APPROPRIATION BILL

(Second Reading Debate)

 

Vote 9:  Public Works, Roads and Transport.  R442 547 000

 

The SPEAKER:  We then proceed to 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 9:  Public Works, Roads and Transport. 

 

The hon MEC, Mr Malebo.

 

Mr S M A MALEBO (MEC):  Hon Speaker, hon Premier of the Province, Dr Ivy Matsepe-Casaburri, hon Members of the Executive Council, hon Members of the Provincial Legislature, comrades, ladies and gentlemen.

 

It is a great pleasure to address the Provincial Legislature at the time when we are left with only a few months before the second democratic elections scheduled to take place on the 2nd of June 1999.

 

This final sitting of the Parliament and the Provincial Legislature challenges all of us to take stock and make critical appraisals of the transformation process that the ANC initiated and has led since our first democratic elections in April 1994.

 

As it has been repeatedly said by the Deputy President, Comrade Thabo Mbeki, the first term of the ANC Government of National Unity was largely devoted to repealing the Apartheid laws, introducing legislation aimed at meeting the needs of all South Africans and laying the basis for national reconciliation, reconstruction and development.  The next challenge clearly is to implement the relevant policies and legislation and thereby deepen the transformation of the South African society in general and ensure that even the poorest of the poor continue to benefit from the country’s political miracle.

 

The programme of the ANC Government of National Unity has resulted, amongst others, in broad reaching legislation on Public Works, as well as Roads and Transport.  This has led to the institutionalisation of the Affirmative Procurement System in the Construction Industry, which has assisted a great deal in the emergence of SMMEs (Small, Medium and Macro Enterprises) and significant black economic empowerment.  The Community Based Public Works Programme was introduced as a short-term measure to deal with job creation and poverty alleviation.  We have also managed to create a national vision of Public Works by developing a White Paper on Public Works, called Towards the 21st Century, which has far-reaching implications for our National Public Works and Asset Management Programmes.

 

With regard to important issues of Roads and Transport, the ANC Government of National Unity took a new road.  The following are characteristics of this new road of the Government:

 

·        The White Paper on Roads and Transport of 1996;

·        The various amendments to the Roads Traffic Act;

·        Establishment of agencies;  and

·        Restructuring of the taxi industry and an investment of R25 million that was recently invested in Vision 2020, arising from the Moving South Africa Research Project.

 

The achievements of the above effort were made possible by the adoption of the new Constitution which ensures the creation of the provincial governments and which is vociferous on the promotion of co-operative governance.  Such co-operative governance has allowed this Province, together with other provinces, to sit together with the relevant National MECs and reach consensus on national policies to be pursued as part of the transformation agenda of the ANC Government of National Unity.

 

This can only make all of us marvel at the achievement of the Constitutional Assembly, and celebrate the democratic victory that all the fallen heroes of the national struggle for liberation have brought this country.

 

The transformation agenda mentioned above was not only restricted to the national level.  Much was also achieved at Provincial level.  Hon Members of the Legislature will recall that Provincial departments were only created in 1994, again as part of the constitutional transformation of the country in general and the Free State Provincial Administration in particular.  In 1996, the Provincial Department of Public Works, as well as that of Roads and Transport, was amalgamated to create the present Department of Public Works, Roads and Transport.

 

Since the beginning of the political transition, the demographics of the Department have changed significantly.  This will be clearly illustrated when I deal with the achievements of my Department later on.

 

However, positive impact on the infrastructural development of the Province has been severely constrained by successive budget cuts in the last five years.  For example, the Department’s Budget has declined from an amount of R765 million in the 1996/97 financial year to R653 million in the 1998/99 financial year.  It now stands at R442 million.

