N Balindlela: Eastern Cape State of the Province Address

10 February 2006

THE PROVINCE AT WORK FOR THE ADVANCEMENT OF SUSTAINABLE LIVELIHOODS

Madam Speaker of the Legislature, and Deputy Speaker
National Ministers and Deputy Ministers present here today
Members of the Provincial Legislature
Members of the Executive Council
Leaders of Political Parties
Leaders of Organised Business and Organised Labour
Leaders of Organised Faith Based Organizations
Executive Mayors and Mayors
The Venerable Traditional Leadership
Members of the Judiciary
Commissioner of Police, and Heads of our Security Services
Leaders of different organs of the State, including Chapter 9
Institutions
Leaders of the Tertiary Sector Institutions
Leaders of the Non-Government Sector
Heads of Departments, and Senior Civil Servants
Bantu basekhaya eMpuma Koloni
Zihlobo nani maqabane

Molweni nani lusapho lwasekhaya apho e

Ukhahlamba: Mount Fletcher Roman Catholic Church
Amathole: Great Kei Community Hall; Mzomhle Extension, Ward 5
Alfred Nzo: Maluti, Haoue Community Hall Ward 25
Chris Hani: Emalahleni; Indwe Community Hall
Cacadu: Klipplaat Community Hall
OR Tambo: Ngangelizwe Rotary Hall & Qumbu Town Hall
Nelson Mandela Metro: Lillian Ngoyi Sports Centre

Mandibulise kuba Phulaphuli boMhlobo Wenene abasemakhaya, nani eziBhedlele,
eziNdleleni, naseziNtolongweni, ndiyabhotisa.

Zikhona ke nezibuhlungu ezehlele lo Mzi wasekhaya ukususela oko ndenza
intetho yam yovulo lendlu yowiso mthetho eMpuma Koloni kunyaka ophelileyo.

Ukumkani wethu wamaXhosa uXolilizwe Sigcawu owasishiyayo Ah Xolilizwe. Wanga
umphefumlo wakhe ungaphumla ngoxolo. Mandithathe eli thuba egameni lika
Rhulumente wePhondo ndinqwenelele ongene ezi hlangwini zakhe iNzolo ne
Nkxolazwe uKumkani uZwelonke. Sikunqwenelela amathamsanqa kwiSizwe sakho.
UThixo akuphe ubuchule bengqondo ukuze ukhokhele iSizwe sakho ngobunono
nobulali. Sikhumbula amaGqala lomzabalazo wethu, u Oom Ray, u Dan Qeqe, u Max
Ntshona; umfama ogqwesileyo u Mama u Kali waseNgqamakhwe. inkondekazi uMama u
Gawe,  uMama u Nazo, A young famous jazz artist u Lulu Gontsana, Vuyisile
Bhojana umdlali weqonga ophume izandla ku Zidenge naku Thuthula. An
internationally acclaimed artist with a unique oral overtone sound(Umngqokolo)
Mrs Wayinethi Mbizweni of Ngqoko cultural group from Lady Frere. We also
remember the tragic passing away of the nine members of the Pillay and Naidoo
families from Port Elizabeth; and of the son of our Eastern Cape soil, Dr Anton
Rupert, who amongst many other achievements, founded the Tourism College in
Graaf Reinette.

Abantwana bethu abaswelekele kulwaluko, iingozi zeeBhasi neeMoto ezisube
imiphefumlo yabaninzi. Sithi kuni nonke zizalwane naMaqabane abo akuhlanga
lungehlanga, thuthuzelekani.

IMBEKO

Zikhona ke ne zonwabisayo

uBawo waseMount Coke obengenamilenze neNdawo yokuhlala, ngoku uyahamba kwaye
uneNdawo yokuhlala. We thank Red Pepper properties and the Amputee Club of
South Africa. Umntwana wethu uNomawethu Sifumba omnye wamaxhoba e Bhasi
eyayithwele abadlali bethu beSikolo. Ubuyele esikolweni yaye ufumene ilungu lo
mzimba ekwabonakalisa ukomelela nokuzimisela ekuqhubekekeni nezifundo zakhe
nemidlalo. Sivuyisana ke nabo bonke abantu abasenzele udumo neqhayiya. Sithi
Mazenethole.

Thank you to all our departments for showing such care to our people.

We also open our arms as a province to the people of Matatiele, who as our
fellow South Africans, will bring enormous value to our lives, and to the
people of Umzimkulu, let us continue to live in harmony. South Africa is one
country. We must not break the umbilical cord that binds us as Africans, in
pursuance of good governance and a better life for all.

Our government congratulates the University of Fort Hare on its 90th
birthday, which follows just a year after the University was awarded one of the
highest orders to be bestowed on a person or institution by a South African
President, the Supreme Order of Baobab (Gold). We share in this pride.

