N Masithela: Free State Tourism, Environmental and Economic Affairs Prov
Budget Vote 2007/08

23 March 2007

Honourable Speaker of the Free State Legislature
Honourable Madame, Deputy Speaker
Honourable Madame, Premier
Honourable members of the Free State Legislature
Leaders of different political parties
Mayors and speakers of different municipalities
Chairpersons and board members of different public entities
Members of State institutions supporting democracy
Director-General and heads of different provincial departments
Marena le dikgosi
Distinguished guests
Comrades and friends
Ladies and gentlemen

Honourable Speaker, more than ever before like JT Gumede upon his return
from Soviet Union in 1927 we proudly can say we have seen the new Jerusalem. We
have seen it because we heed the call by Fidel Castro when he said we should do
now what we need to do and not wait because tomorrow could be late. Speaker,
immediately after our budget vote last year we took action because we agreed
with Richard Templar when he said, "If you don't take action this world, this
fabulous planet of ours is going to hell in a handcart."

We are happy to have taken action because today the Free State unemployment
rate decreased from 35% to 28% and our economy has risen to 4% in 2006
according to the recent house hold survey by Statistics South Africa (Stats
SA).

That said, Speaker, a lot still need to be done like President Mbeki in his
1999 State of the Nation Address (SONA) said we can proudly say "we are on
course steadily the dark clouds of despair are lifting giving way to our season
of hope."

To further intensify the fight against poverty, this Department has been
allocated a budget of R262,759 million in the 2007/08 with a further growth of
12,2% in 2008/09 and a further 8,9% growth in the outer year of the Medium Term
Expenditure Framework (MTEF) period.

Speaker, because we consciously don't want to take this fabulous province of
ours to "hell in handcart" as cautioned by Richard Templar, we have identified
the following key priorities:

* infrastructure development
* trade and investment
* business product development
* mining
* tourism
* environmental management
* skills development
* compliance and enforcement capacity
* stakeholder engagement.

Your efforts towards positioning tourism at the centre stage of our
province's economic strategies will be further intensified in the next
financial year. This programme is allocated R93,592 million which is an
increase of 21,3% from the adjusted budget of 2006/07. It increases by 9,8% in
2008/09 and 9,4% in 2009/10.

Speaker, the revised Free State Growth and Development Strategy (FSGDS)
identifies tourism as one of the key drivers of economic growth and development
in the province. More than ever before, we are convinced that we should not and
will not miss the opportunity to ensure that we deracialise the ownership and
control of this important industry so that we can guarantee the entrance of
those who hitherto watched from the touchline as the sector grew.

No effort will be spared towards the development of this sector so that it
can respond to the present challenges such as wealth creation and control,
infrastructure development, job creation as well as safety and security of our
tourists.

Honourable Speaker, every single economic survey done in this country in
recent years has indicated that tourism has overtaken gold as the driver of
economic growth. Tourism is, therefore, our answer to unemployment and poverty
in this province.

The most meaningful intervention, we believe, is the dissemination of
relevant information and provision of critical skills to relevant stakeholders
and role players in the tourism industry. Our emphasis in this regard is on
information and training. Our plan is to ensure that envisaged tourism benefits
do not bypass our people by implementing the grading strategy through a series
of workshops. Our target is to ensure that not less that 20 facilities have
been graded during the next financial year. In conjunction with municipalities,
we are developing incentive schemes to encourage the grading of these
facilities particularly in the townships. We have also requested the Department
of Public Works Roads and Transport to speed up the process of road signage
which process contributes significantly towards the success of these
businesses.

In addition to this, we plan to match the emerging and established product
owners so as to facilitate skills transfer. In this financial year, 20
mentorship partnerships will be established. Honourable Speaker, this coming
year alone we will hold 50 workshops and seminars and train 245 individuals in
different disciplines of tourism such as tour guides, quality assessors and
hospitability management.

