Madam Speaker
The Premier of KwaZulu-Natal, Honourable Dr Zweli Mkhize
Members of the provincial executive council
Honourable members of the provincial legislature
Amakhosi aseNdlunkulu present
Mayors and councillors of municipalities
Director-general and heads of the various departments
Excellencies, members of the diplomatic corps
Distinguished guests, ladies and gentlemen
Senior officials of government departments
The leadership of the public transport industry
Members of the media
Citizens of KwaZulu-Natal
Working to build a better future together
Madam Speaker, I rise to table my maiden budget speech for the Department of Transport budget vote 12, in my capacity as the new executing authority for the department under the theme: "Working to Build a Better Future Together", this theme best captures our mandate in the department.
As we construct and maintain roads, provide access, facilitate integrated public transport provision, advocate the safety of all road users, we firmly believe in working together with the wider community of KwaZulu-Natal to realise our departmental vision of prosperity through mobility.
The budget speech we present today in this house is dedicated to the stability in the taxi industry. The digital versatile disc (DVD) you have seen honourable members bears testimony on our resolve to intensify our focus on this industry. This industry by practise and trade speaks to the core of Black Economic Empowerment (BEE), thus our contribution towards its economic emancipation must be evident not implied.
The year 2010 is unique in many ways and is certain to go down in history as yet another significant turning point for South Africa and the African continent. This is the year we will again witness history in the making. This is the year that will prompt the next generation to one day sit back, ponder and say, but we did our part.
A key reason for this is that we will, this year, witness for the first time an African country playing host to 32 countries competing for football's most coveted trophy, the FIFA World Cup and the eyes of the world will indeed be upon us in South Africa. We are doing our part as this department in ensuring that this world cup is a success particularly with regards to public transport matters, road infrastructure development, safety initiatives on our roads to mention but a few.
This year is also momentous in that it marks the 20th anniversary of former President Nelson Mandela's release from prison. It was 20 years ago when this greatest statesmen and peace broker the world has ever known, was released from jail. Tat'u Madiba, we remain anchored in your principles of peacemaking as we together with the leadership of the taxi industry facilitate conflict resolution and peace keeping within the industry.
Honourable members, in his State of the Nation Address his Excellency the President of the Republic of South Africa, Mr Jacob Zuma said and I quote:
"When this administration came into office last year, we undertook to work harder to build a strong developmental state. We said it would be a state that responds to the needs and aspirations of the people and which performs better and faster. This year, 2010, shall be a year of action. The defining feature of this administration will be that it knows where people live, understands their needs and responds faster. Government must work faster, harder and smarter".
Mr President, we commit this department that it will indeed work faster, harder and smarter. We will do this Madam Speaker and honourable members because our people voted us into power to do precisely that; work for them and in their name, collectively with them. We shall neither fail nor falter. History and time are not on our side. We will do it because our people deserve it, a smart, hard working government.
In echoing the president's call, Honourable Premier and an esteemed member of this house, Dr Zweli Mkhize, in his State of the Province address exhorted all of us to operate to the highest standards of good governance and social responsibility. Our honourable premier further said and I quote: "There was an urgent need to refrain from wasteful expenditure and to adhere to prudent financial management practices".
Madam Speaker and honourable members, the department that I have the responsibility and honour to lead will adhere to this call for prudence Khabazela.
Budget premise
Pre 1994, in general, transport planning was guided by the Urban Transport Act, which focused on the mobility of private vehicles within urban areas. It did not take into account the integrated land use which is now a feature of transport planning in the post 1994 era. To that end, we are today seeing the real purpose of transport planning as the provision of access to work, social facilities such as education, hospitals, including goods and services.
Furthermore, transport planning now boasts of proven techniques to improve access while simultaneously reducing environmental and social impacts, including managing traffic congestion. This has positive spinoffs for more vibrant, liveable, sustainable cities and communities.
It is this understanding honourable members that premises the budget we have an honour to present today.
