Marius Fransman, Provincial Legislature
23 May 2006
Lest we forget
Honourable Speaker
Premier Rasool
Cabinet colleagues
Honourable Members of the Legislature
Friends and guests
Comrades
Mr Speaker, I rise to address this House not only because it is my first
Budget Speech in this portfolio entrusted upon me some 10 months ago, but also
because this year is a special year in the history of our young democracy. On
16 June we will celebrate 30 years of the Soweto uprising; and in August 50
years of the Women's March to the Union Building in protest against the Pass
Laws. The commemoration of these events, which were key contributors to the
downfall of the apartheid regime as well as the birth of our new democracy,
gives us an opportunity to reflect on the enormous sacrifices made by the young
people, women and many communities in this country to ensure that today we can
enjoy what President Mbeki has called the "Age of Hope". The commemoration also
enables us to reflect on what contribution we have made in whatever capacity we
may be, to the realisation of the dream of the young people of 1976, the women
who marched in 1956, as well as all those who sacrificed their lives so that we
could become a proud, strong and united Nation.
We dedicate this year's Budget Speech to Dullah Omar, a humble servant of
the people, whose entire life was dedicated to ensuring that the lives of those
who perished in the struggle against apartheid were not lost in vain, and that
the dreams of those who had come before him were kept alive and realised. He
worked tirelessly to not only bring the apartheid regime down, but also build a
strong foundation for our young democracy. Despite his failing health, he
applied himself in an outstanding way as the Minister of Transport to issues of
public transport and road safety. Paying tribute to him at the Dullah Omar
memorial lecture dinner at the eighth world conference on Injury Prevention and
Safety Promotion, Minister of Transport, Jeff Radebe, said:
"One of the many legacies that Dullah Omar bequeathed to our country was an
unswerving devotion to a people-centred vision of rights and responsibilities,
enunciated through partnership and co-operation. Always a realist, he
acknowledged the need for firm and fair prosecution of offences, but never
believed that laws and regulations should replace the active commitment and
hard work of citizens to make life and living better for all."
At the memorial meeting for Dullah Omar in 2004, the President said:
"We have an obligation to remain true to the goals Dullah Omar set himself
while he lived. We owe it to him and others who dedicated themselves to serve
the people of South Africa, ready to lay down their lives, to ensure that we
eradicate poverty and underdevelopment, racism and sexism in our country,
realise the renewal of Africa, and contribute to the construction of a new
world order of equality among the peoples and a shared prosperity.
âTo achieve these objectives, we need the quiet courage of a Dullah Omar
without seeking fame and acclaim. We need the steadfast attachment to principle
of Dullah Omar, without expectation of personal reward. We require the
unwavering focus on the interests and aspirations of the masses of the people
of a Dullah Omar. We must cultivate the use of our minds and skills to advance
the interests of the people rather than our selfish desires, as did Dullah
Omar."
With the resources, both human and financial, at our disposal in my
department, I believe that we are in a unique position to contribute to the
building the kind of society that Dullah Omar strove for in his lifetime: a
non-racial, democratic and just society. We have the will to fight
unemployment, poverty and underdevelopment, which are threats to the Age of
Hope. We have the appetite to contribute to the construction of a new world
order of equality among people and shared prosperity. And we have a plan: The
Strategic Infrastructure Plan.
Anchoring Ikapa Elihlumayo
Honourable Speaker, as this house is already aware, my department is
responsible for the development of the Strategic Infrastructure Plan (SIP),
which is one of the lead strategies in Ikapa Elihlumayo, the Growth and
Development Strategy for the Province. The SIP is designed to ensure the entire
infrastructure necessary for the growth of the province is identified and
delivered in good time. It is also aimed at creating economies of scale through
the alignment of priorities and infrastructure budgets of government
departments, state-owned enterprises and agencies; and informing long-term
investment by the government and private sector to stimulate and support social
and economic development in the province.
The first draft of the SIP was presented to Cabinet in July last year. Since
then, extensive research has been undertaken to improve its depth and enrich
its content. It is currently being taken through a consultative process with
key role-players and stakeholders in both public and private sectors. It is our
intention to publish and launch the SIP in July of this year.
While the SIP deals with a total of 13 infrastructure sectors, from energy,
to water, sanitation, transport, education, and many others, it has also
identified five strategic thrusts, which should be given special attention.
These thrusts are: efficient public transport system, effective and timeous
asset management and maintenance, provision of basic sanitation to all,
sustainable resources and training, education and research. Within these
strategic thrusts are five integrated priorities, which are considered when
evaluating projects: growing prosperity, expanding opportunities, attaining
sustainability, building communities and improving well-being, and fostering
creativity.