Madam Speaker, it is my singular honour to again stand in front of the
people of our Province and country today to outline with honesty, humility and
integrity, the progress of government for the past year and to sketch the
future and thrust of delivery for the coming year, and beyond. In the past
year, as in previous ones we have been fortunate and privileged to work as
servants of our people under the exemplary leadership of the President of our
country, the Honourable Thabo Mbeki. His perceptive and far-sighted stewardship
over a government that promised our people a better life for all is a shining
example, inspiring us to spare no effort in removing all barriers that stand in
the way of our people’s attainment of livelihoods they so deserve. Enkosi
Zizi.

Madam Speaker, as it has become tradition, to coincide with the opening of
the Legislature, my office has produced and will distribute a service delivery
booklet to inform members of the public about progress made with the
implementation of government projects and programmes. I urge all of us present
today to read this booklet and join me in on-going monitoring of progress in
this regard.

In the last three weeks we as your government have been taking stock. We are
fresh from an Extended Executive Council (EXCO) Lekgotla which took place at a
very strategic time in the planning and implementation cycle of government. It
followed closely on the Extended National Cabinet Lekgotla, to which Premiers
were invited. It was held in anticipation of the State of the Nation Address
which was delivered last Friday (3 February 2006). Our provincial EXCO Lekgotla
is a time in the provincial calendar to pause, as the collective leadership, to
assess progress and to re-examine priorities to ensure on-going alignment with
national development agenda.

This year, the extended Lekgotla strategically preceded the Local Government
Elections of 1 March 2006. In the spirit of co-operative governance and
co-responsibility for delivery, the Lekgotla presented an opportunity to firm
up readiness for uninterrupted delivery as newly elected councils settle into
their rhythm. District and metro mayors were also invited and fully
participated, making valuable inputs.

The purpose of the Lekgotla was to:

* Assess provincial delivery against our Provincial Growth and Development
Plan (PGDP) and IDP plans and priorities;
* Monitor alignment; inter-sphere integration and co-ordination;
* Consolidate lessons learned;
* Re-affirm strategic focus areas for the electoral mandate period as outlined
in the Manifesto 2004 - 2009; and
* Refine government cluster priorities and plans for 2006/7.

What lessons have we learnt during this self assessment process?

To name a few: we have learnt:

* The importance of working in clusters as government departments;
* That our economic growth needs to be accelerated;
* That we need sustained macro-social development;
* That we must find more ways to address state capacity issues;
* That transversal and concurrent powers add complexity to delivery;
* That provincial socio-economic data needs to be updated;
* That we need to develop spatial development plans as a matter of
urgency;
* That the support given to rural and urban development nodes is not
sufficient;
* That district and municipal co-ordination needs to be strengthened, and
co-operation improved;
* That there are unnecessary systemic delays hindering service delivery;
* That there is indecisiveness within the administration;
* That documentation and reporting mechanisms are not up to standard.

A key focus in the year ahead to address these blockages will be to enhance
cluster functionality. We will also ensure that the performance management
system works as it should. Further initiatives to improve service delivery
include:

* Developing a model for cluster-based budgeting;
* Including representatives from the local sphere in clusters.
* Revisiting spatial planning; and
* Setting time frames for responses to public queries.

Allow me now to turn in more detail to our PGDP - which is our blueprint for
turnaround for the Eastern Cape – and to talk to plans for 2006/7.

The primary goal of the PGDP is halving unemployment in our Province by
2014. We are pleased to observe that there is already firm evidence that we are
moving in the right direction. A variety of social development initiatives to
fight poverty are in place.

Firstly, the acceleration of social grants delivery is well underway,
primarily due to the deeper rural reach of the Child Support Grant. There are
now nearly two million social grant beneficiaries in the Province [1]. I am
particularly pleased to report that steps have been taken to prevent the abuse
of social grants, especially the Disability Grant. In order to further
streamline social grant administration, 1 April 2006 will see the establishment
of the South African Social Security Agency (SASSA), a national public entity
tasked with delivering social security country-wide. We are one of the first
provinces to come on stream in this regard.

The social sector is currently exploring ways to expand victim empowerment
programs to include victims identified through the Truth and Reconciliation
Commission process. In addition, Madam Speaker, it brings me great joy to share
with you that the National Council of Provinces approved the Special Pensions
Amendment Bill on 16 November 2005, which was then gazetted on 16 January 2006
as the Special Pensions Act 27 of 2005. This Act now extends monthly benefits
as well as funeral benefits to the surviving spouses and orphans of the heroes
of our struggle for democracy. Special Pensions offices have also been
established in Port Elizabeth, Bhisho and East London, to enable accessibility.
Unfortunately, it must be said that there is already evidence of people making
a mockery of our struggle by submitting fraudulent Special Pensions
applications. We must stand united and urge people to desist from this
unbecoming behaviour.

The second major poverty alleviation mechanism is the Expanded Public Works
Programme (EPWP). Whilst it is co-ordinated by the Department of Public Works,
it is implemented transversally across departments. Resources are being
allocated to create jobs in the areas of road maintenance; public buildings
maintenance; land clearing and land reclamation; and construction. Social
sector inspired public works is relatively new and is being expanded. It
includes training and stipends for community health workers, community-based
care for people living with HIV & AIDS and workers for Early Childhood
Development. This has created internship and learnership opportunities for
women in particular, who now receive an income for the care services they
provide, with 21 Home Based Care Centres creating 743 jobs, and 1206 Early
Childhood Development Centres creating 1800 jobs.

