'Towards an Inclusive South African Society: The Role of Youth in lnfrastructural Development and Economic Growth of South Africa'
Honourable Chairperson
Members of Cabinet
Honourable Deputy Minister of Public Works
Honourable Members of the Provincial Executive Councils
Honourable Members of the Legislatures
Honourable Chairperson and members of the Select Committee on Public Works
Members of the South African Local Government Association
Acting Director General and senior officials of the Department
Heads of Departments, Municipal Managers and Heads of State Owned Entities
Members of the Business Community
Distinguished guests
Comrades and friends
This month marks the 35th anniversary of the Soweto Uprising when the youth of our country took a stand against a repressive machinery of apartheid government that saw a generation of African people subjected to a system that denied them a privileged right to inclusive education that would equip Africans for inclusion in a growing South African economy. The year 1976 formed the watershed year for what was to become a hard and long walk to freedom. Like any milestone, it did not mean the end of the road rather it signified the end of one stretch and the beginning of another.
Thirty five years later, we are faced with a different struggle: to ensure our young people are adequately equipped in mathematics, science and technology as fundamental pillars of an inclusive education that will prepare them to contribute positively towards our economy through participation in the Built Environment.
Chairperson,
For this reason, allow me to dedicate my maiden budget vote speech to the National Council of Provinces to all the youth of South Africa. Three days after the nation laid to rest our mother and struggle icon, Mama Albertina Sisulu, I also dedicate this budget vote speech to the memory of Ma Sisulu who emerged as a mother to many young people during the painful liberation struggle. Her firm and quiet leadership produced some outstanding and committed cadres and leaders of the liberation movement, who now serve the nation in important portfolios and capacities. MaSisulu always emphasized that freedom would come in her life time. Indeed freedom came in her life time and she served the democracy she fought for.
As Black and White people gathered in Orlando last week at the Stadium to bid farewell to Mama Sisulu, I could not help but think of her words about multiracial gatherings at a meeting of the UDF where she stated "/am very happy to be one of those in the UDF because in the 17 years I've been banned it has been my wish that one day Iwould get to such a gathering, a multi-racial gathering that gives me hope that this South Africa one clay, will be a just South Africa for everybody."
Today we say once again with gratitude in our hearts for the future you built for us, /ala l
Honourable Chairperson,
When the Freedom Charter was adopted in 1955, it spoke clearly of the right of our people to work and security, regardless of race, sex or creed. Fifty six years later, in 2011 in his State of the Nation Address, His Excellency President Jacob Zuma reminded the nation that "we are concerned that unemployment and poverty persist despite economic growth experienced in the past 10 years. To address these concerns, we have cleclarecl 2011 a year of job creation ...while looking to the private sector in particular to help us create most of the jobs; government will certainly play its part."
The budget vote of the National Department of Public Works in the fiscal year 2011/12 is about employment creation through inclusivity at national, provincial and local levels of government.
It is therefore with this compelling undertaking in mind to create decent employment opportunities particularly among the youth, that I present this budget to you here today. For us, infrastructure development and job creation lie at the centre of the mandate and the strategic plan of the National Department of Public Works. In response to the national priorities of government and the policy directives of the New Growth Path and IPAP II, the Department of Public Works took a strategic decision to translate its mandate into labour-intensive programmes that include the substantial public investment in infrastructure both to create employment directly in construction, operation and maintenance.
Honourable Chairperson,
Our budget reflects the policy focus of Government through the detailing of financing and expenditure programmes, and it mirrors the choices between accelerated service delivery, the promotion of economic growth, job creation, infrastructural development and the Stale's asset management.
In the fiscal year 2011/12 the Department has an allocation of R 7,8 billion. Of this allocation, almost R1,4 billion has been allocated for the improvement of state buildings and infrastructure, with up to 60% of it allocated to current commitments, while the remaining 40% is allocated to prioritized new projects which are at the core of service delivery and are earmarked to be executed mainly by the youth. We encourage honorable members to join us as we walk this path with the youth of our country.
Historically the Department of Public Works has been procuring public immoveable assets to promote growth, development and create a better life for the people. Consequently government has accumulated a huge portfolio of immovable assets and these properties are vital in the reconstruction and development efforts of government, necessitating the state to find a legal mechanism to ensure their optimum and cost-effective use.
