APPROPRIATION BILL

(Second Reading Debates ensued)

 

Vote 8: - Department of Local Government and Housing R370,062 million

 

The SPEAKER:  Any other statements by the Executive Members?  None.  By Members?  None.

 

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

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

 

The hon MEC, Mr Tsenoli.

 

Mr S L TSENOLI (MEC):  Hon Speaker, hon Deputy Speaker, hon Premier, Members of the Executive Council, hon Members of the Legislature, Members of the National Parliament, Permanent Delegates of the NCOP, mayors and councillors.

 

*Hail to the kings and the chiefs!

 

#The real wealth of a nation is its people.  The purpose of development is to create an enabling environment for people to enjoy long, healthy and creative lives.  This simple but powerful truth is too often forgotten in the pursuit of material and financial wealth.

 

Those are the opening lines of the first Human Development Report, published in 1990.  These reports trace the improvement or otherwise of people’s quality of life.  For us, it is a critical matter of reversing years of apartheid, political and economic misrule and mismanagement.  It is about the growing interdependence of people in today’s globalizing world.

 

During the historic conference, Habitat II, that took place in Istanbul, Turkey in 1996, local authorities identified that the most serious problems confronting cities, towns and their inhabitants include:

 

·                    Inadequate financial resources and a lack of employment opportunities;

·                    Spreading homelessness and expansion of squatter settlements;

·                    Increased poverty and the widening gap between the rich and the poor;

·                    Growing insecurity and rising crime rates;

·                    Lack of green spaces, inadequate water supply and sanitation; and

·                    Uncoordinated urban development and an increasing vulnerability to disaster.

 

Our South African municipalities face additional challenges.  These challenges are succinctly described in the White Paper on Local Government.

 

Local Government, as it is presently designed, cannot fulfil its constitutional developmental mandate of creating and sustaining humane, equitable and viable human settlements.

 

The Urban Development Framework released by the South African Department of Housing in 1997 is the main policy guideline for the implementation of Habitat Agenda in South Africa.  It outlines an urban vision that by 2020, South African cities and towns will be, amongst others:

 

·                    Spatially and socio-economically integrated, free of racial and gender discrimination and segregation, enabling people to make residential and employment choices to pursue their ideals;

·                    Centres of economic and social opportunity where people can live and work in a safe, healthy and peaceful environment;

·                    Centres of vibrant urban governance managed by democratic, efficient, sustainable and accountable metropolitan and local governments in close co-operation with civil society and geared towards innovative community-led development;

·                    Environmentally sustainable, marked by a balance between a quality-built environment and open space, as well as a balance between consumption needs and renewable and non-renewable resources.  Sustainable development, therefore, meets the needs of the present while not compromising the needs of future generations;

·                    Planned in a highly participatory fashion that promotes the integration and sustainability of urban environments; and

·                    Marked by adequate housing infrastructure and effective services that provide households and business a basis for equitable standards of living.

 

The Budget we speak about today is aimed at implementing this agenda in our Province.

 

The global picture we have referred to earlier, require that we have to act not only locally, but also globally - as we will indicate in our closing remarks.

 

A policy on Municipal International Relations is in the offing this year.  The Department will act as conduit for information and as facilitator of international contact.  The Department will be collaborating with stakeholders in setting municipal international relations priorities.

 

Our vision of developmental local government should be our beacon at all times.  We need to intensify our co-operative efforts amongst the three spheres of Government, namely National, Provincial and Local Government.

 

This month last year, at a conference entitled Intergovernmental Relations:  Fostering Mutual Co-operation, the President, in his concluding remarks, went to the heart of the matter when he characterised the challenge we face in the following manner:

 

Whatever challenges this new government faces, we should at least have worked on proposals that address the elimination in Provincial Government of structural blockages, duplication and the consequent wastage of resources.

 

Our fundamental challenge is to construct a truly developmental state.

 

More than by rules, we should be driven by the vision of creating a people-centered society, with institutional ways of measuring progress.

 

Consistently, our state system should be enterprising and innovative, fighting a permanent struggle against bureaucratisation for the involvement of the people in determining their destiny and in keeping with our concept of people-driven processes of change.

 

Our provincial and local government structures have a critical role to play towards the realisation of these objectives, which must in practice become a defining feature of our democracy.

 

Critical to achieving what we have just said, is the degree to which there is greater intra and intergovernmental co-ordination.  To this effect, we intend to increase our working relations with the Departments of Finance, Expenditure and Economic Affairs and Environmental Affairs & Tourism in promoting local economic development.

 

The anti-poverty strategy as well as the Integrated Rural Development Strategy of the Province, led by the hon Members, Ms Buthelezi-Phori and Mr Tate Makgoe, respectively, requires that we increase our co-ordination in order to maximise the impact on those two critical areas.

