M Mabuyakhulu: KwaZulu-Natal Local Government and Traditional Affairs
Prov Budget Vote 2007/08

17 April 2007

"The rise of a shining star"

Chairperson
The Honourable Speaker
The Honourable Premier Mr Sibusiso Ndebele
Deputy Speaker
Members of the Provincial Executive Council
Honourable members of the Provincial Legislature
Esteemed Amakhosi
Mayors and councillors of municipalities
Director-General
Heads of the various departments
Excellencies
Members of the diplomatic corporations
Distinguished guests
Ladies and gentlemen
Senior officials of government departments
Members of the media
Comrades and citizens of KwaZulu-Natal

I rise to table the Budget for Vote 11; the Department of Local Government
and Traditional Affairs, in my capacity as the Executing Authority of the
department.

The spirit of a people, its cultural level; its social structure; the deeds
its policy may prepare all this and more is written in its fiscal history,
stripped of all phrases. The public finances are one of the best starting
points for an investigation of society, especially, though not exclusively, of
its political life. The fiscal history of our department very clearly reflects
the carefully planned building blocks which have been put in place to improve
local governance.

Honourable Chairperson and honourable members, Mr Ralph Waldo Emerson noted
that in time of revolution, "the energies of all men are searched by fear and
by hope." We continue to live in such an age of revolution and whilst our fears
are no longer an aspect to dwell on, our hopes are stimulated by the success of
our democracy and the strides we have made over the past 13 years. This
revolution must continue to impact on the lives of our citizens, providing a
better life for all.

Honourable Chairperson, our system of local government is at a period once
referred by one philosopher as "a moment unrewarded by the universe, by nature,
the seasons, or stars. This is a mighty moment of a gigantic death and an
enormous rise of a shining star."

This period marks the second lap of our new system of local government which
has been heralded by other countries as the best in the world. This House is
witnessing the "rise of a shining star." With the support and direction that
our department is giving, we are seeing our municipalities, traditional
leadership structures, our province, and most importantly the people of our
province rising as shining stars ready to contribute to our provincial,
national and international efforts to create a world characterised by peace,
justice, prosperity and equality.

The darkness of night has come to an end. In everyday of our work, we now
look expectantly to a new day of new joys and new possibilities. A new star is
shining signalling renewed efforts, fresh hope and the prospect of a better
life for all of our people.

Honourable Chairperson, the March 2006 local government elections firmly
entrenched the democratic principles so essential in protecting our freedom and
nurturing our hard-won democracy. The new cadre of councillors ushered in with
the March 2006 elections has the primary responsibility to play a crucial role
in accelerating service delivery to their respective communities.

Councillors are increasingly called upon to lend positive impetus to the
process of public participation, to be the political custodians of good
governance and accountability and to vigorously advocate for the needs of their
constituencies.

Honourable Chairperson, this budget vote comes before the House a little
over a year since steps were taken by our government to ensure that none of our
municipalities remain stuck in a position where poor performance and service
delivery blockages are the order of the day. To this end, we launched a
hands-on support programme known as Project Consolidate. The runaway success of
this intervention has become a beacon of hope for our system of local
governance and a visible sign of what could be achieved through co-operative
governance. We stand here today filled with pride that a number of our
municipalities that participated under this programme can now point to the
positive ways in which the lives of their communities were touched by the
intervention of Project Consolidate.

Particularly as a result of this programme:

* The people of Indaka Municipality have put behind them the use of the
abominable bucket toilet system which for a long time undermined their dignity.
This system has since been replaced with decent dignified form of sanitation in
line with changing the lives of the people.

* In Jozini; communities have access to decent potable water and an improved
performance management system that would enhance accountability and subscribe
to high standards of performance.

* In Big Five; there are sewerage ponds for improved sanitation. This will
improve the environment and reduce water contamination.

* In Ubuhlebezwe in Ixopo corridor a fresh produce market has been
established. This is in line with the Local Economic Development (LED)
strategies adopted by the district to grow the Sisonke economy and to support
agriculture.

* Graders for road maintenance have been provided in Richmond. Gone are the
days when people could not even access basic services such as schools, clinics
or economic activities due to poor roads.

* In Ulundi: An internal audit has been conducted and this seeks to improve
the financial activities of the municipality.

* In Ntambanana: Ward committees have been established. This will enhance
public participation.

These and many other examples that we have not listed here, serve to
highlight the important point that we have been able to achieve accelerated
delivery in capacity challenged municipalities. It is these achievements,
Honourable Chairperson, that give us the confidence that the objectives of
ensuring universal access of basic services to all communities during this
second era of local government will be realised.

