APPROPRIATION BILL

(Second Reading Debate)

 

Vote 9 – The Department of Public Works, Roads and Transport:  R576 103 000

 

#The ACTING SPEAKER:  I want to believe, hon Member, that your statement was an independent one and not a response to the statement made by the hon MEC, Mr Mokitlane. As you know, in terms of our Rules, we do not allow a debate on statements by hon Members in the House.  I want to believe that you were not responding to his statement.

 

Any further statements by hon Members?  None.

 

We now proceed to Motions.  Motion 1 reads as follows:

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

 

The Vote before the House is that of Public Works, Roads and Transport.  The hon MEC, Mr Malebo.

 

Mr S. M. A. MALEBO (MEC):  Hon Premier, hon Members of the Executive Council, hon Members of the Legislature - may I also give special recognition to my colleague, the hon MEC for Public Works, Roads and Transport in our sister Province, the Northern Cape, the hon Mr John Block.  Madam Premier, I must assure you, he is not here because...

 

*... I am married to a girl from the Northern Cape.

 

#It is purely for professional reasons. 

 

*Our leaders and the community...

 

#...distinguished guests and fellow Free Staters, the future of this Province is bright.  When we reflect on the last financial year, we are satisfied that our resolve to turn the tide has paid good dividends.

 

The Budget for 2001/2002 presents a total shift from the previous budgets.  It is a Budget of a Department that has emerged unscathed from the difficulties of addressing major infrastructural development and the apartheid legacy.  With this Budget, we recognise the first budget aimed at addressing the key infrastructural questions that face our Province.  For the first time, special budget allocations to address the maintenance backlog are made towards our roads and key social infrastructure in the Province.

 

This year, our Budget is an honest attempt to budget according to our provincial priorities.  This Budget is a developmental budget that will focus on capital investment and improvement.  Though this is realigned, we strive to address not only the backlog, but also job creation and growth.  This Budget will assist us to begin to turn the tide against poverty and joblessness.  It will begin to restore the dignity of those who depend entirely on the state to improve their lives.

 

In this Budget, we recognise an overall increase in the Budget of the Department.  This increase does not equal the backlog that must be addressed.  Neither will it close the gap between the poor and the rich or eradicate joblessness and poverty, but it is a start.

 

Before I deal with the new Budget, allow me to give a brief synopsis of the achievements and drawbacks of the previous year’s Budget.

 

A major criticism against the Department in previous years, was that a major percentage of the Departmental Budget was spent on personnel and other overhead costs.  Our commitment to address this situation has improved the departmental allocation percentages of overhead charges versus capital budgets.

 

Since I have started in this Department in 1997, the number of personnel has decreased from 7 500 in 1997 to 6 407 in 1999, with a further reduction to 5 462 in January 2001.  This reduction is taking place amidst efforts by the Department to retain its most experienced personnel, while addressing questions of representation, gender and disability.

 

In the 2001/2002 financial year, 42,5% will be spent on personnel and 51,5% will be allocated for developmental purposes.  In order to improve the expertise and capacity of our personnel, many officials attended various in-house training sessions where they developed their skills.  This training will remain a priority.

 

As a result of the restructuring of state assets - where some redundant assets were disposed of – property was allocated to various municipalities in the Province.  The purpose of this was to further enhance the capacity of our municipalities to advance the process of democratising our Province.  An example of such a transfer is portions one and nine of the farm Randfontein 1880, known as Tshiame B, to the Transitional Local Council of Harrismith.

 

This was an important event, as the community of Tshiame will now, for the first time ever, have an opportunity to obtain title deeds for their properties.  Apartheid legislation denied them the right to own the land on which their houses, churches and businesses were built.  Similar transfers were made to Jagersfontein and Matwabeng.

 

With regard to the disposal of assets:  The process of selling houses at De Bult has, after many stumbling blocks, finally been put on track.  Of the 25 houses that have already been sold, the State Attorney has finally transferred the first house in February this year.  It is expected that the Office of the State Attorney will expedite the transfers of other houses.  This process continues with the sale of redundant state houses at Kensitown and Modulaqhowa in Maluti-a-Phofung.

 

The provision of buildings and various social functions of Government were boosted by the major maintenance projects at nine hospitals and seven clinics.  Buildings were renovated and revamped and new structures were built.  For the Department of Welfare, Tshirelletsong Centre in Bloemfontein and the Thekolohelong and Leratong Centres in Qwaqwa were given major facelifts.

 

Major maintenance work was carried out at the Barend van Rensburg Children’s Home and Boiketlong Old Age Home at Thaba Nchu.

