Honourable Speaker and Deputy Speaker,
Honourable Premier, Mr DD Mabuza,
Honourable Members of the Executive Council,
Honourable Members of the Provincial Legislature,
Local Government and Traditional Leadership,
Business and Public Sector Representatives,
Distinguished guests,
Fellow Citizens.
Introduction
I am humbled to be given this opportunity by the ruling African National Congress (ANC) and the people of this province. Once again, the people of this province gave the ANC an overwhelming mandate to lead government following the recent general elections. Yes indeed they did exercise their democratic right as enshrined in the Constitution – more so by making the correct choice – voting the ANC.
The result of the fifth democratic elections has undoubtedly demonstrated the confidence people have in the African National Congress. The over 62% and more than 78% the Party garnered to continue governing the country and the province, respectively is something worth celebrating. What a feat for the movement – but most importantly to our trusting communities.
Madam Speaker, it is clear that the majority, particularly those who subscribe to the view of total transformation and people cantered development have a strong belief in Africa’s oldest liberation movement. This is a mandate that mainly requires the Party to deliver communities from all social disparities that continue to bedevil the county.
As the common adage goes, – ‘the people have spoken’ – it is back to basics and deliver on people’s expectations. As government, it then becomes imperative that we put clear programmes in place to bring about development into reality. With my maiden Policy and Budget Speech presentation I will outline all the plans to be rolled out by the department during the 2014/15 Financial Year.
Honourable Members, it must be noted that all plans and interventions for the nation’s development centre on the country’s guiding blue-print – the National Development Plan (NDP). The NDP offers a long-term perspective and aims to ensure that all South Africans attain a decent standard of living through the elimination of poverty and reduction of inequality.
Unlike some critiques and doubters, this is exactly what the ruling Party and this government are all about.
January 8th Statement
In its January 8th pronouncement, the Party made it clear that there will be a great focus on human settlements as another priority for government. The focus on this important portfolio is to rid the country of informal settlements and squalor.
In his message, President Jacob Zuma outlined as follows: “We will also continue to expand access to housing and basic services as part of our commitment to build integrated and sustainable human settlements.”
Invariably so as a department, we get direction from the declaration and ideals of the ruling Party.
Hon. Members, without being apologetic and indistinct, the department has to ensure that it adheres to the policies of the ruling party. To realise this undertaking, the department will continue its focus on a myriad of programmes that will translate the statement into action.
Even as we speak today, the Party still emphasises the need to unite people and create a decent life for all. Who wouldn’t want that – certainly NO one? Equally worth noting is that this department is well located to guarantee the grasp of these convictions?
Freedom Charter (1955)
Hon. Speaker, the vision of a united and non-sexist society is not just a yesterday thing, but well enunciated by the Freedom Charter (1955) in that:
“There shall be Houses, Security and Comfort! All people shall have the right to live where they choose, be decently housed, and bring up their families in comfort and security, unused housing space to be made available to the people......Slums shall be demolished, and new suburbs built where all have transport, roads, lighting, playing fields, crèches and social centres”
Distinguished guests, it the ideals of the Freedom Charter are further encapsulated in the Constitution of the Republic South Africa of 1996. In particular, Section 26 of the Act states (Bill of Rights) that:
“Everyone has the right to have access to adequate housing, the state must take reasonable legislative and other measures, within its available resources, to achieve the progressive realisation of this right, and no one may be evicted from their home, or have their home demolished, without an order of court made after considering all the relevant circumstances. No legislation may permit arbitrary evictions”.
Read together – one can draw a clear synergy and coherence between the two manuscripts. In our expedition to create integrated human settlements, the broadened approach compels the department to fulfil the declarations of the charter.
Honourable Members, our existence can only be justified by meeting the demands of communities on the ground. After all that is what we are about.
These ideals (Freedom Charter) bode well with the department’s broadened new mandate which focuses on Outcome 8 which is the creation of sustainable human settlements and improved quality of household life.
Its emphasis is on:
- Improving access to basic services,
- Provision of accommodation within the gap market,
- Upgrading of accommodation within informal settlements, and
- Securing of well-located public land for the creation of affordable settlements.