During our planning and prioritising of projects in the department, we have ensured that we align to the 12 provincial strategic priorities that support rural, economic, social and human development of our people. In the main, the budget seeks to widen the scope of transportation planning to take into account non-traditional matters such as the creation of pedestrian paths along the roads. The budget also seeks to strike a balance between the building of new infrastructure and maintenance of the existing infrastructure within the limited budget allocation.
We will further strike a fine balance between the urban and the rural divide. This is in line with the overall government priority of rural development.
This budget Madam Speaker and honourable members, was crafted in the midst of budgetary cuts and recessionary pressure on the national coffers. Notwithstanding the above, the department of Transport cannot shy away from discharging its responsibility.
Allow me Madam Speaker to now move to the detail account of this budget presentation per programme.
The budget allocation for the 2010/11 financial year vote 12 is R5,6 billion (R5,631,057,000). This consists of a provincial allocation in the form of an equitable share of R3,7 billion (R3,788,610,000) and national conditional grants of R1,8 billion (R1,842,447,000).
Although the budget has increased slightly, in reality it is a budget cut as a result of the 7,5 percent goods and services budget reduction and the first charge of R185,666 million for the 2008/09 over expenditure which arose from the significant increasing costs in construction and maintenance brought about by the unprecedented price escalations in the fuel, steel and cement prices.
Chairperson, these budget cuts will have a serious knock-on effect on many projects that were anticipated for completion and will now be delayed for completion in 2010/11 financial year. This will also impact on the overall medium term expenditure framework (MTEF) targets that were previously set and will result in projects being delayed and or cancelled unless additional funding is sought from Treasury.
Rural development and infrastructure development
Road infrastructure development has a total allocation of R3,72 billion. In essence this means that the bulk of the budget is dedicated to infrastructure development. Infrastructure provides the platform for economic growth while promoting community development and eco-tourism.
Of this infrastructure budget R1,9 billion is for construction and R1,6 billion is for maintenance. The investment in construction consists of new gravel and blacktop roads, upgrading of gravel roads to blacktop and the rehabilitation of blacktop roads. Maintenance consists of routine maintenance, re-gravelling, blacktop patching, blading, safety and special maintenance.
However, the success of this holistic approach to road construction is dependent on the creation of successful partnerships with other departments, municipalities and communities. The department, through its consultative process of engagement with the communities in the rural roads transport forums ensures that there is adequate consultation in the planning and prioritising of its projects and programmes, while ensuring that it delivers on its mandate of ensuring a safe and efficient transportation system.
The department will continue with its corridor projects such as African Renaissance Road Upgrading Programme (ARRUP) to improve access to rural areas and support tourism while creating jobs and decent work opportunities through the utilisation of Vukuzakhe contractors and the Expanded Public Works Programme (EPWP).
The ARRUP consists of 15 roads totalling in excess of 500 kilometres (km) at an investment in excess of R3,7 billion. To date the department has completed 255 kilometres at a cost of R2,2 billion while creating more than 3,6 million person days of work. The department is proud to announce the completion of the following three projects; P399 in Vulindlela, P296/38 in Osizweni and P235 Hlabisa to Nongoma.
Madam Speaker, the department will continue with Operation KushunQuthuli which is dedicated to the upliftment of rural communities through the provision of access to schools, clinics, social amenities, including areas with agricultural potential. The department will remain focussed on the creation of access through the Roads for Rural Development and Pedestrian Bridges programmes.
Whilst the department has built 6 000 kilometres of rural access roads, it still has a backlog of 11 800 kilometres to achieve its minimum equity. 38 out of 474 pedestrian bridges, were completed at a cost of R130 million.
The department will continue to upgrade the roads of national importance such as the P496 John Ross highway, P318 Sani Pass and the access roads to King Shaka International Airport (KSIA), however their completion dates will extend beyond the 2011/12 financial years. The current upgrades to R102 to provide southern access to the KSIA will be completed in time for the 2010 FIFA Soccer World Cup.
A serious challenge facing the department is the ongoing floods which can never be anticipated. Although the department received an allocation R617 million towards the repairs, an amount of R350 million is still required to restore access to some communities on the south coast. The recent flooding in November 2009 and January 2010 has resulted in a further R245 million being required for repairs.