Thirdly, as regards the Comprehensive HIV-AIDS Programme, I am pleased to
report that nearly all our primary healthcare facilities now offer voluntary
counselling and testing. 74% of these facilities also offer prevention of
mother-to-child transmission treatment. Anti-retroviral treatment is being
rolled-out. We are targeting 15,000 patients on antiretrovirals (ARVs) by the
end of next month, with a swifter roll-out next year, targeting 55 new delivery
sites and 27,000 patients to be put on ARVs. Of course the rural nature of our
province hampers some of this roll-out, and we hear the call of our health
workers in the Umzimvubu and Maluti Local Service Areas who responded to my
call “khawutsho mfokazi kabawo” and pleaded for electrification, sanitation,
water and expanded infrastructure at clinics in those areas.

Water and sanitation are indeed critical basic needs. The PGDP Water &
Sanitation Programme is mainly funded from the Municipal Infrastructure Grant
(or MIG), which has a current budget of more than R1 billion. 95% of MIG is
spent on labour-intensive basic water and sanitation projects. Presently the
Department of Housing, Local Government and Traditional Affairs is managing 485
water and sanitation projects that are funded by MIG. These projects will
provide basic services to an estimated 375,000 households, which is one fifth
or 20% of all households. Free basic services (water, electricity and
sanitation) are now being targeted at indigent wards in most
municipalities.

There are still an unacceptably high number of households in the Province
living with the daily indignity of using bucket sanitation. It costs about R9
000 to replace one bucket toilet with water-borne sanitation. Monies are being
allocated, mainly through a MIG ring-fenced budget. In order for us to meet the
national targets for eradicating the bucket system, this must be a priority
focus area for provincial government in partnership with local government. I
will personally be monitoring progress in this regard.

Importantly, our Housing Programme will deliver 25,000 low-cost units this
financial year, compared to an original PGDP target for the same year of 20,000
units. I am glad to announce that the Dimbaza wooden houses will be demolished
as from April 2006, and beneficiaries re-settled. This project is being managed
by Thubelitsha Homes and is inclusive of 10 physically challenged
beneficiaries.

Madam Speaker, looking at agriculture that straddles social and economic
needs, these programmes is playing a vital role in ensuring food security. The
Siyazondla Programme assists with the establishment of food gardens at
community level, at clinics and at schools. More than 10,000 vulnerable
households benefit directly. Food security is further provided by means of the
PGDP's Comprehensive Nutrition Programme, which has several elements. Allow me
to focus only on school nutrition. This year the Education Department will
continue providing meals to learners every day of the week, increased from
three days a week in 2005. Schools are being encouraged to establish food
gardens, and efforts are being made to organize local co-operatives to provide
the school meals. The Education Department currently employs 5,800 meal
servers.

The Education Department is the custodian of our human resource development.
Our 2005 Matric pass rate was 56.7%, compared to 53.5% in 2004. As a province,
we achieved the best improvement in pass rate nationally, but our overall
figures still place us at the back of the queue with the lowest overall pass
rate. The matric pass rate is probably a fairly good measure of the quality of
basic education our school learners are receiving. And clearly, a good basic
education is essential for the skills formation that is necessary to sustain
our growing economy.

So, it becomes an absolute priority to manage the Education Department well.
In that regard, as government we are committed to work alongside our social
partners, especially organized labour in the realization of the fundamental
human rights for our children. We do not underestimate the immensity of this
task. Our educational system comprises more than two million learners, about
6,000 schools and accounts for around 10% of our provincial economy. The
Eastern Cape situation is further complicated by skewed development indices
that still persist.

The concerted effort to improve underperforming schools will be intensified.
Technology devices are being provided to enhance teaching and learning.
Resources allocated to management information systems, teacher development and
HR systems improvement, are all increasing.

As regards Early Childhood Development, already 35% of Grade 1 learners have
received some prior formal education: what we call Grade R. By next year we
will ensure that all publicly-funded primary schools have Grade R classes.

Madam Speaker, in accordance with the Education Laws Amendment Act recently
signed into law by the President, I have pleasure in announcing that this
government will be growing the social wage by extending free basic services
when 2074 schools in the Eastern Cape are to be declared as “no fee schools”.
These schools are all in the new national quintile one, which incorporates the
poorest of the poor in our communities. Funds for this purpose have been made
available by National Treasury from 1 April 2006. School Governing Bodies of
the identified schools will soon be receiving letters from the Department of
Education asking for their consent not to levy school fees. In return, these
schools will receive a basic minimum amount in respect of every learner. This
year an amount of money has been set aside at R527 per learner. More than 580
000 learners stand to benefit from this, with further extensions possible in
the Medium Term Expenditure Framework (MTEF) to quintiles two and three.

