APPROPRIATION BILL

(Second Reading debate)

 

The SPEAKER:  We then proceed with Motions.   Motion 1 reads as follows:

That the Second Reading Debate on the Appropriation Bill be continued. 

 

The business before the House today is the Debate on Vote 8:  Local Government and Housing.  The hon MEC, Mr Kotsoane. 

 

Vote 8:  Local Government and Housing – R131 971 000

 

Mr I W KOTSOANE (MEC):  Thank you very much.   Hon Speaker, hon Premier and hon Members of the Legislature. 

 

We are assembled here today, hardly two months away from the second national elections in our country, elections that will mark a second term of office for a democratic Government and a conscious departure by the majority of South Africans from our Apartheid past.   We, as South Africans, will run towards these elections with one view in mind, and one view only; to close the chapter of our Apartheid past forever and to advance and develop our democracy as we enter the new millennium. 

 

We are indeed honoured to be part of these exciting moments - moments, which bring us closer to the ideal of making the next millennium an African millennium.   As we near the end of our first term of office, we are once again asked to pause and reflect on the road we have traversed since the April 1994 breakthrough. 

 

Our democracy, as enshrined in our present Constitution, heralds an important feature of new management and political responsibilities for our local governments.   It marks the total departure of this Government from the past apartheid approach which used local governments as instruments of political control for purposes of engendering racial and economic divisions within our communities. 

 

Today, municipalities serve to integrate our communities, to heal the impact of separate development and to establish a uniform identity for our people.   It is this sphere of government that will enable our people to speak with one voice one day and say:  We are Africans and so we will remain forever. 

 

Chapter 3 of our Constitution (Act 108 of 1996) talks of co-operative governance and establishes Local Government as a sphere of government in its own right.   Equally so, we acknowledge the centrality of this sphere of government in the integration and co-ordination of service delivery to our people. 

 

Every piece of legislation and policy has therefore, been directed towards establishing a representative, accountable and community-driven local government.   Both in terms of its internal management and development plans, local governments are required by statute to ensure that their programmes reflect the aspirations and ideals of their respective constituencies. 

 

The fact that local governments have now submitted their workplans for approval and pride themselves on the readiness to engage their communities in development and management planning bear witness to the fact that people have ultimately taken control of their own lives. 

 

This reminds me of four decades ago, the most historic and biggest assembly in the history of South Africa was held at Kliptown.  South Africans from all walks of life, black and white, rich and poor, defied all conceivable threats and pronounced in unison that: 

 

The people shall govern.

 

I am making a case before this House that the moment proclaimed by those who assembled at Kliptown has arrived.   Our people will now be able to pronounce on every aspect of their lives, decide on what they want today and tomorrow, given all known and conceivable constraints. 

 

We acknowledge that to be true to these achievements, we will need to evaluate the conduct of the “new public servant”.  The “new public servant” possesses new qualities.  Qualities that are contained and described in the Batho Pele White Paper.   The Paper requires a public servant that values public inputs, to extend courtesy and respect to the public and engage public resources in the most cost-effective way possible.   This conduct in managing public affairs will take us a step forward towards African renewal.   We will have these public servants, who pride themselves on Botho (Ubuntu) and value our public, at a point where it matters most, viz. municipal level. 

 

Hon Members of the Legislature and guests, this Government prides itself on numerous achievements regarding new legislative and policy developments.   The ultimate effects of these policies and legislation will be to change our lives and those of our communities beyond recall.   The first and very important piece of legislation is the Demarcation Act.   This Act will afford members of communities and their representatives the opportunity to participate in the re-determination of municipal boundaries.   It will ensure that our lowest tier of government is rationalised so as to become a “mean and lean” local government body.

 

Resultant changes will be of a magnitude that will affect the lives of millions of our people and will forever change the face of this Province, as we know it today.   I therefore wish to urge all municipalities, political parties, communities, business, NGOs, CBOs, traditional leaders and individuals to participate in this historic process.

 

To ensure and facilitate broad participation, the Provincial Government has already put into motion a task team comprising of provincial departments, organised local governments, unions, experts in different fields and rural and district councils to investigate and receive inputs to enable the province to provide a representative position to the demarcation board.  