Speaker, for our infrastructural programme as well as our direct response to
the latest statistics from tourism South Africa with regard to shortage of
accommodation in Mangaung for 2010, a total amount of R120,5 million which
represent 62,1% compared to the adjusted budget for the 2006/07 is budgeted for
the MTEF period. This is largely for renovation and upgrade of our resorts to
be more competitive in a growing hospitality market. The other intention is to
make them more attractive than many facilities elsewhere in the country if not
in the world.

As part of this programme the first phase of the renovation at Philip
Sanders resort will be completed soon. It is indeed with a special sense of
fulfilment, Speaker, that we announce that six of the chalets are specially
designed for people with disability. The second phase is expected to be
completed in September 2008. Honourable Speaker, let me use this occasion to
thank the peace loving people of the Free State and South Africa who made
contribution for the renaming of the facility and assure them that their
suggestions will be unveiled when we officially open this facility in September
this year.

As indicated before it is the intention of this government to leverage these
important state assets for effective Black Economic Empowerment (BEE) in this
industry. To this end, the Executive Council of the Free State has approved the
commercialisation strategy of the resorts. Proposals have been received from
the industry and recommendations will be used to influence the roll out of this
strategy.

Our infrastructure plan for the upgrading of the resorts will take into
consideration selected elements of the commercialisation strategy as well as
other alternative elements. This will ensure that a required number of
identified resorts is completed by 2009 to accommodate the expected increase in
tourists during that year and years to follow.

As announced in this house last year, we wish to report that the Department
of Tourism and Environmental Affairs has allocated R11 million for the
development of the Eco-Park at Soetdoring Nature Reserve. Work on this
eco-tourism initiative will commence during the next financial year.

The upgrade and management take over will take place within a relatively
safe and secure environment for the tourists. Last year we launched the tourism
safety and security campaign throughout the province. We want to believe that
as a result, during the festive season no known reported incidents of crime
against tourists in our province could be cited. This campaign has made us as
Free Staters to be more vigilant and we would like to urge the public to work
more with law enforcement agencies in tackling any criminal acts targeted at
tourists.

Alongside these projects are special environment and conservation projects
which are meant to place the Free State on the global map in respect of
tourism. These are the Lake! Gariep initiative, the Vredefort Dome World
Heritage Site and the Maloti-Drakensburg Transfrontier project.

The Lake! Gariep initiative is very central towards the economic revival of
the economically depressed Xhariep District. This initiative makes a unique
combination of conservation and sport tourism and infrastructure development in
this area. At this point in time we have developed both the strategy and the
business plan to enable systematic and structured development of this project.
The success of this initiative is dependent on the acquisition of the land in
and around the project. We are aware of efforts and intentions from certain
land owners or those who purport to be acting on their behalf in that area to
frustrate this government's programmes.

It is our intention to follow all stipulated protocols with regard to the
acquisition of the land for the purpose of state use in this country.
Honourable Speaker, we will not be dissuaded from ensuring that this
government's programme of tackling hunger, unemployment and poverty is
realised.

As for the Vredefort Dome World Heritage Site, the Integrated Management
Plan (IMP) is being developed in accordance to the United Nations Educational,
Scientific and Cultural Organisation (UNESCO) resolutions and will be signed in
July this year. A public participation process has been initiated to ensure
that this plan has the inputs and the feedback of the affected communities.

On 9 March, a first sod was turned for the building of the R12 million
Vredefort Dome Gateway Information Centre which will go a long way in
disseminating crucial information about the project. A Memorandum of
Understanding (MoU) between the Free State and the North West governments has
been developed and is ready for consideration by both Premiers.

Planning for the establishment of a conservancy in Clarence as part of
Maloti-Drakensburg Transfronteir project is in an advanced stage. This is
important to ensure voluntary biological conservation in accordance to the
Biodiversity Act of 2004 by land users in the affected area. A strategic
environmental assessment was developed and used to establish a spatial
development framework for the Dihlabeng and Maluti-A-Phofung municipalities.
The intention is to show zoning of the area and guides development around
Clarence to ensure sustainability without degrading the biological diversity of
international significance in this area.