These achievements, Honourable Chairperson, also show that we are indeed on
course regarding meeting the Millennium Development Goals (MDGs). Honourable
Chairperson, as a country, we have set ourselves important targets. We have
said that by the end of 2007, no household will be using the bucket sanitation
system; that by 2010, all communities will have access to clean potable water;
that by 2010 all communities will have access to decent sanitation and that by
2012, all our people will have access to electricity. We are determined to make
visible progress in the attainment of these targets. However, because we are
realistic, some of them may not be reached in the stipulated timeframe for
various reasons, inadequate finances being one of them.

Honourable Chairperson, our country is now experiencing an important phase
of economic growth that constitutes a solid foundation for broad-based and
sustainable development and that also testifies to the correctness of the
economic policies that our government has adopted, In particular, it provides
our government with substantial means to go beyond the narrow objectives of
economic growth by increasing its redistributive efforts to enhance the social
and economic well-being of our people who live in poverty and are experiencing
a lack of access to basic services. It stands to reason, therefore, that to
address the structural causes of inequality and underdevelopment, the
developmental framework will have to continue its shift from narrow economic
growth objectives to the pursuit of broad-based and sustainable growth.

The tasks given to our department of local government demanding improved
performance and a revolutionary way of doing things. This means that we are not
only expected to find the means for addressing traditional local government
challenges of delivering basic services to the people, but we are seized with
the responsibility to find strategies and mechanisms that are potent enough to
remove bottlenecks which stand in the way of sustainable development.

Our municipalities are well-placed to meet this challenge. A number of key
policy initiatives have been developed at both national and provincial level
with a view to bringing about an effective system of developmental local
government and enhancing service delivery. To achieve the objective of rapid
service delivery, municipal councillors, officials and communities will have to
see every stumbling block as an opportunity and to believe that the people, who
attempt the difficult, can often achieve the impossible. Municipalities will be
supported in realising their constitutional imperatives through integrated and
focused provincial processes of support, oversight, capacity building and
strengthening of the local sphere of government.

We say, with pride that in the last two and half years since we have been
entrusted by the Honourable Premier with the responsibility to lead the
Department of Local Government and Traditional Affairs, we have sown the seeds
of an efficient and sustainable Local Government and put in place the relevant
building blocks. We must now reap from these past efforts in accelerating
service delivery to meet the expectations of our people.

Forming the bedrock of our efforts to create developmental and sustainable
local government is our compass called the Five Year Local Government Strategic
Agenda. This programme aims to give direction to our efforts in this, the
second phase of local government. The key priority areas of this programme
are:

Strategic priority one:

Mainstreaming hands-on support to local government, to improve municipal
governance, performance and accountability. This entails time bound specific,
focused interventions.

Strategic priority two:

Addressing the structure and governance arrangements of the state in order
to better, strengthen support and monitor local government. Ensuring capability
in the state machinery to deliver sustainable development that promotes
economic growth and fights poverty.

Strategic priority three:

Refining and strengthening the policy, regulatory and fiscal environment for
local government and giving greater attention to the enforcement measures. This
seeks to provide consistency and more legislative clarity.

Obviously the successful implementation of this strategy will be measured by
how speedily and efficiently we deliver services and how well our interventions
act as a catalyst for local economic growth and development. We believe that
this foundation will ensure that the harvest we spoke about last year is
consolidated and sustained.

Having laid this foundation, the primary focus now is to consolidate the
gains we have made and accelerate the promotion of integrated service delivery.
In this process, we will, however, have to address and overcome a number of
challenges, amongst others:

* improve good governance and accountability
* limited skills and capacity, high staff turnover in the various technical
line function areas as well as dismissal, resignation and suspension of key
officials
* lack of core municipal systems and poor accountability mechanisms
* limited rates base and high outstanding debt, poor credit control and debt
management
* inadequate resources and funds to address basic services backlogs and to
maintain existing infrastructure, high rate of grant dependence amongst
municipalities
* increased momentum of enhancing partnership between the public, State Owned
Enterprises (SOEs), private sector and the civil society on development
programmes
* dispersed settlement patterns especially in the rural areas, increasing
infrastructure roll out costs
* co-ordination of services provided at municipal level
* the subdivision of former regional authorities to establish individual
traditional councils with distinct area of jurisdiction
* a structured capacity building programme for the newly established structures
for the institution of traditional leadership to support the process of
transformation.

These, Honourable Chairperson, are the key performance areas that will
inform our hands on support to the sphere of local government. I believe that
our department's budget provides yet another milestone in the fiscal history of
local governance, has been well considered and is balanced to achieve the
objective for the year ahead.

