M Shilowa: State of the Province Address

State of the Province Address of Premier Mbhazima Shilowa,
Gauteng Legislature

19 February 2007

Speaker and Deputy Speaker
Leaders of political parties
Members of the Executive Council
Mayors and other leaders in local government
Heads of Departments
Managers and CEOs of Gauteng state agencies
The Provincial Commissioner of the South African Police Services (SAPS)
Your Excellencies, Ambassadors and High Commissioners
Honourable Members
Distinguished guests
Friends and comrades
The People of Gauteng

We take this opportunity at the opening of the Fourth Session of the Third
Legislature to congratulate the Soweto Gospel Choir for winning a coveted
Grammy Award for their second album, Blessed. Two members of the choir, Ms
Beverly Briar and Ms Thando Jiyane, are in the house today and, on behalf of
the people of Gauteng, I would like to extend our congratulations to them and
their colleagues on their success. The award once more confirms the depth and
richness of our culture and heritage. We need to continue to nurture and
develop more talent to bring further recognition to our province and our
country.

On this occasion, we also pay tribute to Mama Adelaide Tambo who we recently
laid to rest. Mama Tambo is one of those unselfish, committed and dedicated
heroes and heroines of our people who laid the basis for the achievement of a
free South Africa. To her we say: We will not betray your ideals. We will
continue to work tirelessly to ensure a better life for all.

At the opening of the first session of the third legislature following the
2004 provincial elections we committed ourselves to work with all stakeholders
to respond adequately to the challenges of unemployment, poverty and
underdevelopment.

We outlined a five year programme to:

* stimulate faster economic growth and drastically reduce unemployment
* fight poverty and build secure and sustainable communities
* develop healthy, appropriately skilled and productive people
* deepen democracy and nation building and realise the constitutional rights of
all
* build an effective and caring government.

Over the past two and a half years we have, in consultation with the
relevant stakeholders, developed the following strategies to implement the five
year programme:

* the Gauteng Global City Region Perspective
* the Gauteng Growth and Development Strategy
* Broad Based Black Economic Empowerment Strategy
* the Gauteng Agricultural Development Strategy
* Gauteng Strategy for Creative Industries
* the Gauteng Social Development Strategy
* the Gauteng Safety Plan
* the Gauteng Road Safety Plan
* the Integrated Transport Plan
* the Gauteng Human Resource Development Strategy
* capacity and organisation of the State
* Gauteng 2010 Integrated Framework
* 20 Priority Townships Plan
* the Gauteng Spatial Development Perspective
* the Provincial Disaster Management Framework
* the Gauteng Housing Delivery Strategy
* the Gauteng Strategy on Competitive Sport
* revised Gauteng Youth Development Strategy 2004-09
* investing in our youngest citizens: Strategy for Early Childhood Development
in Gauteng Province 2004-2014
* Revised Institutional Framework for Youth Development and a Statutory Youth
Commission in Gauteng
* Strategic Agenda for Transport in Gauteng
* Gauteng Freeway Improvement Plan.

While we are conscious of the challenges ahead of us, we are proud of the
progress we have made thus far. In partnership with our people, we will
accelerate the implementation of all strategies to enable us to contribute to
the national goal of halving unemployment and poverty by 2014.

Our confidence is reinforced by recent positive economic and developmental
indicators. We have continued to improve the standard of living of our
people:

"The percentage of people living below the poverty line has declined from
8,4% in 2001 to 7,3% in 2002." The percentage of households living in informal
dwellings has declined from 18,7% to 14,4% between 2002 and 2005.

"The percentage of households connected to the electricity supply has been
increasing steadily from 87,6% in 2002 to 89% in 2004.

"According to Unisa's Bureau of Market Research:

* the average personal income of Gauteng residents increased from R248 564
to R327 211 between 2001 and 2006
* Gauteng residents received 34,8% of all personal income in South Africa in
2006
* Average per capita income in Gauteng was 81,7% above average
* Gauteng's per capita income grew from R28 962 in 2000 to R50 911 in 2006, an
increase of 75,8%
* the share of income received by Africans living in Gauteng increased steadily
from 37,2% to 39,6% of the total.

All of these confirm that, while some of our people still have no jobs,
shelter, water and sanitation and live in abject poverty, a better Gauteng is
in the making.

Work to grow the economy and create jobs continued apace during the period
under review. According to Stats SA, there has been a steady increase in the
number of jobs in the Gauteng economy, rising from 2,867 million jobs in March
2002 to 3,293 million jobs in March 2006. This represents an increase of 426
000 jobs. Our labour absorption rate also improved from 47,8% in September 2002
to 53,3% in September 2005.

While the increase in the number of jobs is not yet enough to provide work
for all new entrants, retrenched workers or those who are underemployed, we are
satisfied that our interventions are indeed having an impact in stimulating
economic activity and reducing unemployment and poverty. We pledge to continue
to improve our record in this area.

The agencies we created to stimulate economic growth continue to report good
progress. The Gauteng Automotive Cluster, a Blue IQ project, has created 3 000
jobs to date. Since 2004, the Gauteng Economic Development Agency contributed
to the creation of at least 7 269 jobs and facilitated much needed foreign
direct investment. The Cradle of Humankind has created 600 permanent jobs and 1
200 temporary jobs.

This is further confirmation that a better Gauteng is in the making.
In line with our broad-based black economic empowerment strategy, in 2005
provincial departments spent over R1 billion to procure goods and services from
companies owned by black people.

This is more jobs and economic opportunities being created in Gauteng. These
results tell us that, while too many of our people are still jobless and exist
in conditions of intolerable poverty, a better Gauteng is in the making.

Through continued insistence by the Gauteng Gambling Board on the need for
increased participation by black people in the economy there is now BBBEE
ownership of 44,2% in casinos and 27,5% in Totalizor. Casinos in Gauteng have
created 11 000 direct jobs and approximately 14 000 indirect jobs.

Work on the Gautrain continues to gather steam. With the Development Bank of
South Africa and Independent Development Corporation making money available to
fund the stake of SPG, the Bombela consortium's BEE component, and the
financial close with Standard Bank and Rand Merchant Bank, all parties have now
put their money where their mouth are. By the end of January 2006, 1 800 jobs
had been created and it is estimated that 20 000 more jobs will be created
during the next financial year.

