N Balindlela: State of the Province Address

16 February 2007

Madam Speaker of the Legislature, and Deputy Speaker
National Ministers and Deputy Ministers present here today
Members of the Executive Council
Members of the Provincial Legislature
Leaders of Political Parties
Leaders of Organised Business and Organised Labour
Leaders of Organised Faith Based Organisations
Executive Mayors and Mayors
The esteemed 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 (HODs) and Senior Civil Servants
Members of the International Community and donor organisations

Kuluntu lonke luphela lase Mpuma Kapa ndiyanibhotisa
Phaya ekhaya komabonakude kukho ababukelayo:

* Amathole � Molwen' aph' eGcuwa
* Kukhahlamba - Molwen' aph' eMaclear
* Alfred Nzo - Molwen' aph' eMatatiele
* Chris Hani - Molwen' aph' eMolteno
* Cacadu - Molwen' aph' eHankey
* O R Tambo - molwen' aph' eLusikisiki
* Nelson Mandela Metro � molwen' eGeorge Botha Hall

Bothani lusapho lwakowethu.

Nani baphulaphuli boMhlobo we Nene, ne Radio Ciskei. Nazo zonke izikhululo
zom omoya zasekhaya. Kubantu basekhaya abalele ngandletyananye, eziBhedlele,
kwabaseziNtolongweni, ezitekisini nase zikolweni, nakuni ndiyanibhotisa.

Kukho amakhaya aphantsi kwelifu elimnyama ngokuba namaxhoba eengozi zebhasi,
iimoto nabahambi ngeenyawo, izifo ngezifo esingabalula kuzo ugawulayo. Abanye
babazali baswelekelwe ngabantwana ngethuba lolwaluko. Ngokunjalo sinqwenela
nokukhumbula:

* uMama Adelaide Tambo iqhawe lethu
* uBishop noNkosikazi Dwane
* Obekekileyo ilungu lePalamente u Comrade James Kati
* Nobesakuba ngu President wabasebenzi I SAWU uComrade Thozamile Gqwetha
Sithi kuni nonke akuhlanga lungehlanga mzi wasekhaya

Madam Speaker, our province was also ravaged by many weather disasters
including tornadoes and wild fires in the eastern and western part of the
province. This phenomenon destroyed many households and also led to the loss of
lives in the Nelson Mandela Metro, Cacadu as well as in places like Mdantsane,
KwaNobuhle, Dutyini, which has suffered for a third time.

I extend appreciation to all our Departments and the Disaster Management
officials who rose to the challenge to provide food parcels, tents, clothing,
trauma counselling and speedy access to grants to our people and children. Your
action represents our motto of "standing by the poor," particularly in their
hour of need. R361 million has been allocated to benefit twenty five
municipalities within our District and Metropolitan municipal areas. Our
efforts remain focused on rebuilding the infrastructure in all the affected
areas. We are learning lessons from the world class Integrated Disaster
Management Centres in Mount Ayliff and Queenstown about how to interpret
weather pattern data, to better anticipate impending disasters and in so doing
prevent loss of life.

Madam Speaker, I have pleasure in congratulating our compatriots Mr Chris
McConnachie, the chief orthopaedic surgeon of Mthatha's Bedford Hospital, and
his wife Jennifer, who were honoured by Prince Charles with the prestigious
Order of the British Empire (OBE) for their work in the former Transkei. What
makes their honour unique is that they were Africa's only recipients of this
award. They were influential in the development and expansion of Mthatha
Hospital oncology and theatre facilities, as well as outpatients' department
and residences for staff through fund raising locally and internationally. This
is additional to their receiving the Health Excellence Award from the
provincial Department of Health. We salute them for their hard work and share
in their pride.

In addition to this I am pleased to congratulate Funeka Booysen from Rhodes
and Sive Spelman from Barkly East who have gone to Korea on a skiing
development competition. It is important to note that our province is making
inroads into unusual sporting codes that are not the norm in the Eastern
Cape.