Overview for 2006/07

Local governance

* The administrative capacity and financial viability of most municipalities
has improved during the last financial year although a lack of effective
procedures and systems, limited municipal finance skills and poor governance
and oversight is still prevalent at certain councils.

* It is pleasing to report in respect of municipal budgets, that 60
municipalities adopted their budgets for the 2006/07 municipal financial year
within the stipulated time frame. Only Impendle municipality did not meet the
statutory deadline due to specific capacity challenges and with the support of
the provincial government, their budget was passed on 13 July 2006.

* Seven Municipal Assistance Programmes (MAPs) were launched during the
2006/07 financial year and the shared services programme were extended to all
districts in the province to ensure more effective, efficient and economical
delivery of services and fulfilment of management obligations.

* A pilot programme to address debt management, credit control and billing
systems with the objective to enhance municipal revenue and service delivery,
was implemented and a best practice guide will be made available to all
municipalities during the 2007/08 financial year.

* A refined Electronic Monitoring and Management Assistance System were
launched in August 2006. This tool enables municipalities to improve their own
internal management information and reporting systems.

* The Cemeteries and Crematoria Act, which aligned Provincial Legislation to
the provisions of the Extension of Security of Tenure Act has been enacted by
this House. A Pound Act replaced the Pound Ordinance has also been enacted by
this august Legislature and the department is far advanced with the drafting of
generic by-laws to comply with the provisions of the new Act.

* The department has completed phase one of a Position Paper on Local
Government in KwaZulu-Natal which provides an overview of the National and
Provincial Legislative Framework and identifies challenges within the current
legislative framework.

* On 1 August 2006, the National Minister of Provincial and Local
Government, the Honourable Minister Sydney Mufamadi, published section 57
regulations which provide, inter alia, for appointment qualifications,
employment and performance contracts, suspensions and the termination of
employment contracts for municipal managers and senior managers to provide more
structured framework and clarity in this regard.

* A joint venture between the department and the provincial Department of
Education, funded by the Flemish Government, to implement an e-Learning
Integrated Training Project in the Umkhanyakude District area has been
completed. In excess of 1 500 ward committees and school governing body
members, together with members of the community have been trained, using
interactive workshops and computer based training and video material, in
democracy, in governance, basic financial management, basic administration, HIV
and AIDS management and basic computer literacy skills.

* We are pleased to report to this august House that we have established
ward committees in most qualifying municipalities which are of ward committee
type. To date, 560 of the 771 wards have committees which are up and running
and the department has developed a training manual to empower ward committee
members.

* It gives me pleasure to report to this House that we have successfully
incorporated Umzimkhulu into KwaZulu-Natal during the past financial year.
There is, however, still much to be done. The inter and intra departmental
programmes are being developed and implemented to improve infrastructure and
service delivery in Umzimkhulu. A total amount of R227 million has been made
available over the 2006-2009 Medium Term Expenditure Framework (MTEF) period
for special support programmes in Umzimkhulu.

Infrastructure development

* In the 2006/07 financial year we have seen an increase in the number of
households receiving basic services and the number of municipalities providing
free basic services within the province. However, we strongly believe that
there is still a lot to be accomplished for the benefit of the communities.

* The Municipal Infrastructure Grant (MIG) still remains the financial
backbone for municipalities to develop and address backlog challenges in
infrastructure delivery. The department has again ensured that the province
retains its best performance status compared to other provinces when it comes
to the utilisation of this grant.

* One of the major anchor programmes to provide technical support to the
identified low capacity municipalities is the Siyenza Manje programme, which is
implemented in targeted municipalities together with Development Bank of
Southern Africa (DBSA). The interventions implemented through this programme
will see a much stronger drive in infrastructure delivery.

* A survey on the provision of free basic services was undertaken during the
2006/07 financial year to ascertain the challenges experienced and the nature
of support needed by municipalities. Guidelines on the delivery of free basic
services were compiled to assist municipalities in their attempts to roll out
the services.

* The process of acquiring and installation of water purification plants is
far advanced and will ensure potable water for some of our rural communities.
This project is expected to be completed by the end of June.

* The department expects to achieve its objective of eradicating bucket
sanitation system in the last two remaining areas of Indaka and Umzimkhulu by
December 2007.

* The department is playing a crucial role in co-ordinating the soccer
stadia development in preparation for the World Cup 2010 to open up
opportunities to benefit communities outside major cities.

* A successful Provincial Disaster Management summit was held in May 2006.
The summit provided a basis for effective disaster management within the
province especially in view of the 2010 Federation Internationale Football
Association (FIFA) World Cup. We are increasingly building our capacities in
all municipalities as demonstrated in the handling of the mini tsunami a few
weeks ago.

