Honourable Acting Speaker of the Free State Legislature,
Honourable Premier,
Honourable Members of the Free State Legislature,
Leaders of different politicdal parties,
Mayors and Speakers of different Municipalities,
Chairpersons, Board Members and Chief Executive Officers of Public Entities,
Members of State Institutions supporting democracy,
Director-General and Heads of Department,
Members of the Traditional House
Mme Motswadi
Bomme le Bontate.
Acting Speaker re motlotlo kajeno haele mona re kene ka hare ho motse ona wa Mmamahabane hobane ka nnete motse ona, ona le nalane ya bohlokwa eo re lokelang ho etsa bonnete bahore setjhaba sa bo rona haholoholo sa hona mona Mmamahabane se ya e tseba. Ba bangata ba rona ha ba tsebe hore sebaka sena e bile mabala a moo Morena Moshoeshoe, Morena wa setjhaba sa Basotho a kileng a phela teng dilemong tse ngata tse fetileng. Morena Moshoeshoe le Piet Venter eo motse ona o theuweng hodima sebaka sa hae e ne ele metswalle e meholo. Ka thokonyana ho motse ona, ho na le sebaka se bitswang Skaanskraal moo le kajeno ho ntseng ho bonahala masaka le masupi moo Morena Moshoeshoe le bahlabani ba hae baneng ba phela teng.
Sebaka sena se na le museum wa sepolesa (police museum) moo ditaba tsa sebaka sena di hlaloswang teng. Jwale ka ha Sesotho se bolela, “mohale o tswa maroleng,” mona ke lehae la emong wa bahale ka hare ho Provinsi ena ya rona, moetapele wa setjhaba, setsibi sa setso, kgalala ya ditshwantshiso tsa radio le televishene, Ngaka e Mabatha, Mopheme, Metsi,Ntate Khotso Nkhatho eo eleng moeti wa rona wa bohlokwa kajeno.
Ka nnete leeto la rona la ho haola le naha ya Freistata e bile la bohlokwa ho rona re le Mmuso haholoholo ho rona re le lefapha le fuweng boikarabello ba ho shebana le ntshetsopele ya moruo, bohahlaodi le tlhokomelo ya tikoloho. Ka leeto lena re kgona ho ba le kutlwisiso e felletseng ya boemo ba bophelo ka hare ho metse ya rona mme re utlwe ka ho otloloha ho baahi hore na ebe puso e fihlella ditlhoko tsa bona kapa ba ka fana ka boeletsi bo feng hore maphelo a bona a ntshetswepele. Re thabela kamohelo e mofuthu ya baahi ba Mmamahabane moo re tlo teka ditekanyetso tsa lefapha bakeng sa selemo se tlang sa ditjhelete.
It is most appropriate at this point to thank my predecessor MEC Mamiki Qabathe, who laid the foundation of this policy statement we are presenting today. Our responsibility is now to roll up our sleeves, dirty our hands in executing the mandate given to this government by the electorate. This demonstrates the richness of the cadre deployment in the ruling party.
Operation Hlasela, through its power, has enabled us to interact with the people of the Free State, and we have realised that the needs of our people differ from region to region, stretching from Fezile Dabi in the north to Xhariep in the south. We are now at a point where we have products, services and programmes that will unleash the economic potential of our people. Our policy statement today will change the economic landscape in this province forever. The changing economic landscape we are advocating, is a new glorious wave that will sweep through the Free State and will usher independence, effectiveness, efficiency, productivity and growth of our people in a healthy and clean environment
Economic overview of the province
Economic profile
Acting Speaker, the preparation of our budget and plans for the coming fiscal year is influenced amongst others, by the slow economic growth worldwide as observed by economists, the report from the Reserve Bank on the economic growth in South Africa and our current economic performance.
Mr Mike Schüssler, the well-known economist and the compiler of the Free State Barometer, has expressed his concern about the effects of the current slow growth on the global economy. He says that this has been a year of slow economic growth – worldwide, countrywide and therefore the Free State is no exception.His viewpoint has been supported by the Reserve Bank, which lowered its outlook for South Africa's economic growth from 3.2% to 2.8% for 2012, raising it to 3.4 % in 2013 as the global economy started to show signs of recovery.
The provincial contribution to the national GDP increased to 5.53% in 2012 compared to 5.3% in 2011. The provincial GDP also recorded an increase of R20 billion in 2012 (from R153 billion in 2011 to R173 billion in 2012). It is furthermore indicated that the GDP growth rate increased from 2.5% in 2011 to 3.3% in 2012.
