WEDNESDAY, 24 MAY 2006 __

                PROCEEDINGS OF THE NATIONAL ASSEMBLY

                                ____

The House met at 14:04.

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

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS –see col 000.

                         APPROPRIATION BILL

Debate on Vote No 28 — Housing:

The MINISTER OF HOUSING: Madam Speaker, I have never had the honour before of standing here to address the kind of distinguished visitors that we have today, ranging from the Deputy President of the country to the president of Shack Dwellers International, from the bold 702 to the beautiful Miss South Africa, from CEOs of banks to those who owe banks such as ourselves here which, of course, include my colleagues as well. I feel extremely privileged to stand here.

Madam Speaker, hon Members of Parliament, invited guests, ladies and gentlemen, and so we come to the beginning of the autumn of our lives - the season of mellow fruitfulness, full of promise, full of hope, conspiring with the sun on how to load and bless. We have come full circle, and as we stand here we can account for a remarkable year, one in which we were able to get to this point tested to the limit.

For the past two to three days, the media has carried gruesome stories of the plight of those who would otherwise be dependent on us for shelter. As the mercury plummets, we know fires follow shortly thereafter, and tragedy once again plays itself out on the front pages of our media, on our screens, and, as though by some evil vengeance, the gods have decided to open up the skies in the North West and in the Eastern Cape. And, again, it is the poorest of us in the informal settlements who bears the brunt of this.

We don’t need these tragedies to emphasise the urgency of the challenge we face. In a country such as ours, it should not be like this. It is at times like this that I’m convinced that we took the right decision to set a target to rid ourselves of homelessness to ensure that it will not always be like this in the future.

We gather here knowing that, owing to policies that this government is implementing, we are experiencing the country’s longest period of expansion and growth, enabling us to respond to increasing urbanisation and increasing homelessness. Through the amount of resources the government has been appropriating and spending, and ably guided by the Deputy President through Asgisa, we hope that this Vote will represent a landmark.

Our expenditure has doubled from R4,2 billion in 2003 to R9,5 billion in the 2008 financial year. This increase is remarkable indeed, but the enormity of the challenge depicted by the backlog in annual household growth still remains large and daunting, requiring from us to reach out constantly and find ways of working with the private sector and with our communities to ensure that we can shoulder this problem together. For, while we are mobilising state resources to undertake the task of providing shelter, we also have to mobilise the rest of society vigorously and constantly to take its part.

It was with a sense of real achievement and pride that we co-hosted a very successful Slum/Shack Dwellers International conference that ended at the weekend here in Cape Town, and at which we were able to forge a formal relationship with those communities whose daily lives are plagued by the elements, by insecurity and poverty.

Together we forged a new way of doing things, and we have formed a partnership built on an understanding that we, each one of us, have a responsibility towards changing the fortunes of the poor. It was a high point of our time in Housing. And the message is out there: We are in this together. We have pledged a sum of R185 million, which represents 5 000 subsidies, to the SA Federation of the Homeless.

These people have decided that they are going to call themselves Fedup – the Federation of the Urban Poor. I indicated to them that after pledging R185 million, they could not continue to call themselves Fedup. [Laughter.] We have found an ally in them that will help mobilise our beneficiary communities to understand that they have a responsibility; that they can take up arms against poverty and join the government in this crusade; and that it is, in fact, in their interest to do so. Together we can do this much faster. At the bottom we need to create and emphasise a culture of joint responsibility and, equally importantly, inculcate a culture of saving.

The conference was held close on the heels of the consummation of yet another exhilarating partnership with 702. This courtship between two unlikely partners, ourselves as government and the media, has been “going on for some time” as you would say in common parlance. We have just successfully launched a pioneering project that was a response to our challenge to build 702 houses. Between now and December, together with First National Bank, they will have built 702 houses. [Applause.]

We are an amazing nation. [Applause.] I have no doubt about that. I rediscover this fact time and again each time I experience this kind of gesture. It reaffirms my confidence in us as a people, with incredible commitment to others. Talk Radio 702 with its sister station, Cape Talk, has been extra ordinarily supportive. And the cherry on top – not literally, of course – is the support they have brought along in the form of Miss South Africa herself, a student of urban planning.

In the Budget Vote last year we indicated that we would seek to mobilise all sectors of our society around a social contract that would serve as a basis for our collective efforts. We hosted an exhilarating housing indaba held in Cape Town in September. Government and civil society – including banks and property developers – agreed to work in concert to accelerate housing delivery in order to address the housing backlog. A significant outcome of this indaba was the engagement with private developers on a quid pro quo basis for an inclusionary housing framework.

Following the indaba and in the spirit of engaging government’s delivery concerns, Sapoa; the SA Property Owners Association; the Chamber of Mines; the Banking Association of SA and the construction sector entered into negotiations with the Department of Housing, combining the goals of delivery and inclusionary housing as the ultimate aims.

This newly formed collaboration resulted in the signatories of the Social Housing Contract for Rapid Housing Delivery agreeing “to ensure that commercially driven housing development above an X amount” – the amount to be determined later – will spend Y percentage – a percentage yet to be determined – of the total project value in the housing subsidy category, details of which were to be further explored with the sectors concerned, taking cognisance of international best practice.”

We can now happily announce that we have committed ourselves to a pilot project with a private developer who, together with the bank, is willing to test this model for us in KwaZulu-Natal. This is a very important pilot project for us, because we are convinced it will show any sceptic out there that this is possible. It will also show us the limits and possibilities of what can be done. We might also use this pilot project to determine the X and Y variables.

In our interactions during the social contract conference, it became clear to us that, from the perspective of developers, we, as the government, are a major stumbling block in accelerated delivery. We have taken note of this and, together with my colleagues - the main culprit, of course, being poor Minister Van Schalkwyk - we are working on this. Minister Van Schalkwyk has recently reviewed the EIA regulations to ensure that the process can be expedited.

For our part in Housing, we have established a special chief directorate whose responsibility it is to provide support to the sector to ensure that blockages, such as those currently experienced, are unblocked. This is the extent of our commitment, because we firmly believe that we can save the private sector a great deal of the money currently lost in waiting for approval.

We hope that they, in turn, will use this percentage of the saving by ploughing it back into a mutual social responsibility, which is housing. We are hopeful that by the first quarter of next year we will be able to introduce a Bill that will be based on this social contract and the experience of inclusionary housing in other countries. In the meantime, we are open to the private sector to come on board as we determine the values of X and Y.

Having concluded our policies, we have dedicated our energies to mobilising support around ourselves. We have made significant progress in our work on this front, and we hope that for this coming year we will consolidate the relationship with two other important stakeholders – the religious sector and the NGOs which have been very supportive of our initiatives. We would like them to form a firm partnership with us with measurable goals, especially around social housing.

The other very significant sector is traditional leaders who are an essential partner for us, especially as we seek to revisit and consolidate our rural housing policy. The provision of rural housing is an important housing delivery process, and, in order to increase the scale of delivery in this sector, a review of the current subsidy mechanism has been undertaken in an attempt to establish a relevant and appropriate subsidy mechanism that will align the housing programme with the Communal Land Rights Bill.

It would be necessary to review the current rural environment and the current delivery mechanism together with various other stakeholders. We therefore seek the support of our traditional leaders in this. In this quest, we will be holding a rural housing indaba with them by the third quarter of this year. We sincerely hope they will respond positively to our overtures.

On the small, but long overdue, matter of the origination of the R52 billion, Madam Deputy President, I am happy to announce that we, the banks, and the Financial Services Council have finally reached an agreement in terms of the Memorandum of Understanding that I concluded with the banks last year. [Applause.] We are on track. The only problem we have with the Banking Association is that they’re convinced I can’t count. They seem to think that at the last count it was R40 billion; I’m very happy to settle for R40 billion. But we are on track. I called it a “small matter” because the banks and ourselves have agreed that in line with the Financial Sector Charter, we will now proceed to the second phase.

The Banking Association has committed to a substantial increase for this phase, which amount will still be determined in due course. And, of course, true to their nature, this time the banks are sticking on a number of issues and we are working on these. Finally, we have summited; we have summited the hurdle.

So what does this mean for ordinary South Africans listening out there? “What’s in this for us?” they may ask. It means that if you earn a household income of between R1 500 and R7 000 per month, you qualify for the joint assistance of the banks and ourselves, subject of course to whether your credit rating allows for that.

The department has embarked on a venture to educate the public on how they can assess whether they may qualify and, further having done that, how they may access this. I am reliably informed, in fact, that the banks have already loaned out an impressive amount. As you can imagine, this is a huge relief for me. Access to housing finance has been a huge impediment. [Applause.]

Today housing delivery is occurring in a context of an economy whose fundamentals are acclaimed to be well grounded. The “age of hope” the President speaks of is beginning to be felt in the residential market, as a result of the contribution we are all seeking to make. The inflation outlook is projected to be fairly positive, the interest rates have been sustained at low levels, the economy has begun to absorb more entrants in the labour market, with the rand-dollar exchange rate being stabilised for a long time — factors that significantly impact on the spending of some of the critical commodities constituting input cost to the basic needs of households we seek to assist.

All these factors have contributed to increased disposable household income and increased the affordability levels for access to housing for individuals. This positive economic outlook should and is being utilised by all role-players in the housing sector. I’m very happy to be informed that we have Pam Golding with us here who is also one of the people on my panel of advisers.

However, whilst beneficial to some, this environment has had the adverse effect of raising the house prices beyond the reach of low to medium-income households. So the upward trend one finds in the higher end of the market has not been reflected in the lower end of the property market in which prices, in the main, remain stagnant.

Now, what we have resolved to do to bridge this gap is ensure that we can get housing finance at scale. This will lead to wealth creation through an appreciation and unlocking of the lead capital for entrepreneurial purposes.

It is for this reason that is gives me great pleasure, again, to inform you, members, that the National Housing Finance Corporation has transformed itself to be able to finance homes for low to medium-income earners. A process has been initiated to restructure and transform the NHFC to accommodate this new mandate. The outcome of this should provide the NHFC with an implementation framework and systems that not only serve to support project finance and facilitation, but also enable the NHFC to serve low to middle-income customers in a housing bank.

In an attempt to stay abreast of technological advancements and to maximise our ability to deliver sustainable housing solutions, which deliver houses within the shortest space of time, I indicated last year to members here that we intended to establish an innovation hub for housing products. With the assistance of the National Home Builders Registration Council, the Gauteng department of housing and the City of Tshwane, which made a number of serviced stands available, this has been possible. Housing product innovators and developers were invited to demonstrate their innovative products as part of a housing product competition. This product generated considerable interest and some 20 innovative houses, incorporating alternative technologies, have been built to date.

These houses cover a broad spectrum in terms of size and cost – ranging from small units compatible with our housing subsidy to bondable houses in the larger and more expensive category. To ensure that the products are thoroughly evaluated and to test the products against housing needs, the public was invited to express its views in written surveys. Absa has offered the prize of R250 000 for the winner of this. His Royal Highness Kgosi Leruo Moletlegi, an architect by profession, served as the chairperson of our adjudication panel.

We will announce the winner of this competition at a ceremony arranged for this occasion this evening. We hope that this concept will generate and sustain innovation in the housing field. This is an exciting project, even if I have to say so myself, which will aim to bring in better quality products and a wider range of housing consumers. I invite any of you who might be driving around in Pretoria and have a spare moment to visit this in Soshanguve. [Applause.] You will see that we are poised for exciting times in this country.

My department remains committed to accelerating the delivery of quality houses and an efficient service through the National Housing Consumer Education and Training Programme. This programme was piloted in four provinces – KwaZulu-Natal, the Western Cape, Gauteng and the Free State – with more than 7 700 beneficiaries undergoing the training. I’m happy to report that we are now ready to implement the programme throughout South Africa.

On the topical issue of the N2 Gateway Project, the first phase of the project will be completed by the end of this month. As you are aware, there have been a number of delays in the completion of the project due to challenges in construction complexities of building such a huge project. The allocation of the N2 Gateway Project’s pilot units is the responsibility, in line with the memorandum of understanding we have signed, of the provincial housing department. This will be done in line with a database provided by the auditors, Nkonki PriceWaterhouse.

The allocation principle will be line with the pilot business plan that will accommodate beneficiaries, i.e. 30% backyarders from neighbouring communities, and 70% from the people of the area of that particular Joe Slovo settlement.

The province, and nobody else, will determine the date of occupation without any pressure from either the media or anyone else. Discussions are currently underway with the communities to work on the modalities of occupation, starting in June.

Minmec has decided that the second phase of the project will now be managed entirely by Thubelisha Homes, which will operate on the private sector lines, and report directly to Minmec.

Finally, I am satisfied that, despite the hiccups, the N2 Gateway Project is a success on a scale that has never been attempted in the history of housing construction in this country. [Applause.] It was commenced with ambitious timeframes, with an objective to accelerate service delivery on housing. It gave us an opportunity to implement the Breaking New Ground Policy and as a pilot project has been, for me, hugely successful.

I want to thank the people of Langa for their patience and understanding. They will not regret having allowed us to use them for the pilot project. [Applause.]

Madam Speaker, as you are aware, the National Home Builders Registration Council currently provides a warranty on government-subsidised houses for a period of five years. This warranty, however, only applies to structural defects of houses due, for instance, to poor building practice. Many, if not the majority, of our housing beneficiaries are however poor, and not able to afford insurance on their houses. This is made very evident at times like this when we have floods. It has been identified as a critical shortcoming in our quest to promote housing as an asset.

As a result, I have instructed that this matter be investigated, including whether private sector insurers are able to develop to assist particular lower-income earners in the affordable housing market so that the next time we have floods, we do know that most of these houses are insured.

Now, we come to that other critical requirement of housing, that is, land. I am very glad that we have with us here the former Minister of Agriculture and Land Affairs, who has been very instrumental in helping us get to where we are now. [Interjections.] Former, present, or current? I am not sure, Deputy President. [Interjections.] It’s the transitional Minister of Agriculture and Land Affairs.

The need for a land acquisition programme for housing arises from the context that land is a finite resource. It is further acknowledged that current inner city redevelopment programmes will not, on their own, cater for the demand for housing in well-located urban areas. It has been acknowledged by the public and private sectors that the current form of acquiring suitably located land has had an adverse effect on delivering integrated sustainable human settlements.

In view of the fact that the strategy for acquiring land has not achieved expected results, my department, working in collaboration with the Department of Land Affairs, has put together a framework for a special purpose vehicle for land as a new strategy to facilitate the speedy release of sustainable land for housing purposes.

As indicated in my budget speech last year, Servcon has completed its mandate. We will be approaching Cabinet with a request to transform it into this special purpose vehicle for the purpose of acquiring land.

The public will have been informed that Cabinet, a few weeks ago, had given its consent to the disposal of land by state-owned enterprises under the Department of Public Enterprises. I can now inform you that Housing is the major beneficiary of this move. For this I am extremely grateful to the Minister of Public Enterprises. [Applause.]

We are now acquiring suitable state land in the hands of the Department of Public Works. The late Minister Stella Sigcau worked tirelessly in her last month in office to ensure that such land as we identified as suitable can be transferred to Housing through the special purpose vehicle, and for this I am extremely grateful to Minister Stella Sigcau. [Applause.]

During 2005, we held an intergovernmental meeting with the SA Local Government Association, and reached an agreement that municipalities would be required to adopt a moratorium on the sale of state-owned land. Through this moratorium, we will ensure that we delay the alienation of municipal- owned land assets with a view to meet the sustainability requirements of integrated development.

We note and congratulate the many municipalities that have passed council resolutions to freeze the sale of municipal-owned land. We must appeal to the remainder of municipalities to act responsibly by delaying the sale of land assets, and prioritise housing development that supports our vision of a truly integrated human settlement around this country.

The MECs will ensure further consideration of the moratorium on the sale of land by municipalities and, together with the Premiers, I am hoping that they will keep a close brief on this.

The Department of Housing has undertaken a number of initiatives to provide support to small housing enterprises. Madam Deputy President, you will be pleased to hear that we have a framework for emerging contractor support that has been developed after extensive consultation. Flowing from this framework of support, we have put aside an amount of R10 million through the NHBRC to develop a pool of housing entrepreneurs who will enhance the delivery of low-cost housing. The initial fund of R10 million has been approved and tenders for the Construction Education and Training Authority accredited service have been put out.

Furthermore, the NHBRC has committed R7 million to the training of the National Youth Service Project. The project aims to support nation-building through involving young people in the delivery of crucial government services such as housing.

To improve the access of women contractors to housing, the Department of Housing has ring-fenced 30% of its allocation to provinces to ensure that this is given to projects that are undertaken by female contractors. During 2005, provincial government departments allocated a total of R1,9 billion countrywide to emerging female contractors in this sector.

Finally, having been rushed for time, I would like to say that the present has the responsibility to fulfil the promise of fundamental palpable change in our lifetime. I believe we can achieve this. When the history of this period is written, this government and its achievements will be writ large. By then, most of us here perhaps will have retired, giving us the advantage of distance and will, I hope, be graceful enough to acknowledge that we did indeed record remarkable achievements.

We have committed ourselves to removing all those blockages that impede progress, most of them sadly our own creation. We are building communities. I cannot imagine that anyone would have chosen for themselves a more onerous challenge. But, it’s a challenge which, if we succeed, will lead to the society we dream of, with a new culture forged out of shared experiences. Perhaps one day, perhaps one day, we can talk of a national community, which as you all know, does not exist presently. We have the opportunity, through human settlements integrated in the way that we plan to, to create this national community.

What greater transformation can we hope for of our society? I challenge you to find a greater way in which we could transform our society than to create a truly national community.

Each one of us must be willing to actively participate in this. I believe the rich have a responsibility and I have consistently called out to them to come and assist. However, very importantly, the poor have a responsibility too. If each were to give, our national community is at hand.

The challenge has invigorated me because I have been called upon to rise to the challenge. The challenge is upon us, and we are all called upon to rise to that. I believe we are poised to rise to the challenge, because it is a challenge that we can meet. I thank you all. [Applause.]

The SPEAKER: Order! Before I call upon the next speaker, it has been brought to my attention that we have visitors on the gallery in the form of a delegation from the parliament of Sweden. [Applause.] It looks like they might have left the gallery. I hope the message will reach them that the House did welcome the delegation. We hope they will have a meaningful time in South Africa.

Mrs Z A KOTA: Madam Speaker, Acting President, Ministers, comrades, colleagues and honoured guests, I greet you during this Housing debate. Allow me to congratulate Minister Lulu Xingwana on her appointment as Minister for Agriculture and Land Affairs. [Applause.] We welcome you to Housing and Land Affairs and we thank the outgoing Minister for the support we as the portfolio committee have received.

Allow me, in this 30th anniversary year of 16 June 1976, to dedicate my speech to the class of 1976 and to those who fell during Umbumbumbu. Among these is Xolile Mosie, a Form 2 student at Langa High and boxer from Harlem Boys, who fell on 11 August 1976. He was the first victim of the 1976 uprising in the Western Cape. I thank our parents, our teachers and community leaders who were a source of support and inspiration during those difficult days. It in indeed those sacrifices, among others, that made South Africa what it is today.

Somlomo, ndivumele ndigabule izigcawu, ndikhumbule amatshantliziyo ezo mini afana noNoshumi Mbeyiya, oo’ta Zakes nabanye abalandulelayo eli. [Speaker, let me make an introductory note and remind you about heroes and heroines of those days like Noshumi Mbeyiya, Mr Zakes and those who passed away.]

In their memory we shall strive to ensure that there are houses, security and comfort.

At this point I want to welcome the new Director-General of Housing, Mr William Kotsoane, and his team. We are looking forward to working with you, sir.

Minister, many good things have happened since you brought positive energy to the housing market, building on the firm foundation laid by your predecessors. Your turnaround strategy is beginning to bear fruit.

More and more people have the opportunity to improve their lives, to become educated and acquire skills, and to help build better quality houses, as demonstrated at N2 Gateway and the Innovation Hub by the National Home Builders Registration Council and Absa, through your leadership.

During the public hearings it became clear to us that the Department of Housing has managed to do away with underspending, with only one province, the Free State, spending only 75% of its budget. We urge you, Minister, to prioritise this province. It does need attention. The director-general has agreed to engage with the province and the MEC is aware of this.

The Portfolio Committee on Housing made an evaluation of what has been done by the committee to achieve our goals. Our role as a committee is to monitor and evaluate whether the government gets value for money during the implementation of government policies by the executive, for example that 94% of the Housing budget is transferred to provinces as conditional grants.

At this point, I want to thank the MECs who came to the public hearings. They are hon members Nomvula Mokonyane from Gauteng, Boeboe van Wyk from the Northern Cape, Sam Kwelita from the Eastern Cape, Joe Mafereka from the Free State and Maite Nkoane-Shabane from Limpopo. They have helped the committee to understand the success stories and challenges faced by the provinces.

Conditional grants are aimed at improving the lives of our people in the provinces. Do they lead to the desired results and do they add value to millions who are in dire need of housing, especially those who qualify for the full government subsidy? What is the quality of housing units provided? Do they adhere to norms and standards? Does it lead to a better life for beneficiaries as required by ANC government policies? These are some of the questions the Portfolio Committee on Housing examined when it had a strategy session at Club Mykonos in April this year. We did our examination guided by the President’s state of the nation address, the Breaking New Ground strategy of the Minister of Housing and the key performance indicators of the department.

Let me remind this House what the Breaking New Ground strategy seeks to achieve. The strategy is aimed at integrating and building secure communities. It has done so by closing three subsidy bands into the following: Firstly, the hard-core poor earning between zero and R1 500; and secondly, the poor earning between R1 500 and R3 500. Both these categories are entitled to full subsidies, the only difference being that the first is not expected to contribute while the second is expected to contribute at least R2 479, but sweat equity is taken into account for those who cannot afford to give money, and women-headed households and people with disabilities are not expected to contribute. A new subsidy band has been created targeting the middle-income level, those earning between R3 500 and R7 000, whom the government will assist to obtain mortgage finance.

I have just heard the Minister saying that those who are blacklisted or not creditworthy will not be part of this process. We have discussed this with the Chief Whip. We believe that these are the people who need it most. You must remember many of the people who are in that category are the people who are hard hit, particularly by micro finance, because the interest rate is very high. So it is critical. Let us work with the banks and see to what extent we can assist this category of our people, taking into account that the principle is that people must pay. It is critical that we push that kind of aspect, but at the same time let us assist our people who find themselves in those difficult conditions.

The government will help in terms of credit-linked subsidies. Municipalities have nothing to do with this, Minister. Will you please ask Mayor Helen Zille of Cape Town to stay away from this? Housing is a concurrent function between national and provincial government. [Interjections.] Bonded houses are a national issue. [Applause.] Helen Zille is a Jane-come-lately. She does not understand the issues, has no authority and no mandate; she just wants attention. [Interjections.] [Applause.] Credit-linked subsidies have to be worked out with provinces, and the Banking Council must really explain what is happening, Minister. [Interjections.] Just keep quiet.

One other element of the Breaking New Ground strategy is that of redefining the role of government in the housing market to broaden its mandate to include all residential property. Hence, we welcome what the state of the nation address alluded to on this matter:

… that the Minister for Agriculture and Land Affairs will, during this period, 2006, review the willing-buyer, willing-seller policy, and review the land acquisition models and possible manipulation of land prices, and regulate conditions under which foreigners buy land. This will be done in line with international best practices.

I know Lulu will do this.

The President went further to say that:

During the course of this year, in addition to accelerating the expansion of housing stock to address the needs of the homeless, we will take concrete steps to ensure that housing development contributes to eliminating the duality of living spaces inherited from apartheid. [Interjections.]

Already the Ministry of Housing and Local Government have reached an agreement on the sale of land for housing. Through this agreement, municipalities will allocate land close to the economic centres for housing development for middle and lower-income people.

In addition, as part of the effort to help the poor to access housing finance, the National Housing Finance Corporation will be transformed into a housing corporation that will provide finance to the poor and middle- income groups.

In this context we expect our Minister of Housing …

This has been done, Minister. You have already said this and I won’t go back to it.

This is central to the attainment of a society free of shack settlements in which all our people enjoy decent housing. In this context I should also mention that government has decided that we must completely eradicate “bucket toilets” from established settlements by the end of 2007.

It is critical that the Department of Housing, therefore, works with the Department of Water Affairs on this project. Hence, I also welcome the Minister of Water Affairs and Forestry, Comrade Lindiwe Hendricks. We are going to work with you in Housing.

This is clear testimony that the provision of housing has a positive spin- off, especially when stakeholders stick to the agreement and perform as expected, and deliver on time on their mandates. Each house built brings about a better life to the beneficiary. It brings about running water and sanitation, leads to the elimination of the bucket system, brings electricity and, in many instances, creates jobs.

Izindlu xa zisakhiwa ngolu hlobo urhulumente olawulwa nguKhongolozi afuna ngalo, zenza umahluko omkhulu eluntwini, kwaye zenza impilo yabantu ibe ngcono kakhulu. Zikhona nangoku izindlu ezisemgangathweni ofunwa ngulo rhulumente we-ANC, esinethemba lokuba abaphathiswa bamaphondo, oosodolophu namagosa aphetheyo kwisebe lezezindlu aya kuzama ngako konke anako ukwenza ukuba sifike kweli nqanaba lokwakhela abantu izindlu ezisemgangathweni.

Kufuneka sikhumbule kananjalo ukuba ulwakhiwo lwezindlu lugweba indlala, ludala amathuba emisebenzi, luzisa amanzi, izindlu zangasese kwanazo zonke ezinye izinto, ibe luchulumanco kwabo bafumana izitshixo zokuvula izindlu. Urhulumente kaKhongolozi ufezekise amaphupha aphaya kuMqulu Wenkululeko. Inye ke into lo rhulumente ayicelayo, kukuba wonke ubani asebenzisane nabahlali, oosomashishini kunye norhulumente, ukwenzela ukuba impilo yabantu basekhaya ibe ngcono. Masibhinqe omfutshane sixele oomama bowe-1956 ePitoli, ababesiya kuStrydom.

Niya kundixolela ngoba andifuni kuba yinxalenye yoomama abathi inkululeko yaqala e-Beijing. Inkululeko yaqala kudala, ayiqalanga nangowe 1956; iqale phaya — niyayazi kaloku — kwiminyaka yowe-1913. (Translation of isiXhosa paragraphs follows.)

[When houses are built, they are built according to the ANC-led government’s plans. These houses will make a difference to the people by making their lives better. These are high-standard houses planned by the ANC-led government, and we hope that the provincial ministers together with mayors and officials in the Department of Housing will make it possible to achieve the aim.

We must bear in mind that the building of houses will reduce poverty, create employment, provide water, sanitary facilities and the like, and make those who receive keys for the houses joyous. The ANC-led government has fulfilled the dreams embraced in the Freedom Charter.

There is only one appeal from government, that there must be co-operation between communities, business people and government for a better life for our people. Let us work together effortlessly like the women who marched to Pretoria in 1956 to meet Strydom.

You will pardon me, as I do not want to be one of those women who think that freedom started in Beijing. Freedom started long ago before 1956, it started around 1913, and you know that.]

For the Department of Housing to deliver much faster on its mandate, it needs the co-operation of other departments. The Minister has alluded to the issue of environmental impact analyses, which are a stumbling block on the value chain in terms of the delivery of housing. I am glad that you have interacted with Minister Van Schalkwyk on this matter to fast-track housing delivery.

Abantu abebekhona emngcwabeni kamama uStella Sigcau, inkosazana, baya kumkhumbula ngexa uTat’ uFeni wayesithi inkqubo yoHlolo lweFuthe loPhuhliso kwiNdalo, i-Environmental Impact Assessment, ithatha iminyaka eli-15, zilibazisa. Siyalubona ubaxo apho, kodwa umyalezo uvakele wona, wokuba i- EIA ngokwenene ziya lubambezela uphuhliso, ngoba ukuze iprojeki nganye iphunyezwe kufuneka kuphunyezwe i-EIA kuqala. (Translation of isiXhosa paragraph follows.)

[People who were present at hon Stella Sigcau’s funeral, the princess, will remember what Mr Feni said about the delays created by environmental impact assessments that can take 15 years. There is an exaggeration on that point, but the message that was sent out is that there is a delay in development because projects depend on the report from the EIA first.]

For any project to be approved, an EIA must first be approved.

Secondly, the availability of land is a challenge, particularly well- located land. People who moved from Langa to Delft are still waiting for houses. This is the task of Helen Zille, to really get the land for these people in Delft, so that houses can be built for people. [Applause.]

Nanko ke umsebenzi wakhe. [This is your job.]

I want to commend the Minister for her work within the UN Habitat agenda. Your leadership in the African Ministerial Conference on Housing and Urban Development and co-hosting of the Slum/Shack Dwellers International Conference at the Cape Town International Convention Centre is highly commended. In particular, your pledge of R185 million for the People’s Housing Process is highly commendable. [Applause.]

It is important to note that South Africa is not far from meeting the Millennium Development Goals, which target a halving of key indicators by

1. The capital injection of R40 billion by the banks and the labour- intensive method in housing show that housing is a major contributor to economic growth in this country.

I want to thank the National Home Builders Registration Council for hosting the portfolio committee on Monday. We have learnt a lot from the Innovative Hub. We are excited about these innovations. They add value to the housing market, particularly as far as the size of the Breaking New Ground houses is concerned. We have now moved away from 30 square meters to 45 square meters. In other provinces they do even more than 45 square meters. [Applause.]

I would like to thank the Acting Mayor of Modimole and members of the Department of Housing for hosting us. There is visible progress on the ground. There are women contractors who are building both low-cost and middle-income houses. Some of them have entered the competition – Frances Albert is one of them.

Let us celebrate these achievements in housing and look forward to managing the challenges, but it is clear that there is work done and that there is work in progress. I thank members of the portfolio committee for the teamwork they have shown in taking up housing issues. Together we can make things happen. Today is indeed better than yesterday, and tomorrow will be better than today. I support this Budget Vote. I thank you. [Applause.]

Mr A C STEYN: Madam Speaker, hon Minister, hon members and distinguished guests, to live without adequate housing, or shelter or without a home, is to exist without security and a sense of pride.

The number of people without housing, the destitute, is growing exponentially each year and yet, each year, this Ministry is delivering less than the previous year. The very reason this department exists is to assist the poorest of the poor, who will never, by and of themselves, obtain adequate shelter.

The Minister spoke at length about the opportunities for access to finance for those who have an income, but said very little about those who do not have an income and depend on this Ministry for housing.

It is because of their situation that they are unable to exercise the most basic freedoms, including choice, and it is on their behalf that I stand before this House today.

Since the dawn of our democracy some 12 years ago, the world at large looked at South Africa in awe. We set the benchmark in many ways and other developing countries looked to us to see how it was done. With exceptions, and there are many, we have done things differently, and still achieved the required results.

However, when one looks back over the last three to five years, one has to ask oneself the following questions: Has the miracle disappeared? Has the glitter faded?

I ask myself these questions because, while the Department of Housing’s website proudly announces that 1,8 million houses have been built since 1994, the Minister is on record as having acknowledged that there are numerous blocked projects across the country, dating back to 1995 or 1996.

Therefore, there must be hundreds, if not thousands, of houses linked to these incomplete projects that are counted in the 1,8 million houses delivered. Presumably also, these hundreds, if not thousands, of incomplete houses have been paid for along the way. We will only know the true miracle of housing the nation when the audit that the Minister launched in this regard has been completed. Perhaps, if more mayors like Mayor Zille take more of an active part, this picture will change. [Interjections.]

While most of the developing world now appears to be achieving more with less, we are once again bucking the trend. We are achieving less with more. The national housing budget has constantly increased over the last number of years, whilst the number of units delivered has declined.

Last year, the Finance Minister indicated that the housing budget would increase by more than R2,5 billion over the Medium-Term Expenditure Framework period starting in 2005. True to his word, this current year’s budget has increased by a massive 30% over the 2005-06 budget in nominal terms. Since the 2004-05 financial year, the department has had an increase from R4,5 billion to the current budget of R6,8 billion and the housing budget, as the Minister said, is expected to increase to almost R9,5 billion by 2008-09.

Last year, I also expressed my concern that while the budget increases significantly, the lack of capacity so readily used as an excuse for nondelivery has yet to be addressed in a significant and meaningful way. One year later, although there has been a steady increase in funds for the capacity-building subprogramme which is set to rise from R51 million in 2005-06 to R95 million in 2008-09, it is my humble opinion that this situation still exists.

Looking at the subprogrammes in this department, I am pleased to see that the unusually high increases experienced in the 2004-05 financial year has not been repeated. Expenditure on the housing development funding programme dominates this budget, which the department administers through the payments of conditional grants to provinces according to a fixed formula, and that constitutes 94% of the entire budget.

It is therefore appropriate that the increased funds are primarily allocated to that programme. However, the Financial and Fiscal Commission has identified a number of shortcomings in the current housing formula used to divide the funds between the provinces. For example, the formula is negatively biased against rural provinces, as it does not include traditional housing in the calculation of provincial backlogs. The number of homeless people is not an officially published statistic. Some of the variables used are very volatile in nature. For example, in the North-West Province, shacks in backyards varied by 233% between 1996 and 2001. Tents and caravans are another element used in the formula, varying by 184% in Gauteng, and homeless people varied by 785% in the Western Cape. I therefore urge both the National Treasury and the Minister to consider the recommendations proposed by the FFC in this regard for the 2007-08 appropriations.