Development planning

* The department prepared a detailed profile of the province which was
adopted by the Executive Council in August 2006. This profile, which highlights
the various strengths and weaknesses of the province, has inspired the
formulation of a number of provincial strategic policies e.g. the Provincial
Spatial Economic Development Strategy PSEDS.

* All 61 municipalities in the province submitted their 2006/07 Integrated
Development Plans (IDPs), although the Umuziwabantu's IDP was submitted more
than four months late. The 2006/07 IDPs, adopted by the newly elected Councils
in June 2006 were thoroughly assessed by an inter-departmental team
representing both national and provincial departments and more than 60% of the
IDPs in this province were found to be credible.
* The department, leading a team of representatives from other key provincial
departments, supported and in some instances even facilitated district wide
Growth and Development summits in the province. These summits focused
specifically on strengthening partnerships with private sector in growing local
economies and promoting alignment between Municipal IDPs, the Provincial
Spatial Economic Development Strategy (PSEDS) and the national Accelerated and
Shared Growth Initiative for South Africa (AsgiSA) and National Spatial
Development Perspectives (NSDP). We are pleased to announce that all District
municipalities have undergone this process and we are certain that the next
generation of IDPs will improve and encompass within them concrete programmes
to unlock the economic growth of our municipalities.

* The metro and all local municipalities in the province were supported with
the implementation of a new "wall to wall" Land Use Management System. This
process included the participation of institutions of Traditional Leadership,
as well as environmental management authorities. The results of this process
are already proving to be successful in reducing timelines for the
consideration of planning and development applications, therefore making the
province more competitive in attracting prospective developers and
investors.

* During the past financial year, the department and its respective
statutory bodies processed more than 1 200 planning development applications,
such as township establishment, development approvals, the subdivision of land,
rezoning, as well as the removal of restrictive conditions of title. During
2006/07, the department and the Development Tribunal facilitated judgments and
granted development rights on 42 development applications in terms of the
Development Facilitation Act, totalling an estimated potential development
value of more than R15 billion.

* The department has also made good progress with the rationalisation of
provincial planning and development legislation, which is being done in two
phases. In the first phase, provincial planning and development legislation
will be simplified by the KwaZulu-Natal Rationalisation of Planning and
Development Laws Act and the Town Planning Ordinance Amendment Act. In the
second phase, the existing planning and development system is to be replaced by
a new planning and development system through the KwaZulu-Natal Planning and
Development Act. All the three Bills were approved in principle by the
Provincial Executive Council and were advertised for public comment and are to
be submitted to this Legislature early in the 2007/08 financial year.

* Good progress has also been made with regard to the implementation of
Project Consolidate over the last financial year. Projects to the value of R68
million are currently in implementation and are starting to make a significant
impact within the recipient municipalities.

* In order to promote and facilitate development in line with the Provincial
Spatial Economic Development Strategy, the department started the
implementation of a Corridor Development Programme in the province. The first
six priority corridors have been identified and projects to the value of R10
million have already been initiated. These projects are largely aimed at
promoting growth and development in areas with high development potential in
both the first and second economies.

Traditional Institutional Management

* The 2006/07 financial year will go down in the annals of history as the
watershed period for the institution of Traditional Leadership. This is the
period in which the dignity of this sacrosanct institution, itself a victim of
a battery of legislations aimed at denigrating this institution, was restored
to its rightful place. During the period under review, we witnessed the
acceleration of the programme called (Ubambiswano) which saw the transformation
of Traditional Leadership institutions in accordance with the Constitution and
KwaZulu-Natal Traditional Leadership and Governance Act, Act No 5 of 2005, read
with the deeming provisions of the Traditional Leadership and Governance
Framework Act, Act No 41 of 2003. A total number of 235 traditional authorities
were transformed into democratic traditional councils. All regional authorities
were disestablished and we witnessed the establishment of eleven brand new
Local Houses of Traditional Leaders and the successful reconfiguration of the
Provincial House of Traditional Leaders to ensure democratic
representation.

Today we pride ourselves for being the first province that has been given
proper recognition in accordance with the law, an institution that exist in
line with the democratic ethos of our country. To this end, we would like to
thank His Majesty the King and all our esteemed traditional leaders for
ensuring that this institution is restored to its rightful place.

* Successful conferences of Ondlunkulu namaKhosikazi and Izinduna namagoso
were held in April 2006 and February 2007, respectively.

* The capacity building for land use management within traditional areas was
received well as it was tailor made, concentrating initially on explaining and
showing the Traditional Councils (TCs) their areas of jurisdictions, map
reading, allocation of sites in appropriate zones and emphasising the
importance of the maintenance of the natural environment.

