Budget Vote (Vote 3) tabled by MEC Mosebenzi Zwane for Free State Economic Development, Tourism And Environmental Affairs and Small Business Development

Honourable Speaker and Deputy Speaker,
Honourable Premier,
Honourable Members of the Executive Council,
Honourable Members of the Free State Legislature,
Leaders of different political parties,
Mayors and Speakers of different Municipalities,
Chairpersons, Board Members and Chief Executive Officers of Public Entities,
Members of State Institutions supporting democracy,
Members of the Traditional Houses,
Organised business and labour,
Director-General, Heads of Departments and Municipal Managers,
Bomme le Bontate,
Mme Motswadi,
Baqolotsi ba Ditaba ba teng kwano le ba siko.

Mohlomphehi Motsamaisi wa di puisano, ke thabo le motlotlo ho nna ho ema mona Lekgotleng la Ketsamolao la Frei Stata ho tlalehela baahi ba Frei Stata ka meralo le mawa a lefapha selemong sena sa ditjhelete ho ntshetsa pele thomo ya rona ya ho fetola maphelo a baahi ba Frei Stata.

Thomo ya rona, Motsamaisi wa Dipuisano ke Ntlafatso ya maphelo a baahi ba Frei Stata, ho sebetsana le tse amanang le ntlafatso ya moruo le maphelo, bohahloadi, le tlhokomelo ya tikoloho.

Thomo ya lefapha  lena la rona re e nka karolong ya bone le ya bohlano ya Molaotheo wa Afrika Borwa, e laelang hore Lefapha le lokelwa ke ho laola le ho tsamaisa tsena tse lateng;

1. Kgwebisano
2. Bohahlaodi
3. Dikhasino, mejaho ya dipere, ho gembola le ho betjha
4. Tshireletso ya Bareki
5. Tikoloho
6. Ntshetsopele ya di Indasteri
7. Polokeho ya Tlhaho
8. Dikgwebo tsa setjhaba
9. Dilaesense  tsa thekiso ya jwala le taolo ya dibaka tse rekisang jwala setjhabeng

Taolo le tsamaiso ya tse boletsweng re ka di phethahatsa ka ho nka ketapele le ho ba sehlohlolong sa maikemisetso ao  lefapha lena le ikanetseng ona. Hona ho tla fana ka bopaki bo felletseng hore ka nnete-nnete re etsa tsohle molemong wa setjhaba ka nako tsohle mme sena se tla etsa hore setjhaba se be le tshepo ho rona. Motsamaisi wa Dipuisano, ka mehla re lokela ho dula re pepesa diqeto, mehato, mawa, tshebediso ya tsohle tse taolong ya rona le tseo re di fihlelletseng. Tsena tsohle ke dumela hore di phehisa  kahong ya setjhaba se thabileng.

Ukuthuthukiswa kanye kwezidingo ekugcineni  nqubomgomo ophefumulelwe uhambo lwethu lweminyaka engamashumi amabili  njengesizwe esikhululekileyo nesi buswa ngentando yeningi nokubanjwa kokhetho olukhululekileyo futhi luyimpumelelo ngomhla wesikhombisa kuMbasa nyakanye. Ukhongolose wabuyiselwa amandla uningi lwabantu base Mzansi Afrika futhi lesi sifundazwe ikakhulukazi siyazi ukuthi akukho mbutho ngaphandle koKhongolose onakekela futhi ukhathalela izidingo zabo.

Malungu ahloniphekile, enkulumeni yakhe yesizwe nyakanye (SoNA 2014), uMhlonishwa uMengameli Jacob Zuma uthe umnotho uzodla ubhedu kulo nyaka wezimali. Umnyango kaMongameli waqokomisa izinselelo ezilandelayo: ububha, ukungalingani kanye nokungasebenzi njenge zithiyo ezithiya ukukhula komnotho. Esikhungweni sokulwa nalezi zithiyo sizosebenzisa uhlelo olubizwa ngokuthi phecelezi ngokuthi yi”National Development Plan” (NDP)

Loluhlelo olubalulekile ludinga  umnotho owukuthi uyabandakanya, usimame, kanti futhi izithelo nokukhula komnotho kwabelwana ngokulinganayo. Loluhlelo luhlose umnotho okhathalela izidingo zabo bonke abantu  baseNingizimu Afrika, -abacebile nabampofu, abamnyama nabamhlophe, onekhono nongenalo, abasemadolobheni nabasemakhaya, abesifazane nabesilisa. Ukufikelela kuloku umnotho kufanele ubandakanye kanti futhi ukhule masinya, phakathi kwezinto eziningi fuze siqale ngokwehlisa izindleko zokuhwebisa eFrei Stata.

