Honourable Speaker and Deputy Speaker
Honourable Premeir, Ms Noxolo Kiviet
My colleagues in the Executive Council
Honourable members of the Provincial Legislature
Honourable Executive Mayors and Mayors
Iikumkani neenkosi mazithambe izicaka zizolile!
Our social partners
Senior officials in government and the private sector
Distinguished guests
Comrades and friends
Ladies and gentlemen
1. Introduction
I am indeed honoured and humbled to rise today to table the 2009/10 Policy and Budget Speech for the Department of Human Settlements in the province, as we enter the fourth term of a democratically elected government in our country.
In this Policy and Budget Speech, Honourable Speaker, we rise under a new name, as a Department of Human Settlements, thereby giving effect to the policy pronouncement made by the State President recently for the renaming of the former Department of Housing, nationally, as part of the whole effort of reconfiguring and refocusing the state machinery for efficient and effective service delivery. Of course, the necessary legal processes are being pursued to formalise the name change.
2. Integrated and sustainable human settlements
What is in a name? So people shall always ask, Honourable Speaker. For us, Honourable Speaker, this rebirth represents, at the highest policymaking level, a conscious effort to redefine that which we exist for and thus a renewed vision that our stakeholders and service delivery partners should always strive to assist us in achieving.
Honourable Speaker, as President Jacob Zuma, pointed out during the State of the Nation Address, on 3 June 2009, ‘Human settlements development’ is a responsibility quite bigger than ‘Housing the nation.
Through this pronouncement, we are encouraged by the resounding clarity in the scope of our mandate, to be the one that encompasses the entire residential housing market, and whose focus in not just about housing provision but working towards integrating all the relevant services at strategic, development and project planning level to ensure the achievement of sustainable livelihoods in both urban and rural areas.
Honourable Speaker, the vision for achieving integrated and sustainable human settlements in the country ushered in with the democratically elected government in 1994, through the White Paper on Housing1, which states that:
“Government strives for the establishment of viable, socially and economically integrated communities, situated in areas allowing convenient access to economic opportunities as well as health, education and social amenities, within which all South Africa’s people have access, on a progressive basis, to:
- a permanent residential structure, with secure tenure, ensuring privacy and providing adequate protection against the elements, and
- potable water, adequate sanitary facilities including waste disposal and domestic electricity supply.”
Honourable Speaker, the Breaking New Ground Comprehensive Plan that was adopted by Cabinet in 2004 further outlines some of the measures that are employed and outcomes to be achieved towards the realisation of a broad vision of integrated and sustainable human settlements.
Having said that, Honourable Speaker, it has since dawned to us as a department in the province, and nationally, that the achievement of sustainable communities will not see light when housing delivery continues to be isolated from other assets and services that are key to sustain the livelihoods of communities, be they urban, farm or rural.
We firmly believe that single-sector approaches to development interventions should depart the development planning, programme management and project implementation space, giving way to more multi-sectoral approaches wherein all sectors involved seek to achieve the same and prior defined outcomes on the ground.
Honourable Speaker, this requires a paradigmatic shift in thinking and planning within, between and across sector departments, public entities and our social partners. It has to dawn to all that the provision of shelter alone, for instance, within a municipality, ward, village and household will not make any significant impact on poverty.
The same applies to provision of telecommunication facilities or electricity or water, as long as these services reach a community and household single-handedly and there is a significant time lag before the next service arrives, people shall remain in a precarious state of poverty and struggle for survival.
Effective co-ordination, horizontally and vertically is thus required. As Rossiter (2000)2 puts it: “Integration relates to a multi-sectoral approach that is coordinated with all the different sectors operating in concert so that results in one are reinforced by achievements in another.”
Honourable Speaker, we will return to this topic later on with regards to what measures are we employing to achieve sustainable human settlements ‘in concert’ with the different sectors.
At this point let me divert to the presentation of our service delivery achievements during 2008/09 against planned targets.