As a nation we are also greatly privileged and honoured that finally South
Africa has obtained non permanent member status in the United Nations Security
Council. The Eastern Cape is indeed Africa. In these last 3 years we have
hosted events that have seen representation from all over the African Continent
including representation from Kenya, Cameroon and Guinea Bissau. The African
Editors Forum has also been held in our province. Very soon Bulembu Airport, in
the spirit of the Bhisho Revitalisation Process, will be accommodating trainees
from Kenya, Botswana, Rwanda, Nigeria � to name but a few - through the
partnership with 43 Air School. Government ministers from around the continent
were hosted in East London for the Women in Agriculture and Rural Development
(WARD) towards the end of last year. These events clearly indicate the efforts
of our Government in ensuring that Africa takes her rightful place in the world
arena.

Madam Speaker, this address draws a collective sense of what has been
achieved in the first half of our electoral term as well as what needs to be
done in the remainder of the term. It consolidates our achievements in the
context of the Freedom Charter. The Provincial Growth and Development Plan
(PGDP) remains our principal measuring instrument for development in the
province, our focal point and a blueprint of what we want to achieve, and for
taking people out of poverty by growing and diversifying the economy, building
the skills base, and delivering social programmes to meet basic needs of our
populace.

The strength of our Sector Forums has enhanced the PGDP through:

* the Job Creation Summit
* subsequent District Growth and Development Summits
* Job Barometer.

To this end we have now reached this stage where the PGDP should be
assessed. Funds have been set aside for this purpose. The Eastern Cape
Socio-Economic Consultative Council (ECSECC) has played an important role in
constantly refocusing on government on issues such as investment strategy and
industrial policy strategy. Madam Speaker, because of the levels of illiteracy
in our province not everyone has been able to indulge in the blueprint. As a
result, true to the Freedom Charter spirit, "people shall govern" in 2006 we
commissioned a Rapid Assessment Survey to solicit the views of the poor and the
marginalised on key aspects of provincial and local government service delivery
programmes.

This survey of over 12 000 households made useful recommendations on a
number of areas where service delivery improvements should take place. What did
the people say about their government? Among other things they said were the
following that:

* there is poor access to information
* government is not sufficiently reaching out to them
* there is no easy access to free basic services
* there is no information about who provides the services at District and local
level

Madam Speaker, it is clear that we need to speed up the delivery to the poor
people of the province, particularly in departments such as education, health,
social development and local government. Nangona sikhula isixa semali esabelwe
la masebe amathuba engqesho nawokulwa indlala akakabonakali kakhulu ngenxa
yemiba yolawulo ekufuneka luqinisiwe.

The two instruments at hand, the PGDP and the Survey, have given us a chance
to refocus on good governance.

Madam Speaker, I will now like to focus on Education

Education is within one of the six pillars of the PGDP which is aimed at
building human resources and the removal of illiteracy. It is the bedrock of
our human resources and the well of our skills.

Our Matric class of 2006 did a sterling job and bettered the pass rate by
2,3%. I am particularly pleased this year that many more girl learners passed
matric, and received university exemption than before. The top 3 learners in
the Province for 2006 were girl children. While this is significant and
pleasing as an indication that progress towards realising one of our Millennium
Development Goals that of "promoting gender equality and empower women," in
this country and on this continent, it remains a concern that proportionately,
the number of male learners successfully concluding their schooling by
completing their senior certificate is still significantly higher than that of
females.

This is an indication that more work must still be done to improve the life
opportunities of our girl-learners. I wish to acknowledge the involvement of
our social partners and all other stakeholders in the Matric Intervention
Programmes which we undertook as a turnaround strategy and a high priority
project. Here, I also acknowledge the huge contribution to the schools by the
School Governing Bodies (SGBs). I ask all communities to work hand in hand with
the SGBs.

To all our Grade 11 learners we would like to encourage you to follow the
four options that the National Minister and Provincial MEC have presented.