Honourable Members, the department is making tangible advances by continuing its quest to consolidate the migration from the narrow mandate of housing to a broadened mandate of integrated human settlements.
This – off course – requires us to brave all impediments, navigate the tumultuous seas and stormy winds.
State of the Province Address
Since 2009 the mandate of the department was broadened, which required the delivery of services in an integrated and sustainable manner.
Emphasis is on the creation of integrated settlements which comprises delivery of low-income houses, mixed housing typologies, and other required social and economic amenities such as community halls, health, trading and education facilities – notwithstanding the role to be played by other sectors.
The outcome-based approach emphasizes improved coordination of activities amongst all stakeholders. In his State of the Province Address, Premier Mabuza indicated that, economic growth and development requires a simultaneous re-assessment of the pressing issues associated with human settlements.
To this end, the Premier submits that, “We are ready to create Integrated Sustainable Human Settlements that are well-managed. This includes ensuring that economic growth and social development are in balance with the carrying capacity of the settlement’s natural systems”.
Taking a prompt at the Premier’s articulation and spirited adherence to key policy prescripts, this department seem poised at leading development in society.
Reflection on the 2013/14 financial year
During the 2013/14 financial year the department had to find stability both internally and externally following a series of disparities in the preceding years.
Beneficiary Management:
The whole process of beneficiary identification, management and ultimately allocation of houses continued to afflict the department to a great extent. To this end, the department has roped in Community Development Workers, community structures and deployed officials to be responsible for such an exercise in municipalities. A draft policy that prioritises the elderly, aged, and child headed households has been developed and is being used as houses are being allocated.
Incompetent Contractors:
Over the last few years, the delivery of shoddy work as a result of incompetent and unscrupulous service providers (contractors) remained a prickle in our flesh. The department developed and maintains a register for all defaulting service providers. Those who have been found in the wrong were not and will continue not be allocated work.
The department has also improved and strengthened performance and compliance unit within Supply Chain Management Directorate. Qualified engineers have been appointed at district level and Project Management Unit established. We have also improved on contract management and ongoing inspections are done in collaboration with municipalities and the National Housing Builder’s Registration Council (NHBRC).
Ageing Infrastructure and Municipal Development:
The delivery of projects and general development at municipalities is often impeded by ageing infrastructure or lack thereof in some instances. In mitigating these disparities, the department is continually undertaking planning with municipalities, other departments and traditional leadership. The advent of the Human Settlements Master Plan will bring credence to all planning and development issues with a long term goal as envisaged in the National Development Plan (Vision 2030).
Land Invasion:
The province has in the recent past experienced an unprecedented phenomenon of land grab and invasion at various areas, particularly at eMalahleni, Mbombela, Govan Mbeki and Thembisile Hani Local Municipalities. To this end, several workshops and engagements with municipalities, traditional leadership and other role players have been undertaken to deliberate on ways to tackle these ills. Government is exploiting existing legislations to intervene in such instances.
Title Deeds:
Property ownership continued to elude households as a result of houses being delivered at un-proclaimed land and lack of township registers in some areas.
Honourable Speaker, it gives me great joy that during the course of last financial year, the department went on an extensive campaign to give title deeds for full home ownership to nearly 7000 government’s low cost housing beneficiaries throughout the province.
Stakeholder Engagement:
Sequel to several reports of poor service delivery and disgruntlement by the general public, the department undertook a series of community engagement programmes. Our interaction through outreach campaigns, print and electronic media and general stakeholder management such as MUNIMECs restored a sense of connection between the department and its clients.
Through community events and projects visits, we were able to understand the people’s plight and subsequently managed to create practical interventions and improve in our approach to issues.
Govan Mbeki Awards:
The province was voted the best in the delivery of integrated human settlements in the country – thanks to the much talked about Klarinet Integrated Human Settlements Project at eMalahleni Local Municipality.
The multi-year project was named the country’s best integrated project at the last year’s Govan Mbeki Awards. It became evident that Mpumalanga is heeding the call to shift from housing to human settlements in line with the department’s redefined mandate.
Equally important was that Steve Tshwete Local Municipality was crowned the best accredited municipality in the country. Accreditation focuses on sound project, waiting list and beneficiary management.