3. Achievements on the 2008/09 housing acceleration plan
Honourable Speaker, when we delivered the Policy and Budget Speech in 2008/09 our department had just been delineated from the Local Government and Traditional Affairs portfolio. In tabling last year’s Policy and Budget Speech, we boldly set targets for a department that was under construction out of our resolve to ‘hit the ground running.’
We made an undertaking then, which still stands true even today, where we committed ourselves to ensuring that we accelerate housing delivery and improve the quality of the housing product.
We committed to spend the total amount of the allocated housing conditional grant. We made such commitments against a myriad of constraints and challenges that were confronting the department at the coalface of delivery. These are the same challenges that necessitated the delineation of the old Department of Housing Local Government and Traditional Affairs.
Honourable Speaker, I am in deed glad to announce that despite the challenges that we have continued to enunciate in this platform, we have, during 2008/09, seen to a marked improvement in housing delivery in the province. In comparison to 2007/08 financial year performance, we have moved from the annual total housing output of 12 684 in 2007/08 to 18 424 in 2008/09, thereby exceeding the target of 15 000 houses set out in our Housing Delivery Acceleration Plan by 3 424.
Honourable Speaker, let me proceed to outline the service delivery achievements of the department during 2008/09, programme by programme:
- Office of the Head of Department
- Provided strategic leadership and management in the delivery of 18 424 completed housing units and spending R981 million (100%) of the Conditional Grant allocation
- Establishment of a functional Housing MuniMec and its technical wing, namely, Technical MuniMec which are political and administrative intergovernmental forums that bring together the MEC for Housing, Mayors and their administrative officials Corporate Services
- Delineation of the Department of Housing from Local Government and Traditional Affairs and the development and implementation of the new Housing organogram.
- Populating the department by filling all vacant funded posts (the department commenced its operations with 198 employees as at 1 April 2008, but has increased its personnel to 424 employees).
- HR Plan developed and implemented
- Competency assessments conducted with 36 out of the 39 Senior Management
- Population of District Offices with 28 Control Works Inspectors, five Town Planners, five Architects, five Land Surveyors and 34 Project Managers
- 60 day recruitment and selection turnaround time
- Establishment of a Wellness Unit
- ICT infrastructure installed at the new head office and central district. This has significantly improved internal and external connectivity including sharing of information through our intranet and website. The VoIP and virtualisation solution installed will also assist the department to realise savings on telephone costs due to its integration of telephone service to ICT network.
- Finance Management
- With the limited capacity, the department has successfully spend the entire allocated budget after National Department of Housing’s decision to withhold R270 million. The department is however able to substantiate that it was in a position to spend it entire Conditional Grant Allocation of R1,2 billion. As a result, processed payments were deferred to 2009/10 FY for payment.
- We also managed to clear majority of long outstanding debts and also to avoid any over/under spending of the allocated budget.
- According to Treasury Statistics, the Department of Housing is reputed to be one of the best departments for payment of suppliers on time.
- Supply Chain Management
- Supply Chain function for the department taken over from Local Government
- Procurement Policy developed to streamline and fast track appointment of contractors, which was duly recommended by Provincial Treasury.
- Contractor Supplier database was vetted and screened during the takeover from Local Government database.
- Since the time of delineation from Local Government in July 2008, department has adjudicated and approved in excess of 40 projects with a value of R500 million
- Draft Asset Register was prepared, that complies with National Treasury Guidelines.
- Strategic Management, Corporate
- Communication and Information Management
- Draft three of the Strategic and Annual Performance Plan submitted to Treasury within the reporting timeframe. The draft was a culmination of a consultative process with internal stakeholders at provincial and district level
- Departmental Non-Financial performance progress reports compiled and submitted to internal and external stakeholders
- Departmental quarterly review sessions was held
- Integrated Communication and Marketing Strategy developed and implemented
- Departmental Branding Strategy developed and implemented
- Legal Advisory Services and Con tracts Management Services
- Reduction in the number of litigation cases from 31 cases to eight cases.