This year the Matric Pass rate will even be higher, as we put in place
measures to instil and support a culture of learning, teaching and service to
all our institutions, for example:

* We have cleared the backlog payments to 9 236 educators.
* We have cleared the backlog payments to 1 350 principals, some of which were
delayed for the last 4 years.
* We have further converted 3 411 educators from temporary to permanent status
mostly in areas such as Lusikisiki.
* Five Senior Managers and 107 Middle Managers have been appointed in the
Districts.
* Four Senior Managers and 107 Middle Managers have been appointed in the Head
Office.
* Although we are falling behind with the numbers of Adult Basic Education and
Training (ABET) this year we will see the ABET programme reviewed in order to
improve delivery.
* In the new financial year we have budgeted for an additional 698 Education
Development Officers and Subject Advisors which is in addition to the current
541.
* 1,2 million learners will benefit from the "no-fee schools" policy.
* The monthly stipend for the Early Childhood Education practitioners will be
raised from R1 000 to R1 500 with effect from 1 April 2007. These practitioners
will now be regarded as fully fledged educators.
* Bursaries will be offered at Further Education and Training (FET) Colleges.
This will open up other technical avenues for the talents of our learners and
diversify the skills pool in order to drive economic growth and fight
poverty.
* Science laboratories, computer rooms, libraries and fencing of schools will
be completed.
* The mud structure eradication programme will see all mud structures replaced
by permanent structures by the end of 2008.

In terms of Learning Teaching Support Material (LTSM) and the provision of
school furniture we have been greatly disappointed by some of our Black
Economic Empowerment (BEE) service providers. This is one of our sore points as
the Executive Council which we deeply regret.

In response to the challenges of delivering Learner and Teacher Support
Material (LTSM) to our schools, we are reviewing the purchasing and
distribution chain with the view to adopt a decentralised, hands-on approach as
well as allocating more resources for this purpose.

Regarding the provision of furniture we have appointed competent service
providers to supply the necessary furniture to our schools.

Despite the challenges surrounding the implementation of the School
Nutrition Programme, government is committed to the participation of community
co-operatives. The Department of Economic Affairs has been tasked with the
training and registration of co-operatives. In the meantime a new medium to
long-term strategy is being designed for implementation to replace the current
interim strategy that is in place.

Disciplinary proceedings against implicated officials are underway.

Madam Speaker, Early Childhood Development (ECD) remains the foundation of
overall human development. Grade R learner enrolment has increased over the
last 6 years: from 20 885 in 2000 to 127 444 in 2006. Enrolment in Grade R will
continue to increase annually until each public primary school has a Grade R
class by 2010.

Madam Speaker, Government remains committed to accessible and affordable
quality healthcare for all. Service delivery by the Health Department has
included:

* The training of 146 assistant pharmacists in 2006 and the employment of
180 assistant pharmacists in the new financial year.
* The distribution of 91 ambulances to all districts.
* The employment of 81 unemployed graduates to strengthen human resources (HR)
and Finance and 200 matriculants to implement the document management
improvement plan.

Madam Speaker, our aim is to increase our learnership programmes in Health
Sciences and training with an increase in interns from 200 to 300. Over the
next three years Project 5000 will see the employment of 5 000 health
professionals and administrative and managerial support staff. We believe this
will reduce the burden of high patient ratios that the present nursing and
medical staff are bearing.

I am deeply saddened every day by the numbers of our people succumbing to
HIV and AIDS related illnesses.

In January we convened a successful Multisectoral HIV and AIDS Summit where
all sectors agreed to work together. As government, we will be scaling up
treatment and care for people living with HIV and AIDS, with the assistance of
the 6 432 community care givers attached to clinics and the 1 050 auxiliary
care workers based at hospitals.

This will entail:

* increasing the number of clients accessing Anti Retroviral Treatment (ART)
from 27 000 to 40 000
* accrediting all 32 hospitals and 47 Community Health Centres to be ARV
sites
* increasing access to Voluntary Counselling and Testing (VCT) services, making
this available at all our fixed primary healthcare facilities
* strengthening the tuberculosis (TB) Crises Plan in 3 Districts, namely Nelson
Mandela, Amatole and O R Tambo, as this is one of the critical diseases that
targets HIV and AIDS sufferers.

Madam Speaker, I urge everyone to go and get tested, so that you know your
status.

Our support programmes currently reach 15 743 Orphans and Vulnerable
children as well as 1 239 Child Headed Households. I am delighted that we have
set aside R5 million for the 5 Foster Care Homes which house orphans so that we
can improve the living conditions and care interventions for children affected
by this disease. R11 121 940 has also been provided to 40 Home Based Care
programmes within the 7 Districts.

