal, ably led by housing MEC Mike Mabuyakhulu, has no roll-overs, but they could clearly do a lot more with an increased allocation. One of the new accredited metros, Ethekwini, is on target to meet its slum clearance programme, thereby gaining recognition by the UN as one of the cities used as a pilot project, and its officials now sit on the UN advisory body.

In conclusion, Madam Minister, there is one issue that still lingers on – it is old business: The communities, primarily, the House of Delegates, that’s the Indian community, and the House of Representatives, the cult community, are caught in this warp – namely the discount benefit scheme of R7 500. There are many communities, particularly in KwaZulu-Natal, that have problems with nonpayment. I urge the Minister to kindly look into this area and bring this matter to finality. I thank you. [Applause.]

Mr J L MAHLANGU (Mpumalanga): Chairperson, the hon Minister, colleagues, ladies and gentlemen, the Minister of Housing has set the tone for the year ahead in as far as housing delivery is concerned. In line with the President’s state of the nation address, the Minister has given us the line of march that we as servants of the people need to take as we move forward to the creation of the people-centred society we all yearn for and deserve.

The point has been made clearly that as we enter the second decade of democracy we can indeed take pride and courage that today more people enjoy better and more dignified housing. Although we can be proud of our achievements it is clear that in the second decade the challenge is going to be even bigger, as we change gear and roll out the Comprehensive Plan on Sustainable Human Settlements. This plan will be a true fulfilment of the Freedom Charter, as we deal with the informal settlements, urban renewal and rural housing development.

In Mpumalanga, we have identified the following municipalities as the three pilot projects that will deal with Spatial Restructuring and Sustainable Human Settlements: Emalahleni, and we welcome the announcement by the Minister that it will be accredited for housing provision, Mkhondo, as well as Mbombela.

In Emalahleni we will be eradicating, as a start, 3 000 units; in Mkhondo, 1 500 units; and in Mbombela 3 000 units. All this will happen over the Medium-Term Expenditure Framework period. We are presently finalising the plans to beginning with the actual work.

Today, in the true spirit of those who laid down their lives in pursuit of a South Africa that belongs to all who live in it, black and white, we can plan for the future with determination.

From 31 March to 1 April this year, we held our provincial housing indaba. This gathering of all the housing stakeholders enabled us to do introspection, to evaluate our performance and then plan ahead. We needed to revisit and evaluate our programmes in terms of fulfilling the pledge that was made in the Freedom Charter that there shall be housing, security and comfort for all.

We have the commitment of all our partners in the housing sector, and I can assure you that we will roll out the comprehensive housing plan with vigour and determination.

One of the challenges facing us as a province, and I think some of the colleagues have alluded to some of the challenges they have in their respective provinces, is the backlog with regard to the provision of housing. Using the 2001 census as a baseline and a population increment of 1%, our backlog stands at 260 000. We are putting in place plans and strategies to deal with this backlog. Some of these plans include the accrediting of municipalities with capacity or potential to implement the housing programme, and assisting municipalities to establish dedicated housing units.

This initiative will assist in ensuring that housing processes between the province and municipalities are streamlined. We welcome the announcement by the Minister that Treasury has made available R50 million to build capacity.

As you might be aware, in an effort to address the issue of incomplete houses we have taken a decision as a province not to award contracts for new houses, but to go back and address the backlogs. We have done an assessment of where the trenches and incomplete houses at various stages are. In conjunction with the municipalities we have agreed on a turn-around strategy where all trenches, earth works, slabs and wall plates will be prioritised for completion by July 2005. This will ensure that we complete all unfinished houses, thereby creating space for the new housing policy. We are hoping to deliver in excess of 17 000 houses this year.

Our fieldworkers are presently in the field conducting an assessment of areas where there is a need for houses in the province. Within the next three weeks we will start developing a year plan as well as a strategy that will focus on addressing the needs of the people in our province.

We have, also in line with what the Minister indicated earlier on, directed all our municipalities to prioritise prime land closer to the work areas within our towns for integrated human settlement so that we are able to achieve a nonracial community or society.