Gravel shortage is another problematic area, which results in increasing haulage costs and therefore higher re-gravelling costs. This is further constrained by the issue of access to quarries and the cost associated to mining rights such as payment of royalties. The department is reliant on
Amakhosi and the Ingonyama Trust to assist in providing access to these identified quarries.
The Municipality Property Rates Act provides for rates to be payable to municipalities for infrastructure in their locality including roads. This poses a serious threat to the finances of the department, particularly because some municipalities are now billing the department for every road in their locality despite the fact that roads provide a public and an economic service to the municipality.
We have engaged with provincial Treasury on this matter. We further call upon our MEC for Corporate Governance and Traditional Affairs to partner with us in dealing with this matter, which should include effecting amendments on the legislation or any other relevant interventions.
In light of these constraints the department commits to the following construction outputs in the 2010/11 financial year:
* upgrade 65 kilometres of gravel roads to blacktop
* construct 350 kilometres of new gravel roads
* construct 10 pedestrian bridges
Due to budget constraints and the increase in volumes of traffic, the rehabilitation and periodic maintenance programme is falling behind. The road network is deteriorating at a rapid pace and additional funding will be required to ensure that our road network is conserved in an acceptable manner to prevent any fatalities.
More than 70 percent of our road network is also beyond its design life and if not attended to immediately, will end up in a total state of disrepair. This is will cost the government eighteen times more in the long run to construct these roads if not attended to urgently.
This state of our roads combined with high traffic volumes, overloading of heavy vehicles, poor drainage and high levels of rain experienced contribute to the high occurrence of potholes in our province.
The department only receives R1,6 million of the required annual funding of R3,2 million for maintenance which equates to 50 percent and this shortfall increases the backlog at a rapid rate. It would require at least an additional R2 billion over a three year period and an additional R2 billion to bring the road network back to the required minimum level of service.
Currently the split between construction and maintenance is 55 to 45 and the strategy is to ensure that over the MTEF period the construction versus maintenance budget is balanced. The department will also not lose focus of new construction as the focus will always be rural access development.
The upgrading and construction of roads in the UMzimkhulu district to an acceptable standard with the rest of the province is still underway at an estimated cost of R1,2 billion. The feedback from the communities is that they are satisfied with the current progress made but are also concerned that at the current rate of funding, this will take approximately 15 years to achieve our target.
In light of these constraints, the department commits to the following maintenance outputs in the 2010/11 financial year while continuing using emerging contractors:
* re-gravel 850 kilometres of gravel roads
* undertake 100 000 kilometres of gravel road blading
* undertake 150 000 square meters of blacktop patching
Development in the public transport and freight
The state of the taxi industry Madame Speaker is closer to our hearts as government, particularly because it depicts Black Economic Empowerment at its best. It is on that score that the instability of this industry is always a cause for concern.
These issues were elevated to the level of the Justice Crime Prevention and Security Cluster (JCPS) so as to ensure a comprehensive and an integrated strategy of dealing with taxi violence. The JCPS appointed a special taxi task team comprising of the South African Police Service (SAPS), Department of Transport, National Intelligence Agency (NIA), Department of Justice and Constitutional Development, National Prosecuting Authority (NPA) and Community Safety and Liaison whose mandate is to deal with all forms of transport violence and to report to the executing authority on a regular basis.
However, today honourable members, it is with pride that I announce to this house that in the latter part of 2009, the taxi industry in the province held elections which were largely successful in which new leadership for associations, the regional executive committees and ultimately the provincial taxi council was elected.
Most of them are with us today, up there in the gallery. This is an indicator of stability in the industry as the elections were characterised mainly by peaceful albeit intense campaigning.
Furthermore, honourable members, the MEC and the provincial leadership of the taxi industry committed themselves in working together to ensure that the taxi industry is transformed from the present state which is beset with confusion and violence to a peaceful and organised industry where lawful operators can conduct their businesses profitably.