 

This means that the current budget is only 58% of the 1996/97 financial year.  This has severely hampered the ability of the Department to deliver in the manner expected.  This declining budget trend has, however, challenged the Department to begin to do more with less as it has become the practice all over the world.  It compels the Department to establish an organisational culture characterised by:

 

·                    The efficient and effective management of Government resources;

·                    Strict prioritisation of how the relevant resources will be deployed;

·                    A reduction of personnel costs which will include specific strategies to reduce the number of personnel on the Central Redeployment Data Base, and encourage officials over the age of 55 to consider early retirement packages;  and

·                    Promotion of vibrant partnerships between the Provincial Government and the private sector in the implementation of capital projects.

 

The Free State Land Administration Act (Act 1 of 1998) is one of the achievements in 1998 that we would like to mention.  These, together with the enactment of the Free State Interim Passenger Transport Bill (2/98) and the Roads Ordinance (16/98) which was amended by this House, are major milestones that will determine the future of this Department.

 

PUBLIC SECTOR SERVICE DELIVERY TRANSFORMATION

 

In my Budget Speech of 1997/98, I committed myself as well as the Department to become more service oriented.  The Department has made significant progress with regard to this.  A Departmental Transformation Unit and Departmental Transformation Forum have been established.  The process of consultation for the Batho Pele Service Delivery Improvement Plan has started.  Although there is still much to be done, the foundation for Transformation of Service Delivery has been established.

 

The new Head of the Department started in May 1998 and all but one of the senior manager posts have been filled.  Representation in our Department of the population’s demographics is continuously evaluated for further corrections.

 

We currently employ 6407 people in our staff.  The gender distribution is as follows:

 

·                    Male – 4663; which constitutes 72,8% of the departmental staff; and

·                    Female – 1744; which constitutes 27,2% of our staff component.

 

In the management of the Department - that is from Deputy Director and above - we have 65% black and 35% white members, with 48% being male and 16% being female.

 

FIXED ASSETS: LAND AND ACCOMMODATION

 

About 1110 fixed assets are owned by the Free State Government.  This includes 162 undeveloped areas and some farms.  Most of these farms form part of the nature reserves such as Willem Pretorius, Soetdoring and Tussen die Riviere.

 

The Department is in the process of identifying houses that are being utilised uneconomically by determining the market prices either for rental or disposal.

 

In terms of Treasury instructions, all rentals with regard to State Housing should be market related.  The Department is already correcting some areas where rentals for State Housing are not determined in terms of the market.  In other areas the Department is transferring houses to Local Authorities.  With regard to Die Bult houses in Qwaqwa, the good news are that all the houses identified have already been evaluated and the decision had been taken that the houses will be sold at the price determined by the evaluator.  The Department intends to sell the houses directly to interested parties.

 

The lessons we have learned from the Qwaqwa experience will assist us in finalising the same situation at Gariep Dam.

 

PROFESSIONAL SERVICES

 

The following Capital Projects were completed or are almost completed:

 

-    Eleven clinics;

-    Six Hospitals;

-                     The Kroonstad place of safety;

-                     Tshireletsong Home in Bloemfontein;

-                     The Barend van Rensburg offices;

-                     The Government Garage buildings in Bloemfontein;

-                     The Hamilton and Welkom Testing Centres;

-                     The work at Soetdoring Nature reserve was completed; and

-    Nine libraries were also completed.

 

Forty-five contractors and SMMEs worked on these projects.

 

Several maintenance projects were completed, such as the erection of the granite block with the Lebohang name, fencing, installation of incinerators, paint work, upgrading of some air conditioners, reparation of roofs, testing and reparation of lifts and cranes, water meters and water pipe work.  The Free State is divided into West, South and East Regions.  These regions undertook 34 maintenance contracts for buildings to the value of R5, 428 million during the year.  Of these, 17 were awarded to previously disadvantaged individuals.

 

THE PUBLIC WORKS PROGRAMME

 

Of the R40 269 080 made available to date for the Free State Community Based Public Works Programme (CBPWP) for the financial year 1996 and 1997/98, about R36 961 586,45 has been spent.  The remaining R3 307 493,55 is expected to be utilized before the end of the 1998/99 financial year.