* The functional partnership with the Department of Land Affairs continued
to allow this Department to grant land rights in excess of 1 500 to open up
opportunities for various investment initiatives directed in the rural
areas.

Urban and Rural Development

* The department successfully secured funding from the National Treasury's
Neighbourhood Development Partnership Grant {NDPG) for Belgrade and Highflats
Multi Purpose Community Centres (MPCCs) Thusong centres, A total of R12 million
for construction and R1,2 million for operational costs. The department will be
strengthening its partnership with the NDPG fund in an effort to secure further
funding for future developmental initiatives.

* The Batho Pele Learning Network and Presidential Review Commission
highlighted the need for improving government responsibility in the provision
of efficient and timely service delivery. The Multi Purpose Community Centres
(MPCCs), Traditional Administrative centres and e-Government were identified as
one of the key structures within which government can provide accessible
seamless delivery of a constellation of services arranged around a common set
of service delivery objectives.

The department completed the exercise of developing economic themes per each
Presidential node including uMzimkhulu and Ilembe municipalities which produced
an investment atlas that provides data on investment opportunities. This
initiative will now be used by various development institutions and potential
investors to exploit the competitive and comparative advantages of each
node.

* The department with all the nodes have developed a communication and
marketing strategy that accelerates resource mobilisation, assist
municipalities to communicate progress and share insight into the impact of the
programme on the lives of communities. Communication plans for each node are to
inform nodal communication initiatives in partnership with Government
Communications and Information Systems (GCIS) to establish District
Communication Forum to co-ordinate and align integrated messages and share
developmental experiences.

* The 410 recruited and deployed Community Development Workers (CDWs) were
formally integrated into the public service in June 2006. This programme has
revealed that a significant percentage of people in poor urban and rural
communities are not even aware of the government services and benefits that
they are entitled to as citizens. These CDWs have acted as facilitators that
ensured government is accessible to the people and that government is properly
informed about the needs on the ground.

* The learning experiences from the Presidential declared Inanda Ntuzuma and
KwaMashu (INK) node using Area Based Management (ABM) approach has been
fundamental in assisting the department to fundamentally addresses
socio-economic inequities and the need of the poor newly prioritised nodal
areas.

* The establishment of an Urban Renewal Programme (URP) and the Integrated
Sustainable Rural Development Programme (ISRDP) multi-stakeholders forum which
was launched in October 2006 started to close the gap between rural and urban
poverty definitions and force practitioners to look at poverty as a common
socio-economic challenge not in terms of geographic locations. It strengthens
partnership and allowed government to plan together with private organisations
and financial institutions in terms of development initiatives within the
identified rural and urban nodes.

Priorities for 2007/08

Programme one: Administration R147,887 million

This programme focuses on providing an effective support service to the line
function and the Minister.

With the finalisation of the new structure, one of the main focuses will be
on implementing effective recruitment and acquisition processes. With regard to
existing staff, a skills audit and skills match will be undertaken, to ensure
that the department has the capability to deliver on its mandates.

This programme is, further, committed to reinforcing and developing human
capital investment programmes, and ensuring that the new Personnel Management
and Development System is effectively implemented, and establishing
interventions towards a performance culture within the department.

During the forthcoming financial year the department will implement Phase
two of the Assets Management Improvement Plan (AMIP) and continue to build
effective asset management with the use of the Hardcat system.

The Supply Chain Management System will continue to operate within the
department and will be fully underpinned by the new departmental Supply Chain
Management unit. The system operated by that unit will continue to ensure that
goods and services are provided to the departmental business units in a cost
effective efficient manner.

Programme two: Local Government R233,989 million

* The department will continue with a multi faceted programme to assist
municipalities with the implementation of the Municipal Property Rates Act. The
first nine local municipalities will be implementing the Act in July 2007, 38
local municipalities, the metro and four district municipalities will implement
in July 2008 and the remaining 3 local municipalities will implement in July
2009.

* Based on best practices identified in Umkhanyakude District, the
department intends to fund and implement e-Learning projects in Msinga and
Nkandla municipalities.

* The department has commenced a formal ward committee induction training
programme aimed at capacitating the 8 481 ward committee members and ward
councillors in the province. During 2007/08 the department will assess the
functionality of trained ward committees and will assist the Department of
Provincial and Local (DPLG) with the roll out of the accredited training
programme for ward committees.

* In order to enhance community participation at a municipal level, the
Department with the co-operation of South African Local Government Association
(SALGA) KwaZulu-Natal (KZN) and municipal representation has developed a
community participation framework document which is currently being piloted at
the Ingwe Local Municipality. Based on best practices identified during the
pilot, the framework will be refined and rolled out to all municipalities in
the next financial year.

