Huge budget growth in Transport and Public Works.
The budget being considered today amounts to R4 639,226,000 rising to R5,038 billion and R5,975 billion in the outer years of the MTEF.
When compared to previous years:
- 2010/11 – R3,807,886,000
- 2011/12 – R4,98,575,000
- 2012/13 – R4,498,613,000
- 2013/14 – R4,639,226,000
- 2014/15 – R5,038,029,000
- 2015/16 – R5,975,764,000
However, a truer picture takes into account the infrastructural work we do on behalf of Western Cape Departments of Education and Health, as well as the money held for us in the Strategic Infrastructure Reserve by Provincial Treasury; for year 2013/14, this amounts to R7, 982 million, and all of this is managed by staff whose cost to the administration is less than 7.5.
In other words, each member of staff delivers R13 of service for every Rand earned!
National Cabinet supports Western Cape success Story.
In addition to our normal allocation, National treasury has added a further R1,645 billion over the period of the MTEF, mainly for the building of schools and roads.
We thank them for their confidence and we will not let them down.
Public Works forges ahead.
The Dorp street headquarters is our flagship and currently undergoing upgrades that are expected to be completed by October 2013.
Further upgrades are continuing throughout the provincial precinct, all of which will increase productivity, reduce costs, and reduce our carbon footprint.
Last month I turned the first shovel for the province’s first 5 Star Green building, The Khayelitsha Shared Services Office block, which will bring key services, from the Provincial departments of Health, Education, Agriculture and Social Development, to the people of Khayelitsha.
Massive increase in infrastructure: Schools, schools, schools.
I take Education as an example of the massive increases this administration has made in the building of schools:
- Previous administration: 4 years to March 2009 – R630 million
- Current administration: 4 years to March 2013 – R1, 720 billion
- Current administration: 3 years to March 2016 – R3, 300 billion
In simple terms, the current administration has spent nearly three times as much as the ANC.
While it was in power, the ANC spent an average of R157.5 million p/a on building schools.
In the 7 years to 2016, the DA will spend an average of R700 million p/a on building schools.
This is what the DA means when it talks of delivery to the poor.
Regeneration takes off:
The first regeneration income of some R2, 2 million, from the lease of the Sea Point School, marks an important milestone in the profitable management of our property assets.
The intention here is to build a strong positive net cash inflow into the Asset Financing reserve by the sale or lease of provincial properties, and the accommodation of our staff in owned rather than leased out properties.
To this end we have purchased the York Park building as our provincial headquarters in George, and, over time, all provincial undertakings will be housed there.
The cost of purchase will be recovered in the first 10 years, and thereafter our current expenses will be reduced by approximately R10 million per annum escalating at 12% p/a.
In addition, we have purchased property in Maitland to house the Government Garage, thereby preparing the GG precinct for appropriate mixed income and residential development.
We will shortly go out to tender on the construction of a building on the site owned by the Western Cape Government in Leeuwen Street. This is a PPP project and will accommodate the Department of Education.
Major developments are planned for the Artscape/Founders Garden precinct including major extensions to Artscape, largely financed by National Treasury as well as parking to service CTICC, the Christiaan Barnard Hospital and Artscape itself.
Cabinet has approved draft frameworks for the massive Two Rivers Urban Park development to be co-developed with the City and strategically led by the Cape Higher Education Consortium. TRUP is planned as a sustainable development, self- sufficient in terms of bulk services. Early identified tenants are a health cluster and the SA headquarters of Square Kilometer Array Africa (SKA).
It is now ministerial policy to dispose of all properties not required by the administration or having been identified as having regeneration potential.
Such disposals would be aimed at mixed income housing proposals, and will include, (subject to Education and School Governing Body approval) excess land at certain schools.
The best regional roads in Africa
Whilst the department continues to be challenged by the condition of unsurfaced roads, 93.5% of all kilometers travelled are on “good” to “very good” surfaced roads, which is at the upper end of global standards.
The list of road construction and maintenance projects totaling R1, 723 billion is detailed in the budget. I am pleased to note that planning will commence, subject to City Of Cape Town approval, on the construction of a third lane in both directions on the NI at the Durban Road Interchange at an estimated cost of R125 million. This will significantly reduce peak congestion.
In addition, I have asked the department to consider the realignment of the Borchards Quarry interchange on the N2 to improve access to Philippi, where the City is involved in a major regeneration and employment project.
On the way to Integrated Public Transport
The City of Cape Town will increasingly take over all aspects of public transport in the broad Metro Region. Through their “Transport Authority” they will manage – but not operate - all aspects of public transport.
We are currently preparing to hand over to the City both the Bus operating subsidy and the 7 000 taxis that operate in the greater Metro. In addition they will, in due course, manage the Metro subsidy as well.
Metrorail have shown solid improvements in punctuality, safety, and available train sets, albeit coming off a low base. In 2015, the first 15 new train sets will be delivered to the Western Cape in a 25 year procurement that will see all existing train sets and signaling systems replaced.
