Comrade Speaker and Deputy Speaker
Comrade Premier and MECs
Honourable MPLs
Representatives from local government
Heads of departments
Government officials, leaders of our entities and agencies
Leaders from public transport industry and from commuter organisations
Leaders from the construction industry
Business and community leaders
Distinguished guests
The people of Gauteng
The presentation we are tabling in the house heralds a signpost to the future we have defined when we ushered in the democratic order that continues to shape the values that inform our everyday conduct. We are a society and a nation founded on a strong belief in the need to continue engaging in dialogue with each other, we recognise and celebrate our differences, but so do we uphold the principles that bind us and intertwine our hope in the future of this country and its people.
The founders of our democratic order bestowed on us the binding responsibility to remain true to the desire to inspire our people even in times of difficulty, never to engulf our space with despair and a lack of control on our destiny, never to reinforce a sense of gloom and doom. President Jacob Gedleyihlekisa Zuma, fully understands his and the African National Congress's (ANC) responsibilities and it is this that informed him when he made the clarion call to the nation to embrace a new era defined and characterised by the need for renewal in the conduct of society and its leadership from all walks of life, in government, the legislatures, private sector, civil society and the religious sectors.
In so doing, he was reminding us that his organisation, the ANC, is and has always been driven by a single minded determination to lead the country and its people to the freedom they not only desired but also fought for, on all fronts, in the army, in mass struggles, in the international arena and in the underground. They combined their heroic efforts in the factories, townships, rural, urban and peri-urban settings. They fought their battles in the schools, university campuses, in churches and in the process some paid the supreme sacrifice of laying their lives for the freedoms we enjoy today.
So as we renew ourselves and embrace the culture of our heroes and heroines we must not take for granted the free space we enjoy, it is bestowed on us through the sacrifices of generations whose sole aim was to see us, South Africans, Black and White, free of oppression. We are therefore obliged to enjoy these freedoms responsibly and in a manner that ensures that we, ourselves, bestow them free from encumbrance to future generations.
Madam Speaker, the future we have sketched above is being forged in the context of a country that is stable, has had a history of positive economic growth, created employment, provided growth generating social and economic infrastructure and managed its economy in a prudent manner.
The past fifteen years have witnessed the setting in of a good foundation for democratisation and institution building and the development of policies that propelled our economy to what it is today.
While tremendous progress has been made in both the economic and social and government sectors, it is clear that, despite these positive signposts, the structural weaknesses of the South African economy remain the single most impediments that prevent the benefits of economic growth to be shared and enjoyed by all, particularly the poor and downtrodden working class. The next medium term strategic framework will focus on ensuring that economic growth and development are underscored by the creation of large scale investment in quality education and skills development. This will be done working together across all spheres of government.
The nation and the province should fully understand that while there were successes recorded in the past fifteen years, it also brought with it challenges that continue to inquire whether we can utilise the current situation to seek a broad consensus on the future we require for both our province and the country. There is a need to ensure a long term vision which will derive from all South Africans drawn from all walks of life.
The reality of our situation is that we begin this term of office against the backdrop of economic meltdown in the country and the world. This crisis will negatively affect our economic growth and this has implications for investment, employment and income revenue. A great possibility exists that the hardships brought about will be passed on to the poorest of the poor and this will worsen poverty and inequality. Low rates of economic growth will affect government revenue negatively, thus pushing government to borrow from markets to finance the deficit.
At the same time, there are substantial challenges faced by trade and industry, employment and training, income distribution and social security. Despite this adverse economic situation, we have a responsibility to harness opportunities that will put us on a path to long term growth and development. The developmental state we seek to build, must act in a strategic and political manner to lay a foundation for a social compact amongst South Africans. This means it must have the technical capacity to provide leadership and engage civil society in the process.
There is acceptance among world leaders in government, private sector and economists that markets acting on their own cannot rectify problems generated by their own operations. In this regard all accept that the state has a pivotal role to play in rectifying these weaknesses and rectifying social injustice and economic inequity. We must recognise that all have a critical role to play and therefore we must act in partnership at all levels.