To that end, the MEC and the taxi industry have entered into a memorandum of understanding where the industry committed themselves to the following principles:
* Operate an integrated public transport services that is safe, reliable, affordable, efficient and cost effective for all
* To return the council to an era of good governance, accountability and responsibility
* To be the nucleus of all public passenger transport provisioning in the province, guided by the principles of unity, safety, cost effectiveness and open and transparent administrative processes.
Furthermore, the department is mindful of the major challenges it faces in ensuring that the safety of operators, drivers, commuters and the public in general is safeguarded, hence the MEC and the department commits itself to active promotion of an industry culture geared towards problem solving through dialogue.
To support the transformation and development of the taxi industry within the province, the department will fund programs and operations of the industry at a value of R6,5 million. Such funding will be controlled and managed by the department in line with the Public Finance Management Act (PFMA).
Integration in public transport
As a department we need to look at the optimal ways of mass transport of people especially for the marginalised communities. We are therefore working with municipalities in developing integrated rapid public transport networks, which include Bus Rapid Transit (BRT) and rail rapid transport systems while integrating transport systems to encourage seamless transport.
We are pleased to announce that the construction of the Ulundi integrated intermodal public transport facility will begin in May 2010 and that the design for the facility at Mondlo will soon begin. The commuter bus subsidy of R714 million, remains a challenge to the public transport system. As part of developing integrated public transport networks, the department will ensure that sustainable public transport is achieved that will ensure equitable representation of all modes and the inclusion of historically disadvantaged public transport operators.
The department will continue supporting non-motorised transport to ensure that the need of those who walk or cycle are met through designing roads that provide for pedestrian lanes and cycling paths. The department is still committed in the implementation of Shova Kalula project which entails the distribution of bicycles to schools. Matters of road safety and maintenance of such bicycles are looked into.
To date, the department has distributed 3 450 bicycles. This financial year we will distribute 2 050 bicycles to schools, which includes the contribution from the national Department. The department will also continue engaging with the Public Transport Passenger Association to ensure that the commuter voice is heard in our decision making and programmes.
The department has in consultation with all planning authorities developed a provincial public transport operation framework so as to ensure that the province is ready for the 2010 FIFA World Cup. Consultation on the framework was done with the bus and the taxi industry so as to ensure that a sustainable, seamless and a hassle free service during the world cup is realised.
This framework will support intra provincial public transport service between the non hosting cities and the hosting city of Durban including residents who will be travelling to the public viewing sites in and around the province.
Safety on our roads
Madam Speaker, the safety of all road users remains a cause for concern. It is our view that government has over the years embarked on a number of road safety initiatives, yet road accidents, crashes and fatalities continue. The department plans to take road safety initiatives a step further by opening a platform for a symposium.
Esteemed members of this house, communities; various stakeholders will get an opportunity of engaging with us on ideas, possible solutions and methods of curbing this road carnage. To illustrate the seriousness of the situation honourable members, road accidents cost the South African economy an estimated R581 billion between 1996 and 2006 according to a report by the national Department of Transport.
More than 13 000 people are killed on South African roads each year.
Speed, drunkenness, disregard for the rules of the road, the high number of vehicles that are not roadworthy are among the key contributing factors of accidents. Furthermore, during the year 2008/07 fatal crashes cost the province R2,406 billion and in 2008/09 fatal crashes cost the province R2,721 billion when compared with 2007/08, an increase of 13,1 percent was recorded.
During the last financial year, a total of 15 034 hours were spent on attending to accidents. This equates to 2 147 officer days which are lost to enforcement. It is thus essential for every single citizen of this country to realise that although it is the duty of government to provide road safety education, it is collaboration among government, driving schools, drivers and pedestrians that will ensure that fatalities on our roads are curbed.
All of us need to understand that the death rate on South African roads is unacceptable and that the trauma, pain and financial cost of crashes can be substantially reduced by commitment to behaviour and attitude change.