The MEC will expand in her policy speech on other programmes as far as
revitalisation of hospitals, access to medicines and state of clinics is
concerned.

With effect from the 2007/08 financial year, all government departments,
public entities and role players involved in poverty reduction will focus on a
concerted effort in 10 of the poorest and least developed local municipal
areas. This initiative will seek to weld together into a cohesive, measurable
poverty reduction programme, rather than a set of separate projects or
activities. The Department of Social Development has identified R40 million for
targeted poverty reduction in the focus areas. All departments together with
the local and national spheres will work together as a model for integrated
service delivery. The 10 local municipal areas that have been identified for
special poverty reduction interventions are:

* Umzimvubu
* Elundini
* Intsika Yethu
* Mbashe
* Mbizana
* Mnquma
* Ngqushwa
* Ntabankulu
* Nyandeni
* Qaukeni.

The Department of Social Development has made a concerted effort in 2006/07
to address the issue of the second economy, especially in rural areas, through
promoting sustainable livelihoods. Financial support and training was provided
for 26 Women's Co-operatives, targeting 390 vulnerable women. In this regard I
must mention a model charcoal burning project at Rabula near Keiskammahoek
where about 20 women are producing charcoal from alien vegetation. This is sold
to Limpopo, where they earn about R19 000 per truck. We hope that in the future
all the charcoal produced in the province will be used in the province. This
project currently has 4 kilns producing 2 truck loads of charcoal per month and
they are looking to increase production in 2007/8.

In 2007/08 the Department of Social Development is aiming to develop a
further 118 women's co-operatives, targeting 1770 women in rural areas. In
addition, 29 youth development projects, targeting 435 out-of-school and
unemployed youth were implemented in 2006/07. In the coming year the department
will fund 36 additional youth groups, targeting 540 young people. The aim of
these projects is to create self employment opportunities and to develop
entrepreneurial skills of unemployed youth.

Madam Speaker, the social sector programmes of the PGDP are one part of the
solution towards the alleviation of poverty. Alongside this rests growing the
economy and in particular the rural agrarian economy. The video gave you a
glimpse of some the innovative projects that are contributing to rural economic
growth.

Madam Speaker, crime is a sore point that threatens to reverse the positive
gains that our Government has made. We believe that our Provincial Crime
Prevention Strategy (PCPS) can and will effectively deal with the reduction of
crimes, particularly crimes against the most vulnerable including women and
children. Social crimes such as rape, murder, domestic violence and child
abuse, and other contact crimes do much to increase the feelings of
vulnerability as these tend to take place within the confines of the home.

During 2007 there will be a roll out of the PCPS at 29 police stations in
the Eastern Cape. Madam Speaker, we make an urgent call on all communities to
mobilise against crime and join our Community Police Forums (CPFs) in this
fight.

It is indeed a significant achievement that all CPF structures consist of
40% women and youth representation since the impact of crime is felt more
acutely by women in particular. As a sign of our seriousness we will do service
delivery evaluations at 40 police stations in the Eastern Cape. Together we
will win the war against crime.

I take this opportunity therefore, Madam Speaker, to salute the members of
the police service who recently uncovered a cash heist gang at Fort Jackson. As
the build up to 2010 intensifies we will ensure that law enforcement agencies
work in an integrated manner in the offensive against crime. Our success from
the pilot project conducted on the Wild Coast in fast-tracking tourism criminal
cases has clearly indicated that it is possible to realise speedy justice.

To further ensure safety in our schools the Department of Education is
working in partnership with the Department of Safety and Liaison to launch a
programme on school safety in March 2007. A budget of R10 million has been set
aside for the roll out of this project which will initially target schools in
the Nelson Mandela Metro Municipality, King Sabata Dalindyebo (KSD) and Buffalo
City Municipality.

Madam Speaker, I do not need to point out the symbiotic relationship between
poverty and crime. It remains our primary focus to continue to preside over a
deliberately pro-poor government. As I have already indicated a number of
initiatives within and beyond the state are aimed at poverty alleviation and
the restoration of dignity of our people.