It is equally important to ensure that Further Education & Training
(FET) Colleges provide learners with skills required by the economy. For that
we have embarked on a programme to re-capitalise these colleges. FET colleges
will work more closely with the Sector Education & Training Authorities
(SETAs) to provide relevant skills to support local economic development. The
Education Department has identified markets in educational provisioning where
FET colleges, working with others, could facilitate supply. For example: school
nutrition, school uniforms, learner-teacher support materials,
information-communications technologies (computer assembly and repairs) and
educational toys.

The PGDP’s Adult Basic Education and Training Programme is also still very
relevant, particularly where numeracy and literacy classes are strongly linked
to relevant knowledge bases, like community healthcare and community
enterprise. Formal recognition of prior learning will be an area of focus in
ensuring that we do not continue to marginalize our people and our indigenous
knowledge. To that effect, the budget for this has been increased.

Madam Speaker, acknowledging that the Eastern Cape is a rural province, we
are to continue accelerating agrarian transformation as a cornerstone of the
provincial economy. The PGDP Massive Food Programme assists communities in the
former homelands to grow maize on under-utilised arable land. It is progressing
well, with 18,000 hectares planted so far this year, and nearly 11,000 poor
households are participating. A yield of 3.6 tonnes per hectare is anticipated.
Noteworthy progress is being made in revitalizing all our irrigation schemes to
further expand agricultural production, and a fully-costed action plan will
underpin roll-out in the new financial year.

Investment in agricultural infrastructure is essential to realize the
economic potential of our Province. I would like to invite the business sector
to partner with government to expand this programme.

As regards progress with the PGDP Agro-processing Programme, I wish to focus
on the Eastern Cape Cotton Project, which in various ways seems exemplary. The
project is owned by Da Gama Textiles and has been facilitated by the Eastern
Cape Development Corporation (ECDC), the Department of Agriculture and Cotton
SA. It is already employing about 1000 seasonal workers on 1100 hectares.
Cultivation is undertaken at Qamata, Cradock, Somerset East, Addo and
Middeldrift. The project will significantly increase in scale over the next two
years. Complementary winter crops would be introduced to reduce the seasonality
of employment. A cotton gin has already been commissioned at Adelaide, and the
cotton will be used to manufacture an African-branded bed linen and towel
range.

We welcome the statement by the President and the Minister of Land Affairs
regarding extending access to land. We see this as an important opportunity to
expand our partnering initiatives between emerging and established farmers. Our
efforts in the field of agriculture are strengthened by such national
initiatives: for example, the Land Redistribution for Agricultural Development
Programme (LRAD), and the newly launched Mafisa Fund, that provides loans to
small-scale emerging farmers, and is initially capitalized at R1 billion.

Madam Speaker, we are aware that economic growth also rests on
infrastructure provision. I wish to report that 185 kilometres of provincial
roads will have been upgraded in the year to end-March this year. Maintenance
of our provincial road network remains a high priority both as a citizen safety
measure and as the nerve engine of our economic growth.

Ngqura Port is rapidly nearing completion at a cost of R4.1 billion and our
two industrial development zones (IDZs) at Coega and East London have
successfully completed negotiations with their first investors: three at Coega
and four at East London.

The refurbishment of the rail line from Mthata to East London is now
complete. An operator for the line is presently being sought, whereafter there
will be an Investment conference for the Kei corridor later in the year.

Rail transport is one component of the integrated public transport system
which is currently under design in the Province. This system must offer safe
and reliable transport options to commuters. It must be inclusive of the
competencies of both the local and provincial spheres. The MEC for Roads,
Transport, Safety and Liaison is under instruction to ensure a comprehensive
response to the taxi situation that has arisen again in isolated areas.
Intensified law enforcement must safeguard our people and entrench
legality.

As regards educational infrastructure, we are pleased to report that the
number of mud schools has been reduced dramatically: from 939 in April 2004 to
572 today (a 39% reduction). I am confident that, by using community resources
and intermediate technologies, by 2008 mud schools will be behind us.

As regards health infrastructure, a maintenance, revitalisation and
upgrading programme covering 33 hospitals and 60 clinics is being
implemented.

Madam Speaker, of course the most fundamental remedy for poverty, is
economic growth, which speaks to the very essence of the PGDP. I would like to
address myself to the growth imperatives of the province. In terms of growing
the economy, the national government sphere has led the way by conceptualizing
the Accelerated and Shared Growth Initiative (ASGI-SA). This Initiative seeks
to remove barriers to economic growth, and fundamentally to ensure that this
growth produces more jobs, thus resulting in more balanced development.

We are very excited about ASGI-SA and its prospects for raising levels of
growth and investment in the Province. Targeted support measures for sectors
such as chemicals, bio-fuels, agriculture, wood, pulp and paper, and tourism
all hold out significant advantages for our Province. We will be combining
efforts with our national departments to contribute to the ASGI-SA growth
target of 6% by 2009. Our Provincial Industrial Strategy, which will be
launched this year, will provide a clear package of support measures for
growing the job creating sectors of our economy.