 

The Municipal Structures Act provides a management framework for local government structures.   It has defined the role of public representatives and that of public servants and the conduct of each in respect of Local Government administration.

 

 

Structural relationships between councilors and traditional leaders are determined.  The historic tension between these two institutions will be eliminated.  Alongside this Act is the proposed Municipal Systems Bill, which will introduce, inter alia, a performance management system for municipalities. 

 

I hope that this Legislature will agree with me that the changes will be for the good and will improve our knowledge of municipalities, as we knew them in our past political lives. 

 

We now have a White Paper on Disaster Management.  It is a policy document that marks a serious departure from the past practice of “wait and see and perhaps react” as well as the departure from a culture where government resources were directed towards providing relief to a small segment of our society at the expense of the majority.  We are now able to recognise that some approaches to development planning can increase our vulnerability and risks towards disaster. 

 

We will now be able to ensure that our transportation systems, telecommunications, electricity and all forms of public sector infrastructure networks are able to withstand expected natural, other socio-economic and, sometimes, political threats.  We recognise in the White Paper that this approach to development acknowledges these services as a lifeline for our communities.  Hence disaster management should be an integral part of any form of planning. 

 

The Masakhane Campaign has been successful in mobilising our communities to be self-reliant and to acknowledge their civil duties.  The pinnacle of the campaign last year was the visit by the hon President on the 14th October 1998 to our off-farm housing project at Bothaville.  The project, which can be acclaimed as a “best practice” reflecting on integrated, participative and community-steered practices won a presidential award.  This year the campaign will be used as a vehicle to promote national holidays like Freedom Day, Human Rights Day, Youth Day and so forth. 

 

I am confident that Members of the Legislature and the public will agree with me that transformation is a dynamic and transversal programme of this Government.  It is a programme that will impact on general practices in public service but will also change, in miraculous ways, the lives of our people.  My Department is busy instituting a transformation unit to complement and give focus to an ongoing process of human resource development, business process re-engineering and re-orientation of employees to public relations as required by the Batho Pele Campaign.  Integral to the latter will be the integration of conflict management as a strategic objective and an instrument of management that will ultimately be passed over to local governments in the Province.  This will be complemented by initiatives of the following organisations:

 

·                    Free State Centre for Citizenship Education and Conflict Resolution;

·                    Centre for Conflict Management Resolution;  and

·                    Centre for Conflict Resolution.

 

These organisations will provide an institutional framework focussing primarily on conflict prevention and resolution. 

 

Hon Speaker, hon Members and the public know that we have a number of institutionalised tensions in some of our municipalities.  Part of this tension is political and part is structural.  The structural tension includes relationship problems between our traditional leaders and transitional local rural councils.  In due course, these problems will be addressed through the mechanism I have spoken about. 

 

Last year, I alluded to the fact that planning in South Africa has always been a political instrument.  I equally committed my Department to a vigorous process of implementing the provisions of the Development Facilitation Act and the Local Government Second Amendment Act.  These Acts respectively require municipalities to initiate Land Development Objectives (LDOs) and integrated development plans (IDPs).   I am happy to announce today that of the 99 municipalities, 77 have submitted their workplans, of which 61 have been approved.  The workplans set out plans for a process of establishing LDOs and IDPs.  All municipalities will, before the end of this year, complete their LDO’s and IDP’s and this will be integrated into the Provincial Development Planning Framework. 

 

Integral to this spatial and development planning process is the provision of tenure security.  Not so many years ago, our people were condemned to permanent residence in so-called “homelands” and were defined as “aliens” in the country of their birth.  They applied for and used lodging permits to stay in “white South African areas”.  My Department entered into a R24 264m contract with the Department of Land Affairs to ensure that our people receive tenure security.  To give life to this agreement, 24 264 new formalised sites will be created and transferred to the beneficiaries.  A further 21 600 informal sites in Thaba Nchu will be formalised and transferred to their rightful owners.  Out of our own budget, an initiative of 31 157 sites were created and transferred last year alone.  Forty-seven of these sites were rezoned to business.  At Makeleketla (Winburg), 2335 sites are being converted to full ownership.  Perhaps for the first time in their lives, the recipients of these sites will receive a piece of land and a place they will call “home”.  They will never again be under any threat of arbitrary eviction by anyone.  Indeed, they will taste and feel that at last, they too are free. 