Somlomo, umhlonishwa undunankulu ubabu’ Ace Magashule wagcizelela futhi ukubaluleka kokuthuthukiswa komnotho  ngesikhathi ethula unkulumo yakhe yesifundazwe nyakanye, wathi “nyakanye umbuso wakhe uzoqhubekisela phambili isinqumo sethu sokutshintsha umnotho ngesifutho.

Honourable Speaker, this policy statement is further informed by the ANC Manifesto and the Resolutions adopted at the ANC Lekgotla which was held recently.

The Resolutions intend to build a truly responsive and caring Provincial Administration.

Among others, lekgotla resolved as follows,

• Radical Socio Economic Transformation will be central focus in the next five years
• Creation of more jobs and decent work for sustainable livelihoods
• Ensuring faster inclusive growth, combined with much higher levels of employment
• Employment of young people must be accelerated and prioritized
• The implementation of the Broad Based Black Economic Empowerment Act, must be advanced in order to transform the ownership, management and control of the economy
• Support of small business and cooperatives must be intensified as small business development is a key priority to promote inclusive growth and create jobs
• The inclusion of Small Business Development into the Department of Economic Development, Tourism and Environmental affairs

ECONOMIC OUTLOOK

The recent Provincial Treasury report indicates that the Free State economy has evolved steadily from dependence on primary sectors such as mining and agriculture which have been shedding jobs over a period of time to secondary and tertiary sectors such as manufacturing, export and largely the services sectors.

This observation has held true in the recent past and, as has been reflected even in the FSGDS, it is largely attributed to an increase in the size of government activities. What is good about this is the government’s intervention to improve the performance of the provincial economy in difficult times.  However, as we know, we need to strike a balance between government intervention and private sector involvement in the economy.

The situation with the secondary sectors, especially manufacturing and construction, including tertiary sectors such as trade and finance, provide a glimmer of hope as evidenced by the creation of 16 thousand new
jobs in 2013.

I am pleased to report that during 2013/14 revenue collected increased from R45 million to R48 million, which represents an increase of 4.4% from both the gambling and liquor industry. In the current financial year we project to collect R53 million, an increase of 11%.

Tourism contributes immensely to the country’s GDP; according to data released by Statistics South Africa in their latest report, direct tourism contribution to GDP grew from R83.5 billion in 2011 to R93,3 billion. Consequently, tourism contributed approximately six hundred and seventeen thousand two hundred and eighty seven (617 287) direct jobs in 2012.

The latest Stats SA tourism statistics indicate an increase in international arrivals for the Free State from 6.5% in 2012 to 9.6% as at the end of September 2013. This is a significant improvement for the Free State as this represents 48% growth. This increase moves the province from position number eight to position number five out of the nine provinces.

With the upgrading of the R74 road in Thabo Mofutsanyane, we should be able to position ourselves as serious contenders for number four in the next financial year.

52 000 tourists visited our resorts during the past financial year. This translates to R11.6 million revenue generated.

ECONOMIC TRANSFORMATION

SMMEs and cooperatives

The Department has introduced a bold initiative known as the Micro-enterprise Support Programme (MESP). This progressive policy seeks to eliminate red tape and ease the entrance of township businesses into the economic safety net. The Micro Enterprise Support Programme known as “Jwale ke nako ya Kotulo” was launched in August 2013 and has given hope to many Micro Enterprises who had otherwise lost hope.

A total of 1 170 applications were received and we have since assisted 230 beneficiaries.  This programme has proven to respond to the needs of hawkers and struggling small, medium and micro enterprises (SMMEs) who have kept the micro business environments around the townships, taxi and bus ranks, and street corners vibrant and alive.