As a means of identifying projects to be included in the SIP, an evaluation
model has been developed. This model is based on the triple bottom line
(people, place and planet) principle to ensure alignment with the Provincial
Spatial Development Framework (PSDF), and the Micro-economic Development
Strategy (MEDS). It may be used to evaluate infrastructure projects to be
undertaken by any agency, sphere of government or private sector.
Honourable Speaker, in my department we firmly believe that through the SIP
we shall not only contribute to Ikapa Elihlumayo, and the achievement of the
Millennium Development Goals, but also that in a very real way we shall
contribute to the realisation of the dreams of the young people of 1976 and in
the present generation. Through the provision of safe and accessible public
transport and infrastructure, and creation of opportunities for women in the
delivery of infrastructure, we will contribute to the enhancement of freedom
for women in line with the aspiration of the women who marched in 1956. By
addressing the scourge of poverty and underdevelopment we will truly honour the
memory of Dullar Omar.
I want to take this opportunity to thank those who directed the research,
reviewed the material, and participated in our workshops. Special thanks go to
Jacqui Gooch in my department who has led this process, as well as to Professor
Francis Wilson and Dr Mamphela Ramphele for their wisdom and counsel.
Human capital in my department
I am pleased to announce that my department has implemented far-reaching
initiatives around scarce skills in the engineering and built environment
fields as we believe this is the key to unlocking economic growth through
infrastructure. Another threat to this Age of Hope is the shortage of
appropriate professional and technical skills in the engineering environment.
South Africa has 14 900 professional engineers of which approximately 10% is
being lured to other parts of the world.
It therefore means that a major intervention is required to address this
issue. A start has been made in February of this year we launched with our late
Minister Stella Sicgau the Masakh' iSizwe Let's Build the Nation Project at a
Gala Dinner where we awarded 130 bursaries to students studying in the
engineering and built environment scarce skills fields. This marks a drastic
increase as compared to the annual average of 10 bursaries, which have been
allocated by my department in previous years. Indeed over the Medium Term
Expenditure Framework (MTEF) period we will have awarded at least 250 bursaries
at a cost of R21 million a massive investment in addressing the critical
shortage of scarce priority skills. At the same time we are continuing with our
comprehensive approach to acquiring the necessary skills through the
recruitment of foreign-based professionals, the appointment of retirees to
provide mentoring support to young professionals and students, and constant
lobbying of the Department of Public Service and Administration for the payment
of a Scarce Skills Allowance.
I believe this approval of this allowance is imminent. Through the Masakh'
iSizwe Center my department is linked to the Accelerated and Shared Growth
Initiative for South Africa (AsgiSA), and particularly to the Joint Initiative
for Priority Skills Acquisition (JIPSA) led by the Deputy President.
The first meeting of the Advisory Board of the Centre will be held at the
end of this month, and I am honoured to announce that Dr Mamphela Ramphele has
agreed to chair this body. Other confirmed members are Allyson Lawless, former
President of South African Institute of Civil Engineers (SAICE), Vusi Khanyile
Chief Executive Officer of Thebe Investments, and Professors Martin Hall,
Arnold Schoonwinkel and Anthony Staak of University of Cape Town, University of
Stellenbosch and Cape Peninsula University of Technology, respectively. As its
name indicates, the vision of Masakh'iSizwe goes beyond the offer of bursaries
to developing cadres of "Nation builders". Together with Higher Education
Institutions in the Province, special attention will be given to the values and
attitudes necessary for developing the economy, promoting social justice and
sustaining the natural environment. This supplementary curriculum will involve
service opportunities in communities trapped in the "second economy".
The Letshema campaign will be launched in my department in Construction
Week, the first week of July, where we will be going with managers and the
Masakh'iSizwe students, to help people in Project Consolidate areas with
construction work. This will be a voluntary program where managers and students
will be able to mix and share experiences with local rural dwellers and/or
people staying in informal settlements.
My department has a dedicated team in the Human Resource Development
component focusing on work-integrated learning. This team has been widely
recognised for its work, having won the South African Association Consulting
Engineers (SAACE) Award for Excellence in Cooperative Education for the past
four years, and last year was one of the ten finalists for the Premier's
Service Excellence Award. This team will be incorporated into the Masakh'
iSizwe support unit.
Change Management
Mr Speaker, shortly after my appointment as Minister in this portfolio I
instituted a Change Management process in the department, to strengthen
leadership, management expertise, and performance management. In addition a
DPSA approved team of service providers has been appointed to assist with
enhancing performance management. This involves a detailed review of the job
descriptions of all Senior Managers aligning these to the strategy of the
department. This process has started and will enhance the spirit of
accountability and improve the synergy between prevailing skills and the
requirements for the post.