This are more jobs and economic opportunities being created in Gauteng, and
further proof that, while there are still people who do not have jobs, shelter,
water and sanitation and live in abject poverty, a better Gauteng is being
born.

It is said that success breeds success. But as we set our sights higher, our
successes also have brought both achievements and challenges. As we grow the
economy and create jobs, provide better healthcare, education and housing and
focused our attention on the poor and children, we have also experienced more
challenges as more and more people continue to migrate to the province -
continuing to exert pressure on our social and economic infrastructure.

The total number of households increased by 17% from 2,475 million in 2002
to 2,983 million in 2005. This has further increased with the incorporation of
cross boundary municipalities from North West and Mpumalanga provinces.
According to Stats SA's 2006 mid-year population estimates, our population now
stands at an estimated 9,5 million.

In line with our commitment to constantly account to our people, we are
today releasing the mid term report of the Gauteng Provincial Government to
allow them to see how far we have gone to implement our five-year strategic
programme and 2014 vision.

The report confirms that, notwithstanding the great strides we have made to
respond to the challenges of unemployment, poverty and underdevelopment,
together with communities and all stakeholders, we need to put more shoulder to
the wheel to fulfil our five-year mandate and realise our 2014 vision.

The plan of action for 2007 that we are tabling today is our contribution to
growing the economy and creating jobs, improving the health, skills and
education of our people, ensuring the provision of adequate shelter and, in
partnership with all stakeholders and communities, responding positively to the
challenges of crime, especially violent crime, and poverty.

The business process outsourcing and call centre industry represents one of
the most important sectors through which new sustainable jobs can be created.
Through the work done by the Gauteng Economic Development Agency and the
Gauteng Shared Services Centre, the province has attracted 27 local and
international companies to set up their operations here. Together these
companies invested R506 million in our economy, with a potential to generate
more than 4 900 jobs.

This is more jobs and economic opportunities being created in Gauteng,
confirming once more that while there are still people who do not have jobs,
shelter, water and sanitation and live in abject poverty, a Gauteng that works
for all its citizens is rising each day.

Information and communication technology plays a crucial role in enhancing
the economic growth of our province and provides a platform for the expansion
of the call centre industry and other enterprises in the services sector. The
Department of Economic Development is working together with municipalities and
national government to improve our Information and Communication Technology
(ICT) infrastructure. We are also working with the Department of Public
Enterprises and Infranco to explore the possibility of establishing a media
centre at Nasrec in time for the 2010 FIFA World Cup.

An independent small business survey undertaken on behalf of the Gauteng
Enterprise Propeller in Gauteng last year found that one in six individuals are
involved in small business activities. The survey highlighted the need for
training and support to these small business owners as well as the development
of an "entrepreneurial mindset".

To support small medium and micro enterprises (SMMEs) and to help them
embrace new technology, we last year initiated the advanced manufacturing
technology programme in Soshanguve. During the next financial year we will
launch the Advanced Manufacturing Technology Laboratory (AMTL), which will
support the SA aerospace industry with a particular focus on materials and
production technologies. We are also negotiating a partnership agreement
between the Gauteng Enterprise Propeller and the National Small Industries
Corporation of India for the establishment of an SMME Science & Technology
Centre to provide a supportive environment for emerging technological and
knowledge-based SMMEs.

In line with our growth and development strategy, this will help expand the
knowledge-based sector of our economy and ensure that smaller enterprises
contribute to and benefit from this growth.

This will result in more jobs and economic opportunities being created in
Gauteng.

We however need to pay the same attention to the co-operative sector as we
do to SMMEs as it also has the potential to move more people out of poverty
into gainful employment and income generating activities.

With large numbers of institutions engaged in research and development
(R&D) and innovation choosing Gauteng as their preferred site of operation,
innovation will continue to be crucial to the growth and development of our
economy. The Innovation Hub buildings are now fully occupied with an increased
waiting list for accommodation. Cisco Systems has indicated an interest in
establishing a technology centre in the hub and negotiations with them are at
an advanced stage. Further initiatives to strengthen our provincial systems of
innovation include strengthening collaboration between our province and the
Department of Science and Technology. Through this collaboration, we have seen
Gauteng being included as part of the key programmes under the Co-operation
Framework on Innovation Systems between Finland and South Africa (COFISA), a
co-operation agreement between Finland and South Africa.

This 30-month COFISA programme will focus on capacity development of key
stakeholders and knowledge transfer between our first and second economies. A
critical focus will be on provincial and local government innovation challenges
in order to generate the kind of sustained economic growth and employment
levels that will help us halve poverty and unemployment by 2014.

The forthcoming FIFA 2010 World Cup holds prospects for us to provide a
world class event, while dealing with our priorities such as accelerated
economic growth, job creation, poverty alleviation, stadia, road and transport
infrastructure, and safety and security.

We have over the past financial year completed phase one of the
refurbishment of George Thabe, Sinaba and HM Pitje stadia. We plan to complete
phase two of Sinaba and HM Pitje stadia by the end of the next financial year
and ensure they comply with all the FIFA standards so that they are available
for use as practice venues for the tournament.

In preparation for the successful hosting of the 2010 FIFA World Cup in our
province, we are working with municipalities and business to develop fan parks
where members of the public will be able to view matches. In July this year the
concept of fan parks will be piloted when the Mary Fitzgerald Square in Newtown
will be turned into a fan park for the Telkom Challenge matches. The success of
the concept will also allow us to plan for cup final matches featuring Gauteng
teams that are played outside of the province.

We will at the end of March launch an integrated 2010 framework for Gauteng
to ensure that all government departments and local municipalities work
together to create a lasting legacy for the people of our province and showcase
our country to the world. We will also use the occasion to inform the private
sector on the economic opportunities that will be available.

As indicated last year, the province has won the rights to host Soccerex,
the largest football business exhibition in the world, over the next three
years. This presents us with a further opportunity to enhance our tourism
potential, brand Gauteng internationally, boost investment in our economy and
build the sport sector of the economy. It provides an international platform
for us to showcase the province's readiness to host the 2010 FIFA World
Cup.

The successful staging of the inaugural Joburg Open has once more
demonstrated our capacity to host major sporting events.

The success of the Gauteng-made film production, Tsotsi, at the Academy
Awards and the positive reception accorded to other local productions such as
Bunny Chow, Catch a Fire and Conversation on a Sunday Afternoon have brought
international attention to the local film production industry. To further
promote Gauteng as a film production hub of choice, the Gauteng Film Commission
has embarked on a marketing campaign under the slogan, "big ideas, perfect
locations" to ensure that the benefits of film and television are realised
throughout the province.

