of Water Affairs and Forestry, National Assembly, Cape Town
17 May 2007
Madam Speaker
Honourable Members
Representatives from our public entities
Representatives from civil society
Ladies and Gentlemen
1. Introduction
It is an honour for me to stand before you today to present my first budget
as the Minister of Water Affairs and Forestry. The 2007/08 budget of the
Department of Water Affairs and Forestry (DWAF) that I table before you today
is R5,3 million, a sizable budget that reflects the enormity of the amount of
work undertaken by DWAF.
Coming new into this portfolio I have learnt over the past year just how
important water, sanitation and forestry are to our society, and the
contribution these sectors play in economic development, social upliftment and
in our quality of life. By contrast we are well aware of the degradation that
results from lack of access to such basic services as clean water and adequate
sanitation.
2. Water and sanitation targets
The United Nations Human Development Index uses access to clean water as one
of the key indicators in determining the rankings on the development index and
determining levels of human poverty. Likewise the Millennium Development Goals
(MDGs) that South Africa has endorsed, places particular importance on reducing
by half the numbers of people without access to sanitation and clean water by
2015.
Since 1994 the government has recognised the need to address the imbalances
of the past and placed great emphasis on access to water and sanitation
services. Despite the massive successes we have had in the provision of water
and sanitation since 1994, this commitment has in no way lessened rather it has
intensified; and in his State of the Nation Address in February this year
President Mbeki mentioned on several occasions the need for our country to
expand access to these services. Because of the recognition of the importance
these basic services have on the lives of our people, particularly the poor, we
have committed ourselves to go beyond the MDGs and provide universal access to
water and sanitation.
This has seen a number of targets being set, which include:
1. Bucket eradication in the formal established settlements by December
2007. There are 106 800 buckets remaining in these formal established
settlements and after holding sanitation summits with the three provinces most
affected by buckets, I remain confident that we will achieve this target.
2. Eradication of the water and sanitation backlog in clinics by 2007 and in
schools by 2008/09. An agreement has been reached between the Department of
Health, Department of Education and National Treasury for my department to take
responsibility for ensuring the delivery of water and sanitation to the 2346
schools and 719 clinics that remain without adequate services. An amount of
R950 million has been allocated over a three-year period for this function.
3. Eradication of water supply backlog by 2008. With effective
implementation of the plans we have in place we should be able to reach the 14%
of our population that remain without access to clean water.
4. Eradication of the general sanitation backlog by 2010. Lack of adequate
sanitation still affects 27% of our population. A great deal of resources and
work will be required to ensure that we supply the estimated 3,2 million
toilets over the next four years.
In order to achieve these targets we have an accelerated service delivery
plan, which has been endorsed by Cabinet Lekgotla. This commitment is clearly
reflected in the DWAF budget, which shows an increased allocation of R400
million to water and sanitation this financial year and under the medium term
expenditure framework we see this allocation growing by a further R620 million
in the next financial year. The budget of R1,9 billion allocated in this
financial year just on water and sanitation services is in addition to the
substantial resources made available to municipalities through the Municipal
Infrastructure Grant (MIG) programme and will go a long way in ensuring that we
meet our targets.
The impact of our activities over the past financial year, in collaboration
with municipalities and other partners, saw a further 1,2 million people being
given access to basic water supply, 250 000 households receiving sanitation,
and 74 000 buckets being eradicated. With the increased budget allocation of
19,9% in this financial year, improved co-operation with municipalities and the
increased drive by my department, we should see even greater impact being made
during 2007/08.
Our free basic water policy continues to have a positive impact with an
estimated 76% of households benefiting there from. While some are clamouring
for an increase in the amount of free basic water allocated it is imperative
that we first address the 7,2 million people who remain without access to clean
water.
3. Water conservation and demand management
Honourable Members, with the rapid expansion of our economy there will
inevitably be a growth in the demand for water; and while we need to look at
new infrastructure for water, which we are doing, we need to be mindful that
our water resources are limited. We will therefore need to ensure improved
management of our water through effective water conservation and water demand
management measures. A large-scale programme of this nature may have the
potential to defer the construction of new dams and other infrastructure.