Honourable Speaker, we have identified game industry as a critical component
of economic growth in this province. We are convinced therefore that this
industry should not be ignored and left to flourish outside the parameters of
economic development. On 15 February this year we hosted a ground breaking Game
Industry Transformation Indaba. Participants from game farmers, professional
hunters, large predator breeders, emerging game farmers, taxidermist and
academics resolved to establish a reference group whose responsibility will
among others include cleaning up the industry so that it can be protected,
developed and expanded.

The building blocks of our commitment to the transformation of the game
industry are the establishment of Black Game Farmers in the province. The
project was initiated by the donation of the game to two farmers and plans are
underway to expand this through the establishment of an additional four game
farmers during this coming year.

Success in a project of this nature is strongly reliant on the form and
degree of aftercare programs and care given to establish mechanisms which will
ensure that the emerging farmers are afforded the continued support they may
require. In addition to the current game donation programmes, the Department is
developing a policy which will guide the loan of valuable species of game such
as buffalo, to newly established black farmers. Although the exact extent and
nature of these loan schemes will only be expounded once the policy is
finalised, it is basically aimed at providing emerging game farmers with the
means by which they can obtain valuable and costly game species which would
otherwise be out of reach.

Honourable Speaker, allow me to take this opportunity to inform this house
and the people of the Free State that we will hold the annual game auction on
the 13th and the 14th of April at the Willem Pretorius nature reserve. This
game auction is an integral part of our game management plan and is expected to
raise more than R10 million revenue. We wish to take this opportunity to invite
potential game farmers and other game enthusiast to join us not only in making
this day a success but to ensure that we create the necessary environment to
attract new entrants especially from the previously disadvantaged communities
in this important industry that possesses immeasurable potential.

Honourable Speaker, healthy environment is an important ingredient of
sustainable development and economic growth. That is why we budgeted R79,453
for the MTEF period representing an increase of 57,4% from the adjusted budget
of 2006/07.

Honourable Speaker, this allocation will help us to comply with
international environmental requirements because through this we will continue
to make significant progress in identifying priority areas for
conservation.

Your first task therefore will be to compile and publish the first Free
State State of the Environment report by November 2007. This report should
indicate the provincial state of the environment.

Honourable Speaker, this report should be able to inform us about the
socio-economic situation this province is faced with. Therefore, it should deal
with the following environmental fields:

* availability and quality of water
* air quality and climate change
* social, economic and human settlements
* functioning of the ecosystem and the loss of biodiversity
* environmental governance
* provincial waste.

Our second most important task will be to establish Geographic Information
System (GIS) which must be up and running by September.

Speaker, the system will help and support decision making in the following
fields:

* biodiversity planning
* protected area expansion programme
* waste management
* environmental monitoring
* environmental impact management
* environmental planning and development.

Honourable Speaker, in line with the country's international commitment we
further wish to announce that we will be participating in global warming
control initiatives through planting more than 30 000 indigenous plants all
over the Free State with more focus in the previously disadvantaged areas. We
will target Mangaung as the host city in line with the FIFA 2010 strategy of
greening the host cities.

We will continue to capacitate and raise awareness on environmental issues
that affect communities through the following:

* acceleration of the eco-schools programme in the province
* celebration of environmental days like Water Week, Environmental Week, Arbour
Week and Ozone Day
* establishment of more enviro-clubs especially in townships where the state of
pollution is very bad.

Wetlands are internationally accepted as highly endangered systems
supporting life and as such, are being afforded international protection by the
Ramsar Convention of which South Africa is a signatory. We are currently
involved in the establishment and management of a wetland in the KwaZulu-Natal
and Free State border north of Harrismith. This initiative will add about 8 300
ha to existing wetland conservation efforts in the Free State. The
establishment and co-management of this park surrounding the Braamhoek/Bedford
pump storage scheme of Eskom, will bring the total area of high profile
wetlands under formal protection to around 14 000 ha in the province.