It is probably safe to say that the increased budget is the result of the Minister’s new housing policy announced in 2004. This new policy, which seeks to address the continuously escalating backlog, while also tackling apartheid spatial planning, which inadvertently has been replicated when new RDP houses were built on cheap land, far from jobs and recreational and community facilities, also has the upgrading of informal settlements as a major focus. That is not only a mouthful, but also a huge task for the department. While there have been some gains, there have also been many disappointments. The department has four priorities in the new comprehensive plan referred to as “Breaking New Ground” and three strategic drivers to achieve this. I want to touch briefly on some of these drivers. Firstly, one of the drivers is to improve the national housing subsidy scheme. The Minister has been relatively successful with this. She has introduced an inflation-related annual increase to the subsidies, collapsed the subsidy bands into different income groups, and added a subsidy for the income group between R3 501 and R7 000.

In this regard, the Minister entered into a Memorandum of Understanding with the banking sector last March. However, until recently, this agreement was at a stand-off due to differences over guarantees to be supplied by government. I trust that the launch of the 702-FNB project in Cosmo City last week for this income group means that stalemate between government and the banks has now been resolved, and the Minster touched on that.

By the way, Minister, in your speech at this particular launch, you acknowledged the contribution made by Radio 702, and you did so again today, when they built three houses in Ivory Park, and again five more in Protea South in Gauteng through Habitat for Humanity last year.

When you spoke about the Kenneth Kaunda Work Project in Mamelodi some time ago, you challenged every South African to come forward and help build homes for our people. As you are aware, the standing committee accepted the challenge and participated in that project.

What you may not be aware of, because I have never heard you acknowledge it, is that the DA also rose to the challenge last year. A house, through Habitat for Humanity, was built in one week by the DA caucus of the Johannesburg Metropolitan City Council for a recipient identified by Habitat in Ivory Park, Midrand. The DA councillors were ably assisted by Members of Parliament and members of the provincial legislature from Gauteng. We are indeed in this together. Unfortunately, I have yet to hear an acknowledgement from the hon Minister for this contribution.

However, while a lot of work has been done to streamline the housing subsidy scheme, there are numerous shortcomings in so far as the approval and allocation of housing subsidies at provincial housing departments are concerned. The Minister is no doubt familiar with the Auditor-General’s finding of a performance audit, which found that over 5 000 subsidies were awarded to applicants who died before the applications were approved. Over 1 600 instances were identified where more than one subsidy was approved for the same applicant, and over 14 000 subsidies were approved for which there are no beneficiary details on the National Housing Subsidy Database, amongst others.

It is reported some R300 million may be involved in these fraudulent subsidy allocations. Are these amongst the 1,8 million houses delivered to date?

Let me quickly touch on the N2 Gateway Project. The hon Minister is on record as saying:

The main difference with the past approach will be tested in the N2 Gateway Project, which seeks to transform several large informal settlements along Cape Town’s N2 highway into new integrated settlements.

When the project was launched last year, it was said that 24 000 units would be ready for occupation by June 2005. In one week’s time, it will be June 2006, and one beneficiary is yet to find shelter from the bitter cold at the N2 Gateway Project. [Interjections.]

I fear, hon Minister, that the test has failed. These people are once again left with nothing else but hope. Thank you. [Applause.]

Mr B W DHLAMINI: Hon Speaker, hon Minister and colleagues, section 26(1) of the Constitution of South Africa of 1996 states very boldly that “Everyone has the right to have access to adequate housing.” The Constitution goes on, in subsection 2 charging the state with the responsibility to progressively realise this goal. We have to ask ourselves whether the Housing budget before us today does, in fact, enable the state to make progress towards the goal of housing for all. It is known that between 1994 and 2005, 1,8 million subsidised houses were delivered by the state. That was a remarkable achievement, but it falls far short of what is required. The backlog of houses currently stands at 2,4 million units. What is of the gravest concern is the fact that this backlog will, in 10 years from now, still exist until government funding increases dramatically.

It is also known that 11,3% of households in South Africa are informal dwellings, in other words, shacks, and that informal settlements have grown by more than 100% between 1995 and 2004. These figures paint a depressing picture of a country that is striving to improve the lives of its people, yet finds that one step forward mostly means two or three steps backward.

It is for this reason that the IFP, hon Minister, fully supports the comprehensive housing plan for the development of integrated, sustainable settlements. The Department of Housing received some R6,8 billion for this financial year. That is about 30% more than last year. The increased allocation will be taken up mostly by funding for the integrated housing and human settlement development conditional grant given to provinces and by some R600 million for the introduction of credit-linked housing.

Our concern is that there is a lack of capacity, Minister, in some provinces and local government to deliver, in other words to build enough new houses to make meaningful progress in eradicating the backlog. Clearly, the issue here is not funding but the ability to spend allocations on new projects.

The IFP is very concerned that 12 years into our democracy the Department of Housing has not established a clear funding policy for hostel development. The Public Sector Hostels Redevelopment Programme has failed – Xhamela to develop a policy that will create humane living conditions and provide affordable and sustainable housing either on a rental or ownership basis.

There are about one million people in three provinces, that is Gauteng, KwaZulu-Natal and the Western Cape, who live in rundown hostels in squalid conditions. Surely, the time has come for the Department of Housing to provide clear guidelines for funding to change these hostels into livable decent accommodation. They remain monuments of apartheid.

The IFP’s third concern relates to the provision of rental housing stock. Rental housing stock should fill the gap between those that are financially able to buy a house and those that are not. However, the current situation is that the available rental stock is so expensive to rent that the intended beneficiaries are completely unable to afford it. What the local authorities seem to have forgotten is that it is the poor people in the second economy who are looking to rent houses, simply because they are too poor to afford to buy a house and not because they are interested in owning property in the city. If rental houses are priced out of the reach of these people, what are they supposed to do? Eventually, they are forced to settle in informal areas, which partly explains the growth of informal settlements. Rental stock should be made more affordable so that the intended beneficiaries can actually benefit.

The IFP, in raising these concerns, does not mean that it is blind to the great achievement of this department in trying to fulfil its constitutional mandate of reducing poverty and improving the quality of people’s lives.

The IFP calls on the hon Minister and the department to take note of our concerns and to do more in the coming year to address the shortcomings, weaknesses and backlogs in the system so that access to housing and secure accommodation, as an integral part of government’s commitment to reducing poverty and improving the quality of lives, can be achieved. The IFP supports the Budget Vote. I thank you. [Applause.]

Ms B N DAMBUZA: Madam Speaker, hon Ministers and Deputy Ministers, hon members and distinguished guests, …

… mzi wakwaNtu, nakuwe eMbo, urhulumente okhokelwa nguKhongolose, phantsi kwesandla sohloniphekileyo uMongameli Thabo Mbeki, uthi beka ithemba ngaphambili. Sibonile kwantlandlolo ukuba bekungamampunge ukufumana urhulumente obonakalisa inkathalo kwisizwe ngokubanzi. Ibivamile into yokuba ibe liqaqobana nje elifumana ukuhoywa.

Kuthe nje ncakasana sizuza inkululeko, ngo-1994, urhulumente wabantu wakhankanya ukuba uza kwakhela abantu abangathathi ntweni izindlu mahala. Bathi oogqadambekweni, “nguNongqawuse lowo”. Bambi bathi yintsomi, siza kuphuma iimpondo. Bambi bade bathi ilanga lingawa phantsi licholwe ziintaka.

Sithini namhlanje? Sithi urhulumente wakha amakhaya, alandelise ngokwakha isizwe … (Translation of isiXhosa paragraphs follows.)

[… people of the nation and the opposition, the ANC-led government under the leadership of President Thabo Mbeki is pleading with you to have hope. In the past it was not easy to find a government that cared about the people. It was common practice for the government to care about the minorities.

When we achieved freedom in 1994, our government announced that it would provide free houses for the people in need. Those who like to involve themselves in issues that do not concern them said that this would never happen. Some said, “That is a myth and we will bear the consequences.” Others said that the sun would fall from the sky and be pecked on by birds.

What are we saying today? We say government is building homes and will be building a nation soon …]

… in order to facilitate the quality of life. In propelling such a very critical task, the state entered into a partnership with various role- players, including the housing support institutions that play a major role in the implementation of housing development.

This partnership is also guided by a series of legislative systems and policy frameworks. These agencies are managed by independent boards of directors or councils. However, they report directly to the Minister who, from time to time, reviews their mandates to ensure optimum delivery that is aligned with a new plan.

I want to discuss some of the institutions. The National Urban Reconstruction and Housing Agency, known as Nurcha, is a public entity established to become a major construction finance institution. Nurcha’s mandate is to ensure the availability of bridging finance to emerging contractors and developers undertaking contracts for development of housing, community facilities and related infrastructure within the context of promoting an integrated and sustainable human settlement. This will also include credit-linked and rental houses. The mandate of the Rural Housing Loan Fund, RHLF, is specifically to mobilise rural finance for housing from sources outside the state for lower- income families to build or improve their houses. It targets people earning between R600 and R7 500. The programme also accommodates farmers, farmworkers and emerging contractors.

National Housing Finance Corporation was established as a wholesale lender to broaden access to affordable housing finance for the lower and middle- income earners at affordable interest rates. We welcome the fact that in each revised mandate the NHFC has been awarded to be a housing bank.

Siyabulela kuwe, nkosazana, ngalo msebenzi othe wawenza. [We thank you, hon Minister, for the work well done.]

The National Home Builders Registration Council, known as NHBRC, has a motto that says: Quality control is a government priority. This institution was established in terms of the Housing Consumer Protection Measures Act of

1. The council has to, mainly, protect the interests of housing consumers, in respect of the failure of home builders to comply with their obligations. In terms of the Act, it has to further regulate the home building industry and promote ethical and technical standards in the industry.

The national housing department has extended the NHBRC warrant to the housing subsidy sector as well. It is important to note that we are excited about the innovation hub at Soshanguve that shows that brick and mortar alone cannot build houses, but there are other ways to kill a fat cat.

National youth training programmes have been observed in Limpopo and the Eastern Cape. They are running very well.

Ndicela ukuba sichazele nabanye ngento entle esiyibone eMpuma Koloni, xa besithe sandwendwela khona siyikomiti yemicimbi yesebe. Safumanisa ukuba le nkqubo bayiqhuba ngeyona ndlela yanelisayo, apho ulutsha lufumene umsebenzi wokwakha izindlu ezingama-500.

I-National Home Builders Registration Council, iSebe lezeMisebenzi yoLuntu neSebe lezaBasebenzi liyancedisa kakhulu ekubeni olu lutsha luqeqeshwe ukususela kwinqanaba lokuqala ukuya kwelesihlanu. (Translation of isiXhosa paragraphs follows.)

[When we visited the Eastern Cape as a committee from this department, we saw a beautiful sight that I should think we should mention. We established that this programme is run in a fulfilling manner where youth has a responsibility of building 500 houses.

The National Home Builders Registration Council, the Department of Public Works and the Department of Labour together helped in developing skills for youth in the field of construction from level one to level five. [Applause.]] Servcon Housing Solutions was established to assist a ring-fenced portfolio of properties and to normalise to liquidity nonperforming properties that were in a state of redundancy. As mentioned before, the Minister is in the process of reviewing the Servcon mandate so that it can be aligned with the Breaking New Ground strategy.

Thubelisha Homes is a section 21 company established as a special-purpose financial vehicle to create the right stock for Servcon’s rightsizing programme. A new mandate was received in February 2006 to undertake the construction of affordable housing projects and for the installation of engineering services. Thubelisha has also been appointed by the Department of Housing to complete the N2 Gateway Project in a period of two years.

Lastly, the Social Housing Foundation, SHF, was established to develop and build capacity, broadly for social institutions that manage social housing stock. Like other institutions, the mandate of SHF is under review by the Minister in order to bring it in line with the current plan. Further, the committee believes that the Minister will take a considered decision that will do away with the current low morale of SHF staff. Hence, there is no reason for that low morale as there is no threat to the staff as well as the institution itself.

The committee further notes that the Social Housing Foundation, the national Department of Housing and National Housing Finance Corporation accompanied the Portfolio Committee on Housing on its visit to Norway and the Netherlands to learn about how social housing is implemented. These countries have expertise in the social housing field, and we hope that we will be able to participate positively in the formulation of the forthcoming Bill on social housing.

In conclusion, the committee has observed that there is a strong need for these government agencies to embark on a massive marketing strategy so that people should access opportunities provided for their development.

Kuluntu sithi: Amasi abekw’ elangeni. Huntshu ANC! Tshotsh’ ubekho! [We say to the nation: The ball is in your court. Congratulations, ANC! Your accessibility is appreciated!]

The ANC supports the Bill.

Mr G T MADIKIZA: Madam Speaker, hon Ministers and hon members, distinguished guests, the budget before us reflects a Department of Housing far different from the department that it used to be a number of years ago. We should give credit where credit is due.

The Department of Housing today is functioning in the way that we would have wanted it to do from the outset 11 years ago. Under the leadership of the department, hundreds of thousands of housing subsidies have been approved and hundreds of thousands of housing units have been built in the past year.

In addition, and perhaps even more significant, is the success achieved in getting the provinces to spend their budgets. The positive spending rate removes one of the most frustrating aspects of service delivery in which, in the past, massive budgets did not translate into massive service delivery, but were rolled over to the following years.

These successes can be attributed to proper management and to intensive investment by the department in capacity-building. Here we have a department that has invested in capacity-building, and the fruits of its labour are there for all to see.

Having said all that, we cannot shy away from the fact that massive housing challenges remain with us. Perhaps the two biggest challenges relate to the quality of housing and the demand for formal housing.

As far as the former is concerned, the UDM must once again raise the matter of shoddy work and low quality in the many housing developments subsidised and implemented by the government. Perhaps this is an outcome of the extreme pressure that all tiers of government are under to provide housing quickly, but it remains nonetheless unacceptable that some of these buildings are of such a shockingly low quality.

The second major challenge relating to housing is the fact that the demand for formal housing continues to outstrip the supply. In this regard, we support initiatives aimed at addressing this such as simplifying the administration of the housing subsidy.

We await the results of the new social housing policy and the outcome of subsidised social and rental housing. We also hope that the department’s efforts at capacity-building and at removing blockages at municipal level will be as successful as its provincial efforts.

Finally, the corruption involved in subsidised housing remains an issue. We continue to hear in our constituencies of ever-changing housing waiting lists, or of councillors promising houses to friends and family, and of dodgy tender processes when housing construction contracts are awarded. We suggest that a single national task force is mandated to investigate all allegations across all tiers of government. Perhaps if we have a unit that specialises … [Interjections.]

The SPEAKER: Hon member, your time has expired.

Mr G T MADIKIZA: Thank you, Madam Speaker. The UDM supports the Budget Vote. [Applause.]

Mr D C MABENA: Madam Speaker, hon Ministers and Deputy Ministers, MECs present, hon members, comrades and friends …

Baba u Steyn uyadondisa, bewuye e Comores sicabange ukuthi nawubuyako uzasitjela ukuthi I I-Comores … [Mr Steyn, you are indolent. When you went to the Comores, we thought that when you came back you would tell us that the Comores …]

The Comores is the poorest country compared to South Africa. We are doing bad here in South Africa …

Ufika la uphikisa urhulumende osebenzako uyadondisa ndoda thjuguluka. Ngithokoza ukuba yingcenye yeenkhulumi kule-budget vote eqakatheke khulu ebantwini bakhethu abatlhagiswa bebagandelelwa umbuso omumbi webandlululo. Ababe nganamalungelo wokuba nendawo kanye namaphepha aqinisa ukuthi umhlaba kanye nezindlu ngezabo. Ngabe ngenza ipazamo ekulu ukungakhumbuli itja eyalwisa umbuso webandlululo ngonyaka ka 1976. Siyanikhumbula Solomon Kalusha Mahlangu, Johannes Maisha Stanza Bopape, abanengi abasaphilako nalabo abadlulako emhlabeni ngingakhohlwa nemindenabo. Somlomo siyasekela futhi sikholwa ukuthi ihlelo likangqongqotjhe wezindlu u Dr Lindiwe Sisulu lokuqeda imikhukhu eSewula Afrika ngo 2014 lizakuba yipumelelo. Ngikutjho lokhu ngoba I-housing policy yenza isisekelo esiqinileko sokwakhiwa kwezindlu. I-housing budget kuyo yoke leminyaka umbuso we ANC udosa phambili yaqiniseka ukuthi kurhatjwe ngehlelo lokulwisana nomtlhago nendlala, befuthi yatjheja ukuthi ekuthuthukisweni komnotho khulukhulu ekuphakamiseni ubujamo bokwazi nokuphila, ebantwini ebebagandelelwe umbuso webandlululo. Lombono kangqongqotjhe ungahle ufezeke kungakafiki unyaka ka 2014 ngoba amaphesente wabantu abahlala emikhukhwini akakanyuki kangako kusukela ngo 1996, inobangela walokhu kukwakhiwa kwezindlu ezinga phezu kuka 1,8 million ngurhulumende ophetheko kwanjesi. (Translation of isiNdebele paragraphs follows.)

[You come here and you criticise the government that is working. You are an indolent man who has to transform.

I am happy to be a speaker taking part in this Budget Vote, which is so important to our people who suffered under and were oppressed by the bad apartheid government. People had no rights to own land and title deeds that ensured land and houses belonged to them. I would be making a big mistake if I do not remember the youth who fought against the apartheid government in 1976. We remember you Solomon Kalusha Mahlangu, Johannes Maisha, Stanza Bopape, as well as those who are still alive and not forgetting the families of the ones who have passed away. Madam Speaker, we support the Vote, and we also believe that the programme by the Minister of Housing, Dr Lindiwe Sisulu, to eradicate shacks in South Africa by 2014 will be successful.

I’m saying this because the housing policy is laying a strong foundation for the building of houses. Through all these years by means of the housing budget, the ANC government could ensure that the programme of fighting poverty is implemented and that economic development takes place mostly by raising the level of knowledge and the standard of living of the people who were oppressed by the apartheid government. This vision by the Minister might be realised before 2014, because the percentage of people who live in shacks has not increased that much from 1996. The reason for this is the building of more than 1,8 million houses by the ruling government.]

With respect to improving gender equality in housing ownership, more than 49% of all the subsidies approved were granted to women.

The 2004 State of Cities Report shows that in South Africa’s nine largest cities, there has been a dramatic improvement in the level of service delivery, particularly in waste management, electrification and water provision.

Nami ngizoqinisela la … [And I too will hold on here …]

This is where Mayor Helen Zille should focus - service delivery, particularly to the previously disadvantaged and marginalised communities. She should desist from encroaching on the wrong terrains. [Applause.]

Abokhumbula ukuthi abantu bethu basenemivimbo yokubethwa nokugandelelwa abakakhohlwa imicabangwakhe etjhigamileko yebandlululo bayiqale ngamehlo abukhali ngiyamyelelisa kobana aziphathe kuhle akhambe buthaka angarhabi. (Translation of isiNdebele paragraph follows.)

[She must remember that our people still have the scars from the beatings and oppression they suffered. They haven’t forgotten. Her thinking is skewed by discrimination. They are keeping an eye and I’m warning her to behave well; she must walk slowly not faster.]

Alternatively, she should swallow her pride and request a special workshop from Dr Sisulu.

To those on waiting lists and in dire need of housing, including those who intend renting, provinces such as Gauteng have ensured that abandoned and old buildings are bought and the department, through the blessing of the ever-energetic MEC Nomvula Mokonyane, refurbished 44 buildings in Johannesburg Central, Germiston and Tshwane. Thus far, 16 000 people have benefited and others will be attended to sooner, halving the waiting lists.

Hostels that were a creation of mines to accommodate migrant labour, and where most criminal activities took place, are part of the Minister’s Breaking New Ground initiative. They have since been renewed as affordable rental accommodation. Our people’s dignity, which was deliberately demeaned by the erstwhile order, is gradually being restored, as these structures are now decent family units. In the Western Cape there are examples of these structures in Gugulethu, KwaKhikhi and Nyanga and there are examples in Mamelodi, Atteridgeville, Soshanguve and Ekurhuleni, which formed a partnership with Cities Alliance for better designs and international support.

Baba uDlamini, kufanele sisebenzisane uyazi ukuthi abomalume abakatjhenjthi siyokhuluma nabo laba abangafuni ukwenza ama-single hostels … [Mr Dlamini, we must work together. You know that the uncles haven’t changed. We’ll talk to those who don’t want to make single hostels …]

These are a few examples one has seen, but the Hostel Redevelopment Programme is all over South Africa. Another intervention called Community- Builder Programme, which is in line with the Expanded Public Works Programme, is doing exceptionally well.

Ngingakhohlwa itjhebiswano elihle elenziwa yi-habitat for humanity ihlangano ezijameleko esiza abantu abanganamakhaya ngemizi, ibhalise imindeni etlhaga ekutholeni amakhaya, lelihlelo lithola iinthoro ngokufuna irhelebho into ekarisako ngehlelweli kukuthi likhuthaza amavolontiya khulukhulu abomma ekwakheni izindlu, 15 yezindlu zakhiwa e Soweto ngamalanga amahlanu, 28 eMamelodi East nezinenganyana e Protea South … (Translation of isiNdebele paragraph follows.)

[I must not forget the good co-operation of Habitat for Humanity, an independent organisation, which assists people who don’t have homes, and they also register families who struggle to get homes. This programme gets funding by seeking assistance, and the good thing about this programme is that it encourages voluntary services mostly from women for building houses. Fifteen houses were built in Soweto in five days, twenty-eight in Mamelodi East and a bit more in Protea South …]

Hence, as I said at the beginning, an urban crisis can be averted and the eradication of informal settlements is a possibility before 2014 if we all genuinely put our shoulders to the wheel.

It is too early to live with joy, because only two of the seven learners have completed their studies and are placed with the National Department of Housing. Let’s hope that the 12 new scholarships awarded to candidates across the province will bear fruit.

We also urge other institutions to follow in the footsteps taken by the national Department of Housing in capacitating our youth, the girl-child in particular.

Why women and housing? Apartheid laws disproportionately affected women’s access to housing. Women’s labour in urban areas was largely limited to domestic work. Explicit laws and policies to control the mobility of African women were enacted from the 1930s. The overall result has been that many women have been denied housing rights. Where they have been able to find housing, they have been relegated to the outskirts of the economic centres and have been disadvantaged by the poor quality of their housing.

Strangely enough, their somehow inferior traditional or indigenous homes could contain, in some instances, severe weather conditions. Hence, we appeal to the Department of Housing to look into new and improved different housing typologies, and we are all proud to say that this dream has been developed.

Bomma kade niqalelwa phasi … [Women, it’s long that you’ve been looked down upon …]

You have been unsung engineers and home-builders for years whilst our fathers were labouring in big cities for a pittance, out of those mud houses, you sang the songs of our forebears, praising the Almighty to give you strength and perseverance to bear some of the great leaders who might be in this hon House and other professions in and outside the country. In short, that mud house you used to build has been improved upon into an affordable, beautiful home that can be viewed at the Innovation Hub in Soshanguve, Tshwane.

On Women’s Day in August, President Mbeki called on the women to use Women’s Month to expedite the process of empowering women and assess whether we are doing what we should to advance the objectives of the emancipation of women. He called on all South Africans to continue looking for effective ways to accelerate the empowerment of women. The construction sector is really just beginning this process. Vision and determination play a powerful role in driving change. Nami ngizoqinisela la …

Akhesithi ngabe kwenzeka ukubanyana iSewula Afrika bekulilizwe elinganambono namkha ibhudango ngo 1994 ngabesikuphi namhlanjesi na? (Translation of isiNdebele paragraphs follows.)

[And me too will hold on here …

Let us say that if South Africa was a country without a vision or a dream in 1994, where would we be now?]

This vision propelled the then 31-year-old Uitenhage-born Nosiseko Kunge to fight her way through. She understood the late Oliver Tambo’s adage, “There is no way an oppressor can liberate the oppressed.” She started her own company, N & N Construction for the Coega construction village. Other women in the industry are Ponds Mdaka who has built 150 houses in the Free State, Francis Alberts, Irene Mahlangu, Noluthando Luzipho of Motherwell and Lindiwe Stephina Moloko from Soshanguve, to mention a few.

Ngingakhohlwa … [I must not forget …]

… Women for Housing, an organisation that trains women to become builders and to run their own construction companies.

Our Minister of Housing said a 30% stake would be set aside for women in whatever contracts government entered into with construction companies. This needs aggressive monitoring as most women are deliberately sidelined and some banks think that black women have no money, cannot efficiently perform and thus will not be financed.

In conclusion, the construction industry has to heed the President’s call: Work with women in creating an environment that promotes the inclusion and advancement of women in the construction field.

Kibomma abagidinga iminyaka ematjhumamahlanu balwela amalungelwabo, ngithi asikafiki lapho siya khona ngibawa ukuthi sirorobhe imikhono kungenwe eemforweni kubhicwe idaka sakhe iSewula Afrika ne Afrika enqono kwanjesi kunqono kunayizolo, kusasa kuzakuba nqono kunanamhlanje. I ANC iyayisapota I-Budget Vote le ngiyathokoza. [Ihlombe.] (Translation of isiNdebele paragraph follows.)

[To all women who are celebrating 50 years of fighting for their rights. I say we have not arrived where we are heading to. I request we roll up our sleeves and start to work to build a better South Africa that is better than yesterday, and tomorrow it will be better than today. The ANC supports this Budget Vote. Thank you. [Applause.]]

Mr H B CUPIDO: Chairperson, hon Minister, I think one should caution the ANC, especially for the manner in which you attacked the Mayor of Cape Town. [Interjections.] You’re fighting the wrong person from this podium. I want to caution you, because you are on your way to lose the province too. [Interjections.] So make your plans and be careful! [Interjections.]

The HOUSE CHAIRPERSON (Ms C-S Botha): Order, please, hon members! Order!

Mr H B CUPIDO: Hon Minister, the provision of proper and decent housing for the homeless, those living in informal settlements as well as backyard dwellers, has become one of our most urgent priorities, and it can no longer be ignored or swept aside. To provide housing is like trying to push the ocean back; the more you deliver, the greater the need will become. The ACDP welcomes the initiatives by government, private individuals and public-private partnerships to address the housing crisis in the country. An initiative by the hon Minister to bring South African banks to play a much stronger role in the provision of low-cost, quality housing is further greatly welcomed and supported by the ACDP. [Interjections.] Don’t worry, we support the budget!

It is our belief that each family in South Africa must be housed in a manner that will restore the dignity of our people and contribute towards keeping families united and happy in a home that they can be proud to call their own. As much as the ACDP supports the call for all to work together to achieve the goal of 2,4 million dwellings by 2010, and as much as we exercise our faith that this goal is possible, we nevertheless ask that renewed attention be paid to the quality of houses that are built.

The ACDP calls upon the Minister and the Department of Housing to ensure that a monitoring system is put in place in order to secure people in their new houses for a lifetime. Houses built 30 and 40 years ago in townships are still standing with little or no defects. Houses built approximately five years ago in areas such as Vrygrond on the Cape Flats are falling apart. We would further like to emphasise the need for bedroomed houses in order to ensure privacy, both for adults and children.

Dit wil voorkom asof die kontrakteurs en hulle vakmanne… [Tyd verstreke.] [It seems as if the contractors and their artisans … [Time expired.]]

Mr S J MASANGO: Chairperson, hon Minister, fellow members …

Nabayeni abakhona la … [… and guests who are here …]

The Department of Housing has two problems: Firstly, it is failing to deliver the necessary quantity of houses to our country’s poor, and, secondly, where it has built houses it has failed to ensure that they are of the necessary quality.

According to the latest Institute of Race Relations survey, the number of houses completed or under construction by the department has systematically fallen over the past three years from 203 000 in 2002-03 to 193 000 in 2003- 04, and then to just 129 000 in 2004-05. The question is, where was Helen Zille in those five years? She’s in office just two months. [Interjections.]

Komunye nomunye unyaka urhulumende wakha izindlu ezinganeliko ze RDP. [Each year the government builds insufficient RDP houses.]

During the same period the number of people without proper housing has increased. The same survey states that from 2002 to 2003 there was a 29% increase in the number of people residing in informal settlements from 1,6 million people in 2002 to 2,1 million in 2003. In spite of the 1,8 million houses the government has built since 1994, the number of informal settlements has increased by 119% over the same period.

Ngamanye amezwi njengobana inani labantu abafuna izindlu likhula nje kodwana ukwakhiwa kwezindlu kilomnyango kuyehla. [In other words as the number of people who want houses increases, the building of houses in this department decreases.]

Further, as the government continues to fall behind its targets, and the demand for more housing increases, it is also failing to provide quality houses for South Africa’s poor. Every year the Department of Housing transfers millions of rands to the provinces for the building of RDP houses, but there is a critical difference between the actual amount transferred and the value of the final product. Increasingly, ordinary South Africans are being presented with houses that simply do not last.

I-DA ngaso soke asikhathi ithola iinghonghoyilo ezivela emphakathini mayelana nezindlu ezisebujameni obungakarisiko ezakhiwa ngurhulumende, begodu abosonkontraka basaragela phambili ngomsebenzi ongathabisiko. (Translation of isiNdebele paragraph follows.)

[The DA receives complaints all the time from communities with regard to houses that are not in good condition. The government continues to build houses of poor quality.]

As some of the projects consultants and contractors don’t submit house plans to the local municipality, no inspections are done by either the local inspectors or the National Home Builders’ Registration Council inspectors. In fact, the NHBRC has confirmed to me that they are not informed about some of the projects that are taking place in some of our country’s municipalities.

If the NHBRC doesn’t even know about the department’s plans, how on earth can the department maintain effective quality control and oversight? More to the point, how can ordinary South Africans expect a house that meets the most basic criteria? Government is not worried about what is happening at building sites on the ground. It has removed itself from the process. It is out of touch.

Lezi ngezinye zezinto ezibanga ubukhohlakali. [These are some of the things that causes corruption.]

The Department of Housing needs to come up with an effective monitoring system to ensure that we don’t repeat the same mistakes in future. Millions of South Africans need houses, but it is not good enough to simply provide a number of walls which will fall down in two years’ time. That does no-one any good. It does not ensure that it provides both quality and quantity, and it needs to do so as a matter of urgency.

Ngiyathokoza. [Thank you.]

Nksz N J NGELE: Mhlalingaphambili, Baphathiswa abakhoyo, Malungu ePalamente nabo bonke abaze kusizimasa, molweni. Makhe ndilungise nje indawana encinci endikhathazayo. Uyazi, asiyonyani into yokuba abantu abangafumani mvuzo ofanelekileyo abakhathalelwanga. Asiyonyani loo nto. Umntu asuke kwindawo yakhe aze kuphosisela abantu abaninzi kangaka. Ndiza kuyichaza loo nto kwangoku.

Siyambulela uMphathiswa wezeZindlu ngommangaliso nomzekelo awenzileyo, wokwakhela abantu bonke izindlu. Kwabanye abantu, umntu akazange alufumane ulonwabo lokuphatha isitshixo sendlu yakhe ngesandla, aqonde ukuba kutshixa yena; kuvula mna. [Kwaqhwatywa.] Namhlanje izitshixo zezindlu zisezifubeni zethu.

Izindlu ebezisakhiwa ngurhulumente wakuqala - uyazi, bayandimangaza aba bantu, inene kaMdali, xa begxeka izindlu zangoku - bezifana zonke, ungazazi nokuba useFreyistata okanye use-Transkei, njengoko yayibizwa njalo ngaphambili. Inye nje into, uza kuthi xa ufika kwezi zindlu, uphuma okanye ungena edolophini, ubone nje ukuba kuhlala abantu abamnyama apha. Luhlobo lwezindlu esasilwakhelwa ngootshomi bam aba. Namhlanje -ndiphendula lo ebesithi abantu abakhathelelwanga - uyazikhethela indlu oyifunayo ngokomvuzo wakho. [Kwaqhwatywa.] Zikhona izindlu zabantu abanomvuzo ophantsi, zikhona ezabanomvuzo ophakathi, zikwakho nezabaya. Wonke umntu ufumana indlu ngelungelo lakhe. Siyambulela urhulumente we-ANC ngoba siyazikhethela izindlu esifuna ukuhlala kuzo.

Ndikhumbula la ndlu sasiyakhelwe kudala. Thina singabantwana sasingazithandi iindwendwe, ngoba zakufika sasidinga indawo yokulala, ze silaliswe ngaphantsi kweetafile. Zizidlu ke ezo abazibona ukuba zingcono kunezi esizakhayo thina singuKhongolozi.