Last year saw the successful completion of the first series of Jozi H, a
Canadian-South African co-production that was filmed in Gauteng. The series
will be locally screened on SABC 3 from April 2007. According to the producers,
more than 500 jobs have been created.

According to research undertaken by the Commercial Producers Association and
Evolution, Gauteng accounted for 43% of all commercials filmed in South Africa
in 2005. With proper co-ordination and organisation, this industry has the
potential to contribute significantly to job creation and poverty alleviation
in the province. The Gauteng Film Commission will host an annual film indaba
beginning this year bringing together local and international stakeholders in
the film industry.

In addition to attracting local and international productions to the
province, we need to further transform the film and television sector and
ensure that more people from disadvantaged communities enter the sector. This
includes making funding available where necessary.

Further proof that Gauteng is the international media capital of Africa is
the launch of CNBC Africa, which will be based in Sandton, on 1 June this year.
We hope that this will also assist in ensuring that the African story is told
in a more balanced manner.

In June this year, we will welcome to our shores the Lion King theatre
production - one of the biggest musical extravaganzas in the world. This will
be an all South African cast and is expected to run over 8 months, creating
during its stay in our country many opportunities for our youth in the arts
environment. This hugely popular production is expected to attract huge
audiences from all over South Africa and Africa, and is made possible due to
the soon to be completed R370 million extension at Montecasino in Fourways.
This huge multi-million rand infrastructure investment project in our province
will add a further impetus to our efforts to stimulate tourism, arts and
culture in the province.

This will result in more jobs and economic opportunities being created in
Gauteng, a clear indication that while there are still too many of our people
whose lives are constrained by abject poverty, a better Gauteng is most
certainly in the making.

As part of our efforts to strengthen the creative industries sector, we will
in September this year host the World Annual Carnival Conference. The
conference will further contribute to cultural tourism and job creation.

Tourism continues to receive focus as a priority growth sector in Gauteng.
The latest tourism statistics produced by South African Tourism indicate that
foreign tourist arrivals to South Africa reached a record high of 7,4 million
last year, which represents a 10,3% increase on the figures for 2004, and
exceeds the estimated 5,5% average global growth rate in tourism.

Gauteng's share of this growth has remained constant at about 50% of all
international tourists to South Africa and the share in domestic tourism stands
at 20%. The majority of these domestic travellers (68%) are people visiting
friends and relatives. The challenge for Gauteng as we strive to grow tourism
and create a globally competitive city region is to ensure that visitors
experience some of our best attractions, including the geo-spatial tourism
attractions of our own province - the Cradle of Humankind World Heritage Site
and Dinokeng, as well as the Vaal Dam - which have a huge potential to
regenerate the economies of our economically depressed regions, the West Rand,
Metsweding and Sedibeng.

The Sterkfontein Caves continue to impress and the number of daily visitors
is beginning to exceed existing capacity. The strategy is to divert these
visitors to Maropeng which has now established itself as the iconic symbol of
Gauteng, also attracting an ever increasing number of visitors. Maropeng hosted
the provincial Heritage Day celebrations on 24 September 2006 with over 12 000
people having access to the visitor centre free of charge. The centre will
henceforth be home to the annual Heritage Day celebrations.

In December we unveiled the cast of Little Foot (the world's only almost
complete skeleton of a human ancestor aged 4,1 million years) at Maropeng. Last
week the cast was unveiled at the American Museum of Natural History in
Washington. In 2007 we expect Little Foot to finally emerge from the
Sterkfontein caves from its long sojourn in the depths of the caves.

I am pleased to announce that with the considerable growth in visits to the
destination as a result of the overwhelming growth in the stature of the
destination, we are now in a position to commence with the development of a
further four visitor orientation centres.

The new attractions will be located on the R512 close to Lanseria, on the
Hendrik Potgieter route to the Sterkfontein Caves and in the Magaliesberg
village.

At the opening of the legislature last year, we announced our intention to
officially open the Dinokeng Game Reserve. The start-up phase has already been
completed and the reserve has been fenced off and stocked with game to the
value of R7,9 million, adding a total of 340 much needed jobs to the needy.

Next month we will launch this latest attraction which already offers 260
catered bed nights at 18 sites in the start up area, two restaurants, and
abundant activities including game drives, elephant rides, horse riding,
hiking, quad biking and balloon rides.

The next expansion of the Dinokeng Game Reserve is at an advanced stage and
is expected to be completed in November 2007 ahead of the December
holidays.

We are also developing new plans for the economic regeneration of the
industrial area in Ekangala.

This will stimulate the economy of the Metsweding district, enhance
employment prospects and increase the opportunities to escape from poverty.
This will make it possible for the people of this area to also say that, while
there are still people who do not have jobs, shelter, water and sanitation and
live in abject poverty, with more jobs and economic opportunities being created
in their area, a better Gauteng is indeed rising.

Another potential growth sector that we have identified is the agriculture
sector. The Gauteng Agricultural Development Strategy is being implemented to
take advantage of the sector's potential for economic empowerment and growth.
This aims to boost value added production in the sector, including through
promoting bio-technology, agro-processing and high value and niche market
crops.

The Gauteng Department of Agriculture, Conservation and the Environment will
be developing agricultural hubs to settle emerging black farmers and to help
them grow their enterprises. The launch of the first hub is planned to take
place during the first quarter of the next financial year in Metsweding.
Working with the Gauteng Provincial Land Reform Office, we aim to settle around
50 farmers per annum in these agricultural hubs.

Road infrastructure development is integral to economic growth, job creation
and poverty alleviation.

As part of our commitment to improve road infrastructure, we will over the
next three financial years double the R511 between Fourways and Diepsloot,
complete the link between Dobsonville Road (K102) and Main Reef Road and
commence construction of the Pinehaven Interchange and the K29 near Cosmo City.
Together with our municipalities we will also continue with the tarring of
roads in all the 20 priority townships.

Among the interventions we have made to address poverty, unemployment and
create opportunities for people to gain skills has been the Expanded Public
Works Programme, learnerships and the targets set for the employment of the
youth, women and the disabled.