Honourable members,
The strategic planning and implementation of the Department of Public Works' plans are framed within the vital context of the statutory framework provided for in the Government Immovable Asset Management Act (GIAMA) of 2007. The objective of GIAMA is to ensure efficient and effective management of immovable asset management within government, as well as to improve service delivery. GIAMA places substantive obligation on national and provincial spheres of government to lead the cost-effective management of state's immoveable assets. The implementation of GIAMA is a challenge we need to rise up to collectively as national, provincial and local government.
It is no coincidence, therefore that one of our strategic priorities is to provide strategic leadership in effective and efficient immovable asset management, while continuing to invest in infrastructure development through the delivery of essential public facilities and other amenities calculated to improve the quality of life of all South Africans, today and in the future.
As the custodian of state immovable assets, the department has committed to use the state immovable asset footprint towards realising government's key national priorities and the prescripts of the New Growth Path and IPAP 2.
GIAMA (2007) makes it imperative that we facilitate the provision of accommodation and monitor the performance of the State's immovable assets maximising its value through ongoing monitoring of portfolio performance.
The department also remains committed to providing lifecycle immovable asset management planning based on credible portfolio and property analyses.
Chairperson,
In this regard allow me to add emphasis to an increasing need to build sufficient capacity for the continuous management and enhancement of the immovable asset register.
To this end, we will soon launch the Amnesty Campaign aptly named "Operation Bring Back" in order to encourage South Africans to reclaim lost and/or missing immovable assets. A number of job opportunities have been identified for the youth to identify such recovered assets, verify them and have them properly recorded in the Asset Registers of National and Provincial Departments.
At the meeting of the Minister and the Provincial MECs in April 2011, we unanimously agreed to work together to retrieve these assets. These properties we believe were insincerely wrested from the state in the turbulent transitional period following the demise of apartheid and were being unlawfully occupied, especially in the former TBVC bantustans.
We like to extend the invitation to the Honourable Members to cooperate with, and assist us. Upon recovery, these properties will either enhance our disposal programme or contribute positively to our Inner City Regeneration programme in revitalising the economy and appreciating the value of state owned properties.
Most state owned properties had over the years degenerated, forcing government to increasingly rely on private leases for its accommodation, at an exorbitant cost. A conscious strategy has been adopted to reinvigorate our investment in continuous repair and maintenance, as well as construction of new government buildings in order to generate major savings for the state, a process we will be embarking on in the three years.
Chairperson,
Economic opportunities inherent in such a strategy will be directed at empowering youth and women enterprises among others, particularly targeting incubation programmes in the construction sector already driven by the department. In the final analysis, our aim is to relocate national departments to state owned buildings where it is feasible to do so.
Chairperson,
We also acknowledge that our lease portfolio remains a challenge at all tiers of government. The department will continue as a matter of policy to find ways to structure its current leases such that the socio-economic goals of government are realised including black, women and youth economic empowerment. With regard to our own stock, we shall invoke the National Infrastructure Maintenance Strategy and the National Contractor Development Programme to target investment in this sector much to the benefit of our small and emerging contractors. Many more youth initiatives can be encouraged to benefit from opportunities such as facilities management. We shall intensify our engagement with the National Youth Development Agency to develop tangible programmes to benefit our youth.
Linked to leasing management is the rehabilitation of underutilized and unutilised public buildings for alternative usage or utilisation. With many of our tertiary students around the country being exposed to accommodation that is not conducive albeit at high cost, the department in collaboration with the Department of Higher Education decided to convert unutilised and underutilised buildings to provide affordable student accommodation where it is possible.
In Gauteng, the upgrading and refurbishment of the HG De Witt building in Tshwane central will yield accommodation for approximately 180 students. In the Free State, Bloemfontein the upgrading and refurbishment of the Pelonomi Hospital will yield accommodation for approximately 700 students. Through this intervention, the department is looking to alleviate the problem of lack of decent student accommodation whilst creating job opportunities. This is part of our strategy to break the vicious circle of intergenerational poverty, which many of our youth are forced to inherit.
Honourable members,
We shall continue to identify similar properties for various other social uses in the different provinces in support of government's commitment to humane human settlements for all. Properties will be identified to assist needy communities, particularly orphans, disabled people, child-headed households and frail care centres as part of the sixty seven (67) minutes of doing community work, in honour of our struggle icon, former President Nelson Mandela.
We are currently drafting a Disposal Policy that embraces the social needs of a developmental state. This also requires the review of the State Disposal Act of
1961, and its alignment to the current constitutional imperatives. In addition to this is the Plan driven by an Inter-Ministerial Cabinet Committee chaired by the Department of Rural Development. The vesting of the state immovable assets in the correct sphere of government is critical not only for proper identification, ownership and geographical location of the assets but for responding to the social objectives of the country.