Madam Speaker, the Five Year Local Government Strategic Agenda emphasises
the co-ordination role of the provincial sphere of government and mainstreaming
hands-on support to local government to improve performance and accountability.
Each of the provincial departments are supposed to play a distinct role in
enabling service delivery in the local sphere. This includes making sure that
the municipalities emerge with credible Integrated Development Plans (IDPs). We
have put in place accountability mechanisms to ensure that all provincial
departments comply with this:

* The Office of the Premier will have a full-time hands-on support
person.
* The separation of Housing from Local Government has been done and the
appointment of a Deputy-Director General is awaited.
* All the districts are in the process of finalising their District Growth and
Development Plans which will be completed by the end of March.
* All the nine Municipal Managers will be appointed by the end of February. In
line with this all municipalities will be expected to adhere to a performance
evaluation on an ongoing basis.
* KSD and Mnquma municipalities have, and continue to, receive provincial
assistance in order to ensure stability and delivery.
* Project Consolidate has provided a solid foundation for continued improvement
at local government level in mentoring in the fields of engineering, town
planning, financial management, etc. Unfortunately this intervention needs an
extended campaign of recruitment and retention strategies and as such I would
like to call on those with the necessary skills to lend their full support. As
a response to the recommendations of the Rapid Assessment Survey and the
Presidential Imbizos wherein the President asked a question, "Where is it
blocked � Ixingephi?" we then launched an innovative initiative which places
service delivery mediators in each district. The role of these officials is to
identify and remove blockages in the system and work with inter-governmental
structures to eliminate red tape in the delivery of services.

The service delivery mediators have proved so successful that we are
doubling their number to ensure a minimum of two per district. They will also
be working in tandem with the Community Development Workers who stand at 116 at
this moment. The interventions of these outreach workers will build citizen
confidence in government's ability to deliver and to be an instrument of the
people.

The Rapid Assessment Survey indicated that one of the basic issues was the
need for housing, access to water and sanitation. Consequently it was
recommended that careful attention be given to the strategic use of housing as
an economic multiplier. Recognising this, R471 million has been allocated to
speed up housing delivery together with district municipalities in 50 areas
including Mzingisi; Tyutyu; Peddie; Loerie Heuwel; Elliot and Second Creek.

Madam Speaker for us to create a better life for our people, to create
employment and eradicate poverty, the following will form the cornerstones or
our turnaround strategy for 2007 and beyond:

* Government should be based on honesty, integrity and humility. We should
be a caring government that is thoughtful and able to respond to the needs of
the people. A Change Management process which is intended to revive the morale
and work ethic of public sector employees has come to fruition. To that extent
the Khaedu programme which deploys senior managers to go out and meet with the
people at the coalface of service delivery; and the Balasela Service Excellence
Programme were successfully rolled out this year to further enable employees to
perform their primary role of serving communities as servants of a caring
government.
* Mutual peer support will be provided � MECs as well as HODs should support
one another through sharing of best practices.
* Performance Management for MECs, HODs and senior managers � 2007 will see the
roll-out of an intensified performance management review mechanism to ensure
delivery at the highest level. Senior managers will be held to account for
their actions (or lack thereof). In the absence of continued performance, no
performance bonuses will be paid.
* Optimal placement � this is meant to rotate the senior managers in order to
maximise their potential and skill. It will also refresh their knowledge in
different spheres including the Public Finance Management Act (PFMA), labour
law and administrative procedure and policy.
* Shared Services Centre � this is a concept aimed at improving financial and
procurement management systems within provincial government as a whole. This
model has worked well in Gauteng and has significantly improved their processes
and audit outcomes. Supply Chain Management will undergo significant reform in
the coming financial year including the implementation of a comprehensive
centralised electronic database of suppliers that will enhance procurement
management in the province. This supplier's database will provide the province
with more reliable information in screening the unscrupulous suppliers to
prevent tender fronting, fraud, duplication and corruption.
* Shared Internal audit � as of 1 April this service will move to Provincial
Treasury. This will further improve the capacity of Provincial Treasury to
support departments in areas such as risk management, fraud prevention, norms
and standards, financial reporting and internal controls.
* Service charter � the charter will enable our people to exercise their rights
and call government to account on the standard and quality of service they
expect.
* Customer care � customer care is at the coal-face of service delivery and
this is where caring for our people begins. This concept must be filtered down
to local levels where the majority of our communities access government
services.
* Provincial Skills management - to further improve the performance of
government and in the spirit of voluntarism we have enlisted hundreds of
retired professionals, unemployed graduates and veterans to beef up our skills.
Many of these people will be spread throughout the province to help unblock the
processes in service delivery. We will be resourcing them while they work to
improve their skills and work experience. The first batch comprising of 77
unemployed graduates have been placed in various departments including
Education, Health, Provincial Treasury and Social Development.
* Skills attraction and retention - As a way of ensuring that we attract and
retain the appropriate talent to drive and accelerate service delivery we have
crafted the Skills Attraction and Retention strategy. This will further enhance
the Government's efforts in meeting its targets in key critical areas
identified in our PGDP. In line with the intentions of the PGDP we have further
identified key and critical skills which the province needs to build and
acquire in order to drive the PGDP. These skills are in the key critical areas
of tourism, infrastructure, manufacturing and agriculture. The sum of R100
million from the National Skills Fund already allocated to the province will go
a long way in accelerating skills acquisition. This project which is going to
be rolled out in collaboration with all 6 districts and the metro will
concentrate on internships, learnerships, and apprenticeships.