Honourable Speaker, we call on all Free State farmers and every person or
institution that has obsolete pesticides at their disposal to participate and
corporate with the African Stockpile programme. This programme is geared
towards developing an effective strategy for the collection of obsolete stocks
from the farming sector as well as developing prevention strategies to avoid a
recurrence of accumulation in the future. The project is under the overall
management of Department of Environmental Affairs and Tourism (DEAT) with the
global environment facility providing the financial support through a World
Bank Grant Agreement.

Honourable Speaker, we have been gravely concerned over a considerable time
now with both general and hazardous waste that is not handled and managed in an
environmentally sensitive and safe manner.

For this purpose we will be developing an Integrated Waste Management Plan
(IWMPs) framework for municipalities, waste generating facilities, institutions
and the industry.

Furthermore, these plans will assist us in optimising the use of our limited
resources and achieving cleaner and safer living spaces for our communities
through better planning and alignment of our functions. It will also be
expected of municipalities to include this planning within their Integrated
Development Plans (IDP) processes.

Honourable Speaker, if members are not aware government has declared war
against environmental crime. That is why I have designated highly trained
Environmental Management Inspectors (EMI) commonly known as the Green Scorpions
to enforce our law against environmental criminals on continuous basis. These
inspectors will be unleashed during the first quarter of 2007/08.

Because of the size of the province and high rate of non compliance in the
sector we will be training others during this financial year. Ladies and
gentlemen let me use this platform to assure you that their impact will
reverberate throughout the whole industry in the province.

As we draw nearer to 2010 we need to reassure communities that we will
ensure that records of decision for development are issued on time. I need to
further indicate to all stakeholders that government has issued regulations
that will ensure that the Environmental Impact Assessment (EIA) process is
completed within six months after the application date.

Another area of compliance is the issuing of game management permits. We
wish to confirm that we will continue to ensure that there is enforcement on
those permit conditions particularly on the large predators especially because
there has been a general violation of permits where this predators are involved
which in some cases resulted in the loss of human lives.

Up until now, nature conservation in the Free State province has been
regulated by the Nature Conservation Ordinance of 1969. It is obvious that this
legislation is outdated hence the new Free State Nature Conservation Bill has
been drafted and will be ready for public comments during 2007. This process
seeks to align the provincial legislation with the national legislation. A
series of workshops will be held throughout the province in an effort to
introduce the bill to the public and to afford interested parties the
opportunity to provide input by July this year.

The alignment and co-ordination of economic development strategies in our
Province deserve special attention if we are to make a meaningful contribution
towards intensified struggle against poverty.

We therefore announce that we have allocated R21.33 million to this
programme which is a 64,4% increase on the adjusted budget of 2006/07. This
allocation increases by 6,4% in 2008/09 and a further 6,5% in the 2009/10.

In pursuit of this co-ordination, during this financial year, the economic,
employment and investment cluster held Local Economic Development summits in
five district municipalities to lay the basis for cooperation amongst all
social partners in speeding up local economic development.

These workshops created a platform for all role players to engage one
another in identifying best practices in reversing the debilitating effects of
underdevelopment and unemployment. This we had to do so that together we could
identify those economic sectors with the potential to spur the economy in a
particular district to ensure that resources are channelled towards viable
projects that will have positive impact on the people of the province.

All these endeavours were done in response to the FSGDS.

Honourable Speaker, despite the reported decline in mining activity in this
province it is our strong believe that the levels of mineral deposits in this
Province are enough to establish small mining operators who will make an
immeasurable contribution towards job creation. We are currently in
consultation with the Department of Minerals and Energy to develop workable
strategies for the revival of the mining industry this time not motivated by
profits but by a need to intensify our struggle against unemployment and
poverty. This will culminate into a mining summit later during the next
financial year.