I am also pleased to record that the review of the business processes as
part of this Change Management has resulted in a total review of the
departmental strategy and organisational structure to give effect to that
strategy.
Economic infrastructure
Honourable Speaker, in the last financial year my department received
approximately R1,7 billion and today I can announced that the management and
implementation capacity have improved so much that we were able to spend nearly
all the budget. Only 1,3% of the budget remained unspent. We have been
allocated R2,064 billion for the 2006/07 Financial Year to ensure that we can
deliver and maintain critical economic infrastructure. This represents a share
of 11,2 percent of the provincial budget, and a 20,6 percent increase as
compared to the original budget for 2005/06.
By far the largest share, namely 57,5 percent or R1,187 billion, of the
funds available to my department is allocated to Roads Infrastructure.
Investment in Provincial road infrastructure directly supports the government's
program for accelerated and shared growth. This provision for road
infrastructure is funding earmarked by the Provincial Treasury to ensure that
spending on road infrastructure over the MTEF will be held at above R1 billion
per annum. The allocation for Public Transport at R208 million represents a
negative growth as compared to the original budget for 2005/06. The budget
allocation, however, rises steadily over the medium term. 2006/07 is to be a
year of consolidation for public transport during which time public transport
operational and infrastructure plans will be finalised to better inform
budgeting for future years. The remainder of the budget is allocated to traffic
management (R203 million), Community Based Programs (R68 million) and
Administration (R67 million)
Public transport
Mr Speaker, a bird's eye view of the challenges signals an estimated 1,6
million daily trips to work in the province. 36% of trips are made by public
transport, i.e. a total of 574 000 trips. Challenges include the proper
planning, coordination and implementation of an integrated public transport
system that is safe and reliable. Now much has been said about this over the
past few years and the next three years will have to be focused on the
realisation of these objectives. As a demonstration of our eagerness and
preparedness to play our role as the Premier has directed that we do in this
regard, I would like to share some of the initiatives that my department will
be driving.
The department has been steadily working on a programme for improving public
transport for all people in the province, but with a very specific focus on
especially the metropolitan area. This is the Public Transport Improvement
Programme (PTIP). The PTIP consists of four key pillars, namely Mode and
Operations, Policy and Institutional Aspects, Land Use and Sustainability, and
Perception and Awareness. Once all these elements are improved, we will have
achieved our vision of an accessible, affordable, sustainable, safe and
equitable system. A critical element of the plan is the restructuring of
subsidised services within the City of Cape Town to take account of the entire
road based public transport modes i.e. bus and taxi, with linkages to the rail
network.
All bus and taxi services that are currently being have been restructured so
as to focus on key development and mobility corridors e.g. the Klipfontein
Corridor, Main Road, Koeberg Corridor, Wetton-Lansdowne Corridor, Modderdam
Road, etc. The department intends to tender the first contract package, which
will be the Klipfontein Corridor package, during the second half of 2006.
To support specific economic sectors such as call centres and BPO's, the
services will be operating for at least 18 hours a day, seven days a week, with
increased services during the off-peak times than are currently operated by
Golden Arrow Bus Services. Although there is a focus on the metropolitan area,
the department is not forgetting the rest of the province.
A conceptual design has been developed for an intervention in the George
area, in line with the PSDF's focus of an area in the province for further
development. The George mobility strategy focuses on the provision of a
subsidised, scheduled service in the George Municipal area, with a focus on the
Sandkraal and York Street. Sandkraal road is to be upgraded to improve
pedestrian and cycle spaces and to provide dedicated public transport lanes.
Initial talks have also begun with the National Department of Transport to
source further subsidy funding for these services. A further mobility strategy
is in its infant stages for the Mossel Bay area. The PSDF also highlights
Saldanha Bay as an area for growth in the Western Cape. During the 2006/07
financial year, the Public transport branch will be developing a Mobility
Strategy concept for the West Coast area, with the focus on the Saldanha Bay
region.
The problems at the Provincial Operating Licence board has been well
documented and it includes poor management, no proper tracking of decisions
taken and lack of alignment between compliance of operators, recommendations by
the City and the impact of permit allocations on routes. In an effort to turn
around the operation of the Provincial Operating Licence Board we will be
launching a drastic intervention in the next few months. A new board with a new
operational strategy will be announced end of May. Thus the focus will not only
be on the appointments but more importantly to the systems and phases in
decision-making of the Board in a transparent and accountable manner. We will
be implementing the first phase of a Shared Service Centre, the first in the
Western Cape.