 

Housing development is also a means of providing a home, a shelter and a right to a respectful life for the majority of our people.  This Provincial Government set a target in 1994 of 69 000 homes or houses for this first term of office.  To date, the Department has transferred a total number of 42 000 units, inclusive of newly constructed houses and upgraded hostels.  Still to be completed before the end of this financial year, are:

 

·                    A 1000 houses for rural housing in Qwaqwa;

·                    A 1000 off-farm houses at Bothaville;  and

·                    The 6000 institutional subsidies have been approved for an experimental high-density project in Bloemfontein. 

 

For the first time, this Department has ensured the allocation of 500 subsidies to the aged and persons with disabilities.  Construction of houses has already begun and the following towns have been identified:

 

Allanridge:        40 houses

Bloemfontein:      40 houses

Botshabelo:        40 houses

Edenburg:          40 houses

Ficksburg:         40 houses

Harrismith:        50 houses

Koppies:           40 houses

Memel:             50 houses

Reddersburg:       40 houses

Senekal:           40 houses

Steynsrus:         40 houses

Theunissen:        40 houses

 

I must also add that the identified towns and beneficiaries are a result of collaboration between my Department and that of Social Welfare. 

 

There are other equally important policy development and application initiatives that we will put in place to ensure that the Provincial Government is able to deliver much faster in the next financial year and term.  This Legislature will soon have to pass a Provincial Housing Act (currently a Bill) that will enable the Provincial Government to enhance delivery through the direct management of national housing funds.  Our current Land Administration Act will also enable us to ease the problems of state land transfers so that housing delivery can be hastened in rural areas. 

 

Municipalities, as agents of housing delivery, will also not avoid being under the microscope of this Department.  Housing officials and councilors are presently enrolled at the University of the Orange Free State (UOFS) for training on housing delivery.  Our ultimate target is to train 90 practitioners at this University. 

 

At the beginning of this financial year, the hon Premier announced that functions related to traditional affairs in the province will be handled by my Department.  As a result, the Department has established a directorate that will focus on this important function.  We have since developed the capacity to attend speedily to administrative matters of both the Provincial House of Traditional Leaders and Tribal Councils. 

 

In February this year, we hosted along with the House of Traditional Leaders, a huge traditional feast where we acknowledged the appointment of some leaders since 1994.  Indeed the occasion was one of the most spectacular moments of our Government this year.  Currently a policy on the role of traditional leaders is being researched and a white paper will be introduced soon.  My Department, in consultation with the House of Traditional Leaders, has suggested amendments to the current statutes and I hope to introduce them to the Legislature this year. 

 

Earlier, I spoke about a White Paper on Disaster Management.  However, I omitted to acknowledge hazardous incidents that befell some of our communities in the course of last year.  One such incident was the flow of Lesotho citizens into our country as a result of civil disruptions that nearly destroyed Lesotho’s economy completely.  Although local residents felt the strain that was caused by that inflow to affected towns, I believe that our economy as a whole may still have to shoulder much of the outcomes of that event.  Harrismith also suffered a serious blow when the town was struck by a tornado.  The majority of poor people suffered the loss of their homes and property. 

 

Winter veld-fires are often a yearly occurrence and people affected are farmers and farmworker communities.  With the advent of the El Niño phenomenon, most areas, especially the Northern and Eastern Free State, are under constant threat of floods.  Municipalities in particular need to be prepared in order to enhance their emergency response to these potential eventualities. 

 

The Y2K phenomenon poses a global disaster, particularly for municipalities.  Being Y2K compliance means that an organisation’s computer systems, including software, must be able to manage the date transition from 31 December 1999 to 1 January 2000 automatically, without any manual intervention.  In many cases older computers, if not compliant, will fail to start up.  This will have grave implications for all of us.  The following are a few examples of what could happen:  salaries may not be paid into bank accounts, accounts of all kinds may be lost, electricity may be cut-off without warning, petrol pumps may stop functioning, traffic lights may stop working - and so we can go on. 