To further realise our goal of quality service delivery the Executive
Council (Exco) and I have collectively committed to doing all within our power
to ensure that we minimise under-spending of financial resources allocated to
all our Votes in the current and incoming financial year. More significantly
the Exco further resolved to use the muscle of government procurement to
influence the provincial economy. The bulk of a total sum of R13 billion
earmarked for the goods and services budget should be biased towards local,
trained and emerging small medium and micro enterprises (SMMEs), not leaving
out already established business in the province.

I wish to announce that in line with this thinking Exco took the decision
for government to procure its tea from Magwa and Majola Tea Estates to make
sure that the resources of government are deployed to ensure sustainability of
the local producers.

Madam Speaker I am proud to report that the branding campaign of the Eastern
Cape is being rolled out as I speak. From today, 16 February, we will be
witnessing the advertisement of our province in various media featuring three
noted sons and daughters from the province. We are committed to making our
province a compelling place to work, live and invest.

Madam Speaker, this government continues its stance of zero tolerance to
corruption. Our intention of rooting it out is motivated by our unstinting
focus on eradicating poverty and as such we will spare no effort in making sure
that the resources of the state are directed to those who deserve them most. To
that end Madam Speaker, I am pleased to report that the Pillay Commission of
Inquiry into the Financial Management of the Province of the Eastern Cape
(1994-2004) has completed its work. We continue to strengthen our systems of
control as we now fully understand that corruption thrives in the context of
weak systems and poor controls.

In addition the Provincial Anti-Corruption Unit is in place and in the past
year it has successfully rolled out a number of the anti-corruption activities
including the creation of a database of all cases reported through the
anti-corruption hotline and whistle blowers. The multi-stakeholder
Anti-Corruption Forum and Anti-Corruption Council are in place.

Madam Speaker � moving towards the economy of the province � I am pleased to
report that the province has created 152 000 jobs in the past two years. This
represents the highest number in the country. Our unemployment rate has dropped
from 32% to 22% in the last two years. The Western side of the province has had
an overwhelming injection of investments, e.g. VW Paintshop, Alcan, Seark,
Logistics Park, Coega and East London Industrial Development Zone IDZ. This is
most appreciated. However, Madam Speaker, the greatest achievement is the
realisation of continual job-creation and poverty alleviation through agrarian
reforms.

Our focus on the development and strengthening of the rural economy will be
driven by the nine high-impact priority projects as identified in the spirit of
the Accelerated and Shared Growth Initiative for South Africa (AsgiSA) and the
Joint Initiative for Priority Skills Acquisition (JIPSA). These projects, some
of them already mentioned, are as follows:

* Umzimvubu Catchment Basin
* N2 Corridor Development
* Agricultural Beneficiation (Bio Fuels, Magwa Tea and Pondoland Sugar)
* 2010 FIFA World Cup (Intensifying Role-player & Stakeholder Support and
Promoting Cultural Industries)
* scaling-up prevention and treatment of HIV and AIDS
* community mobilisation against crime
* strategic skills programme
* support to municipalities in the area of financial viability, in line with
the 5 year Local Government Strategic Agenda
* roll out of the Provincial Monitoring and Evaluation (M&E) Tool

Government's attention will now turn to the eastern region, to ensure that
all our people feel the benefits of economic growth. This does not mean that we
will neglect the western region, but rather reinforce the natural linkages
between the booming first economy and the nascent second economy.