New businesses processes, new application procedures, linkage with South
African Revenue Services (SARS) compliance of all operators, pre-qualification
process all make for improved service delivery and implementation of the Batho
Pele principles. A significant change will also be the separation of process
between the taxi approvals and that of tourist operators.
Though a challenging period where we have again experienced violence in this
industry with so much potential, the Western Cape was able to successfully
convert more than 95% of taxi permits to operating licences. This was only
possible because we were able to get the support of the democratically elected
Western Cape Taxi Council behind this process. On the 1 July 2006 the Taxi
Recapitalisation program will be starting in order to address the safety
requirements of the industry. Any new vehicles to be purchased and licensed
will then have to comply with the new safety regulations. A voluntarily process
will also commence of those wanting to exit the industry and scrapping of the
older dangerous vehicles on our roads.
Honourable Speaker, a safe and secure Public Transport system is vital if we
are to provide the best possible service to our Communities. Our people deserve
a better way to travel, they deserve to know that they will not be caught in
the cross-fire between warring minibus taxi groups, they deserve to be secure
in the knowledge that Government is doing all it can to make the environment
safe. To this end we will be launching and rolling out our safety and
compliance strategy during within the next three months.
World Cup 2010
Honourable Speaker, the President mentioned the need to be ready to host
Federal International Football Association (FIFA) World Cup 2010. Public
Transport plays a key role in this regard and the operational plan for the
metropolitan area needs to be rolled out to support this event.
The Premier indicated that the World Cup 2010 event is both a catalyst and a
milestone for investment in infrastructure; it is also the milestone by which
the improved public transport system has to be in place. Now that Green Point
Stadium has been announced to be the main match venue, it is imperative that
the entire precinct linking the station with the stadium is upgraded.
Improved walkways, with places to stop and rest along the way, increased
lighting with safer and greener walkways. A public transport distribution
service is required within the City centre and one is included in the
operational contracts, however the services will be increased to meet the
demand in 2010. In addition to the public transport requirements within the
City centre, the Cape Town International Airport domestic terminal is to be
upgraded to cater for the increased number of visitors to Cape Town. The
department will be involved in upgrading the airport interchange on the N2 and
providing dedicated public transport lanes along the N2 towards the CBD for
public transport vehicles.
Furthermore, although Athlone Stadium is no longer a match venue, it will
still be used at least as a training venue, during the WC2010. The rollout of
the first contracted services along Klipfontein Corridor will support this.
Roads infrastructure
Honourable Speaker, I have already indicated that the allocation for road
infrastructure has been earmarked and is to be held at above R1 billion
annually for the MTEF period. This will go a long way toward enabling us to
address key corridors, which are critical for the movement of freight within
the province and between our province and other provinces and countries to
support economic growth. In the City of Cape Town, planning has already started
for the improvements to the interchanges linking the N1 corridor and the Port
of Cape Town. The Koeberg and Lower Church Street interchanges, as well as
Marine Drive are all receiving attention as part of improving access to the
Port and generally reducing the cost of doing business. This is a collaborative
effort between my department, the City of Cape Town, and the National Port
Authority. The access to the Port of Saldanha is also due to be improved. More
freight corridors will be identified as part of the Provincial Freight
Logistics strategy.
The allocation received for road infrastructure will also go some way to
enable us to arrest further growth in the maintenance backlog, which is
currently of the order of R2,4 billion. We are making steady progress in
addressing critical links in the Provincial network through rehabilitation,
reconstruction and resealing. We have recently completed the following
projects:
* rehabilitation of Main Road 201 between Paarl and the N1
* rehabilitation of the N7 between Piketberg and Citrusdal
* Viljoenshoop Road
* Hemel-en-Aarde Intersection
* rehabilitation of sections of the N1 and N2.
For the current Financial Year, the following are Flagship projects on which
we are focusing on the:
* rehabilitation of the second phase of the N1
* rehabilitation of the N2, Construction of BMT lanes and upgrading of the
Airport Interchange
* upgrading of the Gans Bay-Bredasdorp gravel road to a surfaced standard
(Phases I & II)
* construction of the Potsdam Interchange on the N7
* reconstruction of Trunk Road 2 - Somerset West to Sir Lowry's Pass
* reconstruction of the road from Wellington to Hermon
* rehabilitation of Trunk Road 1/ Section 1: George - Outeniqua Pass
* upgrading to surfaced standard or Main Road 538 between Elandsbaai and
Lambertsbaai
Honourable Speaker, my department is also busy with the planning, design and
construction of 39 projects with a value of more than R10 million each. Our
network stretches over the whole Western Cape and reaches the most remote areas
where poverty and hardship is devastating. I have given my staff a very clear
signal to start improving access to the remote rural areas and the upgrading of
the Marcuskraal road, Algeria road, Wupperthal road, Hemel-en Aarde road and
Bereaville (Genadendal) roads to a surfaced standard are already in the
pipeline for this financial year.