* Financial management will generally be improved through support programmes
aimed at effective implementation of the Municipal Finance Management Act.
Clean and accountable local government which maintains and restores the
confidence of the communities in the system of local government remains a
priority and the research and development of measures to proactively reduce
fraud, corruption and maladministration will continue to be one of our
priorities.

* Our department will design an all embracing reporting framework for
regular submission by municipal officials to their respective councils. This
reporting mechanism will ensure that elected councillors are fully aware of
progress being made by their administrations in respect of service delivery,
public communication, financial and planning matters and will serve to enhance
the necessary oversight role.

* We will be embarking on aggressive good governance and capacity building
support for councillors in partnership with SALGA KZN. The capacity building
programmes will focus on addressing service delivery gaps.

* The capacity and systems development processes will be focusing on
improving systems and processes supporting service delivery.

* Our department will continue with the implementation of the shared
services concept which will enhance service delivery and improve compliance
with local government mandates.

* There will be continued support under the Management Assistance Programme
for those municipalities experiencing institutional and financial problems.

* In line with millennium goals and government targets of ensuring provision
of basic services to all households by 2014; our department is determined to
facilitate the provision of basic services and free basic services to
households in the province; through inter alia monitoring the effectiveness of
the mobile water purification plants project which support municipal drought
relief intervention. However, we do feel that partnerships with other
stakeholders are of critical importance in the achievement of these goals. It
is for this reason that we will be embarking on a vigorous campaign to get all
hands on deck, particularly the business sector and development experts, in
order to ensure that these Millennium Development Goals are met.

* Assist targeted municipalities in positioning themselves towards FIFA 2010
World Cup event. The potential economic spin-offs that come with hosting an
event of this magnitude will be practically felt at local government level. As
a developmental state, it is critical that we use this rare opportunity to
further the aims of our developmental agenda. Therefore, if we do not position
our municipalities in such a manner that they are able to take maximum
advantage of this opportunity, then the expected growth and development
spin-offs will only remain a mirage for most of our people. We cannot afford to
fail in this regard.

* Provide technical hands-on support to municipalities especially in regard
to infrastructure planning; infrastructure programmes; disaster management; and
operations and maintenance of assets.

* Support integrated municipal infrastructure planning and manage municipal
infrastructure programmes.

Programme three: Development planning

* One of the primary objectives of this department in the coming financial
year will be to facilitate the promulgation and implementation of the
KwaZulu-Natal Rationalisation of Planning and Development Laws Act, the Town
Planning Ordinance Amendment Act, as well as prepare for the implementation of
the KwaZulu-Natal Planning and Development Act in the 2008/09 financial year.
This process of rationalisation of planning and development legislation is to
usher in a new dispensation in this province to further facilitate the speedy
resolution of statutory planning and development applications.

* Although the credibility of municipal IDPs have greatly improved,
substantial work is still to be done in ensuring full alignment of district and
local IDPs, the clear identification of key economic interventions to promote
growth and development, as well as the spatial referencing and prioritisation
of all IDP projects in order to maximise impact in a specific geographical
area. We believe that one of the reasons for the improvement in the quality and
the compliance of our IDPs is the active participation of other provincial
government, including Health, Agriculture, Transport, Housing and Social
Welfare. We urge all departments to second senior personnel to participate in
these IDP's formulation sessions in order to enrich this process.

* Acknowledging capacity constraints in particularly the smaller
municipalities to manage their own development planning functions, the
department has initiated a process to establish district Wide Development
Planning Shared services. It is anticipated that the first five of these shared
services will be implemented in the coming financial year. The establishment of
such shared services will facilitate the alignment of district and local
municipal planning and development processes, ensure improved technical support
to municipal councils, as well as reduce the cost of such services through
greater economies of scale. The first Pilot Development Planning Shared Service
has been initiated in the Ugu District.

* The 2007/08 financial year will also see Project Consolidate moving into
its third and possibly final year. This project was initially intended to be a
two year programme. In this province, we managed to secure a budget allocation
of up to the end of the 2007/08 financial year. The focus in the coming year
will be to consolidate all the interventions undertaken thus far, and to ensure
that there is a sustainability strategy in place. The lessons learned from this
programme are being documented, and they will be used to structure the
departments "hands on capacity support programme" as part of the implementation
of the Five Year Strategic Local Government Agenda.

* The implementation of the Provincial Corridor Development Programme will
receive special attention during 2007/08. Not only will we build on the
interventions initiated in 2006/07, but we will also further promote the
co-ordination and integration of departmental initiatives in these priority
intervention areas of the province. It is envisaged that this programme will be
one of the lead programmes of the new Provincial Growth and Development
Strategy, as well as in the implementation of the Provincial Spatial Economic
Development Strategy.