Proper vesting of state property will therefore ensure that these assets are used optimally for service delivery, can be accounted for, in accordance with the prescripts of the Public Finance Management Act, No 1 of 1999 (PFMA) and the Government Immovable Asset Management Act (GIAMA), No 19 of 2007. And again the provinces must be commended for their role in helping to expedite the vesting process.
Chairperson,
We have admitted that our maintenance record leaves much room for improvement. We are aware that as we make progress with our maintenance record, we continue to experience challenges brought by the ageing stock we own, most of which is of heritage value and compounds the costs associated with maintenance. This has forced us to reconsider other options which will be rolled out in this fiscal year.
Energy Efficiency in state buildings is central to the building programme for this fiscal year. As a strategic programme it will respond to the energy shortage facing the country. It is already being implemented through shared contracts and an Energy Code of Conduct for users of public buildings.
Chairperson,
We are mindful of the fact that we will always be judged by the standards with which we treat our valued clients. In-depth consideration for the accommodation needs of our clients remains a top priority for the department. Key account management in this financial year will find effect through well managed immovable assets in line with property portfolio strategies and effective client user management plans that addresses user requirements and prioritised planned maintenance. Our regional offices in all nine provinces will be instrumental in us achieving this objective.
Our clients needs have encouraged the department to pro-actively engage with our clients as successfully demonstrated by our recent visits and continuing work at the military bases of the Department of Defence and Military Veterans. In Lephalale (Limpopo Province) we are in the process of refurbishing houses for the South African Military Health Services (SAMHS) and a health facility at De Brug. The department is paying attention to the deteriorating state of the infrastructure in the Harbours, beginning in Cape Town.
Facilities on behalf of the Department of Justice were recently completed and handed over at places like Galeshewe (Kimberely), Colesburg, Pietermaritzburg and Butterworth, among others. The Department of Public Works needs to ensure that the client Departments function in proper and decent facilities in discharging their constitutional mandate.
The accommodation needs of the South African Police Service in the year under review will be extensive, given the need to fast-track the goal towards a safe and secure South African society. The communities of Botokwa, Jane Furse, Chatsworth and Tsakane became witnesses to their development when these facilities were officially handed over and opened, joining a long list of similar facilities either built or renovated by Public Works. Many community liaison officers employed at these projects sites are drawn from the ranks of the youth to mobilize the communities and make certain that the community is part to their own development.
Chairperson, Honourable members,
Together with the provinces, municipalities and our public entities, we have grown to look beyond the narrow confines of our mandates in our desire to expedite services to our people. Supported by our public entities we have sought to streamline new technologies aimed at delivering basic but essential social infrastructure and other services. We are overseeing the implementation of an intensive programme for construction of safe schools.
The school building programme in the Eastern Cape has seen the rapid delivery of not less than ten schools in the last six months in an effort to eradicate the lingering problem of mud schools and others built from inappropriate materials.
The Willowvale Senior Secondary School stands as a beacon of hope for similar structures in the country after we have transformed the institution from a mud structure to a state-of-the art 18-classroom school fully furnished with 26 toilets, resource centre, administration office, sporting facilities, and kitchen to feed pupils. Still in the Eastern Cape, the construction work is nearing an end at the other two schools, namely Hlwahlwazi and Mgwili in the Lusikisiki area and again working together with the traditional leaders, we shall be handing these over very soon. Also construction work has started for the two schools at Taung in the North West province. The demand from other provinces is rising, and the Department of Public Works pledges to meet the demand in order for our children to ascertain their birthright of proper access to education.
Chairperson,
The budget I table today is about burying old and painful memories, even the memories of the many children who have lost their lives crossing flooded rivers trying to get to school. Our continued partnership with the Department of Defence meant that more bridges were built in the 2010/11 financial year, the most recent being the one we opened at the Nquqhu village of Cofimvaba. Away from the Eastern Cape, the department has completed and handed over bridges notably at Hammanskraal in Gauteng following the worst devastation caused by recent floods there.
Umakhulu Nosizwe Mxhaka (72years) broke down and cried when a bridge was unveiled at Nquqhu village. She lost her 9 year old grandchild earlier this year who drowned while crossing the river on his way to school. Makhulu Mxhaka gratefully attested that "we are blessed with a bridge today. I wish my grandchild was still alive to cross the bridge. I thank Nelson Mandala for shaping this government to work for its people".