The ANC and our government is informed by the reality that we operate in a global environment where there is uncertainty and turbulence, and that our society faces challenges that have deep historical roots of our immediate apartheid past, and that it will take tremendous effort to change the economic and social structure of our society. We are particularly called upon to seek a popular and shared agenda that is supported by society. This agenda must seek to secure a tangible social agreement which has the commitment of major stakeholders arrived at through dialogue and engagement.
This agenda should amongst others address the following:
* the nature of the society, state and environment
* the structure of the political economy and its level of technological development
* social development
* legitimacy, effectiveness and efficiency of government.
The national government in its outline of the Medium Term Strategic Framework (MTSF) 2009/14 undertakes to improve the conditions of lives for all South Africans by focusing in the current period through programmes that impact the economic crisis, particularly on the country’s productive capacity as well as jobs and poverty reduction measures. This will be done through identifying opportunities for new areas of growth and economic participation in order to set the country on a new growth and economic path. This requires a growing and transformed economy.
We aim to set the country on a higher and sustainable growth trajectory by the end of 2014 which should be characterised by expansion and diversification of the economic base, thus ensuring greater equity and social cohesion through tackling unemployment and poverty. This is only possible if there is universal access to electricity, water and sanitation, including accessing economic opportunities.
In order to drive economic activity and ensure faster economic recovery, there is a need to protect jobs and expand employment opportunities through major infrastructure programmes, public employment initiatives based on public works and large investment projects by the private sector, particularly of high labour absorbing impact.
The government’s approach recognises the centrality of an economic growth path which solves the economy’s structural constraints, expands the industrial base and creates decent work opportunities. Critical to this will be investment in quality education and skills development for young people.
The result of the restructuring and reconfiguration of the Gauteng government led to the erstwhile Department of Public Transport, Roads and Works being split into two competencies of Roads and Transport Infrastructure provision and Public works and property management. This was informed by the need to better position government to deliver services in a much more focused and strategic manner. As a result, we now have two new departments: Roads and Transport and Infrastructure Development.
The establishment of the two departments poses challenges of change and process management, which must assure employees that their skills and competencies will be required by both departments, and therefore there is no need for uncertainty. This process will result in all of them being appropriately deployed according to their competencies, either to new positions or confirmation of their current positions. We are assured that no one will loose their employment as a result of the new changes.
We however must warn that the delivery of service to our people remains the only driving force that defines who we are and what we do. In this regard, all employees will be required to embrace the new direction and approach in the delivery of these services.
In the context of the above it is important to understand the Medium Term Expenditure Framework (MTEF) presentation we are making. It is underpinned by the need to improve infrastructure provision in the area of transport and also lay a basis for a much more strategic intervention in the overall provision of roads and public transportation. We are fortunate in that we are provided the opportunity to refocus the department in a manner that ensures that the electoral mandate arising from the 2009 elections is fully implemented, through a process of reprioritisation and strategic planning to deliver on the MTSF we outlined above.
The Premier of Gauteng, Ms Nomvula Mokonyane has indicated, "We also want to work with other role players to revive rail infrastructure to stimulate agriculture and other economic activity and improve access to markets in outlying areas in the province such as Sedibeng and the West Rand. Taxis remain an integral part of public transport in our province. We will continue to work with this sector to ensure that commuters and all our people receive decent service which is safe, clean, affordable and reliable. We will work with them as we set up a seamless public transport network and single ticketing system across trains, buses, taxis in the next few years. We will also expand the number of drivers’ license testing stations, reducing the backlogs and rooting our maladministration and corruption."
We thus present a budget that focuses on the immediate financial year, but which also outlines future plans, strategies and challenges for the period ahead. In this regard, we seek the legislature to approve our budget with the understanding that we will change some of our priorities and refocus them towards meeting the new political mandates and directives of the ruling party.
We are driven by the overriding objective of providing a world class roads and transport infrastructure network and systems that facilitate seamless mobility of people, goods and services within Gauteng.
This we believe should and must be done through the provision of an environmentally sustainable roads and transport Infrastructure, integrated transport systems and services that are reliable, accessible, safe and affordable, which promote socio-economic development.
Our core mandate is part of a wider goal of building sustainable communities through the development and upgrade of social and economic infrastructure of which transport is a crucial component. We will do this in a manner that creates decent jobs, sustainable economic growth and development through partnerships with communities, transport stakeholders, business and other role players.