Whilst we have had numerous interventions to assist contractors to deliver, some of our contractors did not perform to our expectations due to financial constraints. This is one of the major reasons why we have some of the incomplete projects. We are looking at rolling out bulk buying depots as some of our interventions. This model is currently running in Nkomazi, and it enables developers to obtain SABS approved building material they need, under one roof and on credit. The payment of suppliers is also made once the developer has achieved various payment milestones.

Despite the challenges, we are proud of the achievements we have made. In the past financial year, we have managed to provide in excess of 12 000 houses through the different housing instruments, including the transfer of ownership of the houses previously built for rental as well as lease purposes.

We also welcome the announcement by the Minister of the agreement entered into with the Banking Council. Indeed, as indicated, Madam Minster in your budget speech, if we work together we shall succeed, as each one of us is part of a whole, greater by far than any sum of its parts.

The Minister has commended the MECs she is working with, but I think it is just proper that I should indicate in this House that the Minister has been able to build a formidable team of housing MECs. She has done exceptionally well and I think she needs to be applauded for her leadership. [Applause.]

In conclusion, when I listened to Krumbock in his address in this House I just thought, I am glad he does not belong to Mpumalanga any more. [Laughter.] [Interjections.]

Ms J F TERBLANCHE: Chairperson, on a point of order: Is it parliamentary to call a member by his surname. I am sure the member was supposed to say, Mr Krumbock or hon Krumbock, and was not supposed to call him only by his surname.

The DEPUTY CHAIRPERSON OF COMMITTEES: No! There’s nothing wrong with that, hon member, you can sit down.

Mr J L MAHLANGU: (Mpumalanga) I am glad that he is not representing Mpumalanga, because everything he said in this debate, except for two things, had absolutely nothing to do with the debate that is taking place in this House. He actually spoiled the day. I thank you, Chairperson. [Applause.]

Mr J F VAN WYK (Northern Cape): Hon Chairperson, Madam Minister, Comrade Lindiwe, members of the NCOP, this is my maiden speech. I have made speeches in other Houses, but not in this one.

Housing in the Northern Cape province poses a number of challenges. The extent of the challenges stems from the fact that there is a sizable housing backlog in that province, a degree of impatience and desperation among the poor and the homeless. There is inadequate funding, a lack of capacity to participate in the housing process and, most importantly, improper planning related to housing delivery.

The time has therefore come for the delivery of housing in the Northern Cape to address a number of problems that resulted due to the approach to housing delivery in the past. Lessons learned from the past approach to housing were that housing delivery took place in areas that had little or no access to employment opportunities, services and other physical and social infrastructure. We are now looking at developing strategies that are appropriate, realistic, affordable and suitable for the Northern Cape.

The picture is by no means bleak. Allow me to sketch some of our past achievements in the housing process. We have, amidst the challenges, managed to achieve good delivery over the past 10 years. In May 1997 the provincial housing backlog was approximately 47 000 houses. As part of the One Million Houses in Ten Years campaign, the province has delivered 18 000 houses.

From 1994, we have managed to construct more than 30 000 houses to make it possible for 1 in every 6 households to be provided with adequate shelter. It should also be noted that during this time, 25 715 properties have been transferred to beneficiaries through the discount benefit scheme. Thus far, 242 housing projects and 39 developer housing projects have been approved in the province. This indeed proves that the ANC-led government in the Northern Cape has delivered on the Freedom Charter mandate of houses and security for all.

We wish to mention here that last year during the 16 Days of Activism campaign, we completed two houses in De Aar and Kuruman for women that had fallen prey to violence and abuse. Both these houses are fifty square meters in size. This was a partnership between the public and the private sector that has provided comfort and security to women in distress.

During the same period, we also built a house for a disabled aged beneficiary who is affectionately known as Mama Lulu. Mama Lulu’s house was destroyed by fire and she was left helpless, homeless and stranded. Due to the fact that the previous house was registered in her name, she did not qualify for a subsidy, but that didn’t stop us in the Northern Cape. Through collaboration with the private sector, the department managed to build a house for Mama Lulu by securing a sponsorship for building materials and labour from the private sector. This demonstration of public- private partnership has provided her with a house of 56 square metres, fully serviced with electricity, plus the painted internal walls and rhino board ceilings, a bath, a toilet, a basin and even a tiled floor.

