Vote 9 of Free State Provincial Government, tabled by MEC SJ Mohai
27 March 2006
Honourable Speaker and Deputy Speaker;
Honourable Premier, Ms Beatrice Marshoff;
Colleagues of the Executive and the Legislature;
Chairperson of the Portfolio Committee, Honourable Nketu;
Mayors and other representatives of Local Government;
Head of the Department and officials;
Distinguished stakeholders;
Honoured guests:
Introduction and Context
This yearâs budget vote is very important in many respects. It happens on
the second year of the second decade of freedom. That leaves us with eight
years in our monumental task of halving unemployment and poverty by the year
2014. Governmentâs Programme of Action for this second decade is largely
dominated by economic activities and thus infrastructure has been identified as
a key driver for economic growth and development, to fight poverty and create
work.
Infrastructure development can play an important role in economic growth and
development and therefore set our provincial economy on a trajectory of much
higher growth rates. Such a trajectory must reduce poverty and create
sustainable employment. This is not only desirable but possible. It is
therefore no exaggeration to assert, as President Thabo Mbeki retorted in the
State of the Nation Address, that in deed we have entered an Age of Hope.
Our economy has experienced some relatively higher growth rates in the
recent period. Our system of democratic governance is maturing and growing
rapidly towards a true peopleâs and developmental state. A developmental state
that intervenes in the economy for and on behalf of the people. The high level
confidence that people have shown on our democratic system has been further
confirmed by the recent Local Government Elections.
The construction industry has also made its own contribution while it has
also grown. Benefits accrued to consumers arising from the current economic
growth have led to a boom in the motor vehicle sales. This resulted in
increased traffic volumes on our roads, and thus posing a challenge to maintain
and upgrade our road network and transport infrastructure.
Intensified efforts have to be made to bring about higher growth rates in
the province in a manner that will help reduce unemployment and fight poverty.
It is against this background that Accelerated Shared Growth of South Africa
(AsgiSA) has to be welcomed.
The Free State Provincial Growth and Development Strategy (FSPGDS) is
cardinal in pointing out priorities and drivers for the sustainable development
of the province. It sets the policy context for developing and growing the
provincial economy.
The Provincial Intergovernmental Infrastructure Summit, which was
successfully hosted last year (2005) in November, is instructive on our
approach and set of priorities with regard to infrastructure development in the
Province. The resolutions of this summit will therefore be inspiring to our
infrastructure roll out planning. These resolutions mainly focused on six key
areas, namely:
1. Land and Human Settlements;
2. Social Infrastructure;
3. Information, Communication and Technology Infrastructure;
4. Economic Infrastructure;
5. Roads and Transport (Road and Air Transport);
6. Engineering Services.
The hosting of the Infrastructure Summit was indeed watershed and therefore
was a fulfilment of the dictum the Premier had made in the State of the
Province Address amplifying the imperative of an integrated infrastructure
development which compels us to develop a comprehensive Provincial Integrated
Infrastructure Plan. The development of the plan is well on course.
Successes and Challenges
Honourable speaker
The past financial year posed challenges and equally registered significant
successes that include amongst others, the following:
* Accelerating implementation and improving co-ordination of the Expanded
Public Works Programme (EPWP);
* The first province to align and implement the Construction Industry
Development Board (CIDB) Regulations;
* The first province in issuing route-based operating licences as part of the
Taxi Recapitalisation Programme;
* Enhanced management of Government fleet enabling the reduction tariffs;
* The EPWP skills development component has registered learner-ship programmes
having reached 146 learners.
* Adopting, implementing and populating an organisational structure designed
towards accelerated service delivery.
Despite the successes registered the Department is still confronted with
some challenges encompassing the following:
* The ability to implement an accelerated broad-based black economic
empowerment (BBBEE) in a targeted, biased and sustainable manner;
* To provide a road and transport infrastructure system that will inspire an
enabling environment for socio-economic development;
* The promotion and integration of rail in our transport system;
* Sustainable and transformed property portfolio;
* Enhanced service delivery to client departments;
* Traffic management system that promotes law enforcement, visibility and
preservation of road infrastructure;
* Security management that promotes the safeguarding of state assets.