Honourable members,
In partnership with provincial governments and municipalities, Public Works has also launched a pothole rehabilitation programme in response to the loud cries by our public road users about the poor state of our roads. The Programme is aimed at reducing unemployment particularly among the youth and the women. The department has committed to creating 400 job opportunities per metropolitan district through this Pothole Rehabilitation Programme.
Whereas the intention was to primarily target the metropolitan municipalities and then extending to other districts and rural municipalities, provinces such as North West have embraced the initiative and cannot wait to commence with the rehabilitation work. According to the MEC in the province, the injection of additional 400 Orange Brigades (EPWP Workers) will bring his tally to a thousand (1000) for Mahikeng only and this will help paint the town orange, enhancing the public visibility of the EPWP Programme. Let me acknowledge the warm reception and cooperation by the government of North West.
Our engagement will go further to assist in other township rejuvenation plans. More employment opportunities for the youth will be expected when work begins which include fixing of street lights to fight crime as well as cleaning cemeteries, building internal streets using paving, and cleaning and greening of open spaces for the benefit of our communities. All these will be undertaken through labour intensive methods to maximise job creation. We can announce that this project has long commenced in Tshwane, Gauteng. During my briefing with the Premier of the Free State recently, Mr Ace Magashule, he invited us (and we accepted the invitation), to partner in town development programmes in his province. His Operation Hlasela Bofuma (Attack Poverty) is in full swing and my department will work closely with the province to achieve the desired results. We are working with all the Premiers in various projects of the department.
Honourable Chairperson,
Underpinning our building programme is the provision of accessibility of public buildings to disabled people in order to promote the letter and spirit of the Constitution. The programme is receiving priority attention from the department. We launched our Disability Policy in December 2010. Our policy goes beyond national employment targets for the disabled. Instead, central to the policy is the preparedness of the department to involve the disabled people in the core businesses of the department, for real economic empowerment.
Honourable members,
Our contribution towards Africa's reconstruction remains on course. In this regard, in the current financial year we will begin with the construction of the Matola Museum and the interpretation centre in Mozambique. Acting in collaboration with the Department of International Relations and Cooperation, we will be proceeding with the construction of the South African Embassy offices in Kigali, Rwanda.
Ahead of the country hosting the 2010 FIFA World Cup soccer tournament, the department successfully implemented massive infrastructure development projects at key border posts including Lebombo (Mpumalanga), Golela (KwaZulu Natal), Vioolsdrift (Northern Cape) and Skilpadhek (North West). With the work complete at other ports of entry, the department has introduced a facilities management initiative where unemployed local youth will be assisted to form cooperatives which will undertake cleaning and horticultural services on an ongoing basis at these Border Posts. The youth cooperative initiative is already underway in Lebombo border post. Not only will the intervention contribute to job creation, but will also encourage entrepreneurship and promote youth economic empowerment, an apt concept in this month of Youth.
Chairperson,
The New Growth Path expects the "public investment to create 250 000 jobs a year in energy, transport, water and communications infrastructure as well as in housing, through to 2015". According to the New Growth Path "the provision of infrastructure also serves to enhance efficiency across the economy, laying the basis for stepped-up growth and employment creation in every industry whilst simultaneously advancing social equity goals and addressing inequalities in the society".
The Phase 2 of the Expanded Public Works Programme has just completed its second year. I am proud to announce that the programme actually over performed against its stated job creation targets. But looking beyond the numbers in terms of job creation, the programme continues to bring discernible service delivery improvements in our communities. The commitment is to upscale the programme in participating sectors and creating new job opportunities through innovation and ingenuity.
The partnership with Non State entities continues to bear fruit, as Non Profit rganisations are participating actively in the programme.
The EPWP is also assisting municipalities to deal with waste management backlogs. The Food for Waste programme is an innovative programme where communities collect own waste and receive compensation in the form of food parcels. Currently, 10 municipalities are participating. Another 19 municipalities will be brought on board in this financial year to accelerate our performance in this programme.
Chairperson,
As a lead department in the implementation of this programme, Public Works will continue to use this programme in the war against poverty and unemployment, mindful of the limited resources at our disposal. The EPWP has been allocated R679 million for incentive grants to Municipalities and R267 million for provinces. Consequently, I have ordered the department to review the disbursements of the so-called performance based incentive grants to both provincial and local governments, so that we can satisfy ourselves that such measures are cost effective and not open to abuse.
Local government in particular requires a massive injection of relevant resources to fast track the delivery of services. As a result, the department has decided to redeploy certain of our skilled human resources from the EPWP to local government to assist with capacity in the implementation, evaluation and monitoring of the EPWP programmes and their principles at that level of governance.