We have learned important lessons from the men and women who decided to do something with their lives albeit the challenges facing this business sector, hence in the new financial year a new branch of Small Business Development has been established to ensure that the support is comprehensive and focused.

• To provide support to SMMEs and cooperatives  through the Micro-Enterprise Support Programme (MESP) R17 million; The following projects will create 658 jobs;
  • Support to 55 existing catering SMMEs:
  • Support to 45 additional SMMEs in different sectors, with priority to those included in the database
  • Host a provincial SMME and Tourism Indaba during this financial year
• FDC: The budget allocated for SMMEs Funding is R15m for the 2014/15 financial year.  With the intended sale of properties and the earning of income from other sources and improved collections of outstanding debts, the FDC’s board intends to continually increase the allocated amount for the SMME funding. This is exemplary as it is happening without the department proving any grants to FDC for SMME funding.

INCREASING PROVINCE’S INDUSTRIAL BASE AS PART OF JOB CREATION

The Industrial Policy Action Plan (IPAP) promotes the development of industries as a means to growing the economy and creating more job opportunities.

In response to the IPAP 2014-15, we recognise the importance of creating an industrial base that will be focused on market demand goods and services including exports. In the previous financial year, we made a commitment to reposition the FDC. I can confirm that we are beginning to see the results of this effort, this entity together with private sector are driving economic development projects that seeks to operationalize the IPAP and the NDP plans of government.

FDC is in the process of continually reinventing itself as an effective tool of government to deliver on its mandate as it is evidenced in the activities mentioned below:

• FDC is aggressively implementing its policy of providing rental holiday to the new tenants to reduce our vacancy rate of 10% in Botshabelo and 20 % in Thabo Mofutsanyana. This is coupled with competitive rental rates for existing tenants.
• FDC is now more customer focused in its approach.
• FDC board has recommended the disposal of 400 mixture of commercial and residential property to the value of approximately R50 million to empower black entrepreneurs and black people in general.

Youth participation in all these industrial development projects remains key. The industrial policy action plan furthermore encourages the development and advancement of black industrialists; particularly the youth. These tie well with the promotion and implementation of Youth Enterprise Development across sectors of the economy.  To make meaningful progress in eliminating poverty and reducing inequality, the Free Staters will have to write a new story and be bold in doing so. We do not, for a moment have to be apologetic, lest we fail to achieve radical economic transformation.  We are the real economic freedom fighters.

The following initiatives that are based in different localities will change the lives of the local people and collectively contribute positively to the Free State economy:

• In Maluti a Phofung we are Revitalizing the textile sector through implementation of specific programmes that would establish factories, recruitment and training for textile sector jobs in partnership with the private sector by utilising supplier opportunities which are aimed at reducing imports by expanding the Cut, Make and Trim initiatives in Qwaqwa.  This programme is aimed at creating 250 jobs in the first phase, and it will further expand to 1000 jobs in the outer years. The recruitment and training will commence in September 2014. An amount of R10 million has been allocated
• Mangaung: Bed manufacturing initiative in Botshabelo will create 20 jobs - this project will also include wholesale outlets, this is expected to be launched by December 2014 but recruitment and training will commence in November 2014. An mount of R1million has been allocated.
• Fezile Dabi: Establishment of ICT Manufacturing Plant has been identified as a strategic location for an ICT manufacturing Plant.
• Motheo: Working with Treasury to provide training to 55 catering businesses who are in the Tourism and Hospitality industries through the CATHSSETA tourism skills enhancement programme. A further 208 young people who are residing closer to the resort and reserves owned by the state to be trained in different aspects of hospitality.
• Xhariep and Lejweleputswa solar projects: Letsatsi Solar Project near Dealesville: together with its sister project Lesedi Solar in the Northern Cape, is currently under construction and will boost job creation with an estimated 600 jobs in construction - 100 permanent jobs and an anticipated 2 640 indirect jobs through various project spinoffs. The Letsatsi Project generates enough clean, zero-emission solar energy and renewable electricity to supply electricity to approximately 65 000 homes. These are private sector initiatives.
• • Maluti a Phofung Municipality: MAP SEZ (Special Economic Zones) – We are expecting the licence to be issued before the end of this financial year.
  Public participation hearing on the SEZ will be conducted in the Maluti-A-Phofung later during this month. The main benefit of establishing the SEZ in Maluti A Phofung is the creation of industrial complex of strategic national economic advantage with a world class infrastructure that will attract foreign and local direct investments and this will result in the creation of decent work and other economic social benefits.
• Establishment of a Printing company to promote BBBEE through established private sector entities.
• Development and support to black game farmers:
  The department has developed the Game Industry Transformation Policy targeting affirmable entrepreneurs with the focus on Game farming by giving game donations, game loan and providing training of black game farmers. The Department has so far donated 328 head of game with the value of R2,6 million  to 19 Black game farmers and trained 30 Black professional hunters. In this financial year we intend donating game worth R3million to qualifying Black Game farmers. The Free State Game ranching industry is currently the 2nd fastest growing game farming industry in South Africa.

