Honourable Speaker and Deputy Speaker
Honourable Premier, Comrade Cassel Mathale
Colleagues in the executive council
Chairperson of the Portfolio Committee on Public Works, Comrade Joyce
Maluleke
Members of the provincial legislature
The Chairperson of South African Local Government Association (SALGA) Limpopo and Executive Mayor of Vhembe district municipality, Councillor Dr Falaza Mdaka
Executive mayors, mayors and councillors of our municipalities
The leadership of the ANC and alliance partners
Veterans of our movement
Leaders of organised labour
Leaders of opposition and other political parties
Our built environment partners and client departments
Our partners in service delivery, the Independent Development Trust (IDT)
Community and traditional leaders
Leaders of various faith communities
Formations of youth, women and people with disabilities
The Director-General of our province, Dr Nelly Manzini and heads of departments
South African Women in construction
Kamoso awards winners
National Youth Service graduates
Head of Department of Public Works, Me Morongoa Ramphele and her executive management team
Comrades, ladies and gentlemen
Introduction
Ours is not the beginning but the continuation of a journey started by our forebears back in 1912 with the founding of Africa’s oldest liberation movement, the African National Congress (ANC) in Mangaung. Since then men and women have emerged within the ranks of the ANC to provide leadership and guidance to the aspirations of the people of South Africa.
Here reference is made of the presidents-general of this giant movement like John Langalibalele Dube, through to Pixley ka Isaka Seme, Inkosi
Albert Luthuli, to Oliver Reginald Tambo, Nelson Rolihlahla Mandela to,
Jacob Gedleyihlekisa Zuma elected to the position at the watershed 52nd national conference held at the University of Limpopo in 2007.
Never anywhere in its entire history has the ANC ever disappointed or failed the people of this country. For the people of this country, there is only one party that is their hope for a tomorrow that is better than today.
Honourable Speaker
The only hope for the people of this country is undoubtedly the ANC, and so will it always be, hopefully until the end of time. How else can we explain the overwhelming support the ANC receives election after election? For some small sections of society this is a mystery that has occupied them since our first democratic elections in 1994.
As for the masses of South Africans, there is no mystery in their overwhelming support for this ANC. They trust their ANC. The trust, love and confidence that the people have on the ANC comes at a huge price, a price that all of us must be ready and willing to pay. The price is to stick to the narrow and difficult path pioneered by the Class of
1912. We dare not forget today that we are the descendants of these great men and women.
Together we can do more; this is the clarion call the African National
Congress sent out to the people of our country in the build up to the April 22 general elections. This call was in competition to many others who went on bended knees and opportunistically spoke the languages of our people in an effort to win their favour for an odd vote here and there.
It is today common knowledge that the people of our country know much better than they are given credit. They settled for their tried and tested African National Congress which they overwhelmingly endorsed at the polls in April 2009, like they did in all elections going back to April 1994.
As we stand before this august house today to deliver the Department of
Public Works budget policy speech it is with a million words of gratitude to the people of South Africa for taking a conscious decision to entrust their destiny on the ANC.
Honourable Speaker
In return for this overwhelming vote of confidence the President of the
ANC, Jacob Zuma, had this to say during his opening remarks to the
National Executive Committee Lekgotla in January: “The 8 January statement of the ruling party provides the line of march for 2010. The theme of the year is simple, yet so important: Working together to speed up effective service delivery to the people. This theme will guide the design and implementation of our programme of action for 2010.
“Faster, more responsive, caring and effective service delivery is what we want to see in 2010. Taking our people seriously, putting people first in service delivery in the real sense, should define our work in 2010.”
Honourable Speaker
Greening Limpopo
Yesterday we were in the Makhuduthamaga local municipality, Sekhukhune district, to launch the Greening Limpopo campaign which will see over a million trees planted in the province each year until 2014. The campaign is premised on the following subjective factors:
* Poor and unsustainable agricultural practice
* Growth of the commercial forestry industry in sensitive environmental landscapes
* Rapid mining activities and different land use development
* Irresponsible human activities on natural habitats
* Conflict between conservation and development needs
* Unsuitable biodiversity
* Inadequate strategic thinking and planning regarding the importance of biodiversity.