Encouragingly the contribution of Agriculture and Mining to the GDP has increased to 5.2 % and 17.6% compared to 4.4.% and 16.5 % in 2011 respectively. This represents an increase of 0.8% and 1.1% respectively.
As a confirmation of this growth, in its 2012 Fourth Quarter of Quarterly Employment Survey, Stats SA, announced that “formal and informal non-agriculture employment” in Free State has risen by an encouraging 1 000 and 7 000 jobs respectively compared to the third quarter in 2012.
Environmental outlook
The natural environment is vital to both social and economic development. People are dependent of the resources provided by the natural environment for their health and wellbeing. Human activity places great pressure on the environment through the use and depletion of resources, release of waste products to the environment and the degradation of land and habitats.
Our response to ease or prevent environmental impacts, correcting the environmental damage or conserving natural resources is driven by the following priorities:
- Environmental governance
- Compliance and enforcement
- Information management
- Planning framework and
- Skills development
Work in progress
Acting Speaker, we should remember that many of this department’s projects are multi-year by nature and therefore we would like to indicate some of the work currently in progress.
This work includes the following:
- Establishment of 4 buy-back centers. The Vaalpark Buy Back Centre is in the process of being fenced, containers have been obtained and are to be delivered soon. Training of the street pickers was done by PETCO & the recycling industries. The Official opening of the centersis planned for June 2013.
- Establishment of 5 waste recycling centers on landfill sites in the Free State. The reclaiming center on the Hennenman landfill site is being fenced in and one container is already on site.We are awaiting 2 more containers to be delivered. Protective clothing has already been obtained. The Mercy Life community project at the the Buy Back Center in Thabong is in the planning phase.
- Support to Free State Business. Businesses that are receiving constant attention include PCS Systems, who have developed software in collaboration with Innovation Hub of the Central University of Technology for the taxi industry. Another firm, Epixel, a youth company, has been identified to play a role in the resuscitation of the textile industry. KSAE Holdings, a Ficksburg based company is working with a group of professionals to participate in the medical and food market.
Together with municipalities, business chambers and development agencies we will monitor the progress made by these and other companies.
The year ahead
Our mandate is “to provide sound economic and environmental management systems that ensure economic development and poverty eradication in the Free State.”
Our priorities for the coming year can be summarised as follows:
- Creating a conducive environment to promote sustainable economic development and growth whilst championing transformation.
- Improving communication with our stakeholders particularly the business community. We find that ineffective communication is a huge problem affecting all activities of the department and these needs to be rectified as a matter of urgency. As a result, we are working on a strategy to establish open and effective communication channels at all levels of the department.
- Restructuring and repositioning the department in order to render better and faster assistance to SMMEs. We will assist entrepreneurs, at the survivalist and micro level, with their specific needs in order for them to become self-sustaining enterprises.
- Facilitating mutually beneficial relationships between macro and micro enterprises through targeted enterprise development programmes.
- Positioning the Free State as a preferred domestic tourism destination through effective Tourism Routes Strategy.
Acting Speaker, The Economic Development division has been allocated R118.548 million for this financial year. We are the first ones to admit that this allocation is far from being adequate.
Setsokotsane sa leqhubu la moya wa tshepo se se se fihlile. Bohloko ba tlala bona re a bo tseba. Tlohong ba heso, le tle ka pele sebaka se sa le teng. Tlohong re ahe moruo wa naha ya rona. Jwale ke nako ya kotulo.
A process to identify existing and active cooperatives categorized in different subsectors will be undertaken. Access to markets remains high in the list of challenges inhibiting growth in the cooperatives sector. Consequently the department has adopted a move to use government purchasing power by ring-fencing all products that can be supplied by cooperatives. Items include linen, uniforms, maintenance, protective clothing and laundry services .We invite all other departments to prioritize these cooperatives for procurement of goods and services.
We have recently hosted a Cooperatives Summit in Qwaqwa where we planted the seed for success in this regard.
We have, over a period of time, observed the struggle of the survivalist businesses in street corners, pavements, and small shelters throughout our towns. These are people who we believe have their hearts in the right place but normally have nowhere to go for assistance. This new approach tells us we also have a responsibility when it comes to Alternative Livelihood support to the indigent and unemployed, by so doing igniting the entrepreneurial spirit amongst them.