We have also taken note with interest at the surge in the construction
industry in the country in the recent past which resulted in the unprecedented
shortage of cement. We believe that the Free State posses adequate natural
resources in the Lejweleputswa District to create business opportunities in the
cement manufacturing and create the much needed jobs. We believe that taking
this bold steps will bolster our economic growth and put us well on our way to
achieve the targeted six to seven percent economic growth by 2014.

Honourable Speaker, this government and its people both in the Free State
and elsewhere in this country are united in their intention and efforts towards
accelerated economic growth. Every single one of us wherever we are deployed in
the private or public sector in the Free State or anywhere in the world, black
or white carries a responsibility towards this Province. We are making this
call motivated by the Freedom Charter which reminds us that "South Africa
belongs to all who live in it, black and white". The economic imperatives
dictate that the time is now to reverse the historical outflow both human and
natural resources to build the province for the coming generations.

It is for this reason, Honourable Speaker, which we call upon all men and
women who originally come from this province to take a patriotic move to plough
back in their communities by joining us in the Economic Round Table to be held
in April this year for a robust discussion on what needs to be done to improve
economic development and service delivery in our province. Ke nako ya ho beha
letsoho mohomeng!

Best business practices and fair trade between the retailer and the customer
are crucial ingredients for a successfully regulated market that contributes to
economic growth. For this reason we continue to be vigilant towards harmful
business practices. This year alone, we were able to act, through the consumer
protector and consumer courts on behalf of 289 consumers. Over 134 of these
cases representing a total of R840 000 00, were resolved in favour of
consumers.

It is our intention to intensify our advocacy work on consumerism so that we
could rid the commercial sector of these rouges elements. We wish to use this
platform to call upon consumer associations to raise awareness about this
important intervention. We urge any individual who is a victim of harmful
business practice to approach the consumer protector for free assistance.
Trends indicate that culprit sectors are, used car dealers, furniture shops,
money lenders and cellphone dealers.

Our trade promotion initiatives continue to contribute handsomely towards
improving the competitiveness of Free State products in the global market and
promoting the Free State as an investment destination. This, honourable
Speaker, we do as part of our strategy to create opportunities for the second
economy to migrate to the first economy. It is for this reason that we believe
that we should attract big business to relocate to our province but most of
all, to sustain it so that the proceeds of the first economy can help us build
the second economy.

To this end we participate in strategic exhibitions both internationally and
locally. Over the past financial year 158 Free State companies and/or products
have been exhibited at four international exhibitions locally and in foreign
countries and trade and fact finding missions were undertaken with an expressed
intention of finding opportunities and markets for Free State Companies and
products. Locally produced products, like arts and craft, flowers, machinery,
wine, jewellery, leather products and many more have been exposed to
international markets in countries like Belgium, Sweden, London and investment
opportunities were sought in countries like the United States (US), United
Kingdom (UK), Dubai, Germany and China.

Honourable Speaker, this is a critical intervention which seeks to ensure
that the Free State is not left behind when other provinces go offshore to look
for direct foreign investment. We wish to make it known that investment
promotion is an expensive and painstaking exercise with long term economic
benefits. Concerned about the levels of foreign investment in the Free State
this government is considering commissioning "investment spotters" who will
work through our trade missions and within available foreign agreements in
countries where we have identified markets like in Brazil, India, China other
countries.

We can report in this House today that a number of Free State companies
secured contracts through this intervention.

To enhance this process, we will once again take part at the SAITEX
exhibition this year, which is the biggest international trade exhibition in
the whole of the African continent and attended by people from around the
world. Over the years this platform has boosted the Free State profile and
image over and above the increased access to both domestic and international
markets resulting from our participation.

For the sixth year running, we organised the Premier Awards for Export
Excellence with a fresh approach.

In the next financial year we will see even more companies participating in
this event with more emphasis on those owned by the previously marginalised
sections of our population such as women, youth and the disabled.

As part of increasing export awareness amongst the Free State business
community, the Government will hold exporters summit in August later this year.
This will be an appropriate platform for both emerging and established
exporters to network and exchange ideas.