I am sure honourable members will agree with me that the degradation of the environment is acute in rural areas where communities have no access to electricity and have to use wood or other alternatives for energy. As part of the programme to green our province a business case was prepared and presented to various stakeholders and authorities.
This was followed by a programme of mobilising key stakeholders to solicit their support and active participation. Steering committees to drive the campaign have been constituted at district level and will be cascaded to individual communities for effective implementation. This is done in partnership with other departments like agriculture, education and so on.
The campaign will bring forth the following immediate spin-offs:
* It will create job opportunities in line with Extended Public Works
Programme (EPWP) principles. The employment creation potential is approximately 7 000 people in the period from 2010 to 2014
* The planting of indigenous trees to reclaim lost indigenous vegetation
* Roll back the desertification and deforestation afflicting many parts of our province
* Contribute to food security initiatives through the planting of fruit trees
* Provide training and exposure in greening and horticulture
* Contribute to the world-wide movement to reduce comprehensive global warming
Honourable Speaker
The launch of this campaign would have not been possible if it were not of the generosity of our private sector partners who gave a lot of their time and resources. Special acknowledgements are due to the following private sectors partners who made this launch a success that it was, these include mining houses, banks, retailers and communication companies.
We dare not forget local businesses in various municipal areas and individual donors. Now that the official launch has occurred, the campaign will cascade down to our local communities where its success will lend colour and life where none existed.
Energy efficiency in government buildings
Honourable Speaker
Government will continue to assist Eskom in the quest to maximise energy efficiency across departments. The initial target set was to ensure that government in the province effect a 10 percent reduction in electricity consumption by implementing efficiency measures. It is with pride to note that to date the implementation of energy efficient lighting in the three government complexes in Lebowakgomo, Giyani and Thohoyandou, is at 80 percent.
We will continue to work hard to ensure a further reduction until all government buildings are fully compliant. In the foreseeable future we want to see Eskom power being supplemented by other renewable energy
sources in line with the province’s Green Economy initiative.
Housing government
Honourable Speaker
In order to ensure that government effectively delivers on its mandate, the Department of Public Works is proud to facilitate accommodation and office space for the following provincial state departments: Sport, Arts and Culture; Roads and Transport; Local Government and Housing; Education and the Legal Services of the Office of the Premier. We have also facilitated the extension of the Office of the Premier and the additional office space for the Department of Safety, Security and Liaison.
One of the major projects the department will be engaged in during the
2010/11 financial year is the programme to address staff accommodation needs for health professionals for the Department of Health and Social Development.
The process of relocating the provincial legislature from Lebowakgomo to
Polokwane will also be given priority in the coming financial year once all processes with stakeholders are complete.
In pursuit of the speedy implementation of the decision to erect new premises for the provincial legislature the following activities have since occurred:
* We have constituted a technical task team made up of experts in relevant disciplines
* A funding model has been developed and awaits approval
* A preliminary project implementation plan, informed by all the requisite activities and processes has been developed.
It therefore stands to reason that this legacy project will take off the ground sooner, rather than later. The process of relocating the government district functions of Sekhukhune from Lebowakgomo to where they rightfully belong in Jane Furse are at an advanced stage. The district government complex will be up and running in Sekhukhune.
In addition to these major projects, we shall also prioritise during the course of the financial year the process of donating provincial government offices to the district municipalities of Mopani and Vhembe to enable them to function optimally.
An audit of the accommodation needs of the provincial government will be done continuously so that the administration can function efficiently and optimally.
Honourable Speaker
Government Immovable Asset Management Act (GIAMA)
Strides have been made to implement the provisions of the act across government. Key to the implementation of this key piece of legislation is the development of the asset management register that meets the minimum requirements of the Act. In line with the provisions of the act, provincial departments will be required annually to compile asset management plans which will form part of the government strategic planning and budgeting processes.
As part of the GIAMA implementation, the Department of Public Works is in the process of developing a plan to complete the provincial immovable asset register in a cost effective manner through identifying items that can be done internally and those that can be outsourced. Other measures taken so far include the establishment of the Provincial User Forum, the drawing of the GIAMA budget cycle and the implementation plan to address the milestones set out by the Office of the Auditor-General and the Office of the Accountant-General.