We are further heartened by the massive roll-out of public investment in
infrastructure that is envisaged by ASGI-SA. The challenge for us as a Province
is to initiate projects that attract investors. To this end we have put forward
a number of mega projects that will boost growth and massify jobs in the second
economy. Our key project here is the proposed Umzimvubu Basin Management and
Development Programme aimed at environmental protection and preservation,
energy and water supply. This will include urban renewal of Mthatha and other
small towns in the catchment area, and the rapid expansion of a modern agro
forestry economy linked to value chain processing, manufacturing and marketing.
The Umzimvubu Project intends to capitalize on the vast water resources of this
area through the construction of a dam and a hydropower facility. In addition,
it is a distinct possibility to construct a water transfer system to the water
hungry Gariep dam.

The project will also include irrigation schemes for agricultural
intensification. Due to soil erosion in this area as a result of over grazing
and high rainfall, afforestation of approximately 50 000 hectares will also be
tackled as a critical part of the project. Ultimately, this project will
actively link the 2nd to the 1st economy through a set of carefully considered
supply-side measures. We want large numbers of emerging entrepreneurs and
co-operatives to gradually stake their claim in the 1st economy.

Given the sheer size and scale of the project, we are exploring the
viability of a special purpose entity to manage the initiative. In Coega, we
have a good track record with managing mega projects, and it is fantastic that
we can draw lessons in international best practice from our own Province. If we
are to benefit fully from the ASGI-SA commitments to scale up infrastructure
spending, we will also have to ratchet up our delivery capacity. We cannot
underspend our infrastructure budget and at the same time make a case for
increased infrastructure allocations for the Eastern Cape. This is a challenge
we are currently addressing. We have identified the root of the problem as
being poor forward planning for procurement, and have put measures in place to
rapidly build infrastructure planning, procurement and monitoring capacity. We
are correcting the infrastructure delivery cycle across all departments to
allow the necessary lead time for proper project planning, design and
procurement.

Another, closely connected, mega project which has also recently been put
forward under ASGI-SA, is the Forestry Development Programme. The Eastern Cape
has upwards of 250 000 hectares of land which can be developed into
plantations, primarily in the eastern part of the Province. This programme will
be launched during 2006/07 and will be implemented over a number of years.

The PGDP spells out manufacturing diversity as a central cog in the economic
growth wheel. There is much cause for celebration under the Timber Industries
Development Programme. Existing role players in the timber and forestry sector
have indicated their growth and expansion plans. Specifically, I would like it
to be noted that during the past year Steinhoff purchased the North East Cape
forests owned by Mondi, and as part of their estimated R1.3 billion investment,
there will be a new sawmill, tree nursery, chipboard factory and a door
factory. This impressive investment promises to create approximately 3,000
direct and many indirect jobs in a very poor and disadvantaged area of the
province.

As regards tourism, the expansion of the Addo Elephant Park from 148,000
hectares to 360,000 hectares is moving forward at an exciting pace. This
expansion is transforming Addo into the ultimate tourism destination, offering
the Big 7: Elephant, Rhino, Lion, Buffalo, Leopard, Whales and Great White
Sharks, all in their natural habitat.

Investment in the Wild Coast is set to increase. The Development Bank of
Southern Africa (DBSA) in partnership with Old Mutual has created a local
investment agency facility for Wild Coast developments and set aside R500
million for tourism-related investments there.

Our province is on the brink of experiencing an unprecedented era of
economic investment, growth and prosperity. I would like to mention but a few
of our economic successes over the recent past:

* Facilitating 30% community ownership of three hotels in Coffee Bay;
* Beck’s Trading have invested in Dimbaza and created 300 jobs;
* Phase one construction of the Nelson Mandela Bay Auto Park in Uitenhage has
begun, which is bound to unlock greater logistical competitiveness for the auto
sector;
* The auto sector have once again demonstrated their continued winning streak
by securing multi billion export orders in addition to making new capital
investments;
* Bushman Sands continues to deliver on the final stages of this mega tourism
development in Alicedale and has already secured major agreements with some of
the Super 14 rugby teams and the Australian National Team to use the venue as a
training camp this year. We expect a further R300 million to be invested there
this year;
* The Kenton Eco Estate has secured R850 million for investment to start this
year pending their Environmental Impact Assessments; and
* The Department of Public Works and ECDC are expected to begin with the
rollout of their asset disposal programmes in the new fiscal year, guided by
the recently adopted provincial asset management and disposal policy. This will
unlock billions of rands of assets in the property sector and is bound to
stimulate activity in the capital and construction sectors. Broad-based Black
Economic Empowerment will be strictly observed in all these transactions.

We must continuously promote our competitive advantages for investment, as I
honestly believe we are the best kept business secret in South Africa. We are a
province entering the verge of an economic boom. The soon to be finalized
branding strategy will certainly lift the marketing of the province and further
showcase it as a business destination.

Another government priority which the Province has to address itself to has
to do with initiatives aimed at intervening decisively in the Second Economy.
All government business and expenditure priorities have to be biased in favour
of the poor and the marginalized groups. We keenly anticipate the youth, women
and people with disabilities being at the forefront in this regard. The
Province is at an advanced stage of looking into the possibility of engaging
and capacitating cooperatives. This aims to create opportunities for the masses
- especially those who reside at the margins of mainstream economic activities
- to migrate to the first economy.