There are still unacceptably high levels of water losses, wastages and
inefficient use across our country. We have therefore embarked on a major
campaign this year to reduce these losses and have identified a number of
interventions that need to be made by all water users. Some of these
interventions include:
1. A National Water-wise Campaign
2. The investigation of the possible development of water conservation and
demand management regulations
3. Establishment of a National Water Use Efficiency Information System to
among others facilitate dialogue and interactive sharing of ideas and
approaches to improving the state of water use efficiency in our country
4. During this year we will also be investigating the possibility of
introducing a national fund to support municipalities and other qualifying
water users to implement water saving; which could be supplemented by an
incentive scheme.
5. As a means to encourage water saving and demand management by
municipalities and water management institutions, as well as encourage the
development of water saving products, I would like to announce that next year I
will be holding Ministerial Awards for those that have excelled in this
area.
As the Minister of Water Affairs and Forestry, I have, with the concurrence
of the Minister of Finance and in accordance with the National Water Act, 1998,
set a new pricing strategy for charges for water use, and this came into effect
on 1 April 2007. The new pricing strategy makes provision for, amongst other
things, the establishment of a waste discharge charge system that is based on
"a polluter pays" principle. This system aims to promote the efficient use of
water by recovering costs associated with mitigating resource quality impacts
of waste discharge on our water resources.
3.1 Working for Water (WfW)
A major intervention by DWAF in collaboration with other departments to
address the challenge of water scarcity is the Working for Water Programme.
Under this Expanded Public Works Programme we use community labour to remove
alien invasive species that consume our water resources and cause damage to our
environment.
Since its establishment Working for Water has made significant strides in
poverty eradication, skills development and skills transfer, gender equality
and is instrumental in support to people in the Second Economy. When Julia
Mpebe from Mooiplaas informal settlement near Pretoria, joined Working for
Water as a general worker in 2000, she knew little about invasive alien plants.
A lot has changed since then; Mpebe is now a WfW contractor with her own team.
"When WfW came to Mooiplaas and recruited people, I knew nothing about invasive
alien plants. Today, when I'm driving and I see invasives, I just want to stop
and get rid of these plants because they rob our land of its agricultural
productivity and steal our water," she said.
In 2006/07 the WfW programme treated more than 790 000 hectares of invasive
alien plants creating more than 1,8 million days of employment (by over 29 000
of people) and in this financial year with a budget of R387 million we look
forward to this programme continuing its excellent work. There are also
possibilities of expanding this initiative under the Jobs for Growth programme,
which will achieve the dual objective of creating employment while also
contributing to improved water flows, rehabilitating our environment, and
opening up agricultural land for more productive uses.
Part of the Working for Water programme is Operation Vuselela, where DWAF
has partnered with the Department of Defence to clear invasive species from
more than 5 500 hectares of Defence Force land, and providing 44 000 days of
employment to military veterans.
4. Drinking water quality
A number of challenges with regard to drinking water quality were identified
by municipalities in 2005/06. In response, my department in consultation with
Local Government has made interventions where failures were identified and this
contributed significantly to the improved management of drinking water quality.
We have also been working with the Department of Health on the collection and
testing of drinking water quality.
As sector leader and regulator, my department has proactive initiatives to
ensure that the importance of drinking water quality management is well
understood, and the overall quality of drinking water is improved. One of these
initiatives is the introduction of the electronic Water Quality Management
System to Water Services Authorities as you would have seen at our exhibition
outside. To date more than a 100 Water Services Authorities are using this
system to good effect and enables them to ensure effective management of
drinking water quality. Continuous update and management of these information
systems will see that both municipalities and my Department fulfil their
respective roles more effectively in future. Water Boards are also assisting
municipalities in ensuring drinking water quality standards remain high.
One of the main priorities for the sector is continue assuring the public
and give them confidence in the quality of South African tap water as part of
our commitment to ensure a successful 2010 Soccer World Cup.
