Chapter 1: Two-and-a half years of democractic government
Chapter 2: The state of the nation
Chapter 3: Government's programmes
Chapter 4: Reports submitted by ministries and departments
The foundation for a better life has been laid
1997
Chapter 1: Two-and-a-half years of democratic government
In voting for a better life for all, the people of South Africa set the government a mandate with three broad and interrelated goals:
- establishing legitimate Government that is democratic and an effective instrument for change
- nation-building and reconciliation
- reconstruction and development.
Through reconciliation and nation-building, we have prevented a bloody civil war. Together with firm action, this has reduced political violence to a minimum. Today we are proud not only to have turned our back on a terrible past, but the new nation has started to take root in all spheres of life, including sports, the economy, and the fight against crime.
The economy has been turned decisively around: today, about 20 mega-projects each costing more than half-a-billion Rand or more are operating or under construction in Richards Bay (Alusaf), Saldanha Bay (Iscor), Port Elizabeth and elsewhere; and many are to start in Mpumalanga along the Maputo Development Corridor, in the Eastern Cape, Northern KwaZulu-Natal and the Northern Province.
There is a massive increase in exports and markets have opened for our entrepreneurs world-wide, with more opportunities than we are able to exploit. From negative growth, the economy is in a long-term upswing; foreign direct investment has tremendously increased compared to the period before 1994. A partnership has been forged between business, Government and trade unions, reflecting the shift from the intense conflict of the past.
We have turned the corner in so far as programmes to uplift people's conditions are concerned. Since 1994, we have started many impressive projects such as school feeding, free health for pregnant mothers and children, water, housing subsidies, infrastructure and services. But the main emphasis in this period had been on planning and setting up the machinery for delivery.
Today, particularly with democratic local government, communities throughout the country are beehives of activity. Away from national media coverage, streets are being tarred, refuse collection being improved, schools being renovated, clinics being built and upgraded and housing projects being started.
No one can challenge the fact that on all the major questions that South Africa has to address, this Government has the best possible policies and strategies and laws for our needs. But now the challenge is not just good policies - we have these. The foundation has been laid, and the phase that we are getting into is one of emphasis on implementation and clearing any problems that we find on the way.
This booklet is aimed at reporting to the citizens on the progress made and the difficulties experienced in fulfilling the Government's mandate. It also briefly outlines the concrete projects the Government will implement in 1997 and beyond.
February, 1997
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Chapter 2: The state of the nation
Opening address by President Nelson Mandela To the fourth session of Parliament, Cape Town, 7 February 1997
Madame Speaker and Deputy Speaker of the National Assembly;
Honourable Chairperson and Deputy Chairpersons of the National Council of Provinces;
Honourable Members of Parliament;
Distinguished guests;
Ladies and Gentlemen:
A new year is upon us, once more affording us the opportunity to account in a comprehensive manner to the citizens on the awesome responsibilities they have mandated us to fulfil.
All of us, in the executive and legislatures, the majority party and Members in the opposition benches, are called upon to outline practical programmes to improve the nation's quality of life.
Again and again over the past year, the people showed remarkable commitment to the country's well-being. They took advantage of resources offered through RDP projects. They turned adversity into opportunity in the export market. They excelled in international sporting events, including the Olympics and Paralympics. And they joined hands to raise awareness around crime, and actually to work together to combat it.
In practical action, a new nation is being forged; a nation whose New Patriotism and sense of pride derive not only from ideas in our hearts, but also from concrete progress made in improving the well-being of all.
Our task is to mobilise all our people, to create more and more opportunities, to ensure that the citizen's potential is given the fullest expression. We have to do this and more, sensitive to the feelings of the majority and the minority, the haves and the have-nots, those who have the media to communicate their ideas and those deprived of such resources.
We can all derive pride from the fact that we took a historic step in this direction last year through the adoption of the new constitution: the basic law of our land reflecting the nation's yearning for a rising quality of life, in circumstances of democracy, peace and respect for human rights.
In a sense this is the first session of the new parliament.
And allow me to take this opportunity to welcome members of the National Council of Provinces, the living embodiment of co-operative governance. Their presence here already starts to redefine relations between government and the people: not abstract national or regional or local people, but South Africans, requiring and deserving of the highest professional service from their elected representatives.
Last Friday, I had the honour to thank our erstwhile Senators for their service to the nation. I wish to reiterate that today.
At the same time as they infused the debate in these chambers with their unique knowledge and expertise, they were also pioneers at an important moment of creation, the culmination of which is national parliament as we have it today.
The major restructuring of parliament represented by these changes epitomises the maturing of our democracy. Of no less significance is the process that led to the adoption of the constitution: including mass involvement on the one hand, and the meticulous approach of the Constitutional Court on the other. With each major judgement, this Court grows in stature and places our democracy on a higher pedestal.
Co-operative governance and the New Patriotism also mean a loyal opposition: an opposition that opposes, but remains loyal to the constitution; an opposition that takes part in the major national programmes to reconstruct, to develop, to reconcile, to improve South Africa's standing in the world, to enhance business confidence, to put shoulders to the wheel in the fight against crime: in brief an opposition that takes full part in the efforts to build a better life for all.
We are encouraged that all parties in this chamber have committed themselves to this national consensus.
Through the new constitution, we have laid the foundation for a peaceful and prosperous nation. But it is just that: a foundation. And it will not amount to much if its provisions are not felt in the daily life of our people.
We must and will popularise the constitution. But, above all, we need to act together to implement its provisions.
We can take pride, Madame Speaker, in the fact that, as we enter the last half of this government's mandate, in ail matters of governance, we have laid the foundation to move even more speedily to our nation's goals.
We enter 1997 with all but one locality in the whole country enjoying democratic local governance. The completion of this process during the course of last year was significant not only in the peaceful manner in which it was conducted, but also because a new corps of leaders has emerged, in close touch with the people and steadily but surely starting to make an impact on their lives.
To improve the food security and nutrition of at least the most indigent of the population, projects which amount to R400-million and reaching over a million people were undertaken last year. The Primary School Nutrition Programme now benefits more than 3-million children. Programmes to develop new farming entrepreneurs, to return land to communities and resettle others, and to start tenure reform are starting to change the face of our countryside.
Over 700 000 people have already been supplied with water, and projects are under way which will affect over 6-million citizens.
After two years of preparing the ground, the national housing policy is now fully operational. Today, more houses are in production than at any other time in South
Africa's history. Millions now enjoy the benefits of electricity.
Arguably, nowhere else is the fact of democratic transformation felt more keenly than in the area of universal access to health facilities. The building of clinics and hospitals, the immunisation programme and the beginnings of a new drugs policy - all these and more are practical and new qualitative steps that have transformed the majority of South Africans from being neglected outcasts into beneficiaries of a compassionate health policy.
During the course of last year, by dint of hard work by the health ministry, the efforts of relevant community-based organisations and, ironically, the debates around one famous play, the campaign against AIDS was more visibly put on the national agenda. Indeed, it is in part because of South Africa's efforts, that we were invited to take part in the UNAIDS meeting in Davos, Switzeriand just this week.
For the first time in South Africa's history, citizens are starting to benefit from integrated human resource development represented by a non-racial education system, life skills training, financial support to students in tertiary institutions, supply side measures in industry to promote training, and a sports programme based not only on the promotion of healthy lifestyles, but also on constructing facilities in areas that were hitherto neglected.
Madame Speaker;
With the estimated 3% growth during the course of last year, the South African economy has turned the comer towards consistent expansion. Beneath this figure, which is of course less than what all of us would prefer, are strong signals of a robust industrial revolution in the making.
This is reflected in the many mega-projects with investments of more than half-a-billion Rand each, a phenomenal growth in fixed investments and improved capacity utilisation in enterprises. The physical volume of production is on a steep rise and so are our manufactured exports. The potential of the tourism industry has started to manifest itself; and in the overall, our balance of payments has started to improve.
We are heartened by the fact that small and medium enterprises can today boast of a government that not only promotes their interests; but one that has in place the structures, the procurement policies and the will to allocate resources to this sector. Be it in the housing programme, the building of roads, the school nutrition programme and public works projects, these entrepreneurs are gradually becoming a critical part of the economic mainstream.
We are confident that the new labour relations legislation, so painstakingly set in motion during the course of last year, will improve the management of this important area. Although no one piece of legislation can be a panacea to our deep social problems, this new regime should temper conflicts at the workplace and help strengthen the partnership between business and labour in national development.
Despite exchange rate pressures, our fiscal and monetary authorities have performed extremely well to ensure that we meet the targeted budget deficit and improve the management of government finances.
In brief, great progress is being made to implement the Growth, Employment and Redistribution strategy, itself an achievement in integrated planning introduced last year.
Another such achievement, which is starting to make a difference, is the National Crime Prevention Strategy. Despite the difficulties, despite the fact that such achievements mean little to those who still experience crime, the fact of the matter is that the offensive is on, particularly with regard to most priority crimes. Government is confident of making further progress in the fight for safety, security and stability.
In this regard, the role of the intelligence services deserves special mention. These brave policemen and women and intelligence operatives have made a critical contribution behind the scenes to the success that we have started to register.
We pay tribute to all these dedicated citizens who quite often put their own lives in danger so that we can all lead safe and secure lives.
Indeed, Madame Speaker, we have laid the foundation for a better life.
This is what the Reconstruction and Development Programme is about. The RDP is alive and well. It is not merely a sum of projects but an integrated national programme to improve the nation's quality of life.
But we would be less than candid if we did not acknowledge our shortcomings.
Firstly, because of capacity constraints, some projects could not be undertaken. For instance, a number of provinces have barely spent the funds allocated to them for housing and building of classrooms. It therefore does not make much sense to our people, for us to decry the debt burden and lack of resources while we are unable to utilise even what we have.
Secondly, ordinary citizens continue to complain about practices that have not changed in many government offices. Corruption, including the endemic problem of so-called "ghost workers" inherited from the past, continues to bedevil the civil service.
Thirdly, the growth achieved last year was not sufficient to absorb entrants into the labour market.
Lastly, there are increased reports of crimes such as child abuse, rape and domestic violence. In some instances, offenders easily elude our criminal justice system because of a fragmented and ridiculously backward data base.
We can list other examples, not to create despair; but because we are determined to address these shortcomings. This will be a major area of focus in our programme this year.
The primary consideration in this programme is the citizen. For, we can peddle figures of billions allocated to any project; but the question is whether the funds have been spent, and how they have benefited the citizen The people come first; and our models, strategies and plans should be measured by this yardstick.
In a nutshell, the weaknesses we have identified boil down to three things: cooperative governance, management and capacity-building.
In so far as local government is concerned, there is nothing as urgent and as critical as the training of councillors. Their ability to raise funds and manage them, to play their role in the multi-billion housing and infrastructure programmes, to attract investments, to deal with distortions of the apartheid era, and to work with communities in a partnership for development are skills that should be built more intensively this year.
At the same time, amendments will be introduced to the Local Government Transition Act to help stabilise local government finances. While provincial and national government will step in to assist where practicable, progress in this regard will depend on the Masakhane effort to build co-operation between communities and their local representatives.
Closely related to the issue of local government is the matter of traditional leaders. In a number of areas, the social fabric of communities has suffered because of conflict between elected structures and traditional authorities. We will this year intensify interaction with this institution, and we hope to launch the National Council of Traditional Leaders within three months.
