ceremony of houses at the Olievenhoutbosch Housing Project, Olievenhoutbosch,
Centurion
30 March 2007
Master of Ceremonies
Member of the Executive Council for Gauteng, Nomvula Mokonyane
The Executive Mayor of Tshwane, Dr Gwen Ramokgopa
Chief Executive Officer of ABSA, Dr Steve Booysen
Invited guests
Comrades
Friends
Ladies and gentlemen:
A year ago we came together at this same place to launch this project. The
place was a barren dusty place held together by nothing more than our dreams
and our mutual commitment to turn it into a beacon of hope for the future.
Today we record the significant stride with 250 houses.
We noted then as we note today that the significance of the project lies in
the fact it reconstructs and consummates a necessary relationship that for
purposes of a better life for all would have to exist between government and
the financial institutions. Of equal importance is the fact that it places
banks in the role where they are no longer seen to be discriminatory against
anyone, wherever they live or whatever the colour of their skin.
Given the circumstance of the majority of our people that as we know arise
from the legacy of apartheid, it would be a crime to deny them the opportunity
to have secure and decent homes. For this would mean that not only will the
legacy of our past be made indelible in the landscapes of our urban and rural
spaces but also that the past itself continues under new conditions.
What the history of our country tells us and confirms is that the
homelessness of our people is not a natural development. It is the result of
decisions and actions that were taken by human beings deliberately to
disadvantage others. By the same token, its defeat will be the result of
decisions and actions we take deliberately and collectively to advantage
everyone but particularly to remove the disadvantages from most.
The growth of informal settlements necessitates that we are seen to be at
the forefront of initiatives aimed at tackling the challenge. This is essential
not only to prevent failure to provide adequate shelter and housing but also to
indicate interest in putting the country on a sustainable growth path and as
this project demonstrates, that can only be done through the route of creating
sustainable communities. No other period in our history has burdened us this
much with this responsibility. In this regard we have been called to provide
not only leadership but also good vision that is biased towards the poor,
whether we are in the public or the private sector.
I am glad that ABSA took these necessary decisions and actions with us as
government when we called. Being encouraged therefore by the positive response
we have received as government from ABSA, affirming that the legacy of imposed
poverty must firmly be eradicated and speedily so, I am in a position to
commend them for the steps taken thus far. When he spoke here last year, Steve
Booysen indicated that this would only be the first of a series of projects his
bank will be jointly undertaking with government in the form of a public
private partnership. He indicated that a total investment of R12 billion is
being targeted by ABSA by 2008.
In terms of the agreement for this public-private-partnership, ABSA
undertook to make land available for the development of the project and develop
the bonded houses whilst the City of Tshwane was to develop the low-cost
houses. As national government we committed ourselves to do all that was
necessary to expedite the project and to facilitate coordination between the
respective government departments. Happily, this relationship has been a
productive one. The project therefore, in accordance with the Breaking New
Ground (BNG) Plan addresses integrated development. It is a mixed housing
project. Its implementation is to achieve 70 percent black ownership and have
30 percent female participation. Also, it provides opportunities for Small
Medium and Micro Enterprises (SMME) participating in the areas of supply,
manufacturing, contractors, sub-contractors, as well as services of skilled and
unskilled labour.
The Breaking New Ground Plan is a holistic plan aimed at improving overall
housing delivery through the acknowledgement of the gaps that existed up to
2004 at all levels of government and some of the results of the BNG can be seen
in the trends in housing delivery that include government working with the
private sector towards the development of inclusive housing developments.
Today, the typical BNG starter house will have a minimum of two bedrooms, a
living area and inside bathroom. In this we believe our people will be provided
with a decent starter house which they can then enhance in time as and when
their finances allow it. I am absolutely delighted that in the houses we have
today, we can show that quality is attainable.
The point has been made often enough that both the demand for housing and
the housing market has changed but that unfortunately, the benefits of a
buoyant higher end property market have not been felt by the poor. If wealth
creation is to be stimulated amongst the current beneficiaries of the
programme, then the housing asset needs to have functional value, a usable
physical asset to create social and human capital and an exchange value, and
ability to create financial capital hence significant public investment and
substantial private sector collaboration are called for.
We are making significant strides in our work, not only of providing houses
but of convincing South Africans of the importance of housing as an essential
element in our development. Earlier this month it was with extreme pride that I
listened to MEC for Finance in the Western Cape when she said in her budget
speech, "Housing is ranked as the most important infrastructure priority, above
roads, community facilities, basic services and other social services
infrastructure." That was music to my ears. If we could get all those who
control our finances to think this way, our job would be done and may I hasten
to add, when I say those who control our finances, I include the banks.
In my relationship with the banks, I had begun to believe that men are
bigger on promises than they are on commitment. That this is generally true
cannot be questioned but I have allowed myself the occasional space to be
proved wrong, Steven and his team have utilised that space to outdo themselves.
I am promised that when the project is complete next year at about this time,
there will be 5 480 units and will be the perfect showpiece of our new
policy.
As before therefore I would like to thank the bank and its staff that
through dedication continues to show us that our dreams collectively are
possible. I have also noted the contribution to the project of Gauteng and the
Tshwane Municipality. When we were here last year, the City of Tshwane was
represented by Father Smangaliso Mkhatshwa, who was Mayor at the time. You will
note that even though the chairs on the deck have changed, the Municipality
continues to be represented at its highest level through the new Mayor, Dr Gwen
Ramokgopa. This all goes to demonstrate the seriousness with which government
views the involvement of all its three layers in integrated development and
planning that would enhance relations with the private sector.
To the beneficiaries, may I congratulate you all and thank you for your
perseverance and understanding. I know we have had challenging times and we
still have challenging times ahead.
I thank you very much.
Issued by: Department of Housing
30 March 2007