TOURISM TRANSFORMATION

• Expansion of the Naval Hill Planetarium: In an effort to increase our international arrivals, we have committed a further R5 million to construct a dual purpose environmental awareness hall.
• Marketing: The FSTA will keep implementing its strategy to attract visitors to the province. There will be signage put up on the five routes, enact the MOUs to be signed with Tourism KZN, Gauteng Tourism and the Northern Cape Tourism which we share the wine route with.We have just signed an MOU with the Central University of Technology to capacitate our research unit. The university will do an impact analysis for all major events held in the province. This will assist the FSTA and the provincial government to make informed investment decisions when it comes to events.
• The entity will also be entering into a partnership to host the following events:
  • Sasolburg - F2 Powerboat
  • Parys - F1 Powerboat
  • Ficksburg - Cherry Festival
  • Ficksburg - Cherry Jazz.

As part of our endeavour to increase the tourism feet, the province has for the previous financial year supported the following events, Macufe, Cherry Festival, Bethlehem air show, Heritage and tourism month and it has shown that they have a positive effect on attracting visitation to the province. A study has been commissioned to perform an impact analysis on different events in the provinces.

ENVIRONMENTAL MANAGEMENT

South Africans are directly dependent on natural resources to survive especially the poor majority, we can ill afford to let the environment deteriorate. Other than providing basic natural resources that sustain life - such as clean air, water and food - the environment is the basis for economic activity. Thus a healthy environment is not only a constitutional right, but fundamental for a vital society and a sustained economy. The message is clear: we need to act now, individually and collectively as a province. If we do not act decisively, we run the risk of losing the environmental resource that we all depend upon.

If we are to confront and deal effectively with the major environmental priorities facing the province and South Africa, we need to improve implementation and enforcement significantly; increase and consistently monitor information and make it accessible; build the capacity of local government; and shoulder our joint responsibility to make development more sustainable.

In supporting the ever changing demands of economy one key regulatory requirement that was introduced was the environmental authorisation of economic activities. To date, 58 categories of such activities have been defined, most recently in the new EIA Regulations of 2010. So far, Free State has processed and approved more than 3 350 applications.

The successful implementation of Environmental Impact Assessments as a tool for sustainable development has to stimulate  job creation and economic growth in the province, and at the same time balancing between Socio-Economic issues and the environment. In this financial year, Environmental Authorisation and Waste Management Licences applications will be processed and issued within the legislated time frames.

• The Ingula project wil be proclaimed as the Protected Area which will form part of the string of FS protected areas. This will contribute to 10 000 ha of land under conservation
• The department will also employ 160 Expanded Public Works Programme (EPWP) workers to the tune of R6.8 m who will combat alien vegetation, restore erosion areas in protected areas and do maintenance work in Resorts. The purpose of this project is to restore degraded and destroyed ecosystems and to re-establish them to their original status.
• The Department has budgeted R514,000 as its contribution to the project that will work around QwaQwa to establish a Community Conservation Area (CCA) to protect the biodiversity of the mountains and enhance tourism to the area where a hiking trail to the top of the Maluti Mountains already exists.
• The department will strive to have all our protected areas (13) management effectiveness to 70% mark. The management effectiveness is a tracking tool developed by the World Bank to evaluate the effectiveness of Protected Area Management. South Africa adopted the use of this tool. Over the past two years our effectiveness increased from 56% to 74%. The department will also increase security at our Protected Areas by appointing more guards so as to protect our Biological Resources
• The Department will spend a further R55 million on infrastructure development in this financial year. This will include the completion of chalets at Maria Maroka and Seekoeivlei Resorts, the upgrade of fences of 2 Protected Areas, and the upgrade of the abattoir at Tussen die Riviere Protected Area.