Honourable Speaker, development and promotion of small business in the Free
State is a priority to us. We are obliged to look after this sector of the
economy because it remains the biggest generator of job opportunities. We
always have to ensure that government facilitates the mobilisation of resources
from the public and the private sector for the development of small enterprises
in the province. Resources must be utilised for the identified programmes that
will enhance the development of small, medium and micro enterprises (SMMEs)
including co-operatives in the province.

In her State of the Province Address (SOPA), the Premier emphasised this
intervention when she said, "In order to further strengthen the role of the
SMMEs in our economy we have decided to implement a much more robust support
programme. Henceforth, we would like to move towards ring fencing at least 70%
of all government procurement for SMMEs and especially for women and youth
owned businesses."

Honourable Speaker, this directive gives expression to the spirit of the
Congress of the People in Kliptown on 26 June 1955 when the people declared
that, "The people shall share in the wealth of the country. All other industry
and trade shall be controlled to assist the wellbeing of people."

I wish to take this opportunity to clarify any confusion around state
procurement policy. The 80:20 adjudication system for procurement of services
and goods below R500 000 allocates 20% for status of the service provider for
being disenfranchised, being a Free State company, disability, gender and being
an SMME, 80% is spilt between functionality and the price at
40/40.Functionality relates to the ability, capacity and available expertise to
deliver. Price therefore is not the determining factor.

To further achieve the directive, we have identified fifteen (15) most
procured items which we believe will assist us in creating the critical mass of
the SMMEs in our province. Let me also indicate to this house that we have to
make sure that we are concerned about some departments who fail to pay service
providers within 30 days. We are currently considering proposals to the
Executive Council to consider disciplinary measures against officials who
violate this policy. This may include payment of the interest payable to the
company from their own pockets.

We are delighted to inform this house that we recently held a Small Business
Week and international exhibition in Bloemfontein where entrepreneurs from the
Free State were given information about business opportunities presented by
government. We have gained a valuable feedback from participants about how the
government should address their needs so that their assimilation in the main
economy is speeded up.

Let me take this opportunity to announce that this province will host the
first International Trade Group (ITG) BEE conference and SMME Expo in May this
year. ITG�s main aim is to create a platform to show case Free State SMME
products and access to information to business opportunities from both the
private and the public sector.

Honourable Speaker, the pivot around which our public mandate revolves is
well oiled delivery machinery, the public servants and policies that govern the
operations of this Department. For this purpose, we have allocated R56,104
million representing 16,5% compared to the adjusted budget of the current
fiscal year.

In its editorial of 12 February 2007 the Business Day newspaper makes an
interesting though debatable observation. It reads in part, "This government
has plenty of good policies in place. Its problem is implementing them.
Arguably there is often too much time, money and intellectual energy spent on
developing and redeveloping new policy frameworks and not nearly enough on the
hard slog of getting them to work in practice."

We can not agree more with Business Day on the issue of good policies. No
other government in this country can boast such an achievement. There is also
no argument that in our first decade in government it was important to develop
new policies and to change them if we found them not responding to the needs of
the poor majority in this country, we can not apologise for that. It is equally
true that we do possess the intellectual energy to implement these policies.
This is the reason why we put more emphasis on the allocation of quality human
resources.

Our challenge in this regard is to identify scarce skills from among the
previously disadvantaged. We have, therefore, resorted to growing our own
timber. To this end, in the current financial year we have registered 18
learners in the conservation and tourism reception learnership and five
learners in the ICT learnership.

We were also able to take up 36 interns in various line functions in this
department. Honourable Speaker, allow me to report in this house that 16 of
these interns have been permanently placed in this Department and in elsewhere
in the public and private sector.

Speaker, in response to the Premier's commitment to improve on the
provincial co-ordination of the skills development initiatives especially Joint
Initiative for Priority Skills Acquisition (JIPSA), we wish to record that
R2,55 million has been budgeted for skills development in this department in
the new financial year.