Five new libraries were built at Mashaeng, Tikwane, Mamafubedu, Role-le-a-Thunya and Matlwangtlwang in support of improving the culture of reading and learning.  A large part of the Department’s efforts towards poverty eradication concentrated on the completion of various community-based public works projects that could not be completed before. This was due to the fact that the requirements of the Public Finance Management Act (PFMA) impeded the continuation of new projects.  These issues were addressed.

 

Together with the National Department of Public Works, Roads and Transport and the South African Breweries (SAB), the Department contributed towards the reduction of unemployment by creating jobs through the implementation of the Clean and Green Programme within the informal settlements of Chris Hani and Bloemside.    The programme is aimed at, among others, the development of a waste removal system in under-serviced communities, to enhance the physical environment by planting flora and fauna and to create awareness of the benefits of a clean environment.

 

The programme has succeeded in providing municipal services where they did not exist.  More than 10 000 households received refuse removal services.  Illegal dumping sites are being cleaned.

 

Through the realigned Community-Based Public Works Programme, aimed at providing much-needed infrastructure while also creating jobs and alleviating poverty, the Department, together with the National Department of Public Works, successfully implemented 17 projects in the nine wards of the Maluti-a-Phofung District.

 

Eight emerging contractors were employed through Public Works programme projects.  Of the 480 people employed, 48% were female, 40% were youth and 7% were disabled.  About 68 sustainable jobs have been created.  These projects have increased access to health facilities, economic activities and have greatly improved social cohesion.  Projects implemented in various communities were crèches, bridges, halls and roads.  Five projects, aimed at generating income, were implemented, and four vegetable gardens and the upgrading of Witsie’s Cave improved tourism.

 

The National Department of Public Works has increased its commitment in the Eastern Free State by availing additional funding for two programmes, namely:

·                    Land rehabilitation of areas devastated by floods in Qwaqwa - twelve projects are being implemented there;  and

·                    Rapid delivery – 20 new projects are being implemented in areas falling outside of Qwaqwa, but still within the Maluti-a-Phofung District Council.

 

About 500 jobs have been created.  Women fill 228 of these positions.  These two projects have created employment for 264 youths and twelve disabled people.

 

Planning as it relates to roads, remains the key function.  This function was scaled down, as the money allocated for roads infrastructure and maintenance continues to be cut.  In order to facilitate integration and mobility, the following access roads were designed at Itumeleng:  Ipopeng, Road 2, in Qwaqwa, and the P1/2 Thabong bypass.

 

Planning and design was made with regard to bridges and roads infrastructure damaged by floods in Qwaqwa.  The Department is busy with in-house designing and planning with regard to the access roads.  These plans concentrate on key roads that will improve linkages, give access to various services, and generally improve mobility in the Province.

 

With regard to road maintenance within the Province, there is no-one in the Free State who can honestly declare that, despite the kind of Budget we had, we did not live up to our promise to carry out road maintenance with the aim to reduce road accidents as a result of lack of maintenance.

 

Due to an inadequate budget allocation during the previous financial year, we were compelled to adopt a “robbing Peter to pay Paul” strategy.  In order to ensure a safe and accessible road network, the Directorate concentrated on the safety aspect of road maintenance.  The repair of potholes was, therefore, the highest priority, followed by other activities, as well as necessary tasks, Budget allowing.  Various roads received specific attention due to the advanced state of deterioration of their pavement layers.

 

*The contract for road signs was put in effect after one year of no activity.  At present, about 1 300 kilometres of road signs have been rehabilitated. 

Sections along the road that were subject to soil erosion as a result of floods, were again covered with gravel.

 

An amount of R38 million was allocated for the reconstruction of damaged areas and was received this year.  After visiting the affected areas on 23 February 2001, I am proud to inform this hon House that I am satisfied with the progress made with regard to the reconstruction of areas that were destroyed by the floods.

 

In an attempt to improve the safety on our roads, links were forged between the Province and the 24-hour service centre in Bloemfontein.  This centre will be in operation during the Easter holidays this year and will gather all traffic-related information.  This information will be updated on a daily basis, and record will be kept of all recent accidents.  Resources will also be directed to where it is needed, and the causes of these accidents will be thoroughly investigated.  The aim is to provide this Centre with adequate resources so that it can also function as a Provincial Crisis Communication Centre.  This Centre will inform departments that are affected by incidents, such as aeroplane accidents.  The Centre has a toll-free number which is 0800 10 11 12, as well as a fax number that is monitored 24 hours.