Mr Speaker
We will use this occasion of the budget vote to reflect on progress made on
the commitments made last year and to set priorities for the new financial
year. This exercise will underscore the theme of infrastructure development as
a key driver of economic growth and development. As the lead department in
infrastructure delivery, the Department of Public Works, Roads and Transport,
has a duty and active role to play in giving a practical and concrete meaning
to this theme.
The 2006/07 Budget
Honourable Speaker, Iâm honoured to table our Departmentâs appropriation of
R1,06 billion. This represents a 19% increase compared to last yearâs budget.
However, it should be noted that pressures are still experienced relating to
the roads infrastructure and the recent torrential rains have increased this
backlog. This increase in our budget has been largely inspired by the strategic
emphasis placed by Government on infrastructure development through public
expenditure as encapsulated in the AsgiSA and the FSPGDS.
Whilst the increase is welcomed, we must hasten to indicate that the
budgeted amount is still inadequate for meeting our infrastructure needs
arising from poor and racially inspired development planning of the past. The
increased traffic volumes that pass through our province due to its central
location have significantly contributed to the rapid deterioration of our roads
infrastructure.
In an attempt to ensure that we receive value for money, we are employing
prudent measures in spending our limited resources. Our bias in deploying our
resources will be in areas that contribute to infrastructure development.
Administration and Service Delivery
During this financial year we will advance the process of reorganisation and
improving our capacity even further. We will enhance our capacity in all our
components; both line function and support service functions. We have already
filled the majority of strategic posts for fulfilling our mandate of leading
infrastructure development and efficiently delivering the important services we
render. We will accordingly continue filling important positions in our new
structure.
During the past financial year, we filled critical vacant posts in an
endeavour to reinforce our capacity and improve service delivery. It is also
pleasing to note that 53% of those recruited last year were females. Gender and
disability mainstreaming will be reflected not only in our vision, policies and
programme; but also in our composition. A restatement of this tenet of our
democracy is profound in this year of the 50th anniversary of the Womenâs March
to the Union Building.
The capacity improvements and reorganisation we are effecting to the
department are all aimed at enabling the Department to execute its mandate,
which we articulate through our eight key strategic thrusts, namely:
* To improve the image of the Department
The Department will dedicate R15.3 million in 2006/07 towards skills
development. We will, in conjunction with Free State Training and development
institute, further education and training (FET) colleges and other institutions
of higher learning, skill our employees for improved and accelerated service
delivery. R1.6 million will be dedicated to skills development for improving
services at registration centres, in line with Batho-Pele standards R2 million
will be invested in scarce skills to provide for the efficient delivery of
infrastructure.
R4.7 million will be invested in construction-related training, inclusive of
adult basic education and training (ABET). R2.4 million is earmarked for the
re-training and re-skilling of law enforcement officers at the Lengau Traffic
Training College in Bloemfontein.
* Effective implementation of EPWP;
* Ensure the effective provision integrated infrastructure development;
* Good governance and people development;
* Ensure the provision of integrated public transport;
* Improving service delivery;
* Effective asset and property management and investment;
* To promote economic development through co-operative governance and Public
Works.
Honourable Speaker, Public Works serves as a catalyst in achieving the goals
and objectives as enshrined in the FSGDPS. Key in this will be the Departmentâs
effectiveness in driving economic growth through infrastructure
development.
To reinforce and consolidate our capacity as an infrastructure service
delivery arm of Government, we are improving our capacity particularly in the
following competencies: planning (architects), civil, electrical and mechanical
engineering, works inspectors, project management and quantity surveying. The
strengthening of in house capacity will enhance returns on investment as
savings could be utilised for capital projects.
In partnership with the Provincial Treasury, we will implement the
Infrastructure Delivery Improvement Programme (IDIP), which is a change
programme established to help create capacity for improved and fast-tracked
infrastructure service delivery. This programme seeks to address inadequate
delivery capacity and skills, while simultaneously deploying best practices and
methodologies through flexible tools that can be adapted to and are project
specific.