Uthi uMgaqo-siseko weli lizwe: “Umntu ngamnye unelungelo lokuba nendlu efanelekileyo.” Uthi wona uMqulu waMalungelo: “Kuya kubakho izindlu, ukhuseleko, nobuntofontofo.” Uthatho-nxaxheba luluntu lubaluleke kakhulu, ngakumbi koorhulumente bezekhaya. Kodwa ngenxa yeendlela zonxibelelwano kwakunye neendlela zokuhambisa ulwazi, iindaba zophuhliso lwezindlu nokuziswa kweenkonzo eluntwini okuye kwenzeka ukuba lungafikeleli eluntwini Yiyo loo nto abantu abaphikisayo besoloko bengaboni ukuba kwenzeka ntoni. Ndixelele, xa unengqondo engaboniyo, uza kubona njani ngamehlo? [Kwahlekwa.]

Enye into, kuyafuneka ukuba oomasipala babe neliso elibukhali lokujonga indlela eziphethwe ngayo ezi zindlu. Makucoceke, kulinywe imifuno, zinto ezo eziya kuba luncedo nasempilweni yomntu.

NgoMvulo lo ubuyizolo, ndikhe ndatyelela eModimolle. Sifike izindlu zisemgangathweni wokuhlala. Into endiyibonileyo, nendiyithethileyo kumnikazi mzi, kukuba yena esitiyeni sakhe utyale nje umbona. Ndithe kuye: Ewe umbona ulungile, kodwa wuxube nemifuno: izinto ezifana namakhaphetshu nezipinashi, ongazisebenzisa xa kunzima, nenyama ingekho.

Xa ufika kwidolophu entle gqitha yaseTshwane, siza kukuthatha sikuse kwindawo apho abantu bathi bafumana umhlaba wokulima, apho bathi batyale zonke iintlobo-ntlobo zemifuno namachiza, konke nje. [Uwele-wele.] Umntu owaqala loo nto ukhona apha ePalamente. Siyamcela ke urhulumente ukuba asiphe imihlatyana enjalo, ngoba iluncedo kakhulu ebantwini.

Abanye oomasipala bakunika indawo yokwakha indlu, kungakhange kwakhiwe iziseko zoluntu, apho kufuneka uqale ngokugawula imithi phambi kokuba wakhe. Akukho zindlela, kungekho nazindlu zangasese.

Intombazana ethile ithe yafumana ukuphazanyiswa iye ngasese. Kaloku endaweni enjalo awuyi ngasese emini, uya ukutshona kwelanga. Ithe ke xa isiya, yafika sele kukho abantu abayilindileyo, yaba nokuphazamiseka ke ngolo hlobo. Yiyo ke loo nto sicela urhulumente ukuba asilungiselele imihlaba phambi kokuba sakhe. Andisathethi ke ngamanzi kwiindawo ezi njalo, ngoba akude kakhulu.

Siyamcela ngoko umasipala ukuba aziqwalasele ezo ndawo. Kodwa ke, sikhona isibhambathiso esithe satyikitywa ngooceba bonke, apho bazibophelela ekubeni baza kudibana noluntu rhoqo ukuze bakwazi ukuluchazela ngezigqibo ezichaphazela ezezindlu ezithatyathwe libhunga. Sinethemba ke lokuba ngoku sifumene ooceba abakhuthalele abantu. (Translation of isiXhosa paragraphs follows.)

[Ms N J NGELE: Chairperson, hon Ministers, hon members and hon guests, I greet you. I would, from the outset, like to correct a disconcerting misconception. It is not true that we do not care about people who earn low salaries. It is important that people know that that is not true. No one should come here and lie to so many people.

I would like to congratulate the Minister of Housing for building houses for everybody. Some people never experienced the joy of holding a key in their hands. Today we keep the keys to our own houses in our bosoms. [Applause.]

I am always surprised at the people who criticise the houses that the current government builds. The previous government built houses that looked the same whether in the Free State or the former Transkei. One would take a drive around town and see the difference between those for black people and the ones for white people. Today people choose their houses according to what they can afford and according to their salaries.

There is housing for low-income, middle-income and high-income earners. That is my response to the member who said that we do not care about people. We appreciate it that the ANC-led government has afforded us such an opportunity, that of being able to make a choice about what kind of housing we want to live in. [Applause.]

I cannot forget the house we lived in when we were still young. There wasn’t enough space for all of us and we would therefore be forced to sleep under the tables when we had visitors at home. So, naturally we did not welcome visitors. Can those be better houses than the ones the ANC is building?

It is enshrined in the Constitution of this country that everyone has the right to have access to adequate housing. The Freedom Charter says that there shall be houses, security and comfort. People’s participation is very important, especially in local government. However, because of poor systems of communication, news about housing development and service delivery does not reach some people. That may be the reason the opposition does not seem to know what is happening. How, do you think, can you see with your eyes if your mind is blocked? [Laughter.]

Furthermore, municipalities need to establish monitoring systems to ensure acceptable living standards in these settlements. Inhabitants should be encouraged to keep them clean and cultivate vegetable gardens, because cleanliness and good food are good for one’s health.

On Monday I visited a place called Modimolle. Houses there are in good condition. I told the owners to plough maize. I also said that maize is good but it should be combined with other vegetables, like cabbage and spinach, that one could use during difficult times and when there is no meat available.

When you get to the beautiful city of Tshwane, we will take you to see areas where people who have received farming land produce different kinds of vegetables and herbs. The person who initiated that project is present here today. We would like to ask the government to provide us with more pieces of land because they always prove useful to people.

Other municipalities give out unserviced pieces of land and one would first have to cut down trees before starting to build. There is no infrastructure. There are no roads nor is there a sewerage system.

One day a certain girl found herself in trouble when she was attacked and raped while she had gone to relieve herself. It was at an open space and one can visit such a place only in the evening. It is for this reason that we ask the government to service our land before any building can occur. Access to water is another requirement that is a necessity and should be taken care of as matter of urgency in such areas.

We appeal to municipalities to consider these areas of concern seriously. We know about the commitment they made to constantly meet with their constituencies and inform them about decisions that are taken by councils regarding housing. We trust that we have found the kind of people who are dedicated to work for the upliftment of communities.]

The implementation of the housing sector plans in the local housing department through the IDP process and an effective public participation faces a problem due to the need to develop capacity in housing delivery programmes or to outsource development in an effective manner and monitor results.

Bureaucratic levels mainly perpetuate the challenges of public participation at both provincial and national levels. These negatively affect the administration of the development processes at the levels of government, especially the local government departments. The recommended strategy is to derive the mechanisms that will enable the omnipresence of the provincial departments to both the national and local governments. This can be improved by bringing about co-ordination and transparency among these three government spheres.

Lastly, public participation has emerged as a fundamental tenant in the promotion of local governance in fast tracking service delivery.

Since the demise of the apartheid regime in 1994, South Africa has put in place various mechanisms to ensure that the broader population is an active participant in the governance of the affairs of the country. Within the country’s evolving democratic culture, there are still challenges that are hampering the effectiveness of the country’s measure to foster public participation, including poor communication, lack of information and complicated bureaucratic processes. The ANC supports the vote. [Applause.]

Mr M T LIKOTSI: Madam Deputy Speaker, as we debate this budget vote today, millions of Africans live in squatter settlements, have no roofs over their heads and the chilling winter is penetrating deep into their mortal beings.

These are the challenges facing this department.

The PAC has observed that the more houses are built, the more the housing backlog increases. It will be a miracle to meet the objectives of the Millennium Goals of ending the shacks by 2014 when analysing the conditions of housing on the ground.

The PAC wishes to show appreciation, though, for more than a million houses built for the poorest of the Africans who if there were no government interventions, could never have realised the dream of owning a house in their life time.

The PAC further wishes to congratulate women contractors who have taken it upon themselves to get involved in housing projects in our country. We encourage all women and the youth to increase their involvement in housing construction.

The Ministry should further look into building houses in exclusively white areas and bring people nearer to their places of employment.

The department should further look into purchasing buildings or flats in towns and cities to house people as a form of diverting them from creating informal settlements in dangerous areas such as Diepsloot and others. The private sector and financial institutions must be encouraged to come to the party and invest in these types of housing schemes.

The Ministry’s initiative of human settlement against scattered and sprawling houses all over the country is most welcome.

The Breaking New Ground Programme and pilot projects such as the N2 Gateway should be supported. But government must plan ahead who the beneficiary of such projects are to prevent unnecessary delays and suspicions created thereof.

The PAC supports the Vote [Applause.]

Ms S RAJBALLY: Madam Deputy Speaker, having read the report, the MF acknowledges the major challenges the department is experiencing in provinces in housing delivery. Housing is experiencing a major backlog with demand and supply far from reaching the targets. The fact that, as reported by our hon Minister of Housing, informal settlers has increased from 1,4 million to 2,4 million expresses the volume of this challenge.

The MF does point out that low-cost houses are being erected but not enough or fast enough to meet the amount needed. However, we do acknowledge the department’s endeavours and efforts to deliver and its delivery in this regard. We do, however, feel that intensifying private-sector investment and joint endeavours with government to increase the volume of quality houses erected will greatly serve to address the challenge.

The MF applauds Talk Radio 702, First National Bank and government’s recent joint ventures in housing projects. We feel that such collective efforts need to be extended to all provinces. Properties are ridiculously expensive, making it virtually impossible for middle-income persons to afford their own homes. We are pleased that FNB is paving the way for private home ownership by making bonds available to lower and middle-income earners.

In the hon President’s state of the nation address, a clear indication to address the housing situation was made with the firm intention to eradicate the bucket system by 2007. The time has arrived to address all the shortfalls and to increase delivery, and that delivery needs to be of housing that is safe and meets standards as conditions for accommodating our homeless.

Further, housing needs to be allocated to local residents who have been victim of informal settlements from the apartheid era; and, secondly, housing allocations must be made to the backyard dwellers. We seldom hear of them but their need for proper housing is by no means less.

Furthermore, the MF is disheartened by the situation in KwaZulu-Natal. KZN is one of our most populous areas of mostly black, unemployed, informal settlers. The delivery of houses has been too slow and, when looking at the province report, concern is expressed as to why we have such a poor representation of women SMMEs trained in housing delivery. Further, at the current rate of delivery, the fear sets in that informal settlements will still be home to many 10 years from now. However, the MF chooses to pin its faith in the department to turn around the housing situation.

We further call on the private sector to assist with the situation and, while patience is difficult to ask of these informal settlers, we say, intensify transparency in the department and make public the efforts to deliver and the commitment to doing so, so that our people may know. The MF supports the budget. Thank you very much. [Applause.]

Mrs L S CHIKUNGA: Hon Madam Deputy Speaker, hon Ministers, Deputy Ministers, hon members, comrades, ladies and gentlemen, fellow South Africans, “There shall be houses, security and comfort.” This was the demand of the people as far back as 1955 when the Freedom Charter was adopted. The people’s document commits us to the ideal of a society without slums or shacks, a society living in new suburbs where all have transport, roads, social centres, etc.

The Reconstruction and Development Programme document endorses the principle that all South Africans have the right to a secure place in which to live in peace and dignity. Housing is a human right and a basic need. In line with the Freedom Charter and the RDP document, our Constitution states that everyone has the right to have access to adequate housing. Together with all South Africans, we have a responsibility to create a society that allows each person the opportunity to realise their fullest potential.

The People’s Housing Process, the PHP, is one other project that promotes the participation of beneficiaries in the building of their houses. The beneficiaries are assisted in accessing land and services, housing subsidies, establishment and facilitation grants and technical and logistical assistance. The benefit of a programme such as the People’s Housing Process includes the promotion of a culture of Vukuzenzele, which is about public active participation and the discouragement of complete dependency on government.

It also promotes the cost-effective utilisation of resources, such as building materials, and human, time and even finance resources. The programme creates employment opportunities and facilitates access to subsidies and support grants. The outcomes of PHP are that when beneficiaries are given a chance either to build houses or to organise the building of their houses, they build bigger and good quality houses for less money as they save a lot from labour. [Applause.]

We have witnessed in Mpumalanga the building of houses of up to 60 square metres by means of beneficiary contributions in the form of labour and material. Talk of people-centred development is the PHP, that is, the People’s Housing Process.

Kungenxa yazo zonke lezi zinto ezibaliwe nge-PHP ezenza ukuthi iPhalamende labantu lithi lomsebenzi kufanele uqhubeke. Siyavuma futhi ukuthi imele, njengezinqumgomo zonke, inqubomgomo ye-PHP ibukezwe njengoba umnyango wenza ukuze izosebenza kangcono. Yingakho futhi leli Phalamende lavuma ukuba kube khona uhlelo lwe-People’s Housing Partnership Trust, i-PHPT. (Translation of isiZulu paragraph follows.)

[It is as a result of the above-mentioned reasons regarding PHP that the People’s Parliament says that this work must continue. We agree that like other policies, the PHP policy must be reviewed, as the department is doing, so that it will function better. That is why this Parliament agreed on the People’s Housing Partnership Trust, the PHPT.]

… the aim of which is to create a critical mass of support and promote public awareness of the PHP by establishing a viable and sustainable framework of support for the People’s Housing Process at all levels.

Nokho akujabulisi ukusebenza kwalolu hlelo. Lokhu kufakazelwa yisivinini esingesihle ekwakhiweni kwezindlu ze-PHP. [However, we are not happy with the way this project is functioning. The slow pace at which PHP houses are being built justifies this.]

We appreciate the fact that the People’s Housing Partnership Trust, PHPT, is now being restructured, and we do expect great improvement in the delivery of PHP houses.

We understand and appreciate the fact that the issue of housing worldwide is not an easy one. Even developed states such as the US are still battling with it today, but generally there is observable lack of enthusiasm and commitment to the PHP project.

Whilst we acknowledge challenges such as the unavailability of building materials sometimes, land acquisition, infrastructure, title deeds, lack of competent support organisations, etc, we think that there is a lack of wanting to make it happen not by all but by some officials.

We, nevertheless, are of the view that the monitoring of provinces by the national office is imperative and will have a positive impact. We think that government has to speedily fight against nonperformance by officials, which is caused by negligence or an “I don’t care” attitude.

As Parliament, we will be more vigorous in exercising our oversight function. It can’t be business as usual. We cannot lack the courage to put to practical test ideals that, in our view, carry the greatest probability of advancing our people, especially the most disadvantaged section of society. For, we must constantly wonder what will happen to them if we do not act in their interests or favour.

The building of houses is labour-intensive. It combines short-term measures that provide a degree of immediate relief through employment opportunities and long-term interventions through training and skills development aimed at sustainable job creation. Housing also provides expanded social infrastructure and critical service delivery to poor communities. We all know that infrastructure lays a solid foundation for sustainable economic growth.

We seek, basically, to transform unequal power relations in society and create the conditions in which the majority of our people have skills, access and the means to control their own lives. The potential of all South Africans will be fully realised through redistributing resources, investing in infrastructure and in our people as a key resource of the reconstruction and development of our society.

Mr Lucky Dube, the deputy director in charge of the PHP in Gert Sibande District in Mpumalanga, says that for him the success of the PHP in the main has been the maximum transfer of skills by means of beneficiary training in different building skills, which they do in collaboration with other departments such as the Department of Labour. Surely, such outcomes are exciting and encouraging? They confirm the age of hope the President referred to in his state of the nation address in February this year.

We also appreciate the fact that the department is granting bursaries for housing-related courses at universities and technikons to our children. We would like to urge the department to continue with such gestures and to consider increasing the bursaries so that more learners can benefit. I will further insist that such bursaries be biased towards the rural and poor children. Music artists of our times sang as follows: Zingaba buhlungu zonke izinto emhlabeni kodwa hhayi njengokwesela indawo yokulala. [Everything can be painful, but there is nothing more painful than being homeless.] You can then guess my age.

Umbuzo okumele siwuphendule kulesi sikhathi uthi … [The question that we must answer at this juncture is …]

To what extent has housing advanced our fight to push back the frontiers of poverty? In trying to answer this, I’m arguing that the relevant policies are in place and the political will to achieve a better life for all is beyond doubt. For the majority of South Africans, the future looks bright. Our definition of hope is based on the concrete realities of the present, as reflected in the real houses we see right round the country.

I-ANC ayenzi nje izethembiso ngezindlu ngoba isidingo sezindlu ngeke saphunyeliswa izethembiso kuphela … [The ANC does not only make promises about houses, because housing needs won’t be fulfilled by promises …]

… but actual delivery of houses.

In conclusion, we are a nation at work. We hold the view that South Africans have a desire to strive toward and arrive at a shared destiny. We have a vision; we have a purpose; we are engaged; we have passion and commitment; we have love for the people of South Africa; and we are on course. The citizens of this country will play their role as part of a contract they have with the ANC. Together we will make it.

Amandla awethu! [Ihlombe.] [Power to the people! ][Applause.]]

Ms N M MDAKA: Madam Deputy Speaker, Ministers, hon members, housing development has not yet contributed positively towards the realisation of better housing for all. We are all aware that in some parts of our communities houses are being built and left unfinished. In other areas, where they are finished, they are not allocated due to political bungling. If houses are built but unallocated, people will be impatient as has been the case with the N2 Gateway and with the Joe Slovo residents. People will be tempted to disregard protocol if government is not moving as fast as expected.

Drawing on the lessons provided in the past 11 years, we cannot disregard that corruption is the number one enemy in housing delivery. We expect the Ministry to take the lead until people are allocated, and not to leave everything to the local councillors as they use this opportunity to further their political scores. The UIF supports the Budget Vote. I thank you. [Applause.]

Mr G D SCHNEEMANN: Madam Deputy Speaker, Comrade Minister, comrades and hon members, the Housing Budget Vote, which we are discussing today, will impact on the living conditions of thousands of South Africans in the coming year. It is the third budget vote debate since the 2004 national and provincial elections and the first since the local government elections of this year.

This budget builds on the commitments which the ANC made in both the 2004 and 2006 elections. In 2004, the ANC committed itself to building more subsidised housing and introducing medium-density housing closer to places of work and to provide those who have as yet not received such housing with serviced stands for a more decent living.

In the 2006 local government election, the ANC committed itself to improving the way government provides housing to ensure better quality houses closer to economic opportunities and combating corruption in the administration of waiting lists. The Freedom Charter says, and I quote:

Slums shall be demolished, and new suburbs built where all have transport, roads, lighting, playing fields, crèches and social centres.

The programme of the National Department of Housing is delivering on all of these commitments. The President indicated in the state of the nation address on 3 February this year that, and I quote:

The Ministry of Housing and the SA Local Government Association have reached an agreement on the sale of land for housing development. Through this agreement, municipalities will allocate land closer to economic centres for housing development for middle and lower income people.

The programmes of the National Department of Housing also focuses on the upgrading of informal settlements and the creation of new human settlements with the necessary infrastructure that enables people to bring up their families in comfort and security. This clearly demonstrates that the ANC delivers on the commitments it makes.

Over the past 12 years, over 1,9 million housing subsidies have been granted - impacting on the living conditions of well over six million South Africans. It is therefore important that all those who are involved in the housing delivery programme, whether they are in national, provincial or local spheres of government or whether they are developers, contractors, plumbers or electricians, are dedicated and committed to provide quality housing. This includes ensuring that housing projects are not delayed, contractors are paid on time, quality homes are built and that all available funds are used within a given financial year.

The increase in the allocations to Vote 28, Housing, over the past few years has seen an improvement in both the size and quality of the housing units being delivered. It also provides hope to the people of our country that they will be housed in adequate shelter.

In September 2004, the Comprehensive Plan for the Development of Integrated Sustainable Human Settlements was announced. A part of the strategy was aimed at changing special settlement patterns through the building of multicultural communities representing a truly nonracial society. Included in this new strategy was the upgrading of informal settlements and the development of new human settlements.

It was announced by Minister Sisulu at the time that each province would identify an informal settlement upgrade pilot project and a human settlement pilot project. Included among these pilot projects was the N2 Gateway Project here in Cape Town and Cosmo City in Gauteng.

Considerable progress has been made in Cosmo City, with some 400 hundred families having already moved into newly constructed subsidised homes. Bank financed homes are also being constructed. Cosmo City represents a shift away from just rows of houses to the creation of vibrant and sustainable communities. As we participate in this debate, tarred roads are in place, streetlights have been erected, schools are being built and parks have been established.

I have had the opportunity to speak to many of the new residents of Cosmo City, who previously lived in Zevenfontein and Riverbend. All of them, without exception, have indicated their happiness and satisfaction with their new homes and the infrastructure being provided. [Applause.]

The N2 Gateway Project here in Cape Town has made considerable progress. We need to remind ourselves where we are in terms of this project. It was announced last year in February. Just over a year later, units are complete and visible for all to see. As the Minister has announced in her speech earlier on, people will start to be allocated in the next month.

According to a presentation, which the Banking Association of South Africa made to the portfolio committee on 10 May this year, the township development process, starting from the procurement of land to the installation and hand over of services, normally takes between 30 and 59 months.

The N 2 Gateway Project has taken just 15 months to get to where it is today. [Applause.]

Deputy Speaker, through you to the Minister and her team of MECs and all other members of the Minister’s team, we have to say: Well done on the job done so far. [Applause.]

This is the very reason why pilot projects are being undertaken in all the provinces. Lessons are being learned, procedures are being re-looked at, all of which will help to reduce delays and save costs in the long run.

We would also want to encourage those provinces where the pilot projects are progressing more slowly to take the necessary measures to increase the speed of the implementation of their respective pilot projects.

When the portfolio committee interacted with provinces on the implementation of these pilot projects, we were told that there had been considerable improvements in the interdepartmental planning and communication, but that there was still room for improved co-ordination and budgeting. We trust that the Minister, with her MECs, will ensure that measures are taken to these processes.

We want to express our concern, however, at the deliberate attempts being undertaken by the Mayor of Cape Town, Hellen Zille, to destabilise the N2 Gateway Project. Already, she has redirected R18 million away from the N2 Gateway Project. These actions clearly indicate where the priorities of the DA are, and they are certainly not directed at the poor and most vulnerable of our society.

I would like to thank the Minister, through you Deputy Speaker, for making clear the role-players in the N2 Gateway, and we hope that the Mayor of Cape Town would have heard what you would have said. Hopefully, those opposition parties who have decided to get into bed with the DA will wake up and realise that their partner is nothing more than a wolf in sheep’s clothing. [Laughter.] [Interjections.]

In last year’s Budget Vote on Housing, the Minister announced that the NHBRC would be tasked with the setting up of the Housing Innovation Hub, to which individuals and organisations would be invited to demonstrate innovative methods of house construction.

This past Monday members of the portfolio committee visited the Innovation Hub situated at Soshanguve in Tshwane. We were greeted by a whole range of homes having been built using innovative and different methods of construction.

Particularly impressive was that a 45m square home with a full bathroom and ceilings has been constructed utilising the current subsidy allocation. Selected entrants will be given the opportunity to build homes using their innovative methods in a pilot to be launched in Soshanguve.

We also visited Modimolle in the Limpopo Province where the NHBRC showcased homes of 50 square meters. These are in line with the mandate that they were given by the Minister to produce house designs and castings, which could be used in the housing delivery programme as a standard in the new human settlements. We look forward to see the positive impact which both of these initiatives will have on the housing programme. The products on view, will ensure that our people do not just receive houses but rather that they receive homes.

We must congratulate the NHBRC for having implemented the mandate they were given and look forward to see new human settlements showcasing homes of different designs. [Applause.]

We are looking forward to the implementation of the memorandum of understanding between the Minister of Housing and the financial institutions for the utilisation of the R42 billion set aside by the financial institutions for housing development for income earners earning between R1 500 and R7000 per month. This will enable this category of income earners to access housing loans and enter the housing market and become homeowners in a sector to which they were previously denied.

We welcome the announcement that the Minister has made today that agreements have been concluded with the financial sector, but we also trust that she will keep the pressure on, and won’t let the pressure off the financial sector.

I would like to quote from an article written by Mr. Yusaf Abramjee, Group Head of News and Talk Programming for Primedia Broadcasting, which was published in the Pretoria News on 16 May of this year, and I quote:

Whilst it certainly is the responsibility of the government to provide housing, this does not mean that the rest of us can just sit back and wait for government to deliver. The private sector has a major role to play and it is time for its contribution to increase so that government’s initiatives can be maximised. It is our right to demand, to criticise and to praise, but we also need to put our money where our mouths are. As a nation we all have a housing shortage to alleviate.

We need to applaud the 702 FNB Housing Initiative in association with the Department of Housing, which was launched at Cosmo City on Thursday 18 May. We hope that this move will inspire both the financial and private sectors to play their part in building a better South Africa that would benefit future generations to come.

In last year’s budget speech, Minister Sisulu announced the social contract with the private sector, which would include the allocation of 20% of all developments to affordable housing. We are anxiously waiting the implementation of this social contract and would call on the property developers to voluntarily participate and support this initiative and not wait for legislation to enforce participation. We would also like to welcome the announcement that the Minister has made about the pilot project in Kwazulu–Natal and I am sure, as a portfolio committee, we will be watching this very closely.

As I come to conclusion, I would like to comment on two particular points that were raised in this debate. Firstly, the hon Mr Steyn of the DA claims, and has made the claims standing here, that he stands here on behalf of the poor, yet, the track record that he has so proudly spoken about here in this House today, certainly, wouldn’t indicate that. That he really think that by building one house in 12 years that the poor and most vulnerable in South Africa would look to him and the DA? Most certainly not! [Applause.] [Interjections.] The election results prove that.

Then I would like to just address an issue that both the UDM and the ACPD have raised, and I would like to suggest to them that whilst they might be small parties, they should at least take time to attend the portfolio committee meetings because maybe they don’t understand that government has taken major steps to ensure that the quality of housing is improved. Perhaps they might even be able to join us as we go out on visits to provinces, where they would actually see that quality of houses has improved over the last few years, and not come here and make statements that the quality of housing is poor and that houses are falling down. [Applause.] Government has taken steps to rectify that. [Interjections.]

Also, just for the ACDP’s information, the houses that government is currently building include internal walls and separate rooms. We in the ANC, as I conclude, are confident that our housing policy is on the right road. We are equally confident that there shall be housing, security and comfort for all.

The ANC will support this budget vote. I thank you. [Applause.]

The MINISTER OF HOUSING: Thank you very much, hon Deputy Speaker. I must take this opportunity to welcome my new DG, Mr Benny Kotsoane, who has been in the job now for two weeks. [Applause.] He is the former MEC of Housing and before that he was the MEC for Safety and Security in the Free State. [Applause.]

I also want to take this opportunity to welcome today my girl child whom I have taken to work - I don’t know where she is, Ms Sindile Thabethe. She hopes that one day she will join the ranks of this House. [Applause.]

I would also like to thank the president of Shack Dwellers International. I see that he has brought along with him a whole lot of people, who, as the Deputy President has indicated, are clad in the same colours as myself – it is pure co-incidence - it was not planned at all. [Laughter.] I thank you all for your unimaginable support.

I want to thank my MECs who are also present here. My MECs, without you, I would not be where I am today. I thank you for bearing with me and for the energy that you have put into Housing. It makes me so much prouder, thank you. [Applause.]

I want to thank the portfolio committee for their support at all times. I want to say to Zoliswa Kota, the MECs and myself are very conscious of the support that you have given us. We thank you and the portfolio committee very much for that. [Applause.]

I would also like to thank the banks that are amongst my best friends and have taken a long time to get to this point with me. I would like to thank them very much for the space we have covered together and the agreements we have reached. It has made it so much more possible for me to deliver on what needs to be done. [Applause.]

I would like to thank the partners for housing who have believed in me all the time. I would like to thank all those who have committed themselves to the social contracts, Shack Dwellers International, and Federation of the Urban Poor Association, which we have here with us. [Applause.]

I would like to thank, in particular, Rose Molokoane the star of our own FEDUP association and an award-winning activist. [Applause.] Thank you very much, Rose and Patrick Magebhula for all your support.

I would like to thank Talk Radio 702 and in particular the use of Abram T, who is now turned a fervent housing activist – it has worked in my favour. Thank you very much. I would like to thank Habitat for Humanity for the incredible support and co-operation they have given me.

Thank you also to Kgosi Leruo Moletlegi for his support in the vision that I have for housing. I would like to thank my panel of advisors and special advisors we’ve come a very long way and I would not be here without them. I would like to thank Niall Mellon for his extraordinary generosity.

I would also like to thank my department, especially the housing institutions who are always ready to go the extra mile; Phetola, Samson, Manye, Cedric and Velem. I would like to welcome the DG to the hot seat and thank you very much for the extraordinary support you have given me over the past two weeks and to the DDG Dlabantu who held the fort. To my own office, I don’t know what I would have been without you.

Madam Deputy Speaker, after concerns that were raised here last year by hon members about the credibility of the housing list across the country I resolved to ensure that the matter was attended to. As reported late last year, an audit company was appointed in this regard. The first phase of the task of auditing the list has now been concluded and I can proudly announce that the waiting list for the Cape Town metropolitan area has been completed. Using the lessons learned in this pilot project we are ready to commence with other municipalities.

We have set up criteria with the communities and the website for this is up and running. You, as MPs are requested and called upon to help in your constituencies to ensure that your members check and verify their names on the website.

Concerning the most laughable claim, I would like to concur with Craig here, was made by the DA that they speak on behalf of those who cannot afford their own houses. [Interjections.] The hon member does not even know where these people live. [Interjections.] He doesn’t. I have consistently asked him to come along with me to see how the other side lives. [Interjections.] Come along with me, Butch Steyn. Come along with me and see a world completely closed to you and you know that I mean it. Come along with me and you will see how we live. [Interjections.]

I am very glad that the DA’s conscience has been pricked and has risen to the challenge of building a single house. But gauging from the amount of noise generated by the opposition, you would have expected that they would have done much more. I now challenge you, Butch Steyn to outdo yourself. I am sure it cannot be difficult to outdo yourself on one house. Let us see if in fact it is possible for you to outdo that record.

I also take note of the IFP’s concerns around the condition of hostels. I have witnessed these conditions myself and I can only assure you that we are dealing with the matter. It is true that the member has consistently raised this issue with me. The Ekurhuleni Municipality is piloting new ways in which we can deal with this hostel situation.

I would like to say to the, hon Shenge, that sometimes we find ourselves in a difficult position here, because we as the government would like to see these hostels change possibly into family units.

I am informed, Shenge, that the men who live in these hostels do not want family units. They would much rather that these are single men’s hostels. We will take that into consideration and ensure that we give them where there could be single men’s affordable rentals.

I wish to inform hon Rajbally that our policy does cater for backyard dwellers. Perhaps we will forward to you all the information on the policies so that you have it all, knowing that you are a sole member of the MF. [Interjections.] Oh, it has now grown to two members, congratulations.

Finally, it does appear to me that we are all at the same level about the urgency around housing. There can be no doubt about that. Let us therefore go out there and make a difference in the lives of our people. I thank you. [Applause.]

Debate concluded.

Vote No 5 – Provincial and Local Government

The MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT: Madam Speaker, local government MECs, traditional leaders of our people, mayors and councillors present in the gallery and hon members, this budget vote comes before the House a little over two months after the local government elections which took place on 1 March 2006. Our people’s participation in those elections was premised on the legitimate expectation that it would help hasten the dawn of a new age, an age characterised by the end of the use of the abominable bucket system as a means of sanitation, universal access to clean water, decent sanitation and electricity as well as the existence of economic and social infrastructure which is of a quantity and condition that guarantees sustainable economic development and social provisioning. Indeed, together with our people, we understood that critical to the realisation of these objectives is a plan to make our municipal system of government work better.

As hon members are aware, in 2004 we carried out a diagnostic study of the local government sphere. This was subsequently followed by a comprehensive qualitative assessment, which was done in 2005. These undertakings brought to light two deficiencies, which are desperately in need of urgent attention. The first is the challenge of weak institutional capacity and the second is the problem of inadequate systems of accountability.

National and provincial governments have gained an even much better feel of the situation as we interacted through the Presidential and Ministerial Izimbizo Programme of 2005 with 106 municipalities across all nine provinces. Steps were taken to ensure that none of our municipalities remains stuck in the unpromising corner where poor performance and the attendant problem of service delivery backlogs are the order of the day.

A hands-on programme of support, known as Project Consolidate, was rolled out. As at April 2006 a total of 112 experts, 18 graduates and 80 engineering students had been mobilised and deployed in a total of 69 Project Consolidate municipalities. The scale of coverage of the deployment by municipal type spent 52 local municipalities and 17 municipal district municipalities.

I will be remiss if I do not pause here to thank the following partners for a heart-warming demonstration of solidarity. The Department of Water Affairs and Forestry, the Local Government Seta, the Engineering Council of South Africa, the Afrikaanse Handelsinstituut, National Treasury, the SA Black Technical Careers Organisation, the SA Association of Civil Engineers, the Department for International Development and the Institute of Municipal Finance Officers.

Through the support of service delivery facilitators who came from these organisations, Project Consolidate proved to be a milestone development representing an important material sign of what could be achieved through a co-operative system of governance. Various municipalities can now point to the positive ways in which the lives of their residents were touched by the interventions of the service delivery facilitators.

The Greater Kokstad Municipal Council, assisted by deployed service delivery facilitators, was able to electrify 556 households and it remains on course to complete the electrification of 1 000 households in the Horse- Shoe informal settlement. The settlement is in the process of being converted into a formal residential area.