- A database of all litigation and arbitration files was opened.
- A register of pending and closed files, all legal fees claimed and paid by the department, judgments for and against the department were created both manually and electronically.
- Recovery of R 1 000 000,00 legal fees arising from litigation
- Default Judgement and contempt of court free department
- Development and implementation of a Contract Management Strategy
- Manual Contracts Database established with 1 320 contacts managed
3.2 Programme 2: Housing planning and research
- 36 municipalities have been supported, hands-on; to develop Housing Chapters of their IDPs that analyse the housing environment, determine strategies and priorities per municipality.
Municipal councils adopted the Housing Chapters for incorporation into IDPs and be reviewed along IDP reviews later on;
- A provincial Multi Year Housing Development Plan: 2009-2014 is in place and provides a basis for integration with services of sector departments;
- A Housing Conditional Grant Business Plan: 2009-2010 is in place and provides a basis for subsidy allocation to prioritised housing needs and based on a state of readiness assessment of projects in various districts;
- An electronic and web-based databank of provincial housing policies and manual is in place.
- A province-wide rural housing demand and supply verification study that includes farmland areas was completed;
- A verification study of the Ciskei National Independence Party (CNIP) victims of house dispossessions was completed as a support to the Buffalo City Municipality which is confronted with this kind of demand;
- A provincial Multi Year Sustainable Human Settlements Research Agenda was developed with the support of the National Research Foundation and consulted with various stakeholders and strategic partners, locally and internationally;
- A socio-economic survey of Wards 17 and 26 in Mbashe Municipality, Elliotdale was completed to inform revitalisation of the Elliotdale Breaking New Ground Rural Pilot Project;
- A Rapid Assessment of the Duncan Village Breaking New Ground Pilot Project was completed as a basis for the revitalisation of the Duncan Village pilot;
- A Rapid Survey of the Areas Prone to Disasters in the province was conducted with intention to inform, in the interim, the Emergency Housing Assistance Programme;
- Various alternative housing technologies were explored and some tested in districts e.g. Mono Global Solution, Stabilised Compressed Earth Brick etc.
- The Buffalo City Municipality was supported to realise Level One Accreditation;
- The Housing Consumer Education Programme was enhanced through recruiting, training and attaching 40 (forty) Unemployed Graduates to municipalities and districts to support project implementation;
- 15 (fifteen) Emerging Contractors were taken through a Short Learning Construction and Financial Management programme struck with the Nelson Mandela Metropolitan University.
Thereafter, these contractors were placed in small housing construction projects as part of practical learning:
- 20 officials performing housing functions within municipalities were taken through a Housing and Policy Management Short Learning Programme struck with the Nelson Mandela Metropolitan University as part of hands-on support to municipalities preparing them for effective management of housing programmes.
- 23 officials from the two accreditation pilots in the province (BCM, NMBMM) were taken through a Housing Subsidy System course paving way for decentralisation of HSS to ensure speedy updating of information and financial management and service delivery reporting agility.
- Facilitation and Administration
- A Provincial Military Veterans Summit was held in October 2008 in East London,
- It was the first summit of its kind in the country. Concrete resolutions came out of the summit which resulted in a more structured approach to the Military Veterans housing assistance programme. The Eastern Cape province then hosted the National Military Veterans Summit
- 557 applications were received and 219 approved
- National Minister of Housing launched 2000 best practice quality houses at Zanemvula BNG project. Six BNG projects are currently underway.
- 11929 out of 10717 (111%) subsidies were approved for qualifying beneficiaries. This was achieved despite the limited internal human resource capacity as the verification of qualifying beneficiaries involves a lengthy process. These categories above are mostly individual and project linked subsidies and exclude subsidies that are approved for Social Housing that are managed under programme four.