An amount of R 574,2 million has been earmarked for maintenance. The saying:
"Prevention is better than cure" is absolutely applicable to our situation in
the Western Cape. To reseal a road costs at least nine times less than
rehabilitation at a later stage. Approximately 348 km of roads will be resealed
during this financial year. For the same reason we consider re-gravelling of
our unsurfaced roads as the second highest priority and we will be
re-gravelling approximately 660 km of roads.
The three District Engineer's Offices in Paarl, Ceres and Oudtshoorn are
responsible for the maintenance of our trunk and main roads, whilst the five
District Municipalities act as agents on our behalf for the maintenance of the
divisional and minor roads. A total amount of R230 million will be transferred
to the District Municipalities.
Social infrastructure
Over and above the R2,064 billion allocated to my department for economic
infrastructure, a further R279 million and R325 million has been made available
this financial year for education and health infrastructure, respectively. With
effect from 1 April 2005, the funding for infrastructure for the departments of
Education and Health is no longer reflected on the budget of this department
but on the budgets of the two respective departments. My department continues
to be responsible for the construction and maintenance of provincial building
infrastructure.
I am pleased to announce that service delivery agreements have been signed
between my department and the Departments of Education and Health respectively.
Although implementation of these service delivery agreements has not been
without challenge I am satisfied that the working relationship between the
three departments is satisfactory.
Health infrastructure
Honourable Speaker, during the past the year my department, specifically
Public Works, successfully executed construction and maintenance projects at
health care facilities throughout the Western Cape Province. Some of the
facilities where construction and renovations occurred during the past
financial year are the following:
* Lentegeur Hospital Phases one, two and three
* Gugulethu AIDS clinic
* Worcester Regional Hospital Trauma unit
* Clanwilliam Place of Safety
* Brewelskloof Hospital Upgrade kitchen & office block
* Bishop Lavis CHC - Renovations
* Groote Schuur Hospital Repair various roofs
* Mowbray Maternity Hospital Electrical installation
* Swartland Hospital Repairs and Renovate B/rm, admin
Honourable Speaker, both Mr Strachan and Carlisle for years raised concerns
around the problems in the construction of Valkenberg Admission ward and the
Western Cape Nursing College. Today it is my pleasure to inform this House that
the construction of these two sites has been completed and handed over to the
health department. The construction and upgrading of the following hospitals
under the Hospital Revitalisation Programme is progressing well:
* The revitalisation of the George Regional Hospital has been
completed
* Worcester Regional Hospital Revitalisation worth R124,4 million and scheduled
to be completed in March 2007. The new Trauma Unit of the hospital has already
been handed over to the Department of Health, and the rest of the project is
progressing
* Vredenburg Regional Hospital Phase One has been virtually completed, and
planning has commenced on phase two
* The tender for the upgrading and extension of Paarl Hospital has been awarded
to the value of R227 million and the construction is about to commence on this
major infrastructure project
* The Planning of Khayelitsha District Hospital has commenced, and a suitable
site has been identified
* The planning stage of the Mitchell's Plain District Hospital will also
commence during this year.
Other health infrastructure projects, which have either been completed or
are on the verge of being completed, include the following:
* Valkenberg Admission Ward completed
* Elsies River Clinic completed
* Eeste River Workshop and Stores completed
* Joster Pharmacy and administration Block completed
* Western Cape Nursing College completed
* 400 Maintenance projects completed
* Mowbray Maternity Hospital to be completed September 2006
* Philippi Clinic completed to be completed September 2006.
Education infrastructure
Mr Speaker, during the past year my department promised to accelerate
infrastructure delivery under the social sector and I am proud to announce that
this promise has been fulfilled and I report as follows:
The opening of Doors of Learning was achieved as 16 new schools, one school
hostel and about 40 additional classrooms were built. In addition we provided
decent sanitation and water supply to schools in the rural areas, thereby
impacting positively on the lives of the township and rural poor. The 16 new
schools opened added more than 22 000 classroom spaces for the Western Cape
Learners.