Through the expanded public works programme we have been able to provide the
dignity that comes with earning an income, to more than 14 991 people. In the
coming year we will provide opportunities for 20 000 people of whom 40% will be
women, 30% youth and 2% people with disabilities.

In building an effective public service, we will continue to promote the
development of skills and the entry of young people into employment through our
learnership and internship programme. By the end of last year we had already
achieved our 2009 target of 8% of our workforce in learnerships and
internships, with 5 381 young people participating in internships and
learnerships. Of these, 99% were black and 68% were women. We will now aim to
ensure that, by 2009, 9,5 percent of our total workforce are young people on
experiential training.

Our programme focuses on critical and scarce skills such as information
technology, financial management and auditing, engineering and construction,
food technology and nutrition, transport management and planning as well as air
quality and waste management.

Our commitment to improving the lives of our province's young people,
including economic empowerment, remains unwavering. I am pleased to announce
that we will in the coming financial year, launch an artisan skills training
programme with an initial intake of 8 000 young people. In addition to
learnerships and internships, we will continue to ensure that we support
youth-owned small businesses and co-operatives through the Gauteng Enterprise
Propellor and ensure that youth benefit from government contracts, Expanded
Public Works Programme (EPWP) employment opportunities and training
programmes.

After a significant number of youth dialogues held since 2004 we have
consolidated a youth development strategy and appointed a statutory body, the
Gauteng Youth Commission, with effect from June last year. The commission has
already started its work to co-ordinate, facilitate, advise and monitor the
mainstreaming of youth development in the policies and programmes of our
provincial government as well as build relations with other youth organisations
and non-governmental organisations in the province. We now need to focus on
closer co-operation between the Youth Commission and local authorities and
community structures to ensure greater impact on issues regarding young
people.

In co-operation with the National Youth Commission, we will work with the
Gauteng Youth Commission to train a volunteer corps of over 1 000 young people
who will be utilised in volunteer work. This will provide an important basis
for the youth and volunteer programme in preparation for the 2010 FIFA World
Cup.

The economic empowerment of women and lifting the poverty load from their
shoulders are important areas of focus for our government. In the year ahead,
all government departments will have to further develop programmes to promote
women's empowerment and to ensure that we achieve a target of 50% female
representation at senior management level by 2009.

We will continue to partner with organised and individual women as we
continue our endeavours to empower this important sector of our society. Beyond
the fact that all provincial departments have factored women's empowerment
within their programmes and budgeting, we deem it vital that platforms are
created for women to monitor and assess the Gauteng Provincial Government's
(GPG's) performance on women's empowerment. In this regard, we will hold the
third provincial women's dialogue in August this year to assess our progress
and challenges and determine priorities ahead for the empowerment of women in
Gauteng.

Linked to this process, we have undertaken an audit of the GPG's
institutional capacity to undertake gender mainstreaming at all levels. We will
use this as a basis to further strengthen gender mainstreaming in the province,
including engendering budgets and developing key performance indicators and
monitoring and evaluation systems related to women's empowerment.

I am pleased to announce that through the Gauteng Enterprise Propeller we
will ensure that in the 2009/10 financial year 50% of funding will be allocated
to women led job creating activities.

As a mark of honour to the contribution that women have made to our
liberation and the development of democracy, we will this year rename the R24
(from Ekurhuleni to the West Rand) after Mama Albertina Sisulu, a stalwart of
our struggle for the total emancipation of our people, and women in particular.
In this way we will be conveying our gratitude to her for making an immense
contribution and sacrificing dearly for us to enjoy freedom and democracy.

We remain committed to ensuring that we meet our target of increasing the
number of people with disabilities employed within the provincial government to
2% by 2009. Progress has been slow in this regard but, working with the various
formations representing people with disabilities and also within our integrated
human resource strategy, we must explore all avenues to ensure that this target
is met.

In the coming year we will promote with vigour an advocacy plan to address
the needs of people with disabilities by implementing the national disability
strategy and Gauteng disability policy.

We are conscious of the importance of skills development, access to
resources and creating equal opportunities in the labour market to allow people
with disabilities to compete for employment.

Over the past year, the driving licence booking system has not been able to
respond adequately to the needs of consumers. While reasons vary, they include
a huge increase in the number of people who want to obtain driver's licences
resulting in pressure at the Gauteng Shared Service Centre (GSSC), non
co-operation by some municipalities and corruption by some stations
collaborating with some of the officials. Whatever the reasons, the MEC for
Public Transport, Roads and Works has committed himself to removing all
obstacles to the smooth functioning of the system before the end of the current
financial year. The Department of Public Transport, Roads and Works will also
enter into Service Level Agreements with municipalities to make the centralised
booking system mandatory through the GSSC.

The following immediate improvements will also be carried out. A new system
integrating SMS, telephone, internet and walk-in bookings will be introduced.
Booking terminals will be installed at every driver's licence testing centre
and a direct online linkage created between each centre and the GSSC Call
Centre by the end of the financial year.

While we will always seek to co-operate with municipalities, it needs to be
understood that this is a provincial function and that no one will be allowed
to circumvent agreed procedures or undermine our commitment to efficient
service delivery to the public.

One of the issues constantly raised as a concern for our people, especially
working people, is the state of the public transport system. Together with
MetroRail, public and private bus operators and the taxi industry we need to
ensure that we provide a safe, reliable and efficient public transport
system.

The next three years will see the intensification of our housing programme.
Key among these will be the programme to formalise and upgrade informal
settlements, the provision of affordable rental accommodation, development of
mixed income areas, accelerating urban renewal in Alexandra, Bekkersdal and
Evaton and the regeneration of 20 identified townships in Gauteng.

During the coming financial year, 25 159 serviced sites will be provided as
part of our plan to formalise and upgrade informal settlements. A total of 58
552 houses will be built through mixed housing developments, the community
builder programme, the people's housing process and alternative tenure.
Together this will benefit close to 300 000 people.

To promote social integration and to create opportunities for the poor in
the mainstream housing market, mixed income settlements are being constructed
in Cosmo City, Doornkop, Linbro Park, Austin View, Alexandra K206, Leeupoort,
Chief Luthuli Extension 6, Olievenhoutbosch Extention 36, Nellmapius extension
6, 7 and 8, Thorntree View, Middelvlei /Droogeheuwel, Kagiso/Azaadville and
Westonaria South.

We welcome the partnership between the province and the financial
institutions which has made it possible for us to forge ahead with these mixed
income settlements.