- 3 Hostels upgraded for HIV and AIDS orphans
- 1 000 temporary shelters were manufactured and 787 erected
- 359 Emerging Contractors are registered on the database
- Programme 3.1: Project management and quality assurance
- 14 827 project linked units completed and 6421 sites serviced that can be prepared for top structures
- 79 unemployed graduates placed in the built environment, target exceeded by 29
- 33 new projects (Batch 3) initiated in Chris Hani due to approved state of readiness reports against a target of 20. In total 47 were approved.
- Project implementation manual developed and implemented
- Quality assurance tools developed and implemented
- 320 temporary structures assessed in areas affected by natural disasters
- Professional Resource Teams appointed per region to provide support with project planning and implementation
- Service Level Agreements in place for all new projects
- 76 projects awarded to emerging contractors were implemented in Metro, BCM, Amatole
- 8 848 jobs created (4 860 men; 661 women; 3 300 youth; 27 disabled)
- Two sanitation and alternative construction technology projects were initiated in OR Tambo and central region.
3.4 Programme 4: Housing assets management
- R2 065 242 (83%) revenue has been collected against set target of R2 500 000 despite the declining economic climate and high unemployment rate.
- An audit of all housing assets resulting in an Asset Register that is PFMA/Treasury regulations compliant.
- Seven Deeds of sale have been completed for the acquisition of land parcels to the value of R47,6 million. Three land parcel are earmarked for BNG Projects which will yield approximately 3 000 housing units. The remaining will be spread amongst RDP (low cost housing) and social rental units. These are further expected to produce approximately 800 housing units
- 250 top structures on the Emerald Sky project (Medium Density Housing Development, a four to five storey building) is underway in East London.
Honourable Speaker, informed by the lessons learnt in the previous financial year and taking into account the national policy priorities as set out by the fourth term of government, allow me now to proceed to our Housing Delivery Acceleration Plan for 2009/10.
4. Budget outlook and housing delivery plan for 2009/10
Honourable Speaker, as a department on this occasion we acknowledge that we operate under severe time constraints. For our peoples’ patience is becoming exhausted given that what we are to offer today has been long awaited for since 1955 when our people declared their vision of sustainable human settlements.
As such we fully commit to our President assertion that: “For as long as there are communities without clean water, decent shelter or proper sanitation. For as long as there are rural dwellers that are unable to make a decent living from the land on which they live. We shall not rest, and we dare not falter in our drive3.”
Honourable Speaker, it was 55 years ago that our people declared that a better life for them would be attained a day when every citizen of our country is free to make a choice of where to live.
A vision that, every individual shall be decently housed, and enabled to raise their family in conditions of comfort and security. We are deeply touched then, despite the continued overwhelming support our people have shown, that we still have not sufficiently responded to this vision. Hence informed by this, we commit that ours cannot, therefore be business as usual.
As much as our sleeves have been folded too, for the work so enormous to dispose, we wish to remind ourselves here, Honourable members that the tasks ahead of us are to be carried in conditions that continue to set new hurdles.
The prevailing global economic crisis has direct 3 State of the Nation Address by President JG Zuma, Republic of South Africa, 2009 bearing to what we intend to achieve. For these conditions threatens to create situations that may expand the demand base of our services beyond that we have planned for. Hence, in advance, we are making this humble appeal to all our social partners that we act in unison for the task before us requires such.
Honourable Speaker, we also rise today to acknowledge with sincere thanks, the support we continue to receive from our National Department. We believe since their intervention, as the department, we have risen to the occasion posed by the Human Settlement challenges, and that as they will be leaving we would have harnessed that which had made us not to equal the challenge and that we shall be at the requisite capacity to the execute our mandate.
Honourable Speaker, I inherit a department that to my knowledge has not seen much of elements of acts of corruption, though the potential is great. It is hence my resolve to continue on this reputation and continue to pay much interest that the department strengthens its anticorruption systems.
For with the task ahead of us, we cannot afford to tolerate incidences that seek to rob our people. It is my intent that every member of senior management and entire staff should adopt into their Performance Agreement as key priority and the task to fight against corruption.