 

Road signs, which will indicate the number of accidents on our Province’s roads, are still being designed.  The public will be able to report incidents of corruption by traffic officers as well as traffic conditions on the roads.  I am proud to report to this hon House that since the speed limit for buses and minibus taxis was reduced from 120km/h to 100km/h, there has been a decline in the number of accidents of these kinds of transport.

 

During the period December last year and January this year, approximately 87 people died on the roads of our Province, compared to the 125 who died during the festive season last year.  This represents a decrease of 38 road deaths, which, in monetary terms, accounts for a saving of R12 million.  The source of this research is the CSIR (Council for Scientific and Industrial Research), which estimates the cost for each death as a result of road accidents at R340 000.

 

#This year, a new strategy that follows in the footsteps of the Arrive Alive campaign, will be launched.  This is a national strategy that will help us to spread the message of Arrive Alive daily.

 

The transport of school children is one of the major stumbling blocks as far as accessibility to education is concerned.  During the previous year, nearly 350 bicycles were distributed among several schools as part of the Bicycle Demonstration Project.

 

Project Kaizen was undertaken to update the full asset register and to ensure that data of the Fleet Management Service Contractor is correct.  The success of this project can be seen as a milestone for this Department.  The client’s invoicing system has been fully computerised and this greatly enhances the efficiency of income recovery.

 

The Vehicle Information Technology Project is designed to limit the misuse of fuel cards.  The Free State Government Garage is one of the first government garages in the country to implement the system.  The hardware was installed in 90% of the fleet, and the installations at fitting stations are continuing.

 

These humble achievements will not be as successful as they are without the valuable experience that we have picked up as we continue to search for the most appropriate ways of providing adequate and timeous quality services with limited resources.  This search continues as a result of our strategic plan, Free State on the Move.

 

Free State on the Move has not only exposed our weaknesses, but our strengths as well.  Was it not for the hurdles created by the Public Finance Management Act (PFMA), we would be far in terms of the implementation of Free State on the Move.

 

The Department of Public Service and Administration convened a seminar, entitled Free State Learning Network Summit, in Bloemfontein.  This was done to enable other provinces to learn from experiences obtained from Free State on the Move.  We are committed to submitting the best option in terms of public/private sector partnerships to the Executive Council for approval within 18 months.

 

In the 2001/2002 financial year, the Department received R576 103 000, which is an increase of R105,5 million compared to the previous financial year.  Although the allocated amount is far less than the absolute minimum needed to address the backlog, the Department aims to redirect the proposed Budget in a manner that would focus our strategic programmes on economic growth, development and a safer transport system.  This must be done without neglecting other social programmes.

 

At item level, the increases are as follows:

 

·                    Personnel Expenditure:  5,5%;

·                    Administrative Expenditure:  17,3%;

·                    Stores:  34,3%;

·                    Equipment:  21,3%;

·                    Land and Buildings:  11,5%;

·                    Professional Services:  79,6%;  and

·                    Miscellaneous:  7,9%.

 

The total is 24,4%.

 

This means that:

 

·                    Corporate Service receives a total budget of R24,5 million;

·                    State Assets receive R62,7 million;

·                    The Public Works Programme receives R8,4 million;

·                    Road Planning receives R7,7 million;

·                    Road Infrastructure receives R216,1 million;

·                    Traffic Management receives R77,6 million;

·                    Transport Management receives R10,2 million;  and

·                    Free State on the Move receives R7,9 million.

 

The total is, as I have said, R567,103 million.

 

If we exclude the increase of R13 million for personnel expenditure in Traffic Management, it means that the personnel expenditure of the Department increased by only 0,58%, while in real terms, it decreased with 5,5%.

 

By limiting our expenditure on overheads, it was possible to raise our Budget on capital infrastructure by nearly R105,5 million.  In response to this, the Department reprioritised its Budget to focus on capital expenditure, the maximisation of its revenue and its legal obligations.  The main focus of this Budget is to increase capital expenditure to maximise revenue.

 

Capital expenditure will increase by R101,7 million, which is 24% of the total Budget.  It was 8% last year.  Of the total capital expenditure, 21% and 68% will be invested in buildings and roads infrastructure, respectively.

 

Revenue growth will be assisted by the increase in the allocated Budget of the Traffic Directorate.  The extensive use of labour intensive methods through the Public Works Programme Initiative should see a decrease in poverty and an increase in job creation for the people of the Free State Province.

 

This Programme’s capital expenditure increases by R4,9 million, compared to the Budget of the previous year.  This Budget enables us to see that our resources concurred with our priorities of infrastructure development and our pursuit for an integrated development strategy.  However, if compared to the Budget for 1999/2000, this only leaves us with fewer resources than what was supposed to be the case. 