 

Partnerships such as the ones we have with GTS and the Urban Upgrading Development Programme (UUDP) on housing and our partnership with the University of the Free State on capacity building for officials and councillors on housing development, as well as language policy and planning, are crucial ways of working.

 

Soon we will be announcing the launch of the reactivated PROVLOC.  A platform we are creating is to improve better co-ordination, communication and synergy between provincial and local government, including with provincial offices of national departments.  Each of us in the Executive Council will also have a specific forum to relate on a regular basis with Local Government.

 

In our area, we will create what has been styled MECLOGA (MEC/Local Government Association), a forum aimed at promoting co-operative governance, consultation and co-ordination, and participative decision-making with SALGA-Free State. 

 

The transformation of Local Government is underway.  The Municipal Demarcation Board has finalised the determination of Categories A, B and C municipalities.  There will be 20 local and five district municipalities for the Province.

 

We shall in the near future publish Section 12 Notices for the disintegration of “old” municipalities and the establishment of new ones.  We will be assisted and advised in this regard by Facilitation Committees that will be established for that purpose.  We expect intense consultation about the contents of these notices of new municipalities, the number of part-time and full-time councillors and powers and functions of these new municipalities.

 

The Board is currently engaged in delimiting wards for the to-be established municipalities.  Comments and inputs by role-players and stakeholders have been invited up to the 31st of March 2000.

 

In our effort towards integrated service delivery and the ideal of the one-stop centre concept, the Executive Council has approved seats of new District Councils as follows:

 

·        Phuthaditjhaba/Qwaqwa (Eastern Free State),

·        Welkom (Goldfields),

·        Sasolburg (Northern Free State),

·        Bloemfontein (In the Heart), and

·        Trompsburg (South).

 

In the meantime, the Independent Electoral Commission is engaged in the registration of voters for the forthcoming November 2000 municipal elections.  We call upon all our people to ensure that they are properly registered as voters, because that is going to determine the allocation of the number of councillors in those areas.  It is important that a maximum number of people are registered, at least by the 31st of March 2000.

 

Other key transformation issues underway, include the Municipal Structures Act (1998) for the political restructuring of municipalities; the Municipal Systems Bill (1999) for administrative change in municipalities; financial legislation for municipalities which will include financial management and property tax; the Disaster Management Bill which sets out the institutional framework for disaster management in municipalities; and national and provincial legislation to follow on the forthcoming White Paper on Traditional Affairs.

 

This year will see the launch of the White Paper on Traditional Affairs and a repeal of former Qwaqwa and Bophuthatswana legislation dealing with matters related to traditional leaders in the Province.  This policy document will address issues that include the appointment of traditional leaders, party political affiliation of traditional leaders, remuneration, relationship with Local Government and the trans-provincial and trans-national implications.

 

In line with the President’s Opening Address on the 4th of February 2000, the Provincial Government will seek to maintain credible relationships with traditional leaders and their institutions.  This is a challenge for the Provincial Government, but equally so for local government as well.

 

The role of women in local government has often been understated and continues to be relegated as an after-thought.  There are 212 women Councillors out of 1202 Councillors in the Province.  There are only 8 female Mayors, 26 female Deputy Mayors and 7 female Chairpersons of Executive Committees.  Clearly this is not equitable.  Women need to be empowered and I challenge political parties led by the ANC to put more women on their candidates’ lists for the forthcoming municipal elections.

 

The transformation of our human resources and development is on course.  The Department has a service delivery improvement plan in place and it is in accordance with the Batho Pele requirements.  A Departmental Transformation Unit has been established and is functional.  Our Human Resource Development Plan will be completed soon, once the Department has finalised its proposed organisational structure.

 

We remain committed to ensure that our officials are fully capacitated to perform their tasks with vigour and enthusiasm so as to realize the implementation of our constitutional obligations.  Whilst the Department is not ideally representative, measures are being taken to ensure representivity in terms of gender, race and disability at all levels, consistently with our policy as Government.

 

The national budget allocation favours a bigger slice for Local Government.  An amount of R500 million has been set aside to promote restructuring initiatives:  R300 million for larger municipalities (metros); R150 million for smaller municipalities and R50 million towards the improvement of financial management.

 

An amount of R28 billion is earmarked for the consolidated municipal infrastructure programme whilst R238 million is destined for housing projects in the Province.

 

My Department is not only concerned with the financial capacity of municipalities, but their institutional changes as well.  To this extent, the strengthening of the internal capacity of municipalities, instead of the perceived “policing” through monitoring and supervision, will be intensified.  The Local Government Sector Education and Training Authority (SETA), which will be established in April 2000, will play a major role.