We will also focus on improving the lives of people in the former cross
boundary areas that have now been incorporated into Gauteng. We will in April
2007 take over the Winterveldt upgrading project. The plan is to conclude a
pre-feasibility study of Winterveldt as an urban renewal programme, install
bulk infrastructure and complete 1 500 housing units by the end of March
2008.

In Ekangala, which also now forms part of Gauteng, we will take forward two
housing projects that will deliver more than 900 houses. A professional
resource team will be appointed to assist with beneficiary administration and
the installation of essential services.

At the time of the launch of the Alexandra Renewal Project in April 2001 we
committed ourselves to a seven-year intense engagement to realise the objective
of upgrading the living conditions and human development potential within
Alexandra.

Imagine the following scenario: All patients with chronic diseases are in
possession of a smart card containing all their medical history. When Mr
Dlamini collapses at home and is rushed to hospital, the doctor simply swipes
his card to immediately know what illnesses he was treated for previously and
the prescribed medication. The doctor is in turn able to speedily diagnose what
may have caused Mr Dlamini's collapse.

After recovery, when Dlamini returns to the hospital, administration clerks
do not have to go through a long process of opening a new file for him. They
too simply swipe his card to know that he has come to pick up his monthly
supply of medicine. The dispensary is immediately alerted of Dlamini's presence
and pharmacists begin packing his medical supplies before he arrives at their
window. When he gets to the window, he simply collects his medical supplies and
goes home.

Improbable? No! If Gauteng is indeed a smart province it will be so!

This is what the new information system should allow us to do. This will in
turn release a number of health workers to focus on the core work of looking
after the health of patients. It will also reduce the amount of time patients
spend waiting on queues, or medical professionals shuffling papers.

Remarkable progress has been made with ensuring access to healthcare in all
communities through the building of new clinics, extending hours of services
and revitalising hospitals. Three clinics were opened last year and nine are
currently under construction. The Pretoria Academic Hospital is now fully
equipped and will be officially opened by the end of March. The construction
and upgrading of Chris Hani Baragwanath, Mamelodi, Katlehong and Zola hospitals
is under way.

In 2006 the district health system was further strengthened by the
appointment of 12 more family medicine practitioners. This has ensured the
availability of doctors in more clinics and community health centres. In line
with the health act, the transfer of primary health care services to the
provincial health department from all municipalities except metropolitan ones
will commence in April this year. The rest will commence once funding is made
available by national government.

Hours of services will also be extended at the following (17) primary health
care facilities: Refilwe, Zithobeni, M L Plessen, Krugersdorp Central, Dr
Martinez Ramirez, Itumeleng, Ratanda,Nellmapius, Mamelodi, Kempton Park Civic,
Boksburg Civic, Reiger Park, Katlehong, Goba, Kwa-Thema as well as two clinics
still to be identified in the City of Johannesburg.

Our programme on HIV and AIDS continues to reach more people, focusing on
prevention, treatment, care and support of those affected and infected. More
than 44 000 people have been put on treatment in the two short years since we
started the programme to provide anti retroviral treatment and many have been
restored to good quality health. We hope to increase the number of people on
antiretroviral treatment to 70 000 by March 2008. We must however continue to
make the point that there is still no cure for HIV and AIDS. The only sure way
to prevent its spread is through abstention from risky sexually behaviour,
faithfulness and the use of condoms.

This year the Department of Health will distribute 60 000 female condoms and
13 million male condoms per month.

The prevention of mother to child transmission programme has been rolled out
throughout the entire province covering 223 primary healthcare clinics and
community health centres offering ante-natal care service and 22 hospitals with
ante-natal care services. The number of women accessing this service has
increased from 87 546 in 2004 to 124 398 in 2006. In the coming year, this
programme will be further strengthened by an increasing the number of
sub-districts providing testing of babies by the Polymerases Chain Reaction
method - a laboratory method using molecular techniques to provide more
accurate and faster results for the diagnosis of HIV.

Post-exposure prophylaxis, introduced in 2002 to provide a preventative
treatment to rape survivors, is now available in 54 medico legal centres
throughout the province.

Education remains a cornerstone of all efforts to deal with underdevelopment
and economic growth. It also provides the necessary skills and capacity that
allows people to escape the poverty trap. The Unisa Bureau of Market Research
that I referred to earlier indicates that Gauteng households headed by
graduates receive an average income of R427 000 per annum, while households
headed by persons with only primary school or no education receive an average
of only R29 000 per annum.

Education and skills development must therefore remain a top priority in our
efforts to reverse inequality and improve the standard of living of our
people.

While it has been encouraging to see an improvement in our province's matric
pass rate last year, there is still a concern about the performance of black
children, particularly African children. An increasing number of black parents
also seem to be disengaging from the public schooling system. While we have
made important strides in redressing the inequalities inherent in the education
system of the past, we have not yet succeeded in ensuring that the quality of
education of the African child is up to scratch.

It is the African child who learns in overcrowded schools. It is African
children who have a higher failure rate. It is the township schools where the
African child is based that are dysfunctional. This we must bring to a complete
halt. Accordingly, the MEC for Education will convene an urgent summit that
will bring together trade unions, school governing bodies, learner
organisations and other stakeholders, before the end of the first school term,
to agree on a programme of action for all stakeholders to improve the quality
of education of the African child in our province over the next two years.

The following immediate measures will also be implemented:

* All learners in schools where the failure rates are unacceptably high will
receive career guidance ensuring that the subject combinations particularly in
Grades 10-12 are in keeping with the focus on gateway learning areas.
* All educators' competencies will be assessed to ensure they teach the
subjects in which they are best qualified and ensure that there is a match
between their subject allocation and competencies.
* There will be measures to raise the level of English second language
proficiency for learners and educators.
* Principals and their senior management teams at poorly performing schools
will be given additional training by the Mathew Goniwe School of Leadership and
Governance on school and classroom management efficiencies as well as learning
assessment practices.
* Principals with shortcomings will be partnered with competent ones for
support. However, stringent measures will be taken should there be no
improvements after three months of support. Similarly officials and educators
not pulling their weight will be dealt with.

To prevent ill-health caused by preventable factors, we will this year place
emphasis on the provision of community-based health services focusing on the
improvement of healthy living among all citizens. Programmes to be undertaken
will focus on the importance of regular exercise, non-smoking, nutrition, safe
sexual practices, stress management and eliminating substance abuse.