 

Almost 114 projects have been identified in co-operation with various communities in the Free State.

 

Six environmental projects, such as once-off clean-up campaigns and upgrading of cemeteries, to the amount of R1 076 245 were implemented.

 

An amount of R5 208 740 was allocated for nine storm water drainage projects as well as the reconstruction of a dam.  Most of these projects have been completed.

 

TRANSPORT PLANNING

 

The Free State is a dynamic and fast growing Province that plays a significant role in the national economy of South Africa, hence the need for spatial development.  This has an impact on available space, as well as on existing and envisaged road infrastructure.

 

With the change in Government, the Department modified its policy of providing access roads to developing communities by including the internal main collector streets within these communities in the Department’s functions.

 

In the past there were several directorates executing the different functions related to transport planning.  However, with the transformation of the Department, the following functions were grouped under one Directorate:

 

·        Road Planning;

·        Road Traffic Engineering;

·        Planning Administration; and

·        Transport Information Systems.

 

During the 1998 - 1999 financial year, the following was achieved:

 

·        Service delivery has been improved in the field of issuing abnormal load permits;

·        The more sophisticated Accident Management System is currently leading the way for other provinces;

·        Eight access road projects have been planned and designed and the necessary liaison processes have been undertaken.  These road projects have not yet been constructed.  Therefore, eight communities stand in line to be economically uplifted through the provision of access roads and internal main collector streets when funds for the construction thereof become available.

 

Notwithstanding the achievements with regard to the above, there are an additional 70 community projects that are still in urgent need of assistance from the Government and eight road projects have been planned.

 
ROAD CONSTRUCTION & MAINTENANCE

 

The participation of South Africa in the global market during the last few years has seen a drastic move to road freight.  Based on the current growth, heavy traffic on our roads will double by the year 2020.

 

However, with the budget cuts, since 1992, there has been an annual increase of approximately 2% in the length of poor and very poor pavements in the road network.  If this trend is allowed to continue, 50% of the road network will be in a poor or worse condition in the year 2000.

 

For the period 1994 – 1998, the following was achieved:

 

·        Nine new access road;

·        The 22 road bridges;

·        Six roads were upgraded;

·        Three roads were rehabilitated;

·        Five roads were repaired and resealed;

·        The overloading-control weigh bridge at Kroonstad was completed;

·        The 886 officials from construction and maintenance attended training courses;

·        There were 45 SMME contractors that were trained in road construction and as trucking contractors; and

·        There were 3453 direct jobs that were created from the above projects by the contractors, subcontractors, joint ventures and SMMEs.

 

The Department is currently working with the Rural Council, which is representative of farmers in various regions of the Province, to develop joint ventures regarding the construction and maintenance of roads in the rural areas of the Province.

 

REDUCTION IN ROAD FATALITIES (TRAFFIC MANAGEMENT)

 

In terms of reduction, the credit card type drivers’ licences were introduced on 1 March 1998.  Much progress has been made with conversions from old drivers’ licences to the new cards.  To date, 191 841 cards have been issued.  This has generated an income of R11, 789 million and half of this amount goes to the provincial revenue.

 

To curb motor vehicle crime, a system by which a new motor vehicle can only be introduced by a registered manufacturer after being manufactured, is in operation.  There is a decline in vehicle crime.

 

Very soon NATIS will introduce an accident and contravention module which will facilitate the process of tracing traffic offenders and the prosecution thereof.

 

GOVERNMENT GARAGE VEHICLES

 

The abuse of Government vehicles is still a nightmare for this Directorate.  A total of 101 vehicles were impounded in our Province due to invalid or unauthorised or incomplete logbooks.

 

GRADING STATIONS AND TESTING STATIONS

 

These are the stations responsible for the examination of vehicles for roadworthiness.  Twenty-seven applications for Grade A stations were submitted to the SABS, all of which were approved.