Whereas the payment level of services rendered to the community of S J Moroka stood at 11% as at July 2005, service delivery facilitators’ intervention helped the municipality to target major debtors and by January 2006 the payment level had increased to 45%. Similarly, in the municipality of Machabeng the payment level increased from 51% in July 2005 to 62% by February 2006. This and other examples too numerous to mention serve to underscore the point that Project Consolidate is a prelude to the ushering in of a season in which we shall have a local government system which has the requisite capacity to discharge its mandate.

It is our intention to scale up and mainstream the hands-on support that we are currently providing to targeted municipalities. Within this context of intensified support for local government, priority attention shall be paid to former cross-boundary municipalities as well as to the urban and rural nodal municipalities. As we continue to organise presidential and ministerial izimbizo, follow-up actions shall be undertaken in order to ensure that our entire system of government is indeed seen to be responsive to the priority needs of the people. This explains why we are continuing to mobilise our country’s knowledge base and to harness it to the task of improving the functional effectiveness of our governance system.

As we speak, the Development Bank of Southern Africa, through an initiative called Siyenza Manje, is in the process of recruiting 144 experts and 30 young graduates for deployment to priority municipalities over the next three years. Ninety experts and graduates will be placed in the priority municipalities by December 2006. These experts will provide support in the areas of engineering, project management, financial management and town planning.

The Department for Provincial and Local Government and the Department of Public Service and Administration are also finalising the conceptualisation of a contribution to be made by Project Khayetu towards enhancing national and provincial government’s support for priority municipalities.

I must hasten to point out that welcome as this assistance is, it however carries strong risks of deepening the pathology of local government reliance on external sources of growth and development. In order to forestall this ghastly prospect, we are taking steps to help strengthen the political strategic capacity of the municipalities themselves.

In addition to the councillor induction programme directed at the over 9 000 newly elected councillors, we are also looking at the technical side of local government’s functional status. In two day’s time, the department will publish municipal performance management regulations for public comment. This will enable us to finalise and issue generic performance contracts. This will place municipalities in a position to have performance agreements and contracts with senior managers that are linked to the political mandate of elected representatives. Ultimately, this initiative will help us put in place one of the crucial elements of sustainability.

The deployment of professionals to targeted municipalities will be complemented by a range of parallel interventions aimed at augmenting the fiscal resource base of municipalities. It is for this reason that out of the R82,9 billion allocated to municipalities over the next three years, the regional services council levy replacement provision to the tune of R24 billion has been made.

This replacement provision will compensate district and metropolitan municipalities for lost revenue as a result of the abolition of the Regional Services Council levies, which comes into effect from 1 July 2006.

An additional component of the local government equitable share for 2006-07 relates to the new framework for the remuneration of councillors. This effectively means that subsidised funding is being made available from the national fiscus.

An amount of R584 million will be transferred to support councillor remuneration over the Medium-Term Expenditure Framework period. Furthermore, additional funding to the amount of R550 million will be made available to district municipalities in order to assist them to carry out the municipal health service functions.

The Municipal Property Rates Act will be implemented in a phased manner. By the end of 2005 at least 17 municipalities considered themselves ready to comply with the requirement of implementing the Act from 1 July. We are currently finalising the crafting of the relevant regulations and this will soon be gazetted. The implementation of the Act will immensely strengthen the financial and resource base of our municipalities.

One of our strategic areas of focus in the next five years will be to improve our capacity to plan, manage and monitor infrastructure investment and the provision of municipal services.

In 2005-06 government set aside R5,4 billion for the Municipal Infrastructure Grant. By the end of March 2006 the entire amount had been transferred to municipalities but actual expenditure stood at R3,9 billion. In other words, the rate of spending on municipal infrastructure already stands at 72%.

Increased spending levels in this regard had enabled us by the end of December 2005 to provide 179 000 households with access to sanitation and to provide to over 412 000 households access to potable water.

Even with respect to Municipal Infrastructure Grant expenditure, our approach to monitoring is one, which consists of progress as an outcome of joint efforts. It is a partnership, which transcends the monitor and the monitored distinction. It is only in this way that we have been able to get better insights into the impediments which impair the capacity of municipalities to effectively manage projects. We are now better placed to manage blockages in the MIG projects registration process, strengthen existing and established additional project management units in municipalities and to develop national infrastructure master sector plans to guide infrastructure planning and implementation at local level.

We are therefore confident that the R21,4 billion allocated to MIG over the next three years will yield an optimal return.

Whereas the integrated development plans of municipalities were originally conceived as strategic plans specific to the municipalities concerned, we have come to regard the IDP as a potential fulcrum for raising issues to be attended to by all the spheres of government. Clearly, therefore, all three the stages of the Integrated Development Plan process starting from conceptualisation through to formulation and ultimately to execution require joint and co-ordinated inputs.

We are happy to report that, by March 2006, 80% of all municipalities in the country had draft IDPs that benefited from intergovernmental collaboration and support.

We are on course to ensure that by the end of June 2006, national and provincial government will have convened intensive interactive sessions in each province in order to assess the quality of every single draft IDP in the country. This means that, for the first time in the history of our country, by July 2006 we shall see a generation of municipal development plans that is reflective of all the key priorities of national, provincial and local government.

It is through this process that we are beginning to forge a better alignment between the national spatial development perspective, the provincial growth and development strategies, and the municipal IDPs.

In addition to institutionalising government’s commitment to discharge its obligations to the people via the IDPs, attention shall also be paid to the task of strengthening the intergovernmental co-ordination and implementation mechanisms.

In this regard, the efficient operation of intergovernmental relations system is essential for sustainable development and service provision.

At national level, the President’s co-ordinating council is fully operational and all provinces have established province-wide intergovernmental structures, as set out in the legislation.

The process of establishing district intergovernmental structures is also continuing apace, throughout all 46 district municipalities in the country. Within the next three months, we will finalise a practitioner’s guide on intergovernmental relations. This will be an important resource for practitioners across our three spheres of government. It will go a long way towards forging complementarities regarding resources and capabilities of each sphere of government.

Continuing attention is also being paid to the task of strengthening ward committees. These ward committees represent a new relationship between civil society and the rearticulated South African state. Participation in this, coupled with the invaluable contribution of community development workers, gives civil society the possibility to influence the direction of state practice in a manner that changes the lives of our people for the better.

Through the izimbizo programme of 2005, we had a more structured interaction with ward committee members. We have since launched a handbook for ward committees and the ward committee resource book. This was done on 10 February this year. In addition to this, we are working on a national framework on public participation on local government and we are also finalising a submission to the SA Qualifications Authority for an accredited training course for ward committee members.

We are also determined to ensure that all the necessary development- oriented partnerships are forged, especially at local level. To that end, growth and development summits will be convened in all metropolitan and district municipalities. These summits will provide the opportunity to further confirm and refine the priorities identified in the IDPs. They will also help facilitate the process of stakeholder mobilisation.

We have set our sights firmly on the goal of ensuring that, come the end of local government’s current term, our people’s best hope for a better life shall not be disappointed. Success in this regard will depend especially on the skilful performance of our duties as public representatives in the legislative bodies and the executive structures of the state at national, provincial and local levels.

I want to assure this House that we in the Ministry and the Department for Provincial and Local Government are determined to work untiringly for the realisation of this goal. With your co-operation, success is certain. I thank you. [Applause.]

Mr S L TSENOLI: Madam Chair, hon members, ladies and gentlemen, the former Prime Minister of Malaysia, Mahathir, in his defence of their defiance of the IMF for reintroducing exchange controls to stem the financial crisis the region was facing, said in their culture when you are lost, you retrace your steps, because at the beginning you are certainly likely to see where you took a wrong turn.

That this budget vote takes place in May 2006, offers us an opportunity to retrace our steps to look back at the Constitution - ten years this month - which gave birth to or to put it differently, which became the compass pointing out the path we needed to follow if we are to deal successfully with the apartheid legacy.

Guided by this Constitution, we drew up the White Paper on Local Government in a consultative manner, politically and administratively. This policy paper in turn gave rise to six critical pieces of legislation that guide all of us involved in local government. Also, these were drawn up in a participatory manner.

When we look back over time, retracing our steps back like Mahathir did with his collective, we in the ANC and our allies broadly judged also by the people in the past elections in 2004 and 2006, are on course and the path we are following is headed in the right direction.

Therefore, after examining the resources allocated to this department to fulfil their constitutional mandate through various programmes designed to address their vision of developing and promoting integrated governance, we are quite happy to say we support this vote.

Your department, Comrade Minister, along with the Department of Public Service and Administration is at the cutting edge to shape a coherent story of what we mean by a developmental state, in theory and in practice. It is important to point to everybody that we are not just regurgitating what others would have us believe is old-style revolutionary terminology. Many of them do so and say so because of their fear of our determination to deepen transformation, bring about profound changes in the way the state acts and behave in the interest of the majority who are poor. After all, the poor in their numbers gave us pride of place and space in this Chamber. So, what the state prioritises, acts on and how it does so must return its appreciation of who gave it birth. [Applause.]

This department and your Ministry is also at the cutting edge of support to all three spheres in amongst other ways through the Intergovernmental Relations Act to co-operate in letter and spirit of the Constitution, whose ten years we celebrate this year.

The IDPs you referred to is dynamically informed through ward committees about people’s needs, prioritised into annual plans, are crucial for the accuracy with which they truly reflect people’s needs. The announced focus on community participation and empowerment this year will make a huge difference if we mobilise additional resources to those that we approve today to deepen the quality of capacity building that is necessary to make this sustainable.

We also raised questions reflecting on the magnitude of the tasks your department faces this year about the capacity of the department itself to carry out this. Being proud of the supportive and the quality of the people in your department already, we wondered whether you still do not need additional people of the right calibre in terms of the skills they possess employed in the right places and in appropriate numbers. Are you satisfied Comrade Minister that the services the department procures externally cannot be done internally? The complexity of governance, notwithstanding, should we not be recruiting rigorously and retaining multi-skilled people if only to retain the public service ethos that need to be pervasive throughout this sector to be able to carry out the tasks which we hear loud and clearly from your department need to be taken, especially also given the line of march as articulated by the President in the state of the nation address?

The responsibility of this department to work with the Presidency to oversee implementation of the National Special Development Framework to inform our provincial development strategies and IDPs is huge and requires effective communication all round. We came to this conclusion in our interaction with your department and Presidency on realising that often people who should know about this and work with these linkages, including allocating resources, do not know and are not fully aware of these necessary linkages. This is indeed critical if the medium and long-term expenditure strategies are truly to manifest harmony and alignment as the President called for in the state of the nation address. The results of this harmony and alignment will be in the higher and higher quality of services that are delivered and reflected in citizen satisfaction.

While we must also see protests as have taken place in our country last year, they reflect the true state of health of our democracy. They are as much triggered by service delivery problems as they are of simple poor communication. So, supporting provinces and municipalities to prioritise this work will be a subject of our monitoring this coming year.

The then chairperson of the White Paper Political Committee, Pravin Gordhan predicted correctly in 1998 that:

Actually implementing the policies contained in this Paper will take a supreme effort, tremendous resilience and constructive participation of all role-players. It will require our participation and rolling up of sleeves, our acting like citizens, as opposed to mere atomised consumers of municipal services. It will require very specific commitment and effort from national and provincial government and not in the least, from councillors and administrators within local government.

This observation is as true when he made it in 1998 as it is today. The point we are making about this, Comrade Minister, is that it would really be worthwhile to reproduce the summary of this White Paper to provide a compass to the legislation that it was to - the big picture we are working with. It explains the problems and provides the suggested solutions we want to work with as a theory. Like a torch, it throws light on the path, the obstacles, the direction to follow. Like a blind person’s white stick, it helps us navigate our way in potentially dangerous path. How can we be actors in the local scene if we have not read the White Paper?

Regarding this moment and opportunity as a reorientation of ourselves because we are entering a new term of office of local government but also taking advantage of the fact that this is a celebration of 10 years of our Constitution which guided us in the kind of local government we need to do, reading that White Paper is a critical part of our re-induction and reorientation.

One of the observations that it makes, for example, about the promotion of sustainable development, which is the line of march of all of government, is that sustainable government that is within the fiscal, institutional and administrative means of the country, establishes viable communities, protects the environment, meets the basic needs of all citizens in an affordable way, ensures the safe use of land.

The support to municipalities must ensure the fulfilment of these goals of local government to promote and bring about sustainable development.

Comrade Minister, my colleagues will speak on the various parts of the programmes, we need to give disaster management a higher profile. The gains we have made that we identify in our assessment, including in our manifesto, are significant. However, these can be reversed by floods and fires. Let’s give it a higher profile - it will be spoken on at length. Internationally a book 746 pages long has already been written on the history of Katrina in New Orleans. One of the observations that are made in that book is the degree and the extent to which some things could have been done that were not done, the extent to which national and other players did not play or played their role. I think that lesson is very significant for us. We do restate that what we need this year to build our serious new cadres is to bring about sustainable development through democratic local government.

I thank you, Madam Chair. [Applause.]

Mnr W P DOMAN: Voorsitter, die verkiesing van nuwe munisipale rade vanjaar bring hoop dat verbetering in dienslewering sal geskied. Dit sal alleen moontlik wees as munisipaliteite die foute van die afgelope vyf jaar vermy. (Translation of Afrikaans paragraph follows.)

[Mr W P DOMAN: Chairperson, the election of the new municipal councils this year brings the hope that there will be an improvement in service delivery. This will only be possible if municipalities avoid making the mistakes of the past five years.]

Firstly, many municipalities that now have the opportunity to appoint a new municipal manager and senior managers will have to appoint people with the relevant skills and expertise. I think it is common cause that the ANC- controlled municipalities all over the country, in the past five years, did not strive to strike a justifiable balance between affirmative action, on the one hand, and skills and expertise on the other. [Interjections.] No wonder that this department’s own report on skills found that employment equity and transformation were the main reasons for the lack of skills in municipalities.

Last year, in reply to a question that I put to the Minister about the qualifications of the 47 district municipal managers, at least 20 did not appear to have the right qualifications. Some only had short courses in local government, while others have little more than matric.

The DA believes that the municipal managers and senior staff appointed with the correct qualifications should be paid market-related salaries and rewarded according to their performance. The fact that 55 local municipalities, which are under Project Consolidate, awarded their municipal managers performance bonuses, does beg the question whether these managers really deserve these bonuses.

The DA therefore welcomes the Minister’s announcement today that performance contracts for municipal managers are now available; they will at least give municipalities a clear indication what they should hold municipal managers accountable for.

We also need guidelines about salaries and bonuses. The Minister should have taken the SA Local Government Association to task long ago to assist towards standardisation. Furthermore, there is an apparent general skill shortage. The Minister and the Cabinet promised a skills audit but nothing is forthcoming. How far are you with that?

The Minister is also quiet about the dismal performance of the local government Seta. If the appropriate skilled people are not appointed in this new term, local government will not deliver.

Secondly, we need open governance. Last year I quoted a report of the Cape Times about complaints about the ANC mayoral committee of Cape Town that governed behind close doors, and from whose meetings the media, let alone the public, got no information. I stated that it was a recipe for mismanagement. Now, one after another, the scandals unfold about the decisions taken behind closed doors in Cape Town. [Interjections.] It is inconceivable that the ANC, which claims to be so transparent, can allow this system to continue because of a loophole in the law. The best proof for the necessity of open mayoral committees is provided by the DA- led coalition government in Cape Town. The mayor immediately opened up the mayoral committee and, for example, the 2010 football stadium matters were discussed in the open. Every stakeholder could react, even overreact, as the ANC in the Western Cape did, but steps were taken towards a solution, and everyone is happy now.

In the rest of the country, one can only wonder how much mismanagement and corrupt deals take place behind the closed doors of mayoral committees. [Interjections.] At the local government level, there is no separation between the legislative and the executive, and therefore, mayoral committees that have so many delegated powers and where most of the decisions are taken must be open.

Minister, after five years, it must be clear that legislative changes like the above are needed, and you and your department must take the initiative.

Thirdly, the legitimacy of municipalities, which was undermined by the corruption, fraud, nepotism, self-enrichment and lavish privileges of councillors and senior officials, must be restored. We have seen that all over the country ordinary people are turning against their councillors and they wonder: Was the liberation struggle about the enrichment of a few? [Interjections.]

The extension of the contract of the municipal manager, Dr Wallace Mgoqi, in Cape Town is a case in a point. On 18 February 2006, I warned in a member’s statement in this House that the extension of his contract by the ANC Mayor Mfeketo was illegal, in light of an earlier court ruling.

Deputy Minister Hangana replied, and I quote from Hansard:

There is nothing wrong in the reappointment of the city manager. It is a prerogative of the Unicity mayor to reappoint a manager. [Interjections.]

The HOUSE CHAIRPERSON (Ms C-S Botha): Order, please members. Order, please!

Mr W P DOMAN: Now the court has ruled her wrong. She should be more careful and guard against showing ignorance of the Local Government: Municipal Systems Act, and condoning actions of enrichment.

Nou kom die sekretaris-generaal van die ANC in die Wes-Kaap, die agb Skwatsha en sy Wes-Kaapse leier en hulle het die vermetelheid om te sê dat die ANC hof toe moet gaan om die verkiesing van die uitvoerende burgemeester Zille onwettig te verklaar, weens die onwettige kontrak en optrede van die munisipale bestuurder. Die ANC moet eerder op sy knieë gaan en die mense van Kaapstad om verskoning vra, want hulle het die hele gemors veroorsaak. [Tussenwerpsels.]

In antwoord op ’n vraag van my dat politieke partye verantwoordelikheid moet neem vir die dissiplinering van hulle raadslede, het die agb President hier van hierdie podium af gesê dat hy dit in sy dagboek sal aanteken, dat dit die dag is waarop hy met die DA saamgestem het. En die agb President het woord gehou. Miskien het hy op daardie stadium iets geweet wat ons nie weet nie, maar die ANC het ten minste 50% van sy raadslede nie laat terugkeer na die stadsrade toe nie. (Translation of Afrikaans paragraphs follows.)

[Now the secretary-general of the ANC in the Western Cape, the hon Skwatsha and his Western Cape leader come and they have the audacity to say that the ANC must go to court to declare the election of executive mayor Zille illegal, owing to the illegal contract and the conduct of the municipal manager. The ANC should rather go on its knees and apologise to the people of Cape Town, because they caused the whole mess-up. [Interjections.]

In reply to a question of mine that political parties should take responsibility for the discipline of their councillors, the hon President said from this podium here that he would note it in his diary, and that this was the day on which he had agreed with the DA. And the hon President was true to his word. Perhaps at that stage he knew something of which we are unaware, but the ANC saw to it that at least 50% of its councillors did not return to the town councils.]

The DA, therefore, also welcomes …

… dat die agb President so sterk standpunt in ANC Today in Maart ingeneem het oor die nuutverkose ANC-burgermeesters en-raadslede wat nie aan die verwagtinge voldoen nie, dat hulle verwyder sal word.

Hierdie Minister moet die President se leiding volg. Hy moet sy departement se anti-korrupsieveldtog na alle munisipaliteite uitbrei. Hy moet self meer sigbaar wees teen korrupsie en bedrog, indien ons ’n sukses in hierdie termyn wil maak. Ons wil graag sien dat hy hom uitspreek teen byvoorbeeld gevalle soos die Suidelike Distrik Munisipaliteit wat nou die dag by hulle inhuldigingsgeleentheid van die burgemeester, R300 000 uitgegee het, waarvan R71 000 alleen aan drank gespandeer is. [Tussenwerpsels.] Waarlik, daar op Orkney snork hulle nie; hulle eet en drink. [Gelag.] Dit nadat die vorige burgemeester ’n bottel whiskey van R1 400 vir sy kas aangekoop het en ’n Jeep Cherokee in vier jaar se tyd klaar gery het, sodat dit nou voetstoots verkoop moes word en daar is nou ’n nuwe tender uit vir ’n ampsmotor van R700 000, wat navigasie moet hê. Hierdie burgemeester is definitief bekommerd dat hy gaan verdwaal. Hy het alreeds verdwaal. Vierdens, vir sukses in die nuwe termyn sal die ondersteuning aan sukkelende munisipaliteite op ’n meer vaste basis as Projek Konsolideer moet geskied. Alhoewel ons baie bly is vir die ingrype en wat die Minister ookal vandag hier gedoen en wat al bereik is. (Translation of Afrikaans paragraphs follows.)

[… and that the hon President took such a strong stand in ANC Today in March regarding the newly elected ANC mayors and councillors who were not meeting the expectations, that they would be removed.

This Minister must follow the President’s example. He must extend his department’s anti-corruption campaign to all municipalities. He himself must be more visible regarding matters such as corruption and fraud, if we wish to make a success in this term. We would like to see him express himself against, for example, cases such as the Southern District Municipality which recently spent R300 000 during the inauguration ceremony of the mayor, R71 000 of which was spent only on liquor. [Interjections.] Truly, there at Orkney they do not snore; they eat and drink. [Laughter.] And that after the previous mayor bought a bottle of whiskey to the value of R1 400 for his drinks cabinet and had to write off a Jeep Cherokee after four years, so that it had to be sold voetstoots, and there is now a new tender for an official vehicle to the value of R700 000, which has to have navigation. This mayor is definitely worried that he is going to get lost. He is lost already. Fourthly, for the new term to be successful there will have to be support for struggling municipalities on a more permanent basis than Project Consolidate. Although we appreciate the interventions and whatever the Minister is doing here today and what has been achieved …]

In this regard, Salga, whose aim, according to its website, is to be on the cutting edge of quality and sustainable services, has received a damning report from the Auditor-General. [Interjections.] If Salga is to play its part in supporting municipalities, it should quickly be turned around and the Minister should consider withholding funding until everything is accounted for.

Maar ek wil ook verder oor Projek Konsolideer sê, dat mnr Mike Seloane, Voorsitter van Gauteng se openbare rekeningkomitee, gesê het dat die finansiële bestuur van munisipaliteite in Gauteng die afgelope drie jaar versleg het, ten spyte van Projek Konsolideer. Slegs drie uit 15 munisipaliteite het ’n ongekwalifiseerde ouditeursverslag ontvang. Die vrugte van Projek Konsolideer sal volgens hom waarskynlik eers oor twee jaar gevoel word. Dit klink nie asof Projek Konsolideer, wat die einde van hierdie jaar ten einde loop, die gewenste omkeer op korttermyn, waarop dit gemik is, sal bring nie.

Die DA het van die begin af gewaarsku dat ’n tref-en-trapbenadering nie sal werk nie. En dit is ’n ope vraag of die R73 miljoen wat daarop gespandeer is waarde vir geld vir die belastingbetaler oplewer. Geen wonder nie dat ons portefeuljekomitee gesê dat ons meer inligting soek, want ons weet nie wat hier aangaan nie. [Tyd verstreke.] (Translation of Afrikaans paragraphs follows.)

[Regarding Project Consolidate I also wish to say further that Mr Mike Seloane, Chairman of Gauteng’s public accounts committee, said that the financial management of municipalities in Gauteng had deteriorated over the past three years, in spite of Project Consolidate. Only three out of 15 municipalities received an unqualified auditor’s report. According to him the benefits of Project Consolidate will probably only be felt in two years’ time. It does not sound as if Project Consolidate, which comes to an end at the end of this year, will bring the desired change in the short term at which it is aimed.

The DA warned from the start that a hit-and-run approach would not work. And it is an open question whether the R73 million that has been spent on it will give the taxpayers their money’s worth. No wonder our portfolio committee said that we were looking for more information, because at present we do not know what is going on here. [Time expired.]]

Mr P F SMITH: Chairperson, Deputy President, Minister and colleagues, the municipal system that we are entering now is one of a period of consolidation after an era characterised by highly uneven leadership and uneven performance, ranging from excellent through to very poor indeed.

Now we all accept that the immediate 2000 period was highly challenging, and there is no harm in reminding ourselves of some of the problematic issues which, by no means, have disappeared, even today. These include serious capacity constraints; inadequate delivery; poor implementation of financial management systems; corruption; inadequate levels of national and provincial support to municipalities; issues of excessive remuneration and non- implementation of performance contracts; the chaos associated with the redemarcation process last year, as well as - and I say this last but by no means least - the government’s totally dishonest dealings with traditional leaders on their role in the new South Africa over the last five years.

However, equally, we should not lose sight of the fact that there have also been many successes and we toast these, and we trust that there will be many more as the years go on.

In general, in reviewing the performance of the department over the last 5 years as it relates to local government specifically, we would say it has performed adequately rather than exceptionally as far as most matters are concerned, and that it has performed extremely poorly in as far as traditional leadership issues are concerned. However, in the last year or two, the department has definitely become more focused and it is our opinion now that its performance is improving.

There are some issues, however, that I would like to refer to which are pertinent still for the next 5 years. The first one is remuneration: We believe that this free-for-all system governing the manner in which municipal managers and senior staff have been remunerated over the past five years was very distasteful in many instances. The notion that managers should be remunerated as per the responsibilities is all very well, but the execution of this has, in many instances, been very problematic.

The situation is worsened by the fact that, in too many instances, the bloated remuneration has been boosted by so-called performance payments which in fact are not linked to any performance at all. In fact, sometimes poor performance seems to be rewarded. And it does not help, either, that many councils in fact failed to finalise their performance contracts. In this regard, Minister, we are very pleased that you announced these pro forma contracts to be made available in the next fortnight.

So, all of these issues need to be tightened up, and we are generally pleased that government has recognised the problem and that it is doing something about it. We also accept the government’s position on the remuneration of councillors being improved, and we think this is very necessary.

In respect of finances, we have a number of concerns. Again, we are pleased that the local government sphere has continued to receive an increasing share of national revenue and also that the recently reviewed equitable share formula is being implemented. However, we are a bit disappointed that the development component of the formula is not being implemented and, also, we believe that the current estimated costs of basic services should be raised as per the Financial and Fiscal Commission’s recommendations.

We are also concerned about the uncertainty surrounding the electricity restructuring because this has major implications for municipal finances, and the issue is simply taking too long and is still not finalised. We are also worried about municipal debt, which is now in the order of R32 billion, which is an astronomical figure.

So, all in all, we think that there is a need to strengthen the municipal regulatory and fiscal environment, and we do recognise however that the department itself has acknowledged a need for this.

In respect of service delivery, we are more than prepared to recognise that much has been achieved by government in respect of basic services and especially free basic services. But it is equally true that much more should have been achieved in the period behind us. And, as the civil unrest last year demonstrated, many communities are very unhappy with what they have received to date. It is easy to blame this on capacity, but in fact we also need to acknowledge there is also a failure of political leadership.

We expect much more of the councils in the second term. We all need to know that government targets are high, and require hard work across the board.

The IFP councils are certainly more than prepared to play their part in accelerating delivery. In fact, we have a number of IFP mayors up there; they’re wonderful people who will do their bit to improve delivery.

In respect of a key issue, which is support for local government, this has been a bit of a problem. Although the Constitution obliges the national and provincial governments to support municipalities, in fact, if you look at the initial period, at least this is observed more in the breach than in the execution. We believe Project Consolidate, for example, is an excellent idea but it started very late, and we support it strongly now.

We also urge that support programmes be rolled-out on a far longer-term basis, and we accept your proviso that we don’t want a dependency syndrome. However, nonetheless, it is important that one strengthens the capacity of municipalities to deliver. This is linked to human capacity constraints. We all know that this is perhaps the most serious constraint facing municipalities. I think, Minister, you made reference here to for example project management bottlenecks, which is just one example of many instances of capacity problems.

Now I think that if you look at the last five years, government has taken too long to respond appropriately to the need. It hasn’t helped matters either in respect of this human capacity problem that the sector authority has failed, to date, on its mandate.

However, we are pleased in general that government has placed far more stress on this matter recently, and that it appears to be addressing the matter more decisively. So, that’s the great thing.

Project Consolidate is one example and the opening of the Learnership Academy is another. There are others. We approve of this and we support them. It’s a key challenge, perhaps the key challenge of all, facing us.

In conclusion, there are many maps that we could refer to, but time doesn’t allow it. I just want to bring to your attention a survey or remind you of a survey conducted a couple of years ago, which showed that the citizenry’s mistrust of government was worst at local government level. National level was at the top, then provincial and then local. People had a high level of distrust and were not satisfied with their local government.

We believe that this has to be turned around. We hope it is changing. We think it is changing slowly. We need to identify the difficulties that have been there for the last 5 years. We need to remedy them; we need to focus on continual incremental improvements so that, should such a survey be conducted in future, the response of the general populace would be completely different to that in the past. To secure this outcome, we really expect more of the department, and we hope that it rises to the challenge.

The IFP will support the Vote. I thank you. [Applause.]

Nkosi M NONKONYANA: Mgcinisihlalo, malungu ale Ndlu abekekileyo, ngokwamawonga nezihlalo zawo, mawethu nonke, iinkosi zam zonke mazizole isicaka sithambile. Mandibambe ngazibini, Mgcinisihlalo, ngokunditefisa undinike eli thuba lokuba nam ndaleke umsundulo kumaqabane athe avakalisa inkxaso engagungqiyo kuHlalo lwabiwo-mali lweli sebe. Ndiyabulela kumbutho wesizwe i-ANC ngokundinika iwonga elilodwa lokuba ndiphefumle ngolu Hlalo lwabiwo-mali phantsi kwezi ngongoma zilandelayo: Okokuqala, ukomeleza nokuphucula ulawulo lwamaphondo esizwe; okwesibini, iNdlu yeeNkokeli zeMveli kaZwelonke; okwesithathu, iKomishoni yokuKhuthazwa nokuKhuselwa kwaMalungelo abaNtu ngokwaMasiko neziThethe zabo, neyezeeNkolo nezeelwimi.

Phambi kokuba ndenze njalo, kuza kufuneka ukuba ndikhe ndikhuphe esi sigqwathi, ndilungise umhlobo wam, ilungu elibekekileyo, umfo kaDoman, ukuze andive xa ndisithi: (Translation of isiXhosa paragraphs follows.)

[Chief M Nonkonyana: Chairperson, hon members of this House, all protocol observed, to all my fellow people, I humble myself before you. I would like to thank you, Chairperson, for being kind and allowing me to add to the strong support shown by my comrades for the Budget Vote of the department. I thank the national organisation of the ANC for granting me an exclusive privilege to express my views on this Budget Vote with regard to the following subjects: To strengthen and improve the administration of the national provinces; the National House of Traditional Leaders and the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities.

Before I do that, I have to clarify this first, and correct my friend, hon Mr Doman, so that he can hear me when I say:]

Hon Doman, my colleague, the rabble-rousing argument, at the end of the day, does not impress anybody but only a rabble. [Interjections.] I am saying this because you know that, owing to the accident of history – which I have no doubt the people of Cape Town are going to reverse – the DA happens to lead our city here. They have attempted, for instance, to chase away the hosting of the World Cup in 2010 and when we engaged them they failed. [Interjections.]

You are now also attempting to engage us on a rabble-rousing argument. Let me tell you, first of all, what is iustus [just] to one judge may not be iustus [just] to the full Bench and a provisional decision may also be reversed by the Appeal Court. [Interjections.] So, I want to advise you and your myopic howlers behind you that, in the near future you will realise that the ANC is going to take over this city because of the manner in which you actually administer it. [Laughter.] [Applause.] [Interjections.] Because, for instance, many senior managers, unfortunately …

The HOUSE CHAIRPERSON (Ms C-S Botha:) Member on the podium, one moment please. Hon members, please don’t react at the level that I can’t hear the person speaking. Thank you.

Chief M NONKONYANA: Thank you very much. I just want to indicate to you, for instance, that not only Mr Mgoqi, an experienced administrator, has left this city, but many others have left it. At the end of the day, I can tell you, the people who are going to suffer are those from Khayelitsha and Mitchells Plain, the poorest of the poor. I hope that they will realise that they need to actually vote for the ANC so that they can reverse this accident of history. [Applause.] [Interjections.]

I now proceed. I now wish to deal with the issue of strengthening provincial government and accountability. President Mbeki, in the state of the nation address this year, urged us all to place emphasis on building capacity in the local government sphere, which will be a catalyst for local economic development in the next decade.

The constitutional obligations of the national and provincial government are critical. Hon minister, indeed, the performance of both provincial and local government continue to reflect great unevenness in 2005, with grave challenges facing some provinces and municipalities, in terms of operational efficiency and effectiveness. These internal challenges are coupled with historical legacies such as service delivery backlogs, aging or non-existent infrastructure and poor own revenue capabilities.

There is a real lack of technical and managerial skills in many municipalities and institutional capacity to manage resources. The Constitution of the Republic refers to various obligations that will determine the relations between provinces and municipalities. These obligations are monitoring, support, regulation and supervision by provinces or municipalities.

We have noted that during this financial year, the department shows a growth of 23% in nominal terms from the past financial year. We are happy to note that the department is to develop and promote a national system of integrated and co-operative governance, which will include the strengthening of provincial government and accountability. Provincial administrations, however, are not super homelands and, as such, a sphere of government that needs to fulfil its constitutional mandate within each province.