This will make our facilities to be competitive with other top class facilities in the country and will ensure that people visit our province and facilities.

• An EMI bridging course was presented to 48 Municipal Environmental Health Practitioners with the aim of capacitating Municipalities to regulate the Waste and Air Quality Act.  So far 600 SAPS members and 200 SANDF border members received a 4 hour training session on what to look for during road blocks etc regarding environmental issues especially the illegal smuggling of fauna, flora and hazardous products. The Free State is the only province that has given the Traditional healers attention through training, regulation and support. Presently there are approximately 2500 Traditional healers registered and regular workshops are held with them with the cooperation of the department of health.
• At the same time, we will intensify our efforts to stop the illegal trade in fauna and flora as well as the rhino poaching. Compliance monitoring will continue in various industries. More enforcement actions will be undertaken this financial year.
• Better cooperation with South African Police Service (SAPS), South African National Defence Force (SANDF), municipalities, traditional leaders  and all role players will be strengthened to ensure environmental and sustainable development is fully integrated into government’s decision-making.
• The department has engaged in activities that promote awareness raising and environmental education awareness within the Free State province communities, private sector and non-governmental organisations (NGOs) by conducting the Environment Summit in 2008, the Waste Summit in 2010 and the Climate Change Summit in 2010. These interventions promoted the importance of entrepreneurship development within the waste economy and the profiling of threats posed by global warming and climate change as important factors in protecting our pristine biological and eco-systems environments.
• The Department also facilitated the establishment of 3 green parks (Ladybrand, Batho Location, and Dewetsdorp) which have empowered 800 beneficiaries at an amount of R78 million thus developing skills and business opportunities within the environment sector. 
• The Department also trained more than 2 000 community members on good environmental practise involving urban and rural conservancies. These include promoting environmental education and awareness to more than120 000 learners. In addition more than 50 Environmental Clubs have been established in the FS. We have trained officials from all 24 municipalities on best practise environmental indicators to develop credible integrated development plans (IDPs) to achieve sustainability and good development planning. The Department developed an Environmental IDT toolkit for municipalities to utilise when completing their IDPs in order to ensure the environmental issues are taken into consideration. 

In this financial year the department will conduct environmental awareness programmes in 110 schools in the Free State. 200 community members will be trained as urban rangers. 25 awareness programmes will be conducted in various townships in the Free State with special focus on air pollution, water and sanitation management and waste management and recycling

REGULATORY SERVICE

Free State Gambling and Liquor Authority

This year we will embark on the transformation of both the gambling and liquor industry. Monitoring the compliance of license conditions will be conducted to ensure that the licensee adhere to the conditions of BBBEE in rolling out the Limited Pay Out machine sites, issuing out of more bookmaker licenses.

In our efforts to reduce the socio economic and other costs of alcohol abuse and promote the development of a responsible and sustainable liquor industry, we are clamping down on non-compliance by working together SAPS, Commercial Crime Unit and the National Prosecuting Agency (NPA). Our collaboration with our partners has resulted in the cancellation of 275 liquor licenses, the seizure and destruction of 168 illegal gambling machines and closure of an illegal Internet gambling outlet in Sasolburg, which resulted in the seizure of 48 gambling devices.

In 2013/2014 financial year, 4 590 compliance inspection and 54 audits were conducted to ensure compliance to the Free State Gambling and Liquor Act and licensing and registrations conditions

In the financial year 2013/14 a total of 404 liquor applications were received. Of those 197 were rejected, 66 were approved and remaining 141 have either been withdrawn or referred back.

We will be embarking on extensive education and awareness campaigns throughout the province to educate the youth about the dangers of alcohol and gambling abuse.