This year, in keeping with the spirit of the new constitution, some of the recommendations of the Finance and Fiscal Commission, and consultation between national and provincial structures, a large percentage of the national budget will be allocated globally to the Provinces. This step implies greater responsibility and accountability on the part of the Provinces.
Intense discussions are taking place between national and provincial executive structures. In these consultations, the vexed questions of national minimum standards, national priorities, national norms in spending and a rigorous common system of finance management are being thrashed out; and we are confident that there will be no major hiccups.
In the final analysis, the question is not so much technically what powers and rights this or the other sphere of government has; but what service we can perform and how well we should co-operate in meeting the mandate of building a better life for all.
Closely tied to this is the question whether we are making any headway in transforming the civil service to become a public service in fact.
I wish to congratulate the staff at all levels for their efforts during the trying times of transition. We had to land running. And because significant achievements were made in social delivery, an impression was created that we had found in place a civil service ready to implement the new policies.
From the experience of the Presidential Review Commission, it is quite clear to us that, while work on long-term restructuring of the public service should continue, immediate practical actions are required to speed up the transformation.
From the investigations that the national ministry is conducting in the Provinces, Task Teams will be sent to deal with such weaknesses as personnel records, management of finance, strategic planning and prioritisation, information technology and labour relations.
What may seem simple and straight-forward are precisely the things that require thorough attention. Without this, the danger is as stark as it is real: that we shall not be able to meet the challenges of transforming society.
The Green Paper on Service Delivery has been drafted and the aim is to have legislation in place as soon as is practicable.
At the same time, it has become critical to examine the question of government services which can easily, more cost-effectively and more efficiently be undertaken outside of government. This has to be done with sensitivity, with the interests of the citizen at the centre of our considerations.
I wish to assure the civil service that all these changes will take place on the basis of consultation. The historic agreement reached last year on a new salary and grading system is still in place. Like with all agreements, there were conditions applying to both sides, and government will strive to honour both the spirit and the letter of the agreement. If and when a review is required, this will be pursued on the basis of negotiations.
Indeed, if we do not restructure the service, it will be difficult, if not impossible, to build on the foundation that has been laid.
We shall have good plans and even the resources to carry them out. But we shall year-in and year-out be saddled with unspent funds, terrible services and millions siphoned off in corrupt practices, in callous disregard of the most vulnerable sections of society.
Madame Speaker;
The challenges in the areas of safety and security derive also from similar weaknesses.
We need to ensure that when a crime has been prioritised, that emphasis is felt throughout the whole criminal justice system. We should this year establish a comprehensive data base, improve the witness protection programme, empower victims and introduce a new style of work with clear delivery targets and deadlines which must be met. We are also putting in place proper mechanisms of co-ordination among the police, the intelligence community and the prosecutors particularly on crimes that are a national priority.
Further, within the framework of our commitment to the culture of human rights, government is grappling with the issue of bail and appropriate sentences for such serious offences as rape and murder associated with robbery. Legislation on these issues is being drafted. This is being done along with practical measures to improve the investigative capacity of the police.
Let me warn the criminals, especially the car hijackers, the drug syndicates, those who smuggle weapons, corrupt personnel in the criminal justice system, the rapists and child abusers and those involved in taxi violence: we will continue to escalate the offensive against them; we will make their life really difficult this year.
Many of them have been identified and we have examined the ways in which they have been evading the law. We are closing in on them; and we shall demonstrate convincingly that, in our young democracy, crime does not pay!
In the near future, we shall complete the investigation and take steps to cut the number of commercial entry points into the country, including some odd so-called international airports. it is quite clear that the careless attitude of the days of Third Force destabilisation and sanctions-busting is not only providing a heaven for criminals, some of whom were part of these networks; but it is also plainly and simply a threat to national security.
However, when ail is said and done, success depends on our whole society adopting a new value system. For, in many ways, by buying stolen goods, conniving with unscrupulous business-persons to evade tax, allowing criminals to lord it over communities, we do become our own worst enemies.
We also become our own worst enemies by co-operating with forces which commit crimes such as murder and destruction of property, in the name of campaigning against gangs and drugs. We must mobilise against crime yes; but as partners in a law-governed society that respects our legitimate government and other citizens; a law-governed society that does not tolerate illegal occupation of land and houses.
As a result of the tireless efforts of the police, the intelligence community, the national defence force as well as the affected communities and political, religious and business leaders, we have all but eliminated political violence. For this, all these sectors and others must be commended.
Yet with the kind of timing, selection of victims and political rationalisation that are bizarre in the strictest sense of the word, some individuals decided a few weeks ago to use bombs to challenge our democracy. We have examined these dark clouds and we are certain that the storm they threatened to bring has been averted.
Let me reiterate that there is no reason at all for any of our citizens to seek redress through violence. The avenues are there in the constitution and the structures it sets out for airing grievances. It will be the height of folly for anyone to seek to provoke the patience of a people who have elected, against their own deep emotions, to forgive and to reconcile. For their retribution will be decisive and telling.
Honourable Members;
Let me take this opportunity to commend the Truth and Reconciliation Commission for the magnificent work they are doing to realise their mandate. We did not expect their work to be easy. And we are struck by the impact they are making on the national psyche, for theirs is a process that hurts as much as it cleanses.
We are confident that they will be able to meet their deadline; and we hope that the recent decision they and the Freedom Front persuaded us to take on the amnesty deadline will assist in their work. In this regard, and in the interest of an inclusive process, I take this opportunity to place before parliament the recommendation that the cut-off date for amnesty be extended to 10 May 1994.
As it inches towards the truth, the TRC is helping to seal the coffin of a heinous system and to unearth what remnants of the old networks that may still be burrowing in our midst. It is helping to consolidate our democracy; and thus to complement the magnificent work of the Public Protector, the Human Rights Commission and other such institutions.
Another set of institutions critical to the advancement of our society are the Youth and Gender Commissions. We are confident that the Youth Commission will this year start to make its presence felt throughout society, promoting the interests of this precious asset to our nation.
After considering recommendations from parliament, I have accepted the names put forward for the Gender Commission. I wish to congratulate the Chairperson, Thenjiwe Mthintso, and the other Commissioners-designate whose names will be made known in a media statement during the course of the day.
Let me also take this opportunity also to welcome the new Chief Justice of the land, Ismail Mahomed; and to assure him and the judiciary that we shall promote their independence and do our bit to make their work easier.
Madame Speaker;
We have earlier noted the progress in the implementation of our socio-economic programmes.
During the course of this year we shall further speed up the process of practical implementation. South Africa must become a beehive of communities acting to change their lives for the better.
The nutrition programmes we referred to earlier should reach one-and-a-half million people and a further 2 million school-children. Close on to two-hundred thousand housing units are in line for construction.
18 agricultural ventures should be completed this year to develop new farming entrepreneurs. A further 1 ,7-million people will benefit from the water and sanitation programme; and over two-hundred thousand destitute people in rural areas should be allocated land on which they can live normal lives. More public works programmes will be undertaken especially the rural areas, and the Bill on secure tenure rights should be adopted this year.
I wish to reassure the commercial farming sector that these measures, as well as the proposals on water rights, will be pursued in a manner that does not undermine an industry which is so critical to the nation's food security and exports. At the same time we all know too well that long-term security and productivity in the country-side depend primarily on the upliftment of poor rural communities.
This year, more than 500 clinics will be built or upgraded, and the construction of at least 7 hospitals should commence. We aim in this period to decrease the national backlog in devices for the disabled by 60%; and we will strive to achieve an 80% cure rate for tuberculosis by 1998.
In line with the South African Schools Act, we will start implementing provisions relating to compulsory attendance, a code of conduct for teachers and students and national norms for funding.
A White Paper on Higher Education should have been introduced by the end of the year; and we hope to reach the same number of students with the financial aid scheme as this past year. It should be emphasised that the basic criterion to determine continued assistance will be academic performance.
The restructuring of the welfare system has begun. We will ensure speedy implementation of the decision to attain efficiency, resolve the problem of corruption, and bring more focus on those in acute need, especially unemployed mothers with children under five.
These are just examples of some of the programmes we are committing ourselves to. Within the departments responsible for these programmes, the process of reorienting spending and costing plans on a medium-term basis will continue.
Related to this is a delicate balance that needs to be struck between two extremes: On the one hand, our tender procedures are either not suitable to current needs or they are at times so rigidly applied as to become a break on implementation. On the other hand, there are instances where individuals in authority have ridden roughshod over these procedures, leading to unauthorised expenditure.
These procedures need to be reviewed, in line with the demands of transformation.
The confidence we have regarding these socio-economic commitments derives from the fact that our economic fundamentals are sound. This has given us a firm base from which to achieve higher and sustainable rates of growth and development.
The government's programme to facilitate this positive trend is guided by the critical sign-posts identified in our macro-economic strategy, namely, growth in production for export, infrastructural development, restructuring of state assets, reduction of the budget deficit, human resource development and a comprehensive labour relations dispensation. Critical in all this, is to create jobs and ensure equitable redistribution of wealth.
Our programme this year includes the implementation of the Maputo Development Corridor Initiative in terms of road construction and the other industries, big and small. Similar initiatives will be launched in KwaZulu/Natal and the Eastern Cape.
Investigations are being conducted in the Northern and North-western Provinces; and in all these projects, great care will be exercised to allocate a given percentage to small contractors.
In Cape Town, Johannesburg and Pretoria, Metropolitan Development Initiatives will be launched combining industrial hubs, housing and community centres, roads and other infrastructure. Through these initiatives, we shall start to fundamentally reverse apartheid planning: ensure that workers stay close to their workplaces, and that the racial divide in residential areas is done away with.
The municipal infrastructure programme will see to the implementation of over a thousand projects costing more than a billion Rand; and the gigantic programmes in the telecommunications industry will start to change the lives of millions.
In order to encourage changes in production methods and improve skills training and technology usage, a number of incentives will be put in place during the course of the year. And the tax holiday initiative has become fully operational.
A range of promotional measures and diplomatic initiatives will be undertaken to facilitate exports. At the same time, significant progress is being made to tap foreign capital, as the true potential of the country becomes more and more apparent abroad.
All these elements of our industrial revolution will go a long way to create jobs, and we should start, slowly but surely, to reduce the army of the unemployed.
The macro-economic strategy identifies the restructuring of state assets as a critical part of our programme, to attract investments and technology, ensure efficiency, guarantee affordable prices and reorient state assets towards the goals of reconstruction and development.
In a matter of months, besides the mammoth task of general restructuring, Telkom will acquire a strategic equity partner, and SunAir and Aventura will be wholly privatised. The Airports Company and Safcol (in forestry) should complete their bidding processes this year. Alexkor (in diamond mining) is also being attended to. South African Airways and Autonet should have completed their restructuring processes by the first half of 1998: and intense discussions are under way in Transnet to address these and other subsidiaries.
All these steps will be taken in full consultation with all role-players; and I wish to urge both management and workers to respect this principle.
Our nation should be proud of a trade union movement that has taken active part in the major national debates, and along with business, started to realise co-operative relations in the workplace and in NEDLAC.
But yet on both counts, the trade union movement faces the challenge of unity across racial lines, taking advantage of the opportunities that have opened up and adapting fully to the challenges of the current phase. On the other hand, business has a long way to go with regard to such issues as equity in the workplace and reorienting companies to the developmental needs of the moment.
We hope that this year, negotiations on issues of basic conditions of employment, employment equity and the vexed question of a national social agreement will reach some resolution.