To strengthen efficient management of patients and deal with the challenge
of long queues in hospitals and clinics, we will strengthen the existing and
introduce a new comprehensive information and communication technology
system.

We will continue to provide adequate learning infrastructure and learning
and teaching equipment. Like all our children, the African child deserves no
less!

This year we have prioritised the implementation of "No Fee Schools" to
increase access to education for the poorest children. Resources have been set
aside for schools whose subsidies may be negatively impacted by the adjustment.
The aim is to ensure that no compulsory school fees will be charged in the
poorest schools. It is estimated that over 180 000 learners from 250 of the
poorest schools will benefit from this policy.

Of critical importance to the growth of our knowledge-based economy and the
competitiveness of our city region, is the production of learners with strong
capabilities in maths, science and technology. We need to do more to inspire
passion in our learners in this critical area and strengthen the implementation
of our strategy. This includes the development and training of educators and
the continued rollout of Gauteng online in schools. Initiatives such as the
Blue IQ Smart Young Mind Challenge and the Sci-Bono centre must also continue
to create excitement around maths, science, technology and entrepreneurship, by
engaging high school learners.

We have placed children at the centre of our social developmental agenda.
Together with communities we should ensure their protection against the effects
of poverty and help them develop as healthy nourished individuals capable of
realising their full potential and taking their productive place in society. To
achieve our vision of creating a province fit for children, we introduced the
Bana Pele programme, a package of free services targeted at vulnerable children
on the child support grant. These include the provision of school nutrition,
healthcare, school uniforms for grade ones, psycho-social support, early
childhood development and scholar transport.

The number of children benefiting from the school nutrition programme
increased from 359 613 learners in 2004 to 378 903 in 2006. Although plagued by
challenges, the scholar transport service has ensured that learner attendance
at schools servicing farm, rural and informal communities increased
significantly resulting in a reduction in failure and drop-out rates.

Early Childhood Development (ECD) will receive priority attention over the
next three years. We will be investing in the construction of 20 ECD facilities
in each of the 20 priority townships. 72 000 of the poorest children in grade
one will receive child support or foster care grants, exemption from the
payment of school fees, school nutrition, school uniforms, transport if they
are more than 5 kilometres from school and free health services. To improve the
quality of preparation that our children receive before the start of their
school years, we have introduced a school readiness programme for Grade R as
part of our early childhood development programme. We intend to phase in Grade
R into the formal education system and make it compulsory by 2010.

The building of a society where all individuals, households and communities
enjoy a good quality of life because they live, work and travel in a
law-governed society free from fear, violence and crime, is a goal that we must
all work together to achieve.

We have been encouraged by the statistics released by the Institute of
Security Studies indicating that, while crime remains unacceptably high in the
province, a number of categories are either coming down significantly or are
stabilising. While this information confirms what we have seen from the crime
statistics of the South African Police Service and the assessment of 'Operation
Iron Fist,' we recognise that improved statistics by themselves are not enough
if our people continue to feel unsafe. We pledge to redouble our efforts to
further reduce the levels of crime in our province.

Through the restructuring of the SAPS that started towards the end of 2005,
3 000 additional police officials including senior and more experienced station
commanders were deployed to police stations in areas recording high levels of
crime. This has contributed to better police service delivery at the police
stations at a local level. For example, Hillbrow, Johannesburg Central and
Booysens recorded a drop in serious crime while 56% of Gauteng's police
stations experienced a decrease in priority crimes in the period following the
restructuring process.

In line with the President's commitment that we ensure optimal utilisation
of the police electronic monitoring and evaluation system, we will be
establishing our own world class police performance monitoring system. This
will allow the Department of Community Safety to use different data sets to
track the performance of each police station in Gauteng on a regular basis.

This will allow us to take decisive action against poorly performing police
stations while giving recognition to those who are doing their best to work
with communities to prevent and reduce crime.

Given the importance of consistent and immediate police response to calls
for assistance, the entire 10111 system is set to change during 2007.

R600 million has been set aside to build and equip a new, world-class police
emergency response centre to replace the six existing centres. The latest
technology will be introduced to ensure that each emergency call is attended to
as quickly as possible.

Specific features include the introduction of satellite tracking devices
into all police emergency response vehicles and radios. This will allow the
10111 centre operators to identify the exact location of the police vehicle
nearest to the place from where an emergency call is being made. Dispatch
operators will then be able to direct a specific police vehicle to the scene of
the emergency along the shortest possible route. The system will digitally
track the response of each police vehicle and record all communication between
the caller, the 10111 centre operators and the police official responding to
the call. Furthermore, new systems will be established to recruit, train and
supervise the call operators so that the highest service standards are
upheld.

To ensure integration, improved co-ordination and timely response, the
system will also include the Metropolitan Police Departments and other
emergency response vehicles.

We are expecting the new centre to become operational during July 2007 and
are confident that it will make a substantial contribution to police service
delivery in Gauteng.

Our objective in the coming year is to prevent and reduce violent crime as
well as target serious economic crime and organised crime. Through the Gauteng
Safety Strategy, we will seek to improve the quality of policing in the
province, promoting the co-ordination of the criminal justice system and
expanding the role of municipal police in crime prevention.

Of particular importance is ensuring that policing services and other crime
prevention initiatives are provided on an equitable basis across the province.
This means that we need to improve public safety in the poorest communities,
which are often worst affected by crime.

Since then the province, the City of Johannesburg and certain national
departments have channelled close to R1,2 billion into the development of
Alexandra through the construction of a modern police station, installation of
public lighting and household electrification, a water reservoir, roads, storm
water and sanitation systems. A new library and primary school have been built,
parks have been developed and waste removal has been improved. Presently there
are 26 infrastructure projects and 12 housing projects being implemented. Based
on the number of projects currently taking place and those planned, we have
decided to extend the period of Alexandra Renewal Project to the end of the
2009/10 financial year.

Linked to our housing programme and efforts to eliminate poverty and build
sustainable communities, is our drive to eradicate the abhorrent bucket system
and ensure access to free basic water and electricity. Gauteng has a small and
declining number of households using the bucket system. Of the 12 332
households identified last year as still using the bucket system, 12 303 of
them now have decent sanitation. I am informed by the Department of Local
Government that the remaining identified bucket systems will be eliminated by
not later than June this year.