During this financial year my Department will continue to create awareness
and to educate on the importance of water quality, and we will continue to
focus on educating the South African community and decision makers to
understand our rights and our responsibilities, and why the quality of drinking
water cannot be compromised. We are currently revising the Framework for
Drinking Water Quality Management.
5. Bulk water infrastructure
One of the biggest challenges faced by municipalities is the lack of bulk
water infrastructure and wastewater treatment capacity. This lack of
infrastructure is becoming particularly acute as we roll out water and
sanitation services. The optimum solution is often regional works that could
supply a number of municipalities. This solution requires the municipalities to
co-operatively plan, fund and operate the works. My department has thus decided
to establish a special programme for water services bulk infrastructure. This
programme will come into operation during this financial year and a grant
amount of R1.4 billion has been allocated over the next three years.
6. National Water Resources Infrastructure
In addition to the water services bulk infrastructure programme a
significant part of our budget increase over the next three years is to cater
for the construction of new dams and pipelines. This budget will also cater for
the maintenance of bulk raw water infrastructure, which includes dam safety,
weirs, canals, tunnels, pump stations, siphons, concrete pipelines, steel
pipes, and related buildings. My department has completed a preliminary
assessment of refurbishment requirements which is estimated at R3,1 billion.
While R1,5 billion has been secured we will continue to investigate various
avenues for funding the R1,6 billion shortfall.
One of the most exciting developments this year is the commencement of
construction of the De Hoop Dam in Limpopo, which was launched on Monday 19th
March with a sod turning ceremony. This dam will not only bring much needed
water to the Sekhukhune community of about 800 000 people but will also bring
economic opportunities and unlock the mining potential in the region. The total
investment required for the construction of the dam and associated
infrastructure is R5,1 billion; an amount of approximately R2,2 billion has
been allocated to the De Hoop Dam and social components of the project over the
medium term expenditure framework; and the balance will be financed off
budget.
It is expected that infrastructure developments of this nature will in
future be implemented through the envisaged National Water Resources
Infrastructure Agency, and during the course of this year we will be bringing
legislation to Parliament for the creation of this agency. The work of the
agency will also bring together the finance, construction and maintenance of
bulk raw water infrastructure under one agency reporting to the Minister of
Water Affairs and Forestry.
7. Forestry and Broad-Based Black Economic Empowerment (BBBEE) Charter
Honourable Members, we are now developing a new vision for the forestry
sector, and raising the profile of forestry as an important contributor towards
economic growth and as an AsgiSA programme. To give effect to this increased
importance of forestry we have made changes to the structure of the department
by consolidating the different forestry units into a single branch in the
department and the appointment of a Deputy Director General (DDG) to lead the
branch.
This vision and new structure will see the department playing a more active
and leadership role in supporting and facilitating the growth of commercial
forestry operations in both the private sector and state-owned operations.
Alongside our efforts to support the growth of this sector we are also working
with industry players to transform the sector, and the Forestry Broad-Based BEE
Charter will be an important vehicle for this transformation, as reported in
our budget speech last year.
We are now in a position to launch the charter at a Forestry Indaba as it
has been aligned with the BEE Codes of Good Practice. I would like to announce
that this Indaba will be held on Monday, 25 June 2007.
The charter is the most significant achievement in forestry as it
incorporates a number of the objectives of our country, and it is both a plan
for transformation as well as growth and development for the sector. Once
implemented we shall therefore not only see increased numbers of Historically
Disadvantaged Individuals and women participating in the forestry sector but
also an increase in the forestry resource base and enterprise development. A
budget of R40 million has been set aside to implement the charter, which
constitutes 8,7% of the forestry budget of R460 million. These developments
will have a favourable impact on job creation and economic growth.
