supports the Budget Vote Speech of the department in the National Council of
Provinces
31 May 2007
Honourable Chairperson,
Honourable Members,
Provincial MECs for Public Works
Public Works plays a critical role in service delivery by providing the
state with infrastructure necessary for social development and economic growth.
The department has continuously worked hard to improve its operations and
efficiency ensuring that their capital works and maintenance budgets are
properly invested in the areas where they will help increase output, improve
service delivery, reduce public infrastructure backlogs while promoting
economic growth particularly among the sections of our population still trapped
in the second economy.
In recognition, the department has, for two successive years, been accorded
unqualified audit reports. Strengthened by this experience, the department
welcomes the 2007 vote allocation of three billion, six hundred and ninety
three million, and one hundred and twenty thousand rand (R3 693 120 000).
Looking back, the department is heartened by the growing strength of
co-operative governance and intergovernmental co-operation including the
efforts of its public entities in upholding its delivery record from the
procurement and provision of pristine structures on behalf of our client
departments in their quest to improve their service delivery; to the creation
of community assets for social development and poverty alleviation under our
national public works programmes.
Consequently the budget includes allocations to the entities reporting to
Public Works in recognition of their role to support the thrust of public works
activity both nationally and at provincial level. Through the Intergovernmental
Forum of Public Works Ministers, we have also intensified co-operation to
further support the role of provincial Department Public Works in aligning
their budgets behind the collective focus to achieve maximum impact.
As one of its core functions, the national department regulates and
facilitates a development agenda for the construction and property sectors,
establishing national norms and standards that enable a common development
focus across the spheres of government. This intensified intergovernmental
co-operation is necessary to stimulate shared growth, skills development and
sustainable job creation.
After decades of declining infrastructure investment caused by the failing
apartheid economy, the construction industry is entering into a period of
unprecedented growth. Under the impact of increasing public infrastructure
investment, the industry is leading our accelerated and shared growth
initiative with growth rates above 10% per annum, creating about 800 000 jobs
and is set to create several hundred thousand more jobs by 2014.
The industry emerges off a low capacity and skills base and is challenged to
double its delivery output by 2014. Public Works therefore has a critical role
to play in overcoming a range of capacity constraints including those facing
all spheres of government in the planning, procuring and maintenance of
infrastructure. And significantly, we are beginning to make headways. Notably,
provincial public infrastructure spend improved last year by 29% under the
impact of multi-faceted interventions and partnerships promoted by the
department.
These interventions include the partnership between national and provincial
Public Works, National Treasury, the Construction Industry Development Board
(CIDB) and the Development Bank of Southern Africa in support of Government's
Infrastructure Delivery Improvement Programme (IDIP). A direct outcome of the
Growth and Development Summit, IDIP has built the co-ordination and capacity of
provincial departments of Education and Public Works to ensure that South
Africa's children are no longer schooling under trees. Encouraged by this
experience and responding to the President's call, this year we have taken the
next challenge to eradicate mud schools and other inadequate structures.
IDIP has further helped to refine the public sector procurement capacity as
indicated by procurement improvements where in some instances the time to award
contracts by all organs of state has been reduced from as much as six months,
to 60 days and less meaning that we are effectively beginning to unlock public
sector infrastructure delivery.
The success of IDIP as a best practice has given us encouragement to
approach even the work on our most prestigious clients including our executive
and the legislature, with confidence and professionalism. We have prepared
master plans for the refurbishment of both the Union Buildings and the
Brynterion Estate. Besides their day to day importance in government and
governance, the two properties are part of our heritage and like many state's
immoveable assets, they have been affected by the erratic maintenance patterns
in the past. These master plans seek to implement the recommendations contained
in the status quo report which among others put emphasis on the security
upgrades, water reticulation and upgrades of all electrical requirements in
these precincts.
In Cape Town, several ministerial residences and Parliamentary villages were
upgraded in the last year and many more will be identified for renovations in
line with the national Infrastructure Maintenance Strategy approved by Cabinet
last year, which encourages increased investment into the maintenance of our
infrastructure to augment their appreciative value, enhance their looks while
preserving their heritage status. To meet the accommodation needs of the
expanded Cabinet, we have begun to procure additional ministerial dwellings and
this project is proceeding.
In anticipation of the country hosting a successful Soccer World Cup
Tournament in 2010, the department is undertaking major construction
refurbishment projects at some key border posts on behalf of the Border Control
Operational Co-ordinating Committee (BCOCC). Overall 43 of the 55 land border
posts were placed under the programme for repairs and maintenance to ensure
that occupational, health and safety requirements are met meanwhile enabling
the user departments to deliver better services. Some of the major construction
upgrading include the work to create a one stop port of entry at Lebombo
towards Mozambique as well as the relocation of the Sani Pass Border Post, to
take it out of the World Heritage site as part of conservation. The work to
upgrade the Golela Border Post will be awarded later this year and the
department has already earmarked the project to promote the ethos of National
Youth Service.
We believe therefore that this budget is a catalyst in fulfilment of our
millennium obligations to 2014 and the advancement of our socio-economic
objectives, including accelerated infrastructure delivery for better
communities, for shared economic growth, job creation, skills, empowerment and
poverty reduction.
I thank you.
Issued by: Department of Public Works
31 May 2007