General Service Delivery:
Honourable Members, despite pressing challenges the department continued on its delivery journey. During the 2013/14 period, the department recorded the following achievements:
- Delivered 7 550 low income houses,
- Installed internal services to 7 578 stands,
- Issued 6 871 Title Deeds to beneficiaries for property ownership, and
- Built 1 community hall, 1 child care centre, and 206 community residential units (CRUs).
Significant progress has also been recorded at the Klarinet and Siyathuthuka Sustainable Integrated Human Settlements which are at eMalahleni and Emakhazeni Local Municipalities, respectively.
In addition, new Integrated Human Settlements have also been commenced with at Standerton, Lekwa Local Municipality and Rockdale at Steve Tshwete Local Municipality. Two portions of land were purchased for the development of Integrated Sustainable Human Settlements at eMalahleni and Dipaleseng Local Municipalities.
Honourable Speaker, let me take this opportunity to once again commend the support and guidance given to the department by the Honourable Premier DD Mabuza and my colleagues in the Executive Council. His contribution by mobilising the business community and other interventions in the department is priceless - for that - we are highly indebted to his astuteness.
Equally commendable is the accomplishments made by my predecessor, Honourable MEC MA Gamede and those before him in the department. As the new political head on board, it is my commitment to dare not fail. As I will continue to implement policies of the African National Congress, my contribution to this portfolio will be the continuation of the good story being told by this government.
Outlook for the 2014/15 financial year
Distinguished Guests, now that a full account on the past journey has been delivered, what remains though are plans for the 2014/15 Financial Year. High on the agenda this year would be to get closer to the targets as set out in the department’s five year strategic plan. Amongst others, as outlined in Outcome 8, the department will focus on:
- Upgrading of informal settlements and creating habitable integrated and sustainable human settlements,
- Increasing access to basic services,
- Providing affordable rental accommodation and for the gap market within R3 501 and R15 000 bracket income earners; and
- Finalising planning and design for the development of integrated and sustainable human settlements on strategically located land.
The department will also contribute towards Outcome 7, on rural development and creating sustainable livelihoods through various programmes.
National Development Plan and Master Plan
During this financial year, projects will be informed by the provision of Human Settlements Master Plan. The Master Plan is in line with the country’s development blue-print - National Development Plan (NDP) – which guides future human settlements developments.
The NDP diagnosed the country’s apartheid spatial development geography which continued to settle people along racial lines. As a department, it remains our resolve to undermine the undemocratic prescripts and legislations that enveloped the country for a number of years.
Considered in-tandem with the NDP, the plan ought to assist the country to realize a new planning and developmental path. The strategy seeks to create humane conditions and environmentally sustainable – living and working environments as espoused by the Constitution of the Republic.
Focus on Fast Growing Towns / Development of Sustainable Human Settlements (BNG Projects)
In pursuing the noble dream of developing integrated human settlements and further pronounced by the Hon Premier (SoPA), the department intends to establish ten new integrated human settlements at fast growing towns where people will have access to all services and social amenities.
Commonly known as the Breaking New Ground Projects (BNG), the department will focus on the following areas:
- Mbombela Local Municipality: Three sites namely White River, Hiilsview and Tekwane South have been identified to start planning for BNG projects that will include bulk services, servicing of sites, and provision of social and economic facilities. At Tekwane North, a total of 500 sites will be serviced, provide assistance for bulk infrastructure and social amenities.
- eMalahleni Local Municipality: The mining town of eMalahleni (Witbank) will see the finalisation of layout plan for the development of Naaupoort Farm which is Phase 2 of Klarinet BNG. Additional 300 stands will be serviced and deliver same number of houses to finalise Phase 1 of the project. The department will also support the municipality with bulk water and sewer infrastructure.
- Steve Tshwete Local Municipality: The home of stainless steel which continues to be a shining example in the proactive planning and coordinated development.
To this end, this municipality will benefit handsomely as planning at two sites of Elandslaagte and Middleburg Extension 18 will start to implement BNG projects.
As part of the BNG project in Rockdale, the department will finalise the servicing of 1200 sites, construct 850 units, community hall and child care centre.
- Another economic active town is Secunda at Govan Mbeki Local Municipality. During this year we will focus on the finalisation of plans for the development of integrated human settlements at Evander and Zondagrontein.