The Northern Cape province wishes to congratulate our Minister, Comrade Lindiwe Sisulu, on the bold step she has taken to exempt beneficiaries that are aptly described as the poorest of the poor, earning below R1 500 per month, from making that R2 479 contribution. In the Northern Cape the department, in conjunction with financial institutions, are drafting a deposit-taking strategy for collecting of this amount for those beneficiaries with a joint monthly income of between R1 501 and R3 500.

The Northern Cape will implement the new comprehensive housing plan in 2005-

1. This will place great emphasis on the upgrading of informal settlements. Funding instruments to address the diversity of needs of people living in these areas will allow for integration and enable the building of secure communities.

The pilot project for the upgrading of the informal settlements programme will commence in Lerato Park, an informal settlement in Kimberly, which is aligned to the residential urban renewal node, as well as Ouboks in Colesburg. This programme will lead to the integration and building of homes in healthy and secure living environments where everyone will have access to basic services and social amenities such as clinics, schools, police stations and community facilities, all within the vicinity of formally built homes.

The Housing Act stipulates a new and important role for municipalities in the housing process. As the sphere of government closest to the people, and being responsible for the social and economic wellbeing of the communities within its jurisdiction, it is fitting that municipalities should be in the forefront of the housing process.

The provincial department and the Sol Plaatje Municipality thus initiated a joint venture to decentralise the housing function to the Sol Plaatje Municipality housing support centre, which is supported by a memorandum of understanding. The Sol Plaatje housing support centre is at the centre of development at local level. Therefore, it is the ideal institution to ensure that the objectives of housing development occur in practice.

Allow me to elaborate on the R79,9 million that the Northern Cape received from the national allocation for housing. This poses a great challenge for housing delivery, and it is envisaged that 3 300 houses will be delivered this year, including newly allocated houses, current running projects, but with very strong emphasis on the unblocking of block projects which my colleague, MEC Mahlangu, also referred to. A total of 1819 sites will be serviced during this process.

It is important to note that all the housing projects approved this year will be implemented according to the national Expanded Public Works Programme principle. That means that job opportunities will be maximised through the utilisation of manual labour for most of the construction processes. This will create jobs while, at the same time, providing affordable houses for the poor.

We cannot stress enough the special focus we will place on the quality of houses. This will be done through blacklisting contractors and developers who deliver bad quality houses and incomplete projects. New developers’ projects must be enrolled with the National Home Builders Registration Council. The department will employ more building inspectors and more emphasis will also be placed on capacity building at municipal level to strengthen the inspection capacity and reinforcing capacity building at contractor level.

The NHBRC and the housing department will work together on the quality of projects. This will be beneficial to the consumer, as the NHBRC will guarantee the quality of houses in line with the Consumers Protection Measures Act. Initiatives that we wish to build on in the province is that local municipalities will act as developers for the construction of subsidised houses. This is not only in line with the procurement policy, but also strengthens the involvement of municipalities in the housing process, thus establishing room for joint ownership of the process for the provincial and local government.

The number of people’s housing projects in the province increased tremendously over the past five years. The objective in the Northern Cape is to develop capacity in the province to help the community to build their own homes, drawing on the network of housing support systems for the provision of good-quality, affordable building materials and support the sole objective, being the promotion of public-private partnerships. In conclusion, we wish to mention that the Northern Cape department of housing and local government will be hosting a housing summit in July this year on integrated sustainable human settlements. The theme of the summit is: Restoring the dignity of people through integrated sustainable settlements. This will be realised through the following summit objectives: Firstly, the alignment of housing development with objectives of the Northern Cape growth and development strategy, the national spatial development perspective, and the integrated development plans of our municipalities; secondly, the provision of good quality houses in areas, closed economic opportunities and the creation of a safe and secure environment; and thirdly, raising consumer awareness regarding their roles and responsibilities as new home owners.