 

All local governments must, therefore, ensure that their computer systems are Y2K complaint before the end of this year. 

 

May we briefly focus on the state of local government finance, a subject that we normally discuss in this Legislature?  The situation has necessitated the launching of Project Viability.  The project aims to identify local governments’ financial management problems, capacity and training needs and to institute management support programmes where necessary.  A process of training is now unfolding in some municipalities to address identified needs.  May I report briefly as follows:

 

Fourty eight management audits were conducted and 31 management support programme were instituted. 

 

Municipalities also experienced serious problems with regard to both payment and management of their personnel.  Although the Department assisted with the resolution of this problem, in the next financial year, resource availability will constitute a serious hindrance for my Department.  However, a small portion will be made available by the Department of Constitutional Development by means of a transitional grant.  I will therefore, call on those affected municipalities to find time to focus on the solution of these problems with their communities. 

 

I avoided talking at length about the state of local government finances, precisely because a Report has already been submitted to the Legislature and I think hon Members should have gone through it. 

 

On infra-structural support:  I wish to inform this Legislature that an amount of R163 734 950,97 was committed to 125 infrastructure projects during the 1998/99 financial year.  Currently, 71 are about to be completed and 51 are completed.  In the next financial year, 38 new CMIP projects were identified by the Executive Council with a monetary value of R54 million. 

 

With our capacity complemented by the CSIR, we have successfully ensured a high quality of water supply, sanitation plants and other natural water resources.

 

Budget 1999/2000

 

An amount of R131 971 000 is allocated for the 1999/2000 financial year.  This includes an amount of R55 million for personnel expenditure of the former R293 towns. 

 

Summary of Programmes:

 

Programme 1:  Support Services Sub-Directorate

 

An amount of R5 629 000 is allocated for the overall management, human resource management and supporting services function of the Department. 

 

Programme 2:  Technical Advisory Services Sub-Directorate

 

An amount of R3 971 000 is allocated for this Directorate to provide technical advice, assistance to TLCs and to provide technical evaluation of housing applications and projects.

 

Programme 3:  Spatial Planning Directorate

 

An amount of R12 049 000 is allocated for the following functions:

 

1.              Advice and support to TLCs and developers on matters pertaining to physical planning,

2.              Preparation of town planning schemes, guide plans and regional development; and

3.              Formulation of LDO’s and IDP’s (R5 478 000).

 

Programme 4:  Land Use Administration Directorate

 

An amount of R6 242 000 is allocated to this programme for land use administration and the management of the Township Board and Development Tribunal. 

 

Programme 5:  Housing Administration Directorate

 

An amount of R11 150 000 is allocated to this programme to promote effective housing provision and to facilitate the housing subsidy scheme.  This includes the management of the Housing Board. 

 

Programme 6:  Housing and Financing

 

This programme will be phased out in the 1999/2000 financial year. 

 

Programme 7:  Urban and Rural Planning

 

This programme is only used with respect to the personnel expenditure of the former R293 towns. 

 

Programme 8:  Local Government Finance

 

An amount of R10 548 000 is allocated to this programme to facilitate and promote viable Local Government infrastructure development. 

 

Programme 9:  Auxiliary and Associated Services

 

An amount of R11, 752 million is provided for infrastructure projects that are contractually committed and which will only be completed in the 1999/2000 financial year.  The provision of fire brigade subsidies will be part of equitable share allocation from 1999/2000.  Therefore, we did not make provision for that. 

 

Programme 10:  Local Government Administration Directorate

 

An amount of R4, 918 million is allocated to this programme in order to provide administrative and technical support to TLCs. 

 

Programme 11:  Traditional Affairs and Community specific services

 

An amount of R10,5 million is allocated to this programme in order to render administrative support to the management of traditional affairs and disaster management in the province.  No provision is made in the budget for standard emergencies and disaster management.  The Province will rely on the Disaster Relief Fund and the Presidential Budget. 

 

In conclusion, I want to thank my colleagues in the Executive Council for their support and understanding of issues of Local Government, hon Members of the Portfolio Committee on Local Government, local authorities and hon councilors and my officials for their selfless commitment to serving the community of the Free State. 

 

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