Law enforcement
Honourable members over and above road safety education law enforcement are critical tools of enforcing safety on our roads. To that end, we will intensify an integrated approach to law enforcement and disaster management ahead, during and beyond the 2010 FIFA Soccer World Cup. Our mission is to ensure the safety of all road users through law enforcement and traffic control in a coordinated manner with all role players.
Developments in technology continue to yield positive results for law enforcement. The department boasts of computerised learners licence test programme, mobile brake tester, automated number plates recognition systems, including the recently launched Alcohol Evidence Centre at Braid Street, Road Traffic inspectorate (RTI) and UMdloti. We thank South African Breweries (SAB) for partnering with us in providing the Alcohol Evidence Centres.
In an effort to improve efficiencies in our driving licence testing centres, the national Minister of Transport gazetted extended operating time to weekends. This will however necessitate the provision of resources both human and financial in order to realise this obligation and strain on infrastructure.
Honourable members our Road Traffic inspectorate officers continue to fly the KwaZulu-Natal flag high through their good work. We are proud of the achievements by our RTI during the past financial year. At the Conference Awards the province scooped five awards, including the traffic officer of the year award, the Road Traffic inspectorate was placed fifth in Africa with regards to the Mobile Learners Licence Bus at Kenya.
Traffic officers from KwaZulu-Natal represented the province at the National Women in Law Enforcement conference held at Midrand and a paper was presented by one of our traffic officers. We salute the good work of the officers.
Freight
Honourable members; the department is paying attention to the freight industry despite it being a national competence. At this stage, let me take this opportunity to congratulate and acknowledge the sugar cane growing industry and their hauliers who have partnered with the department with regard to the weighing of their freight vehicles.
They have ensured that their scales are calibrated to our standards hence their vehicles comply with the rules of the road in respect of overloading. I would like to urge other industries like coal, timber, etc. to emulate this example.
Job creation and poverty alleviation
In keeping with the government's response to unemployment, KwaZulu-
Natal continues to create job opportunities through the implementation of the Expanded Public Works Programme (EPWP). The EPWP emphasises the need to focus our investment on social infrastructure in a manner that addresses severe conditions of underdevelopment and entrenched poverty.
In order to meet this challenge and contribute to halving unemployment by 2014, the provincial government signed a protocol agreement with the national Department of Public Works committing to contributing our part in creating 4,5 million EPWP work opportunities in five years.
We are proud to announce that 30,2 percent (145 013) work opportunities, which include EPWP learnerships, Zibambele, that were announced by the President in his State of the Nation Address, were contributed by KwaZulu-Natal. The majority of these work opportunities come from the infrastructure sector.
Again KwaZulu-Natal’s flag was flown high at the Kamoso awards run by the national Department of Public Works. KwaZulu-Natal has been the winner for the highest EPWP outputs in the country for the past two years.
Zibambele
The department has been instrumental in creating a number of jobs within the tight economic environment focusing especially on youth and women.
The Zibambele programme is still the key initiative to eradicate poverty. To date we have reached our target of 40 000 with an investment of R1 billion.
The department will employ a further 500 contractors during 2010/11 financial year bringing our total number of contractors to 40 500. These contractors now have a collective saving of R12,015 million in their savings clubs. In an effort to promote economic sustainability among our contractors, we support them as they establish cooperatives and to date, 13 cooperatives have been established.
We have forged partnerships with the departments of Agriculture, Environmental Affairs and Rural Development as well as Economic Development to provide such support to our contractors. The department's total financial commitment to the Zibambele programme is R4,6 million.
Vuk’uzakhe
As a Broad-Based Black Economic Empowerment (BBBEE) programme, the
Vuk’uzakhe Emerging Contractor programme has been specifically designed to provide access to opportunities as well as empower and transfer skills to historically disadvantaged communities, thereby ensuring that more blacks actively participate in the economy of the country by owning, managing and controlling sustainable road construction entities.