The summit will support the framework of a new comprehensive housing plan - following the launch of the Northern Cape provincial growth and development strategy, the municipal IDPs and the national spatial development perspective – which makes it imperative that housing be addressed more acutely in terms of intergovernmental planning. Therefore, we also welcome the upcoming intergovernmental framework Bill that is currently before the National Assembly. Efficiency in service delivery must be improved and housing development must be used to leverage both economic and social development.

In planning for housing, careful consideration should be given to the strategic objectives of government. The DEPUTY CHAIRPERSON OF COMMITTEES: Hon member, I am afraid your time has expired.

Mr J F VAN WYK: Chairperson, let me then just conclude by saying that the ANC-led government of the Northern Cape supports this budget. Minister, we are looking forward to working with you in building houses for the poor. Thank you very much. [Applause.]

Mnr N MACK: Voorsitter, ek wag vir daardie Beaufort-Wes. [Chairperson, I am waiting for that Beaufort West.]

Chairperson, hon Minister of Housing, MPs, MECs, government officials and ladies and gentlemen . . .

Minister, voor ek voortgaan met my toespraak, u het verwys na ’n oud- minister van die ou regering wat hier in die Wes-Kaap rondgevlieg het met ’n helikopter en dan sommer aangewys het waar swartmense moes bly en waar plakkershutte moes wees. Dit is hoe hulle beplan het, en ons moet dit nooit vergeet nie. Dit is hoe beplanning vir behuising gedoen is, en dit is vandag nog sigbaar. As jy vandag in ons dorpe kom, sal jy sien waar die blankes bly - die gegoede areas; jy sal sien waar ons kleurlinge bly – agter die bult; en jy sal sien van ons swartmense is maar nog steeds in plakkerskampe, want daar is nie vir hulle plek gemaak nie. Daar is nie vir hulle beplan nie, want hulle moes in die tyd van die ou regering terug tuislande toe. Hulle moes nie hier in die Wes-Kaap gewees het nie. So, dit is soos die beplanning was, en ek dink ons vergeet te gou hierdie dinge.

Ek wil ook vir die agb Krumbock sê dat dit altyd daarop neerkom dat arbeidswetgewing gekritiseer word. Arbeidswetgewing is daar om ons mense te beskerm teen uitbuiting. Voor arbeidswetgewing daar was, het ek gevoel wat uitbuiting is. My pa het sy hele lewe lank op ’n plaas gewerk. Toe hy te sterwe gekom het, is my ma en ons uitgesit. Ons moes toe na ’n dorp toe gaan en behuising gaan soek. Die plaasuitsettings vind nou nog plaas.

Ek kom van Beaufort-Wes af. Dit is ’n plattelandse gebied, en dit gebeur nou nog daar dat mense van plase afgesit word. Daardie mense gaan dan dorp toe. Dit plaas dan druk op die munisipaliteit om daardie mense te huisves.

Soos ek vandag hier kan staan en my en die ANC se volle steun toesê aan die nuwe behuisingsbegroting, doen miljoene Suid-Afrikaners dit saam met ons. Hulle doen dit, want hierdie begroting kom ooreen met ’n ideologie wat sekuriteit en gemoedsrus vir ons mense verseker, ’n ideologie wat in 1955 te Kliptown op skrif gestel is, ’n ideologie wat die DA heel waarskynlik verwerp, maar nogtans probeer hulle goedkoop politieke munt daaruit slaan. Kom ons kyk wat hierdie ideologie behels. (Translation of Afrikaans paragraphs follows.) [Minister, before I continue with my speech, you referred to an ex-Minister of the former government who flew around here in the Western Cape in a helicopter and then randomly indicated where blacks had to live and where squatter huts had to be. That is how they planned, and we must never forget that. That is how planning for housing was done, and it is still visible today. If you go to our towns today you will see where the whites live – the affluent areas; you will see where the coloureds live – behind the hill; and you will see that some of our blacks are still living in squatter camps, because no provision was made for them. No planning was done for them, because in the time of the previous government they had to go back to the homelands. They should not have been here in the Western Cape. So that is how the planning was done, and I think we forget about these things too quickly.

I also want to say to the hon Krumbock that it always boils down to labour legislation being criticised. Labour legislation is there to protect our people against exploitation. Before labour legislation was there, I felt what exploitation was. My father worked on a farm all his life. When he died, we and my mother were evicted. We then had to go to a town and look for housing. Evictions from farms are still taking place.