In order to give effect to this mandate, more funding and capacity-building initiatives should target provinces. The necessary intervention by national sphere of government is really appreciated. Be that as it may, integrating planning across three spheres, including the guiding of municipal integrated development plans, enhancing local economic development plans, enhancing local economic development and the implementation of the Intergovernmental Relations Fiscal Act of 2001 are key features of the ANC government programme of action.

An amount of R94 million has been set aside for the MTEF period. During budget hearings we were given measurable objectives and key performance indicators. We will closely monitor progress, because the ANC is determined to deliver towards bringing a better life to all South Africans, including those that are living in Cape Town.

I now proceed to the National House of Traditional Leaders. This honourable house is, no doubt, aware that the ANC government has provided for the role of the institution of traditional leaders at all spheres of government. A total amount of R68,2 million over the MTEF period has been set aside as a contribution to the promotion of the institution of traditional leadership in South Africa. Of this amount, a sum of R26 million has been set aside to fund the programmes of the national house.

We are aware of challenges that face the institution of traditional leadership. However, we are happy that many traditional leaders have now accepted that the transformation of the institution of traditional leadership is imperative to reinstate the pride and the dignity of the institution.

We look forward to the establishment of the traditional councils and local houses by June this year and the needed co-operation between some municipalities and traditional councils. This must pave a way for beneficial co-operation between ward councillors and ward committees on the one hand, and the traditional leaders and traditional councils on the other. We are concerned that in many provinces, if not all, there is no budget in this financial year for the building of traditional councils and local houses, their administration and necessary capacity-building for their councillors and staff.

We remain convinced that the institution of traditional leadership must remain above party politics. The ANC government has established a commission on disputes and claims and set aside R22 million to execute its mandate. The death of kings and queens immediately after the establishment of the commission is regretted as, no doubt, their contribution was valuable. These and many other things are a clear indication that the ANC government has high regard for the institution of traditional leadership in South Africa.

I now turn to the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities. This commission is one of the Chapter 9 institutions meant to strengthen democracy and was established by Act 19 of 2002. Its main objectives include the following: to promote respect for the rights of cultural, religious and linguistic communities; to develop peace, friendship, humanity, tolerance and national unity amongst and within cultural, religious and linguistic groups.

The commission will receive R43,3 million over the MTEF period. A sum of R13,4 million has been allocated to the department during this financial year. The commission, in its strategic plan document, has stated that, and I quote:

Racial discrimination, cultural intolerance and lack of respect based on stereotypes and prejudice have characterised tension between citizens throughout South Africa.

No doubt, there is a contribution of DA in this regard.

Poverty or a lesser standard of living often characterises vulnerable groups, which contributes to the perpetuation of certain stereotypes. Western culture, which brings with it both positive and negative aspects, has a specific threat to African culture. Traditional social roles, such as held by indigenous leaders and parents have been undermined, leaving no clear direction.

The work of the commission has therefore raised certain challenges. In order to effectively execute its mandate, the commission must have a clear understanding of the rights and practices of cultural, religious and linguistic communities of South Africa in their range of diversity. It will no doubt therefore need funding to research and gather information. We call upon all our communities to support the commission in its work.

I now conclude.

Phambi kokuba ndikhwelele eli qonga, ndinga ndingavakalisa ilizwi lokuyala, ndinqanda bonke abantu abaneenjongo zokuba okanye zokusebenzisa imali karhulumente okhokelwa yi-ANC, urhulumente ofuna ukuba bonke abantu bafumane uncedo kweli lizwe, nezokulibala ngabantu bakuthi bahlohle ezabo izisu, bafezekise iminqweno yabo egwenxa.

Ngoko ke singumbutho wesizwe, i-ANC, simemelela ukuba bonke abantu basincedise silwe lo mkhuba, sibambe onke la matutu, nkqu nawe-DA, siwafake kwezimnyama izisele, kuba ngawo angabangcatshi benkululeko. Ndiyabulela. [Kwaqhwatywa.] (Translation of isiXhosa paragraphs follows.)

[Before I leave this podium, I would like to warn all those who steal or use money from the ANC-led government, and who ignore our people and feed their own stomachs to fulfil their evil purposes. The government wants to help all the people of this country.

Therefore, the ANC-led government calls on all people to cooperate in fighting this bad habit and to arrest all these thieves, including those from the DA, and put them in a dungeon, because they are traitors of democracy. I thank you. [Applause.]]

Mr V C GORE: Madam Chair, hon Minister, hon members, it is quite clear that one of the greatest challenges facing this department is around the area of service delivery. From the President to leading academics and commentators, there is broader agreement and understanding that it is imperative that the pace of service delivery, particularly at local government level, needs to be accelerated and made more efficient. And we welcome the Minister’s remarks around capacity and accountability, in this regard.

Unfortunately much has been said about the underperforming municipalities in the country and particularly around Project Consolidate. Unfortunately, little has been said about those municipalities and local governments that are continually delivering and ensuring that progress is made. Much has been said about those municipalities that are failing but little is said about those that are passing and making an impact. A lot has been said about what is not being done and little or nothing has been said about what has been done. Little has been said about those municipalities like Ekurhuleni, in Gauteng province, hon Minister, that have succeeded and were able to roll out water and electricity to over 80% of its citizens, provide free electricity and water in excess of the national requirements of 6 kilolitres and 50kw per household per month and ensuring higher levels of payments. This has resulted in the metro being able to realise an annual growth which is significantly higher than the average for the rest of the country. Not only does it provide a booming economy for its citizens but provides a safe and reliable opportunity for local and foreign investors.

One of the main reasons why this metro has been able to achieve these successes is, simply put, a competent and well-motivated team, whose passion is about delivering services – your capacity, hon Minister.

The ID believes that one of the greatest challenges that exist for our country and our fledgling democracy is the great inequalities that exist within our society. It is highly undesirable that in 2006 such huge divides still exist between the rich and poor, between white and black, between rural and urban dwellers. It is quite clear that if this country as a whole does not address these inequalities and these divides, we are not going to be able to realise the full potential that this country possesses. [Applause.]

Mr H CUPIDO: On 1 March 2006, the voters of Cape Town spoke. [Interjections.] In the forthcoming by-election in Mitchell’s Plain, the voters will confirm that by 2009, the ANC will not rule this province anymore. [Interjections.]

Shortcomings in the local government service delivery have received much attention of late and in particular, during the 2006 local government elections. The ACDP is aware that the lack of institutional capacity and skills has been cited as the major reason for service delivery failures. We are further satisfied that the emphasis placed by the Accelerated and Shared Growth Initiative for South Africa on skills development, will play a significant role in the enhancement of service delivery.

It is within this context that the ACDP wishes to draw attention to the department’s underspending with regard to the filling of vacant posts. While it is reasonable to expect that unfilled posts will help to cut down on operational costs, we have to be concerned about such vacancies placing added strain on service delivery and constitutional capacity.

A skills audit has being performed and scarce skills have been identified. In addition to this, the department has been giving closer attention to its relationship with educational institutions and the utilisation of interns. Enhanced training and development of existing staff have been taking place at a much larger scale. Taking into consideration all these positive developments, it has become evident that the Department of Provincial and Local Government is now in a position to start taking urgent measures to fill these vacant posts so that the citizens of South Africa may start reaping the rewards of immediate and sustainable service delivery of the highest standards. We support this Budget. [Applause.]

Mr B M SOLO: Chairperson, hon Minister Sydney Mufamadi, Deputy Minister Nomatyala Hangana, Ministers and Deputy Ministers present, mayors from various municipalities, …

… mhlawumbi ngesiqala ngokutsho ukuba kufike ixesha lokuba kuphunywe egusheni, umntu acace. Enye into, kubalulekile ukuba sihloniphane. Ndiza kungena kuloo mba njengokuba ndiqhuba nentetho yam.

Xa kuthetha inkosi, ngokwesiko lethu, kufuneka sizole, simamele. Sisebenzisa amagama afanelekileyo xa kuthetha abantu abahloniphekileyo, hayi amagama afana noo “Hierdie Minister”. Sisisizwe esihloniphayo kakhulu, kwaye sifundiswe ngolo hlobo. Mhlawumbi ezinye izizwe aziyiboni ibalulekile into yokuba sihloniphane. (Translation of isiXhosa paragraphs follows.)

[… perhaps we can start by saying it is about time to come out, to see the real person. And also, it is very important to respect each other. I will allude to that as I go through my speech.

In our culture when the King speaks, we must be silent, and listen. We use the appropriate words when honourable men speak, not to use words like “Hierdie Minister”. We are a very respecting nation, and we have been taught that way. Maybe other nations don’t realise the importance of respect for one another.]

Guided by the Freedom Charter, the ANC has entered into a people’s contract to create work and fight poverty. The budget vote presented here today should be seen in that context. Judging by the outcome of our recent local government’s last elections, it is my view that the prophetic words in the state of the nation address are correct and allow me to spell them out:

That our people are firmly convinced that our country has entered its age of hope; they are convinced that we have created the conditions to achieve more rapid progress towards the realisation of their dreams and the progress we have made to alleviate the poverty afflicting millions of our people and the strides we have made to expand and modernise our economy.

Umntu uma apha ekhukhumele, asixelele ngeziphumo zonyulo loomasipala eKapa. [A person stands here with pride, telling us about the results of the local elections in Cape Town.]

Let us look very carefully into those results, but I am not going to do it today; it is not my task to do that. Today I must speak about the things that we are going to do to alleviate poverty. It is therefore important to perceive the budget presented today, which we, from the ANC, support from this context. This budget inspires us for it projects a clear picture of where we are going. It ensures that: “Today is better than yesterday and that tomorrow will be better than today,” as stated by President Thabo Mbeki in his state of the nation address.

If one looks at the budget closely, one would realise the key components that contribute to a better life for all. The budget addresses the strategic objectives to fight poverty by ensuring proper mechanisms and instruments to realise, once more, the shared prosperity and better life for all that President Mbeki speaks of.

The budget puts a lot of emphasis on issues such as development monitoring, intergovernmental relations, integrated development and local economic development. This emphasis is based on the past experience since the introduction of the new system of local government five years ago.

Le nkqubo ekhoyo yoomasipala ayifani nenkqubo eyayikho ngaphambili; yinkqubo entsha. [The present municipal programme is not the same as the previous one; it is a new programme.]

That is why we talk about the three spheres of government.

Asazi ke ukuba kufuneka senzeni xa abantu bengayiqondi loo nto. Asizi kuthatha isichazi-magama ze sikhangele ukuba kuthethwa ntoni na ngamanqanaba amathathu karhulumente. [We cannot do otherwise if people don’t understand that. We will not turn to dictionaries and search for the meaning of the three spheres of the government.]

We have learnt many lessons and gained a lot of experience in this new system. If one looks at Programme 2 of the budget, one would see that the Programme links very accurately with the strategic objectives set out by the department, thus the relationship with Asgisa. Part of the objective is service delivery, public or community participation and communication development.

When we say in the Freedom Charter that the people shall govern, we mean that the people shall actively participate in the various processes of government.

An HON MEMBER: Especially in Cape Town!

Heke! Uza kufunda ngoku kuba sinivulele iingcango. Zange khe sibekho kwezi zinto zenu. Ezinye izinto benizenza kumabala egalufa, apho nanithatha izigqibo khona, ngathi ningamagqwirha. [Kwahlekwa.] (Translation of isiXhosa paragraph follows.)

[Indeed! You have to learn now, because we have opened the doors for you. We were not involved in some of your activities. You did some of those activities on golf courses, where you took decisions, as if you were involved in witchcraft. [Laughter.]]

You cannot talk development planning without involving those who would be affected hence the Integrated Development Program, IDP. Having planned and started the process, there is a need to explain why the starting point is X and not Y. Of course, along the way you might encounter difficulties or make incredible progress. That needs to be communicated very clearly. The impact of all these would be derived from feedback you get from the people. There will be an ongoing dialogue to ensure consistency. Thus, the strategy is to deepen democracy through performance, monitoring, service delivery, evaluation and communication of development including certain winning municipalities. But let’s wait; the crossing of the floor is coming and I know they are going to make a mess thereof. [Laughter.]

Once more, this is what this budget says. It is not just huge figures, but a tool to ensure a better life for all, particularly the previously disadvantaged communities. The ANC has an action plan to make local governments work better. As a governing party with the mandate, this budget operationalises the plan. This is your own English and if you don’t understand it, then God help us all. [Laughter.]

It does that by responding to the ANC’s call in its manifesto that emphasises people participation. [Laughter.]

Given all that, we need to indicate that we still have challenges particularly around some of the programmes. I want to talk about disaster management … [Laughter.]

Mr M J ELLIS: God has a plan for you too!

Mr B M SOLO: You are right, because you are talking about your God and I have my own God. You must understand that you brought us a religion that does not suit our situation, thus the confusion. [Interjections.]

As a country, we have demonstrated our capacity to deal effectively with disaster. In this instance, I would refer to the floods in Mozambique, quick response and quick rescue plans. For now, it does not seem like we are doing those basic things in terms of community participation. The Act calls for establishment of structures such as contingents of volunteers. The Act calls for recruitment of volunteers, establishments of forums, gathering of information including indigenous knowledge and not the knowledge they have been pumping us with, which is sometimes terrible.

Regarding prevention and mitigation, the Act is about people taking care of their own safety and rehabilitation …

Mr M J ELLIS: Parliament is a serious place; you must stop making these jokes. [Interjections.]

Mr B M SOLO: Andizi kubayeka. Yithi ndilungise lo mcimbi. [I am not finished with them. Let me correct this first.]

The HOUSE CHAIRPERSON (Ms C-S Botha): Order! Order! Not you, hon speaker, I am trying to help you.

Mr B M SOLO: What about my minutes?

The HOUSE CHAIRPERSON (Ms C-S Botha): You still have a lot of time left. Mr B M SOLO: We are, indeed, confident that both the Minister and the department are committed to carry out the mandate in the spirit of Batho Pele. We will teach you in the spirit of making local governments to work better so that tomorrow can be different from yesterday and for all of us to witness the dawn of hope …

… isimilo yinto efunekayo. Kodwa ke siyabona ukuba nineentloko ezilukhuni. Nokuba singenzani, ngekhe nibe sajika. Nangoku anikwazi kuchaza ukuba nihlalele ntoni apha ngaphandle nje kokuxwaxwa okweengqeqana ezincinci ezilambileyo.

Nisadla ngendeb’ endala; nisafuna ukuba siqhube ngalaa ndlela yakudala. Fundani ngoku ukuba kukho utshintsho, sisebenza nabantu. (Translation of isiXhosa paragraphs follows.)

[… respect is important. But we can see that you are stubborn. We can try everything, but you cannot turn from your ways. You can’t even explain why you are here besides being here to make noise like hungry puppies.

You are still embedded in your old ways; you want us to do things of the old order. You must learn now, because there is a change; we work with people.]

The HOUSE CHAIRPERSON (Ms C-S Botha): Hon member, would you please take your seat? Mr M J ELLIS: Madam Chair, on a point of order: the hon member seems to refer to members of the DA as dogs and this is strictly unparliamentary. That is certainly the impression that came across in the interpretation. And I would urge, Madam Chair, that under these circumstances you ask him to withdraw. [Interjections.]

The HOUSE CHAIRPERSON (Ms C-S Botha): Hon member, it is very difficult to try and listen to the English from the interpretation and yourselves on this side. I cannot actually say that I heard that and I doubt that it was said in that sense. However, if it was, I would ask the hon member to withdraw.

Liqhawe, liqhawe! Mhlawumbi kufanelekile ukuba sivule isikolo, sibafundise abahlekazi ukuba ngoku … [He is a hero, he is a hero! Maybe it will be appropiate for us to open a school, and teach them that now …]

The HOUSE CHAIRPERSON (Ms C-S Botha): Hon member, please take your seat for one moment!

Mr M J ELLIS: Madam Chair, I am not at all aware of the fact that he made any attempt to withdraw. In fact, I don’t know what he said in terms of what you asked him to do. And I would prefer to have a ruling from you as to what the procedure is from now.

The HOUSE CHAIRPERSON (Ms C-S Botha): Deputy Chief Whip, I did give a ruling. I said that if the words were actually used in relation to the members that it should be withdrawn. However, I unfortunately also do not understand and I am battling to hear the interpretation. I will ask the hon member if he won’t please withdraw in English. [Interjections.] Yes! That is my ruling. If he actually compared the members of this House to dogs, I wish him to withdraw.

Mr B M SOLO: Madam Chair, I thought there is something called phrases and idioms in English; in isiXhosa it is called iqhalo. That is why it was used. It was used in that context. However, anyway, I don’t want to waste your time, if you feel very strongly I will withdraw.

The HOUSE CHAIRPERSON (Ms C-S Botha): Order please! Order please! Hon member, please give the opportunity to the member speaking to do what you have required him to do. Actually you asked him to withdraw and now you are preventing him from doing so. Please continue.

Sinentlonipho kakhulu. Silindele ukuba nathi sihlonitshwe. Indlela abanye oogxa bethu abaziphatha ngayo kule Ndlu, noko ayanelisi kwaphela. Mhlawumbi, xa befuna ukusazi indlela esiphila ngayo nendlela esihlonipha ngayo, singalivula iziko lemfundo yabadala apha ePalamente ukuze bafundiswe, kuba sifuna ukuba nabo basazi. Bathatha iminyaka emininzi besifundisa ukuba le nto babeyenza ilungile, nangale ndlela ababeyenza ngayo. Kodwa sibonile – nani nizibonele, bantu bakuthi – ukuba ikhulu leminyaka sihleli kubugxwayiba, kwiimeko ezinzima, bengabonisi nosizi ngoko, bexhamla, besitya kamnandi.

Babesitya ngecephe elikhulu, besivalele phaya ngaphandle, simane sibabukela singaphandle. Thina asityi sodwa. Siyababiza sisithi masisebenzisaneni. Yilandeleni indlela esisebenza ngayo kuba yiyo eya kusikhulula kobu bugxwayiba. Ndiyabulela kakhulu. [Kwaqhwatywa.] (Translation of isiXhosa paragraphs follows.)

[We have great respect. We also expect to be respected. We are not satisfied by the conduct of some of our colleagues in this House. It leaves a lot to be desired. Maybe they are interested to know how we live and the way we manifest respect. We can even open an elderly institution here in Parliament so that they can be taught, because we want them to know us. They spent many years teaching us that what they did was right, and they did it. However, we have seen – and you have seen for yourselves, my fellow people – it has been hundreds of years, living under adverse conditions, bad circumstances. They did not show any sympathy then, they were benefiting, eating nicely.

They had all the privileges. They isolated us; we used to watch them from the outside. We don ’t eat alone. We are calling them for co-operation. You must follow our way of doing things, because it is the one that will liberate us from bondage. I thank you very much. [Applause.]] HON MEMBERS: Malibongwe! [Praise!]

The DEPUTY MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT: Igama lamakhosikazi! [The name of women!]

Chairperson, hon Minister for Provincial and Local Government, hon members, you know, my political teachings, where I come from, were that I should be honest to the people of this country. That is the kind of background that I come from, from my organisation.

Now, if we have to apply that strategy in this Chamber, it doesn’t matter how many spin doctors a party might have, but it has to admit that it was in power before and did bugger all. Nothing! To come here.

Mr M J ELLIS: Madam Chairperson: may I address you on a point of order?

The HOUSE CHAIRPERSON (Ms C-S Botha): Madam Deputy Minister, please take your seat?

Mr M J ELLIS: I think Rule 65 or Rule 66 of the House makes it quite clear that members of the House should not use unbecoming language, and I believe the hon Deputy Minister has just used unbecoming language, and I think she should withdraw it.

The DEPUTY MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT: Chairperson, I apologise and withdraw. Now, people should not come to this House and pretend that they did something, whereas they did nothing.

We are saying, hon Mr Doman, that we shall meet on the battlefield when we are going to vote. No amount of blowing hot air here in this Chamber is going to assist you. What we want to tell you today, Minister, is that everybody in this country can see that local government is getting stronger. [Applause.]

We admit that we have made mistakes in our path to strengthening local government. However, we can see that local government is gaining momentum.

Now, allow me to acknowledge the presence in the gallery of eminent friends and partners of the Ministry and the Department for Provincial and Local Government. Amongst those whose partnership is indispensable to our functional efficacy are the hon MECs who are sitting there.

U-Star, nabaya behleli phaya. [There sits Star and others.]

They are responsible for local government and traditional affairs. There are also the National House of Traditional Leaders, led by iNkosi Mzimela and other traditional leaders of our people, the leadership of Salga, representatives of the Local Government Seta, members of the audit committee, representatives of the Development Bank of SA, representatives of the Finance and Fiscal Commission, CEO of the Commission for the Promotion and Protection of Cultural, Religious and Linguistic Communities, CEO of the Commission For Traditional Leadership Disputes and Claims, and CEO of the Cities’ Network.

The local government elections held on 1 March mark the beginning of a second term of office for elected mayors and councillors since the introduction of our new system of local government in 2000. This is an important milestone in strengthening democratic participation on which our Constitution is founded.

Our system of local government is based on social dialogue, in terms of which communities and the public at large are required by legislation to influence and direct policy and development within their municipalities.

Indeed, the last term of local government was marked by achievements and challenges, achievements in that more of our communities now have access to basic services. The Department of Minerals and Energy notes that at least a total of 374 733 household connections were made in the rural nodes from 2002 up to September 2005, despite the challenges experienced in this sector.

These connections have contributed differently towards improving the livelihoods of these communities. For instance, provision of electricity for cooking, lighting and heating translates into lesser time being spent in collecting wood in some rural communities by women.

It is indeed undeniable that more people share in the hope of where we are headed as government. Although we experienced challenges, which manifested themselves in the manner and nature of public disturbances evidenced prior to the elections, the DPLG report on the review of the past five years of local government performance confirms that more effort should be directed towards improving greater public participation through izimbizo.

Ward committees have been established so that all social groups in wards are represented, including youth, women, children and people with disabilities. In rural areas the geographic model is used for the election of these representative structures, thereby ensuring that each ward has a voice in how its municipality should be governed.

In our development and democracy South Africa recognises that culture, religion and language are a central factor in the holistic development of a nation. It was befitting, therefore, that in 2004 we saw the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities, CRL, come into operation. We urged the CRL to utilise existing government structures, such as ward committees and IDP forums, to entrench their role of facilitating communications between communities and government as it pertains to such issues.

In 2005 we started the municipal izimbizo programme, targeted at engaging national, provincial, local and ward committees. Whilst we learnt that most ward committee members had been trained in understanding their critical role as linkages between the municipality and the community, we equally noted areas that inhibited the operations of ward communities.

We continue to encourage communities to participate in these structures and support our local government system. A handbook and a resource book were launched in February 2006 to close some of these gaps. Structures and accredited training programmes will also be rolled out in this term of office to ensure that we create a local government environment that is responsive, transparent and accountable to our communities.

Current legislation has transformed the composition of traditional councils to provide for elements of democracy: 40% of members to be elected, gender representivity, one third of members to be women. We are equally encouraged that traditional leadership now plays a part in the national, provincial and local spheres of government development initiatives and programmes. We envisage a partnership with traditional leaders that must lend a hand in uplifting the standards of living for the estimated 14 million people living in the rural areas.

Coming to the local government economic development, in the same vein, that we need to bring government closer to communities, it is necessary that we create conditions under which the local economy can grow and increase the flow of income and stock of wealth and target support to disadvantaged communities.

Women have a considerable role to play in making local economies work, and in many instances it is a decisive role. Around the world women are the drivers of small enterprises, co-operatives and social enterprises, owing to their ability to plan and budget, which often stem from their experience as carers and supporters of their families.

The government’s framework for stimulating local economies clearly indicates the need for sustainable community investment programmes, and municipalities have a large responsibility for seeing that available opportunities, particularly from the myriad of government finance programmes, are fully utilised at local level.

There is ample scope for innovative ideas and practice in this regard, which can frequently be developed through community- stakeholder participation. Sustainable community investment programmes look at how resources move through a neighbourhood or a community, and what impact that movement has on the people within that particular community.

The majority in the second economy are women, who are also in the remote rural areas, and are still trapped in high levels of poverty. This group is a priority for sustainable community development programmes.

Typical of the type of approach to encourage sustainable community programming is the Moutse Cotton Umbrella in Dennilton, in Mpumalanga. The cotton umbrella is a representative community-based organisation comprising 14 cotton-farming associations in rural South Africa under the programme.

Funded by the labour job creation trust, after identifying the area as a poverty pocket, it will benefit over 130 women farmers and has already created 150 new jobs, having begun producing cotton, despite a severe drought in the region.

Coming to the urban and rural development nodes, owing to immigration of men to the urban areas in pursuit of employment opportunities, women head most families in rural communities, or most families have one adult. Related to this is poor access to services and times spent obtaining water and fuel.

This makes it difficult for women to participate in structures outside the family as they are faced with the burden and responsibility of looking after children. The increased number of families that are affected by HIV and Aids worsens this situation. These factors have combined and are noticeable in the negative effect on participation of women in governance and development.

We believe, therefore, that the newly elected and increased representation of women in local government will add to reverse this undesirable trend. It is 50-50 now.

The interaction with community groups and enriching local government and local ownership of development processes, including participation in the initiatives that are aimed at the identification and prioritisation of developmental needs, is a critical cornerstone that defines our system of social dialogue.

It is against this background that in the implementation of the Integrated Sustainable Rural Development Programme, ISRDP, and the Urban Renewal Programme, government emphasised the need for developmental programmes to provide benefits and opportunities to the vulnerable groups, more particularly women, youth and the disabled.

Although minimum analysis has been undertaken on nodes, there is an indication that women and youth do benefit from these programmes directed towards geographic spaces.

According to the Department of Social Development, over a million people were receiving grants in the rural nodes in October 2005. This amounts to a total of R498 billion per month, and 84% of the people who receive grants are female. The majority of the people who receive grants are children and pensioners. It must be noted that by virtue of being primary caregivers, women become indirect recipients of grants.

Several income-generation projects that are being implemented in all the nodal areas have provided benefits to the vulnerable groups. Another example is the Goxe Cut Flower in Alfred Nzo District, which involves the cultivation of cut flowers for the local and export markets, and which has created employment for 111 people, 27 of them being women, 43 youth and 41 men.

Pertaining to disaster management, the heavy rains that occurred in the North West province between January and April 2006 resulted in flooding. This caused extensive damage to infrastructure in the Greater Taung Municipal area, leaving communities isolated, with six lives lost. These bore testimony to the vulnerabilities that we are still exposed to, and challenge us to continuously find smarter ways of responding to these unforeseen hazards. Apart from the fact that approximately 1 500 homes were completely destroyed and several thousand people were left without shelter, food or clothing, vulnerable groups such as women and children could not reach clinics or schools.

Good early-warning systems need to consider community vulnerabilities, as well as the hazards. The early-warning signs of vulnerability, are growing poverty, environmental degradation, populations crowded in risky locations, civil strife and lack of knowledge and preparedness.

Often, there are warning signs well ahead of a hazardous event, and we are confident that our national disaster management centre is gradually enhancing its capacity to detect and respond timeously. [Time Expired.] [Applause.]

The CHIEF WHIP OF THE MAJORITY PARTY: Madam Chair, could you please clarify for me because now that the issues of substance transformation are being put in front of the House, there’s very little excitement from the DA. [Laughter.]

The HOUSE CHAIRPERSON (Ms C-S Botha): Hon member, I understand that there’s a lot of excitement on account of the number of people that are listening but I don’t think that is a point of order. Thank you.

Mr M J ELLIS: Madam Chair, I must agree with you and I would just like to say to the Chief Whip that it’s so nice to see him in the House. He spends so little time here anyway.

The HOUSE CHAIRPERSON (Ms C-S Botha): Hon member, that’s even less of a point of order. [Laughter.]

Mr M J ELLIS: Madam Chairperson, I didn’t rise on a point of order; I simply rose.

The HOUSE CHAIRPERSON (Ms C-S Botha): Hon member, on that point, please sit down. [Interjections.]

Mr I S MFUNDISI: Chairperson and hon members, a look at the programme of action of government comes as a big challenge for the Department of Provincial and Local Government to rise to the occasion, because strengthening local government is the second priority after the Accelerated and Shared Growth Initiative for South Africa, Asgisa.

The responsibility of ameliorating relations among the three tiers of government will keep the department in check. Parliament has passed the Intergovernmental Relations Framework Act, Act 13 of 2005, to enable the necessary vertically and horizontal interaction among the three spheres. The deployment of community development workers to serve as the ears and eyes of government on the ground could not have come at a better time. Whatever problems that arise will be nipped in the bud.

In the wake of the local government elections that were held on 1 March 2006, there is more to write home about. Cross-boundary municipalities are no more, therefore blockages to development have been removed. All that remains in some areas, such as Merafong and Matatiele, are gripes, which we hope government will be able to handle. We hope that, as the Minister explained last week, those who have problems follow the proper channels of communication. They should go via Parliament.

A lot of time has been wasted on bickering over positions at municipalities, such as Mamuse in the North West and Cape Town in the Western Cape. The Mamuse issue is the most nonsensical as it involves councillors from the same party, namely the ANC. The Cape Town aberration will be healed by time. The UCDP calls on all councillors involved, regardless of which party they represent, to focus more on delivery of service and desist from struggling for personal aggrandisement.

We, in the UCDP, look forward to the day when the inhumane and unhygienic bucket system will be no more. Let us hope it happens even before the target date of 2007. We hope that the current councils will perform better than the last ones because they have undergone training. They were not left to swim and sink, as was the case with their predecessors.

There is no doubt that the disaster management will rise to the occasion in addressing the flood-ravaged areas as in Taung in the Bophirima District of the North West, parts of the Northern Cape and Eastern Cape that were ravaged this week. The UCDP supports the budget vote. [Time expired.] [Applause.]

An HON MEMBER: Izwelethu! [Our land!]

Mr M T LIKOTSI: Izwelethu! Madam Chairperson, this Budget Vote comes barely 85 days after the second local government elections held at the beginning of March this year. The PAC wishes to thank all loyal members and supporters who have passed the test of time by voting for the PAC of Azania in large numbers during the last elections. [Interjections.] You have stood with the PAC in her cause to bring about the total liberation in our country.

We are debating this budget 24 days after a summit of the PAC public representatives held in Bloemfontein from 29 April to 30 April this year where the PAC MPs, MPLs and councillors took a vow to work tirelessly to turn things around for the best in our country.

The country that is still faced with multiple problems raging from disgusting acts of rape, murder, the HIV/Aids pandemic, massive unemployment and extreme exploitation of the workers by big capital.

Indeed, there’s a new format of modern slavery where workers are less protected by labour legislations, working as casuals and retrenched at any given time. The PAC wishes to propose a lasting remedy to the problem facing us at both provincial and local government.

Discourage political appointments and employ rightful professionals to all strategic posts in government. This will bear fruit as service delivery demands professional and skilful personnel. A time to reward liberation struggle comrades is over. What is in demand is delivery, delivery and delivery.

Our frontline in all levels of government should be staffed by patriots who are politically deeply rooted and understand that the liberation struggle was all about the downtrodden, exploited and poor masses of our people, and not about the handful of elite who devour the riches of our country at will while the majority are struggling to make ends meet. The PAC supports the budget.

An HON MEMBER: Malibongwe! [Praise!]

Mr M M S LEKGORO: Malibongwe! [Praise!] Chairperson, hon Minister, Deputy Minister, members of Parliament, mayors, MECs present and officials of the department, I wish to thank you for this opportunity to address this august house and also thank everybody for having taken off from their busy schedules to come here and hear what I’ve to say. [Laughter.]

Now, hon Doman, let me just stay one minute on you. This thing called affirmative action is here to stay. You can insult it, you can disagree with it and whatever, but it is here to stay. You have to learn a lesson from it as a minority in the DA and ask for your own affirmative action there, because logic has it that you were suppose to be the Mayor of Cape Town but now, you see, they just bypassed you. [Laughter.] So, I think you have to learn lessons from affirmative action. [Interjections.] That’s what we are here for.

Our portfolio committee has taken time to look at the budget in detail and it is our considerable opinion that this Budget Vote will go a long way in making a meaningful contribution in our fight against poor service delivery and dysfunctional municipalities. We just came from a successful local government election in which the ANC was elected by the overwhelming majority of the people as their organisation of choice.

This third local government election confirmed to all South Africans and the world that our democracy is standing firm and we’ve reached an irreversible point in the evolution of the South African anecdote. This is something to celebrate because what it means is that it gives an opportunity to now focus on other important national goals. One key national goal that requires our attention is the need to develop local government institutions with the capacity to deliver service to the people.

It has become apparent in the last few years that there are serious service delivery capacity problems, especially in those municipalities located in small towns and in the rural parts of the country. These inefficiencies and incapacities cannot be blamed on the ANC. These are the legacies of the apartheid municipal system. That’s why the ANC is coming in here to correct the wrongs that the apartheid system has done. Anyone with good common sense cannot expect that in the short space of time of ten years we would have turn around the system completely.