Also worth indicating is the upgrading of informal settlements at eMbalenhle, Kinross, Bethal, Mzinoni and Leandra. The municipality will also be assisted with the provision of bulk sewer infrastructure.
- In Victor Khanye Local Municipality, a total of 800 low income houses, a community hall and a child care centre will be delivered to address challenges of informal settlements. Equally worth submitting is that the municipality will also get substantial assistance on bulk water and sewer infrastructure.
- Umjindi Local Municipality: Equally on the line to be developed is one site spreading on several farms at this municipality.
The department will finalise township establishment on an integrated human settlements project for this municipality, service sites, construct low income houses and also make a dent by providing units through our rural programmes. Most importantly, bulk water assistance will be provided.
Honourable Members, it must be said that these developments will focus on planning, sustainable use of environment and private public partnership.
Much as the implementation of the new BNG project continues, our delivery will consolidate projects that were initiated previously. During this financial year, we will continue the servicing and construction of 500 units at Standerton Extension 8 BNG project. Planning for the Rooikopen BNG Project at Sakhile Township at Lekwa Local Municipality will be undertaken.
Delivery will take into account upgrading of informal settlements, construction of a community hall, child care centre and tangible intervention on water challenges. Furthermore, it must be emphasised that these developments will also involve other departments and our delivery partners.
Distinguished Guests, the rolling-out of massive integrated sustainable human settlements – commonly referred to as BNGs - will be delivered in stages.
In practical terms, these projects will require extensive stakeholder involvement, enhanced project management and adequate resourcing. As a department which is at the coal face of service delivery, we remain steadfast in denting the province’s economic landscape and fighting inequality, unemployment, and poverty through our programmes at all corners of the province.
Bulk Water and Sanitation
Water provision and adequate sanitation remain a challenge in the country. As a province, we commit not to find ourselves wanting in this regard. To further put some impetus on this matter, the Hon Premier committed the province to prioritise the supply of Bulk Water Infrastructure and the acceleration of reticulation in all municipalities. Similarly, sanitation will be prioritised.
Honourable Members, to put this commitments into action, the department has budgeted an amount of R 292 million as support or assistance for Bulk Water, Sewer Infrastructure and Internal Reticulation in the following local municipalities:
- Bushbuckridge Local Municipality.
- Mbombela Local Municipality.
- Victor Khanye Local Municipality.
- Steve Tshwete Local Municipality
- eMalahleni Local Municipality
- Govan Mbeki Local Municipality.
- Umjindi Local Municipality.
Distinguished guests, the provision of bulk water and sanitation infrastructure will help the province alleviate the infrastructure pressures being experienced by the municipality. An urgent move to implement these projects will go a long way in assisting our communities in this regard – lest we expose our people to open and inhumane sanitation structures such as the ones we’ve recently seen in Cape Town.
General Programmes Delivery
Honourable Members, the establishment of integrated sustainable human settlements will not by any chance underscore the continuation of the delivery of houses with other programmes. Our province is rural in nature; hence a great need to still focus where people live and continue with the rural development through the People’s Housing Programme as part of the province’s Comprehensive Rural Development Prpgramme (CRDP).
In this regard, the department has taken a conscious decision to reduce the number of housing units in all CRDP municipalities to cater for fast growth points in line with the new mandate. According to the 2011 Census, the province has a huge housing backlog of over 197 000. This includes both formal and informal structures.
Given its rural nature, a dedicated approach is needed in addressing the requirements at communal areas. To this end, the upgrading of informal settlements remains paramount. Responding to the priority of eradicating informal settlements, the department has planned to deliver 2 425 units. In addition to this, 3 200 sites will be serviced. This year will also see the department delivering 820 top structures through the Integrated Residential Development Programme (IRDP).
In responding to the need for rental accommodation, the department will continue to support the four housing institutions, provide 178 rental stock units and deliver 177 community residential units at eMalahleni and Emakhazeni Local Municipalities. Much as we are now about the development of integrated and sustainable human settlements, we ought to be wary of the fact that rural communities of Mgobodzi, Seabe, Ntababomvu and Leroro, amongst others, still need houses.