It is important for all government departments to fast-track the implementation of this act as failure to adhere to the GIAMA budget cycle can result in unauthorised expenditures on accommodation and maintenance that will in turn lead to qualified audits.
Honourable Speaker
Property Management Transformation
In pursuit of the ideal to transform the property market in favour of the historically disadvantaged the department has in the financial year now coming to an end, conducted a workshop on the government’s property management strategy. We are fully conscious of the challenges that still confront the historically disadvantaged in breaking into the property market in its broad manifestations.
The department has already begun with a programme of ensuring that we implement other provisions of the property management strategy through our business of leasing office accommodation for government departments.
We are confident that the Property Incubator Programme, to be unveiled by the national Minister of the Department of Public Works, will further enhance the entry of the historically disadvantaged into the mainstream property market.
Honourable Speaker
Devolution of Municipal Rates and Taxes
The Department of Public Works is also responsible for the devolution of municipal rates and taxes. We have in the past identified gaps in the process of paying the rates and taxes to beneficiary municipalities. The major challenge here is the delay in the process of verification of some of the properties. Some have been devolved while others have not been devolved as yet.
To deal with this invidious situation the department has set up a joint technical task team with the Limpopo chapter of the South African Local
Government Association (SALGA), to clear the confusion and all uncertainties over devolved properties. We will therefore utilise the first quarter of the 2010/11 financial year to engage municipalities, through SALGA, to submit their draft lists so that we can finalise the list of properties devolved and be ready for billing.
It is envisaged that municipalities will start their financial year 2010/11 on clean slate with all the issues on municipal rates and taxes laid to rest once and for all.
Honourable Speaker
Construction Industry Development Board (CIDB) Contractor Contact Centre
In a few weeks time from now we will be officially unveiling the Construction Industry Development Board provincial Contractor Contact Centre (CIDBCCC) which is housed at Works Towers, the head office of the Department of Public Works.
This office will add value to contractors, especially emerging contractors, who no longer have to travel all the way to Pretoria to attend to their CIDB registration needs. In order to improve the entire construction delivery chain, the Contractor Contact Centre will also enhance access to advice and information for contractors, the consulting professions and public sector clients.
Honourable Speaker
Building maintenance
The Building Maintenance Executive programme of the department will continue to lend support to the Expanded Public Works Programme (EPWP) and the National Youth Service programme, by providing training on various building maintenance trades like plumbing, carpentry, electrification and landscaping.
As we speak today 495 learners who are part of the National Youth Service programme are undergoing training in maintenance in our five districts.
For the financial year 2010/11 these are projects that the department’s
Building Maintenance programme will roll out:
* renovation of the premier’s guest house
* phase two of the refurbishment of the three government complexes in
Mopani, Vhembe and Capricorn
* maintenance of 90 residential houses
* maintenance of 12 blocks of offices
* development of 6 ha of landscaping at Lebowakgomo and Giyani government complexes
* one store room and one lift to be installed at the Nebo cost centre
* one thousand one hundred and eighty four government facilities to be audited for demand side
management for electricity consumption, and
* one thousand one hundred and eighty four government facilities to be fitted with energy efficient bulbs
Honourable Speaker
The allocated maintenance budget for the financial year 2010/11 is
R53.3 million, whereas the required budget to address the maintenance backlog was R161 million. Therefore the minimum maintenance requirements in terms of the GIAMA will not be fully realised with the limited allocated budget. We however are prepared to do more with what is at hand.
In the execution of our mandate to construct and maintain the provincial infrastructure, we will take our cue from the MEC of Provincial Treasury,
Comrade Sa’ad Cachalia, on the occasion of the delivery of the provincial
2010/11 Budget Vote when he said: “Infrastructure assets should be planned and budgeted for throughout their cycle from planning to disposal.
“This will ensure that assets operate efficiently and they are maintained cost effectively. Unless maintenance is improved, funds to address the cost of repairs and unplanned replacements will have to be sourced from capital budgets. This will severely limit the budgets for addressing the backlogs and expanding service delivery.
