Program director
MECs in attendance
Members of portfolio committee
Mayors from local and district municipalities
Heads of Departments
Municipal managers
Government and local municipal officials
Our social partners members of media
Distinguished guest
During his State of Nation Address in 1994, the former President Nelson Mandela said, “The government is determined forcefully to confront the scourge of unemployment, not by way of handouts but by the creation of work opportunities.”
In 2004 former President Mbeki announced that, “We will ensure that we launch the Expanded Public Works Programme in all provinces by the beginning of September, concentrating on the 21 urban and rural nodes already identified in terms of our urban renewal and integrated and sustainable rural development programmes. As we have said before, the EPWP integrates, among others, the objectives of the development of the social and economic infrastructure, human resource development, enterprise development and poverty alleviation.” In his statement on 8 January 2009 the President of the ANC, Jacob Zuma said, “The 52nd ANC conference resolution on economic transformation states clearly that people acting collectively in the spirit of human solidarity will shape the patterns of economic development.
This means that there is a role for all sectors of society in shaping our economic and social future. The role of the state is explicitly set out as directly investing in underdeveloped areas. Unemployment in rural areas is disproportionately high, and many rural areas lack basic infrastructure such as roads, water and electricity supply. The creation of decent work is at the centre of all our economic policies. Decent work encompasses considerations of a sufficient number of jobs, the quality of available jobs, social dialogue and social protection.” These commitments are commitments that we will continue to honour and implement.
We are gathered here today because as a provincial departments and municipalities you have responded and you are still responding well to this noble call to implement EPWP. Our performance as a province of Eastern Cape including local government structures has not only showed the levels of poverty and unemployment within the province but it has displayed our commitment in fighting poverty and unemployment, it has showed our continued interest in servicing the people of the province. In EPWP phase one, a national target of 1million job opportunities was set and as Eastern Cape was apportioned 176 000 work opportunities and exceeded this target by creating 255 684 work opportunities.
Thank you for your commitment and a job well done. We became the second best performing province nationwide. Whilst the EPWP has contributed well and exceeded its first five year targets, poverty levels and unemployment are still high. This has been further aggravated by the world financial crisis which later resulted in the global economic meltdown. Hence President Jacob Zuma, in pursuit of the mandate and the resolution of the ANC conference, implored upon us to accelerate the implementation of the job creation and respond to the current global economic meltdown. Internationally, Public Works programmes have demonstrated that they can cushion job losses. It is within this context that target for the next five years (2009 to 2014) increased from 1million work opportunities to 4,5 million work opportunities and 500 000 work opportunities by December. As a province we have been required to create 48 000 work opportunities by December and 60 000 by the end of the financial year. Our provincial 5 year target is 484 000. Once again as a province together we can make it. Ladies and gentlemen for us to be able to achieve the targets, EPWP phase two requires more attention and commitment from us.
EPWP should be given the necessary attention, support and guidance both at a political and administrative level.
An EPWP incentive grant has been introduced to incentives public bodies to increase labour intensive employment through programmes that maximise job creation and skills development as encapsulated in the EPWP incentive grant manual.
For this financial year this incentive grant will only be applicable to infrastructure sector but in future it will be rolled out to other sectors as well.
Ladies and gentlemen, it is critically important to know who is eligible for the Incentive Grant and how does it work. Program director allow me to clarify the eligibility and the requirements as expected: The EPWP wage incentive grant is a schedule eight, conditional grant in terms of the Division of Revenue Act number 12 of 209; guided by the following principles and condition (it’s the first grant of this kind in South Africa as it based on performance).
Only public bodies who have reported on their EPWP contributions in the financial year 2007/08 are eligible for the incentive grant. A threshold has been set based on their performance and the budget allocated. Every work opportunity created above the required threshold will receive incentives for R50 per day per person employed.
Rural municipalities that are eligible will have a zero threshold for this financial year. This means for every job opportunity that they create, they automatically qualify to claim the incentive grant. This is a performance grant meaning that the public body must first attain agreed threshold and then claim.
Report monthly on the EPWP MIS system
After the public body has submitted the EPWP quarter report an audit will be done and the money will then be transferred to the public body’s account by treasury if it has met the threshold.
The EPWP incentive grant can only be used for job creation programmes, nothing else. Public bodies are compelled to sign the wage incentive agreement, committing themselves in implementing EPWP and achieving the targets as set. All eligible public bodies within the province have signed except for Ingquza Hill Municipality.
Program Director tonight we are here to award these ceremonial cheques to the public bodies that are eligible for the EPWP incentive grant as a symbol of commitment in accelerating and taking the fight against poverty and unemployment to greater heights. Our province is greatly affected by the current global recession, mines are closing down forcing the mine workers to migrate back home as unemployed people. The automobile sector that we have heavily relied on is seriously affected resulting in high retrenchments and other companies closing down. Public bodies that are eligible for the EPWP incentive grants are:
Provincial departments:
* Department of Roads and Transport is eligible for R26,9 million and the threshold is 18 720 work opportunities
* Department of Health: R1,1 million and has a threshold of 3 468 work opportunities
* Department of Social Development: R607 000 and has zero threshold
* Department of Sport, Recreation, Arts and Culture: R351 000 and has a zero threshold
* Department of Economic Affairs and Environment: R911 000 and has a zero threshold.
Municipalities:
* Nelson Mandela Metro is eligible for R334 000 and has a threshold of 5 616 work opportunities
* Buffalo City: R333 000 and has a threshold of 5 946
* Amathole District Municipality: R8,3 million and has a zero threshold
* Tsolwana municipality: R1,4 million and has a zero threshold
* Lukhanji: R333 000 and has a zero threshold
* Intsika Yethu: R414 000 and has a zero threshold
* Emalahleni: R738, 000 and has a zero threshold
* Sakhisizwe: R662 000 and has a zero threshold
* Chris Hani District Municipality: R7.9 million and has a zero threshold
* Ukhahlamba District Municipality: R3,8 million and has a zero threshold
* Ingquza: R333 000 and has a zero threshold
* Alfred Nzo District Municipality: R28,7 million and has a zero threshold
In closing, I would like to emphasise the point that if government fails to look at the economic emancipation of the people including job creation, we would have failed our freedom.
I thank you
Issued by: Roads and Public Works, Eastern Cape Provincial Government
30 September 2009
Source: Roads and Public Works, Eastern Cape Provincial Government (http://dpw.ecprov.gov.za/)