It is critical that we support and ensure that we develop efficient local economic development strategies that are linked to the provincial growth strategies and the national development strategies. This will contribute to the alignment of spatial and economic planning and ensure that all spheres of government focus on the same things at the same time. Municipal councils are strategic government organs that are appropriately positioned to deliver on our promise to improve the quality of life of all of our people, especially the poor.

An HON MEMBER: [Inaudible.]

Mr M M S LEKGORO: Well, I will tell you what the problem is. During apartheid when I was arrested, I was poisoned.

The centrality of local government in our development agenda has not been given attention that it deserves. I suppose this was because in the last 10 years we were caught out in efforts to establish and consolidate local government structures and systems. Our local governments must serve as institutions and a system of municipal governance as advocated in the Local Government: Municipal Structures Act, and the Local Government: Municipal Systems Act.

This is not a task to be achieved overnight, especially in the light of the fact that here we are talking about over 283 municipalities to serve over 42 million people. To achieve results in this regard, local government must develop the capacity to raise own resources and to make sure that these resources are spent in line with the integrated development plans, IDPs and their local economic development strategies.

These challenges require that municipalities should be capacitated with skills in the field of organisation management and development, municipal financial management, strategic planning and project management. This is a major challenge because these skills are very scarce. They tend to be scarce even within the private sector. The transformation of the organs of state was identified by the democratic movement as one of the key strategic items that the democratic government had to attend to with immediate effect.

It is for this reason that government had to introduce complete new institutions of local government that are new in form and content, and had to achieve qualitatively different goals and objectives. These structures had to be fully compatible with the outcomes and impacts government used to achieve. In this regard, we can proudly report that a lot has been achieved and effective governance is taking root.

We must welcome the intervention that comes with Project Consolidate. Project Consolidate has gone a long way in improving the capacity of the department to develop a scientific understanding of the magnitude of the problems that the apartheid municipal system has created for our country, and to come with appropriate interventions. Through Project Consolidate, the department will provide hands-on support to weak municipalities in endeavours to facilitate the development of capacity of municipalities to discharge their mandate.

The department’s determination to improve its support to provinces and municipalities is demonstrated by the substantial increase in the provincial and local government transfers. The transfers have increase from R15,6 billion to R24,5 billion with equitable share rising from R9,6 billion to R18 billion in this financial year. These figures will continue to increase albeit in a reduced rate over the MTEF period.

From this year through to 2009, a total of R82 billion will be spent on provinces and municipalities. These amounts are delivered to municipalities through the Municipal Infrastructure Grant for capital expenditure and municipal systems improvement grant for capacity-building and local government equitable share for operating expenses. In addition to these – among those that I have mentioned – R10 billion will go to municipalities from the Water Affairs and Forestry, Transport and Minerals and Energy departments. We must also use the opportunity to make a note of the work done between the departments, Salga and local government’s Seta in developing skills that are required. In the recent past we have experienced municipal service protests in different parts of the country, especially in the Free State. These protests are an expression of grievances on the absence of infrastructure and services in these areas, although we must condemn the violence which was used in some of these actions.

Some of our detractors tend to use these developments to run a campaign aimed at portraying government as a failure. It is important to do more in these municipalities, but it is also important to note that government has started to do a lot of work in these areas. We should also note that service delivery backlogs that the ANC found when it ascended to political office in 1994 was too huge for any amount of resources to make a difference in 10 years.

We must make sure that the mass action that I referred to earlier is not hijacked by self-styled and self-proclaimed militants whose cause has nothing to do with the national democratic discourse. The burning of houses of councillors and other forms of property during the cross-boundary and service delivery protest is not acceptable and has to be denounced.

We call on government to bring the perpetrators of these heinous actions to book and to provide meaningful support - financial and emotional - to the affected families, because these people have done nothing wrong but just participated in a legitimate political system of our country.

The increase in the provincial and local government transfer also means that government will be more equipped to increase the impetus of service delivery to poorer municipalities. These will also facilitate government’s efforts to eliminate the bucket system whose indignity was imposed on our people by the apartheid municipal system.

An HON MEMBER: [Inaudible.]

Mr M M S LEKGORO: Yes, that’s exactly what we are talking about, if you were listening. Government has resolved to mount a frontal attack on poverty and underdevelopment. To this end, it has introduced the provision of free basic services and wants to create an institutional mechanism to ensure that this happens. It is obvious that a lot more still need to be done. We still need to expand these services to other communities that never had the basic infrastructure to facilitate the delivery of services.

All these challenges outlined above are the direct legacy of the apartheid past, of which some of you are actually the beneficiaries. Not a single of these weaknesses can be blamed on the ANC-led government. Despite these challenges, our government and the Department of Local and Provincial Government have made great strides in positioning our country on the right path of effective service delivery and development.

Our institutions of government have, for the first time in history, made ordinary people feel part of the governance system and feel the ownership of that government system. The ANC supports the Bill. I thank you. [Applause.]

Mr R B BHOOLA: Thank you, Chairperson. It is via this auspicious department that the mechanics to deliver to ground level is set in motion. The MF welcomes the department’s 23% nominal growth for which transfers naturally constitute 98%. We continue to view the department as our hawk’s eye in rural development and urban renewal.

While many municipalities have matured in delivery, some remain challenged by the realities of minimal resources, skills shortages, and the MF, jointly with the department, seeks to turn this around.

We note that the department is experiencing a staff shortage, explaining its saving over the last year. The MF, in this regard, expresses its concern as to why these posts have not as yet been filled and notes that this shortfall of staff certainly hinders service delivery that needs to be addressed urgently.

We next turn our attention to free basic services, where we are especially concerned at how effectively and efficiently municipalities have been providing free basic services, and whether the department has been monitoring municipality delivery in light of this. We further enquire as to how many households have benefited from the free basic services. Certainly, the review of this shall give us insight into the success of this programme.

Next, we look at the serious opposition to demarcation of areas and the relocation of areas under the different municipalities. The MF hopes that all the demarcation challenges have been settled to enable municipalities to identify those to which its services shall be rendered and in turn enable residents to pursue their needs and requests to the correct municipalities.

The MF believes that our ward councillors play an important role in service delivery. It is crucial that councillors familiarise and educate themselves on the economic status, activities, unemployment and poverty in their areas. This valued information shall greatly assist in service delivery, and in meeting community needs.

Even where municipalities continue to be challenged by minimal resources, indications of higher levels of growth shall determine the improvement of service delivery. Looking at the department, overall, the MF does however embrace that if the shortage of technical and managerial skills shortages at municipalities and institutional management capacity is addressed, it shall serve to balance operational efficiency and effectiveness between provinces and municipalities.

Lastly, the intensification of intergovernmental relations between the departments, the varying spheres of government and the provisions of support of these to local government, is the true determinant of service delivery, nation building, growth and social development.

The MF supports the Vote. [Applause.]

Ms M M GUMEDE: Chairperson, Members of Parliament, distinguished guests, ladies and gentlemen, comrades and friends, with due respect, can you allow me just to use one sentence in Afrikaans, so that Mr Doman can understand me correctly.

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Go ahead ma’m.

Ms M M GUMEDE: I am making this special request because I don’t know Afrikaans that well. Mr Doman,

… in Afrikaans sê hulle: As jy ’n slang kry wat lê in sy gat, moenie met hom gaan lol nie. As hy daar uitkom, dan pik hy. [Gelag.] [In Afrikaans they say: if you find a snake in its hole, don’t bother it. If it comes out of the hole, it will bite you. [Laughter.]] The HOUSE CHAIRPERSON (Mr G Q M Doidge): Dit was goeie Afrikaans, baie goeie Afrikaans. [That was good Afrikaans, very good Afrikaans.]

Ms M M GUMEDE: I mean to say that Mr Doman must be aware that people who live in glasshouses should not throw stones. It is not the first time that I tell you, Mr Doman. Your house is built of glass. If one can just pass with one stone, that whole house of yours will be broken down. [Interjections.]

I suspect Mr Doman is not one person. He must have a duplicate, because whenever we are in the portfolio committee, he is the one who comes up with proposals and, in turn, we support him. Then when he comes to this podium he becomes a different man. [Laughter.]

Maybe to tell Mr Doman the last thing so that he can regain his senses, he is always telling us that he has been in this Parliament for 17 years. But he takes so long to understand issues, niyangilibazisa, [you are delaying me,] unlike me who has been in this Parliament for only 17 seconds. [Laughter.] I wish he could become a 17-year-old MP and not a 17-second MP like myself.

It is with pleasure, again, today to be given this opportunity of delivering this budget vote speech for the Department for Provincial and Local Government, which will be focusing mainly on the strategic plan for 2006-11. This budget vote deals with the strengthening of the Department for Provincial and Local Government for them to have capacity and capability, which are the only things that Mr Doman knows about the local government. [Laughter.]

There is a programme that has been rolled out, maybe to close that gap for the hon Mr Doman - with due respect.

Whenever we speak of strengthening something, the first thing that comes to one’s mind is the budget - whether it will allow one or not. That is why the Minister of Finance, Comrade Trevor Manuel, has increased our budget from R82 billion to R92 billion this year, with R82,9 billion going to the municipalities.

South Africa, like many African countries, had a very strong culture of traditional leadership of kings and queens that governed the lives of African people for centuries. However, today, the ANC government has transformed that leadership into a leadership that leads in a democratic way, and has set a national framework, norms and standards to define the place and role of our traditional leadership within the system of democratic governance.

In anyway, out of all your difficulties of 48 years, Mr Doman, we have managed to have 284 municipalities, focused on growing local economies and extending the provision of services previously neglected by your apartheid government. Amen. [Laughter.]

By July 2005, 67% of the population had access to free basic water, whilst 64% of South Africa’s 284 municipalities were providing free basic electricity to 49% of the population.

Bakithi nina enilapho phezulu ngicela ukunitshela ukuba uma ngabe ugesi ungakafiki kwakho uzofika noma awukabi namanzi egcekeni … [To those of you in the public gallery, I want to tell you that if you don’t have electricity, you will get it or if you don’t have potable water …] Local government has got a new strategy that they have developed so that they can accelerate their delivery services. It does not mean that bayahluleka [they are incapable]. No, it is because we are the largest population in the world. That is why in South Africa, the ANC-led government has noticed that without us, you will never succeed, Mr Doman. If you turn to me, maybe, unlike the hon Mr Seremane, who is bait for the DA, isilumiso [bait.] [Laughter.]

The past training workshops held nationally … musani ukuhleka kakhulu man [please, don’t laugh.] [Laughter.] [Interjections.]

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order, hon members.

Ms M M GUMEDE: The past training workshops held nationally to induct new and old councillors gave them the strength to execute their duties efficiently. The Department for Provincial and Local Government budget vote will encompass the implementation programme of Project Consolidate.

I am saying this with pride, because it is the language that I never learned at school. I just picked it up when I was old within the ANC-led government. If I had not listened to the politics of the ANC, I would never have matured in politics. That is why you should belong to the movement of the ANC.

Project Consolidate is a two-year programme that allows national and provincial government, together with the private sector partners, to find new ways of working with local government. The target focus of Project Consolidate is to realise the people’s contract and mobilise social partners around this programme.

I heard somebody dreaming during the day in this budget vote, saying that the ANC must be aware of the votes. You know, when we went towards the elections, there were a lot of riots that were taking place. In fact it were demonstrations, and somebody was overwhelmingly excited, always saying in this Parliament that the ANC is going to lose the elections. That was a demonstration to show you that it is and vice versa. The ANC is the only party and the only government that we are dying for in South Africa. [Applause.]

The implementation of the Batho Pele programme is not favoured by councillors and public servants. It is an important delivery pillar of service delivery. Batho Pele, which means “mense eerste” [people first] is not a slogan; it marks the beginning of humankind. It means that whatever we do, we must always put people first.

Forty something years back, when the apartheid government was in place, I thought that to be white meant you were a small god. You couldn’t just go to people because if you went to us, Mr Doman,

… ek sal jou met dié swart kleur smeer. [… then I will tar you with the black brush.]

There is a dire need to put financial resources into rural development to create new economic nodal points. The department must enforce finance legislation in all municipalities, with special focus on rural municipalities. The ward committees and community development workers in our municipalities are also part of strengthening the Department for Provincial and Local Government. Not very long, they will also be trained, as they work hand in glove with our local municipalities.

Let me first congratulate my Minister, together with my Deputy Minister and the Minister of Housing, for visiting our Taung area that was flooded. Their delegation was led by the hon Deputy President. I wonder if Mr Doman were to be the Deputy President, if he would go there. [Laughter.] The present floods in Taung district have exposed the amount of poverty, underdevelopment and years of neglect and deprivation, mostly caused by the previous apartheid government. [Time expired.][Applause.]

Mr P J NEFOLOVHODWE: Chairperson, Azapo has noticed that the budget that we are discussing has gone a long way to provide for the improvement of services for citizens, particularly those who are living in municipalities that are not in the position to stand on their own. What is needed now is to monitor that the resources allocated reach the targeted sections of our society, particularly the poor. The delivery mechanisms should be improved; training and capacity building should be intensified. These measures are necessary in order to improve the quality of service.

It is not uncommon for the poor to expect their democratic state to ensure that they have access to basic and quality services as well as economic opportunities. It is not uncommon that when services are not delivered, citizens become unhappy, and in some instances, even begin to question the basis of their support for the new dispensation.

It is indeed reasonable for citizens, particularly the poor, to expect support from those like us, whom they have elected. It is for this reason that Azapo is concerned by a tendency prevalent in some municipalities who depend on outsourcing key services to consultants, who in return do not deliver services to the satisfaction of communities. At the same time, these municipalities refuse to be held responsible for the poor services rendered by the consultants.

In rural areas, for example, Eskom is supposed to heed the call by national government to continuously and progressively intensify the supply of electricity to communities. This is not happening at the pace intended. In some instances, Eskom pleads budgetary constraints or the absence of an agreement with a particular municipality.

Eskom is a parastatal, and it should be made to understand its mandate and responsibility for development. Azapo supports the Budget Vote. [Applause.]

Ms L M MASHIANE: I am “L M” not “B L”.

The HOUSE CHAIRPERSON (Mr G Q M Doidge): We apologise for that. We will ask the Table to correct the record.

Ms L M MASHIANE: Can you see me? [Interjections.] If you don’t see me, you will hear me. You have no choice.

Chairperson, hon Minister Sidney Mufamadi, hon Deputy Minister, Nomachala Hangana, thank you very much hon members, and hello to our dear friends in the in the gallery there.

In her presentation to the Local Government Budget Vote hearings, the Director-General of the Department of Provincial and Local Government, Ms Lindiwe Msengana Ndlela, said that the budget of R82 billion within the DPLG over the Medium-Term Expenditure Framework period represents a financial commitment and contribution to improve performance at provincial and local government level.

While this is welcomed, the department must however continue to intensify its support to other delivery arms of government to ensure that the spread and distribution of finances speaks to the people on the ground, in terms of providing a better life for all. We think the department has done well, in the last financial year, in terms of meeting the largest part of the targets, as encapsulated in the governance’s programme of action.

However, we believe that the department should now do more in terms of monitoring and evaluating the performance of provinces, if it wishes to fully achieve and fulfil its developmental mandate. If this is not taking place, then we must, as politicians, begin to examine whether the department is in itself capacitated enough to carry out its tasks.

It would be gross neglect if we do not do this, as the department is better placed to give leadership to other institutions of the state.

The current work of the department puts more emphasis on national and local government, but places lesser focus on provincial government, as it is, regrettably, the spheres faced with continued underspending. This is also in the light that provinces are also positioned to assist local government in developing both infrastructure and capacity to deliver services. For us, this is an area of concern.

I would like to reiterate that this year’s budget registers staggering improvements, and the developmental initiatives by the department are consistent with our national agenda. However, in our observation, we feel that the money set aside for training will not make the sort of impact we want to see in preparation for the type of capacity the country needs.

The department needs to mobilise adequate resources, and seriously look at additional resources for training. Therefore, the current resource allocation for capacity and training across local government does not seem to be having the desired developmental outcome.

As the ANC we want to see ward-based integrated development plans, because we believe only ward-based IDPs have the capacity to act as the driving force for resource allocation in municipalities. The department must continue its good work in addressing service delivery and managing capacity in a number of municipalities. We support Project Consolidate as a base for improvement, but we would like to see these municipalities out on their own, as viable delivery arms of our developmental state.

The ANC-led government has long recognised the need to strengthen local government by providing support plans to make local government work better. That is why the ANC is determined to make sure that local government plays it role in the people’s contract to create work and fight poverty. Therefore, we call on all South Africans from all walks of life to work together to achieve the objectives of creating work and fighting poverty in the spirit of co-operation.

Our message is clear. The basic needs of the masses of the people must be addressed. The creation of jobs, houses, the introduction of electricity, building of schools and hospitals, providing free running water, paved roads, etc. are our priorities.

The ANC supports the Budget Vote. I am sure Mr Doman is happy that I did not deal with him today.

Mr S SIMMONS: Hon Chairperson, Minister, Deputy Minister and colleagues, in the recent past, there have been numerous advocacies for this Department of Provincial and Local Government to address the problems relating to poor service delivery at local government level. Unfortunately, little of these advocacies were accompanied with realistic practical proposals to address these problems.

We would be misleading ourselves if we maintained that the department was totally passive in producing remedial actions. The hon Minister earlier pointed out his department’s plan for ensuring improved levels of service delivery. The United Party welcomes this.

Dit het te veel van ’n gewoonte geraak in hierdie Huis om met groot entoesiasme en doelgerigtheid, programme en inisiatiewe aan te kondig wat probleme aanspreek, om maar net op die lang duur skipbreuk te ly. Dit is om hierdie rede dat ek graag daarop wys dat dit blyk dat die mislukking van sulke programme en inisiatiewe hoofsaaklik die gevolg is van die afwesigheid of onvoldoende uitleg van konkrete, praktiese en veral meetbare maatstawwe en teikens vir die uitvoer van sodanige programme. (Translation of Afrikaans paragraph follows.)

[It has become too much of a habit in this House to announce, with great enthusiasm and purposefully, programmes and initiatives addressing problems, only to fail in the long run. For this reason I would like to point out that apparently the failure of such programmes and initiatives is mainly as a result of the absence or inadequate setting out of concrete, practical and especially measurable criteria and objectives for the implementation of such programmes.]

The bottom line is that the remedies have been formulated and are in the process of being implemented. I hope the governance aspect of municipalities will indeed become realistic through policy guidance from the governmental agencies to redesign the policies and programmes.

In order for municipal development capacity to be improved, a great deal of effort needs to be expended by national and provincial departments. Time will only tell if these latest efforts from the hon Minister and his department will result in municipalities becoming real developmental facilitators. I thank you. [Interjections.] You can give me as much as you want to.

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Hon member, your speaking time is over.

Mr S SIMMONS: What seats? In which election?

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Hon Simmons, will you leave the podium, please.

Mr M M SWATHE: Chairperson, as my colleague argued, we need a new approach about a number of matters in local government if the second term is to be deemed a success.

Firstly, I want to deal with finances, which, to a large extent, determine everything. The DA fully endorses the intentions of the Municipal Finance Management Act. The extent to which the Municipal Finance Management Act will be implemented and complied with will go a long way to determine the success of the local government in the next five years.

To ask the question whether the capacity exists to do this is to know the answer. Extra care should be given to attract financially skilled people to municipalities to appoint on merit and to concentrate on this terrain in training.

The total debt owed to municipalities is now over R32 billion and is rising by R3 billion a year. Councils should exercise the political will to implement their policies in regard to credit control, indigent relief and debt collecting.

If this department and the provincial departments of local government really want to make a difference they should concentrate on assisting municipalities around finances.

One of the big failures of the Minister and the ANC is to get people to pay for their services. The Masakhane Project has come and gone. The project has been researched and unpacked at conference after conference. What we need now is action, and we need the Minister to play a much more active role in solving this challenge.

What we further need in this new term is that money intended for infrastructure does not go unspent. As the DA has stated repeatedly in the past, we applaud the huge sums the government make available for infrastructure. This addresses the backlog and also creates jobs. It is unacceptable that money is not spent in the budget cycle it is intended for.

A huge challenge is also developing in terms of the maintenance of old and new infrastructure. Our country can ill-afford to let this infrastructure deteriorate. To this very end, there is still a drastic shortage of skilled engineers and other technical employees at municipalities. [Interjection.]

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Are you rising on a point of order, hon member?

Mr C V BURGESS: No, hon Chairperson. I just wanted to know whether the hon member will take a question.

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Are you able to take a question, hon member?

Mr M M SWATHE: No.

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Unfortunately not, Mr Burgess. Please proceed, hon member.

Mr M M SWATHE: Municipalities around the country last year failed to spend R1,2 billion of the Municipal Infrastructure Grant because of lack of skilled engineers.

It is worrying indeed that 74 out of 231 local municipalities have no civil engineers, technologists or technicians, 45 have only 1 civil engineer and 186 local municipalities have no civil engineers. Minister Mufumadi must now apply his mind to this problem or else people will not receive the services that they are entitled to. [Interjections.]

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Are you rising on a point of order, hon member?

Ms M M GUMEDE: Chairperson, some members in this Chamber like to be addressed as hon members’’ but when they speak to other people they say that Minister’’, ``that so and so’’. Yet to the women they would say, out of order, chairperson – hon. Are they the only hon members and others not hon, yet we are holding the same status in this Parliament?

The HOUSE CHAIRPERSON (Mr G Q M Doidge): I don’t think that is a point of order. Hon member, please proceed.

Mna M M SWATHE: Ke a leboga, Modulasetulo. Se se re tliša go bothata bja tlhokego ya ditirelo tša motheo tša go se lefelwe dileteng tša magaeng. Ge ditšhelete di sa sepetšwe le go abja ka hloko, gona ditirelo tša motheo tša go se lefelwe e tla fo ba ditoro.

Re kwela mebasepala ya dilete tsa magaeng tša go swana gaSekhukhune, Waterberg, Molemole, Aganang, Nkumpi-Lepelle le Blouberg bohloko. Tše ke dilete tšeo ke bonego di sotlega le ge mebasepala ya tšona e le ka gare ga lenaneo la tlhabollo – nodal points. Tlhokego ya meetse, ditsela tša go išega le mohlagase e sa le tlhoba-boroko. Lenaneo la tlhabollo ya dilete tša magaeng – ISRDP - ga le bonagale go thuša go lwantša bodiidi.

Ditšhaba di lla ka go se rerišwe ge go dirwa mananeo a tlhabologo – IDP. Ka tsela yeo IDP ga e sepedišane le dinyakwa tša setšhaba. Mananeo a go hloma mešomo le dikgwebopotlana, go swana le LED a fiwa bagwera le meloko. Baswa ba mabjoko a bogale ga ba fiwe monyetla ka ge ba se na kamano le basepidiši ba mebasepala.

Ditšhaba di kwa bohloko ka tsela yeo di sa rerišwego ka kabo ya ditirelo. Ke ka lebaka leo re bonego go na le ditšhupetšo tša boipelaetšo ka megwanto naga ka bophara. Go thwalwa ga bašomi ba tlhobollo ya setšhaba – community development workers – go hlotše mathata le go se kwišišane magareng ga maloko a di-ward committee ao a sa hwetšego meputso, thekgo ya mašeleng le didirišwa tša maleba. Bona ba bona ba šomela lefela mola bašomimmogo ka bona ba lefšwa. Taba ye e hlotše go se kgotsofale ditšhabeng.

Re le ba DA, re ka amogela gore tšhelete yeo e aroganyago setšhaba ka diripa tše pedi e šomišwe go hlabolla batho, go swana ditirelo tša go se lefelwe tša kabo ya meetse le mohlagase go bao ba di hlokago.

Ke a leboga, Modulasetulo. [Nako e fedile.] [Legofsi.] (Translation of Sepedi speech follows.)

[Mr M M SWATHE: Thank you, Chairperson. This brings us to the problem of lack of free basic services in some rural areas. If money is not properly allocated or properly used, then the free basic services will just remain a dream.

We sympathise with municipalities like Sekhukhune, Waterberg, Modimolle, Aganang, Nkumpi-Lepelle and Blouberg. Even though their municipalities are busy with the development programme, these areas are still suffering. Lack of water, proper roads and electricity is still a nightmare in these areas.

The Integrated Sustainable Rural Development Programme, ISRDP, doesn’t seem to be helping the needy people.

People are complaining that the Integrated Development Programmes, IDPs, are initiated without their consultation. That way IDPs do not meet the people’s needs. Job creation and entrepreneurship programmes like the Local Economic Development Programme (LEDP) are full of nepotism. Youth, with potential are not able to get the opportunities, as they have no relations with the management at the municipalities.

People are complaining that they are not consulted on issues of allocation of basic services. That is why we see demonstrations and marches in the whole country. The employment of community development workers has created problems and misunderstandings between voluntary members of the ward committees, financial support and proper services. The voluntary members are aware that they work for nothing whereas their colleagues are getting paid. This has caused dissatisfaction among the people.

We, as the DA, would appreciate it if the money that is dividing the people into two groups is instead used for their development, like free basic services such as water and electricity to those who do not have.

Thank you, Chairperson. [Time expired] [Applause.]]

Mr S A MSHUDULU: Hon Chairperson, hon Minister Mufamadi, hon Deputy Ministers, hon members, distinguished guests and the House at large, maybe before I talk ``sense’’ let me deal with all the unwanted truth. Firstly, I would like to talk to the left as I stand here. One is that hon member Doman, your behaviour reflects on who you are. You made reference to the past mistakes. I just want to advise you that if you are wise enough to use Cape Town as a case for analysis when the tools of analysis and the model you are using is wrong, the outcome is going to be misleading. [Interjections] Secondly, you spoke about the decisions taken behind closed doors. You have a short memory because this Parliament was closed to us as black people for years until 1994. [Interjections.]

On the matter of corruption, we believe, regarding your silence on your failure as an MEC in this province, that this should have been shared with us. On the Project Consolidate lamentations, I have to advise you in isiXhosa.

Izinja zikhonkotha imoto ehambayo. [Dogs always bark at a moving car.] [Laughter.]

Hon Smith, it is unfortunate that although you have agreed regarding the issue of traditional leaders, unfortunately you must have benefited thereafter from what Nkosi Nonkonyana has shared with us. You also made reference to the electoral process. Let me remind you that transformation of local government included three phases, and we are in the last phase that includes establishment, consolidation and implementation. Systems that were not in place in the past are in place today. [Interjections.]

HON MEMBERS: [Inaudible.]

Mr S A MSHUDULU: I will not join you in your imbecility. [Laughter.] The last one is that it is unfortunate, hon Swathe.

Ngoba uyayibhalelwa intetho yakho, mntan’ am. Yonke into oyithethayo awuyazi. [It is because someone writes your speech, my child. You don’t know what you are saying.] [Laughter.]

Firstly, I support the budget on behalf of the ANC. The reason I support it is because I represent an organisation that stood the test of time in terms of representing the plight and the needs of the poorest majority of this country, an organisation that is founded on the will of the people, as contained in the Freedom Charter that was signed in Kliptown in 1955 when it said: The People Shall govern! This people’s contract to advise the vision of the Freedom Charter is celebrated this year through an ANC-led government’s commitment to dedicate all government service delivery endeavours to a participatory democratic process guided also by the RDP founding principles of people-driven, people-centred service delivery as well as the one that is founded on the theme: The People Shall Govern! Just to educate you that this is the principle that no government can justly claim authority unless it is based on the will of the people as enshrined in the country’s Constitution. This further affirms that by involving the people in the process of government their involvement is not limited to the right to vote.

Let me dedicate my speech to community participation and public participation to the most marginalised poor – women, the youth and those with disabilities, including the rural poor – more especially in the areas that have known social and economic exclusion for more than 100 years like Evaton, Alexandra and Bekkersdal in Gauteng – which is my constituency. My motivation on this subject as related to today’s budget is well informed by a political directive coming from our President Thabo Mbeki in his state of the nation address this year. In his reference to the historical context from which South Africa emerged, he highlighted events that shaped the country’s history, which I believe we celebrate today through people- driven, people-centred service delivery, of which we are clearing the mess you have created as you make noise over there. His reference to the Codesa Declaration of Intent reminded us of the commitment by all participants to freedom, equality and security for all irrespective of race, colour, sex or creed.

The concept of community participation in this context has to be understood within the Municipal Systems Act under the Preamble, which I will quote to educate the DA on the other side:

Whereas the system of local government under apartheid rule failed dismally to meet the basic needs of the majority of South Africans;

Whereas the Constitution of our non-racial democracy enjoins local government not just to seek to provide services to all our people but to be developmental in orientation;

Whereas there is a need to set out core principles, mechanisms and processes that give meaning to the developmental local government and to empower municipalities to move progressively towards a social and economic upliftment of communities and the provision of basic services to all our people, and specifically the poor and the disadvantaged;

Whereas a fundamental aspect of the new local government system is the active engagement of communities in the affairs of municipalities of which they are an integral part, and in particular planning, service delivery and performance management;

Whereas the new system of local government requires an efficient, effective and transparent local public administration that conforms to constitutional principles …

I would like to affirm what hon member Tsenoli, the chairperson of the Portfolio Committee on Local Government, said earlier that it is time that people go into their archives and begin to go into the white Paper on Local government so that you can be empowered to understand where we stand.

It is therefore opportune in this instance against the background and the founding mandate given to the ANC through the provincial government’s outcome to outline some of the challenges that have been referred to earlier, some of the challenges that we face include of course – and I take advantage of the presence of our mayors here because these are the challenges we face unclear in absence of IDP strategy in some municipalities that do not have capacity an IDP that cannot be translated into implementable programmes as you would know in terms of project plans, short-term or quick-fix programmes that are not sustainable and have no impact on citizens due to no consultation. I have an experience of having attended all IDP meetings in my area in Vaal. So I am not speaking from textbook experience.

Deliberate exclusion of citizens in developmental projects is a problem also if they are excluded more so that they have little awareness of council’s priorities. The challenges we face here on the ground is that the people out there seem not to know what councils’ priorities are because of some IDPs that are done or constructed by technocrats.

Also, there is this matter of departmentalism and silos where departments sometimes would have programmes that do not talk to one another. Then it creates a problem in terms of alignment with the budget. This is one area I have to elaborate more in Sesotho …

… ya Sesotho, jwaloka motho ya tswang Lekwa. Ho tsohle tsena, re kenyelletsa le kaho ya matlo, ditulo kapa mabala a boithabiso, le ditulo tsa ho bala, dikolo le ditliliniki, tlhokomelong ya tsona, ha ho ka moo re ka etsang hore batho re se ke ra ba kenyeletsa ho tsona kapa re ba siye morao. Ho ngangisano ena ya kajeno, ho bohlokwa hore re kgone hore re tsebise bao ba phehisanang le bajete hore re keteka dilemo tse leshome kajeno tsa Molaotheo wa rona. Molaotheo ona ke ona o etsang hore re be le bokgoni ba hore mmuso wa rona, haholo Lefapha la Mmuso wa Selehae, le eteletsweng pele ke Ntate Mufamadi, le thuse setjhaba sa mona hore se kgone ho phela.

Re boele hape re bontshane hore ho ANC, eo e leng yona e eteletseng mmuso wa selehae kajeno, ho bile le setlamo, moo le tsebang hore pontsheng ya mang kapa mang, makhanselara a rona a saenne tumellano ya hore ba tla bitsa dikopano ka mora kgwedi e nngwe le e nngwe kapa ha ho hlokahala. Le … [Nako e fedile.] (Translation of Sesotho paragraphs follows.)

[… of Sesotho, as a person from Lekwa, in all these we include the building of houses, places of recreation, libraries, schools and clinics. In their maintenance, there is nothing that we can do to exclude or leave the people behind. In today’s debate, it is critical to tell those who are against the budget that we are celebrating the decade of our Constitution. This Constitution enables our government, especially the Department of Local Government led by hon Minister Mufamadi, to help the community to make a living.

We must also show that the ANC, which is leading the local government today, had an agreement, where our councillors signed the agreement, publicly, that they will call a meeting every month when necessary. And… [Time expired.]]

The MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT: Chairperson, all who participated in the debate, especially the Chairperson of the Portfolio Committee, have a right to an expression of my thanks and appreciation. I fully appreciate the views that they so generously shared with us.

Hon members will recall that it is exactly a year and six days from the day that our Ministry commended a Budget Vote to this House. We consider it our duty to account to the people of South Africa through the House. It is for this reason that we appear before you, with a view today, to recount the progress made from the time of our last interaction. However, also to identify challenges that lie ahead and to employ you to lend a hand to the efforts we are making in order to meet those challenges.

As I said, indeed, we value the many insights that you shared with us, including the advice that was given. An important piece of advice given to me personally was from the hon Swathe, who advised me to exercise my mind. However, he refused to exercise his mind to a question that one hon member proposed to raise. [Laughter.]

Maybe it is because the performer was alone on the stage without the privilege of leaning on the choreographer. [Laughter.] He proceeded to lament about the integrated sustainable rural development strategy, which he says is not visible. Not everything you do not see is invisible. [Laughter.]

The hon Likotsi took this opportunity to thank the masses of Azania for coming out in large numbers to vote for the PAC in the 1 March local government elections. He went on to say, “Time to reward struggle, comrades, is over.” In this regard, may I observe that your attitude is the same as that of the voters: they want parties of substance. [Laughter.]