“Therefore, maintenance should be high on our provincial agenda, as it is a strategic tool that offers outstanding opportunities for economic stimulation, job creation, capital expenditure expansion and sustainable delivery achieved while community aspirations are met”.
Comrade Sa’ad’s observations echo the national infrastructure maintenance strategy (NIMS) as approved by the national Cabinet in 2006. The NIMS argues that: “If government spends its maintenance budget on fixing infrastructure only after it has already broken down, then it is effectively throwing away a large proportion of that budget that could rather have been used elsewhere to improve the quality of life of its citizens.
“This is because it is much cheaper to carry out periodic preventative maintenance than to do repairs when infrastructure breaks down.”
Honourable Speaker
Disposal of redundant state properties
The Department of Public Works as the custodian of all government immovable assets is faced with the task of disposing of redundant state properties. We are presently engaged in the process of finalising the transfers of properties which have already being disposed of. Of the rest of the redundant property stock, a moratorium on further disposals is still in place and we therefore cannot move any further. We will only be able to move forward with disposals as and when the moratorium is lifted.
The department organised a workshop for the Portfolio Committee on
Public Works to among others, appraise members on the processes and procedures of disposing redundant state properties. An exposure tour to some of these properties, in Polokwane and Lebowakgomo was also conducted.
Honourable Speaker
Administration
The Department of Public Works is at the centre of providing leadership in provincial infrastructure planning and development. In order to stay true to this mandate, we have concluded initiatives aimed at redesigning the organisational structure and developing a Service Delivery Model to be aligned with the Strategic Plan of the department and the Limpopo employment, growth and development plan.
It is envisaged that the new organisational structure and the service delivery model will ensure that the department meets its key objectives and remains the service provider of choice for government accommodation and infrastructure needs.
The redesign of the organisational structure is being complemented by a change management process that is underway to reinforce positive organisational values which orientates our human resources towards an improved service delivery culture. For the 2010/11 financial year this support programme has been allocated R259.788 million
Honourable Speaker
Infrastructure Cluster
Consistent with the pronouncement in the State of the Nation Address by our Honourable President Comrade Jacob Zuma, the provincial government has established the Infrastructure Cluster whose main responsibility is to provide a single entry point for the delivery of high quality infrastructure.
Through the pooling of specialised skills in the built environment, government will build internal strengths and skills which will enable consultants, contractors and other delivery agents to deliver the high standards of quality which the people of the province can be proud of.
We have to date appointed an engineering firm, Bigen Africa as an infrastructure delivery improvement advisor. Its mandate is to monitor the implementation of the service delivery improvement plan. Through the developed 15 year infrastructure delivery plan, and the team that is being put together in the infrastructure cluster, we are certain that
Limpopo will in time be better positioned to become the national leader in infrastructure delivery.
Honourable Speaker
Engineering contractors face decline
In a stark contrast to double digit real growth from 2005 to 2009 the engineering industry this year faces a possible 10 percent decline. According to the South African Civil Engineering Contractors (SAAFCEC): “Competition for tendering is heating up and companies complain of predatory mind set, which will increase the risk for contractors engaging in maverick pricing. This could possibly lead to the demise of contractors over the next two years,” said the SAFCEC economist Pierre Blaauw.
It therefore needs no rocket scientist to come to the correct conclusion that those who are likely to be most affected are the vulnerable emerging contractors. This is a challenge for us in government to find creative means to jointly with the sector find creative ways and means of cushioning the most vulnerable from this possible decline.
Honourable Speaker
Still on the same topic, the Consulting Engineers of South Africa (CESA) has recently revealed that the number of engineers employed by government has reduced by nearly two thirds while the population served has increased almost fourfold.
This lack of technical management expertise, particularly in municipal and provincial government departments, is likely to be the single biggest stumbling block to sustainable development and growth. This challenge will obviously occupy us for many years as we grapple with the broader skills-shortage crisis the country in general has to contend with.
Honourable Speaker
Expanded Public Works Programme (EPWP)
The EPWP was conceived as a government wide initiative to alleviate poverty through job-creation, skills development and the improvement of public service delivery. It is one of government’s short to medium term programmes aimed at alleviating and reducing unemployment and covers all spheres of government.