The provision of houses with the – ‘In situ’approach – that is building where people stay, especially in communal land will continue. A total of 552 and 890 units will be delivered through Rural Housing and People’s Housing Process interventions, respectively.
We have also dedicated special budget to construct 205 housing units for military veterans receive houses in less than three years. As clearly directed by Minister Sisulu, the delivery of this intervention will be synergised with that of the Department of Military Veterans.
Having observed developments around rainy seasons; it is evident that the province is very prone to natural disasters such as floods. To ease the burden, a total of 698 houses will be delivered when the unfortunate happens. In summary, the department will deliver a total of 7 755 housing opportunities through the various programmes, establish ten new integrated sustainable human settlements and also assisting with the upgrade of bulk infrastructure as outlined above.
Cross-Cutting Issues
We will prioritise the issuing of 10 000 title deeds and ensure that townships are speedily formalised to afford total ownership to property by beneficiaries. In her address to Parliament last week, Minister Sisulu highlighted that:
“Our people have a right to their title deeds and the fact that they do not have them is a sad indictment, because this is supposed to be an entry into the economy for the poor”.
Honourable Speaker, women and the youth should and will be supported to be part of the construction value chain. Let me inform the house that 30 percent of our budget will go to women contractors, youth and people with disabilities. During the process of delivery a total of 10 000 job opportunities will be created over the next five years, with a spread of 2000 of such per annum.
Beyond the work given to contractors, developers, consultants, amongst others, - this will be our contribution towards impacting on issues of poverty, unemployment and economic development.
Administration
Honourable Members, I must acknowledge the difficulties that are affecting the construction industry, not only in the province, but throughout the country. It is disturbing that some service providers with alleged aiding from officials at times were cheating the system. The delivery of poorly built houses, inept project monitoring, existence of unfinished projects, pitiable beneficiary management, and collapsing structures bears testimony to this assertion.
In mitigating these predicaments, we have developed a beneficiary management policy and appointed credible contractors to assist in this regard. The department will move quickly in appointing senior managers – more so by taking into account issues of gender.
Finance
Honourable Members, we are from a financial year where there was significant delivery on our programmes. Members, budget alone cannot help us arrive at our envisaged destinantion, but good plans and proper execution can. the total budget allocation for 2014/15 has shown an increase of 2.4 percent when compared to the budget of the previous financial year (from R1.347 billion to R1.380 billion).
The R1.380 billion is made up of the equitable share of R233 million (17%) and the Human Settlements Development Grant of R1.146 billion (83%), which constitutes the bigger share of the department’s allocation. These figures seem huge, but with the provincial backlog, we have to be prudent and make every cent counts – where there will be value for money.
Budget Presentation 2014/15
Honourable Members, may I present the budget of R1.380 billion for the Department of Human Settlements (Vote 13) as outlined below:
|
PROGRAMME |
2014/15 R |
|
Administration |
123 million |
|
Housing Needs, Research and Planning |
53 million |
|
Housing Development and Implementation |
1 200 billion |
|
Housing Assets Management |
4 million |
|
TOTAL APPROPRIATION |
1 380 billion |
Conclusion
Let me once again value the prospect given to me by the ANC and mandate by the people of this province.
Allow me to appreciate the oversight role played by the Portfolio Committee on Human Settlements, Co-operative Governance and Traditional Affairs, especially its Chairperson, Hon. RS Mathabe and the guidance by the Budget and Finance Committee chaired by the Hon Premier, Mr DD Mabuza.
And finally, the leadership shown by the HOD, Mr SM Mtsweni, support by the Director General, Dr Nonhlanhla Mkhize, departmental management team, entire staff, including the MEC’s Support staff is commendable.
Honourable Speaker, members and guests this is the plan that I think will usher us to a new delivery trail for this financial year and beyond. We are, however, mindful of the fact that the road still to be navigated is not an easy one. Through these ideal plans, support from all stakeholders, and adequate allocated resources, I remain resolute that the future looks bright.
Let me also extend my heartfelt appreciation to my family for their overwhelming support and care.
Once again, I am grateful to be given such an invaluable opportunity.
“Together we are indeed moving South Africa forward”.
I thank you!