 

The hon MEC for Finance is smiling, which means I am right.

 

Allow me to present the Budget, programme by programme, concentrating on key strategic projects and deliverables:

 

Corporate Services

 

In its endeavour to adhere to the requirements of Public Service Regulations that require certain critical outputs as part of our management plan, the Department will continue to:

 

1.   Align its Strategic Management Plan to the Medium-Term Expenditure Framework (MTEF);

2.   Align its organisational structure to the Strategic Management Plan;

3.              Implement service delivery improvement programmes;  and

4.              Implement a comprehensive human resources plan.

 

The Directorate:  State Assets

 

Properties earmarked for disposal during the financial year include, among others, Modulaqhowa and Kensitown in Maluti-a-Phofung.  This process will assist in containing costs associated with management and the maintenance of superfluous properties.  In an attempt to enhance the economic development of newly demarcated regions and to contribute towards rural development, my Department will continue to transfer under-utilised properties to various municipalities.

 

Land at Phuthaditjhaba, Tshiame and Botshabelo will be transferred to the Free State Development Corporation (FDC) in order to enable the parastatal to develop commercial facilities to provide beehive facilities for SMME’s (Small, Medium and Micro Enterprises) and other businesses.

 

Works Infrastructure

 

This Directorate will play an indispensable role in the economy of the Province.  It will also increase and extend the provision of infrastructure in the country, which is fundamental to the ongoing development of our Province.  In support of improving our health, Public Works will undertake major capital maintenance projects at the following provincial hospitals:

 

1.   Elizabeth Ross Hospital in Qwaqwa;

2.   Harrismith Hospital;

3.              Heilbron Hospital;

4.              Moroka Hospital Phase II at Thaba Nchu, as well as the MDR (Multi-Drug Resistance) Unit of that hospital;

5.              Pelonomi Hospital, Block N in Mangaung;  and

6.              Upgrading at the National Hospital in the Greater Mangaung area.

 

Eight new schools or new classrooms will be built at existing schools this year.  These are:

 

·                    Tumisang Primary School at Senekal;

·                    Ipetleng Combined School at Petrusburg;

·                    Makwane Primary School at Thabong;

·                    Re-feng-thabo at Tweeling;

 

Are you happy, hon Chief Whip?

 

An HON MEMBER:  Yes.

 

Mr S. M. A. MALEBO (MEC):  Kgolagano Secondary School at Viljoenskroon;

·                    Kgotso-Uxolo at Reitz;

·                    Nkarabeng at Kestell;

·                    Katiso at Dewetsdorp;  and

·                    Dieketseng at Virginia.

 

Two libraries will be built;  one at Fouriesburg and the other at our Provincial Headquarters at Lebohang.  We will be guided by black economic empowerment, job creation policies and the principles of value for money in procuring services from the private sector.

 

Community-based Public Works Programme (CPWP)

 

This Programme is one of Government’s key strategic responses to rural poverty and underdevelopment.  It is a programme that is driven by the community’s needs and is aimed at targeting poor communities through the creation of community assets and job opportunities by applying labour intensive construction methods.

 

In her Opening Address in this House, our hon Premier indicated:

 

Through our Community-based Public Works Programme, we will focus on identified pockets of poverty within the rural areas and target female-headed households with dependants.

 

The Department takes part in poverty eradication and infrastructure investment by:

 

1.   Targeting identified poverty pockets within rural areas;

2.   Targeting rural women, female-headed households with dependants, in particular;

3.              Constructing useful infrastructure to provide access to trade opportunities;  and

4.              Identifying projects for execution during the coming financial year.

 

It is against this background that 80% of the projects to be undertaken are in poverty-stricken and economically depressed areas.  Our aim is to alleviate the hardships of poverty.  To this end, projects envisaged for the coming financial year are:

 

·                    A community hall at Phillipolis;

·                    A crèche at Rouxville;

·                    A crèche at Wepener;

·                    A community hall at Bethulie;

·                    The renovation of a hall at Theunissen;

·                    A storm water drainage system at Kroonstad;

·                    A community centre at Luckhoff;

·                    A community hall at Fauresmith;

·                    A bridge at Thaba Nchu;  and

·                    A community hall in the outlying areas of Thaba Nchu.

 

The Directorate:  Road Maintenance and Construction

 

*It is important to realise that if we do not protect our investments in roads and infrastructure by re-sealing our tarred roads and preventing water from eventually penetrating lower levels, the estimated cost of retaining these roads, will be eight times higher.  Therefore, R10 million is made available for the reparation and re-sealing of a number of our tarred roads.