As indicated earlier, we are equally optimistic with, regard to issue of government expenditure.
During the course of this year, we shall complete the plans towards medium-term budgeting, in order to bring budget allocations closer to our strategic objectives and to speed up re-prioritisation within departments. We shall also intensify efforts to improve the government's management of cash flows and eliminate unnecessary burdens on the fiscus.
I also wish to emphasise that, in our efforts as government to ensure that the nation lives within its means, we will take into account our mandate to the electorate, particularly the social requirements of the present and the future, and the benefits that will accrue from bold decisions.
The South African Revenue Service should be commended for the improvements in the tax collection system. We are however concerned that many people are not meeting their tax obligations, and as such, the tax burden is borne by too few honest citizens.
it is fair to assume that we all want the programmes outlined above to materialise; that we all want South Africa to succeed. But we must be prepared to foot the bill for success.
To broaden the tax base and break the culture of non-payment, we have offered certain relief measures which expire on 28 February this year. All persons who qualify are again urged to make use of this opportunity. Those who have not responded should be assured that, after this, will be the knock of the tax-man and woman, backed by the full force of the law.
In the overall, we are confident that we have moved into high gear in the implementation of the macro-economic strategy.
I would also like to reaffirm our commitment to the phased removal of remaining exchange controls.
We appreciate the new surge among all sectors to promote South Africa's true qualities abroad. This has already helped improve the economic environment, and, with the co-operation of all, it can only get better.
I wish to take this opportunity to congratulate the South African National Defence Force for its continuing contribution to the maintenance of our country's integrity, for the assistance it has rendered to the police in combating crime and dealing with natural disasters, and for the speed with which it has taken up the challenge to prepare for active peace-keeping tasks that we may be called upon to undertake.
The integration process and development of new doctrines have proceeded fairly well. But we cannot claim that the process has been flawless. The challenge is for the former statutory forces to embrace change and to eschew the temptation to maintain the status quo. It is for the former non-statutory forces to utilise the positions they hold to help speed up transformation and not shy away from responsibilities at the slightest hint of difficulties.
Debate will continue this year on the White Paper and the Defence Review, but what is critical is to move towards practical implementation. One of the issues in this regard is the defence force's requirements for equipment. The question here is not whether, but how to meet these requirements and how much the country can afford. As Commander-ln-Chief, I wish to emphasise that we shall not shirk our responsibility to the defence force.
We are confident that out of all these efforts we shall strengthen our unity as a nation.
But this will also depend on the ability of government to communicate clearly, coherently and professionally, as well as the preparedness of the media to transmit and interpret our actions and omissions in a professional, objective and fair manner. The government welcomes the report of the Communications Task Group and its recommendations are being processed for implementation.
As we improve South Africa's communications, including in the areas of culture, film, monuments and other media; as we mature to understand one another better, and as we join hands to improve our quality of life, we shall at the same time be building a nation ready for the challenges of the next millennium.
Madame Speaker;
Our young democracy is still grappling with the challenge of its positioning in the international milieu.
It is understandable that at times this debate will be heated and acrimonious; because it is a debate more than just about how we relate to the world. It is part of the process of defining who we are. It is part of the resolution of past divisions within South African society - divisions which informed our divergent views of the world.
Within the Southern African Development Community, the first steps have been taken towards a free trade area within 8 years. Historic initiatives exemplified by the Maputo Development Corridor are gradually going to become the norm, as we bring our collective strength to bear to meet common challenges. It is a measure of our collective destiny that even bilateral negotiations between ourselves and the European Community had to be underpinned by regional realities.
Welcome progress was made in bilateral trade arrangements with Zimbabwe, and we aim to move faster this year to complete negotiations on the Customs Union.
We were honoured last year to be elected as Chairperson of the SADC for three years; and we will continue to work to strengthen the Community and enhance its standing in Africa and abroad.
In this context, we shall continue to make our humble contribution to the resolution of the crisis in the Great Lakes Region and to assist in facilitating the peace process in Angola.
Over the past year, we strengthened our relations with countries such as India and others in Asia, Brazil and others in Latin America, Saudi Arabia and others in the Middle East.
We are all only starting to appreciate the full meaning of these relations in terms of exports, opportunities for investments and sources of capital. And evolving quietly from this, is a special relationship that is more or less natural among countries with broadly the same level of development, socio-economic challenges and interests.
How this will impact on South-South co-operation, assist in redefining the world balance of forces and enhance the unique potential of each of the countries, are matters that still require further examination.
Our commitment to the strengthening of the Organisation of African Unity is a matter of course. We also wish to congratulate UN Secretary-General, Kofi Annan and offer our co-operation as this august body restructures itself. As President of the United Nations Conference on Trade and Development, we will continue to contribute to building the bridges of co-operation between the North and the South. We shall also start in earnest this year to prepare for the next Summit of the Non-Aligned Movement which we shall be honoured to host in 1998.
In the next few days, we shall play host to the King of Sweden as well as the Vice-President of the United States of America. These visits epitomise the intimate relations we have forged across the spectrum before and since our democratic elections. Bi-national Commissions with the US, Russia and the Federal Republic of Germany, and our special relations with countries of Northern and Western Europe, Japan and others speak of the positive climate that we have, to pursue South Africa's interests, which are in many respects the interests of the majority of the world's peoples.
We shall not falter in our contribution to the resolution of conflict and promotion of peace throughout the world. In this context, and in the context of our own principles, we shall continue to approach the issue of the manufacture and sale of weapons with circumspection. And as in everything else we do, we shall always defend our right as a nation independently to take decisions.
Honourable Members;
In all areas of endeavour, we have laid the foundation for success. At work, in sport and leisure, in business and the professions, in the schools and places of worship, we are forging a resilient nation; a nation conscious of its responsibilities to itself, to future generations and to the world in which we live.
The government has got the practical programmes in place to contribute decisively to the attainment of the nation's objectives. At the same time as we intensify the implementation of reconstruction and development, we shall improve co-operative governance as well as capacity and management at all levels.
The foundation for a better life has been laid. In the spirit of the New Patriotism, we can only rise to new heights.
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Chapter 3: Government's programmes
Social service delivery
Government's programme of action is structured around its principal policy thrusts, which bring together clusters of ministries and departments in integrated action.
- Macroeconomic Framework for Growth, Employment and Redistribution
- National Crime Prevention Strategy
- Governance and democratisation.
The foundation for more rapid implementation of these policies has been laid. What does Government intend to do this year to build on this foundation?
Food security and nutrition
Alongside the immediate steps to deal with malnutrition, Government also has longer term programmes to create employment through land reform and job-creation programmes.
During 1997, we will strengthen our capacity to keep track of nutrition needs and to address them by pilot studies in 21 regions under the Integrated Nutrition Programme, and the training of 400 nutrition workers and health workers at clinic level. The National Nutrition and Social Development Programme, which reached 1,3 million people in 1996, will improve the food security and nutrition of 1,5 million in 1997. The Primary School Nutrition Programme will increase the number of children it reaches from three million to five million, and it will be integrated with community development.
Allocation of state land to black farmers will be speeded up in 1997. The programme to enable black farmers succeed as commercial farmers will include: the completion of 18 ventures under the Agricultural Sector Investment Programme, Bush Control and Soil Conservation schemes; and the establishment of rural infra-structural networks such as roads, marketing facilities, electricity and telephone services. Land reform programmes are promoting food production as well as providing a better environment for people to live in.
Housing and infrastructure
With the obstacles to delivery having been overcome, the foundation has been laid for faster and sustained delivery. About 200 000 houses are in line for construction in the coming year, mainly affecting households qualifying for the housing subsidy. This includes about 20 000 rental units, and about 3 000 units contributed by the Homeless People's Federation
The capacity of housing boards, provincial and local government, NGOs and communities to contribute to sustained delivery of housing will be boosted by legislation, by the People's Housing Partnership and by the Masakhane Campaign.
Rural housing will benefit from the Rural Housing Loan Fund. As a result of its establishment, 100 000 homes will be produced in the first five years. The living conditions of rural dwellers will also be improved through land redistribution and restitution.
During 1997, an estimated 25 cases will be finalised by the Land Claims Court, benefiting about 50 000 people, and through the land reform programme about 220 000 people will be allocated land on which they can lead normal lives. Security of tenure will be improved for millions of rural dwellers through transfer of ownership of former 'homeland' and Development Trust land and as a result of legislation to prevent unfair evictions.
The community water supply and sanitation programme will serve a further 1,7 million people in 1997 and two million in 1998. Under the R1,3 billion Municipal Infrastructure Programme, 500 projects are in the pipeline in addition to nearly 500 already completed or in progress. In the end, this programme will benefit over 12 million people with new or rehabilitated infrastructure for water, sanitation, roads, refuse collection, electricity and community health care.
The conventional electrification programme, which connected over 400 000 homes in 1996, will be extended to the same number in 1997. Rural areas will also be supplied with electricity from solar energy in a programme that eventually reach 16 000 schools, 2 000 clinics and 2,5 million homes.
Health and welfare
The health of the nation will be improved by nutrition programmes, better housing and supply of clean water. At the same time, primary health care will be further developed and improved during 1997. Close on 600 more clinics will be built or upgraded and over a hundred more mobile clinics provided. Construction will start on at least seven new hospitals.
Action to prevent disease will include the immunisation of five million children against polio and over eight million against measles. The campaign to combat the TB epidemic aims at an 80 per cent cure rate by 1998.
The programme to reduce the cost of medicines to an affordable level will be extended from the Primary Health Care level, where it was introduced in 1996, to the rest of the health system.
In a partnership of Government, private sector and NGOs, cataract surgeries will be increased by 25 per cent by the end of 1997, restoring sight to 52 000 people. In the same period the backlog in devices for the disabled will be cut by 60 per cent.
While continuing to improve the administration of pensions and grants to over two million beneficiaries, and eliminating fraud and corruption, the restructuring of the system will continue. During 1997, child and family support will be extended to people previously excluded. A new framework for Government funding of NGOs concerned with welfare will be established.
During the course of the year, the Government will introduce new proposals to ensure adequate financial provision for people's health needs.
Human resource development
Measures in the educational system; at work, and in the field of sport and leisure will all help integrated human resource development
A major campaign to restore a culture of teaching and learning was launched in February this year. The implementation of educational policy will focus on curriculum development for the country's needs; teacher development; promoting the most effective use of technology in teaching and advancing Adult Basic Education and Training and Early Childhood development. A National Task Team will be set up in 1997 to oversee life skills and HIV/AIDS training.
Implementing the SA Schools Act, passed last year, will mean putting into practice provisions for compulsory attendance; a code of conduct for pupils and teachers; national funding norms, and steps to speed up the RDP National School Building Programme.
All higher education institutions will have set up Transformation Forums by the end of 1997 - change in higher education will be further advanced by legislation and a White Paper on Higher Education to be introduced in the course of the year. The National Student Financial Aid Scheme will in 1997 again reach about 60 000 students in need of financial assistance.
A Green Paper on skills development strategy will be published during 1997 to promote expanded investment in education and training, and proposals for funding of training will be finalised during the course of this year.
The South African National Games and Leisure Activities, which started in 1996 aims to involve four million new participants in sport and recreation by 1998. During 1997 construction will begin of over 100 multi-purpose sports and recreation facilities, accessible to more than a million people.
Macroeconomic framework
By 1995, the economy had been turned from stagnation to a trend of long-term growth. However, we have to get onto a new and higher growth path to create more jobs and produce resources on a scale to meet our goals.