Innovation and creativity drive entrepreneurial success. To this end, we will establish the SMME Incubation Programme where all business ideas can be lodged and assessed. This incubation programme will start at school level with the non-fee paying schools competing by district against each other to produce the best business concept. The same programme will be launched at the fee paying schools. The third targeted category will be unemployed youth. This programme will be undertaken in partnership with the department of education.
Maluti-A-Phofung SEZ (Special Economic Zone)
This project involves the Tshiame Industrial Development which constitutes the Free State node of the proposed Durban-Free State-Gauteng logistics and industrial corridor (Strategic Infrastructure Project –SIP II). It is intended to strengthen the logistics and transport corridor between South Africa’s main industrial hub in Gauteng and the Port of Durban. This project is also part of the Free State Provincial government initiative to unlock economic opportunities and potential along the Free State part of the Durban-Free State-Gauteng logistics and Industrial corridor. On the other hand, the Harrismith Logistical Hub remains very much the integral part of this development. We are happy that the Free State Government has secured the support of the Department of Transport, Department of Trade and Industry, Department of Public Enterprises (Transnet and Sanral) and both Kwazulu Natal and Gauteng Provincial Governments for this important project.
We can now , with certainty, pronounce that the proposed De Beers Harrismith by-pass is now a closed matter.
Local Economic Development
Our view is that municipalities ought to play a significant role in economic development due to the fact that local municipal areas are the seat of development. Local Economic Development (LED) is very central to our efforts to change the face of our towns, particularly small towns. We therefore have identified Hlasela and Centenary towns as target areas where we will focus our economic development efforts.
Financial assistance for the realisation of development efforts has been sourced from IDC. Five (5) firms in the agro-industry sector, 1 in mining and 1 in tourism during 2012/13, to a value of R310 million, creating 272 jobs are on record as evidence of funding by IDC.
Further, working with the Matjhabeng Local Municipality and the Department of Mining Resources, we have identified the mitigation of mines as a viable proposition for job creation in this area.
SMME Development
Acting Speaker,we must assist SMMEs with product development, pricing strategies and access to markets.
It is out of this realization that the FDC will provide assistance to struggling businesses by developing and implementing business recovery strategies with and for them. We must, however, encourage those businesses that are prospering to honour their loan obligations.
We can report confidently that Phiritona Plastics, a sole black owned plastic pipe manufacturing firm in the province, has been assisted to successfully register its product and gain SABS certification. This success story has opened market access opportunities beyond our borders.
Consumer Protection
On the 14thof March this year, we celebrated the World Consumer Rights day in Phomolong Community Hall in Hennenman. These celebrations were also rolled out in the following towns: Kagisanong Community Hall in Mangaung and Constantia Community Hall in Maokeng. The main aim with consumer education is to enlighten communities about consumer rights as we realize that our people fall prey to unfair business practices.
We have been able to achieve this with the help of our Consumer Protection Office that has three sections. These are the Consumer Education, Consumer Investigations and the Consumer Affairs Court. The Consumer Protector heads all these government sections which provide a very important service to our people. What is important is that everybody who feels aggrieved can use this service as it is for free. Equally, all complainants can also approach the Consumer Protection Office at 98 Zastron Street in Bloemfontein or call 051 400 4852.
Tourism Development and Promotion
Acting Speaker, tourism plays a critical role in driving the economy of the world. Thus the National Development Plan identifies this important sector as a major role player. Consequently it is for this reason that we have allocated R46.199 million to tourism development and promotion.
Tourism Profile
The Free State is well endowed with natural and scenic beauty as well as historical significance waiting to be discovered. Just to mention a few;
- Clarence in Thabo Mofutsanyane is the jewel of tourism, voted the best tourist town in the Free State and the 4th most popular town in South Africa last year.
- The Free State has five major attractive dams for water sport and a haven for angling
- Three of the major rivers of this country also border the Free State not to mention the confluence of two of them at the Tussen die Reviere in Xhariep
- Seekoevlei Nature Reserve in Memel is a registered RAMSA site teeming with hippos a bird life
- Vredefort Dome World Heritage Site is a geological adventure to be explored
- Jaggersfontein mine is the deepest vertical man-made hole in the world
- The African National Congress was founded in the Weslyan Church in Waaihoek Mangaung.
Many historically significant and heritage events have been hosted in this area in 2012, these include the ANC Centenary, the ANC Conference, MACUFE,Tour de Free State Cycle Race, FI Powerboat Championship and many more.
In the same vein, the following events will be hosted in the new financial year:
- International Soccer Tournament in July 2013
- Free State 500 NASCAR in November 2013
- F2 Powerboat World Championships in December 2013
We anticipate that these events will increase tourism spend and contribute positively to the economic growth of the province.