Inspired by vision 2055 and the creation of a globally competitive city region, the department will focus on the strategic objectives of developing a modern integrated transport system that provides high quality, accessible, efficient, safe, affordable and environmentally sound transport services; which contributes to the overall achievement of economic growth by investing in the development of road infrastructure systems, thereby ensuring that province becomes a competitive city region. In addition we will develop the technical capacity of the department to ensure good governance and provide a sustainable transport infrastructure that will improve the quality of life by mitigating against environmental hazards.
Madam Speaker, in the year 2009/10, we will focus on delivering short term priorities which are a carry through from the previous term, but within that we will also reprioritise to implement immediate deliverables determined by the new mandate in this term. We will do the following:
* Conversion of radius based permits to route base operating licenses
* Establishment of Transport Operating License Administration Bodies (TOLAB)
* Taxi recapitalisation programme
* Compliance monitoring on public transport operators
* Construct K29 between Cosmo City and the N14 as well as the link from the N14 to the access road to Lanseria Airport
* Continue to maintain the existing road networks through day to day operations such as road marking, repair of guard rails and pothole repair
* Prioritise accessibility and mobility from previously disadvantaged areas
* Develop and operationalise the integrated ticketing strategy
* Prioritise all transport infrastructure related to FIFA 2010 Soccer world cup and ensure a lasting legacy.
We are committing in this financial year to introduce the following strategies and programmes, which will lead to the implementation of the new agenda based on the manifesto of the ANC:
* Ensure a strategy in an effort to revive our segment of the Maize Triangle. This we will do in conjunction with Transnet. (May 2010)
* Setting minimum labour content of transport infrastructure investment (November 2009)
* Government’s approach to tolling and public hearings (November 2009)
* Ensuring an enhanced, intelligent transport system (September 2009)
* Develop a plan on integrated, inter-modal and inter-nodal transport system (January 2010)
* Expansion of drivers’ license testing stations and booking system (August 2009)
* Setting road safety targets (August 2009)
* Filling of vacant posts (November 2009)
* Introducing drastic cost-cutting measures
* Government approach to tolling and public hearings (November 2009)
* Drivers’ licence testing stations and booking system (August 2009)
* Setting road safety targets (August 2009)* Filling of vacant posts (November 2009)
* Cost cutting measures (July 2009).
In ensuring the above for the future the department faces the following challenges:
* In 1994 we inherited an ageing road network with capacity backlogs and the subsequent economic growth added significant traffic and freight loads
* Due to the above the road network required extensive maintenance, rehabilitation, reconstruction and upgrading totalling R4 billion on surfaced roads and R14 billion on un-surfaced, provincial and municipal roads
* The annual maintenance budget required to maintain in proper condition is R850 million, whereas only R402 million is provided for
* Our road infrastructure has reached its end of functional life. Maintenance costs are escalating rapidly while traffic volumes have increased significantly growing at 5 percent per annum.
* The development of new residential and business areas places further demands on the development of road networks
* Increasing construction costs which reduces the impact of the available budget.
Despite the above, we are committed to working within our budget and reprioritise in such a way that we meet both our immediate and future commitments. In this regard, we have significantly reprioritised plans to ensure that we extend and improve the road networks leading to and connecting previously disadvantaged areas and the 20 prioritised townships. This is aimed at ensuring that they access economic opportunities and ease traffic congestion.
We also aim to be involved in a multi-sectoral infrastructure development and provision plan for the province which will strategically position the province in the economy. The plan will envisage a thorough process of ensuring labour intensity, crowding in private sector participation and investment in the provision of social and economic infrastructure. Our contribution in this regard will be to develop an integrated road infrastructure plan based on modern technology and intelligent systems to ensure integration, inter-modality and connecting economic nodes.
Madam Speaker, the transport industry is impacted upon by economic performance at any moment. In this regard it is important for us to reflect briefly on the performance of the economy. Investec economist Anabel Bishop indicated that we are likely to see a decline in Producer Price Inflation (PPI). This stems from a trend that started in June which is likely to continue until the rest of the year. Factors that contributed to the decline are moderation in price pressures generally, particularly food, oil and petrol.
As far as the automotive industry is concerned, Mr Jacques Brent, vice president of Ford Motors Southern Africa indicated that the industry is expecting recovery in this year.