Honourable Speaker, our Department approaches the 2007 central mandate of
eradicating poverty from many fronts that is why we have four public entities
with the fifth one to be established later this year to help us build the new
South Africa eloquently put during the SONA by President Mbeki when he said,
"The struggle to eradicate poverty has been and will continue, be a central
part of national efforts to build the new South Africa."

In this context SMME plays a pivotal role in building the new South Africa,
hence in her state of the province address Premier Marshoff said, "the
development and expansion of SMME constitute one of the key pillars of our
growth and development strategy. It is for this reason that the Free State
Development Corporation (FDC) was repositioned to focus primarily on SMME
development."

Against this noble programme, a total amount of R400 million is been availed
for SMME development through the FDC in this province.

As a result of its repositioning and the national efforts to build the new
South Africa, the FDC board committed the institution to reduce the cost of
doing business and lessens the burden on the SMMEs by introducing new financial
model which include:

* below prime interest rate
* six months extension period for repayment holiday
* relaxed security and collateral
* less requirements for own contribution and many more.

Honourable Speaker, this good process means that I will hold the board and
the management of the FDC both collectively and individually responsible for
every single business that collapses after being financed by FDC. However, we
also wish to emphasise that FDC clients were given a window period until
February 2007 to make arrangements to repay their loans. Those who have not
made arrangements will be faced with firm debt management practices.

After consultation with the FDC board, the Economic, Employment and
Investment (EEI) cluster has approved the policy to hive off FDC's non-core
assets like the industrial, commercial and residential housing stock.
Undoubtedly this process will endeavour to benefit those who contributed in
building the economy and the wealth of this country but were not in a position
to lay claim on the ownership of this wealth especially blacks in general and
Africans in particular. We are currently putting in place the logistical, legal
and administrative preparations for the implementation of this policy.

Honourable Speaker, the Free State Gambling and Racing Board's mandate is to
develop and regulate the gambling industry to ensure economic and social
benefits in the Free State. For this purpose, we have budget a transfer of
R12,931 million. Last year I made a commitment that Limited Payout Machines
will be rolled-out across the Province. I am happy to announce a significant
progress made by the Free State Gabling and Racing Board in this regard and the
policy has been approved and will be implemented in the near future.

The Request for Proposal (RFP) which calls for applications in relation to
this exercise was approved by the board on 27 February 2007. The process of
issuing out RFP is now underway. The policy and RFP seek to be bias towards
Free State companies, SMMEs and Black Economic Empowerment (BEE) companies but
most of all blacks in general and Africans in particular.

Only 4 000 Limited Payout Machines will be issued across the five district
municipalities of the province.

In the beginning, an initial roll out of 2 000 machines will be issued to
two route operator licensees. A further roll out will only take place once a
socio-economic impact assessment has been conducted.

As indicated previously, tourism and tourism promotion is an integral part
of our mandate. The Free Stat Tourism Authority is mandated to market the Free
State as a preferred inland tourism destination. To top up the tourism
allocation of R93,592 million we have budgeted R11,2 million for the marketing
of tourism through this entity. Our priority, Speaker, is to ensure that the
people of the Free State themselves discover their own province. As we
crisscross the world promoting the Free State, we should not miss the
opportunity to teach our people about the importance of tourism and its role in
creating work. This agency has started with the roll out of the tourism master
plan and the tourism marketing strategy. Free State Tourism Authority will
undertake an all inclusive public participation process for the branding of the
province for tourism. We will unveil the Free State brand in September
2007.

Our research has revealed that different districts of the Free State have
different and yet complimentary potentials and competitive advantages in
tourism. We now know that Motheo District is very strong in business, sport and
cultural tourism. Thabo Mofutsanyana is known for its holiday and cultural
tourism whilst Lejweleputswa is loved for its sports and weekend activities.
Fezile Dabi District is better known for weekend and cultural specialty and
Xhariep has got a huge potential in sports attractions.