Our two tourism innovation programmes, the “Kasie and Stokvel” tourism will gain momentum this year. Through “Kasie tourism” we will identify popular hangout places in our different townships for tour operators to include in their tour packages.” Stokvel Tourism” will target saving groups like social clubs, burial societies, schools and churches to visit tourism attractions in the province and incentives will be provided for this purpose.
In cultivating music tourism in the province, we will host choral and gospel concerts through which we will attract music lovers to travel the Free State. Our intention with this programme is to inculcate, in these groups, the business aspect of music.Our performing artists will still be encouraged and supported in promoting Free State Tourism attractions through their music.
Public entities
The public entities are the establishment of the government to advance the course of the Government’s mandate of improving the lives of the people. These entities should be accessible and responsive to the needs of the people of this province.
Free State Development Corporation
The FDC will be repositioned and realigned to become an effective, efficient developmental financial institution that will be readily able to implement government policy, strategy and programmes.
Free State Tourism Authority
The FSTA will focus on the vigorous marketing of the province to enhance its position as a preferred inland tourism destination.
Free State Gambling and Liquor Authority
The Free State Gambling and Liquor (FSGL) Act must be re-written by June this year in order to make this entity more responsive and efficient in regulating the gambling and liquor industry in order to address social challenges in this province.
Environmental management
Acting Speaker, our environment is threatened. The negative impact of climate change is manifesting itself in our environmental conservation estate. Our best assets as a province are our natural resources and we have to do everything in our power to protect them. We have therefore allocated R171.458 million to environmental management. These range from the quality of our air, water, biodiversity, compliance and of course eco tourism.
This year we will register a further 200 eco schools, 200 eco clubs, 6 conservancies and increase our protected area by another 2 500 hectares.
Greening and Recycling
Keeping our environment clean and healthy will be approached with vigour. We will concentrate on fewer areas where a number of people will be employed, given tools and protective clothes to enable them to work for longer periods. The greening projects will be monitored and sustainability and creativity will play a key role. Community projects which will come up with most successful recycling and greening ideas will get incentives.
We started with a project in Bethulie last year where we planted 1600 fruit trees. Not only do these trees provide the necessary shade from the harsh sun but will provide nourishment to the community.We have also concentrated on the development of parks. One of the parks that we have designed for Ventersburg with an open air gym can be viewed next to Mamahabane clinic, the other side of the stadium.
Ranched Lion Hunting
Lions Breeding and Hunting in the Free State has made big news in the media in the recent past. In 2012 we approved the Norms and Standards for Large Predators. The only two game farmers that breed and hunt lions in the Free State strictly comply with their permit conditions .However, our challenge is game farmers who keep more than specified number of lions on their farms resulting in escapes. Subsequently, the numerous incidents where lions have escaped and threatened the lives of our people have necessitated that permit conditions for keeping large predators be reviewed.
Trade in lion bones is also something that concerns us. Our enforcement unit is working around the clock with SAPS to identify any illegal activities in this regard and other environmental crimes.
Management of Resorts and Reserves
Tourism plays a very important role in the economy of the province. We have therefore strongly recommended a closer relationship between the environment branch and the FSTA to ensure that we increase the volumes of visitors to our reserves and resorts. To this end, R112 million has been used in the refurbishment, building of chalets, building of roads and staff houses at 5 resorts in order to attract more visitors.In the coming financial year R52 million has been set aside for further building and refurbishment of resorts and reserves. To enhance occupation at our resorts, we will also introduce the central reservation system.
The Green Economy
We will host a summit on the Green Economy where we hope to set the stage for this very important issue. The opportunities are massive in this field, and the Free State needs to grab them with both hands. During the Summit we will also be looking into ways of responding to climate change whilst creating sustainable green jobs.
We will furthermore be embarking on the development of a greenhouse gas inventory. This will enable the province to know exactly what the levels of greenhouse gas emissions are. We will then be able to develop various response programmes which will assist the province to adapt and mitigate climate change.
Naval Hill Planetarium
The Free State is poised to play a significant role in the Knowledge Economy. Bloemfontein will be the home of the first digital planetarium in Sub-Sahara Africa. This development entails the reviving of the old Lamont-Hussey Observatory which was built by University of Michigan in 1923.