We are engaged in efforts aimed at improving our planning and execution
cycle for all infrastructure projects. For 2006/07, we will ensure that our
services to client departments and communities are improved and accelerated by
embracing and implementing IDIP principles and strategies in developing,
implementing and monitoring our service delivery plans. The Department seeks to
render uncompromisingly improved services towards the construction and
revitalisation of hospital projects, school building and maintenance projects,
libraries, upgrading of museums, one stop child justice centres and renovations
and upgrading of resorts as identified by client departments in their various
budget votes. Our on-going engagements and consultations with client
departments are on course and various implementable service level agreements
have been reached. Speedy access to social infrastructure is what our
communities are yearning for. And the Department commits itself to respond with
the much needed urgency to this clarion call.
Speaker, we have set-aside 40% of maintenance, upgrading and capital budget
for the promotion of the BBBEE objectives and all the identified projects will
be EPWP compliant. The implementation of an incubator strategy to promote the
development of sustainable contracting enterprises owned and controlled by
Historically Disadvantaged Individuals (HDIs) with particular bias to women,
youth and people with disabilities will be meticulously implemented.
The purpose of the incubator programme is to create an enabling environment
within which selected existing contracting enterprises can develop into
sustainable contracting enterprises. Preference will be applied in the
accessing of work so that enterprises owned and controlled by one or more HDIs
are advanced. Women, youth and the disabled as well as geographic spread will
receive a bias. The bulk of public works projects range between R1 million to
R5 million and this leverage will enable us to implement the incubator
programme though where possible will extend to higher values.
The enabling environment should comprise of two elements:
* Steady access to work opportunities achieved through sourcing suppliers on
Incubator-designated projects from the Incubator Supplier Register. This will
also be achieved to some extent by concentrating development efforts on a level
of contracting enterprise that can operate in the sustainable R1 million to R30
million range market identified (categories). The number of players in the
market place can be expected to be in line with the number of
opportunities.
* Supply side measures for the support of growing enterprises through a
structured mentorship-centred enterprise development programme with improved
alignment of institutional support structures.
The Construction Empowerment Charter, which was signed on 17 March 2006,
constitutes an important tool and framework for the transformation of the
industry to address the following BBBEE elements: ownership, control,
employment equity, skills development, procurement, enterprise development and
corporate social investment. We will therefore drive and monitor the
implementation of this important Charter in the province.
The Provincial Land Administration Act obliges the Department to diligently
manage and safe-guard all state properties entrusted upon the Department.
During this financial year, the Department will train and re-skill all the
security staff to ensure that they are adequately equipped for this mammoth
task in the endeavour to curb theft and break-ins. In partnership with the
Department of Public Safety, Security and Liaison we will upgrade and activate
all access and security networks to our Government buildings, particularly
Lebohang, Provincial Government Building, control rooms and the official
residences of public office bearers.
Roads Infrastructure
Honourable Speaker, Roads represent the single largest increased allocation
of this budget vote. This is partly due to huge backlogs and the potential
roads posses in contributing to building an efficiently operating economy. This
is also informed by the FSPGDS priorities and the infrastructure summit
directives. Roads network is the live wire of the provincial economy. We have
also sought to strengthen our co-ordination with South African Roads Agency
Limited so as to complement one another better.
The recent floods have also exacerbated the relatively poor state of our
roads and negatively affected our communities in various ways and thus
underscore the need to invest more in the construction and maintenance of our
roads. We have redirected our maintenance budget for emergency interventions
following these recent floods.
Construction of the following projects will be executed during the 2006/07
financial year:
* The repair of the Bridge over the Orange River at Sterkspruit;
* The construction of access roads to the Dome at Vredefort;
* Upgrade of Springfontein to Bethulie;
* The construction of access road Trompsburg to Jagersfontein;
* Upgrade and construction of the Memel Verkerkerskop;
* Koppies access road.
All our road maintenance contracts will be in accordance to the EPWP
guidelines and 50% of the road maintenance budget will be targeted at small
emerging contractors and job creation in the area of the project.
As part of the exit strategy for the Vukuphile Learnership Programme, the 56
roads learners who have completed their training will be given preference when
these maintenance contracts are awarded to ensure that road users travel in
safety as well as to ensure effective mobility within district municipalities
the following maintenance activities of surfaced and un-surfaced roads will be
executed:
* 56,300 km blading of gravel roads;
* the maintenance of the paved routes, this includes pothole repair, shoulder
repair and the milling of sections of the road which cannot be maintained
labour intensive.