* For the small community of Ugie 1 900 jobs have been created through the
forestry and timber industry.
* The Cheese Factory in Dordrecht has not only created jobs but has also
managed to feed school children in that area.
* A fully computerised dairy is being completed in Keiskammahoek. This
initiative involves commercial farmers from Alexandria and the Seven Stars
Women Co-operative of Keiskammahoek. 50 cows will be milked in 45 minutes,
totalling 500 cows per day, with full production coming on stream by March
2007.
* We are proud that the Eastern Cape has been selected as the national pilot
for the implementation of bio fuels, through the mass planting of canola. This
project has the potential to create 21 600 direct and indirect job
opportunities.
* The Siyakhula and Siyazondla Food Security Programme have benefited more than
15 000 households. We will target 5 000 new households this year.
* Five irrigation schemes have been revitalised namely Ncora, Tyefu, Shiloh and
Qamata.
* The Micro-Agricultural Finance Schemes of South Africa (Mafisa) Plan tender
document has now been simplified for accessibility to our emerging
businesses.
* The province in conjunction with the Provincial Land Claims Commissioner have
the jurisdiction to adjudicate on land claims to the tune of R5 million. This
will assist to speed up the process of land claims.
* A dedicated team is currently dealing with the Environmental Impact
Assessment (EIA) backlogs and new applications so as to accelerate economic
development.
* The 17% interest rate charged by the Eastern Cape Development Corporation
(ECDC) is currently being reviewed to enable growth in the critical sectors of
SMMEs and economic enterprises.
* We are proud of the youth, women and the disabled and they will remain a
central feature of our development particularly in agriculture.
* We encourage food gardens in each house so as to help our vegetable vendors
who have then trained on business skills to create SMMEs (Mrs Matyeshana and
team).
* A buyback centre for recyclable material has been established in Oriental
Plaza, Buffalo Flats, King William's Town, Gonubie and Mdantsane.
* Madam Speaker, government has responded robustly to AsgiSA, by registering a
special purpose vehicle in the form of AsgiSA (Eastern Cape) Pty Ltd, to manage
the Umzimvubu Basin Management and Development Programme and the Forestry
Development Programme mega-projects in the eastern region. The recruitment and
selection of the Chief Executive Officer (CEO) is at an advanced stage, and an
interim Board is in place. I am confident that this entity holds the key to
bringing economic vitality to the eastern part of the province in the way that
the IDZs of Coega and East London are doing in these areas.

The hosting of the FIFA 2010 Soccer World Cup matches in our province
provides an exciting opportunity to promote unity among our people and
communities, creating sustainable economic opportunities and to promote our
province as a destination of choice.

A mass participation campaign to mobilise our people around all sporting
codes is underway in all municipalities. As from July 2007 this will be more
specifically focused around soccer.

In Nelson Mandela Bay, construction of a new 50 000 seater stadium has
started. In the National Host City Forum our host city of Nelson Mandela Metro
has been the best performing city to date amongst all other hosting cities.
Congratulations Mayor on this achievement.

At present the bulk sewage and water works as well as piling are being
installed. The main tender for the construction of the main stadium has been
awarded. The contractor will be on site in March and we are confident that the
completion deadline shall be met.

In King Sabata Dalindyebo municipality, the final design for a new 15 000
seater stadium has been approved. Although there is an allocation at this point
we would like to invite investors to partner with us in the development of this
legacy project as KSD is the hub of the soccer fraternity in the province.

In Buffalo City two stadia are being refurbished. These are Absa Stadium
which seats 10 000 and Bhisho stadium with 20 000 seats as the city has been
identified as base-camp city for training both prior to and during the 2010
World Cup. We have already had one team from Sweden to train for its off-season
in Buffalo City.