As I said earlier, I stood on this podium to recount some progress that has been realised. I didn’t do this recounting of progress with a view to disappoint anybody, because I assume that we don’t have and we can’t have here, doom mongers, who regard progress as awkward news.

Mr Doman made an observation that all over the country, and I am quoting you verbatim, “people are revolting against councillors.” Well, what we refuse to do was to fall for this kind of overgeneralization. That is why I made reference to extensive studies that were conducted, because overgeneralization tends to lead to imprecision.

However, we need to try and understand why this propensity for overgeneralization. Why is Mr Doman adept at nothing but only at instrumentalising hysterical hyperbole? He does all this in search of a remedy for his phantom pain, or maybe, as hon Swathe suggested, to make a case for what hon Swathe would call “the argument of my colleague”. [Applause.][Laughter.]

The hon Doman proceeded to give me advice, which reads as follows:

Salga should be turned around, and the Minister must consider withholding funding for Salga.

I don’t know why he seemed so convinced that he was proffering advice of persuasive substance. He advises me to build and to destroy Salga.

The hon Smith said many things about local government that I appreciate, and what we need to do to improve its performance. However, his unfounded assertion about the alleged dishonesty with which government deals with the institution of traditional leaders, devalues some of the important things he said in this debate. This is a tired, old argument that he has been putting forward over a long period of time. I have, frankly, no appetite to engage in the dialogue of the deaf with him. [Laughter.]

He must, for once, remove his narrow party political blinders, interact himself with traditional leaders, premiers and MECs outside KwaZulu-Natal, and he will be educated about the excellent relations that exist within our provincial and local spheres of government, at least, everywhere else in the country.

The overall sound relations that exist between government and the institution of traditional leadership should not be seen through the prism of what is happening in one province. However, this does not detract from the fact that what is happening in KwaZulu-Natal is a matter of grave concern to us. It is for that reason that the Chairperson of the National House of Traditional Leaders, Nkosi Mzimela, and I have been in discussions, which led to an agreement that we are going to intervene and exorcise this ghost out of the body politic of our country once and for all. I thank you. [Applause.]

Debate concluded.

House adjourned at 19:05. ____

            ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Draft Bills submitted in terms of Joint Rule 159

(1)     Health Professions Amendment Bill, 2006, submitted by the
     Minister of Health. Referred to the Portfolio Committee on Health
     and the Select Committee on Social Services.

(2)     Firearms Control Amendment Bill, 2006, submitted by the
     Minister of Safety and Security. Referred to the Portfolio
     Committee on Safety and Security and the Select Committee on
     Security and Constitutional Affairs.

1. Calling of Joint Sitting

   The Speaker and the Chairperson, on 24 May 2006, called a Joint Sitting of the National Assembly and the National Council of Provinces, as follows:

            CALLING OF JOINT SITTING OF PARLIAMENT
   

   The Speaker of the National Assembly, Ms B Mbete, and the Chairperson of the National Council of Provinces, Mr M J Mahlangu, have, in terms of Joint Rule 7(2), have called a joint sitting of the Houses of Parliament for Thursday, 25 May 2006 at 11:00 to conduct a debate in recognition of Africa Day.

B MBETE, MP        M J MAHLANGU, MP
SPEAKER OF THE                           CHAIRPERSON OF THE
NATIONAL ASSEMBLY       NATIONAL COUNCIL OF
             PROVINCES”

TABLINGS

National Assembly

1. The Speaker

 1) Medium Term Strategic Plan of the Public Service Commission for
    2006/07 to 2008/09.


 2) Letter from the Minister for Justice and Constitutional Development
    to the Speaker of the National Assembly, dated 25 April 2006,
    informing her of the upliftment of the provisional suspension of
    Magistrate M S E Khumalo from Amsterdam.

    Dear Madam Speaker


    UPLIFTMENT OF PROVISIONAL SUSPENSION OF A MAGISTRATE, MR M S E
    KHUMALO FROM AMSTERDAM
    A report on the provisional suspension of Mr Khumalo from office
    with effect from 22 August 2005 has been tabled in Parliament on 23
    August 2005. It was done in terms of 13(3)(b) of the Magistrates
    Act, 1993. Mr Khumalo’s provisional suspension has since been
    confirmed by both Houses of Parliament in terms of section 13(3)(c)
    of the Act (by the National Assembly on 30 October 2005 and by the
    National Council of Provinces on 15 November 2005).


    I have in the meantime received a report from the Magistrates
    Commission requesting me to uplift Mr Khumalo’s provisional
    suspension. A copy of the report is enclosed herewith. As you will
    note, the Magistrates Commission has decided to terminate its
    inquiry into Mr Khumalo’s fitness to hold office in relation to the
    incident in respect of which he was provisionally suspended.
    Accordingly, the basis for his provisional suspension fell away. I
    have therefore decided to uplift his provisional suspension and to
    instruct the Magistrates Commission to arrange for him to resume
    his duties with immediate effect. Accordingly, the matter may be
    regarded as finalized.


    With kind regards


    Signed
    MS B S MABANDLA, MP
    MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT

COMMITTEE REPORTS

National Assembly and National Council of Provinces

1. Report of the Joint Standing Committee on Defence on Deployment of SANDF to the Union of Comoros, dated 19 May 2006:

The Joint Standing Committee on Defence, having  considered  the  letter
from the President on the  deployment  of  the  South  African  National
Defence  Force  (SANDF)  to  the  Union  of  Comoros,  referred  to  the
Committee, reports that it has concluded its deliberations thereon.

National Assembly

1. REPORT OF THE PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT ON THE TABLING OF ANNUAL REPORTS AND FINANCIAL STATEMENTS 2005:

The Committee on Provincial and Local Government, having considered
Annual Reports and Financial Statements for 2005, reports as follows:


A.      INTRODUCTION


    1.  The  review  and  hearings  on  annual  reports  and  financial
       statements of the  statutory  bodies  has  been  undertaken  and
       conducted in order to gain an understanding of progress that  is
       being made  to  improve  the  levels  of  service  delivery.  In
       particular, the Committee wanted to  uncover  shortcomings,  key
       areas  of  concrete  improvement  and  assess  the   impact   of
       government programmes in changing and improving the lives of the
       people.

    2. The Committee resolved that its efforts  would  be  increasingly
       directed in the area of monitoring  performance  and  evaluating
       delivery.


B.      PARTICIPANTS IN THE TABLING OF ANNUAL REPORTS


Those who appeared before the Committee included a delegation  from  the
Department of Provincial and Local Government  Ms  L  Msengana-Ndlela  –
Director-General, L Twaku, L Graham, M Rangali,  Shiva  Makotoko,  Elroy
Africa, C  Clerihew  and  Veronica  Mafoko;  Mr.  Malcolm  Booysen  from
Treasury; Ms Pumla Madiba, A Dockrat, M  Seroux,  M  Bethlehem,  Mongezi
Guma and Sibusisiwe Dube from  the  Commission  for  the  Promotion  and
Protection  of  the  Rights  of  Cultural,  Religious   and   Linguistic
Communities (CRL Commission); the LGSeta was represented by Mr W  Nkosi,
Mr W Roberts, Mr H A Deysel, Mr S Japie, Ms Millicent Collins;  MDB  was
represented by Dr Vuyo Molokoti, Mr Hillary Monare, Mr Richard  Somamje;
a delegation of the NHTL included Nkosi M B Mzimela, Chief F  P  Kutama,
Morena MF Mopeli, Kgosi SV Suping,  Kgoshi  C  E  Mathebe,  Prince  Z  S
Makaula, Prof. Sobahle, Mr Z Matebese, Mr S Nkosi; MIIU was  represented
by Ms Danai Magugumela, Ms Laila Suryodipuro; and SALGA was  represented
by its CEO Dr M Khoza, Cllr H Jenkins, Mr S Wasa, Mr K Miullagie and  Mr
A Mpela.



C.      DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT


    1. The department (DPLG)  reported  that  the  departmental  budget
       under review was R13.1 billion. An amount of about R7.7  billion
       was transferred directly to municipalities for  basic  services,
       R4.5 billion for municipal infrastructure and job creation, R130
       million for drought relief in South Africa and R20  million  for
       financial needs related to the East Asian (Tsunami) Disaster.

    2. The total amount of R17.3 million was transferred to  the  South
       African Local Government Association and R22.5  million  to  the
       Municipal Demarcation Board to prepare for the Local  Government
       Elections. A total of R8.6 million went to the National House of
       Traditional Leaders, R4 million to the Commission on Traditional
       Leadership  Disputes  and  Claims  and  R9.7  million   to   the
       Commission for the Promotion and Protection  of  the  Rights  of
       Cultural, Religious and Linguistic Communities. The R224 million
       was for  the  Department  of  Provincial  and  Local  Government
       operational budget.


    3. According to  Project  Consolidate,  since  April  2005  Service
       Delivery Facilitators (SDFs) have been mobilised and deployed to
       municipalities. The Department had been  directly  engaged  with
       more  that  40  municipalities  through  the  Presidential   and
       Ministerial Municipal Imbizo’s Programme.

    Expected outcomes would be:
• Improved capacity of provinces and municipalities to deliver on their
  mandate
• Accelerated delivery of quality services to communities
• Empowered participation of communities in the governance structures
  and processes
     • 136 municipalities would emerge out of Project Consolidate and
       graduate through to the sustainability phase in terms of Local
       Government Transformation process


    4. The recent  audit  reports,  both  from  internal  and  external
       auditors,  point  at  instances  of  non-compliance  with  DoRA,
       especially as the framework for conditional grants by Provincial
       and Local spheres of government.


    5. While this appears to be a  recurring  finding,  it  has  become
       apparent that there was a misalignment between  the  legislature
       and the processes currently followed  by  Provincial  and  Local
       Government in executing their tasks.  The  Committee  noted  the
       various items, which  the  Office  of  the  Auditor-General  has
       listed as  impacting  on  the  internal  controls  and  must  be
       addressed as a matter of priority by the department.

    6. The department’s commitments to the Portfolio Committee  and  to
       Parliament  for  2004/5  was  that,  the  Department  would  pay
       priority attention to:
           • Leading and facilitating policy  coherence  on  matters  of
             provincial and local government
     • Raising awareness and  recognition  of  the  depth  of  capacity
       challenges
           •  Follow  a  systematic  approach  in  addressing   critical
             capacity  challenges  arising  from  decades  of   neglect,
             poverty   and   underdevelopment   in   poor   and    rural
             municipalities.
           • The department’s approach  in  addressing  Key  Performance
             Areas (KPA’s) for municipalities, included the following:


       KPA 1: Municipal Transformation and Institutional Development -
       by stabilizing administrative and political components within
       municipalities, implementing a systematic programme of capacity
       building, strengthening the performance Management System etc.
       KPA 2: Municipal Financial Viability and Management – by
       improving municipal capacity in the following areas: Long range
       Financial Planning and Budgeting, Revenue and Debt Management,
       Financial controls, Implementation of MFMA and Regulations and
       Financial Reporting.


       KPA 3: Basic Service Delivery and Infrastructure – by monitoring
       implementation, particularly in areas highlighted in the IDP
       Hearing Report
       KPA 4: Local Economic Development – by mandating the Economic
       and Employment Clusters both at National and Provincial levels
       to accelerate the implementation of Local Economic Development
       strategies.


       KPA 5: Good Governance – by improving the functionality of  Ward
       Committees and rollout  of  the  Community  Development  Workers
       Programme, the three spheres of government  should  provide  the
       necessary support to ensure effectiveness of Ward Committees and
       Good Governance.

    7. The Committee welcomed the  Imbizo  initiative  however,  wanted
       assurance in a form of a monitoring mechanism that would be  put
       in place to ensure progress in addressing identified challenges.
       The Committee  further  mentioned  that  the  department  should
       seriously consider the information coming out  of  reports  from
       Imbizos and such information  needed  to  be  incorporated  into
       departmental strategic plan. The Committee also wanted copies of
       the report from Imbizo’s to be made available in order to assist
       members in their oversight responsibilities.

    8. The committee felt that the department should compile a list  of
       issues raised by traditional leaders to assist local  government
       in address issues of rural development and that  the  department
       needs to monitor the implementation of legislation  designed  to
       transform traditional governance systems.


    9. The Committee was concerned about the future status of the  MIIU
       and pointed out that the department needs to play  its  role  in
       this regard. The Committee felt that the good  relationship  and
       openness  between  the  department  and  its  Entities  is  very
       important and that such a relationship must be sustained.


   10. The Committee agreed that the department should investigate the
       state of readiness of municipalities for the 2010 FIFA Soccer
       World Cup.


D.      SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION (SALGA)

    1. The South African Local Government Association (SALGA)  received
       a qualified audit opinion from the Auditor-General  for  2005/06
       financial year. Regarding the disclaimer, Salga plans to address
       all issues raised by the Auditor-General and hopes to receive  a
       better report in the next financial year.


    2. Salga’s budget in 2003 was less than R 60m, and in 2005  it  was
       over R 100m.  The breakdown of income for 2005 was as follows:
  - 16% from DPLG
  - 65% from Municipal Levies
  - 8% from Donor Funding
  - 11% from Other Income


    3. Salga complained about a very low payment rate from  Metros  and
       that remuneration packages accounted for 31% of the  budget  and
       was below the general norm of 35%.


    4. SALGA wanted to see full-time  councillors  appointed  in  rural
       areas to enable  devotion  to  development  and  achieve  better
       results.

    5. Salga acknowledged that many municipal facilities/buildings were
       not user-friendly for people with  disabilities.  Municipalities
       had been sensitised about the  shortcomings  and  budgets  would
       reflect the need to improve the  situation  for  most-frequented
       areas and buildings. A database of user-friendly  municipalities
       for people with disabilities would be compiled.  Best  practices
       would be exchanged amongst municipalities to promote  compliance
       with acceptable standards.  All  councillors  would  be  trained
       including  proportional  representation  councillors,  but  ward
       councillors would receive  specific  training  as  they  had  an
       important role to play in development.

    6. The Committee point out that Local Economic  Development  in  so
       far as it relates to local communities remains a  challenge  and
       that Salga needs to find ways of ensuring that the  LED  becomes
       the beneficiation of local communities.


    7. The Committee congratulated Salga on  successfully  hosting  the
       Founding Congress of the United Cities and Local Governments  of
       Africa in Tshwane in May 2005. SALGA is also  a  member  of  the
       Commonwealth Local Government Forum and the partnership with the
       UK-based Local  Government  International  Bureau  has  assisted
       SALGA with funding to develop  the  association’s  International
       Relations strategy.


    8. For the year under review, Salga established a new directorate
       called Strategic Affairs Directorate, whose strategic objectives
       are to:
           - Ensure that SALGA enhances and maintains a high profile
             position locally, regionally and internationally
     - Mainstream issues of gender, youth, people with disabilities and
       HIV and Aids
     - Facilitate and support the capacity of member municipalities.

E. MUNICIPAL INFRASTRUCTURE INVESTMENT UNIT (MIIU)

1. The MIIU received an amount of R12 342 from grants and disbursements amounting to R15 341 for the 2005/06 financial year.

2. The Cabinet Memorandum No. 14 of 1997 created the MIIU in 1998 as a short-term arrangement whose term would come to an end in five years (April, 2003). The MIIU reported that this term was then extended by Cabinet Memorandum 4A of 2003 for an additional three years, ending in 31 March 2006.

3. Due to MIIU’s term coming to a close, they are reducing and downsizing their operations towards closure in 2006. During 2005/06 financial year, the MIIU will be executing their exit plan in preparation for closure. This plan will then be implemented as follows: • Closure of projects on the pipeline • Archiving of projects deliverables • Packaging of institutional memory for the DPLG as executive authority.

4. The MIIU was concerned about the capacity of the municipal market in absorbing and taking optimal advantage of private sector investment through Municipal Service Partnerships (MSP).

5. The MIIU reported that heavy reliance in MIG and lack of skills to borrow caused reluctance on borrowing and this trend resulted into a decline in private sector involvement in municipalities.

6. The MIIU explained that a chief directorate responsible for MSP in the DPLG would absorb some of their functions. While the Committee welcomed this undertaking, the Committee was nonetheless concerned about the degree of the vacuum that would exist in terminating MIIU and who would then be responsible for performing the functions and continue the work that has been started by the MIIU. The committee further wanted to know the actual handover of functions when MIIU’s work is being concluded. While the MIIU is preparing for closure, the committee pointed to strong indications of a growing demand for the work and projects provided by the MIIU.

7. The Committee welcomes the clarity of the report and presentation by the MIIU and further expressed its appreciation for the valuable work undertaken by the MIIU. The Committee further expressed concern about the future of the MIIU and the relevance of its institutional memory when they have closed shop.

8. The committee believes that the work of the MIIU is most relevant within the context of Project Consolidate and if closure goes through, a transitional measure should be initiated with the Department of Provincial and Local Government (DPLG).

9. The Committee explained that lack of technical expertise from municipalities created and necessitated the creation of MIIU. The Committee wanted to know whether the closing of MIIU presupposes that the conditions that informed the creation of the MIIU no longer exist. Due to this, the Committee believes that this need still exists. The Committee therefore, emphasized its position that the MIIU is till relevant today.

10. The MIIU report showed that all their projects were in urban areas, the Committee then felt that the work of the MIIU is bias towards urban municipalities, while the issue of infrastructure investment is more challenging in rural areas.

11. The Committee indicated that it is going to pursue the possibility of extending the MIIU term with the DPLG to determine whether there is a process in the executive to review this decision with the possible view of extending the term of the MIIU.

12. The Committee agreed that the following issues needed further discussion with MIIU and DPLG:

    • Progress on the response they are waiting for, from the DPLG • DPLG to elaborate on what plans do they have in place in taking over the functions of the MIIU • If there is any possibility in reversing the closing down decision of MIIU.

13. The MIIU promised to give answers on issues that they were unable to respond to on the next workshop that will be arranged for more engagement.

F. MUNICIPAL DEMARCATION BOARD (MDB)

1. The Municipal Demarcation Board (MDB) indicated that they have created 4 clusters and a staff compliment of about 24 distributed in the following category: • 4 vacant • 85.7% black • 38% female • 4.7% people with disabilities.

2. For the 2004/05 financial year, total expenditure amounted to R28 million with a net deficit of about R1.9 million at 31 March 2005, which is 5.97% of their total budget.

3. The MDB explained that logical support for the ward delimitation process is the primary reason for this deficit and that the Board with the support of DPLG has requested the Finance Committee to approve an additional amount of about R15 670 000 for the delimitation of wards. However, the Finance Committee only approved an additional R5.5million.

4. The process of ward delimitation and cross boundary would be completed by December and that elections needed to take place no later than April in 2006.

5. The Committee strongly felt that the Voting Districts that were being used by the IEC were causing confusion and that user-friendly maps should be considered and disseminated. The Board acknowledged that VDs are a problem, but pointed out that the IEC focussed on VDs while the Board concentrates on ward demarcation.

6. The Committee further felt that the net deficit of R1.944 million was a huge amount, and was worried about the financial management principles of the PFMA that are being ignored purposely, at the expense of completing the process of ward delimitation. The Committee wanted to get a sense of the Auditor General’s response on this consistent net deficit.

7. The MDB confirmed that they have a sound working relationship with IEC and that a national technical committee that included DPLG was currently in place.

8. The board reported that their assets register and asset management system is in place.

9. The Committee suggested that MDB, IEC and DPLG work together in the formulation of boundaries as they are going to impact on elections. The DPLG to assist and give guidelines on issues beyond their authority e.g. the inflexible criteria of Municipal Structures Act, which authorises the board to take into account the security, which does not fall under the board.

G. NATIONAL HOUSE OF TRADITIONAL LEADERS (NHTL)

1. The NHTL reported that mechanisms had to be devised for the House to monitor the creation of traditional legislation and that no province had completed implementation of the Traditional Leadership and Governance Framework Act of 2003 to meet the deadline of September.

2. The budget of the National House has been controlled by the department (DPLG) but it is hoped that the newly appointed CEO would have the capacity to improve the financial position of the House.

3. Regarding the establishment of regional Houses, the National House reported that only the Eastern Cape has done some good progress. Provinces like North West, Mpumalanga, Free State and KZN have not started yet, meaning that the regional Houses were not going to be erected by the set target of 24 September. The NHTL said it was not possible for them to operate in Provincial level until Provincial Houses are established.

4. The NHTL explained that gender issues have been addressed but the tradition and the custom of communities are not flexible in this regard, they felt that the implementation of gender balancing would however, be implemented over time.

5. The NHTL had made valuable contributions by making submissions in several Bills and were involved in drafting legislation in provinces.

6. Regarding the NHTL Chamber, the Department of Public Works and DPLG must work together in order to ensure that the Amakhosi are housed within close proximity to Parliament.

7. The Committee was unclear with the strategic plan and the budget of the National House, as there was no indication on the presentation of any substantial information regarding their financial status and their accountability to the Auditor General.

8. The Committee continued to express its concern about the financial status of the National House and said that the current reporting format before it requires revision and more clarity on key performance areas. Moreover, reports should clearly indicate how the House had utilised the amount allocated to it and how they managed to improve the lives of rural dwellers and added value to rural communities.

9. The Committee emphasised the importance of having an action plan supplementing the strategic plan including timeframes for implementation.

10. Again the Committee expressed its concern over lack of clarity on corrective action that had to be taken after previous Committee recommendations.

Resolution The committee requested NHTL to take note and correct the following: • Their format of report writing. • Programme for the year to be tabled in the Committee. • To put time frames on key performance areas • Clearly identify the link between the budget, the expenditure and what is to be done. • Clarity on their contribution and role in service delivery. • DPLG to assist the NHTL in all the above.

H. COMMISSION FOR THE PROMOTION AND PROTECTION OF THE RIGHTS OF CULTURAL, RELIGIOUS AND LINGUISTIC COMMUNITIES (CRL)

1. The Commission reported that in implementing its mandate it formulated five distinct but closely related strategic objectives: • Organizational Development • Human Resource Development • Public Education and Advocacy • Research and Policy Development • Investigation and Conflict Resolution

2. The Commission indicated that the post of CEO and CFO have since been filled. The CRL Commissioners were organized into functional committees to facilitate effectiveness in policy development, delivery and monitoring of activities.

3. The Commission in its brief period of existence received a substantial amount of complaints and submissions for investigation. After the investigation and analysis, the Commission discovered that all the complaints were related to the issues of Language in Education, Community rights and cultural rituals, religious Education, Marriage laws and rights etc.

4. The Commission hosted a National Consultative Conference (NCC) in their first twelve months of establishment. The NCC provided a platform for a display of diverse cultural, religious and linguistic communities. Some of the recommendations of the NCC were that, CRL should interact with religious leaders to promote interracial religious dialogue, bridge general gaps caused by the influence of western culture, religion and language etc.

5. The Committee felt that the Commission should be introduced to all other relevant department in Parliament and the challenges to the Committee was to direct this process.

6. The Committee felt that the Commission is till in its infancy and has to be nurtured by all relevant role-players; nonetheless the Committee would follow-up on policy direction applied to the Commission by the department (DPLG).
7. The Committee emphasised that the activities of the Commission should be linked to the Presidency Cluster programme to enhance effectiveness.

I. LOCAL GOVERNMENT SECTOR EDUCATION AND TRAINING AUTHORITY (LG-SETA)

1. The LG-SETA reported that last year 2004, the Minister of Labour sent them a letter seeking explanation for continued underperformance and requesting and immediate improvement on standards and turn-around strategy.

2. As a consequence they declared 2004 as a year of consolidation to remove all the inefficiencies and improve their activities hence the new the LG-SETA as oppose to the previous LG-Water and related SETA.

3. SETA explained that 1550 municipal employees would be trained within the EPWP and the training for traditional leaders would be undertaken after initial research.

4. SETA said that service providers responded slowly to requests for registration and that SETA would attempt to use newly and emerging service providers and discourage the continuous use of well- established entities. However, certain new service providers displayed capacity weaknesses that had to be considered.

5. The Committee was worried about the 160 learner’ dropout during training programme. Due to this, the Committee wanted to know if there were any strategies in place to correct the situation or whether the dropouts were just left out. What has been done to prevent the wastage of money?

6. The Committee further wanted to know whether LGSETA had assessed learners before taking them for training? Questions were raised around the training of LGSETA’s Academy staff, municipal workers, ward committees and Traditional Leaders, and how efficient they were in terms of training, equipment and placement of trained people.

7. The Committee wanted sufficient information regarding progress in the area of training within the context of the Expanded Public Works Programme, the participation of SALGA, and to what extent do they train Councilors. The Committee was also interested in knowing whether LGSETA has a service provider or training package for municipal managers and senior staff members.

8. The Committee wanted to get a better sense of how LGSETA measures its improvements, on numbers or outcomes, and whether follow ups are being conducted after training. The Committee was concern about indication of duplication regarding training provided by different government department and LGSETA and whether linkages can be forged for greater impact.

9. We don’t seem to hear the kind of training that talks to the type of training that intends to correct the intrinsic behavior and attitude of public servants along the lines of Batho Pele.

J. CONCLUSION

1. The hearings on annual reports have presented the Committee with an opportunity to gain the necessary information and detail that relates to the mandate of the statutory bodies in so far as the implementation of core government programmes is concerned.

2. The hearings have also presented a picture of where we are as local government to enable us to look at the progress and challenges we are faced with. This session has given us an opportunity to deliberate on issues with the aim of finding practical ways of coordinating our efforts in moving forward with an efficient machinery of service delivery. They have provided us with a broad preview of the strategic priorities of government in the fight against poverty.

3. The Committee is thus focusing on implementation of service delivery, building and strengthening capacity; developing human and financial resources and having the necessary skills required in implementing government programmes.

4. The Committee conveys its appreciation to the department (DPLG) and all the statutory bodies for their participation and co-operation in the hearings. The Committee emphasized the need to further engage with the statutory bodies on the recommendations made.

5. Report of the Committee on Provincial and Local Government on Budget Vote 5: Provincial and Local Government, dated 23 May 2006:

The Committee on Provincial and Local Government, having considered Budget Vote 5: Provincial and Local Government, report as follows:

A. INTRODUCTION

1. The budget review of the Ministry and Department of Provincial and Local Government (dplg) was undertaken on 13 March 2006 and the budget review of the statutory bodies accountable to the Portfolio Committee was undertaken on 14 and 15 March 2006.

2. The budget briefings also served to acquaint the Portfolio Committee with the plans, programmes and projects of the Ministry and Department of Provincial and Local Government.

B. PARTICIPANTS IN THE BUDGET HEARINGS

1. Those who appeared before the Committee included a delegation from the Department of Provincial and Local Government, Director-General Ms L Msengana-Ndlela; Deputy Directors-General Mr E Africa, Mr P Flusk, Ms T Mketi, Ms S Makotoko, Mr D Powell, Ms L Molapo; Chief Directors Mr M Rangata, Mr O Cupido, Mr L Williams, Ms L Graham, Ms Z Ngcobo, Ms F Zangca, Ms M Jacobs, Mr N Jack, Mr T Fosi, Ms V Mafoko, Ms J Morulane, Mr L Twaku, Mr O Nzimande and Chief Financial Officer Mr C Clerihew.

2. The South African Local Government Association (SALGA) was represented by CEO Ms M Khoza, Cllr C Johnson, Mr S Wasa and Mr K Mullagie. The Municipal Demarcation Board (MDB) was represented by Dr V Mlokoti and Mr H Monare. The National House of Traditional Leaders was represented by Inkosi M Mzimela, Inkosi M Mthethwa, Kgosi S Suping, Prince Z Makaula, Mr Z Matebese, Mr M Ntsanwisi, Mr S Khandidlela, Mr A Sithole and Mr T Shikwandana. The Local Government Sector Education and Training Authority (LGSETA) was represented by Mr S Maloka, Mr M Sebezo, Mr S Mofokeng, Ms J Davies and Mr E Mnyakeng. The Municipal Infrastructure Investment Unit (MIIU) was represented by Ms B Magugumela and Ms J Lesoane. The Commission for the Protection and Promotion of the Rights of Cultural, Religious and Linguistic Communities (CRL Commission) was represented by Dr W Langeveldt, Dr M Guma, Mr H Gouvelis, Mrs M Bethelehem, Mr B Mgcina, Mrs M Soni-Amin and Mrs P Madiba.

C. STRATEGIC PLAN AND OVERVIEW OF THE BUDGET

1. The Director-General for Provincial and Local Government, Ms L Msingana-Ndlela, commended the Committee and other stakeholders on the successful local government elections held on 1 March 2006. She revealed that the March elections saw an increase in the national average of voter participation and therefore reflected that the public is optimistic and expected government to deliver on its mandate, particularly at local level.

2. In terms of the local government review and the strategic direction for the next term of local government, the Director-General emphasised that the purpose is to assess the main lessons from the first term of local government in order to achieve a viable and consolidated local government system in the second term. She identified the key challenges for this first term as poor capacity and inadequate accountable systems.

3. In this regard, the department identified three strategic priorities: • Mainstreaming support to local government to improve municipal governance, performance and accountability. • Addressing structure and governance arrangements of the state to strengthen, support and monitor local government. • Refining and strengthening the policy, regulatory and fiscal environment for local government.

4. The Director-General explained that local government will receive R92 billion over the MTEF period, of which R82 billion will be allocated to municipalities through the DPLG Budget and the remainder through national departments of Transport, Minerals and Energy, Water Affairs and Forestry and National Treasury.

5. She further explained that funds have been set aside for improving skills and systems in municipalities and that municipalities will receive allocation from the Capacity Building Grant, to the value of R600 million for the next three years. In addition, R73 million has been set aside for the implementation of Project Consolidate and the deployment of expertise.

6. The Director-General pointed out that over the 2006/07 MTEF period, an amount of R35.7 billion will be transferred directly to municipalities through the Local Government Equitable Share in order to place municipalities in a better position to fund the provision of Free Basic Services and Sustainable Development.

7. The Municipal Infrastructure Grant will receive an additional increase of about R21.4 billion to be used for infrastructure development and maintenance. This amount includes R1.2 billion for eradication of the bucket sanitation system. Metro and District municipalities will also receive an additional amount of about R24 billion to perform their mandate and improve service delivery. These funds, the Director- General explained, will replace the RSC levies previously collected from employees and the business sector.

8. In her presentation, the Director-General emphasized the importance of spreading growth to the poor through favourable conditions for economic development. She revealed that data from CSIR reflected that of the 52 district and metropolitan areas, the economies of 13 municipalities grew consistently above the national average over an 8- year period from 1995-2003.

9. The Director-General pointed out that in 2005 all affected provinces were able to pass provincial-specific legislation as required by the Traditional Leadership Framework Act of 2003. An amount of R68.2 million has been set aside as a contribution for promotion of the institution of traditional leadership of which R26 million will be transferred to the National House of Traditional Leaders, R22 million to the Commission on Disputes and Claims and R18 million within the DPLG Budget. The Commission for the Protection and Promotion of the Rights of Cultural, Religious and Linguistic Communities will receive R43.3 million over the same period.

10. In her conclusion she noted that the Budget of R82 billion within the DPLG over the MTEF period represents a financial commitment and contribution to improve performance at provincial and local government.

11. The Committee welcomes the greater clarity, coherence and focus of the department’s strategic plan. However, the Committee is concerned about the capacity within the department, and wanted to know whether the department is in itself capacitated to undertake what they seek to achieve in the next term of local government.

12. The Committee was further concerned about the continued under-spending by provinces and wants the department to play an active and robust role to guard against this pattern and to further give guidance with respect to infrastructure roll-out.

D. ADMINISTRATION

1. Expenditure on this branch grows significantly right into the MTEF period. The increase of 19.6% in support services is due to the following: • Increases in the management structure of the office of the DG and the full funding of the DDG posts for monitoring and evaluation and the Chief Financial Officer. • The increase in the total establishment necessitated an increase in the provision for telecommunications and others. • Activation of the Chief Directorate position to provide an advisory and coordinator service to the department. • The function of property management has been transferred to all national departments.

2. The increase in the outer years of the MTEF is 3.4% and 5.3% respectively.

3. The branch has two clear strategic objectives: • To monitor performance, evaluate service delivery and communicate development. • To strengthen the DPLG organizational capacity and capability.

4. Achievements for this branch includes: • 2004/05 annual reports finalised and presented on time. • Analysis of year to date strategic progress. • Review of monitoring and evaluation strategies finalized. • Communication strategy approved, rolled-out to key stakeholders and Project Consolidate municipalities. • HRD strategy developed and approved. E. GOVERNANCE, POLICY AND REASEARCH

5. There is a considerable increase on the total Budget of this branch for 2006/07 compared to the one for 2005/06 financial year (R29 287 - R24 041). This expenditure increase continues into the MTEF period). The expected growth in funding is mainly due to increased commitments in intergovernmental and international relations.

6. The department explained that a number of municipalities had completed their draft IDPs and that this was part of an ongoing process to ensure that all municipalities had IDPs by the end of July 2006.