Chairperson,
Since 2006, in aid of competitive service delivery, our rates and services budgets have been devolved to the next sphere of government to enable faster transfer of payments to the municipalities. In this current year an amount of R1,8 billion has been allocated for the property rates grants. This amount has decreased by 3% from the 2010/11 allocation. Performance on this grant has improved notably in the past financial year, 2010/11 showing improved spending by provinces of 92% as compared to a mere seventy nine percent (79%) in the year before that.
Chairperson,
We are also very much aware and concerned about the huge outstanding debt reported by local government emanating from municipal services and property rates with respect to our state buildings. In our quest to clear the debt, we have put together a task team championed by the Directors-General of CoGTA, Public Works and the Presidency to find practical solutions to clearing all the outstanding debts.
The task team will develop mechanisms to ensure that this is accelerated in the current financial year. I will be working closely with all the stakeholders to ensure debt is cleared and revenue generation at local level is increased.
Chairperson,
With regard to the promotion of the Expanded Public Works Programme (EPWP) and National Youth Service (NYS) programmes, it is envisaged that the department will be in a better position to create job opportunities through direct employment compared to the private sector contractors. Another important advantage of this initiative is the element of sustainable employment through a systematic roll-out of projects using the construction management method and the deployment of labour from project to project on a continuous basis.
In partnership with the Northern Cape Department of Education about hundred (100) young men and women were placed in the artisan training programme at the Pelindaba Technical Training Centre outside Tshwane where they will be undergoing training in various trades including welding, mechanical, electrical, fitting and turning and draughting. After eighteen (18) months of joint theoretical and practical training government has undertaken to absorb them all in employment.
This is in line with our decision to not only re-open our erstwhile technical workshops but to increase their capacity so that they become the centres of further skills generation, while at the same time helping us to reduce the costs associated with unnecessary outsourcing of menial jobs, many of which can be performed in-house. It is for this reason that I have issued a national call to all professionals in the built environment and property management sectors to forward their curriculum vitae to the department. The results were overwhelming.
This process we believe will enable the department to run its workshops efficiently and contribute immensely to government's National Human Resource Strategy, especially the artisans' programme. It will also enhance inclusive growth. More than nine thousands (9000) CVs were received nationally and the numbers are significant to sustain our intake of technical prowess in the department in support of our mandate, not least realising the job creation targets of government. In addition, I have requested the department to focus on expediting the filling of all funded posts.
Chairperson,
We require a fully capacitated Department to regulate and transform the construction and property sectors. The contribution of these sectors to economic growth and job creation, albeit within a transformative framework, is key. The implementation of the Property Incubator Programme (PIP) and Contractor Incubator Programme (CIP) are receiving priority attention. Property ownership needs to be shared and the construction industry has to create an environment where emerging contractors graduate into sustainable businesses.
The PIP will focus on, inter alia, property ownership, property development, facilities management, property valuation, and property research and estate agents/property brokers. The Expropriation Bill; the Agrement SA Bill and the Council for Built Environment Bill are also a priority of the department.
We will be undertaking an independent assessment of all our Supply Chain Management processes and structure. This will include, the review and restructuring of the bid adjudication committees, the review and evaluation of delegations, aggressively creating capacity in the legal services unit with property lawyers, reviewing of the supply chain management process, redeployment of officials with the aim of matching the skills with the job content and centralisation of all contracts in order to allow the department to have an improved administration thereof. This is the ideal that I vow to pursue as a lasting legacy in repositioning the department to be competitive and responsive.
Chairperson,
As I conclude, let me thank the House for indulging me in this budget speech.
Let me first thank the President of the Republic of South Africa for his continued sound leadership, support and advice.
I thank my colleagues in the Executive, for their support, invaluable advice and team work.
I would like to extend sincere gratitude to the Deputy Minister and all the MECs present today.
I also thank the Chairperson, Honourable P Sibande, and the Members of the Select Committee on Public Works for providing the much needed guidance, constructive criticism and oversight in assisting the Department in carrying out its mandate.
I would also like to thank the Acting Director-General, Mr Sam Vukela, his managers and all the staff in the department for their relentless support and cooperation. Service delivery and the directive of the President to create a responsive public service will be realised through you.
My heartfelt thanks go to the Public Entities for the sterling work they are doing in contributing towards realising government priorities.
I wish to thank colleagues from my constituency, my family for the unwavering support they continue to give me throughout my life and more so in my new responsibilities.
Working together we can do more.
I thank you.