Honourable members, I have assumed office of the department whilst our people still expect us to provide answers on the sums of money reported to have been returned to the national department unused. It is my pledge to this house that this will never repeat itself.
I have sought to establish the true reasons behind the occurrence of this pattern and simultaneously ensure that systems and strategies are in place to prevent it re-occurring. For there cannot be an accepted excuse as to why this has happens and this cannot ever be excused.
5. Budget overview and service delivery targets for 2009/10
The department’s Budget for creation of integrated and sustainable human settlements during 2009/10 is comprised of Housing Conditional Grant and Equitable share allocation, and stands as follows:
Budget overview of Department of Housing, 2009/10
Budget category: Housing Conditional Grant
Total allocation: R1,3 billion
Percentage of overall budget: 87,7%
Budget category: Equitable share (provincial)
Total allocation: R161 million
Percentage of overall budget: 12,3%
Total allocation: R1,4 billion
Total percentage: 100%
Honourable Speaker, the departmental budget allocation split by programmes stands as follows:
Departmental budget for 2009/10, split by programme
Programme: Administration
Budget Allocation (2009/10): R1,395,332 billion
Budget expressed as a percentage of the Overall Budget: 94,6%
Programme: Housing Planning and Research
Budget Allocation (2009/10): R15,697 million
Budget expressed as a percentage of the Overall Budget: 1,06%
Programme: Housing Development and Implementation
Budget Allocation (2009/10): R51,392 million
Budget expressed as a percentage of the Overall Budget: 3,48%
Programme: Housing Assets Management
Budget Allocation (2009/10): R12,395 million
Budget expressed as a percentage of the Overall Budget: 0,84%
Total allocation: R1,474,789 billion
Total percentage: 100%
Analysis
- The total budget of the Department for the 2009/10 financial year is R1,414 billion. However, only 12,3% of this relates to equitable share which is insufficient to service the R1,313 billion conditional grant.
- Administration Branch seems to carry the largest portion of the Budget, however, 98% of its allocation represents the Housing Conditional Grant of 1,313 billion.
- Housing Development and Implementation houses both Programme Facilitation and
6. Administration, Project Management and Quality Assurance and the six district offices.
Honourable Speaker, notwithstanding the bold commitments being made in this Policy and Budget Speech there are acute personnel and goods and services constraints that are threatening the ability of the Department to meet its expectations.
As depicted by the Budget Analysis in this Speech, there is an apparent mismatch between the Housing Conditional Grant Allocation and the Equitable Share. While the Housing Conditional Grant allocation is steadily increasing the Equitable Share allocation, based on historical performance / baseline financial data, continues to decrease, in real terms.
Hardly hit, herein, is:
- project management and monitoring capacity (contractor management)
- district development, including decentralisation of municipal support functions
- capacity to roll-out the Integrated and Sustainable Rural Housing Policy and Strategy
- macro-planning, monitoring and evaluation capacity at provincial level
- housing consumer education capacity
- roll-out of the Multi Year Research Agenda.
7. Housing Delivery Targets for 2009/10
Against the above budget figures the following targets have been set for 2009/10.