We are growing our employment of EPWP principles in the construction of
roads. More needs to be done, and not only in terms of access roads and small
projects. It is important that we execute a significant shift towards labour
intensive methods within the overall public spending on infrastructure.
Expanded Public Works Programme (EPWP)
Honourable Speaker, we are encouraged that the EPWP has registered positive
results in the province. This includes both the capacity to co-ordinate and
implement that has been strengthened and the actual performance with regard to
job creation, skills development and small, medium and micro enterprise (SMME)
development. EPWP remains one of the many important programmes with regard to
fighting poverty and job creation.
In the State of the Province Address, the honourable Premier stated âAlready
10 034 jobs have been created in this programme throughout the province. We
intend to improve on this figure through better coordination and monitoring.â
She further remarked ââ¦all of the economic developmental initiatives we have
mentioned so far would by the end of this year created in excess of 50 000
jobs.â
In partnership with our sister-departments we will work tirelessly to
achieve this target. We will seek to massify the labour intensiveness of all
our projects in an attempt to achieve the targets of long and short term
jobs.
We have established coordination mechanisms in each of the four EPWP
sectors, namely: infrastructure, social, environmental and economic sectors.
Four Sector Co-ordination Committees, each comprising of relevant departments,
have been established. Progress has already been registered in the
implementation by these sector committees. An EPWP Provincial Business Plan and
the Sector Implementation Plan were also drawn up and implemented after
submission to the Executive Council.
Through closer working relations with the Department of Local Government and
Housing we will further strengthen our coordination with municipalities in
implementing EPWP in the Municipal Infrastructure Grants (MIG). The
implementation of the Infrastructure Contractor Learnership Programme is one
area of mutual involvement with local government. This learnership is being
implemented in the following municipalities:
* Letsemeng Local Municipality;
* Mohokare Local Municipality;
* Mangaung Local Municipality;
* Moqhaka Local Municipality, and
* Setsoto Local Municipality.
With regard to adherence to EPWP guidelines, we take comfort to place on
record that through our sections of EPWP, Roads and Public Works, we have
realigned all departmental contract documentation for civil and building works
in accordance with the Construction Industry Development Board (CIDB) Standard
for Uniformity in Construction Procurement Documentation and the EPWP
Guidelines for Labour Intensive Construction Projects. This met the policy
requirement made in the previous yearâs commitment that âall procedures and
processes that relate to the execution of projects are being reworked to meet
the EPWP Guidelinesâ. This is also aimed at massification of the impact of EPWP
through large scale projects.
Property Management
Honourable Speaker, historically, property was viewed as a right only for
certain sections of the population whilst black people were denied access
through the Native Land Act of 1913 and the subsequent discriminatory policies
and legislation. Black people continue to be significantly underrepresented in
ownership of property, whilst administrative and financial constrains restrict
the ability of black people to participate in the property market, with black
women and youth being the worst.
The adoption of the Property Charter two weeks ago was, certainly, a
defining moment in the process of transforming the property sector to serve
all. It has therefore created a framework within which thorough going
transformation of this sector has to unfold. As government we continue to play
a catalytic and decisive role in the unfolding transformation of the sector.
This we do utilising our property portfolio. In the past financial year we
gradually increased the number of office accommodation rented from black
people.
We employed service providers to establish a Credible Asset Register.
Information for the compilation of the Asset Register has been obtained and
verified with Deeds Office. Mention should be made that the number of
properties that the Provincial Government has on its records has substantially
increased after the verification process.
The national land disposal framework is currently under consideration. This
policy framework once adopted will go a long way in the transformation of the
property industry. As the province we would take solace from the much awaited
tool to change the property patterns.
Mr Speaker, in line with the transformatory agenda espoused by the property
charter, the Department will direct 30% of our rental budget and 50% of our
disposable immovable property to the historically disadvantaged giving impetus
to the objectives of the charter.
Public Transport
Honourable Speaker, the subsidised bus contract of Interstate Bus Lines in
the Motheo area has been extended for five years with a two year renewal
option. The conditionality of empowerment will see the inclusion of taxi
operators and small bus operators in the terms of the extension. A task team
comprising of the Department and the national Department of Transport will
develop a roll-out plan.