 

We are all aware of the fact that agriculture is a vital part of the Free State economy.  According to the Provincial Commission of Enquiry into the restructuring of agriculture in the Free State, at least 32% of the soil surface of the Free State, and at least 4 199 kilometres, are cultivatable.  Proportionally, this is the largest of all South Africa’s provinces.  The Free State’s contribution to the Gross Domestic Product (GDP) exceeds that of other provinces. 

 

It is against this background that R28 million – although it is not sufficient - will be spent on the regravelling and grading of dirt roads.  This should contribute immensely to the reparation of main roads that service these industries and will thereby improve access to markets for our agricultural products, hon MEC, Mr Makgoe.

 

Traffic Management

 

#Apart from infrastructure maintenance, our priority for the current year relates to safety on roads.  That is the most urgent aspect in the eyes of millions of Free Staters.  We cannot and will not allow the current system of anarchy and the carnage on our roads to continue.  A drastic intervention needs to be made.

 

The Arrive Alive Campaign, which is basically a communication campaign with enhanced law enforcement and a programme designed to change the attitudes and behaviour of road users, has been successful with its limited framework of objectives.  However, it is not a substitute for a comprehensive road safety programme.  This matter was discussed by Transport MEC’s at the Minister’s Committee for Transport, known as MINCOM, under the chairmanship of the National Minister of Transport.  We have agreed to proceed as speedily as possible to present a comprehensive road safety campaign to the country.

 

Given the fact that road safety is a 24-hours-a-day and seven-days-a-week activity, our law enforcement officers cannot afford to become complacent.  To this end, this Province will have an ongoing law enforcement programme that focuses on speed, overloading control, drinking and driving, safety belt compliance, and moving violations to induce compliance with Road Traffic Laws.

 

It is against this background that I am happy to announce that vacant key traffic posts will be filled during the coming financial year, as opposed to the Arrive Alive Campaign, where the emphasis was on holidays.  Intensive law enforcement will be maintained throughout the year.

 

In order to ensure responsible drivers in the future, the Traffic College will contact schools in the Province with regard to learner and driver’s licences.  They will focus on learners in Grades 11 and 12.

 

From October 1997 until April 2001, the Arrive Alive campaign was partly funded by the Road Accident Fund (RAF).  The latter has since indicated its intention not to proceed with the funding of the Arrive Alive activities.  Arrive Alive has secured the approval of the Executive Council to approach the private sector for funding of both publicity and promotional materials.

 

During the launch of the current vehicle registration plates, I indicated that a holistic study pertaining to the licence plate programme for the Province will be introduced as a second phase.  I am pleased to inform this House that the Executive Council has endorsed the introduction of the Vehicle Registration Plate Programme for the Province.  This programme will be introduced in this financial year.

 

Road Planning

 

As we are committed to the Rural Development Strategy, the Department will continue to play a pivotal role in urban renewal in the Province by addressing the imbalances in infrastructure, transportation and basic services in our areas.  The plans defining the appropriate road network for the Province will ensure adequate accessibility to existing urban areas or potential development areas, whilst protecting the movement function of our network.  For example, access improvements in the Sasolburg area are planned to facilitate densification and infilling, which will benefit the region as a whole in the long run.

 

A number of possible corridor studies and developments are also contemplated to facilitate development within the Sasolburg area.

 

Transport Management

 

Several projects will be undertaken to ensure adequate infrastructure that is aimed at economic development.  The transport-planning role of integrated development plans must be enhanced.  So, the total departure from fragmented planning and the introduction of an integrated planning process, will result in the promotion of public transport and higher density, as well as the integration of the different residential and business areas.

 

This year, we will intensify our efforts regarding the Provincial Land Transport Plan.  This task has become more urgent in the light of developmental objectives by various municipalities.

 

The Free State taxi restructuring process has put our taxi operators ahead of their colleagues in the country.  While other provinces are still going through the first democratisation process of conducting elections to determine their leadership and to legitimise the industry, the Free State Taxi Council has already gone through that process twice.  The democratisation process is only manifested at provincial level, but all regions have taken part in the process.  This process has given legitimate taxi operators new values, as enshrined in the standard Constitution and the Code of Conduct.  The restructuring of this industry will create a major empowerment process.  It is for this reason that we hope that the taxi re-capitalisation process will be finalised soon.

 

This year, we are going to intensify our efforts to root out illegal taxi operators and to shut down illegal ranks.  We are finalising our strategy regarding this aspect with the police and other law enforcement stakeholders.  Special measures will be taken to cope with inter-provincial operators, especially those from the Lesotho border.  The training of both owners and drivers will be intensified this year.