Then we need to prepare sufficient hospitality infrastructure to accommodate
and cater for visitors and guests. The accommodation requirements for 2010
significantly exceed the existing capacity in the province both in quantity and
quality. We will broaden ownership of products to include more black and women
owned businesses within the industry particularly in the rural areas, building
tourism products and improving roads to rural areas. In this regard, a pilot
project will be begin on 1 April 2007, in which the Department of Sports,
Recreation, Arts and Culture is partnering with the Educational Institute for
Service Studies (EISS) in Port Alfred to upscale the capacity of 40 Bed and
Breakfast (B&B) owners within the Kwam eMakana project. An amount of R300
000 has been set aside for this training.

A strategy will be developed in line with the Kwam eMakana model for the
entire province to provide service-orientated products during the 2010 World
Cup.

Parallel to the football spectacular there will be an Arts and Culture
programme. I would similarly like to encourage all crafters to ensure that they
take up the opportunities to market and sell their products, and to contribute
their entrepreneurship to our vibrant cultural tourism. In the meantime a
crafters' database is being compiled together with an additional three
crafters-hubs in Dimbaza, Dispatch and Flagstaff which will be based on the
Mthatha crafters-hub model.

In order to ensure that the masses of our people enjoy this spectacular
event, we shall establish Fan Parks. These will be public viewing areas with
large screen televisions (TVs), entertainment and food and beverage stands.
Outside the FIFA perimeter our artists and crafters will have the opportunity
to sell their products and this is an economic opportunity we cannot afford to
miss. The spirit of free enterprise should be encouraged.

The Department of Roads and Transport is also expanding the bus transport
capacity, by subsidising 166 brand new AB350 buses which will operate in Alfred
Nzo, Amathole, Chris Hani and OR Tambo Districts and greatly improve access and
mobility. Madam Speaker, I am delighted that elderly and disabled people will
receive preferential treatment on these buses when government introduces a
special subsidy for these treasured members of our society.

Our tourism needs to be geared and ready for 2010 and beyond. The year
2006/07 saw great improvement in the registration of tourism products as a 22%
increase was realised from 590 to 720. The registration of tour guides has also
shown a rapid increase.

Madam Speaker, all this economic activity is bringing job opportunities to
the province that will profoundly impact on poverty and the quality of life of
people. It is important that we are able to capture this information so that we
can track and analyse trends. The new financial year will see us having this
capability, with the establishment of a Jobs and Economic Growth Monitor. This
will give us up to the minute growth statistics.

Madam Speaker, I am sure that everyone agrees that the achievements I have
mentioned thus far indicate a government in action to honour the social
contract for the eradication of poverty and unemployment. I am sure this House
will agree that the programmes I have outlined indicate a government at work.
By working together, we will create an Eastern Cape that delivers to all. Once
again I invite you to partner with us as government to deliver on our promises
to our people. We encourage you to engage with us and provide us with feedback
and recommendations.

I am also pleased to say that the Eastern Cape has produced a number of
national leaders both in the public and private sector. We have urged them to
develop gateways for ploughing back to the province through both business and
human capital investment. A number of people have taken up this mantle. These
include:

* Mr Saki Macozoma who is spearheading a tourism investment in the East
Coast Resorts Area
* Ms Gloria Serobe who is doing similar work in Kentani
* Mr Bulelani Ngcuka who is leading a major property development in Jeffrey's
Bay
* Mr Mxolisi Mtshamba who has returned from the Department of Trade and
Industry as the CEO of ECDC
* Prof Wiseman Nkuhlu, formerly Economic Adviser in the Presidency, chairs the
ECDC Board.

In conclusion, Madam Speaker, I am indebted to numerous people who have been
the mainstay of strength behind me, supporting and inspiring me in the valleys
and mountaintops of life. I begin with my family: my mother, my husband and my
dear children; all my comrades in the Executive Council, in this esteemed House
and all those serving in municipal Councils. I also want to thank my
organisation, the African National Congress, the Alliance, my friends and my
prayer group. Truly, your inspiration is what has kept me afloat. May you be
rightly rewarded.

I thank you.

Ms Nosimo Balindlela
Honourable Premier of the Eastern Cape

Issued by: Office of the Premier, Eastern Cape Provincial Government
16 February 2007