Road Based Public Transport
The main problematic faced is in the area of road based public transport, in which the principal players are the mini-bus taxi industry; Golden Arrow Bus Services and the MyCiti Vehicle Operating Companies.
The PLTF (Provincial Land Transport Framework) requires that broad agreement be reached on the broad planning of road based public transport with all stakeholders.
Such agreement on the way forward will form an essential element in the City’s Integrated Transport Plan, due to be published later this year.
This sensitive negotiation is now underway, but the levels of anxiety felt by all road based operators must not be overestimated.
Both the City and the department are agreed that road based operations should be hybrid, allowing for taxi operators to choose as to whether they would become part of larger operating entities or to continue operating their existing routes.
There are many uncertainties, particularly with regard to future funding. Critical to the success of an integrated public transport system is that it be affordable, not only to commuters, but also to the municipalities involved therein.
MyCiti has captured a significant slice of commuters, and ticket sales for both Metrorail and GABS are significantly increased.
It is expected that the department’s goal in increasing the public transport share of total commuters will be met.
Rail freight and medium/long distance passenger rail
Both freight and passenger rail have dwindled to very low capacities. Whilst the Province has been successful in persuading PRASA to run additional passenger trains to East London and Queenstown during the three peaks, little or no dialogue has occurred with Transnet with regard to freight.
Safely Home – Road deaths down by 30% since 2009
The fatality rate on roads in the province has been reduced from 1 739 for the year ended December 2008 to 1 262 for the year ended December 2012. The annualised figure to February 2013 was 1202, a reduction of 30%.
Our research indicates that such reductions have not been achieved elsewhere in the world.
All classes of fatalities have been reduced with the exception of motor cycles where it has increased by 25%.
Pedestrians and drivers/passengers make up the largest cohort of fatalities.
During this year a number of identified Pedestrian Hazardous Locations have been identified for action, commencing with Nekkies on the outskirts of Knysna , and Lansdowne road.
Actions taken will include community involvement and education; the appointment of pedestrian bridge marshals; better lighting; access control measures where appropriate; and more pedestrian robots.
As far as drivers/passengers are concerned, Average Speed over Distance (ASOD) has be extended to include R61(Beaufort West to the Eastern Cape border); N1 (Three sisters to Worcester) and will include the R27 (Melboschstrand to Saldanha).
Seat belt compliance, particularly of back seat passengers, is very low. A major campaign will be run to encourage and enforce compliance.
General points of interest:
1. Building the future
Masakh’ Isizwe is evolving into a truly excellent bursary scheme. Our bursars outperform the University averages by considerable margins. The relationship with our private sector and academic partners is strong and enthusiastic, and I remain puzzled that this initiative has not been taken up by other provinces.
Our first diesel mechanics graduate this year, and the apprenticeship scheme has now been extended to the construction sphere.
2. Properties sold under the previous administration
The sale of the Conradie site will be cancelled during this year as certain contractual obligations were not met.
The sales of Erf 2067 Strandfontein and Erf 159166 Heideveld were cancelled, inter alia for non-payment of purchase price, but these cancellations were overturned by the Cape High Court.
3. Chapmans Peak PPP
Despite a residual court challenge in this area, the toll plaza is likely to be completed in June 2013.
4. Toll Roads
Notwithstanding a statement by National Department of Transport (NDOT) in 2012 that no future toll roads would be considered, SANRAL has decided to press ahead with N1/N2 Winelands tolling project.
The Western Cape Government will continue to support the City in its opposition to such tolling. We share their insistence that full and detailed construction and tolling costs must be revealed by SANRAL.
Whatever these may be, the impact on agriculture of tolling those sections will be extremely negative, and will lead to further unemployment in already impoverished communities.
We are also opposed to the excessively high costs of the Somerset West bypass and the commissioning of the second tunnel at Huguenot.
It is my view that the issue of tolling can be tested by the outcome of the election in the Western Cape in 2014.
5. George Mobility Project
After many years of negotiation, we are almost ready to go on the first non-Metro public transport system in South Africa. We have now been granted R400 million by National Government over the next 3 years to finance the project. This has been an outstanding achievement.
6. Licence fees
After 6 years without increases, the Western Cape registration and license fees are now in the middle to lower band of fees charged in other provinces. We have thus recommended an increase of an average of 5.3%, which recommendation is presently undergoing public participation.
All license fees realised are ring-fenced for road maintenance. License fees are expected to realize R1, 077 billion in 2013/14.
7. Daar gaan `n man verby
I am very sorry to announce the resignation of my Head of Department, Mr Johan Fourie, effective from October 2014.
Mr Fourie has played an outstanding role in creating one of the truly great administrative departments in South Africa.
He represents all that is best in Public Service, and we will not see his like again.
Media enquiries:
Siphesihle Dube, Media Liaison Officer
Tel: 021 483 8954
Cell: 084 233 3811
Fax: 021 483 2217
E-mail: Siphesihle.Dube@westerncape.gov.za