Programme four: Traditional Institutional Management R105,154 million

* In order to support the new structures of traditional leadership that have
been created by our law, we have since lined up important programmes aimed at
supporting and capacitating these structures of our traditional leadership so
that they can perform their functions effectively. We will, for the first time
during this financial year, have dedicated and fully-fledged offices that
service the new Local Houses of traditional leaders as opposed to being
serviced by magisterial offices as was the case in the past.

* We will also work very hard in identifying the possible office space for
the new Local Houses and, where possible, lease the office space if
necessary.

* As for the sitting of the Provincial House, we reiterate the position
taken by our Cabinet that the old legislature building is made available for
the use by the Provincial House of Traditional Leaders. The department stands
ready to assist with the necessary maintenance and refurbishment so that the
facility can suit the needs of our esteemed traditional leaders.

* We will, during this year, conclude protocol agreements frameworks aimed
at strengthening synergistic partnerships between municipalities and the
institution of traditional leadership. These protocol agreements will provide
guidelines for interaction between municipalities and local houses of
traditional leaders. This, Honourable Chairperson, is to ensure that the
interactions between municipalities and the local houses are properly regulated
in order to minimise unnecessary friction.

* A formal partnership with the Local Government Sector Education and
Training Authority (SETA) and Tertiary institutions will be finalised to ensure
that training modules for traditional leaders, members of the traditional
councils as well as their administrative personnel are designed and
implemented.

* Honourable Chairperson, our mandate covers traditional affairs in its
entirety. We, therefore, have an obligation to ensure that we service this
portfolio equitably understanding that while Amakhosi are at the apex of this
institution, there are other structures that are critical for the sustenance of
the institution of traditional leadership. Ondlunkulu namaKhosikazi, izinduna
zezinsizwa, amaqhikiza and amagoso are some of these critical structures that
have been overlooked for a long time. It is out of this realisation that in the
financial year 2006/07, we held two ground breaking conferences, conference on
Ondlunkulu namaKhosikazi and conference of Izinduna zezinsizwa, amaqhikiza and
amagoso. During the 2007/08 financial year, we will intensify our efforts to
ensure that these structures are drawn to the epicentre of the activities of
traditional leadership and hold an international conference on traditional
leadership global perspectives.

* We have also resolved that we will also use the coming financial year to
elevate and raise the profile of AbaNtwanabaseNdlunkulu, themselves long
neglected structures of the institution of traditional leadership, in order to
enable them to play their rightful role particularly in overseeing the
performance and the carrying out of traditional rites and ceremonies. AbaNtwana
baseNdlunkulu, by right, should be ambassadors for traditional customs and
should, among other things, guide us on how to carry ourselves in the presence
of His Majesty, the King.

* The inclusion of uMzimkhulu requires the department to undertake the
process of conducting a land audit for the whole area. This exercise will be
undertaken to determine who owns what, and the areas of jurisdiction of the
Amakhosi of the area, and their subsequent proclamations.

Programme five: Urban and Rural Development R135,017 million

* The department has made significant strides in its endeavour to promote
improved access of government services and information to communities. Much
focus will be placed on the functionality aspect of existing Multi-Purpose
Community Centres now to be known as Thusong centres. The department will
continue to support Traditional councils by constructing new Traditional
Administrative centres which will act as headquarters for the newly established
Traditional councils.

* The department plans to pilot various technological initiatives in MPCCs
in partnership with GCIS, Department of Education � Further Education Training
(FET), USA and SITA such as 'technology for women in business.'

The renovation and maintenance projects will be labour intensive, aligned
with Expanded Public Works Programme (EPWP) principles and focused on building
youth and women enterprises. A community based maintenance programme will see
local communities involved in the maintenance of MPCCs (Thusong centres) and
TACs. In this way jobs will be created and poverty alleviated, thus improving
the quality of life of the marginalised communities.

* The strategically selected and funded catalytic projects will continue to
build upon the local strengths and foster a spirit of enterprise through a
shared vision of sustainable development. These projects will be in line with
the PSEDS, LED framework and the various IDPs of municipalities. The funding
and partnership created will also target the corporate community and directly
respond to the challenges as imposed by the second economy impediments.

* We will develop Key Performance Indicators (KPIs) that will measure the
value of impact from consolidated investments developed through partnership
between the government, private sector and civil society organisations.

* The challenge for the department is to ensure sustainable positive
relationships between the community development workers and their respective
councillors. The department will prepare guidelines that will be work-shopped
with municipalities to ensure that local government public office bearers start
to view CDWs as additional capacity to assist them in identifying and
responding to the needs of the communities.