Summary of the overall housing delivery targets 2009/10
Priority Programme: Strategically located land procured for housing development
Performance Indicator: Extent of land procured
Annual Target: 225 ha (4 land parcels)
Priority Programme: Transfer of title deeds to households for home ownership
Performance Indicator: Number of title deeds transferred
Annual Target: 15 000 title deeds
Priority Programme: Social and rental housing stock
Performance Indicator: Number of social housing units completed
Annual Target: 731 houses
Priority programme: Planning and servicing of sites
Performance indicator: Number of sites serviced
Annual target: 7 790 sites
Priority programme: Utilisation of innovative construction methods and alternative building technologies (housing construction, sanitation)
Performance indicator: Number of projects utilising non-conventional building methods
Annual target: Four projects
Priority programme: Rectification of defective houses 9pre and post 1994 stock)
Performance indicator: Number of housing units rectified
Annual target: 3 682 houses
Priority programme: Integrated Residential Development Programme
Performance indicator: Number of housing units completed
Annual target: 19 000 houses
Priority programme: Job creation through housing construction
Performance indicator: Number of jobs created
Annual target: 9 000 jobs
8. Eastern Cape Housing delivery targets per district, 2009/10
District Projects
Projects: 10
Number of houses to complete and handover keys to beneficiaries: Ukhahlamba
Number of stands or sites to be serviced and at different stages: 793 658
Budget: 53,7 million
Projects: 27
Number of houses to complete and handover keys to beneficiaries: Chris Hani
Number of stands or sites to be serviced and at different stages: 3979 1414
Budget: 139,8 million
Projects: 39
Number of houses to complete and handover keys to beneficiaries: OR Tambo
Number of stands or sites to be serviced and at different stages: 2361 217
Budget: 84,9 million
Projects: 14
Number of houses to complete and handover keys to beneficiaries: Alfred Ndzo
Number of stands or sites to be serviced and at different stages: 837 147
Budget: 35,8 million
Projects: 141
Number of houses to complete and handover keys to beneficiaries: Nelson Mandela Bay Metropole
Number of stands or sites to be serviced and at different stages: 4382 3170
Budget: 438 million
Projects: 30
Number of houses to complete and handover keys to beneficiaries: Cacadu
Number of stands or sites to be serviced and at different stages: 3691 1410
Budget: 93,9 million
Projects: 27
Number of houses to complete and handover keys to beneficiaries: Amathole
Number of stands or sites to be serviced and at different stages: 1232 0
Budget: 192,6 million
Projects: 21
Number of houses to complete and handover keys to beneficiaries: Buffalo City
Number of stands or sites to be serviced and at different stages: 1725 774
Budget: 56 million
Totals
Projects: 309
Number of houses to complete and handover keys to beneficiaries: 19 000
Number of stands or sites to be serviced and at different stages: 7 790
Budget: 1,094,7 billion
9. Conclusion
In deed Honourable Speaker as we begin this term of government and the financial year, we do so very well aware of the challenges that lie ahead. However, we are convinced that the course we are taking is the right one, and will lead us to our destination – sustainable human settlements and a better life for all.
Honourable Speaker, we take our mandate and responsibility quite seriously. We cannot sleep when outside there we witness everyday people who are living in appalling and undignified conditions.
We cannot sleep when we are aware that there are still people who, as Todaro (1997)4 puts it: “Awake each morning to face a new day with little or no shelter and inadequate food supply. Their health is poor, they cannot read or write. They are unemployed and their prospects for a better life are bleak and uncertain at best.”
Honourable Speaker, achieving integrated and self-sustaining communities is about improving people’s lives. The necessity to intervene quite decisively in the situation of people who have no choice of where to build and what to build with can no longer be postponed.
We must always remember that our people are counting on us as public representatives and public servants that the democracy which they fought for, and in which lives were sacrificed, will bring about a better life for them.
To this end, the department will continue to strengthen partnerships with community based organisations, non-governmental organisations, faith-based organisations, traditional leadership institutions, private sector, public entities and sector departments, provincially and nationally, to realise its mandate.
At this point, Honourable Speaker, I would further like to express my gratitude to my family for their unwavering support, the Head of Department, management team and staff in general in the department, including our social partners, for committing to work as a collective in achieving the vision we have set ourselves that translates into improving the lives of the people of this province.
In that we dare not fail!
I thank you!!
1 White Paper: A New Housing Policy and Strategy for South Africa, 1994
2 Rossiter, J: Comparison of Single-sector, Multi-sector and Integrated Urban Development Projects and their Impact on the Livelihoods of the Urban Poor, A Working Paper
Source: Department of Housing, Eastern Cape Provincial Government