If we are to make a dent in this growing industry, we have to demarcate and
package our province in this manner. We have to take this strategic approach if
we are to win in the battle to encourage tourist to extend the length of their
stay and spend more money in our province.

Speaker this year marks the 10th anniversary of the Mangaung Cultural
Festival (MACUFE) which has grown in leaps and bound over this period. This
period has given us the opportunity to review this flagship cultural event and
has put us in a position to improve so that we could make it bigger and better
with a fresh approach. We hope to invite the private sector to partner us in
revamping this event as we prepare for 2010.

Honourable Speaker, we are happy to announce that the Investment Promotion
Agency has been established with the appointment of new board members
completed. The allocated amount for the next financial year's transfer to
enable this new entity to execute its mandate is R7 million. Today as you
adjourn the proceedings here we will officially inaugurate these members at a
luncheon.

We are more than convinced that we have a correct fusion of requisite skills
to make sure that we can feel the impact of this new structure soonest. A solid
foundation was built by the trade and investment directorate from which the
agency can launch its offensive in attracting much needed foreign investments
to the Free State. In constituting this board we looked for relevant skills in
accounting, legal, strategic management, economics, global markets and
finance.

We are going full steam ahead in ensuring that the agency becomes
operational as soon as it is practically possible starting with the appointment
of the chief executive officer (CEO). This we want to do so that we can
capitalise on the high business confidence shown by international markets in
South Africa.

The Free State Liquor Authority Bill is currently before the legislature.
The promulgation of this bill hopefully later this year will pave the way for
the establishment of the Free State Liquor Authority. For this entity's
operations, we have budgeted R5 million. A number of concerns and complaints
received from the members of the public in the recent past have necessitated
radical changes in the administration of liquor licences within the
Department.

We have discovered serious shortcomings in the current administrative
arrangement and had to beef up the administrative staff so that we can deal
with the backlog and other administrative hiccups in this sector. We also wish
to report that a forensic audit is currently underway to determine the extent
of the problem and who the culprits are. We are doing this so that at the time
of the establishment of the new entity all concerns have been resolved or are
in the process of being resolved.

I wish to take this opportunity to inform this House that the establishment
of the Logistical Hub in Harrismith is on track. Positive engagement has been
initiated with provinces of Gauteng and KwaZulu-Natal as well as the Transnet
and Ports Authority.

Honourable Speaker, let me take advantage of the occasion to express my
gratitude to the Chairperson of the Portfolio Committee on Tourism,
Environmental and Economic Affairs, honourable Thoko Mokoenanyana and members
for ensuring that we are always in a position to account to the electorate
about our public mandate.

The support and commitment and leadership demonstrated by the Premier and
members of the Economic, Employment and Investment Cluster over the past year
has made a meaningful impact in the lives of many people. Much is still
expected from us. Let us work with the same commitment and vigour to better the
lives of our people.

Special thanks to my family for their understanding of the demanding role of
the broad front against poverty.

My gratitude also goes to members of the boards of public entities who have
taken up the daunting challenge of partnering this government in the effort to
intensify the struggle against poverty. We appreciate and value the difference
you make in this regard.

Lastly, my sincere gratitude to the Head of the Department, Mr Thabo
Khunyeli and all departmental officials and officials of the public entities
for putting the shoulder to the wheel in ensuring that the Department is
responding with vigour to its challenges.

I wish to conclude by urging all of us to draw our inspiration from one time
king of the Tour de France, Lance Armstrong. Allow me to quote from his book
'It's Not About the Bike, My Journey Back to Life,' a chronicle of his fight
against cancer. He says "The only difference was that I had to focus better and
harder than I ever did on the bike. With this illness, I couldn't afford
impatience or a lapse in concentration: I had to think about living, just
making it through every single moment. The idea was oddly restorative, winning
back my life would be the biggest victory."

Honourable Speaker, It is my belief that winning the struggle against
poverty will be the biggest victory for our people.

I thank you!

Issued by: Department of Tourism, Environmental and Economic Affairs, Free
State Provincial Government
23 March 2007