Given the current economic scenario and the future outlook, it is clear that our own revenue will be adjusted downward during the adjustment budget. National Treasury estimate for the decrease in revenue collection starting at R8 billion, then R10 billion, then R50 billion now R90 billion. Due to the downturn in the economy, direct charges being paid in 2008/09, license fees collected are R300 million less than estimated.
Members of the legislature
The department is allocated R8,5 billion for the financial year of 2009/10 which is a substantial increase from our previous year's budget allocation of R6, 460,900 billion. Of the R 8,5 billion allocated to the department, an estimated R5.2 billion is reserved for the continuation of the Gautrain project. This is comprised of a conditional grant allocation of R 2.833 billion from national government, R2 billion from the Provincial government and borrowings of R 380 million. The remaining R1,5 billion is reserved for the road infrastructure, R1,6 billion is reserved for public transport and operations and R 300 million is for administration.
The department has also prioritised the maintenance of all roads in the Province, however due to budget constraints we have had to reprioritise within available resources:
* R312 498 000,00 is allocated for the maintenance of 5 440 km which include roads in all 20 prioritised townships
* R97 104 000,00 has been allocated for work on Adcock (K15) Phase 1 (Leratong to Dobsonville), which has already commenced
* R1 650 000,00 has been allocated for work on Adcock (K15) Phase 2 (Dobsonville to Protea Glen), which has already commenced
* R66080000,00 has been allocated for work on Beyers Naude (Honeydew to Zandspruit Informal Settlement). The project is underway.
Our approach on the 20 Prioritised Township Programme (PTP) is to change the landscape of these areas, and a programme of upgrading of gravel roads to surface roads will continue. We will construct new and or develop existing arterial roads that will link communities in these townships with economic activities and opportunities.
The road network is important in the creation of new nodes in the province. As a contribution to the President’s announcement of the creation of 500 000 job opportunities by December 2009, our capital outlay will be done with a strict adherence to the EPWP principle. This will yield to a creation of 33 453 sustainable jobs during the 2009/2010 financial year. The Department of Roads and Transport is also in a process of reviewing contracts for professional consultants and project managers on routine maintenance projects with the objective of utilising internal capacity. This project will release resources that will be reinvested in the construction and maintenance of roads and thus the creation of other jobs.
The National Land and Transport Act (NLTA) requires that we de-establish the boards and in their place, establish provincial regulations entities. This is done with the aim of increasing the capacity of the state to regulate all forms of transport. In conjunction with the national department, we will promulgate regulations that will enable us to do this.
The bus rapid transport systems are an integral part of creating an integrated transport system. This is aimed at improving and transforming the road network system to ensure sustainability. With increasing urbanisation, inter-modality will be crucial in the choice of modes and nodes within urban transport networks.
In this regard it should be noted that both Tshwane and Johannesburg have engaged in extensive processes to integrate the bus rapid system in their overall transport network.
The City of Tshwane is in the conceptualisation and feasibility stage and has delegated this responsibility to the South African National Roads Agency Limited (SANRAL). It is expected that the first phase of the Bus Rapid Transit (BRT) system in Tshwane will be operational in early 2010. On the other hand the City Of Johannesburg (CoJ) has already embarked on constructing its 122 km of trunk routes with 50 stations, eight terminals and five depots. Phase 1A of the BRT was ready for implementation by June this year, but due to certain challenges has had to be postponed for later implementation in September 2009.
It is our view that Gauteng is ready for implementation of the BRT and has advanced to higher levels, as such the uniqueness of our situation must enable us to proceed. We recognise the need to involve all stakeholders in the BRT system including the taxi industry, but we are also fully cognisant of the fact that the system is for the benefit of all citizens and commuters in the province. We all have a stake in and an interest in ensuring that it works.
In this regard we will encourage our cities to proceed with the construction on the BRT and engage the taxi industry in line with the details of the national department of transport. We have appointed people who will represent Gauteng in the Joint National Working Group (JNWG) that involves the three spheres of government with representatives from the taxi industry. Our structured engagement focuses on the following strategic areas:
* Implementing the BRT system and other integrated public transport networks (IPTN) project
* Taxi subsidisation and the taxi recapitalisation programme
* Legislation, licensing and regulatory issues
* Enterprise development
* Communication and Stakeholder engagement.