 

Testing Centres

 

We have one "A" grade-testing centre for drivers’ licences, five Grade B and 18 Grade D-testing stations.

 

Training College

 

The Training College has conducted training for 88 traffic officers for the Northern Cape and some municipalities of the Free State.  Fifty-nine examiners for drivers’ licences, ten examiners of vehicles and five examiners for K53 light motor vehicles were trained.

 

Capacity building and development of personnel has already been given attention in the establishment.  Sixty officers attended a workshop on drivers’ licences.  Basic fire fighting was presented to 50 trainees.  Defensive driving was presented to ten trainees and 50 trainees attended First Aid training course.

 

Traffic Policing

 

Regions and authorities received advanced equipment such as laser (sic) guns and Dragger breathalysers around November December 1998.  A total amount of 6 253 speeding notices were issued before the use of our advanced technology.  After the implementation of the laser gun during the period January 1999 to February 1999, a total of 3428 speeding notices were issued.  This constitutes an increase of nearly 147%.  In other words, in two months more work was done on speeding than in the past nine months!

 

Discipline

 

I need to inform the hon House that my Department’s performance and progress were almost seriously stalled by lack of discipline, mainly from a handful of traffic officers.  They have done all sorts of things such as:

 

·        Stopping the delivery of services to our clients as they pleased;

·        Insubordination;

·        Holding unofficial meetings during office hours;

·        Interrupting the sitting of the Executive Council;

·        Unprocedural marches to the Legislature; and

·        Addressing top management with no respect.

 

My Department had to act, otherwise, we would find the Department destabilised by a handful of people with ulterior motives.  My Department has restructured traffic management.  There are senior officers who had to be transferred from one Sub-directorate to another, Chief Provincial Inspectors transferred from one region to the and charges of misconduct are being investigated.  All these measures were applied to restore discipline and work ethic.

 

PUBLIC TRANSPORT MANAGEMENT

 

The Province has managed to complete the first phase of registration with the issuing of Conditional Registration Certificates on 18 December 1998.  An information system has been developed and a database created on all taxi operators in the Province, including:

 

·        Details of 93 associations, and their leadership is based in the Free State;

·        Descriptions of all routes and operators, set out by the Taxi industry; and

·        Particulars of 14 000 taxi operators, including more than 7 000 are vehicles operated by them.

 

Phase one of the democratisation process has been concluded, resulting in the creation of 86 democratically elected Executive Committees, 86 Dispute Committees and 86 Disciplinary Committees.  To date, more than 1 000 operators have been compelled to acquire roadworthy certificates for their vehicles.

 

TRAINING AND CAPACITY BUILDING

 

More than 400 people have been trained in the taxi industry, including operators and drivers.  The training programme mainly covered:

 

·        Driving skills;

·        First Aid;

·        Road safety; and

·        Business skills.

 

SCHOLAR TRANSPORT

 

For the sake of time, I will not refer to the scholars’ transport, which I think this hon House knows about.  I will rather refer hon Members to the initiatives we have taken on scholars’ transport and on bicycle transport for scholars.

 

BUS SUBSIDIES

 

On bus subsidies, I wish to mention to this hon House that the tender process for bus services in the Bloemfontein, Botshabelo and Thaba-Nchu areas has been successfully implemented.  The tender contract has been structured in such a way that SMMEs will benefit from the subcontracting of 10% of the distance travelled by the operators.  In addition, the contract allows that a further 10% of the kilometers traveled be sub-contracted to SMMEs.  This means that the SMMEs could benefit from up to 20% of the distance travelled in the contract.  Plans are underway for the implementation of a monitoring strategy and systems for bus contracts.

 

TRANSPORT FOR PEOPLE WITH DISABILITIES

 

In an endeavour to help people with disabilities, a once-off grant of R598 000 has been allocated for transfer to the Association for People with Disabilities.  A task team has been established to investigate the existing public transport systems to make it more accessible to all.