I was however concerned that the mandate of my department is only the
construction of the school infrastructure itself. After numerous meetings
between Minister Dugmore, and myself we have decided to broaden the mandate so
that it also can include the upgrading of the school grounds and playing fields
to a particular standard. The budgetary implication of this will soon be
finalised. Furthermore, in order to retain the momentum of accelerated
infrastructure delivery with regard to school infrastructure, the department,
in collaboration with the Department of Education, intends to complete another
seventeen schools by August 2007, namely:
* Highbury SS (to be completed June 2006)
* Du Noon SS (June 2006)
* Samora Machel Weltevreden PS (July 2006)
* Wallacedene PS (June 2006)
* Kuyasa Primary School (May 2007)
* Smutsville Primary School (May 2007)
* Nomzamo Primary School (June 2007)
* Table View Primary School (June 2007)
* Khayelitsha and N2 Gateway three Primary Schools (August 2007)
* Khayelitsha and N2 Gateway three Secondary Schools (August 2007)
* Brackenfell Secondary School (August 2007)
* Khayamandi Secondary School (August 2007)
* Vredendal Primary School (August 2007)
* Zwelihle Primary School (August 2007)
A special thank you to my colleague, Minister Dugmore, for being sensitive
to the needs of Expanded Public Wroks Programme (EPWP) in maintenance of
schools. Through this Saamstaan initiative we will be rolling out maintenance
work benefiting 2 000 labourers.
General building infrastructure
With regard to general building projects, the following are some of the
successful projects completed:
* Emergency Medical Management Centre completed at Tygerberg Hospital
* Head Office accommodation for ten Departments completed
* Kuilsriver EMDC and CEI completed
* Kuilsriver Sport School Phase one completed
* FET Centre for Agriculture completed
* Elsenburg Hostel completed
* 9 000 day-to-day maintenance projects completed
* 552 scheduled maintenance projects completed
The following major projects are planned for completion this financial
year:
* Beaufort West Traffic Centre and Ambulance Station
* Cape Town: New office accommodation for Public Transport and Community
Safety
* Stellenbosch: FET Centre at Elsenberg for Agriculture
* Stellenbosch: Helderfontein Veterinary Laboratories for Agriculture
* Stellenbosch: Elsenburg Block D Administration offices for Agriculture
* Cape Town: Gene Louw upgrading of offices for Community Safety
Speaker, I am particularly proud of our building infrastructure achievements
this year as it not only illustrates my department's ability to deliver, but
more importantly it demonstrates a clear commitment to contribute in a
meaningful way to the Accelerated and Shared Growth Initiative of Government
(AsgiSA). In the process we are able to assist our client departments with
improved service delivery, but we are also contributing to infrastructure-lead
growth that accelerates job creation, thereby making the Millennium Goal of
halving poverty by 2014 more realistic and achievable.
Implementing Black Economic Empowerment in the built sector
The Branch Public Works are continuously implementing the Broad Based Black
Economic Empowerment (BBBEE) strategy through its adherence to the department
Preferential Procurement Implementation Plan in the awarding of tenders and in
the appointment of professional service providers in the built sector hence in
this financial year as at February 2005:
* 63% of all professional services procured have been from previously
disadvantaged individual (PDI) professional service providers to a total amount
of R47 791 825
* 81% of all tenders awarded to contractors were awarded to PDI Contractor
enterprises to the value of R256 126 647
* 47% of all tenders awarded to contractors were awarded to enterprises with
Women Equity to the total value of R148 408 462.
Thus Public Works have implemented National and Provincial Government policy
with regard to Black Economic Empowerment (BEE) to the fullest and have yielded
positive results with regard to the transformation of the built sector within
the Western Province. A special focus will be given to both Women and Youth in
Construction. Over the next three months seminars and workshops will take place
with departments and municipalities dealing with infrastructure delivery, and a
Women in Construction Conference will take place in August 2006, where the new
policy for the Western Cape will be adopted.
Property management
The department, in accordance with the Provincial Growth and Development
Strategy (PGDS), as well as the Strategic Infrastructure Plan (SIP), has a key
responsibility to utilise the provincial property portfolio in a manner that
optimises the unlocking of the economic and social benefits of the portfolio.
We therefore strive to strategically use provincial properties as a catalyst to
guide development, drive transformation and instil confidence, in especially
under-developed areas, to redress imbalances of the past and to promote
economic activities.
To this end the department embarked on a process to ennoble and/or dispose
of properties of strategic value to act as a catalyst for significant private
sector investment in infrastructure development, with its resultant
contribution to job creation and poverty alleviation.
A few examples of these are the following:
* The Somerset/City Hospital site, where a draft development framework for the
site has been approved by the provincial Cabinet. This site has enormous
potential for mixed-use development, and links in very closely with the
development plans for the region, given its proximity to the planned 2010 World
Cup stadium in Green Point. The proposed development plans also includes plans
for a significantly upgraded Somerset Hospital on the site. The rezoning
process for these properties is currently underway.