The Minister of Transport in his 3 July 2009 budgets speech indicated as follows, “In August the working group will submit an interim report and implementation will start by October 2009. We can say we have now entered a phase that is not going to be characterised by conflict. If 2009 is a turning point let it not be said that the taxi industry did not turn.”
We are confident that the negotiations will be conducted earnestly and should not affect 30 August 2009 target date. We encourage the taxi industry to participate in the entire transport value chain. This includes busses, freight, rail, transport finance and fuel among others.
Ten years ago we came to this house to present a request to establish a rapid rail system as part of a contribution towards modernising transportation in the province. Today we are satisfied that after construction began in 2006/07, the first phase of this rapid rail link will be completed in the next financial year. This is a milestone that must be celebrated by all. It is further proof that working together, we are doing more.
Phase two of this project is expected to be completed in 2011. In the process of its creation, the project has contributed towards black economic empowerment by allocating 25 percent of share ownership to black entities. A further 8 percent has been sold to local companies by each of the two international stakeholders of the project. It has also contributed to job creation and skill in partnership with the Department of Labour.
The Intelligent Transport System (ITS) initiative involves the collection, procession, integration and supply of information through the application of computer and communications technologies to enable authorities, operators and individual customers to make better informed, more intelligent and more coordinated transport decisions.
The ITS initiative constitutes a major part of the Gauteng Provincial Government’s plan for turning the Gauteng province into a global city region where transport systems are integrated appropriately and function optimally.
The overarching function of ITS is to improve the operations of transport systems and enables their seamless integration, which in turn will support the general transport objectives of mobility, safety, reliability, efficiency and environmental quality. Simply put, ITS is about saving time and money and improving the quality of life.
As part of the strategy to streamline the implementation of ITS, the department has stripped the system into various components or projects. These projects include:
* Integrated safety and security system ("I3S")
* ATM surveillance ("I2S")
* Interoperable/Integrated Fair Management ("IFM")
* Intelligent number plates ("INP")
* Integrated revenue management system ("IRM"); and
* Document management system.
The project continues to face challenges other than resources. There will be delays in some of the projects of I3S due to resource constraints. One of the projects that will be delayed is the interoperable/integrated fair management.
The objective of G-fleet is the optimisation of vehicle utilisation and return of investment. Key in the task of this entity will be the yielding of efficiency gains that will realise revenue for other projects. The systems on the use of vehicles by GPG should do way with inefficient use and abuse.
We will support G-fleet in its increasing market share by roping in municipalities and other related stakeholders as its client base. We are embarking on a process to ensure that the entity’s clients are satisfied with the level and extent of professional services offered by this entity. This will be done by performing regular customer satisfaction surveys.
In the spirit of review of the Gauteng government, its organisational design and the capacity to deliver services effectively, the Department of Roads and Transport is in the process of merging the Urban Transport Fund (UTF) and Gauteng Transport Management Authority (GTMA). They have been brought under the umbrella of one board.
The UTF was established and mandated to among others, manage and maximise revenue generation by introducing innovative revenue collection mechanisms. This should be done in a manner that recognises the existence of other similar agencies that do the same and satisfying the needs of the targeted clients.
In preparation for the 2010 FIFA World Cup, the department will construct 5.7 kilometres of double carriage way along Malibongwe Drive (K29) from N14 Krugersdorp Highway to Ashanti Road, Lanseria Airport at an estimated cost of R400 million.
The 2009 FIFA Confederations Cup was an opportunity to test transport system capacity. Whilst many of the 2010 transport related projects will be finalised at the beginning of 2010, there are many lessons to be drawn from projects such as the Gauride. The issue of integrating our services with those of host cities will be paramount.