As part of our efforts to regenerate, beautify and transform our
communities, we will in the coming year pay further attention to cleaning up
key rivers and major streams. Our rivers are an important part of our natural
heritage that our people should be able to cherish and enjoy. The unacceptable
situation where rivers and streams in the suburbs are kept clean while those in
townships are neglected and filthy needs to be addressed by both local and
provincial government. We must aim to restore the ecological integrity of the
rivers, protect biodiversity and work with communities to keep these areas
clean so that they can become places of leisure, improving the quality of
life.

One of the key issues we identified when we unveiled our programme of action
in 2004 was the importance of improving the quality of healthcare and
addressing the causes of poor health among our people such as poverty,
lifestyle, HIV and AIDS, tuberculosis and water borne diseases.

A major feature of our crime prevention initiatives this year will be the
launch of a broad-based movement against crime. This will be a coalition of
societal organisations rallied around a common theme of "Taking Charge" of
responsibility of reducing crime in our communities. A total of 22 000
volunteers will be recruited in the new financial year and deployed in patrol
groups to reclaim the streets from criminals in 25 identified areas.

We must isolate the criminal elements in our communities and send an
unequivocal message to our youngsters that these are not role models but thugs.
We also need to deal with the value system that creates a climate conducive to
crime. Together with communities we must close down the black market, where
stolen goods are sold. We must accept that selling counterfeit products is
criminal and that when I keep quiet when my child brings stolen property into
my home, I am also contributing to crime.

To secure the participation of young people in social crime prevention
initiatives, 27 new youth desks will be established throughout the province. A
revised school safety plan is currently being developed and campaigns will be
undertaken in schools to reduce the proliferation of illegal weapons, drugs and
alcohol.

Violence against women and children continues to be a blight that undermines
all efforts at women's emancipation and empowerment. We cannot fully rejoice in
our freedom when our mothers, sisters, wives, daughters and partners continue
to be violated by senseless thugs with no respect for human dignity. We must
therefore prioritise this issue throughout the year and not remember it only
for 16 days of the year.

At this point we also like to recognise the extraordinary sacrifice of the
overwhelming majority of our police officers, who risk their lives daily to
protect us. We pledge to you that we will continue to support your efforts to
minimise crime from our beautiful province.

We also call on stakeholders, communities, the private sector, sporting
federations, communities of faith and all political parties to join hands with
us as we engage in this important fight to reclaim our streets, our homes and
our businesses.

We remain committed to our vision of achieving a 30% reduction in road
accidents and fatalities by 2009. We have developed a road safety strategy to
help us achieve this goal. The implementation of this strategy will require
that we continue to increase the visibility of traffic law enforcement officers
on our roads and establish a rapid response system to accidents and fatalities
throughout the year. We have also identified high road accidents zones where we
will intervene to ensure the safety of pedestrians. These include Moloto Road,
the N14 near Diepsloot, the R59, the Golden Highway and Olievenhoutbosch.
Already last year, a reduction of 16% in road fatalities was achieved.

One of the major tasks we will continue to undertake this year is to improve
the capacity and organisation of the state, ensuring greater co-operation,
co-ordination and integration across administrative boundaries and thus ensure
that the capacity to deliver is improved. The state must be organised and
structured such that we minimise "red tape" in accessing government services;
employ usage of new technologies to advance service delivery and are easily
accessible to the citizenry.

In this context and given the need for enhanced service delivery,
integration and co-ordination required for the building of a competitive city
region, we have undertaken a review of the current allocation of powers and
functions between local and provincial government in Gauteng. Provincial and
local government including through organised local government [South African
Local Government Association (SALGA) - Gauteng] are currently engaged in
internal discussions on the proposals.

Our decisions will be guided by the need to increase effective service
delivery, the imperatives of the constitution, the capacity of municipalities
and the need to work towards a metropolitan type of local government in the
province. In certain instances assignment or devolution of powers will be
asymmetrical - focusing on those municipalities with capacity first while
building capacity where none exists.

We have already completed the review of the capacity and organisation of the
state of the provincial government. A strategy that focuses on strategic
interventions required to enhance Gauteng's ability to become a globally
competitive city region is being implemented.

One of the challenges we have faced in building the capacity of the state
has been the increasing loss of skilled personnel in the areas of healthcare
professionals and social workers, who play a critical role in promoting the
wellbeing of our people. We will continue with measures to recruit and retain
health professionals and social workers. These include improved remuneration
levels and working conditions and the provision of the necessary facilities and
tools of the trade to do their work effectively. Training of existing and new
personnel will be given further attention as well as the expansion of
internships and learnerships and the employment of auxiliary workers.

We are working closely with universities to promote social work as a career
option and will in the coming year provide bursaries to close to 200 students
who chose to pursue a career in social work.

Through the Gauteng Human Resource Development strategy we will continue to
focus on addressing the shortage of health workers with an emphasis on scarce
skills in health professionals and increasing the production of nurses by 20%
each year until 2009.

In the coming financial year, working in partnership with Higher Education
Institutions in the province, we will finalise a conceptual and institutional
framework for the development of a Gauteng Urban Observatory. Building a
city-region for economic growth will require us to work closely with
universities, research institutes, other government institutions and industries
to harness the intellectual power, knowledge and innovation strengths of all
our partners. In this regard, we welcome the new partnership between the
University of Witwatersrand and the University of Johannesburg in support of
the Gauteng city region initiative.

Our comprehensive Gauteng Human Resource Development Strategy, which we
completed last year, provides a framework for the development of the skills the
Gauteng city region needs to drive economic growth and social
transformation.

To drive the implementation of the strategy for the province, we have
established the Gauteng Human Resource Planning and Development Agency and have
already appointed its head. We hope to finalise partnership agreements for
talent identification and development for priority skills in the Gauteng public
service for the realisation of the Global City Region (GCR) by December 2007.
The agency will also be responsible for Ithuteng Tiro priority skills
development focusing on ICT, business process outsourcing, construction
engineers and artisans.

In addition, we will start work on the establishment of a Gauteng City
Region development agency model that will bring existing development agencies
in the province together to assist with the requirements of building a
competitive city region.

In the coming year, we will undertake an economic footprint study to
understand the economic linkages both within Gauteng and with its neighbouring
economic areas. This study will map major companies located in significant
economic areas, identify significant projects that can be harnessed for
economic growth, identify trade and industry flows, their value and also
identify critical logistics required.