I come from Beaufort West. It is a rural area, and it still happens there that people are evicted from farms. Those people then go into the town. That then puts pressure on the municipality to accommodate those people.

As I stand here today and lend my and the ANC’s full support to the new housing budget, millions of South Africans are doing the same with us. They are doing it, because this budget coincides with an ideology that ensures our people of security and peace of mind, an ideology that was put in writing in Kliptown in 1955, an ideology that the DA most probably rejects, but nevertheless tries to score cheap political points from. Let us look at what this ideology involves.]

We have, with great joy, very recently entered the second decade of our freedom. During the first decade of democracy we had to make every effort to address the backlog in a range of services. As you all know very well, our efforts were directed at providing services, such as houses, at the most rapid pace possible. We all know the current landscape of our towns and cities, with the role of the new so-called RDP houses. This is the evidence of what was achieved to address the great backlogs that exist. Through these efforts many people who never before had access to their own houses became homeowners for the first time.

Initiatives took place within national and provincial policy frameworks, such as the announcement of presidential nodes in urban and rural areas within the framework of the urban renewal programme, and the Integrated Sustainable Rural Development Programme. Although great progress was made we had an opportunity to look back and assess our achievements through the 10-year reviewing process that was done by government last year, and identified areas that needed further improvement.

For the first decade of our democracy we concentrated on the quantitative role of housing. Now we need to focus on quality human settlements, very importantly, by reversing what the apartheid regime did through housing. We can breach the first and the second economies and we can heal our racially divided societies. We can empower the poor, build social capital and extend the economic opportunity through where we locate housing and how we design and build it.

We know that one of the most basic needs of human beings is shelter. The challenge of ensuring adequate shelter and services must be tackled in a comprehensive, holistic and integrated way. The goal is to create environments that provide in the physical, social and economic needs of our people; to strengthen communities and build trust and co-operation between communities and government.

The housing process is to be used to create jobs and to make the community self-reliant. We should develop social capital and not destroy it. In realising this, the national Department of Housing, in consultation with provinces, has adopted the breaking-new-ground approach with its main focus on developing integrated human settlements that are sustainable.

Minister Sisulu, the Minister of Housing, in her Budget Vote earlier this week said:

This is what our people asked of us 50 years ago when they crafted the Freedom Charter, understanding that decent houses were a prerequisite for comfort and security.

She further stated:

For those of us who have committed to the eradication of poverty, we are convinced we are on the right path and the plan we have worked out for ourselves will stand the test of history.

The challenge is now to take this process further at the municipal level, and especially also in the more rural areas of the Western Cape.

District and local municipalities are under great pressure to deliver and we are grateful that efforts are made to support municipalities to develop capacity with the assistance of the department of local government and housing. This is an example of how the different spheres of government should work together as partners to achieve joint goals.

I want to speak about presidential nodes. Much emphasis has lately been placed on the National and Provincial Spatial Development Frameworks, PSDF. The PSDF is, however, quite silent regarding the presidential nodal points, of which the central Karoo has been identified as a rural node.

Much effort has been made over the past few years to address development and there has been considerable progress in terms of service levels in the central Karoo node, with household access to basic services increasing by 30% to 55% depending on the service. The focus is therefore shifting to investment in economic development and social capital.

In a recent study done by the CSRI crime prevention centre it was found that one of the main problems or contributors to poverty and crime in Beaufort West was the high rate of alcohol abuse. I would not like to expand on this, because this alcohol abuse has a long history. It comes from the old regime, the previous government, and we are still struggling with it in this town. This town is situated on the main route between the North and the South of the country, contributing to moral decay through practices such as prostitution and substance abuse, resulting in high vulnerability for the spread of diseases such as HIV/Aids.

In Beaufort West the poverty alleviation strategy is being jointly developed by the department of social services, the Central Karoo District Municipality, the Development Bank of SA and Wesgro. This almost also forms part of the development of local economic development issues and Project Consolidation initiatives in this area. The area is known for its high unemployment levels, high levels of dependency on welfare grants and social support.