As government we have taken the decision to use state procurement more
creatively to provide economic opportunities for the poor. Beginning with the
Department of Education and cascading to other departments, we plan to use
state-sector markets as a catalyst for co-operatives and SMMEs. This will be an
integrated initiative involving numerous departments and state entities to
ensure the right package of support is provided to these targeted sectors.
Access to markets alone will not help SMMEs and co-operatives. They also need
access to micro-credit and skills development. We are mindful that, as
government our success in this arena hinges very much on critical and positive
engagement with the private sector.

This year will also witness my office, together with the provincial gender
machinery, hosting a Women’s Economic Empowerment Summit.

Next week we will be holding our Jobz Summit, to be attended by
representatives of Labour, Business and Government. We are indeed hopeful that
this summit will identify practical interventions: for strengthening our
industrial base, and for building sustainable bridges between our First and
Second economies. It also provides an opportunity for a process of social
compacting that is bound to develop deeper solidarity and commitment among our
business, labour and civil society partners in our quest to achieve accelerated
and shared growth.

Elaborating the macro-social strategy is about direct interventions that are
aimed at poverty eradication, and it is about building the ethical fibre of our
communities. This embraces initiatives such as those aimed at strengthening the
traditional institutions of our society including the family, prioritizing
vulnerable groups, such as orphans and child headed households, and partnering
the non-government sector. In the year ahead we will be developing our Macro
Social Development Strategy in a manner that primarily accelerates the
provision of basic services to the most poor and marginalized, as well as
building social cohesion within and between communities.

Through the Poverty Alleviation Fund with the Department of Social
Development’s Integrated Social Development Programme we plan to assist in
strengthening NGOs, community-based organizations and co-operatives. This will
build on the work of the past year, targeting vulnerable groups, which is
co-ordinated by the Special Programmes directorate located within my office.
All Departments now have Special Programmes Units, who ensure consistent
integration of these needs into government delivery.

The Poverty Alleviation Fund is a very specifically targeted initiative. In
partnership with NGOs; faith-based organizations and traditional leaders, micro
grants are channelled to livelihood projects, many of which magnify local
economic development. The beneficiaries of these projects are women, mainly in
rural areas, youth, and people with disabilities. In the past year, funds for
gender mainstreaming have been allocated to five women support centres, namely
Masonwabisane Women’s Support Centre (Butterworth), Ikhwezi Women Support
Centre (Cathcart), Women Against Women Abuse (Port Elizabeth), We care/Ons Gee
Om/ Women of Hope (Cradock) and Peddie Women Support Centre, based on business
plans submitted. Community initiatives the Centane/Butterworth have also
received support.

In the Shiloh irrigation project and more recently in Elundini, 10 sheep and
10 goats were given to disabled people and a farm was identified for handing
over to disabled farmers. These illustrate the ripple effect potential of
micro-projects to enable previously marginalized groups to enter economic
productivity. Learning from this, in the year to come, the Poverty Fund will be
re-structured as a gearing facility, to build a solid project management
foundation that will enable micro-projects to apply for financial support as
small businesses.

Sterling work has been done to eliminate violence against children and young
girls, with door to door awareness raising campaigns, and Men As Partners
outreach who are vocal that “Not in my name”. However, statistics are still
frighteningly high, and this must remain a priority as we undertake a review of
the criminal justice system in the Province in the year ahead.

Clearly macro-social development has to happen in tandem with economic
interventions, as elaborated in ASGI-SA, the PGDP, IDPs, and in a co-ordinated
fashion.

Madam Speaker, I have spoken quite at length about the PGDP. I have done so
because the PGDP has been a rich source of experiential learning for us about
vertical and horizontal integration for service delivery inclusive of the local
government sphere. As I have already said, it is also the only development
framework to turn around the fortunes of our Province. It is for this reason
that I must further elaborate on local government.

Given the centrality of the local government sphere for service delivery,
the performance of municipalities also needs to receive attention from the
other spheres of government. The three broad areas of attention that have,
therefore, been identified for the next 5 years to improve functionality
are:

Firstly to mainstream hands-on support to Local Government. This must
include
* Municipal transformation and capacity development;
* Basic service delivery and infrastructure development;
* Local Economic Development (LED);
* Financial Management;
* Improving functionality of ward committees and enhancing good governance;
and
* Continuing with and seeking to expand Project Consolidate initiatives.

Secondly, to address structure and governance arrangements, by

* Strengthening inter-governmental relations;
* Reviewing structure, role and capacities of provincial government to monitor
and support municipalities; and
* Addressing the capacity of the Department of Housing, Local Government and
Traditional Affairs to support municipalities

And thirdly, to refine and strengthen the policy and regulatory and fiscal
environment, by re-enforcing regulations and policy frameworks that are already
in place.

Our newly deployed cadre of community development workers become key in
facilitating linkages between community structures and government. I am proud
to report that the Eastern Cape – true to our tradition of deep participatory
democracy – is the leading implementer of the community development worker
(CDW) project nationally. One-hundred and sixty eight CDWs have graduated and
120 have completed their training. 100 will start training in March 2006, with
50% of trainees to be drawn from young people in the province, as well as
ensuring the inclusion of people with disabilities.