The Driver Learner Testing Centres (DLTC) constitutes one of the frontline services of the Department of Roads and Transport. We will continue to improve this service to the people in line with the Batho Pele principle. In July 2009, the department opened two new DLTCs in Xavier (South West of Booysens), a Grade C testing station which tests light motor vehicles and all grades of motor cycles; and Three Rivers Testing Centre (Vaal Region), which is a Grade A testing station handling heavy as well as light motor vehicles and all grades of motorcycles. These projects will be launched in October as part of the Public Transport Month. Plans are at an advanced stage to open another DLTC at Maponya Mall in Soweto as part of improving the function of our DLTCs. The Department of Roads and Transport is also engaged in a process for the following:
* Reviewing the Service Level Agreements (SLAs) with registering authorities
* Increase internal capacity for managing the SLA
* Introducing computerised driver, licensing testing
* Introducing computerised eye testing equipment and process
* Implementation of the best practice model
We have entered into an agreement with the South African Post Office (SAPO) to carry out and administer responsibilities of vehicle registration and licensing within a regulated framework. This is in recognition of the importance of cooperative and intergovernmental relations. The service is accessible in 74 of our post offices in townships and suburbs throughout the province.
The South African Post Office is better placed to enhance the department’s service delivery in this regard because of its location and interface with the population. We would like to leverage on this advantage because we believe that the post office has a unique environment that can ensure that clients receive an enhanced service. Throughout the process, the mandatory norms and standards that apply in all our service delivery points will be adhered to and we hope the post office will build on this in order to improve the service.
In celebrating transport month the department will focus on women and their role in the transport sector. This will be our contribution towards honouring uMama Albertina Sisulu. The department is still committed to eliminating emissions and controlling pollution in our environment.
One of the problems we have identified in the department is the inadequate and lack of compliance with the PFMA and treasury regulations. We have put in place mechanisms to ensure the proper financial management, adherence to the PFMA and treasury regulations and improvement on the management of supply chain mechanisms; this is done to ensure that we have an early warning system that detects fraudulent activities, corruption and maladministration.
In this financial year, we will review all our contracts with a view to cancelling all those that are not adding value to our core responsibilities and deferring those that are not urgent to the outer years of the MTEF. The contract review is undertaken as part of the cost-cutting measures introduced at provincial level. This will include a thorough review of the use of consultants to deliver services that are a core function of the department.
However, we are still committed to ensuring that 80 percent of our procurement goes to historically disadvantaged individuals (HDIs), 40 percent to SMMEs, 30 percent to women and 5 percent to people with disabilities and youth respectively. These are to be progressively increased over the next five years. We are further committed to ensuring broad based black economic empowerment and to monitor women, youth and people with disabilities in projects. We will further ensure that we emphasise 30% of labour content.
The new administration has put high priority on monitoring and evaluation. The institutionalisation of this is currently underway and evaluation systems are being established and aligned to provincial and national frameworks.
The Department of Roads and Transport through its political head will ensure that all priorities tabled before the honourable house will be implemented as planned, and at the same time adhere to the constitutional mandate and the spirit of freedom charter. The Premier has highlighted priorities which seek to better the lives of the Gauteng communities.
We will continue with transparent consultation with all stakeholders through mechanisms and systems that have agreed to during our election manifesto of Batho Pele.
Honourable Speaker, Colleagues in the Executive, indeed the department has committed to be on par with international trends and we would like to assure South Africans that a seamless transport system will be up and running during the FIFA 2010 World cup, and I believe as the Department, we did well during the Confederations Cup in terms of transportation and transfers, although there is room for improvement.
The department will continue with its partnership with communities to fight poverty, creation of decent jobs and betterment of our transport system.
Honourable Speaker, we appreciate the leadership of our portfolio committee members through its oversight exercise which will ensure accountability, our thanks to the Chairperson of the Committee, Honourable Eric Xayiya, for his leadership.
Many thanks to the Premier, Ms Nomvula Paula Mokonyane for her guidance and leadership in this process. Members of the Executive Council, thank you for your continuous support in the spirit of working together to ensure improved service delivery to our communities.
Many thanks to Head of Department Sibusiso Buthelezi for his stewardship; we also thank Acting HOD, Advocate Benedicta Monama and senior managers of the department for their dedication and professional contribution to our strategic objectives.
Our stakeholders and people of Gauteng, we are now on what the Premier mentioned, KUYASHESHWA with service delivery and your contribution is noted. This partnership should be sustained. Honourable Speaker, on behalf of the Gauteng people, we would like to formally table the budget speech for the 2009/10 financial year for consideration by the house.
I salute you all!
Issued by: Department of Roads and Transport, Gauteng Provincial Government
21 August 2009
Source: Department of Roads and Transport, Gauteng Provincial Government
(http://www.transportandpublicworks.gpg.gov.za)