 

Project Viability is a programme that started in the Free State with a view to monitor the financial viability of municipalities and to ensure that it continues.  The crisis that does exist in some of our municipalities is both historical, but can also be attributed to several other factors including inadequate management capacity, poor communities and council relations.

 

As a last resort we often have to invoke Section 139 of the Constitution as we have done in Tweeling and Viljoenskroon.  This intervention has been reviewed in order to ensure that there is maximum co-operation between all spheres of Government in supporting municipalities that are in financial trouble.  In the case of the two TLCs mentioned here, we are glad to indicate that, for the first time, they show a positive bank balance and we are in the process of embarking on retreat.

 

*Poverty is a problem that exists all over the country.  The main thing is for each Department to show commitment and a responsibility in minimising and eradicating poverty.  My Department is making a big effort in finding ways of implementing decisions that have been made to ensure that our people do not live in poverty, through different ways of service delivery and the building of houses.

 

The Executive Council of the Free State has established a Committee whose aim it is to foresee that all Departments ensure the eradication of poverty.  All the projects that we are involved with are mainly about minimising or eradicating poverty.  That is why, very soon, we will be giving out our plans of emphasising our role in this campaign.

 

#Poverty is often associated with disease, especially HIV/AIDS.  Communities are being depleted of adults.  This affects our housing programme.  Although no clear strategy exists as yet, we are developing a co-ordinated awareness and education programme in association with other Members of the Executive Council and other forums that have been created.

 

Planning laws and policies are in urgent need of transformation.  The Department is in a process of reformulating the planning and development laws in an attempt to create legal uniformity and to redress the legal and administrative chaos of Apartheid.

 

The Development Facilitation Act (DFA) was intended to fast-track land release for various developmental purposes.  Work is however underway to rewrite planning and development legislation at a provincial level.  It is our intention, through this process, to ensure that municipal planning and the function of regulating land development is vested in the municipalities.  To complement this, other processes of formulating policies on erf sizes are undertaken, as well as the implementation of mixed use of land.

 

The Department provides support to municipalities to draw up land development objectives, which will be followed by integrated development plans.  We continually call on our colleagues from other Departments to participate fully in this process and thereby promote integrated development.  The amalgamation of municipalities, as concluded by the Demarcation Board, will mean that these land development objectives will be reconciled to produce coherent plans, both at local and district level.

 

As far as Government is concerned, the responsibility for stimulating economic growth and job creation is no longer reserved for the national or provincial spheres of Government.  One of the five key objects of Local Government is the promotion of socio-economic development.  Several municipalities have already devised local economic development strategic plans.  Municipalities, therefore, need a clear vision for the local economy and to work in partnership with local business to maximize job creation and investment.

 

As part of our Job Summit commitments, the National Cabinet approved a Local Economic Development Fund to the tune of R1,5 million per accepted project.  The Provincial Government and National Government will work together to ensure the success of all projects and to promote the local economy.  Four municipalities in the Free State will benefit from this programme, namely Botshabelo, Virginia, Harrismith and Welkom.

 

Some areas affected by large-scale retrenchments are experiencing economic decline.  Government has initiated a Social Plan Fund through which qualifying municipalities can conduct a local economic regeneration study and also to develop early warning systems in the economic environment.  An amount of R50 000 has been set aside for four municipalities in the Free State Gold Fields, namely Welkom, Virginia, Odendaalsrus and Henneman to conduct such studies.  These studies are critical, for they lay the basis for future action by these municipalities to arrest this decline and to kick-start economic development.

 

Disaster management forms part and parcel of the planning process.  The Free State Province is vulnerable to specific types of disasters.  Our vulnerability includes veld fires in rural areas every winter, that destroy properties and livestock of farmers and poor rural families across the Province.  Random storms across the Province and snow in the Eastern Free State subject the majority of our people to hardships.

 

These people often, if not always, have no chance of replacing their losses through insurance claims or family savings.  A case in point is the recent floods in Qwaqwa.  As we speak, the Disaster Management Committee of the Executive Council, after assessing flood damage in the area, have agreed with the Premier to ask the Minister of Provincial and Local Government, Cde Sidney Mafumahadi, to declare the area a disaster area.

 

As our top priority, the Disaster Management Committee is in the process of establishing an operations centre for management of all disasters at provincial level.  The centre will co-ordinate all disaster management activities at a provincial level and serves as a point of entry for communication.  Resourceful personnel and Information Centres will be devolved and established at all District Council offices.

 

As a signatory to the Habitat Agenda, the South African Government has the responsibility to interpret the principles of the Habitat Agenda into our local situations and monitor the implementation of our commitments to the agreement.