After the necessary preparatory work, the Provincial Local Economic
Development (LED) Programme will be officially launched on the 23rd of February
at the Qaukeni Great Place. This programme is funded by the European Union to
the tune of R250 million, and will assist our municipalities to be more
effective in supporting enterprise growth in their localities. The overarching
aim of the programme is to help address extreme poverty through enterprise
development. Emphasis is placed on a partnership approach that ensures that
small enterprises become sustainable through strong market linkages and
technical support.

Local government is what gives life to the concept of wall-to-wall
government. Extensive work has been undertaken to review the functionality of
this sphere of government, out of which two problems underlying the performance
of municipalities have been distilled. The first is poor capacity within
municipalities to discharge their functions, compounded by inadequate and
inappropriately structured capability within the state in general to support
municipalities. Secondly, the existence of poor and inadequate accountability
mechanisms straddles both the administrative and political domains of our
municipalities. It is for this reason that the next term of local government
must be characterized by a decisive shift towards building municipal capacity
and sustainability that should lead to an improvement in the performance of the
whole of government.

In the province, the areas that are receiving immediate attention in order
to create this kind of enabling environment are:

* Establishing stability in the administrative leadership of the department
of Housing, Local Government and Traditional Affairs by undertaking recruitment
for the appointment of a Head of Department;
* Completing the re-alignment process that will welcome Matatiele into the
province and relinquish Umzimkulu to KwaZulu Natal;
* Leveraging capacity from the United Nations Development Programme for
institutionalized support to municipalities alongside Project Consolidate;
and
* Ensuring that the Premier’s Co-ordinating Forum, as the inter-governmental
relations vehicle, assumes overall responsibility for co-ordinating and
monitoring hands-on support to municipalities.

Our local government system is harmonized with traditional leadership. We
have finalized the appointment of secretaries of regional authorities and their
absorption into the public sector, with full benefits. Within the department of
Housing, Local Government and Traditional Affairs strategic plan, there is now
fully fledged and separately resourced traditional affairs functionality. This
enables spending on development projects around kingdoms, with a clear focus on
the role of queens within their kingdoms. Government has also now passed
legislation that the Chairperson and Deputy Chairperson are now full time, in
order to enable the smooth running of the House of Traditional Leaders.

Let us all further confirm the vital importance of our system of local
government with regard to the achievement of the central goal of securing a
better life for the people, by going to the voting stations in our masses on 1
March 2006 to elect our local government representatives.

Madam Speaker, I would like to mention is Public Sector Transformation,
which is the engine-room that is critical to the achievement of our goals. We
will only be able to meet our poverty-reduction targets and address
vulnerability if the Public Sector enhances resource stewardship.

First and foremost, we are satisfied that the Provincial Government fiscus
has now been stabilized. The National Treasury released data last week[2] on
provincial government spending patterns in the nine months to end December
2005. I am proud to report that the spending of the Eastern Cape Provincial
Government was closer to budget than any other Province: 72.2% of our total
adjusted budget was spent in the first nine months (compared to 70.7% average
for all Provinces), and 65.6% of our capital budget was spent (compared to 55%
average for all Provinces).

Expanding the capacity of the developmental state to deliver on the promise
of a better life for all requires innovation. I wish to share a few service
delivery innovation highlights. Firstly, the province has led a national
process to design sector-based service standards. Service standards are a
mechanism for modernizing public service management processes and improving
citizen satisfaction. These standards are nearing finalization and as we enter
the new financial year, these will be available in the form of citizen’s
charters which will be communicated to people in communities so that they are
aware of the levels of service to be expected from departments. Departments
will use the standards in managing and as a means of improving client
satisfaction through service delivery improvement plans. This will confirm the
departmental commitments of services to communities via measurable indicators
and targets.

Secondly, we have finalized a new province-wide electronic Monitoring and
Evaluation (M & E) system, which will generate official M & E reports
from the end of the 2005/06 financial year onwards. This system will allow
government to get a real sense of the status of implementation of key
provincial, PGDP, cluster and departmental priorities as well as our provincial
progress on the implementation of the National Programme of Action. The
intention is to roll-out this system to public entities and local government in
the course of the new financial year. We have also started to implement an IDP
monitoring system through a partnership with the national department of
provincial and local government. This system is presently being rolled out to
the district municipalities and the Nelson Mandela Metro.

Thirdly, and most excitingly, as I speak there are field workers fanned out
across the Province collecting the views of our people in an independent and
rapid assessment of key aspects of provincial and local government service
delivery. The survey involves recording the assessments and perceptions of over
12 000 households across the province. This assessment will be finalized by May
2006 and we will start to implement the relevant short, medium and long term
recommendations to improve service delivery.

I must also share how we are re-invigorating the commitment of our senior
management service through participation in the Khaedu programme. The programme
reinforces the principles of Batho Pele – People First, and will see our senior
managers being developed into innovative problem solvers. The methodology
involves deployment to the service delivery coalface to understand and then
address the real challenges that face the province in the provision of equal,
fair services to the people of the province.