Part of Accelerated and Shared Growth Initiative for South Africa (AsgiSA)
is to unlock the binding constraints that inhibit growth in the economy; and it
has been identified that one such binding constraint is the slow pace at which
water licences for new forests are issued. Because the issuing of these
licences involves several government departments and other role-players it is
necessary for DWAF as sector leader to drive these changes so that we can
achieve our target of 100 000ha of afforestation over the next 10 years. What
is important is that we involve rural communities in this afforestation and
thereby contribute to supporting the Second Economy, which will need to be done
in partnership with provincial government and municipal Local Economic
Development (LED) programmes. One of our priorities for this year is to work
with the Department of Land Affairs to resolve the outstanding land reform
beneficiaries so that we can unlock some of the forestry potential that exists
in our rural areas.
An important initiative for the forestry branch in the coming year is to
drive greening programmes. These greening programmes will now take on an added
impetus that will see this year's Arbour Week campaign launching a programme to
plant at least a million trees per year. This programme will include the
planting of fruit trees as a means to support sustainable livelihoods,
particularly in rural areas. Members should have received their saplings
today.
Fire prevention forms an important part of the work of DWAF; to this effect
the Department is encouraging municipalities and landowners to form fire
protection associations. We are also running the Working on Fire programme in
collaboration with Department of Provincial and Local Housing (DPLG), which has
created 300 000 days of employment (1 586 people) - a budget of R56 million has
been set aside for this programme.
8. International co-operation
Honourable Members, the importance of co-operation with our neighbours when
in comes to water and forestry cannot be overemphasised. Consequently my
Department has established very close relations with our neighbouring states on
trans-boundary water and forestry matters, including the issue of cross border
fires. We have already established a number of watercourse commissions to
manage rivers we share with our neighbouring countries. The strengthening of
these commissions and our relations with our neighbouring states is the top
priority for my department.
We also participate and support the activities of the African Ministers'
Council on Water (AMCOW), as well as SADC structures. In line with the
objectives of New Partnership for Africa's Development (Nepad), South Africa is
keen to share its experiences and skills with other African countries. We are
currently engaging with the Democratic Republic of Congo with a view to
supporting capacity building of water officials in the Katanga Province.
In line with the Government's Medium Term Strategic Objective of
contributing, not only towards a better Africa, but also towards a better world
we will continue with our international engagements in water and forestry
during this and the coming years. At the Stockholm Water Symposium held in
Sweden on 21 August 2006, I used the occasion of my speech to share with the
peoples of the world the SADC and South African experiences in regard to the
benefits of sharing in our trans-boundary waters, pointing to our flagship
Lesotho Highlands Water Project as an example.
9. Internal
Madam Speaker, a significant portion of my department's budget goes towards
administration. With a department of over 16 000 employees the allocation of
R500 million for administration can be put into context. The large size of the
department requires extensive Human Resources support and administrative
capacity.
My department is also busy developing regulatory and institutional reform
strategies in order to strengthen our regulatory and oversight role as sector
leader, while a governance framework for water management institutions is being
established to ensure that strategies for these institutions are aligned with
my Department's strategic objectives and ensure that our public entities fulfil
the mandate for which they were established whilst also maintaining high
standards of corporate governance.
DWAF like other organisations that require scientists, engineers and
technicians is faced with a general skills shortage as these professions become
more marketable with the growth in our economy. To proactively deal with this
challenge my Department has a number of strategies, one of which is the
establishment of a learning academy. This academy will work closely with
academic institutions, professional bodies, and other departments with a view
to attracting students to offer them experiential training and to contribute to
the skills base in the water and forestry sectors.
10. Conclusion
To conclude, honourable members, through the work of my department we look
forward to supporting our national efforts to alleviate poverty and create
jobs. Water and forestry are also critical sectors in contributing to our
target of 6% economic growth by 2010.
I would like to thank my Director-General, Jabu Sindane and his management
team together will all other staff in the department for their support, and for
welcoming me to the department. I would like to acknowledge their hard work and
commitment to achieve our objectives and contribute to making a better life for
our people. I would like to acknowledge the role of Portfolio Committee on
Water Affairs and Forestry for their oversight work.
Madam Speaker, Honourable Members, I request the House to approve my
department's budget of R5,3 billion.
I thank you.
Issued by: Department of Water Affairs and Forestry
17 May 2007