The programme involves re-orientating line budgets so that government expenditure results in more work opportunities, particularly for the unskilled. Therefore EPWP projects will be funded through the normal budgetary process, through the budgets of line-function departments, provinces and municipalities.
The premier has already pronounced on the performance of our province on the commitment made by the President to create 500 000 jobs by December, 2009. According to official figures, Limpopo’s contribution accounts for 49 071 jobs. The national target of phase two of the EPWP is to create 4.5 million work opportunities in five years. This translates to 2 million full time equivalent jobs. Of this national target, Limpopo has the mandate to contribute 441 993.
From the lesson of phase one of EPWP we can confidently declare that we will reach our target as set under Phase II of the programme. The budgetary allocation for the Expanded Public Works Programme for 2010/11 has taken a slight dip at R18.642 million from the R24.929 million of 2009/10.
Honourable Speaker
Cooperation agreement with the Independent Development Trust (IDT)
In our quest to deliver on our mandate we need strong and efficient partners to work with us to ensure that communities benefit in government efforts to make the lives of our people change for the better. It is therefore my pleasure to introduce our new partner in development, the Independent Development Trust.
IDT is not new to the province, it has done work in various areas of the province for sister departments like education and nationally for the Departments of Rural Development and Land Reform, and Justice.
In 2009 the IDT was appointed by the national Department of Public Works to be the implementing agent of the second phase of the EPWP for the non-state sector. In this capacity as an implementing agent, the IDT is expected to create approximately 640 000 work opportunities by 2014.
It is envisaged that on 7 April 2010 the Department of Public Works will enter into an agreement with the IDT to give a provincial manifestation of the national arrangement on EPWP.
Honourable Speaker
Kamoso Awards
The Kamoso Awards programme was established by government to reward municipalities, provinces, departments and public bodies which excel in implementing EPWP in various sectors. During the last awards ceremony our province emerged victorious in the following categories:
Social sector
* Best province (runner up)
* Best province Early Childhood Development (ECD) (winners)
* Best province home based care (runner up)
* Best innovative project: Manyeleti Youth Academy (winners)
School Nutrition project (runner up)
Environment and culture sector
* Best province (winner)
* Best project, national: Greening Vhembe (winner)
* Best project, provincial: Mavhungeni slag (runner up)
* Best project, local: Thulamela (runner up)
: Lebowakgomo (runner up)
* Best cooperative: Mbhombela Cultural Group (winners), Mavhungeni slag (runner up)
From the accolades we have received, it is quite obvious that the province excelled in the roll out of social and environmental projects. A lot needs to be done to ensure that we compete favourably in infrastructure as well. We hope to do more in this year Kamoso Awards to bring more honour to our province by scooping even more awards, especially in the infrastructure sector.
Honourable Speaker
National Youth Service programme in building and maintenance
In 16 October 2007 the Department of Public Works launched its National
Youth Service programme as a response to the pronouncement in the
State of the Nation Address delivered on 9 February 2007. The first intake of 574 learners were recruited and accepted into the programme.
These learners were drawn from all the districts on an equitable basis. Once admitted to the programme the learners were placed in their home districts. The programme is a collaborative effort involving the following parties:
* National Youth Agency
* Expanded Public Works Programme of the Department of Public
Works
* Department of Labour and
* Relevant Sector Education and Training Authorities (SETAs)
At the conclusion of phase one of the programme at least 50 of the learners were permanently absorbed into the organisational structure of the department. Those who are skilled but couldn’t be absorbed into the
Department have the option to either gain employment elsewhere or venture into private business.
The second intake of 495 learners is currently under training as part of phase two of the programme. This phase of the programme will run until 30
September 2010. These learners will graduate with skills and exposure in various maintenance trades such as plumbing, electrification, carpentry and landscaping.
Not less than five percent of these learners will be absorbed within the building maintenance function of the department. In collaboration with municipalities and sister departments a lot more job opportunities can be created through this programme.
Honourable Speaker
The class of 2000
In an endeavour to meet the human resources needs of the province the department on annual basis offers bursaries for students in the built environment. The accelerated provision of class rooms will also add to the creation and nurturing of an environment conducive to effective learning.