Many of our households have incomes less than R1 000 per month, low nutritional intake and limited access to basic services. Every effort is made to deliver IDPs through a consultation process with our communities. The establishment of ward committees serves as a valuable instrument to ensure community involvement and this is further supported by the services rendered by community development workers.

Although the development of IDPs were initially seen as cumbersome, some capacity has been developed over the years in understanding the value of drafting a workable plan for development of services rendered by our municipalities.

We have improved on our research and analysis for planning. We now understand our communities better. We understand the demographics such as population stages . . .

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

Mr N MACK: The ANC supports the Budget Vote.

The MINISTER OF HOUSING: Chairperson, an omission was committed earlier on when I delivered my speech. I recognised the new MEC for housing from the Free State and congratulated him on his appointment, but I did not recognise the new MEC from the Northern Cape here. The reason I did not recognise him was because he has lost so much weight since he has become a builder. [Laughter.] I didn’t see that he was in the House. Congratulations, MEC, and you are welcome to the field.

Allow me to also recognise some handsome young men out there: Mr Kennedy, who gave very freely of his time to assist us when we inaugurated our N2 programme. I am very grateful for his energy and commitment. I would also like to acknowledge somebody who was here earlier and who represents Pam Golding. He also gave us unstinting support. We are grateful for their support. I was also going to recognise the hon Gibson, who didn’t give us any support, but he has since left the room. [Laughter.]

Hon Moatshe, I am glad that I have some of my MECs here and I heard what you had to say. I am certain that they heard what you had to say. Please, allow me to paraphrase what you said, namely: “The wrath of God will descend on all who have roll-overs”. That is what hon Moatshe said. [Laughter.] I completely agree with you. So may it be.

I would like to thank the members of the committee who supported me. In particular, I would like to express my sincerest gratitude to members of the ANC for conveying the support of the ANC, especially Comrades Van Rooyen, Matlanyane and Mack. Beyond that, I listened very attentively to the hon member Krumbock and I found that he stuck to a prepared speech. He must have prepared it for a particular purpose that had absolutely nothing that I agree with or nothing to do with the debate.

I struggled to understand his concerns and what it was that had brought them to the issue of the budget, except that there was one particular issue that he did mention which might have some link to the budget. He made reference to the National Home Builders Registration Council, NHBRC, particularly in relation to the grading system. I very quickly tried to solicit a response from my department because he quoted an incident which happened sometime during the week, in which my department was dealing with the matter. My department assured me and it was also explained to the committee that, in fact, what he was talking about were suggestions from the NHBRC.

It was made clear to him that these were not part of our regulations in any way and therefore completely irrelevant for the purposes of the policies that were brought forward. [Interjections.] Please allow me to assure you, hon Krumbock, that from where I was sitting, I could see that the hon Gibson was not here to watch over you. So he doesn’t know of this disaster. [Laughter.] [Applause.] I think it is because the hon Moatshe was praying for you. You would have been in serious trouble if he were here. [Laughter.]

Please, also allow me to respond to a matter that was raised by the hon Panday - it looks like he is not here now. [Interjections.] He is here? I am glad you came back. You coined a term that I would like to immortalise in housing, and it is “fast-tracking”. This must be the pivotal point of our year ahead. I am glad that, in addition to my MECs, I have my top management here who would be charged with ensuring that we can fashion this into some kind of motto.

Hon Panday, I have prescribed Red Bull for my department in order to ensure that we can work and fast-track. Chairperson, may I confide in the House and tell hon Panday that from that Red Bull, we have had more babies in the department than we can cope with. [Laughter.] The Red Bull is on my desk over there. [Laughter.]

However, on a more serious note, the discount benefit scheme, which is a matter that was also raised by hon Sinclair over there, is a matter that we are dealing with. We are looking into this matter. It has been raised with us time and again and I have asked the department to look into it and see to it that it does find its way - in an amended format - into our regulations and policy, and therefore into the human settlement plan.