Transforming our economy to meet the needs of our new democracy and at the same time gearing it to take its place in a competitive world economy are the twin objectives of the Macroeconomic Strategy for Growth, Employment and Redistribution adopted in 1996.
By the end of 1996, it was clear that sound economic fundamentals were in place despite pressures on the currency. The economy again grew at 3 per cent, and the character of that growth indicated structural changes of the kind needed for sustained and faster growth.
Amongst the new trends is the role of private sector investment as the driving force behind growth and rising productivity and continued strength in export performance with improvement in the balance of payments.
A range of measures has been initiated to promote the continuation of these trends, and the process will continue in 1997.
Infrastructural development
Social infrastructure development during 1997 includes the projects referred to under housing; health care and educational facilities; municipal and rural infrastructure, and recreational facilities. In addition, major capital expenditure will upgrade our telecommunications infrastructure; develop our national water resources, and improve the road transportation network.
The programme for the year includes the implementation of the Maputo Development Corridor Initiative, in relation to road construction and other industries. Other large Spatial Development Initiatives involving investment in roads and other infrastructure as well as industrial enterprises, will reach further stages of planning and implementation. Regional initiatives include the Lebombo Agriculture/Tourism Initiative and proposals for a large port-based initiative at Coega in the Eastern Cape. Metropolitan corridors will combine industrial hubs, housing, roads and other infrastructure - the most advanced of these is the Phillipi/Wynberg Corridor in Cape Town.
Within the Spatial Development Initiatives are some of the twenty or more mega-projects - involving investments of more than half-a-billion Rand each - many of which are in progress or will be nearing implementation during 1997.
Measures to promote competitiveness and employment
There is a range of government measures to promote investment that helps restructure the economy in ways that boost productivity, competitiveness and employment. They will be implemented and expanded during 1997.
The Technology and Human Resource for Industry Programme, a partnership between industry and higher education grew fourfold in 1996. Similar expansion is expected for the programmes to support industrial innovation, technology transfer, productivity, training and better management. The joint NEDLAC/Government Cluster Initiative completed studies of six industrial subsectors during 1996, to promote competitiveness, jobs and exports. It will continue with another 15 studies during 1997.
During 1997, a Competitiveness Fund and a Sectoral Partnership Facility will be introduced as grant-matching programmes to enable firms to engage consultants to boost competitiveness through training, exports and use of technology.
Investment incentive tax measures adopted at the end of 1996 (accelerated depreciation and the tax holiday programme) will be making their impact felt, and so will Investment South Africa, the national investment promotion agency launched in February 1997.
A review of South Africa's Science & Technology system based on the White Paper adopted in 1996, will help ensure that it meets our economic needs.
Restructuring of state assets
With some major structural problems in the parastatals themselves largely overcome, restructuring of state assets will proceed at a steady pace. Following last year's sale of radio stations, 1997 will see Telkom acquiring a strategic equity partner and the allocation of 10 per cent of its shares for black economic empowerment and employees in the sector. SunAir and the Aventura recreation facility will be privatised. Further steps will be announced with regard to Alexkor (diamond mining), transport, forestry and petrochemicals.
Fiscal and financial discipline
With the Government on target for its 1996/97 deficit target, the budgetary process for 1997/98 is based on the planned 4 per cent deficit.
Far-reaching measures are in progress to improve the management of public finances. During 1997, there will be a focus on improving management information on budgets and expenditure patterns in all sectors and all three spheres of government. The newly established Expenditure Evaluation Unit will begin working with departments and the management of Government's assets and liabilities will be improved on the basis of proposals submitted to Cabinet in January 1997.
The shift to multi-year budgeting, on the basis of a White Paper to be finalised during the year, will begin with the 1998/99 budget.
National Crime Prevention Strategy
The launching of the National Crime Prevention Strategy in May 1996, represented the start of a major offensive against crime, involving much better coordination between Government ministries and departments as well as the security forces.
Political management
As part of the escalation of that offensive during 1997, there will be stronger political management and coordination of the strategy through the Presidency and Cabinet.
Criminal justice system
One area of emphasis will be the upgrading of the criminal justice system to turn it into an effective weapon against crime. Some R1,2billion is being spent on this, including R500 million of RDP funds.
Significant progress will be made during 1997 in providing the courts with the infrastructure they need, such as computers; in appointment and training of court officials; improving the investigative capacity of the police, and a more effective witness protection programme.
Work will start on a longer-term major overhaul of the criminal justice system, to create a single integrated system comprising police, court, prison and welfare functions, with a common database and information system.
Crime statistics will be continuously published and improved.
Coordinated focus on priority crimes
Another major emphasis will be on more effective coordination of activities focused on priority crimes.
Border control will be tightened by a sharp reduction in the 36 airports that currently have international status and the number of commercial road entry points. This will have a major impact on control of contraband and evasion of customs and excise duties, as well as narrowing the opportunities for syndicates involved in drug trafficking; illegal arms dealing and hijacking
Vehicle theft and crimes relating to firearms, rape, child abuse, domestic violence; corruption in the criminal justice system and commercial crime will be the target of improved priority focus. Amongst other things, the police and revenue service will coordinate their investigations into prime suspects in organised crime. Laws will be piloted on stricter bail conditions and minimum sentences for serious violent crimes.
A special inter-ministerial task team is to be appointed to deal with taxi violence.
Provincial mobilisation
Provincial crime summits will be held in the first half of the year. They will involve local authorities and will focus on 'Partnerships for local action against crime'.
Democratisation and governance
If we are to reach our goals, we must implement our democratic constitution in ways that ensure that authorities in every sphere can act as effective instruments of change and make efficient use of public resources.
Implementation of the Constitution
In order to promote understanding of the new Constitution, public campaigns will be launched including the National Constitution Week culminating on Human Rights Day, March 21. Seven million copies of the Constitution will be distributed.
Existing legislation will be modified to comply with the new Constitution. The Commission on the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities will be established.
The National Council of Traditional Leaders is expected to be launched in April 1997 and work will be done to find the best ways of integrating traditional authority within the new democratic system.
Co-operative governance
Our Constitution introduces a new era of co-operative governance between the different spheres of government - national, provincial and local. Developing this system will be a major focus for 1997. The establishment of the National Council of Provinces has started the process. An Inter-Governmental Conference in February 1997 focused on promoting a shared vision and mapping out steps to be taken in 1997. During the year, a White Paper will be produced to establish the system of intergovernmental relations and co-operative governance.
Local government
The local government elections completed last year established a legitimate but interim foundation for local government. The final structure of the local government system will come out of a review process that will lead to a White Paper and legislation by the end of 1997.
During 1997, there will be an emphasis on developing the capacity of the new local authorities to administer finances, through training and legislation. Project Liquidity will help stabilise the finances of local authorities. Guidelines are being formulated, through consultation, for facilitating and regulating public/private partnerships at municipal level for infrastructure delivery.
Community/municipal partnerships will be promoted during the year through the President's Award for Community Initiative
Transformation of the Public Service
The transformation of the Public Service includes the right-sizing of the public service after integration of the previously separate administrations, and its reorientation towards reconstruction and development.
The programme of action for 1997 will include the setting of further right-sizing targets with effect from April 1997.
A thorough review and reform of management systems within the Public Service will be advanced by the work of the Provincial Review Task Team. It is conducting an audit which amongst other things is coming to grips with the problem of 'ghost workers'. Greater decision-making, autonomy and responsibility for Public Service managers, within a framework of national norms and standards, is one of the main proposals of the Green Paper, A new law for a new public service, published in December 1996.
Another Green Paper published in December 1996 aims at transforming Public Service delivery in ways that put the people first.
The Presidential Review Commission will continue its work to propose long-term changes.
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Chapter 4: Reports submitted by ministries and departments
In November 1996, as part of a review of progress in the first half of the Government's term, ministries reported on their activities and plans, updating their reports in January this year. What follows are brief abstracts from those reports, for each of the ministries.
Agriculture and Land Affairs
Agricultural policy, legislation and departmental reform
The 1995 White Paper, based on wide consultation, focuses on national and household food security; income and employment generation and sustained animal and plant health. Out of 26 Acts for which the Department is responsible, six have been amended in line with the above objectives and four provincialised.
The agricultural markets have been liberalised and access to them broadened, through legislation and a transformed National Agricultural Marketing Council which is representative of all groups including small farmers and labour. With a more open economy, these changes alter the environment for agricultural producers, large and small.
Through provincialisation of the Department, in line with the Constitution, 7 000 posts have been transferred to provinces. An intergovernmental forum and a technical committee facilitate coordination. The Department is becoming more representative and a new management echelon was appointed at the end of 1995.
Broadening Access to Agriculture Thrust (BATAT)
Government is committed to revitalising agriculture through the establishment of a viable small-scale farming sector. BATAT is targeted at poor, previously disadvantaged and potential farmers, to enable them to succeed as commercial farmers. It focuses on providing financial services whilst reducing dependence on the state; on human resource and technology development especially for small scale farmers, and on the development of marketing systems and infrastructure.
Groups of small farmers (120 in all) have been sent to various countries to study their systems and arrangements have been made in other countries for training in rural development. There are extensive training projects within the country. Under the Presidential Mechanisation Lead Project private companies donated tractors which have been distributed across the provinces.
Land Affairs policy, legislation and departmental reform
A broad consultative process involving a national conference, a Green Paper and district based workshops, has gone into the drafting of a White Paper due to reach Cabinet in February 1997. Legislation has included 10 bills passed with seven more before Parliament.
The Department has been integrated. Training is being done in a number of specialist fields. Progress is being made in consultation with provinces towards defining and establishing a uniform system of land administration. The Deeds Office now charges for its services, saving taxpayers R82 million.
Land restitution and redistribution
The Commission is investigating over 11 000 claims. The first 10 have been referred to the Court, and the Elandskloof community have regained their land. The Labour Tenants Act affects 30 000 families, providing security of tenure and the right to own the land they occupy. Over 250 land redistribution projects under the subsidy system are underway, affecting over 47 000 households and 1,7 million hectares - 28 transfers have already taken place.
Land tenure reform
This will secure legally enforceable tenure rights under a diversity of forms of tenure. Legislation to promote rural tenure security will be finalised by Parliament this year.
Administration transformation
Departmental representation of the previously disadvantaged is up from 19 per cent in 1994 to 43 per cent. R53,8 million has been redirected to new activities with minimal budget increase.
Arts and Culture, Science and Technology
Administration transformation
Departmental representation of the previously disadvantaged is up from 19 per cent in 1994 to 43 per cent. R53, 8 million has been redirected to new activities with minimal budget increase.
Arts, culture and heritage transformation
Transforming existing institutions: - Performing Arts Councils have new and more representative boards; a three-year right-sizing of their funding and infrastructure has begun, and their facilities are opening to a broader spectrum of artists. Museums are transforming to promote the heritage of all South Africans, and the Legacy Project is formulating guidelines for new museums and monuments.
Reprioritising the budget: - Funds have been reallocated to community-based arts and culture organisations as part of a more representative funding policy. The Cultural Industries Growth Strategy will boost the economic impact of arts and culture, with growth strategies for each cultural industry.
New institutions: - Cabinet has adopted legislation for a National Arts Council to promote universal access and equity, a National Film and Video Foundation with a R10 million budget, and a National Heritage Council to foster our diverse heritage.