Consumer Protection

Our Consumer Rights Campaigns will be strengthened to protect our people against unfair business practices.  Since its inception, this programme has successfully resolved over 1 976 consumer complaints totaling R11 million and has reached 20 000 consumers. This year we undertake to conduct 36 information sessions on consumer rights  and  to resolve all consumer complaints within the prescribed timeframes.  Re a kubeletsa mme lerole la rona le tla tshela dikgwebo tsa dinokwane ka mahlong.

STAKEHOLDER MANAGEMENT AND PARTNERSHIPS

• In partnership with International Labour Organization (ILO) the following initiatives will be implemented:
  • To create a more conducive policy, a legal and regulatory framework for the start-up and operations of small, media and micro enterprises (SMMEs) in the Free State province.
    • The establishment of the SME Observatory to inform evidence based decision-making in the province. With support from National Treasury, R5 m is to be allocated.
    • To assist and support DETEA in the development of the base-line information study on cooperatives. R290 000.00. has been allocated
  • Stimulation of innovation, entrepreneurship and sustainable enterprise development
    • 71 businesses across the Free State province will be provided with financial and non-financial support to the value of R7.5 million.
• This year, in partnership with LESEDI FM, we will provide support to 100 aspiring and emerging DJs in approximately 36 towns in the Free State.
• In addition to this, in collaboration with  the department of Sports, Arts, Recreation and Culture, the FSTA will be training 10 youth in powerboat sport.

ORGANISATIONAL OUTLOOK

• Implementation of learnerships
  During the course of July 2014, the department will be placing 36 learners from technical and vocational education and training colleges (TVET) in various sections of the department. These 36 learners are from different towns within the Free State province. The aim of the experiential training is to provide them with supervised off campus work based experience that earns them academic credits and enhance their employment opportunities.
• Furthermore the department has entered into an agreement with CATHSSETA to train a total of 21 serving employees in nature conservation resource guardianship.
  The aim is to enhance their skills and knowledge in the area of nature conservation as well as career pathing in future endeavours.

QALO YA DITHUTO TSA KOMPORO LEFAPHENG

• Hotloha ka la 14 Phuphu 2014, lefapha le tlo qala ka ho kenya tshebetsong dithuto tsa ho ruta basebetsi ba hlwekisang le ba sebetsang mosebetsi wa tshireletso ho sebedisa komporo (computer).  Sepheho ke ho ba lokisetsa ho re ba be le tsebo le bokgoni bo tla ba thusang ho ka  nyolohela mesebetsing e ka hodimo e kang ya boKlereke le emeng e ka hlokang tsebo ya ho sebedisa komporo

CAPACITY WITHIN THE DEPARTMENT

Honourable speaker, we are conscious of the fact that in order to achieve the milestones that I have mentioned, the department has started identifying the skills needed and in other areas, the relevant appointments have already been made despite the limited compensation budget.

Honourable Speaker, we have no doubt that the programme of action we are tabling before this house and the people of the Free State is realizable. We believe that now is the time for a radical transformation and we have the ability to execute it.  We have all the confidence in our effervescent and energetic team of officials under the capable leadership of HOD Mogokare Seleke to deliver on these plans.

Beyond is not far ahead but is only nearer; there is something inside that is so strong in all of us.

Honourable Speaker, I wish to take this opportunity to thank the Premier for his confidence in entrusting me with the responsibility of leading this portfolio yet again; the African National Congress, my organization that has shone the light over the centuries. 

To the portfolio committee, we say your continued guidance and support inspire us to do even more.

Gratitude goes to all the National departments, Chairpersons of Boards and Board Members, CEOs of Entities, management and staff.

Last but not least, I thank my family for love, support and understanding of the demands of the work we do, without them the journey I have travelled so far would have been almost impossible. I thank them.

Honourable Speaker we now table before this house the budget of the Department of Economic Development, Tourism, Environmental Affairs and Small Business Development for the 2014/15 financial year.

Ditekanyetso tsa lefapha selemong sena sa ditjhelete ke dimilione tse makgolo a mane le mashome a mane a metso e mene le  dikete tse mashome a robedi a metso e mene (R444 084 000).

JWALE KE NAKO YA KOTULO. RE A KUBELETSA!!!!!

I THANK YOU!

The Department of Economic Development, Tourism, Environmental Affairs and Small Business Development:  2014/15 Budget