* The urban renewal and regeneration will be promoted to ensure the
prioritised areas are able to achieve both economic growth and employment
opportunities.

Programme six: Systems and institutional development R44,454 million

This programme focuses on the localisation of the key mandate of the
department. We will be establishing dedicated units to plan and implement
capacity building strategies and monitor the capacity development of the
municipalities. We will also be focusing on the establishment of a monitoring
and evaluation component, which will enhance our level of oversight and
intervention. We seek to promote co-ordination by sharing with our stakeholders
the insights into the challenges of the municipalities with targeted
intervention required. We are looking forward to providing focused targeted
support that will add value to the development of our municipal capacity.

Highlights for the new financial year

Chairperson, for the new financial year we have targeted the following
projects as our flagship projects for the ensuing financial year:

* Corridor development: We have been allocated a further R20 million to
facilitate projects in the provincial economic growth corridors. As part of the
five Year Local Government Strategic Agenda, the promotion of the LED
strategies to promote job creation, accelerate local economic growth, and
promote partnerships is of paramount importance.

* Project Consolidate: This project sees its final phase this year and we
are proud to indicate, as we have mentioned earlier, that major achievements
have been realised and these have enhanced the lives of the people of this
province. While the original programme will taper off, the principle remains
critical as a strategic area within the five Year Local Government Strategic
Agenda applied for all municipalities. We will be spending a further R30
million on accelerating service delivery, excluding partnerships.

* Support for Ondlunkulu: Provides institutional support for Ondlunkulu
namaKhosikazi to ensure that they have meaningful participation in the economic
activities of their communities. This support particularly seeks to facilitate
Ondlunkulu's participation in the Cooperatives, governance issues and
leadership training programmes. We will be allocating R2,5 million to
facilitate their participation in LED activities through co-operatives.

* Supporting izinduna zezinsizwa, amagoso namaqhikiza: Following a
successful conference for this traditional structure, the department has
committed to support the activities of izinduna namaqhikiza, in their quest to
contribute towards social cohesion, enhance values and in the fight against HIV
and AIDS. We will be allocating R2,5 million to facilitate their participation
in maintaining social cohesion in partnership with the department of culture
and tourism.

* Training for members of traditional institutions: We are collaborating
with Local Government Sector Education and Training Authority (LGSETA) in the
training and capacity building of the traditional institutions to ensure their
functionality. We will be allocating R2 million for training and capacity
building especially for Technical Co-operations (TCs).

Stipends for izinduna

Honourable Chairperson, it gives us pleasure to announce that as part of our
ongoing efforts to elevate the structures that are the pillars of the
institution of traditional leadership to their rightful place, we will, for the
first time in history, be paying stipends to izinduna within the Traditional
Councils. This will apply to the members of the Traditional Council appointed
by inkosi during the constitution of that particular Traditional Council.

We have already set aside an amount to the tune of R13,9 million for this
purpose and each qualifying induna will receive a stipend of R1 100. We are
also going to make a provision for other members of the Traditional councils to
receive subsistence and travel allowances as part of the restructuring process.
We will, in due course, announce the date of implementation of stipends.

Chairperson, as we said in our opening remarks, we have now sown the seeds
which will propagate good local governance leading to improved service
delivery, but Chairperson the attainment of the key objectives set out in this
budget will only be achieved through the diligent and dedicated efforts of the
whole family of local government in the province.

Our efforts and the dedication of fellow departments and other stakeholders
have ensured that indeed we are today able to proclaim without fear of
contradiction that: "a new star is shining in KwaZulu-Natal." It will again
take our collective effort to ensure that this new star shines brightly, shines
for everyone and does not wane.

As we gear ourselves to once again get down to business for the betterment
of the lives of our people we draw inspiration from these words of
encouragement found in the Holy Book "A man reaps what he sows �Let us not
become weary in doing good, for at the proper time we will reap a harvest if we
do not give up" (Galatians 6:7-9).

Chairperson, as a department we want to assure this House that we will not
grow weary, but will pursue every means available to reap a good harvest in
this age of hope. I would like to thank the House and in particular the Local
Government Portfolio Committee for their support and guidance in this mammoth
task. I want to also thank all the staff members ably led by the Head of
Department, Ms Gabi Gumbi-Masilela for working ever so hard to breathe life to
the aspirations of our people. Let us all welcome this new star that is shining
our province and work for it to shine for all our people.

I thank you.

Issued by: Department of Local Government and Traditional Affairs,
KwaZulu-Natal Provincial Government
17 April 2007