 

4.   THE 1999/2000 BUDGET

 

In order to have an understanding of the performance of this Ministry, it is important to realise that the Budget of this Department declined from an amount of R765 million in 1997 to R653 million in 1998 to only R442 million for the 1999/2000 financial year.  This means that the Budget is only 58% of what it was in 1997.  What aggravates this, is that personnel expenditure rose by 5% during the same time.  The result is that the professional service’s budget used for capital projects, contracts, SMMEs development and empowerment was cut by 74%.

 

The consequences of the cuts are as follows:  I am to conclude my Speech.  I raised the point in the restructuring of the Department to deliver the core services at an affordable price and acceptable level.  Notwithstanding the fact that certain functions were devolved to the Province, the social and road infrastructure budget for the Department declines every year to this extent.  The Budget for the financial year is only 50% of that provided for in 1995/96.  This had major implications for the programmes.

 

PROGRAMMES ENVISAGED TO BE EXECUTED IN THE 1999/2000 FINANCIAL YEAR

 

The budget cut of more than 42% in the Departmental Budget over the last two years, without allowing for any decrease in personnel costs, has forced the Department to cut on capital expenditure.  The situation has now deteriorated to the extent that some functions cannot be maintained any longer and will have to be sacrificed and to continue only the most important functions, which are mentioned below.

 

Only in cases where a user department supplies the funds, will new capital projects be undertaken.  Although the need still exists, almost no new funds can be committed to the Community Based Public Works Programme (CBPWP).

 

PROFESSIONAL SERVICES

 

The Tsiame Clinic and libraries at Fauriesmith, Paul Roux and Fouriesburg will continue in the next year.

 

PUBLIC WORKS PROGRAMME

 

In terms of the Public Works Programme, two access roads will continue as well as community halls in Boshoff and Smithfield and a crèche in Luckhoff.

 

All the projects where allegations of mismanagement were made have been referred to the Heath Special Investigating Unit and charges of fraud were laid with the SAPS.

 

ROAD PROJECTS

 

We will continue with the projects in Thabong, Qwaqwa, and Bothaville and with the bridges in Thabong.

 

I will not go into the implications of the Budget with regard to Transport, but allow me to conclude with this point:

 

Next to education, an effective and efficient Transport system is the second most important catalyst in a country’s social and economic development.  Someone in America said:

 

It was not our wealth, which made our good roads possible, but rather our good roads that made our wealth possible.

 

This is an important message for us in the Free State.  Transport is central to development.  Without physical access to jobs, health and education, quality of life suffers.  Without physical access to resources and markets, growth is not possible and poverty reduction cannot be sustained.  I will not dwell much on the analysis of what I am saying, except to just say that the link between Transport and Trade is strong, and good transport is essential for competing in the modern economy.

 

With the severe budget cut, as well as the challenges that confront us, I am of the opinion that the Department is at a crossroad.  We think that for us to be able to survive and serve our people, we have two options:

 

-    Either to stay as we are and deliver a service based on the availability of funds; or

-                     To see the budget cut as a challenge whereby we commit ourselves to do more with less.

 

In the last instance, it is important that the Department be restructured in order to achieve this objective.

 

Unless we take drastic steps, irreversible damage will be done to the condition of our roads.  I do not want to go into that, as I have already spoken about it.  I am of the opinion that the limited funds are the major constraints for our proper functioning.  If we want to address the problem, it is important that we should have an understanding of the external as well as internal challenges.

 

The SPEAKER:  Your has expired, hon Member.

 

Mr S M A MALEBO (MEC):  In conclusion, we have approached Cabinet with two proposals in order for us to obtain either a loan or to establish a dedicated fund for infrastructural development that can be derived from revenue generated by the Province.

 

I will conclude the rest of my Speech when I respond to the other points of the debate.  I refer hon Members to the points that are in front of them.  [Applause]

 

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