In line with the national spatial development perspective, we have completed
a Gauteng spatial development perspective which aims to direct the spatial
location of future economic, development and infrastructure spending in the
province. In this regard, public sector fixed investment will prioritise
existing areas of economic activity, areas of potential economic activity and
areas that play a supportive role in the regional economy. In addition, we will
promote socio-economic inclusion by paying particular attention to investment
in areas of economic activity or potential economic activity which coincides
with really poor areas.

A successful Gauteng city region requires both strong local government and
strong provincial government. We have therefore been working hard to develop
managerial and leadership capacity within local municipalities as well as to
facilitate the provision of the necessary technical skills. This work will
continue with the deployment of financial experts and engineers in the coming
year.

We call on all municipalities to ensure alignment between plans and
resources. On our side we pledge to ensure alignment of provincial plans to
local economic development plans. While municipalities must focus on the
provision of basic services, more importantly, municipalities in Gauteng must
focus on economic development, social and economic infrastructure and poverty
alleviation programmes.

The success of the Gauteng City Region lies in our ability to integrate our
plans to maximise our socio-economic opportunities across various spheres of
government and move seamlessly on a common development path. To achieve this,
we have pursued with vigour the process of Integrated Development Planning
(IDP) across both provincial departments and municipalities. The IDP process
has proven to be an effective forum for raising issues to be attended to by all
the three spheres of government. In our planning, co-ordination and
implementation, we need to develop a shared analysis and a common data set,
sequence our planning cycles, avoid internal competition and ensure continuous
and honest engagement with various stakeholders.

Therefore, we will in the process of consolidating the Gauteng city
region:

* ensure the alignment of all strategies with global city region
objectives
* consolidate institutions of alignment, intergovernmental co-ordination and
decision-making
* strengthen joint planning and implementation across departments and
municipalities
* strengthen the technical capacities of both provincial and local
government.

We have, through our provincial treasury, supported the nine delegated
municipalities in Gauteng to ensure the implementation of financial reforms in
terms of the Municipal Finance Management Act (MFMA), including in the
development of multi-year budgets and in improving financial management skills
and capacity. In the coming year we will continue to assist municipalities in
developing IDPs, credible budgets and in monitoring compliance with the MFMA.
In addition, we will place particular emphasis on improved financial
governance, focusing on risk management, asset management, internal audit,
financial accounting and financial information systems.

In addition to focusing on the improvement of financial systems in
municipalities the provincial treasury will also take steps to improve
financial management and compliance with the Public Finance Management Act by
the provincial government. We will work hard to ensure that none of our
departments receive a disclaimer. Our target is to see to it that all our
departments once more receive unqualified audit opinions by 2009. At the same
time, we should not be satisfied with unqualified audits and in the longer
term, we will strive to achieve clean audits by taking steps to reduce the
number of emphases of matter in our audit opinions.

Based on a needs analysis, we are further improving the financial management
capacity of all departments, assisting them in putting in place the effective
systems and support for their chief financial officers, as well as
training.

We have over the past year developed a provincial disaster management
framework and systems and have undertaken extensive preparations for the
establishment of a Provincial Disaster Management Centre. Phase one of the
centre will be completed in March 2007 and it is expected to be fully
operational by August 2007.

In addition, we have initiated a programme to assist all district
municipalities in complying with the Disaster Management Act by April 2007.
This will include the establishment of municipal disaster management
frameworks, plans and district disaster management centres.

Last year, an undertaking to investigate measures to ensure the proper
funding of political parties was made in this house. A set of proposals has now
been developed and the Leader of Government Business will in due course table
them for consideration by the house.

Our people, in their individual capacities organised in their different
formations, remain the only critical partners in helping to take our province
to new heights of development where poverty and unemployment are halved.

In Gauteng we have succeeded in entrenching a culture of stakeholder
engagement and public participation in the development of our strategies and
programmes. A number of our key strategies have been subjected to and moulded
by participatory democracy forums. We must now involve communities in the
implementation, monitoring and evaluation of these programmes and
strategies.

The participation of civil society structures as part of the African Peer
Review Mechanism (APRM) process in Gauteng and in consultations on the global
city region perspective pointed to certain weaknesses in their capacity to
consult with their constituencies. A vibrant democracy needs strong and
representative organs of civil society which are able to consult with their
members, engage with government on the basis of a clear mandate from their
members and report back to their members on an ongoing basis. As part of our
commitment to the deepening of democracy we will therefore in the coming
financial year develop a framework on the provision of support to civil society
structures, including financial support where necessary, to enhance their
capacity to engage with government on its development programmes and
policies.

In the coming year we will continue to work directly with the people of
Gauteng through izimbizo to brief them on local and provincial plans, to
strengthen Ward Committees and to give residents an opportunity to share their
concerns and suggestions with us. In addition to the 26 MultiPurpose Community
Centres (MPCCs) we have established so far we will target the establishment of
14 more multipurpose centres by 2009 bringing the number to our target of 40
MPCCs in Gauteng in 2009.

Clean and ethical governance remains a focal point of the Gauteng
government. Last year we reviewed our anti-corruption strategy and a revised
strategy has been developed. An ethics capacity building programme has been
finalised to enhance the ethical conduct of all our employees.

The province is participating in organising a Global Forum Against
Corruption and Safeguarding Integrity which will take place in Sandton in the
first half of this year. This forum will bring a spotlight on unethical and
corrupt practices and help to heighten moral regeneration.

The midterm report and the 2007 programme of action we have tabled here
today confirms our commitment to continue to work hard to improve the lives of
our people. It further confirms that while a lot of progress has been made much
more still need to be done to ensure that the benefits of social and economic
transformation, health, education and housing accrue to all our people.

With the support of political parties inside and outside the legislature,
community organisations, faith communities, trade unions and the private sector
we will be able to reach the goals we have set for ourselves for 2009 and
vision 2014.

As we have said before: Mintirho ya hina ya vulavula. Yi vulavula hi ririmi
le ri twisisiwaka hi mani na mani. Hinkavo la va va nga na mahlo va yi
vona.

Our actions speak louder than words. All those who care to see can attest to
the successes we have made. We will however be the first ones to say that while
we have made great progress we cannot rest until the deed is done.

Thank you.

Issued by: Office of the Premier, Gauteng Provincial Government
19 February 2007
Source: SAPA

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