* The old Conradie Hospital Site in Pinelands has been disposed of during the
year. The contract was concluded with a BBBEE company who will develop the site
as a mixed-use development, incorporating the principles of Sustainable Human
Settlements. An amount of R80 million was offered and well as a further R10
million once the necessary rezoning has been approved.
* Various individual even has been disposed in George "The Bult" after the
redundant school property was redeveloped and properties were sold at market
value.
* A property transaction between the City of Cape Town, the Provincial
Government and Media 24 has also been finalised during the current year. This
consolidation and re-subdivision of properties will enable the City to dispose
there site next to CONVENCO, Media 24 to develop new head quarters and the
Provincial Government to dispose their site for development. It is estimated
that the redevelopment of this site alone will result in an infrastructure
investment of more than R1 billion over the next few years.
The National Department of Public Works has recently published the
Government Immovable Asset Management Bill. This act will provide for both
national and provincial governments to improve the management of their
immovable assets. This bill will give the provincial department who acts as
custodian of the Provincial Property Portfolio more power to ensure that users
of provincial properties use these properties optimally.
Revenue generation
Motor vehicle administration
* No increases in licence fees for 2006/07.
* Conversion to secure number plates to reduce vehicle crime, enhance law
enforcement and to ensure that unregistered vehicles can easily be detected on
our roads.
* Reducing motor vehicle licence debt by implementing more stringent measures
to identify debtors and to effectively deal with the recovery of these
debts.
* The implementation of legislative and other measures to effectively deal with
the cross-border registration and licensing of motor vehicles where Western
Cape vehicles license in other provinces with a lower licence fee
structure.
* Through our own Compliance and Monitoring Unit identify and address
fraudulently activities in relation to the testing of driver fitness and
vehicle roadworthiness.
* Introduction of an electronic driving licence booking system to better
coordinate the allocation of appointments in an endeavour to address the
currently long waiting list to obtain a learner's or driving licence
appointment. At the same time any fraudulent activity between examiner and
person taking the test will be detected.
Government Motor Transport (GMT)
Honourable Speaker, the Government Motor Transport trading entity, as a
strategic business unit, we will continue to deliver cost effective motor fleet
services.
The following new initiatives will be introduced shortly to ensure that fleet
costs are contained and accommodated within departmental budgets:
* The vehicle tracking project will be finalised and implemented across the
total fleet. It will therefore be a facility that will be managed within the
Management Bureau aimed to maximise operational efficiency and to act on panic
alarms in which case the action will contribute to safety and security for
drivers of State Owned vehicles. Furthermore, movement of vehicles will be
closely monitored to ensure that only authorised trips are permitted, alleged
misuse reported by the public is tracked and followed-up as well as recovery of
stolen or hi-jacked units is performed thus contributing to a cost effective
one-stop service.
* Focussed management reports will be supplied to clients via a Management
Bureau that will be launched within the next month to serve as a single point
of entry. The service will later be rolled out on a 24/365/7 basis. Manual and
sometimes incorrect and delayed log reporting will be replaced with electronic
activity reports on an online basis. These services will be offered as part of
GMT's commitment in building up expertise within a provincial transport
environment to promote full service delivery on a national level in
collaboration with external partners.
* The present GMT billing process will be supported with up to date financial
data to ensure that expenditure trends and cash flow projections can be done
accurately. This will promote improved accountability.
* Risk modelling and reporting will be rolled out to pro-actively highlight
driver behaviour and other risk areas for departmental follow-up.
* Vehicle re-engineering will be researched to curb unnecessary capital cost
spending and to ensure a fleet that meets all user requirements.
* The sophisticated electronic fleet management and other related systems
developed by Government Motor Transport will be enhanced further and fully
utilised to the benefit of all client departments.
* The expertise, capabilities and systems of GMT will be made available to
other organs of State to prevent unnecessary and duplicated development
cost.
* The available resources will be further developed into a dynamic organisation
that will be responsible to play an active role in support of the Shared Growth
Battle Plan already announced by the Premier earlier this year. Existing
processes and resources would have to be reshaped to ensure better value for
money on a sustainable basis.
Expanded Public Works Programme
One of the key thrusts of the AsgiSA strategy, in bridging the gap between
the first and second economy, is to increase the Expanded Public Works
Programme (EPWP)targets for our nation, to assist in halving poverty by
2014.