 

Local Agenda 21 aims to change the way Local Governments are organised and operated to ensure that municipal services can be sustained and equitably distributed between current and future generations.  There is a constant need for exchange of ideas and a continuous learning process around this programme.

 

We are continuing the debates on sustainable urban development and assessment of the implementation of the Habitat Agenda.  To this end, a special session of the United Nations General Assembly (Habitat-5) will be held in New York in 2001.

 

Sometime in 1998 and in preparation for this session, the then Deputy President Thabo Mbeki, and the then Chancellor of Germany, Mr Helmut Kohl, agreed to co-operate on sustainable development under the framework of the Global Environmental Initiative (GEI), with Singapore and Brazil as other partners.  The outcome of this co-operation is the global Conference - Urban 21, in Berlin in July 2000.

 

Locally, South Africa will be hosting an African Regional Conference on Urban 21 on 27 to 28 March 2000.  The theme of the Conference will be:  African Solutions Towards Sustainable Urban Development.

 

Deliberations at this Conference will assist African countries to prepare themselves for 2001 Habitat-5.

 

In support of the (Habitat) campaign for secure tenure, we are developing a range of mechanisms both normative and operational that will facilitate the physical and social consolidation of secure tenure.  The first and most important cluster of policies, skills and activities will focus on the promotion of efficient land markets.  This will include policy instruments and legislative guidelines, as well as more technical components such as cadastration of urban land, registration of titles and systems of record keeping.

 

Our commitment to develop rural areas, serves as a basis on which we intend to satisfy the needs of the majority of our people.  It must be remembered that in the Free State, we were the first to build houses for farm workers at Bothaville under the pilot scheme of the off-site housing project.  The same goes for Fauresmith.  We have also allocated 1 000 subsidies for village-housing projects in 9 wards in Qwaqwa.

 

A substantial number of houses have already been completed and occupied by beneficiaries.  We have also approved the implementation of an agri-village project, the first of its kind in the Province.  We hope and believe that these pilot projects will teach us the necessary lessons that can be replicated elsewhere.  This is in line with the Government's Sustainable Rural Development Programme.

 

The second cluster will focus on improving shelter conditions by strengthening the capacity of municipalities to work with community-based organisations, mobilising housing finance and micro-lending, as well as promoting the use of sustainable building materials and methods.

 

Turning now to the Budget allocations per programme in our Department, the totals are as follows:

 

Programme 1

(Administration Management)

R7 716 000

 

 

Programme 2

(Technical Advisory Services)

R3 495 000

 

 

Programme 3

(Spatial Planning)

R10 924 000

 

 

Programme 4

(Land Use Administration)

R6 933 000

 

 

Programme 5

(Housing)

R14 681 000

 

 

Programme 6

(Housing and Financing)

 

R218 306 000

#Programme 7

(Urban and Rural Planning)

R68 101 000

 

 

Programme 8

(Local Government Finance)

R11 329 000

 

 

Programme 9

(Auxiliary and Associated Services)

R9 559 000

 

 

 

Programme 10

(Local Government Establishment)

R6 495 000

 

 

Programme 11

(Traditional Affairs and Community Specific Services)

R12 523 000

 

 

TOTAL

R370 062 000

 

The rest of the Budget is as it stands.

 

In conclusion, the UNDP’s 1999 Human Development Report, having evaluated the contestation around globalisation, argues in the following manner with which I believe the people of the Free State will be justified in agreeing to: 

 

The challenge of globalisation in the new century is not to stop the expansion of global markets.  The challenge is to find the rules and institutions for stronger governance at local, national, regional and global level to preserve the advantages of global markets and competition.  But it must also provide enough space for human, community and environmental resources to ensure that globalisation works for people, not just for profits.  Globalisation with:

 

Ethics:            less violation of human rights, not more.

Equity:            less disparity within and between nations, not more.

Inclusion:         less marginalisation of people and countries, not more.

Human security:    less instability of societies and less vulnerability of people, not more.

Sustainability:    less environmental destruction, not more.

Development:       less poverty and deprivation, not more.

 

Let me express my gratitude to officials of my Department, Councillors and Council officials, role-players and stakeholders in local government, and members of this House for their support in the past, as well as their support in the exciting challenges that lie ahead.

 

Special mention goes to the Provincial Housing Development Board, the Townships Board and the Local Government Transformation Forum comprising of FRELOGA, SAMWU, IMATU, ILGM, IMFO, IMPP and relevant provincial Departments for their unfailing support.  It has been a privilege watching all these people working together as a team.

 

Finally let me conclude by citing the fifteenth century leader Colt, who said that when the work of the best leaders is done, the people themselves say we have done it ourselves.  [Applause]

 

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