7. When challenged by the Committee about the possible dangers of the two- tier system of local governance with regard to the differentiated yet complementary functions of district and local municipalities, the department explained that it would not challenge the fundamentals of the two-tier system, but would seek to strengthen the original concept as all types of municipalities were regarded as on par to each other regardless of the perceived view to the contrary. However, the department emphasized the need for greater clarity on the roles of district and local municipalities.

8. The department emphasized that it views provinces as very critical in the overall programme of support for and work with local government. The department would, in time undertake to review the current state of provinces to evaluate their ability to provide the necessary support to local government. In this view, all national and provincial departments would then need to indicate in concrete terms, how they would lend support to municipalities.

9. The Committee expressed its support for the programmes of the department, but felt that performance indicators in most IDPs are not kept static so that they guide municipalities that did not have the necessary capacity. Moreover, the Committee wants the department to set standards in respect of the signing of Performance Agreements for Municipal Managers.

10. The Committee in its assessment found it difficult to appreciate clear alignment of targets from national, provincial and local government in respect of IDPs, PGDS and NSDP.

11. The Committee was concerned about the continued prominence of consultancy-led processes of drafting IDPs.

F. URBAN AND RURAL DEVELOPMENT

1. The total Budget of this branch for the 2006/07 is R10 729 billion and the total Budget for the MTEF period will be R33.853 billion with a yearly increase of 9.8% over the 2006 MTEF, reaching R11.844 billion in 2008/09.

2. The programme has a predominantly co-coordinating, monitoring and evaluation role and the Budget split over the MTEF period reflected this – 70% of the yearly Budget is for operational costs and 30% for programme implementation. The ISRDP programmes have a marginally higher allocation, in line with the larger number of rural districts (13) to be serviced.

3. Achievements for this branch includes: • Enhancing nodal capacity and capabilities • Tailoring ISRDP and URP initiatives towards addressing the challenges of the second economy • Communicating and market ISRDP and URP across the spheres.

4. Key strategic priorities for 2006/07 financial year are as follows: • All nodal areas will be assisted to realize their economic potential and to improve the active participation of nodal communities in the economic growth sectors of the country. • Community Investment Programme in the former Bohlabela Node: Bushbuckridge and Maruleng local municipalities. • Strengthen Project Management and M&E Technical Support to the nodes. • Preliminary Impact Assessments in 2 urban and 2 rural nodes. • Assessment of impact of Cross-Boundary changes on current nodes. • Strengthen communication of the programme with an emphasis on beneficiary communities.

5. The Committee acknowledged the need for additional development nodes, however, the department should provide clear details about the work, status and the progress made within the current nodes.

G. SYSTEMS AND CAPACITY BUILDING

1. The Budget for this branch has increased from R91.1 million to R109.8 million in 2006/07, with an annual average increase of about 21.7%. The biggest increase is being absorbed by Project Consolidate.

2. There is a greater focus on Performance Management and achieving better institutional development, including addressing governance, anti-corruption and financial viability.

3. The department declared that there is a general increase in the remuneration of councillors and that an amount of about R200 million has been made available for this 2006/07 financial year.

4. Strategic achievement include the following: • Realigning provincial boundaries. • Phased implementation of the Property Rates Act – developed first set of Regulations and monitoring Framework. • Implemented anti-corruption strategy in selected municipalities in line with Project Consolidate. • Approval of the new Councillor Remuneration framework. • Local Government Employees Bill drafted. • Launched the Local Government Leadership Academy by 31 March 2006.

5. Strategic priorities include the following: • To finalise the Local Government Laws Amendments Bill with a view to have it submitted to Parliament during 2007/08. • Review the division of powers and functions between category B and C municipalities. • Enforcing a more effective performance management system in local government. • Finalising a local government competency framework by July 2006 (which will include improving the regulatory environment).

6. The Committee wanted specific reports made available to it in order to determine progress and results around Projects Consolidate.

7. The Committee commended the department on its efforts to deal with the weaknesses and challenges faced by local government. However, the Committee feels that lack of progress reports about the work done around Project Consolidate makes it difficult to assess the project’s status.

8. The Committee believes that the current work of the department puts more emphasis on national and local government, but places lesser focus on provincial government as it is the sphere faced with under- spending. This is also in light that provinces are also positioned to assist local government in developing both infrastructure and capacity to delivery services.

H. FREE BASIC SERVICES AND INFRASTRUCTURE

1. Expenditure in this Branch has increased to an annual average increase of 49.2%. The increase is due to government’s commitment to: • Wipe out the backlogs and achieve the targets by 2013. • Increase the roll-out of FBS to those people who have access to this new infrastructure and; • Contribute jobs consistent with the EPWP Guidelines for 2006/07.

2. Progress and achievements include the following: • Draft policy framework on public participation has been developed and circulated for comment. • Research of the CDW Programme has been completed and report is now available for circulation. • 3000 CDWs have been recruited and will be deployed in municipalities in the next financial year. • Of 5 517 090 Indigents/poor households, 3 919 402 (71%) with infrastructure have access to Free Basic Water. • Of the 5 517 090 Indigents/poor households, 2 901 134 (52%) with infrastructure have access to Free Basic Electricity. • A national total of 184 municipalities have indigent registers. • A total of 94 Project Consolidate municipalities have functional Indigent registers.

3. While the Committee acknowledged and appreciated the work done by this branch, the Committee was however, worried about the apparent lack of compliance by some municipalities in compiling indigent registers. The Committee wants the department to establish whether this is a case of lack of capacity or simply lack of compliance with S78.

4. The Committee reiterates its position of support for additional development nodes however, believes that the focus should also be on challenges facing cities and other urban areas.

I. SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION (SALGA)

1. SALGA’s Budget for the 2005/06 financial year amounted to R161 934 000.00. SALGA derives revenue mainly from membership levies paid to it by municipalities. The percentage distribution of the budgeted income was as follows: • Membership fees - 49% • Donor funding - 33% • Grants from DPLG - 11% • Sponsorship - 0.4% • Others - 0.6%

2. The CEO of SALGA explained that they received a qualified audit opinion from the Auditor-General for 2005/06 financial year. However, she reported that efforts are currently being employed to formulate a comprehensive plan to turn the disclaimer of the audit opinion around and report back to the Committee.

3. The CEO of SALGA, Dr Makhosi Khoza reported that SALGA was previously 100% reliant on government funding but currently the DPLG only accounts for 11% of its income. SALGA further explained that the fact that they are listed as a Schedule 3A public entity makes it difficult to become self-sufficient.

4. SALGA reported that general attendance in IGR structures has been observed and relations with stakeholders have generally improved with exceptions.

5. SALGA advised the Committee that the Extension of Security of Tenure Act does not favour the poor and needs to be re-looked at seriously to reduce evictions.

6. SALGA acknowledged that CDW’s had undergone accredited training and had been deployed within wards, although no significant progress has been made to absorb CDW’s in municipalities.

7. SALGA mentioned that the twinning agreements have been entered into where municipalities were partnered together to share knowledge and expertise. Where one municipality had an overabundance of capacity, such capacity would be used in another to cover shortfalls.

8. Dr Khoza noted that the role of SALGA needed to be further clarified. In terms of the Constitution, SALGA was supposed to be a representative body. However, in practice, it was maintaining municipalities. SALGA is not supposed to monitor and oversee municipalities; rather it should focus on promoting and protecting the interests of local municipalities.

9. The Committee expressed its concern about the increasingly high number of Acting Municipal Managers and wants SALGA to detail a report on this at a later stage.

10. The Committee feels that SALGA makes representation without addressing issues that were raised and did not sufficiently address some of the issues that were raised by the Committee in the previous Budget hearing of 2004/05.

11. The Committee and SALGA agreed that SALGA needs to strengthen relations with the National House of Traditional Leaders and further increase parliamentary participation in the two Houses of Parliament to ensure that a delegate takes part in the legislative processes. It was further agreed that different legislatures need to ensure that SALGA has a seat and an active role to play.

12. SALGA confirmed the following successes as: • Improvement in membership levy collection from 40% to more than 95% by March 2006. • Improved staff turnover from 47% to 13.8% by the end of the last quarter. • More visibility of SALGA in Inter-Governmental Relations (IGR) structures. • Comprehensive involvement in the Cross-Boundary Municipalities Bill, and the Constitutional 12th Amendment Bill. • Financial statements were consolidated with all its provincial structures for the first time in 2004/05 financial statements.

13. SALGA proceeded to highlight the following challenges: • The twinning arrangements and the exchange of best practices. • Lack of an international relations strategy. • The listing of SALGA as a schedule 3A public entity, which in turn limited it’s ability to be self-sufficient and generate its own income and ensure sustainability.

14. It was resolved that SALGA should forward quarterly reports on crosscutting issues e.g. disability, gender, etc to the Committee.

J. MUNICIPAL DEMARCATION BOARD (MDB)

1. The total income of the Municipal Demarcation Board (MDB) amounted to R29 784 000.00.

2. The MDB currently has capacity constraints to effectively assess local government performance. More funding is required to ensure that facilitation and consultation takes place with communities.

3. The MDB explained that consultants are used on a seasonal basis and are thus less expensive as they are only used when a need arises.

4. The Committee declared that the MDB should play a role in Project Consolidate to assess the distinction between powers and functions at the local government level and research resources and capacity at municipalities.

5. The Board believes that Cross-Boundary issues could have been handled differently and certain lessons had been learnt. The reason for the confusion was that ward delimitations had been clarified first before provincial boundaries were considered.

6. The Committee acknowledged that the recent cross-boundary disturbances had shown a clear lack of consultation with affected communities and that the Board needs to show practical steps taken to correct this process.

7. The Board acknowledged that they experience challenges in maintaining their asset register.

8. It was resolved that the MDB should increase its visits to rural and smaller towns. The Board was requested to make research documents available to the Committee on the consultation that took place in relation to the Cross-Boundary Bill. Both the NA and the NCOP would have discussions with the Minister to ensure that further funding is made available to the Board.

K. MUNICIPAL INFRASTRUCTURE INVESTMENT UNIT (MIIU)

1. The financial of the MIIU as at 31 March 2006 reflected the following: • Total unspent income - R8.27 million

   • Outstanding operational and Capital expenditure - R7.15 million • Operational expenses - R0.90 million • Caretaker budget - R6.26 million • Anticipated surplus - R1.12 million

2. The MIIU stated that 45 projects were completed over an eight-year period and that 200 other projects had been launched.

3. With regards to high and low points, MIIU mentioned that two infamous water concessions were cutting edge projects. The Nelspruit water concession completed in 1999 was far ahead of its time and was successful; however, the Dolphin coast water concession is viewed as the worst project due to documented errors like the population growth.

4. MIIU believes that the need for such an institution would never completely disappear and that it would be valuable for government to have such an institution on a permanent basis.

5. Ms Magugumela, the CEO of MIIU added that initially the mandate of the MIIU was quite narrow and based exclusively on basic services. However, with the new infrastructure agenda, the MIIU feels that the mandate should have been broadened.

6. In terms of the MIIU’s exit or handover strategy, it was agreed that the DPLG would engage with the MIIU on legal issues relating to the exit strategy, financial issues and the project pipeline.

7. There was an additional agreement with National Treasury that the project development facility in terms of PPP’s will have to extend to local government, more so, that the DBSA has agreed to administer the remaining project pipeline.

8. From the financial point of view, the department (DPLG) was satisfied with the way funds were disbursed and control exercised.

9. The Committee was equally satisfied with the financials of the Unit and the manner in which it carried its work. The Committee further commended the Unit on the good work done and stated that its contribution will continue to be valuable in the overall work of government particularly at the local government level.

L. LOCAL GOVERNMENT SECTOR EDUCATION AND TRAINING AUTHORITY (LG-SETA)

1. The Local Government Sector Education and Training Authority (LGSETA) received approval for the amount of R70 100.00 to fund the implementation of Community Development Workers Learnerships.

2. An amount of R25.8 million has been disbursed by LGSETA during the 2005/06 financial year. The total breakdown of income and expenditure was as follows: Skills Development Levy Income and Expenditure • The projected total gross levies contributed for 2005/06 - R188.9m. • Skills Development Levy Income - R14.2 million • Operational Expenditure Incurred - R13.2 million • Mandatory Grant Income for 2005/06 - R70.9 million • Mandatory Grants Disbursed - R12.2 million

3. Regarding a letter by Minister of Labour on the subject of the under- performance of the LGSETA, the Chief Executive Officer of LGSETA, Mr Mofokeng said that SETA’s agreement with the Minister was to deal with their core competencies, which he defined as training and development and its facilitation.

4. LGSETA reported that a process of skills audit is underway and that skills development facilitators within municipalities are supposed to conduct skills audits as a foundational activity. The main problem is that skills facilitators seldom have that duty as an urgent function, because they often fulfill a multitude of functions within human resources management.

5. LGSETA identified recognition of prior learning as recognising the experience of people irrespective of the origin of the experience. The experience, however, would be assessed relative to new qualifications or old qualification standards to access their competence. If found competent, they would then be issued with a certificate of competence in the specific field. If found to be lacking, an intervention would be put into place to help these people fill the gaps.

6. LGSETA acknowledged that the biggest problem in implementation of programmes is the lack of workplace skills plan.

7. Using the grant of R32 million, the LGSETA targeted unemployed graduates in areas such as finance.

8. The Committee was, however, worried about the extent of accessibility and visibility of the programmes provided by LGSETSA.

9. LGSETA said that a framework for investigating the needs of traditional institutions was now in place and that the LGSETA supported the need for such institution.

10. The Committee expressed concern that bigger and more established service providers are crowding out the historically disadvantaged service institutions.

11. The Committee wants the LGSETA in the future to provide documentation, way in advance and prior to the presentation.

M. NATIONAL HOUSE OF TRADITIONAL LEADERS (NHTL)

1. The National House of Traditional Leaders (NHTL) has been allocated R8 258 000.00 for this financial year, which is a marginal increase from the 2005/06 financial year.

2. The presentation of the financials of the National House had significantly differed from that of the 2005/06 financial year in that: • Provincial Houses were now actively participating in the affairs of the NHTL. • There was more cooperation between the NHTL and the Ministry of Provincial and Local Government. • The human resources capacity of the NHTL had improved; and • The NHTL was much more focused due to its strategic plan.

3. The National House reported that a close working relationship has been forged between itself and the provincial Houses.

4. The NHTL is intent on receiving autonomy, be given the status of National Public Entity and the provincial House the status of Provincial Public Entity.

5. The NHTL has visited countries in both the continent of Africa and the SADC region to garner support for the Continental House of Traditional Leadership. The National House has visited these countries and learned valuable lessons from the countries visited especially Zimbabwe as their House of Traditional Leaders functions effectively in Parliament.

6. The National House confirmed that challenges in this regard included the cooperation with various countries and governments and budgetary constraints. The National House hopes that with the assistance of the Committee these funds would be attained.

7. The NHTL further stated that funds would also be needed for the employment of a staff compliment, the maintenance of its own Chamber, the acquisition of its won legal library, and the employment of all members of the House full-time.

8. The Committee was concerned about the prevailing tendency of some traditional leaders/headmen refusing to co-operative with councilors and refusing to recognise them.

9. The NHTL acknowledge that there appears to be a problem with the attitude of some headmen and the NHTL would appreciate some guidance on how to address the issue so as to ensure that service delivery continues.

10. The NHTL believes that it should be an autonomous structure taking care of its business and running its won affairs without having to obtain permission from the department (DPLG).

11. The NHTL expressed a need for filling the positions of a Parliamentary Officer, Chief Financial Officer and Auditor.

N. COMMISSION FOR THE PROMOTION AND THE PROTECTION OF THE RIGHTS OF CULTURAL, RELIGIOUS AND LINGUISTIC COMMUNITIES (CRL COMMISSION)

1. The CRL Commission elaborated on its mandate, role, function, vision
   and mission. The programmes  of  the  CRL  Commission  included  CRL
   Dialogue, Public Education  and  Awareness,  Investigation  and  CR,
   Research and Policy and Flagship/events.


2. The Commission was involved with youth and  had  a  workshop,  which
   also involved the Department of Arts  and  Culture  to  bring  youth
   together to interact in respect of the different cultures.

 3.  The Commission also worked with many of the embassies of African
   countries on  the  Africa  Day  Celebrations.  The  Commission  also
   received visits from other countries on the work being done  by  the
   CRL Commission.

O. CONCLUSION

 1. The Committee believed that submissions are in part a response to
    past resolutions and mandates.
 2. The Committee further records some of its concerns and directives
    recorded in its Portfolio Committee Report in 2005, as adopted by
    Parliament and, directs the Department and institutions that
    appeared before it to implement the decisions of the Committee that
    are still outstanding.
 3. The Committee further commits itself to strengthening its oversight
    role through visits to Municipalities.
 4. The Committee thanks parties concerned for the progress made so
    far.

1. Report of the Portfolio Committee on Foreign Affairs on Budget Vote 3: Foreign Affairs, dated 24 May 2006:

The Committee received a briefing from the Department of Foreign Affairs on the Strategic plan and Budget Vote of the Department on 10 May 2006.

The Context

The Director-General outlined the context around which the strategic plan was formulated. These include, the overall agreement with the stipulations of the Public Finance Management Act and included foreign policy and strategic objectives.

Strategic Goals and Objectives

The strategic goals of the Department were broadly outlined as:

• The consolidation of the African agenda:
  Among other things, this entails the strengthening of the capacity  of
  the  African  Union  (AU)  and  continued  support   to   its   organs
  particularly the Pan-African Parliament (PAP) and the New  Partnership
  for Africa’s Development (Nepad). It  also  entails  contributions  to
  peace efforts in the Democratic Republic  of  Congo  (DRC)  and  Ivory
  Coast  as  well  support  towards  post-conflict   reconstruction   in
  countries such as the Sudan.


• Strengthening of South - South Co-operation:


  This entails continued work in enhancing the agenda of the South
  through the India-Brazil-South Africa (IBSA) initiative, the Non-
  Aligned Movement and the Group -77.


• Strengthening the North-South Dialogue:


  Build dialogue with relevant structures such as the G8 to ensure that
  commitments made towards Africa are honoured and furthermore, that
  Africa remains on their agenda.

• Engagement in Global Governance:


  Subdivided into two related areas, namely:
 a) Political and Security Issues and
 b) Socio-economic issues.


  Accordingly, work would focus on issues such as the Reform of the
  United Nations (UN); peaceful settlement of disputes in the Middle
  East with particular reference to Israel/Palestine, Iran’s nuclear
  energy and peace in Iraq.


• Strengthening Bilateral Relations

Work in Progress

The Department presented two other important issues, namely, their plans for Asset Management and the Information and Communication Technology Plan. In terms of the Asset Management Plan, the Department indicated that a report of the Feasibility Study has been finalised and it would be used to formulate the Department’s property acquisition plans.

Secondly, the Department has come up with a plan to improve its communication through the better use of information technology.

The Department highlighted the following as some of the initiatives undertaken for the 2005/06 financial year to improve its work, namely, conducting a skills audit; increased awareness of Gender and disability issues; developing of multi-purpose job profiles and introduced leadership management in the Department.

Budget

The budget allocation for the Department for 2006/07 has increased due to the country’s increasing commitments in Africa and internationally.

Comments

The members had the opportunity to comment and raised questions to the Director-General. The following issues were raised:

• That enough resources should be raised for the Pan-African  Parliament
  and South Africa’s role thereof;
• The Department should compile a document on South  Africa’s  strategic
  approach on Nepad.
• The Department needs to improve its communication and interaction with
  the Committee by for example, inviting members to relevant events like
  conferences.
• The issue of the AU Gender Declaration was raised and the  Director  –
  General responded by indicating that the Department  was  looking  for
  ways of implementing the  Declaration  by  working  closely  with  the
  Office of the Status of Women.

1. Report of the Portfolio Committee on Minerals and Energy on Budget Vote 30 – Minerals and Energy, dated 24 May 2006:

The Portfolio Committee on Minerals and Energy, having considered Budget
Vote 30 – Minerals and Energy, reports as follows:


A.      Terms of Reference


    The Committee resolved to conduct budget briefings on 16 and 17 May
    2006. The objectives of the briefings were to:


  • Establish how allocated funds and transfers to statutory bodies were
    to be spent;
  • Monitor the achievement of targets, and whether funds allocated meet
    those targets;
  • Monitor progress made and establish problems encountered;
  • Fulfill its mandate of overseeing the Department of Minerals and
    Energy and statutory bodies that fall within its portfolio;
  • Determine whether policy developments take place in accordance with
    the key objectives and aims as stated in the Department’s strategic
    plan;
  • Determine whether policy developments take place in accordance with
    government’s priorities of poverty alleviation, job creation Black
    Economic Empowerment (BEE), human resource development and growing
    the economy;
  • Monitor compliance with the Public Finance Management Act (PFMA).



 B.     Introduction


     The first day of the two–day session with the Department of
     Minerals and Energy was a joint session with the Select Committee
     of Economic and Foreign Affairs. The Director-General presented
     the Department’s strategic plan for the 2006/7 MTEF period. The
     focus of the first day was on programmes 1 to 4, which covered
     Administration; Mine Health and Safety; Mineral Regulation; and
     Mineral Policy and Promotion. The focus of the second day was on
     Hydrocarbons and Energy Planning, Electricity and Nuclear and
     Associated Services.

 C.     Overview of Departmental Programmes

       The Director-General explained that Department’s strategic plan
       was informed by a commitment to ensure that its implementation
       plans, programmes, time and resources were allocated to
       activities aimed at advancing the economy, bridging the gap
       between the first and second economies, redressing past
       imbalances, developing of appropriate skills needed to grow the
       economy, facilitating job creation and fighting poverty. Special
       attention was also paid to providing access to energy and
       ensuring security of energy supply to all South Africans. The
       implementation of key legislation, such as the Mineral and
       Petroleum Resources Development Act, the Petroleum Products
       Amendment Act and the Petroleum Pipelines Act, demanded a shift
       in focus from policy making to policy implementation. This also
       meant that restructuring the Department would be imminent to
       effectively improve service delivery.

 D.     Key issues emanating from the presentation

       1.    Mine Health and Safety Branch


             The purpose of this programme is to regulate and promote
             health and safety in the mining industry to the highest
             standards in the world, thereby improving the quality of
             life of those employed in industry and those affected by
             industry’s activities. Its measurable objective is to
             reduce mining-related death, injuries and ill health. The
             Department highlighted “the fatality rate per million hours
             worked has decreased from 0.25 in 2004 to 0.21 in 2005 –
             this corresponds to 246 deaths in 2004 and 202 deaths in
             2005.” (These statistics were taken from the Director-
             General’s presentation notes). Much more work was needed to
             bring it in line with international rates. As it stood, the
             rate was at its lowest in South African mining history.
             Detailed statistics were made available to the Committee.

       2.    Mineral Regulation Branch


             The main aim of this programme is to effectively promote,
             manage, transform and regulate the mining sector to achieve
             transformation and sustainable development. This branch’s
             responsibility was to implement the Mineral and Petroleum
             Resources Development Act (MPRDA) and other mineral
             policies. It would also be incumbent upon the branch to
             improve the turn-around time for processing prospecting and
             mining licence applications in this sector, with a special
             focus on assisting first-time entrants in the industry.
             Statistics on progress relating to licences and
             applications were made available to the Committee.


       3.    Mineral Policy and Promotion Branch


             This branch is effectively responsible for policy
             formulation and promotion. Work has already started around
             amending the MPRDA, which proved to have some unintended
             negative consequences to the spirit of the Act.


       4.    Energy


             4.1   Electricity


                   The first Regional Electricity Distributor (RED) was
                   launched in Cape Town last year in an attempt to
                   consolidate the country’s electricity distribution
                   industry. Following a Cabinet directive to establish
                   a seventh RED, the Department has started to explore
                   the viability of this National RED, which will cover
                   the areas outside the six metros already identified.
                   Other highlights included the launch of the National
                   Energy Regulator of South Africa (NERSA), a single
                   energy regulator for electricity, piped-gas and
                   petroleum pipeline industries.


                   In terms of reaching the targets for universal access
                   by 2012, the Department was behind schedule as a
                   result of inadequate financial allocations. The same
                   challenge was experienced with the Integrated
                   National Electricity Programme (INEP) which made
                   provision for the electrification of 500 000
                   households per annum, but the funding provided in the
                   2006/7 budget only allowed for 89 525 connections.


             4.2   Nuclear


                   Investment in nuclear research and development
                   capabilities will increase during this MTEF period.
                   Cabinet’s approval of the Radioactive Waste
                   Management Policy necessitated the establishment of
                   structures to facilitate the implementation of the
                   policy.


             4.3   Renewable Energy


                   Legislation was being developed to address areas in
                   the White Paper on Energy (1998), which had not yet
                   been covered by existing legislation. Special
                   attention will be given to promoting the uptake of
                   renewable energy, energy efficiency and climate
                   change.


             4.4   Hydrocarbons


                   The petroleum industry in South Africa will for the
                   first time this year be regulated by way of licensing
                   and fuel quality regulation. The Petroleum Products
                   Amendment Act and the Petroleum Pipelines Act would
                   be key regulatory tools. The unsatisfactory results
                   from the five-year review of the Liquid Fuels Charter
                   necessitated the establishment of a supplier
                   development agency, SASDA, to address issues around
                   procurement.


                   The Department set out to conclude the paraffin
                   safety strategy this year, which will ensure the
                   phasing out of paraffin as a household fuel, while
                   looking at other more environment-friendly fuels. The
                   provision of liquefied petroleum gas (LPG) and other
                   renewable energy sources to households will be
                   intensified.


  E.    Budget
       The Committee was given a breakdown of the Department’s budget.
       Of the total budget of R2, 548 billion, transfers and subsidies
       accounted for R2 billion, of which R1,5 billion was allocated to
       electricity and the remainder to the public entities. An amount
       of R500 million was used in the department of which R290 million
       went to employee compensation. The remainder was allocated for
       goods and services.  Mining rehabilitation programmes also took
       up a large portion of the budget.
  F.    Public Entities


       A large portion of the Department’s budget was transferred to
       the public entities. The Department plans to improve the
       monitoring of the operations of its entities and also to align
       the entities’ objectives with those of the Department and
       Government.

  G.    Other Key Focus Areas

       Restructuring of the Department to improve service delivery,
       finalising its strategy on the support of SMME’s, using the
       transformation legislation to ensure effective and efficient BEE
       and gender empowerment would receive special attention in all
       line function programmes. There would be a commitment towards
       continuous capacity–building within the minerals and energy
       sectors.

  H.    Issues raised by the Committee

        • The Committee expressed concern at the lack of information
          around the motivating factors to establish RED 7. The
          Committee was taken through an extensive process of
          understanding and overseeing work towards the establishment
          of the other six REDs. The Committee was not aware of any
          evaluation of the RED process, which would inform the
          viability of a seventh RED, nor had it been involved in any
          discussion in relation thereto. The Committee, therefore,
          questioned its establishment at a time when only one of the
          six REDs had been launched.
        • Were there enough mine inspectors to visit the mines?
        • How would the new Environmental Impact Assessment (EIA)
          regulations affect the Department?  Would the Department be
          bound by the new EIA authorisations and would there be a need
          to amend the MPRDA, which also provided for regulation on
          Environmental authorisations?
        • Clarity was sought on the Department’s youth and gender
          focus.
        • How would electricity targets be met from the current budget?
        • Did the Department have a reliable staff retention programme?
        • What was being done to identify suitable sites for high-level
          nuclear waste? What was the Department’s position with regard
          to the Pebble Bed Modular Reactor (PBMR)? How much more money
          would be required for the PBMR?
        • What portion of the budget goes to ESKOM, and why was only
          10% allocated to electricity and nuclear? Would such a low
          allocation not cause the Department to run into problems in
          these areas?
        • What were the time frames for filling vacant posts in key
          offices of delivery?
        • How was the Department monitoring the mining scorecard and to
          what extent were companies complying?
        • Could legislation be used to address the issue of “fronting”?
        • Was progress being made with regard to SMMEs. in the mining
          sector, and what statistical information was available in
          that regard?
        • If the need arose to urgently assess a mine, would the
          Department have the flexibility to attend to it? What was the
          line of communication in drawing attention to a particular
          mine, given that the presentation made mention of the
          involvement of the Departments of Water Affairs and Forestry
          and Environmental Affairs and Tourism?
        • What happened to the Committee that was established and
          tasked with overseeing compliance with the Liquid Fuels
          Charter?
        • The Department should explore developing policy to encourage
          government departments to procure energy-saving appliances in
          terms of stand-by time.
        • The Committee commented on the opportunity for BEE in
          relation to biofuels and was looking forward to the strategy
          on biofuels. It was suggested that one should look beyond
          just using agricultural products for biofuels. Weeds from
          wetlands might be an option to consider
        • The presentation did not place much emphasis on climate
          change, commitments and plans relating to the Kyoto Protocols
          although South Africa was a signatory thereto.
        • Tax and other incentives with regard to renewable energy were
          not sufficient.

  I.    Responses by Department

        • The substance of the Department’s policy was to de-racialise
          the South African mining industry and to introduce previously
          disadvantaged South Africans into this sector. The shift from
          policy formulation to policy implementation exposed a number
          of challenges. These challenges related to activities of not
          only established companies, but also to the beneficiaries of
          this process. Black people allowed themselves to be used to
          defeat the objectives of the law. In an attempt to penalise
          “fronting“, the Department wanted the documentation submitted
          in this respect to be in the form of a declaration, so that a
          false declaration would constitute criminal liability
          according to law.
        • Compliance with the mining scorecard was being monitored.
        • Staff retention and vacancies remained a challenge due to the
          scarcity of skills and the skills requirements were knowledge-
          intensive. This also has an effect on the time frames for
          filling vacancies.
        • The evaluation of the business case for RED 1 was not only
          confined to the Department, but also involved broader role
          players.  At the implementation phase of RED 1 and at the
          time of making the business case for RED 1, it was felt that
          some things might have been overlooked by the Department,
          which necessitated the establishment of the National RED. A
          process of engagement on this matter between the Committee
          and the Department should follow.
        • There were enough inspectors to visit mines.
        • In terms of mine rehabilitation, the Department was
          prioritising the most polluted mines, but these priorities
          could be shifted. Provisions under the MPRDA were still being
          enforced, but there were consultation processes with the
          Departments of Water Affairs and Forestry and of
          Environmental Affairs and Tourism.
        • There had been a five–year review on the Liquid Fuels
          Charter.
        • The Department could not respond to questions on the PBMR as
          its governance, operational and shareholding functions were
          located in the Department of Public Enterprises. The
          Department of Minerals and Energy was the policy department
          as far as the PBMR was concerned. The Director-General
          explained that the same applied with Koeberg and ESKOM, where
          the Department of Minerals and Energy was only responsible
          for the regulatory environment.
        • The development of the biofuels strategy would result in
          enormous opportunity for rural development and upliftment.
          The Committee would be updated as the strategy was being
          developed.

  J.    Conclusion and Way Forward

       1.    The Committee acknowledged the open manner in which the
          Department presented its strategic plan and budget,
          highlighting both strengths and challenges. The Committee
          resolved to follow up on key issues raised with the
          Department on an ongoing basis. The Committee undertook to
          strengthen its oversight and monitor the implementation of
          programmes and projects highlighted in the Department’s
          strategic plan. The Department’s annual report will have to
          reflect the extent to which it had delivered on its services
          efficiently, effectively and economically, and whether these
          services had impacted on or made a difference in terms of the
          strategic priorities identified.

       2.    The Committee was not satisfied with the Department’s lack
          of response on PBMR matters. The Committee noted the movement
          of this project from the Department of Minerals and Energy to
          the Department of Trade and Industry, and questioned the
          current location of this project within the Department for
          Public Enterprises. In discussing its scope for oversight on
          nuclear-related matters, the Committee resolved to seek
          clarity on the situation of the PBMR project through
          facilitating a joint inter-ministerial meeting with Minerals
          and Energy and Public Enterprises. The Committee was also
          concerned about the minimal role the state utility on nuclear
          issues, the Nuclear Energy Corporation of South Africa
          (NECSA), had to play in the PBMR process. It recommended that
          a much more meaningful role for NECSA in the PBMR process be
          explored. Role clarification was necessary to ensure
          accountability.

       3.    The Committee recommended that the Department strengthen
          its leadership initiatives in the profiling and highlighting
          of key departmental programmes and policies. Specific
          reference was made to the Minister of Public Enterprises’
          recent pronouncement on the biofuels strategy, once again
          motivated by the issue of role clarification between
          departments/ministries to give effect to meaningful oversight
          and accountability.

       4.    On the issue of electrification and the inability of INEP
          and the Department to meet their targets due to insufficient
          budget allocation, the Committee recommended that a briefing
          session be arranged with National Treasury to enhance
          Members’ understanding of how allocations were made to
          departments that were tasked with specific goals by the
          President, but that lacked the financial resources to
          implement.

       5.    The Committee expressed concern over the lack of
          consultative processes regarding the establishment of a
          seventh RED and recommended that all relevant stakeholders be
          brought together to discuss, through a public participatory
          process, the decision to establish the viability and role of
          this seventh RED.

Report to be considered.