Finally, we are to implement a revamped project called Balasela or Service
Excellence program, which will set our government even more firmly on its way
to a more co-ordinated platform for pro-poor service delivery.

Madam Speaker, in addition to our national development mandate in our
country, the ruling party has further mandated us with the noble responsibility
of embracing the African Agenda. As a province we are in the midst of the
national African Peer Review Mechanism (APRM) process. This bold initiative has
presented a unique window to re-affirm our connectedness with our sisters and
brothers across the continent.

This self-assessment has served to remind us that our freedom as a nation is
indivisible from that of the continent. We cannot rest until the entire Africa
stands liberated from the devastation of colonisation and neo-colonisation,
war, famine, inequality and oppression. The APRM has brought to the centre of
our attention the need to seek avenues through which the province can add value
to the NEPAD agenda. The Governance and Administration cluster has
appropriately incorporated the African Agenda as a priority focus, to grow this
alignment.

In a review of the International Twinning Agreements to which the Province
is a partner, I have noted that we do not have an active partnership with a
province in another African country and I have tasked the Director General with
exploring possibilities in this regard. We must find ways to plough back to the
continent that opened its arms to us during the dark days of apartheid when so
many of us were forced from our beloved motherland. In line with this we are
striving to improve co-operation among African countries, particularly within
SADC. To this end, we hosted the President of Botswana and his delegation with
a view to exploring areas of mutual engagement.

The provincial government has done much in the past year to deepen
participatory democracy, through among other things the Executive Council
Outreach Programme. These izimbizo have been remarkable in that mainly those
outlying areas of our Province which are both spatially and policy isolated
have been visited. Izimbizo allow us to hear the voices of our people as they
articulate their hopes, their requests, and in some cases, their frustrations.
Through this dynamic interaction we have been able to attain an adequate and
balanced perspective of our Province, making us better able to target
government interventions.

When we are in dialogue with our communities, they speak with honesty about
corruption. We cannot stand passively by and allow the misuse and abuse of
public resources for private gain. I can report that the work of the Pillay
Commission is progressing well and the findings are awaited. These will inform
the provincial anti-corruption plan that has been devised by the
Anti-Corruption Council and adopted by the Anti-Corruption Forum. I also want
to acknowledge the work of the provincial agencies fighting corruption. This
often unseen work is building a new morality in the province.

I believe that we cannot and may not fail in our promise not to abandon the
poor. The most powerful tool that we hold to deliver a better life for all is
through robust and outcomes-oriented inter-governmental relations. Thus the
year ahead will see a continuation of the EXCO Outreach Program in tandem with
local and district municipalities. It will see information from the
province-wide electronic monitoring and evaluation system being the core of
cluster and inter-governmental relations forum agendas. It will see heightened
visibility of the service delivery mediators and monitors, deployed in the
districts, who, I am pleased to announce, will continue to be based in the
Office of the Premier until 2009.

Madam Speaker, we are “taking giant strides” here in “the Eastern Cape,
where leaders grow”. I wonder if those of you who flew into the East London
airport this morning took note of the welcoming bill board that is the front
runner of our unfolding branding strategy. These boards are now installed in
all three of our provincial airports, and will soon be welcoming everyone who
passes through any of the major entry points into our magnificent Province.
This branding strategy has been conceptualized with the collective involvement
of departments, public entities, local government and increasingly the business
sector and as such offers consistent messaging of the province. I invite each
and every one of us to be an ambassador in spreading a consistent and vibrant
vision about what a compelling place the Province is.

Our Province is indeed alive with possibilities! We are a province at
work.

Our collective task is to ensure that we do in fact appreciate this wonder
and commit ourselves to contributing something each day to this promise. Every
single one of us has a role to play in making our province a most compelling
place in which to live, work and invest.

From 1 March, I would like us to declare every Wednesday as a traditional,
cultural day. From Tsitsikamma to Umzimvubu, young and old, at work, at home,
every Wednesday we should wear traditional, cultural attire in order to
strengthen our identity as a province.

Onkolo ingamvumeliyo ukuba anxibe isintu makanxibe isivatho esamkelekileyo
kwinkolo yakhe.

Everyone should feel free to wear the attire that best reflects their
tradition.

May I take a moment to say farewell to our Provincial Police Commissioner
Mpongoma. Thank you for your dedication to your work in the Province. Enjoy
your retirement in June, but stay active in your local Community Policing
Forum.

Madam Speaker, allow me to thank all those who gave me strength. To my
mother; my husband and children, Mandi, Tumi, Ziya, Zola, Roro, Nofoto,
Mamkhwe. To all the MECs, the DG and senior management and staff of the
administration, to the African National Congress and the Alliance, to my
friends and my prayer group, and indeed to all the people of this province, who
humble me afresh each day. I stand on your shoulders.

I thank you

Issued by: Office of the Premier, Eastern Cape Provincial Government
10 February 2006
Source: Eastern Cape Provincial Government (http://www.ecprov.gov.za/)