The province needs to rise to this challenge and we are currently building
dedicated capacity within the Department of Transport and Public Works to
co-ordinate the growth of the Expanded Public Works Programme throughout our
Provincial Departments and Local Government. Although we have exceeded our
annual Expanded Public Works Programme target of 25 000 work opportunities per
annum for this year, and my Department has contributed over a quarter of these
work opportunities, we can still improve on this. For the 2006/07 financial
year the target is set at 40 000 work opportunities.
This year the department will lead the development of the Provincial
Expanded Public Works Programme strategy that will outline how Expanded Public
Works Programme will contribute to halving poverty in the Province by 2014. We
will work with all of the Sector Departments, Department of Local Government
and Housing and local municipalities to arrive not only at the increased
targets, but also at how we, in the words of President Mbeki on State of Nation
Address, 03 February 2006 will ensure that "resources for the Public Works
programme will be pooled to ensure maximum impact".
While I shall not pre-empt this strategy, I do believe that improved and
increased provincial Expanded Public Works Programme can reach? Of the
unemployed people of the Western Cape by 2014, that is 300 000 people at 37500
jobs per year. As part of this strategy, we will be initiating the development
of a comprehensive unemployed database in the province so that we may target
the neediest for those work opportunities and track the impact on their
progress out of poverty. We will also be focusing on the development of
survivalist small businesses through a "Stepping Stones" type initiative that
builds the capacity of those businesses through training, ring fenced contracts
and partnerships with Financial Institutions for much needed support.
One of the key programmes in skilling our youth is the learnership 1000
programme that aims to provide opportunities for unemployed youth in the
Western Cape to enable them to engage more effectively with the labour market,
either through improved opportunities for employment or markets for Small
Medium Micro Enterprises (SMMEs). This is in line with the human and skills
development strategies of provincial and national government as well as the
Western Cape Spatial Development Framework. The emphasis on the learnerships in
the built environment speaks to the primary skills development objectives of
AsgiSA. These opportunities are provided for through an intergovernmental
initiative, with the Western Cape Department of Transport and Public Works as
the lead department in partnership with other provincial departments and local
government.
All provincial departments and local governments have indicated their
willingness to partner this programme. We have also received excellent
cooperation from the relevant national and provincial SETAs, as well as the FET
colleges and Western Cape Education Department. Over 30 000 applications were
received for these limited positions, mostly from unemployed matriculants. This
shows the hunger our youth have for advancement and further learning
opportunities. We are in the middle of selecting the final applications and
will emphasise those who are committed to building strong commitments in other
areas.
The Learnership 1000 programme will be launched as part of the youth activities
in June 2006.
In conclusion, we should never lose sight of the aim of all the programs on
which I have reported, namely, to transform the daily lives of ordinary people
trapped in the second economy. Behind the statistics are real people who are
benefiting from our construction procurement processes, from the EPWP projects,
from Masakh'iSizwe, from the Adult Basic Education and Further Education and
Training programs being run by my department.
I think of people like Edward du Plessis who was a gardener and could not
read or write eight years ago. Today he is a Senior Foreman at Leeuwenhof, a
position which involves administration work. A year ago Stoffel Mouries of
Robertson was struggling to find work; he is now running a healthy business
because he was awarded a sub-contract to lay storm water drains for the town's
public works committee.
Shireen Williamson is a single mother of two girls who used to live in Hinds
Park informal settlement and now lives in Mitchell's Plain. She has also
managed to purchase a second hand bakkie, which she herself repaired. She uses
this bakkie to transport goods for a Spaza shop which runs from her home. She
was able to start her own business from the wage earned from participation in a
Saamstaan school maintenance project.
Angelina who has had previous employment was chosen to work on a road
maintenance program. After gaining experience and new skills in road
construction she now runs her own small construction company. With the
assistance of the community social facilitator, she is now project managing the
same project that she started working on. Mabel Ngcongolo is now able to pay
the school fees for her children after a short period working as a construction
worker on a road-building project.
I want to thank you as members of the legislature for your collective
wisdom, and a special thanks to the Standing Committee, led by Mr Strachan, for
the many contributions in shaping a better infrastructure and transport
strategy for the Western Cape. I now want to give a special thanks to my
department led by the HOD, Thami Manyati, and his management (all of you) for
your ability to embrace change and your willingness to be part of new
management processes introduced the last few months. Without you, this budget
is not possible.
Let us not forget that it was not for faceless masses that Dullah Omar
dedicated his life. He struggled to rid the country of a racially oppressive
and economically exploitative system so that all people in South Africa, and
that includes you and I, could enjoy equal rights and where all could share in
the Country's wealth.
I thank you
Issued by: Department of Transport and Public Works, Western Cape Provincial
Government
23 May 2006
Source: Western Cape Provincial Government (http://www.capegateway.gov.za)