Increasing SA's international cultural presence: - Various bodies have been funded to perform in other countries and cultural agreements are being entered into.
State archives service
The National Archives Act came into force in January 1997, committing the service to transparency and accountability, RDP imperatives and high standards. The senior management team was restructured, with a transformation component to foster democratisation and Public Service transformation.
State language services
The Language Plan Task Group report, strongly favouring multilingualism, is being studied, and a multimedia information campaign on multilingualism will be launched in 1997. The Pan SA Language Board is functioning.
Science and Technology transformation
The White Paper adopted by Cabinet initiates three processes: investigation of Science and Technology performing institutions; creating an accountability framework for Science Councils, and establishing an innovation fund for competitive reallocation of research funds.
The National Research Foundation, an umbrella grant-funding body, will develop national research capacity, and the National Advisory Council on Innovation will provide government with S&T advice. Other S&T initiatives include a stocktaking survey on strengths of the research system; an assessment of the brain drain; a research and technology foresight exercise; building human resources and promoting public awareness of S&T, and promoting international co-operation.(Seven bilateral and six general agreements have already been signed; and consultation is in progress with 36 other countries).
Correctional Services
Transformation of the Department
Demilitarised since April 96, the Department has revised its training programmes, emphasising participative management and human rights culture.
The Department is nearing its target for the year 2000 of a staff body of which 70 per cent will be from those currently under-represented. The Management Board has become more representative and a new Commissioner has been appointed.
Revision of services
The treatment of offenders is being realigned with the Constitution and international practice. This includes the establishment of Youth Development Centres at Brandvlei and Ekuseni, and new programmes for juveniles. Community Service has expanded to most areas and a pilot project is monitoring parolees and probationers electronically. As part of the National Crime Prevention Strategy, the Department is involved in actions to strengthen the Criminal Justice System
Prisoners
Eliminating overcrowding and upgrading to enhance human rights culture are goals of prison development. The building programme has been accelerated. Cabinet has approved private funding and this is currently being dealt with. There are two prisons under construction (Goodwood and Malmesbury), two planned (Empangeni and Pietermaritz-burg), and one (Baviaanspoort) at tender stage. Three were commissioned in the past year (Umzinto, Brandvlei and Porterville).
Transparency
Transparency has been promoted through soliciting public participation in parole policy design; active support for the Truth and Reconciliation Commission and Human Rights Commission; support for the Community Law Centres in monitoring children held under Section 29; participation in the Transformation Forum, and briefings to Parliament's Portfolio Committee.
The Department has exposed prisons, as well as prisoners (through choirs, for example), to the media. It has secured community representation on Correctional Boards and the National Advisory Council.
Community involvement
Measures to increase community involvement and contact include a greater role for NGOs, and Community-Based Organisations in advising the Department and in programmes for literacy, prisoner motivation etc.
Policy
A new Correctional Services Bill, drawing on the new Constitution and inputs from interested parties, is to be finalised for tabling in Parliament during 1997.
Defence
Policy
The White Paper approved by Parliament in May 1996, after wide consultation and debate, set a framework for the Defence Review whose reports will be discussed by Parliament during 1997.
Civil-Military relations
The establishment of the Defence Secretariat has progressed, on the basis of the definition and separation of military and civil functions. Staffing of the Secretariat with mostly civilians will be completed by May 1997.
Transformation
Integration continues. Three out of nine Provincial Officers Commanding are former MK or TDF. To date, a total of 22 067 MK and Apla members have been integrated or demobilised. Steps are being taken to ensure representivity, and policies regarding religion, civic education and the language of communication, command and instruction are being developed.
The Transformation Management Team appointed in May 1996, supported by management consultants, reported on new management systems to the Council of Defence in November for decisions on governance models. A number of models are being discussed to determine which one best suits the Department's purposes.
Demobilisation
The Demobilisation Act has now passed. Members who do not wish to follow a military career will be demobilised in accordance with the law. To date, 3 760 members of the former MK and Apla have been demobilised.
Peace support operations and regional role
Officer training for peace-support is taking place at SANDF staff colleges and through secondment to the UN Department of Peace-keeping Operations and NATO forces in Bosnia. In December 1996 the SAAF airlifted medical supplies and food for refugees to Rwanda. The Department's role in regional military co-operation involves participation in sub-committees addressing such issues as peace-support; disaster relief; counter-coup measures, and early warning systems.
Interdepartmental co-operation
As part of the National Crime Prevention Strategy, 8 000 troops have been deployed per month to assist the SAPS, primarily in crime-fighting, border protection and dealing with cross-border crime. Other departments have been assisted in such activities as water provision to drought stricken areas; flood relief, immunisation, and the national census.
Service Corps
To date, 600 former servicemen and -women had received training and been reintegrated into civil society. A further 806 are undergoing training. In March 1996, Cabinet approved the idea of making the corps part of a joint venture with other departments to provide the youth and the unemployed with skills. A report on this will soon go to Cabinet.
Education
National Education Policy Framework
White Papers on Education and Training and on Schools have been completed, as well as Green Paper on Higher Education
Legislation towards a single system for all children has included: the SA Qualifications Authority Act; Educators Employment Act; Technikons and University Acts; National Education Policy Act, and SA Schools Bill
Commissions promoting policy development include the National Commission on Higher Education and the Investigation into Technology Enhanced Learning (both completed) and several in progress on topics such as Gender Equity; Education Management and Development; Special Needs, and Language Policy
Implementation of policy
Following the deracialisation of our schools by the 1994 Interim Constitution, the integration of 14 education departments was to be completed by the end of 1996. That was also the first year matric exams were common to all students.
Upgrading and expanding facilities were promoted by R84,4 million spent on the RDP Culture of Learning programme (improving school buildings and governance),while R200 million was allocated in September 1995 and then a further R1 billion for school buildings. R160 million has been budgeted for youth community colleges, of which the Gauteng pilot project has enrolled 1 700.
The Primary School Nutrition Programme was reaching 7 548 schools in August 1996.
Initiatives for 1997 include the launch of the national curriculum framework and the formal launch of an Educational Broadcasting initiative.
Adult Basic Education and Training is receiving priority.
An amount of R300 million was made available for financial aid to needy students in 1996.
The urgent need to upgrade science and technology education is being addressed in a pilot project: Students and Youth into Science, Technology, Engineering and Mathematics (SYSTEM).
Education management and resources
The Department's transformation is in progress, aiming at efficient service, orientation to serving the public, and representivity.
The need to achieve equity in educational funding and resources is being pursued through a comprehensive agreement reached in the Education Labour Relations Council, and with a six-year plan to achieve equity in funding provincial education departments by 2000. The first phase of redeployment of teachers has been launched.
The newly established Council of Education Ministers and Heads of Education Departments Committee are functioning effectively to coordinate the new single education system.
International relations
We have resumed membership of UNESCO; we are involved in SADC human resource development; and we have finalised technical/financial assistance agreements with North America, Europe and Australia.
Environmental Affairs and Tourism
Transformation and restructuring of Department
Improved accounting and internal auditing systems are being introduced and personnel are being trained. Weather bureau, marine control and air pollution control functions have been transferred to the Department from the former TVBC countries and other national departments as part of restructuring and rationalisation. By the end of 1996, 132 staff members had left under the voluntary severance scheme. The representation of black people has increased to 36 per cent from 23 per cent since November 1994.
Environmental management
Developing a national environmental policy has progressed well through a widely consultative process. A Green Paper was published in October 1996 and will be finalised into a White Paper during the first quarter of 1997. A second White Paper on the protection and conservation of our country's rich biological diversity is being drafted. It will ensure that South Africa can fulfil all its obligations under the international convention on biological diversity which we ratified in November 1995.
Sea fisheries
A White Paper on fisheries is being drafted. At the same time an independent panel is addressing the issue of access rights with a view to achieving equity. Steps are being taken to regulate public access to perlemoen and rock lobster resources.
Weather Bureau
Monitoring rainfall, methods of cloud-seeding and seasonal predictions of weather conditions are research priorities. The promotion of voluntary co-operation programmes in the region is taking place within the new SADC Protocol on Transport, Communication and Meteorology, and the SA Weather Bureau has been designated the regional specialised meteorological centre responsible for providing forecasting products to the region. Meteorologists and technicians from the region are also making use of operational training opportunities in the weather Bureau whilst technical assistance has been provided to some countries.
Tourism
Tourism was expected to grow by 10 per cent during 1996, or by 100 000 tourists. Development of the industry is a focus of activity - this involves training and education, and attention by the Tourism Safety Task Group to the safety of tourists. Tourism is being promoted through co-operation with other departments and private sector tourism organisations. However, constraints are being felt from the restricted budget and the effects of currency devaluation on international marketing.
Cabinet approved the White Paper on Tourism Development and Promotion in June 1996 and a draft implementation strategy is being finalised. A new Tourism Board will be appointed in terms of the Tourism Amendment Bill.
International links have developed around South Africa's membership of the World Tourist Organisation and of the Council of the Regional Tourism Organisation of Southern Africa (Retosa). The Department is the SADC's contact point for tourism.
Finance
Monetary policy environment
Monetary policy is constrained by a combination of factors - the level of reserves; exposed forward cover; continued pressures to lift exchange controls, and the deficit on balance of payments. While a depreciated Rand brings opportunities for increased competitiveness, a too-weak Rand can also import inflation. It is generally agreed that the currency was undervalued in 1996. Our problems are, however, less related to the value of the Rand than the impact of its volatility on investors. The Ministry is continuously revising the provision of forward cover and steps will be taken at the appropriate time.
Fiscal policy
We are were on track to meet our deficit targets of 5,1 per cent in 1997 and 4 per cent in 1998, both in respect of exchequer receipts and expenditure. The target of collecting an additional R125 million per month in taxes through increased efficiency is also being met.
Significant progress has been made in reallocating apartheid type expenditures, and there is a need for Ministers, Premiers and MECs to take greater political responsibility for their budgets and fiscal rectitude.
Revenue collections
Tax collection is receiving high priority. The restructuring of the South African Revenue Service from Customs and Excise and Inland Revenue was done by April 1996. The tax relief campaign was expected to draw in many more taxpayers. There have been major breakthroughs in cracking smuggling syndicates.
Assuming RDP functions
A new Chief Directorate has been created to deal with all Development Finance, and progress made in setting up systems for management of resources. There is a major audit to clarify what the situation was when the administration of RDP funds was transferred. Capacity is being developed in the Departments of Finance and State Expenditure to establish the skills necessary to meet the challenges of creative development finance.
Foreign Affairs
Institutional and policy development
The integration of TBVC structures is complete and rationalisation included redundancy of about 250 staff. The filling of new posts increased representativeness.
As part of the ongoing reprioritisation of activities and refining of new policy objectives, there has been broad consultation, including interaction with Parliament and a workshop with civil society on the Foreign Policy Discussion Document.
Region and continent
The development of our regional relations is a cornerstone of policy. It takes place within a framework for co-operation with Southern African countries approved by Cabinet. South Africa became chair of SADC in September 1996. Economic ties with other African countries are being encouraged. South Africa has been participating in international efforts to end internal conflicts, within the framework of the OAU.
Multilateral
South Africa has been active in the UN, supporting reform in line with the views of the African Group and SADC; in the Commonwealth; and NAM. Our role in arms control has grown through membership of the Conference on Disarmament and our participation in the Pelindaba and Comprehensive Nuclear Test Ban Treaties.