During the Back to School campaign early in the year we took our constituency work to the Makhado local municipality where six schools were visited. We used our visit to these schools to commend those of the class of 2009 who succeeded in their Grade 12 and encouraged those who couldn’t make it.
Education cannot be a business of the Department of Education alone, it needs to be a business of everyone. This is the reason why all of us need to join to be out there in communities, mobilising all to be part of the movement for quality education.
Honourable Speaker
Our commitment
Honourable Speaker, ladies and gentlemen we wish through this budget policy speech to make a commitment to the Premier, Comrade Cassel Mathale and the people of the province that in the financial year we are about to enter, for the Department of Public Works it will be business unusual, to ensure that we meet all our targets, on time and within budget. This we do bearing in mind that our mandate as the Department of Public Works is to make government work.
Honourable Speaker
2010 FIFA World Cup
Once again allow me to echo the words of the honourable premier on the occasion of the delivery of the State of the Province Address when he said: “We are wishing our national soccer team Bafana-Bafana glory and triumph during the (world cup) tournament”.
Africa ke Nako!
Honourable Speaker
Acknowledgements
The milestones the Department of Public Works has attained to date would have been a dream deferred if it were not because of team work which the
ANC has given full expression through its theme of, working together we can do more.
Words of gratitude are due to the Portfolio Committee on Public Works under the stewardship of the Honourable Comrade Joyce Maluleke for their critical support during the past financial year. Your support has been vital in taking the work of government forward and improving the lives of our people.
Special thanks go to our stakeholders and client departments for their support during the financial year. Lastly I wish to thank the Head of
Department, Me Morongoa Ramphele, the executive management and the general staff of the Department of Public Works who work tirelessly to ensure that our mandate is realised. Your support has been vital in us taking the work of government forward and improving the lives of our people.
Lastly and most importantly, I wish to thank the one and only authentic congress of the people, the African National Congress, for the trust it has bestowed on us to lead the Department of Public Works. In return, we pledge to walk on the footsteps of the giants of this oldest liberation movement in ensuring that the dream of a better life for all our people is given concrete expression.
Honourable Speaker
I take this opportunity to table before this august house, budget vote nine of the Department of Public Works with the accompanying strategic and annual performance plans, for appropriation.
Working Together We Can Do More. South Africa works because of Public works
RE A SOMA
I thank you.
Thobela
Inkomu
Ndaa
2010/11 medium term expenditure framework (MTEF) and budget allocations summary
2010/11 (R’000)
Administration: R259.788
Public Works: R465.984
Expanded Public Works Programme: R24.929
Budget: R750.701
Compensation: R503.290
Goods and services: R164.136
Rent on land: R16
Province and land: R20.254
Households: R4.855
Building and fixing structures: R53.300
Machinery and equipment: R4.850
Total budget: R750.701
2011/12 (R’000)
Administration: R263.701
Public Works: R522.908
Expanded Public Works Programme: R18.642
Budget: R805.291
Compensation: R542.129
Goods and services: R173.016
Rent on land: R16
Province and land: R22.693
Households: R5.259
Building and fixing structures: R57.048
Machinery and equipment: R5.100
Total budget: R805.291
2012/13 (R’000)
Administration: R269.559
Public Works: R547.239
Expanded Public Works Programme: R19.829
Budget: R836.627
Compensation: R576.025
Goods and services: R164.566
Rent on land: R16
Province and land: R25.576
Households: R5.700
Building and fixing structures: R58.817
Machinery and equipment: R5.927
Total budget: R836.627
2010/11 budget allocations for programme one: Administration
2010/11 (R’000)
MEC support: R4.160
Management: R1.920
Corporate services: R116.754
Strategic finance: R61.161
Human resources management: R35.843
Strategic management: R7.005
Government Information Technology Council (GITO): R32.490
Total budget: R259.788
2010/11 budget allocations for programme two: Public Works
2010/11 (R’000)
Real estate: R119.031
Project management: R31.816
Professional services: R3.280
Building maintenance: R307.386
Programme support: R4.471
Total budget: R465.984
Source: Department of Public Works, Limpopo Provincial Government
(http://www.dpw.limpopo.gov.za/)