The planetarium will be an important ‘edutainment’ facility with plans for the proposed multi-purpose centre that will include office space for provincial government to run programmes and conservation on the environment, as well as a heritage museum and a Science and Sculpture Garden. Based within the existing game-reserve, the centre will be a formidable resource for communication on the environment and the natural sciences.
This will enable scholars, students and tourists to “fly’ through the universe, visit planets, experiencing the creation of the universe, ‘diving’ into the deepest secrets of the ocean, exploring the creation of mankind. We also believe that with the assistance of our tertiary institutions like the University of the Free State, we have far more than a fair chance to leverage the Knowledge economy to create a smart society.
Ingula Pumped Storage Hydro Electric Scheme
The Free State continues to play a significant role in this R16 billion energy infrastructure project at the border of the Free State and Kwazulu Natal. Our Department, working together with KZN and ESKOM has demonstrated that conservation and development can and should go together.
Eskom has invested R650 million in building a dam in the Free State as part of the project, creating 250 jobs for Free State residents. Working with the KZN and ESKOM, the Free State has ensured that the impact of such a huge development project is very minimal to the environment. Today there is a massive new conservation area under the stewardship of the Free State.
Artificial Wetlands
Wetlands have a natural ability to purify water, and the objective will be to create artificial wetlands in strategically located areas to naturally treat polluted water before it enters our rivers and streams. Therefore an amount of R9.5 million has been secured from working for Wetlands for creating artificial wetlands in the Free State. These projects will have direct and indirect benefits for the people of the Free State through the creation of jobs and improving the health of our rivers respectively.
Since 2009, approximately R53 million has been spent on the wetlands of Seekoeivlei, the upper Wilge River Catchment, Maluti-a-Phofung (Qwa-Qwa area) and the Golden Gate Highlands National Park which have provided jobs for more than 1000 people during its period of implementation. The work is being done on a continuous basis.
Letsatsi Solar Power Project
On Thursday 07 March this year, together with the Department of Energy, we unveiled a solar energy project at the Soutdrift Substation south of Bloemfontein. This R2.4 billion project is yet another initiative by this government to ensure continued uninterrupted supply of electricity as utilizing South Africa’s renewable energy generation potential to achieve more balanced generation mix for the South African economy. To date, 150 people are already employed on site and further 450 will be employed in the future. This plant is expected to produce 42% of the total electricity demand of the Free State.
In conclusion
To demonstrate the ‘new glorious wave, the new wave of hope, the new wave of change , the new wave of structured thinking to unlock opportunities and awaken the giant of the provincial economy of the Free State, I wish to draw inspiration from Confuciuos, the Chinese thinker and philosopher when he said;
“To put the world in order, we must first put the nation in order; to put the nation in order, we must put the family in order; to put the family in order, we must cultivate our personal life; and to cultivate our personal life, we must first set our hearts right.”
Honourable Acting Speaker, I wish to take this opportunity to thank the Premier for his confidence in entrusting me with the responsibility of leading this portfolio, the African National Congress, my organization that has nurtured me into who I have become today.
I also wish to thank the Portfolio Committee for their diligent oversight that keeps us focused. I also wish to take this opportunity to thank Mr Ikhraam “Ozzie” Osman, the Head of the Department, members of the different Boards, the management and staff of the Department and the Public Entities.
Gratitude should also go to our mother departments, The National Department of Environmental Affairs, National Department of Tourism, Department of Trade and Industry, the Department of Economic Development, Department of Public Enterprises, the business sector in general and all other stakeholders. Thank you very much.
Mangibonge kubo bonke abomndeni wami ngokungiseka ngazo zonke izikhathi.Khulani nindlondlobale Mangethe.
Acting Speaker we now table before this house the budget of the Department of Economic Development, Tourism and Environmental Affairs for the 2013/14 financial year.
Programme summary
Summary of economic classification
Infrastructure payments
Transfers to public entities
Conditional Grants
Programme 1: Administration
Description: The role of the programme is to provide leadership, strategic management in accordance with the legislation, regulations, policies as well as providing appropriate support service to other programmes.
Programme 2: Environmental Affairs
Description: The aim is to coordinate the sub-programmes that will assist in the protection of human health and the environment in the province as follows:
To implement and monitor legislation and policies in the areas of Air Quality, Biodiversity, Climate Change, Compliance Monitoring, Environmental Impact, Protected Areas, Pollution Control, Protected Areas and Waste Management.
Programme 3: Economic Development
Description: The programme aims to promote vibrant economic activities within the province.
Programme 4: Tourism
Description: To create enabling Tourism environment through legislation, policy and strategy development.