We are active in specialised UN agencies. Participation in UNCTAD, whose ninth conference we hosted, has sharpened focus on programmes for the least developed countries. We have ratified conventions on the rights of women, children and refugees, and South Africa is a member of the UN Human Rights Commission.
Other regions
Europe: - Good relations with our largest trading block are symbolised by the many high level visits in both directions and the signing of agreements to boost trade, aid and technical assistance. Negotiations around a trade agreement with the EU continue.
Asia: - Asia is now a priority area for our foreign policy. Our relationship with Asia has expanded, and the region is now our largest trading block after the EU. South African missions in Asia have been active in placing the required economic infrastructure into place to facilitate increased economic interaction.
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Middle East: - Relations between South Africa and the Gulf region are expanding rapidly. Growing reciprocal diplomatic representation has led to a significant increase in exports to most of the countries. Relations with the other Middle East countries continue to deepen and diversify. South Africa supports the Middle East peace process. The Joint Commission with Israel has agreed on several programmes of benefit to South Africa.
US: - The second round of Bi-national Commission concluded in July with the Deputy-President's visit, opening the way to closer ties in various fields now possible.
South Atlantic: - South Africa is now a member of the Zone of Peace and Co-operation in the South Atlantic, bringing closer co-operation. Trade and tourism co-operation with Latin American countries has been boosted by high level delegations.
HEALTH
National health system
All the old health departments have been integrated into one National Health Department, nine provincial departments, 48 health regions and 157 health districts. Universal access to primary health care was introduced in April 1996.
A policy on national health insurance will be finalised for discussion in NEDLAC in 1997 and legislation passed in 1998. Better control of medical aid schemes will result from legislation to go through Parliament in 1997. A new Drug Policy launched in 1996 includes the Essential Drugs Programme, the main aim being more affordable drugs.
Maternal, women and child health
Following the free health care programme for young children and pregnant mothers, two thirds of women say they find access to health care easier.
South Africa has ratified the Convention for the Elimination of Discrimination Against Women and launched the National Programme of Action for Children, jointly with UNICEF.
The Primary School Nutrition Programme, although plagued by administrative problems, reached over three million children in 1996 and will reach over five million in 1997.
The Termination of Pregnancy Act took effect in February 1997.
Clinics
Between April 1994 and October 1996 Government and non-government sources were responsible for the building of 186 clinics; extension of 100; upgrading of 2 500 and provision of 173 mobile clinics. By December 1997, it is planned to build 302 clinics, extend or upgrade 122 and provide 56 mobile clinics.
Communicable disease control and health promotion
Seven out of 10 children are fully immunised and nine out of 10 have an immunisation card. A hepatitis vaccine was added to the vaccine schedule. Polio campaigns are picking up: the 4.4 million children immunized in 1996 will increase to five million in 1997.
Implementation of a new strategy to combat TB, introduced in 1996, will be accelerated in 1997. Spending on HIV/AIDS went up from R40 million in 1994/95 to R80 million in 1996/97
Problems
Budget constraints; lack of financial and managerial training and poor communication of the Department's programmes are amongst the main problems.
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HOME AFFAIRS
Policy and legislation
To bring laws into line with the new Constitution and new policies, legislation has been enacted to integrate former TBVC states; to normalise citizenship and passport rights; to change registration of births and deaths, and to achieve publications control and control of illegal immigrants. The Marriage Act is still with the South African Law commission. A task group is drafting a Green Paper on reformulated immigration policy, and a White Paper is expected in the second half of 1997.
Departmental transformation
The integration of former TBVC structures is complete. Problems with the placement of staff in the rationalised department are being addressed.
Efforts to make the Department more representative have met with significant progress. At managerial level, more success has been achieved in terms of colour compared with gender.
The rationalisation of the Government Printing Works is in its final stages, and a final decision will be taken shortly. Privatisation of the the Government Printing Works is under consideration.
Civic affairs
More than 95 per cent of citizens and persons with permanent residence already have identity documents - the goal is for every South African of 16 years and above to have an identity document. A new machine readable passport was introduced during 1996 and a new automated fingerprint identification system as well as an identity card are being developed for introduction late in 1997.
Migration
Measures relating to entry procedures and issuing of visas are being taken to facilitate the increased level of foreign visitors to South Africa.
Bilateral discussions with SADC countries are addressing issues related to border crossings, and the Aliens Control Act amendments have allowed more effective control of migrants. About 200 000 people have applied for the exemption granted to SADC citizens who had been in South Africa at least five years before 30 June 1991. Ultimately, the solution of problems relating to illegal entry and residence requires economic development of the entire region. In the meantime stricter measures will continue to be enforced to stem this tide of illegal immigrants.
Electoral matters
An act to provide for the electoral commission required by the new Constitution has been passed by Parliament, and the process for appointing the commission will be implemented in 1997.
Film and Publication Control
In terms of the Film and Publication Act, which was passed in 1996, the autonomy of the new Board and Review Board has also been increased.
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HOUSING
Foundation for delivery
After two years of preparing the ground the National Housing Policy is now delivering at a pace that puts it on track to have a million houses built or under construction in the first five years.
Most problems and obstacles to delivery have been isolated and necessary adjustments made. Several national institutions have been established to facilitate a sustainable housing delivery process and they were all operational by the end of 1996. (They include: the National Housing Finance Corporation; Mortgage Indemnity Fund; Servcon Housing Solutions; National Urban Reconstruction and Housing Agency and Rural Housing Loan Fund.)
Some R4,0 billion in new mortgage credit has been mobilised through the Mortgage Indemnity Fund in areas previously redlined by banks of which R1,74 billion mobilised into the Government subsidised market.
Low-cost housing programme
Never before have so many low-cost units been under construction and very substantial increases in visible delivery can be expected from early 1997.
Capacity to implement policy
Measures are being taken to develop capacity in provincial and local spheres of government, NGOs, communities and homeless people. This includes the People's Housing Partnership, to be established in the first quarter of 1997; the National Capacitation programme aimed at ensuring that provincial housing departments and municipalities have the capacity to carry out their housing functions, and steps to improve the efficiency of housing boards.
Policy development
Proposals have been adopted to facilitate joint-venture operations to provide higher density housing at scale, and a wide range of tenure choices are now being made available, including freehold, rental and social housing options.
The promotion of rental stock is part of the housing subsidy policy, although the need to develop the capacity to manage such housing means that not more than 20 000 rental units can be expected in 1997.
The establishment of the Rural Housing Loan Fund will lead to the production of 100 000 housing units in the first five years of its existence.
A Housing Bill is being drafted to establish a framework under the new Constitution for housing action by the three spheres of Government in line with current housing policy. The aim is to implement it in July 1997.
Justice
Policy, legislation and new institutions
The restoration of the rule of law requires restructuring of the legal system and institutions to promote accessibility and democracy. With these goals in mind, a strategic plan 'Justice Vision 2000', has been drawn up and is being used to draft a White Paper on the administration of justice.
New institutions include the Public Protector's Office; Judicial Service Commission; Constitutional Court; Human Rights Commission, and Gender Commission. New laws are promoting uniform regulation of the administration of justice, courts, legal procedures, legal practices and practitioners.
Amongst restructured institutions are the SA Law Commission, Rules Board for Courts and Legal Aid Board. The restructuring of the Magistrate Commission is receiving attention.
Transformation of the Department and the justice system
Eleven departments have been integrated into one. A policy on employment equity and representativity is being implemented. Training is being restructured to promote efficiency, effectiveness and responsiveness in the administration of justice.
Strategies and programmes on crime
More people are now laying charges and testifying in court, and the criminal process is being expedited. Changes in the law have closed loopholes and strengthened the hands of judicial officers in dealing with organised crime and drug trafficking, and more are planned to eliminate delays and promote international co-operation. Urgent attention is being given to legislation on bail in order to empower courts to refuse bail in serious cases, and legislation dealing with minimum sentences in appropriate cases. The SA Law Commission is investigating more effective sentencing options and an effective juvenile justice system. A national court management system is being introduced to improve the management of courts.
National priority crimes
There is a focus on white collar crime and corruption, including within the justice system. Money laundering is the target of legislation being considered by the SA Law Commission, and it was the topic of a Commonwealth Conference hosted in South Africa in October 1996. Steps are being taken to prevent the disappearance of police dockets and, through the recent Special Investigation Units and Special Tribunals Act, to strengthen the capacity to deal expeditiously with allegations of serious maladminstration or corruption.
Problems
Lack of financial and human resources inhibit transformation. So do poor coordination in the justice system and the time-consuming nature of consultation. These are being addressed through attempts to secure foreign funding; measures through the National Crime Prevention Strategy to improve coordination; and attention to increased training and filling of vacant posts.
Labour
Institutional change
Integration to create one national labour department and to rationalise statutory bodies linked to the Ministry is complete. Posts have been rationalised and new representative management appointments made. For longer term restructuring, a strategic planning process initiated in 1996 has been completed.
Policy initiatives
Collective Labour Relations: - The new dispensation came into effect in November 1996, when the Commission for Conciliation Mediation and Arbitration and the new Labour Court began to function.
National Qualifications Framework: - The Department is working on this in conjunction with the Department of Education. The SA Qualifications Authority Act was passed in September 1996.
Comprehensive Labour Market Policy: - The Commission has submitted its report and the response of the Department and Ministry will soon be submitted to Cabinet for endorsement.
Unemployment coverage: - Draft legislation is expected late in 1997 after consultations and recommendations by a task team already appointed. The report of the task team is being considered by the Department.
Occupational health & safety: - A comprehensive system and a national strategy on Health and Safety is expected early in 1997, following recommendations by a Committee of Enquiry appointed in October 1996.
Employment Standards: - Redressing inequities and setting basic standards is the aim of the bill to be tabled in Parliament early in 1997.
Employment equity: - Following public comment on the Green Paper, legislation is to be tabled in 1997, to combat all forms of discrimination and promote equity in employment and at work.
National Human Resources Development: - By the end of 1997, it is expected that legislation and key institutions will be in place for a human resources strategy that promotes individual learning, economic growth and social development. The Green Paper on training and human resource development strategy will soon be released to the public.
Research initiatives
A Labour Market Chief Directorate has been established to oversee research and collation of statistics to inform policy. Research projects have been initiated to help develop effective strategies for job-creation, enhance labour market efficiency, and monitor the impact of labour market policies on the labour market. Technical assistance has been secured to strengthen the capacity of the Chief Directorate to develop the necessary infrastructure for labour market information and statistics.
Minerals and Energy
Policy, legislation and institutional change
White Papers on Mining and Minerals Policy and on Energy will be published in 1997.
The Mine Health and Safety Act was implemented in January 1997; the Electricity Act has been redrafted and will go to Parliament early in 1997, as will the Regulatory Gas Bill after a national and regional consultative process. Issues concerning Government's role in the liquid fuels sector are being addressed.
Despite the legacy of lack of skills-training amongst the previously disadvantaged, the department has become more representative (black people have increased from 7 per cent to 33 per cent). An affirmative action training programme is being developed.
Human resource development and economic empowerment
The Department promotes technical training through its own activities (such as the training of 50 mine inspectors) and those of associated institutions such as Mintek, the Geoscience Council, and the Atomic Energy Corporation. It actively promotes Adult Basic Education and Training in the mining industry, with employers and unions.
Efforts by the Department and parastatals to promote small-scale mining are beginning to bear fruit. Ikwezi Colliery, a black-owned mining company is due to commence operations early in 1997. The private sector is assisting the process by offering mineral rights for sale to small-scale miners and through increased support by Mintek for small metallurgical enterprises.