If we had not dealt with this sufficiently at any point, we apologise. It is not because this is not central to our concerns, it is probably just one of those things that, in time, we will try to ensure is brought in line with everything else. Please, do not misunderstand this. We are dealing with the matter. Thank you for understanding and we hope that you will relate this to the relevant communities in KwaZulu-Natal and Gauteng.

Regarding the issue of the Land Bank, this is the special purpose vehicle that we spoke about and we hope to establish it very soon. We are certain that we will do exactly that which you are concerned about. We will find out how much land we have and ensure that we determine whether that land is suitable for housing development or not; and, if it is, prepare the necessary land for allocation to housing development. We will be working very closely with the Department of Land Affairs and the Department of Provincial and Local Government in this matter.

Hon Sinclair said something which I thought I needed an explanation. He said: Minister, please provide our people with homes so that, and I quote: “. . . at the end of the day, people must go back to their homes and do their daily activities”. [Laughter.] On a more serious note, I was heartened to hear you speak so authoritatively about Mr Hernando de Soto. I am certain that when he does come round in July, he would be very happy to know that you are in fact reading his book. We are going to deal with the matter of the title deed that concerns you so much, because we want to ensure that whatever houses we have available can become an asset.

It is good to see that the new MECs from the Northern Cape and the Free State are so well acquainted with the issues of housing. I think we have their Chief Whip here, MEC Mahlangu, to thank for coaching them so quickly. Congratulations!

For the benefit of all those people who come from KwaZulu-Natal, my department is very, very concerned that I don’t have the wherewithal to fight traditional weapons. So, I must explain this, and they have written it down for me. Yes, indeed KwaZulu-Natal is bigger in population than Gauteng, but this is not the way that we determine the budget and they have worked it out for me. KwaZulu-Natal’s population is 9,4 million, which is 21% of the population of the country; Gauteng’s population is 8,8 million, which is 19,7% of the population.

However, the allocation formula is based on 50% housing need, 20% performance - but not the performance that the hon Sinclair was talking about - and 30% population. [Laughter.] This is how we work out our ratio. Therefore, in terms of this, you will see that the biggest component is the housing need. You will find that we are working in relation to the need and therefore in relation to the backlog. The backlog you have in Gauteng is greater than the one you have in KwaZulu-Natal. So, please understand that it is not because we don’t like people who speak isiZulu, but because these are the ratios that we have worked around for ourselves.

Finally, I would like to thank all members here who contributed positively and with relevance to the issue and to the debate. Thank you very much for the warm support I have received for my budget. I thank you. [Applause.]

Debate concluded.

The DEPUTY CHAIRPERSON OF COMMITTEES: Hon members, before I officially adjourn the House, I think it is fitting that, on behalf of all of you, I take this moment to thank the Minister for the keen interest that she has displayed in the work of this august House. We say, from time to time, that this House is unique because it makes the three spheres of government talk to one another.

We want to thank you, Minister, for the keen interest you have shown in the work of this House. We are looking forward to enhancing the relationship between your department and the House in general, and with the relevant select committee in particular, in order to forge ahead with our mandate of creating a better life for all. I think that is a unifying vision for all us, irrespective of which political parties we belong to.

The Council adjourned at 16:30. ____

            ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

ANNOUNCEMENTS

National Assembly and National Council of Provinces

1. Introduction of Bills

 (1)    The Minister of Defence


     (i)     Armaments Corporation of South Africa, Limited Amendment
             Bill [B 14 – 2005] (National Assembly – sec 75)
             [Explanatory summary of Bill and prior notice of its
             introduction published in Government Gazette No 27590 of 17
             May 2005.]


         ii) Defence Special Account Amendment Bill [B 15 – 2005]
             (National Assembly – sec 75) [Explanatory summary of Bill
             and prior notice of its introduction published in
             Government Gazette No 27590 of 17 May 2005.]


     Introduction and referral to the Portfolio Committee on Defence of
     the National Assembly, as well as referral to the Joint Tagging
     Mechanism (JTM) for classification in terms of Joint Rule 160, on
     20 May 2005.


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

1. Membership of Committees

 (1)    The following changes have been made to the membership of Joint
     Committees viz:


     Budget:
     Appointed: Mohamed, Ms F
     Discharged: Joemat, Ms R R