The Maluti Bus Service in the Thabo Mofutsanyane area was conditionally
extended for two years. This extension will allow the department to implement
the decision taken in 2002 to include small bus and minibus taxi operators in
service provision. This process was confronted with some challenges which we
are currently dealing with in the Department.
In compliance with the Taxi Recapitalisation Programme requirements, we
successfully formalised the provincial taxi industry by registering all taxi
operators as well as local associations. This programme has effectively reduced
the number of conditionally registered associations from 79 to 49, making it
more manageable and enables effective co-operation and co-ordination. We will
continue to engage all to understand the significance of the government
programme. I wish to commend the provincial South African National Taxi Council
(SANTACO) for providing leadership in this regard.
Whilst the province has made remarkable progress in the taxi
recapitalisation process, the conversion period has been extended to 31 May
2006 to ensure that all participate in the process without exclusion. The
Department will be conducting workshops for taxi operators in all five
districts in the Province.
A restructured business plan was submitted to the (national) Department of
Transport for the construction of the inter-modal facility in Bloemfontein.
This facility will represent an important development in the transport
infrastructure in the province and also position the Province better for the
2010 World Cup.
Honourable Speaker, the October Transport Month we had last year sought to
put at the centre of public discourse the imperative of a reliable, safe,
affordable and efficient public transport in our country. In this way we
intended to asses, together with all stakeholders and the broad public, the
progress and challenges towards the realisation of our vision of public
transport. We were able to highlight the necessity to champion the speedy
development of public transport services and infrastructure. We contributed in
raising awareness about the important role and benefits of public transport in
the economy and in society. Together with the municipalities we will
accordingly declare public load and off-load facilities in keeping with the
public transport infrastructure demands.
Traffic Management
Honourable Speaker, in our quest to ensure safety of our road users, we
successfully recruited and trained 179 new law enforcement officers. This has
gone a long way in increasing our presence on the roads and has already borne
some positive results in the reduction of fatalities on our roads, particularly
this past festive season, as part of the Arrive Alive Campaign.
Our added staff complement has registered progress with regards to the
reduction of long waiting periods for learners and drivers licences which
impact negatively on the employability of job seekers. Despite interventions
made, there is still room for significant improvements and we will endeavour to
increase working hours and days to ensure that the job seekers and all
potential drivers are assisted timeously.
We will accelerate the process of multi-skilling of our traffic officers to
facilitate increased law enforcement amongst others to weed out overloading,
eradicate un-roadworthy vehicles, increase and improve revenue collection, road
safety and traffic control systems. Our renewed emphasis in partnership with
the department of education will be focused on the scholar patrol and road
safety for learners. This, Mr Speaker, will help to inculcate a culture of
safety and tolerance on our roads. I must warn all truckers who intentionally
and deliberately do not use the trucking facilities as provided. Failing which
drastic law enforcement measures will be invoked.
We will intensify our fight to uproot fraudulent and corrupt practices
within the system by officers and members of the public. These actions not only
undermine our efforts for quality service delivery but perpetuate accidents and
fatalities on our roads.
In conclusion, we do recognise the speed with which we have to implement the
programmes we have highlighted in this budget vote. We remain convinced that
such an implementation will make a major contribution in improving the
conditions of our people, particularly the poor in both the urban and rural
areas of our province.
Honourable Speaker, I wish to commit the Department to the following without
fail:
* Improve and accelerated payments to contractors and service providers
within stipulated time frames;
* The implementation of the BBBEE principles and objectives are not negotiable
and the Department will soon announce our reviewed measurable targets;
* The robust implementation of a sustainable Incubator Strategy;
* Accelerated and sustainable transformation in the Property and Construction
Industries;
* Efficient, effective and quality delivery of integrated infrastructure;
* Enhanced co-operation and consultations with client departments and other
stakeholders;
* Increased focus on revenue collection and generation initiatives;
* The development and implementation of an integrated transport system in the
province.
Honourable Speaker, Budget Vote 9 for the financial year 2006/07 is hereby
tabled.
I thank you.
Issued by: Department of Public Works, Roads and Transport, Free State
Provincial Government
27 March 2006
Source: Free State Provincial Government (http://www.freetrans.gov.za)