Developments in energy
Cabinet approved the development of the Mossgas satellite fields, after suitable private sector buyers could not be found. The phasing down of financial aid to Sasol is well under way. Ways of increasing representation of black people in the liquid fuels industry are being explored.
Addressing the impact of energy on the environment has included the introduction of unleaded petrol; monitoring motor pollution; improving radioactive waste management, and promoting environmentally friendly energy sources.
Electrification
Each year since 1994, electricity has reached hundreds of thousands of homes. In the year to September 1996, 400 000 homes were electrified, by Eskom or local authorities, with the biggest impact in the most rural provinces. Rural areas are also being targeted for supply of electricity from solar energy, in a programme that will benefit 16 000 schools, 2 000 clinics, and 2,5 million homes.
Regional and international
Participation in SADC and co-operation with countries in the region has developed in both mining and energy. The signing of the SADC Energy Protocol opens the way for enhanced co-operation. The Southern African Power Pool is paving the way to a regional electricity grid. The rehabilitation of the Cahora Bassa hydro-electric project to deliver cost-effective electricity to South Africa by mid-1997, is on target.
Posts and Telecommunications
Policy, legislation and institutional change
The Telecommunications Bill passed in November 1996 will fundamentally transform the telecommunications sector. A regulatory body and a universal service agency will take over functions from the Department, leaving it to focus on policy. A representative Transformation Unit has been set up to make proposals on the reorganisation of the Department along these lines.
A review of postal policy will lead to a White Paper, expected by April 1997. Urgent attention is being given to the financial position of the SA Post Office, which has been making an operating loss since it was commercialised in 1991.
Telkom's strategic equity partner
By April 97, a 30 per cent shareholding is expected to be sold to a consortium of two strategic equity partners committed to universal service obligations and the transformation of Telkom into a company representative of South Africa at all levels, through training and skills transfer. Ten per cent of Telkom's shares have been allocated for black economic empowerment and employees of the sector. Central to the restructuring of our telecommunications services is a commitment to ensure that all sections of South African society have access in the future to information resources in education, medicine and other sectors irrespective of their geographic locations.
South African Band Replanning Exercise (SABRE)
A plan has been developed, with wide consultation, for the re-allocation of use of the radio frequency spectrum, in a way that will enhance growth, productivity and socio-economic development. The plan will soon be implemented in accordance with the Government's priorities for the telecommunications sector.
Broadcasting
A new SABC Board was appointed in November 1996, reduced in size in line with the boards of comparable institutions. The finalisation of a mechanism to fund the public broadcasting mandate of the SABC will give practical effect to the principles of freedom of the media enshrined in our new Constitution.
The goal of freeing the airwaves was promoted by the sale of six regional radio stations in 1996, which also contributed R516 million to the National Revenue Fund. Through these sales, new broadcasting entrepreneurs emerged promoting diversity of media ownership.
The issuing of eight new radio licences and a new television licence in 1997 will represent a turning point in the history of South African broadcasting.
Provincial Affairs and Constitutional Development
Constitution
With the new Constitution taking effect in February 1997, further implementation will be guided by a Technical Constitution Working Group. A major effort in constitutional education, concerned with the Constitution's ethos and contents, will include a National Constitution Week in March 1997.
Two provinces have initiated the writing of provincial constitutions. KwaZulu-Natal adopted one, but the Constitutional Court did not certify it, while the Western Cape has started the process of formulating one.
Local government
Despite problems with the Local Government Transitional Act, local government structures were integrated, transitional councils appointed and eventually the first democratic local government elections were completed throughout the country except for the one area of Groblersdal/Marble Hall. This brought the transformation process into the interim phase. A comprehensive review process will culminate in a White Paper and legislation towards the second half of 1997. This will establish a democratic local government structure suited to our country's needs.
The structuring of organised local government has reached an advanced stage, and local government is now represented on intergovernmental bodies. Developing local government's capacity to serve communities and promote transformation is the focus of a major training programme; of the R1,3 billion Municipal Infrastructure Programme; Project Liquidity (to assist municipalities running into difficulties) and Masakhane.
Traditional affairs
Proposals on a process for mapping out future traditional systems, reconciling traditional structures with constitutional structures and rationalising legislation will soon go to Cabinet. All but one of the provincial houses of traditional leaders have been established, and the National Council of Traditional Leaders should be launched in April 1997. During 1997, it is expected that the remuneration of traditional leaders can be taken over from provinces that want to delegate this to central government.
Intergovernmental relations and co-operative government
The non-statutory inter-governmental structures now in place are the starting point for a more efficient intergovernmental system, possibly with a statutory basis.
The new Constitution initiates a system of co-operative governance - a process of dialogue and consultation on its development is being launched, with a White Paper planned for 1997.
Problems
A provincial institutional capacity-building programme has been inhibited by problems in obtaining the funds needed. The failure to resolve two inter-provincial border disputes was inhibiting development in the areas concerned.
Public Enterprises
Restructuring the Ministry and Office for Public Enterprises
Having started from a weak position in terms of skills, the Ministry and Office successfully negotiated new posts, and carried out a restructuring aimed at more effective performance.
Three out of five directors and two of four deputy directors are now black. Four women have been appointed to management positions.
Monitoring and evaluation of performance of Public Enterprise
The performance of some of the state enterprises has been satisfactory, with room for improvement, while that of others raises problems.
All are undergoing transformation in terms of affirmative action programmes, democratised decision-making and stakeholder orientation. The public enterprises under restructuring review employ 300 000 workers - many are unskilled and human resource development will be crucial.
Procurement and outsourcing are being managed in a way that contributes to economic empowerment. A significant proportion of auditing services have been outsourced to black accountants by Transnet and Eskom. Denel is to do the same. Half of Transnet's legal services are to be outsourced to black firms. Procurement is changing to include small black business suppliers.
Management and coordination of restructuring programmes
The guidelines for the Restructuring of State Assets, drawn up by a task team chaired by the Ministry, were approved by Cabinet in July 1995. The structures established as a result, have been determining the options available to the different sectors and enterprises. HSBC Investment Bank has been appointed as the Government Advisor required by the process.
The structures and processes established under the National Framework Agreement negotiated between Government and labour are in place and functioning.
As a result of the formation and operations of all these structures, the programme for the restructuring of state enterprises is on course.
The sale of regional radio stations kicked off the process. Telkom and certain enterprises within the transport sector are next in line. Sun Air will be privatised and strategic equity partners are envisaged for SAA and the Airports Company.
Public Service
Rationalising or right-sizing the Public Service
Targets for the abolition of funded vacancies for 1996/97 have been set in consultation with departments or provincial administrations. So far, the main aim has been savings to fund improvements in conditions of service for public servants. The abolition of 18 000 posts, worth R665 million, by November 1996, left a shortfall of R135 million and another 2 700 were to be identified.
A joint Public Service, State Expenditure Working committee will determine right-sizing targets to be implemented from 1 April 1997, taking into account the actual number of personnel employed, funded vacancies, the number of voluntary severance packages granted and expected annual losses. The approach will be to determine the 1997/98 staffing needs of departments for normal service delivery, against the Government's policy to reduce the size of the Public Service and the limited availability of funds to finance the personnel account of the Public Service.
The British Overseas Development Administration has been approached for assistance in effecting medium to longer term right-sizing targets in a way that conforms with Government policy and priorities.
Voluntary severance
By the end of October 1996, 29 191 applications had been made for the voluntary severance package, of which 19 214 had been approved, (excluding CS-educators). Specific guidelines have been drawn up for the filling of vacancies resulting from voluntary severance, in order to enhance efficiency, savings and representativeness of the public service.
New salary grading system
The new salary grading system will be implemented over three years if the budget allows and the necessary savings are made through right-sizing. The system simplifies personnel administration and improves career-pathing, and has reduced the large wage gap between lowest and highest public servants.
Policy and legislation for reform
The Public Service Amendment Act, 1996, eliminates discriminatory practices arising from the former distinction between 'officers' and 'employees'. The roles and functions of the Public Service Commission and the Minister are redefined by legislative amendments already approved by Cabinet, and which can now be processed under the new Constitution.
Legislation, based on a Green Paper published in December 1997, will be needed to transform Public Service management in line with current thinking and priorities. Transforming Public Service delivery is being promoted by a framework for the delivery of services contained in a Green Paper released in December 1996.
Public Service reform is also being promoted through training, skills transfer and information exchange. The Labour Relations Act brings the public service into the same system of labour relations as other sectors for the first time.
Public management development programme
A financing agreement involving a grant of R60 million by the European Union for a public management development programme has been finalised. The three-year programme will involve the South African Management and Development Institute and a consortium of university Public Administration schools.
Public Works
Transformation of the Department and its activities
Since 1995, the Department has done the assessment and redesign phases of a transformation programme, and the focus is now on implementation. This will boost effectiveness in core functions (property advisory services; property development, and property management). The National Public Works Programme Unit will henceforth incorporate a section to undertake policy development work, promote transformation in the construction sector and work side-by-side with the Community-Based Public Works Programme.
A Green Paper released in October 1996, outlines the strategic role of the Department into the next century, in the context of Government's macroeconomic objectives. Project Management will become a core function, with most of the traditional construction work outsourced to the private sector.
A White Paper due in February 1997, will outline a strategy for a construction industry policy to promote stability, foster growth and international competitiveness, while generating new capacity and addressing imbalances.
Procurement reform
A Ten Point Plan approved by Cabinet in 1996, provides an interim strategy for procurement reform, by opening access for small business to public sector procurement. Cabinet has also approved a new model of public-private partnerships (Asset Procurement and Operating Partnerships) for urgently providing specialised infrastructure such as correctional facilities and Government offices.
Community-Based Public Works Programme
Government budgeted R250 million to this project for the short term, and the bulk was allocated to provinces and NGOs. A recent evaluation of one component, the Independent Development Trust's Community Employment Programme, found it had reached the poorest of the poor; that 61 per cent of its programmes were in the three poorest provinces (Eastern Cape, KwaZulu-Natal and Northern Province); and 88 per cent of its workers from rural areas.
A total of 947 projects have been started, creating 5,3 million worker days. By the end of 1996/97, two-thirds of funding will have been allocated. Funding applications total R1,2 billion, and the continuation of the programme is subject to confirmation of further funding. Initially, problems relating to provincial capacity, targeting of the programme and the absence of legitimate local government structures hampered progress, but these problems have now largely been overcome.
Other public works projects
There are 12 pilot projects as part of a programme to reorient Government expenditure on infrastructure projects and create work-opportunities totalling 450 000 worker days.
Capital projects include 500 building projects worth R2 billion undertaken in the past two years and several others in the pipeline.
Safety and Security
Effects of strategies to deal with crime
The implementation of the annual police plan and the strategies linked to them have, through more effective policing at local level, led to a decrease in general levels of crime.
Statistics released in February 1997 demonstrate the successes and the problem areas. Serious crime rates dropped in nine out of 20 categories during 1996, including murder, car-hijacking, drug-related offences and aggravated robbery. However, white-collar crime showed no signs of reduction, remaining at the same level as the year before (this included fraud, forgery, embezzlement, malappropriation and other commercial crime). In four categories, the levels of reported crimes rose, including rape and serious assault.
KwaZulu-Natal
The success of the Port Shepstone Special Investigation Unit led to four National Investigative Task Units being established in KwaZulu-Natal during 1996, with immediate success. They were accepted by local communities, and their effectiveness is reflected in a massive reduction in cases of political violence.