The current statistics reflect that there are 3 155 Vuk’uzakhe contractors registered on the Construction Industry Development Board (CIDB) equating to 42 percent of the total number of contractors within KwaZulu-Natal. These include women, youth and people living with disabilities who constitute 24 percent and two percent respectively. These are contractors within the programme's senior grade two to six. In line with the CIDB requirements, Vuk’uzakhe contractors are awarded projects to the following maximum contract values:
Grade one: R200 000
Grade two: R500 000
Grade three: R1,5 million
Grade four: R3 million
Grade five: R5 million
Grade six: R10 million.
This programme has and will continue the fight against poverty and unemployment, thus positively contributing towards promoting rural development. The main focus for the 2010/11 financial year will be to prepare contractors for the future possible full implementation of the BBBEE and the aligning of the Preferential Procurement Policy Framework Act (PPPFA).
Contractors will be supported to ensure that when they are eventually required to be verified, they obtain maximum scores in this regard. The department will further assist contractors by facilitating public private partnerships whereby contractors could source work outside of the department. It is our ultimate aim that the quality of support given to contractors enables them to become less dependent on the department and sustainable in the long term.
Skills and people development
Honourable members, key to continual success are the advancement of the knowledge and skills of our work force. This department acknowledges that there is still a skewed relationship in terms of growth and skills. To this end, we intend to maximise and monitor skills development and the retention strategy for officials to better position our government to deliver on its mandate.
We have developed a retention policy, particularly for technical skills. This will include the roll out of the Occupation Specific Dispensation (OSD) for Engineers and technicians. We will continue with our bursary scheme for engineering students which has seen 21 students completing their tertiary qualifications in the engineering field since 2007.
Apart from adding value to the Department of Transport with their skills whilst fulfilling their contractual obligations, they will add to the pool of engineers in the country. 196 students are pursuing studies in the engineering and technical fields at a cost of R10 million to the department in the current financial year.
Through the Adult Basic Education and Training (ABET) programme, we continue to give our employees the opportunity to receive basic education, not only to comply with legislation but most importantly to help build a strong economic base in the province. We hold the view that education and literacy are very important to us in ensuring that we have staff that can read and write.
The KwaZulu-Natal Department of Transport is proud of the fact that it has taken innovative steps towards addressing the serious problem of lifestyle within the province of KwaZulu-Natal. The department is currently active in implementing an Extensive Employee Wellness programme for all its employees.
The department seeks to ensure that its workforce profile mirrors the economically active population of the KwaZulu-Natal province. In terms of the Cabinet decision, the department is required to have 50 percent women employed at senior management services level by 31 March 2010. The department is on cause in reaching this target since our work profile indicate that women occupy 47 percent of posts at senior management services level.
Labour matters
Honourable members, it is no secret that the department is experiencing labour disputes. I would like to assure this esteemed house that processes are in place to deal with these matters to finality, leaving no stone unturned. We would like to emerge as a cohesive, stable organisation that will focus on service delivery all in the interest of the people of KwaZulu-Natal.
Conclusion
As I conclude Madam Speaker, allow me to thank the party I belong to, the African National Congress (ANC) for having provided me with political guidance and positions of responsibility over the last five decades. To the Honourable Premier, my brother and my Comrade Dr Zweli Mkhize, thank you for the confidence you have shown in appointing me to provide leadership to this crucial and important portfolio of transport.
My predecessors, for laying the foundation in the department, the Portfolio Committee on Transport, our stakeholders, the management and staff in the department and ministry I thank you. Last but not least a big thank you to my family for your support.
Allow me to formally table vote 12: Department of Transport to the amount of R5,631,057,000 which will be appropriated as follows:
Administration: R428,155,000
Road infrastructure: R3,700,348,000
Public and freight transport: R814,202,000
Traffic Management: R581,725,000
Community based programme: R106,627,000
Honourable members, in 2010 we commemorate the 50th anniversary since iNkosi Albert Luthuli became the first African to receive the Nobel
Peace Award. I feel it must be fitting to conclude this speech in the words of this great hero of our struggle.
"We could not achieve the new South Africa overnight, but we could begin to build it. The struggle must go on, the struggle to make the opportunity for the building to begin. The struggle will go on".
I thank you.
Source: Department of Transport, KwaZulu-Natal Provincial Government