Taxi-related violence
Special investigating teams are dealing with taxi-related violence in all provinces. Pro-active steps are being taken to pre-empt outbreaks of violence, with an emphasis on intelligence, surveillance and the identification of Government officials' involvement in corruption within the industry.
Legislation to narrow the space for criminals
Various pieces of legislation have narrowed the space for criminals and strengthened the hands of judicial officers and police. Laws administered by the Justice Department have affected extradition, international co-operation against crime; proceeds of crime; entrapment; undercover operations, and the use of force during arrest. The Safety Matters Rationalization Bill promoted by the SAPS rationalised all laws dealing with internal security, explosives, intimidation and the regulation of gatherings.
Coordination
A Business Planning Office is being established within the SAPS and forums to coordinate interdepartmental liaison and processes. A crime prevention coordination unit has been set up in the Secretariat for Safety and Security. The National Crime Prevention Strategy is promoting close coordination with other ministries.
Priorities for the coming year
The Department has established a set of priorities for 1997 in the fight against crime, within the framework of the National Crime Prevention Strategy.:
- control and reduction of firearms, legal and illegal:.
- an offensive against organised crime
- crimes against women and children:
- corruption in the Criminal Justice System, whether it be police or the rest of the system
- crime prevention, including mobilisation of Government, business and the rest of society in crime prevention programmes.
Sport and Recreation
Policy, legislation and transformation
A draft White Paper submitted to Cabinet is being discussed by stakeholders and should be tabled early in 1997. It will provide a framework for legislation to transform sport and make it equally available to all.
Although the deracialisation and transformation of sport is hindered by persisting prejudices, progress is being made in close co-operation with the Health and Education departments.
Facilities
In order to promote the building of basic facilities in the disadvantaged communities, without which meaningful change is impossible, the Department organised a facilities convention during 1996. It brought together sympathetic organisations in the country and experts from abroad to develop a national strategic plan to address imbalances of the past. It set a target of 46 000 facilities for twelve priority sports codes by the year 2000.
Since 1994, the Department has provided 153 multi-purpose sport and recreation facilities and a further 46 were due for completion by the end of 1996. A Sport Information and Science Agency has been established to enhance both elite and grass-roots participation in sport. Preparations are at an advanced stage, together with other stakeholders, to build a finishing school for top and potential achievers. A national sports museum and academies in four of the nine provinces will help develop national pride and engagement in sport.
SA National Games and Leisure Activities (SANGALA)
This project, launched in 1996, will promote recreation. A total of 800 community leaders have completed initial training and a further 573 are enrolled for the next cycle. It is targeted at all sectors of society. Pilot projects for rural areas were launched in November 1996 in four provinces. In KwaZulu-Natal, 13 000 street children have been reached.
International agreements
Several international agreements have been reached, mainly to boost capacity building in black communities. The focus is on the development of administrators, grounds managers, coaches and volunteers. Countries involved are the UK, Canada, Germany, USA and Australia, and more agreements are in the offing.
Trade and Industry
Policy development
A policy package has been developed consistent with the RDP and GEAR. This means promoting trade relations for a globalised world economy; an industrial strategy for productivity and competitiveness; and equitable trade and commercial practices that will promote trade and investment, and foster opportunities for greater participation in the economy.
External trade relations
The managed reduction of our tariffs over a five year period (with slightly longer periods for the automobile, clothing and textile industries) is on track.
As far as the region goes, agreement on the review of the South African Customs Union is possible early in 1997. The detail of tariff reduction has been de-linked from issues relating to the basic framework for a SADC Free Trade Agreement. This facilitated the signing in 1996 of a Protocol for a SADC Free Trade Agreement, and a commitment to resolving the tariff phase during 1997. South Africa has responsibility for the SADC finance and investment sector. Issues and tensions around our bilateral relations with some SADC countries - in particular Zimbabwe; Zambia; Malawi and Mozambique - are being addressed.
Trade negotiations with the European Union have been protracted and problematic. More formal negotiations began in January 1997.
Trade promotion and investment promotion is an increasingly active part of DTI's work as new markets open up to us. Major delegations have gone in both directions, involving Europe; Middle East and Gulf; Australia, and Asia. The launch of Investment SA in February 1997, as a one-stop investment centre, will facilitate investment decisions by foreign investors.
Industrial strategy
The goal is to promote adaptability and competitiveness in our industrial base.
The strategy is informed by extensive research and analysis, organised around "cluster" studies which identify actions to improve competitiveness and employment creation within particular clusters of industries.
Supply-side measures are being designed and implemented to promote productivity and competitiveness.
One of the biggest programmes is that for Small, Medium and Micro- Enterprises. The approach is to create a supportive environment for the sector, and several institutions have been created to this end.
Spatial Development Initiatives play a crucial role in our industrial strategy, from the cross-border Maputo Development Corridor to internal regional and metropolitan initiatives. The Maputo Development Corridor process is on track, and its promotion company is to begin work early in 1997.
Commercial services and fair trade
Amongst the issues concerning internal economic relations, competition policy is prominent - Government is formulating policy on this matter.
Transport
Policy, legislation and departmental transformation
The Transport White Paper adopted by Cabinet in September 1996, will be the basis of legislation to go to Parliament in early 1997. The new policy will shift Government from operations to policy, planning and regulation. It will base delivery of infrastructure and services on public-private partnerships and promote the contracting out of bus and rail services while drawing the taxi industry into the formal transport system. It will also address the carnage on our roads.
The Department is working for the establishment of 'arms-length' agencies to manage roads, aviation and shipping, making possible a reduction in the Department from 1 400 to 400.
Public transport
The bus subsidy system is being made more competitive and sensitive to community needs and more open to disadvantaged operators.
Steps are being taken to shift commuter rail services to a concession-type contract that will introduce incentives for better and more efficient service.
The National Taxi Task Team has developed a framework for addressing taxi-related violence, based on regulation and control; formalisation and training, and economic assistance. The ground is laid for implementation, including grass-roots consensus. Five per cent of operators still oppose the process totally - they are believed to be responsible for the recent upsurge in violence. Inter-departmental co-operation between Transport, Justice and Safety and Security is recognised as key.
Corridors and roads
Progress is being made in connection with the various tender processes. It is estimated that 37 000 jobs will be created.
Several other spatial development initiatives (corridors) internal to South Africa, are in various stages of planning or implementation, amongst them both regional and metropolitan corridors.
In the past two years, contracts have been issued for the building of roads worth R2 billion. The N3 linking Gauteng to Durban, and involving new construction worth R1 billion, will be concessioned to the private sector in early 1997. The N1 linking us to our northern neighbours will open early in 1997.
Restructuring of state assets
A mixed approach is being adopted, from outright privatisation (Sun Air), strategic equity partnerships (Airports Company and SAA) to concessioning. The Transport Sector of the NFA has reached agreement on Sun Air and agreement on the SAA is expected by the end of 1997.
National Traffic Information System
A comprehensive plan to reduce road deaths by 10 per cent by the year 2000 includes the establishment of the computerised National Traffic Information System. It will be completed during 1997.
Water Affairs and Forestry
Community water supply and sanitation
The Rural Water Supply and Sanitation Programme was started as a Presidential Lead Project in 1994 to provide basic services to all South Africans.
Funding was allocated to 700 projects to give 6,4 million people ready access to water (about half the national backlog) and 100 000 adequate sanitation. Because the Department did not involve itself in community water supply before 1994, a new structure had to be established. By the end of 1996, 700 000 people had been supplied with water.
To supply basic water to most of the 12 million people who need it will require about R1 000 million a year. The recently announced fourth annual programme which will serve a further 2,1 million people will cost R650 million.
Water resource management
Progress on the Lesotho Highlands water project has helped secure water supply for six central provinces for the next 10 years.
The Qedusizi flood protection dam outside Ladysmith, to be completed in 1997, will protect the town from the devastating floods of the past.
The Injaka dam and water transfer on Sabie river has reached a stage that will protect Bushbuckridge from having its water supply cut off by drought, although more investments are needed to bring water to everyone.
The Driekoppies dam on the Komati River brings an expansion of farming, the creation of thousands of jobs, and benefits Mozambique through improved river regulation. Construction of the Maguga dam, being developed jointly with Swaziland and part of the Komati development, will start in 1997.
The National Water Conservation Campaign has been very successful - it includes a Schools Education Programme, the eradication of alien vegetation from water catchments and a new water pricing policy. The alien vegetation clearance programme has employed and trained over 7 000 people, more than half women. Vigorous pursuit of conservation can save up to 30 per cent of our water, and reduce the need for large capital works.
The Department has taken a strong position on water pollution, and has laid charges against several companies in this regard.
A milestone in the involvement of civil society in the development of water policy was the establishment of the National Water Advisory Council.
Forestry
The Forestry White Paper and the establishment of the National Forestry Advisory Council in 1996 were milestones. The White Paper has a clear commitment to support community forestry, and over 2 000 community forestry projects have resulted in the planting of nearly two million trees.
To help incorporate the commercial forests of former homelands into the Department, an audit was conducted within the national forestry action programme to determine assets and liabilities and the commercial viability of this operation.
Welfare
Policy
The draft White Paper for Social Welfare, now with the Portfolio Committee on Welfare, will be tabled early in 1997. It provides a framework for repositioning welfare towards a developmental approach and for completing the five-year Social Welfare Action Plan. The White Paper on Population Policy has been published for public comment. Far-reaching agreements have been made with Southern African Ministers on regional population and development programmes. The Welfare Laws Amendment Bill, amending several welfare laws, and the Child Care Amendment Bill have been tabled in Parliament.
Institutional
The Committee for Restructuring the Social Security System was set up to address the effective management of the system, development of information systems and elimination of fraud and corruption. The most far-reaching recommendation is for a nationally based social security system. The Lund Committee on Child and Family Support developed options for extending provision to those previously excluded.
Coordination with other Ministries involves the Interministerial Committee on Young People at Risk (IMC), and the National Crime Prevention Strategy. The IMC has piloted alternative ways of dealing with young people in conflict with the law. Some Secure Care facilities will be officially opened in June 1997, and a new policy will guide transformation towards a better dispensation for children and youth at risk.
Welfare is the lead department in the Victim Empowerment Programme of the National Crime Prevention Strategy. Emphasis will be put on empowerment programmes for women affected by rape and battering and abused children. Other areas of co-operation are: the National Plan of Action for Children, the Beijing Platform of Action for Women and the report of the Conference for the Elimination of Discrimination Against Women.
Other achievements
The amalgamation of social security systems, started in March 1996, was due for completion by December 1996. Parity in payments to beneficiaries has existed since April 1996; and parity in subsidies has been achieved
A Flagship Programme for Unemployed Women with Children under Five has been launched in three rural areas in the Northern, North-West and Western Cape provinces. It will soon be launched in other provinces. The programme will initially create sustainable economic opportunities for unemployed women, with about 1 800 benefiting initially.
Challenges
Backlogs of welfare needs and concentration of resources on minority communities make transformation a major and sensitive task. The Department has undertaken to address provincial lack of capacity and infrastructure. Amalgamating the social security systems is complex and challenging.
Concern over children still in prison is being addressed by monitoring the impact of Section 29 and urgently implementing early intervention programmes, such as the establishment of arrest, reception and referral centres, improvement of probation services and Secure Care facilities.
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