BUDGET SPEECH FOR 2008/9 FINANCIAL YEAR PRESENTED BY THE MEC FOR HOUSING IN GAUTENG, Ms NOMVULA MOKONYANE, GAUTENG LEGISLATURE, JOHANNESBURG 24June 2008 Comrades Speaker and Deputy Speaker ‘A Nation, a country, a people, a movement that does not respect its Youth does not deserve its future.' These are the profound words said by the then ANC President OR Tambo when he was honouring the Youth of South Africa in 1981. OR Tambo's words remain relevant as we move towards the conclusion of celebrating the Youth Month in South Africa . We do so in recognition of the sacrifice made by the youth of our country in its heroic, selfless and unshaken fight against the apartheid system. It is in this context that the historical June 16 will remain deeply entrenched in the hearts and minds of all freedom loving South Africans. As a way of saluting the youth of this country, the Department resolved three years ago to focus on youth-centered programs. Many of these programs ranging from procurement, skills development and housing development are deliberately skewed towards young people. Ladies and Gentlemen, there is no doubt that the first decade of freedom has brought dignity and transformed the material conditions of the majority of South Africans. Many people have experienced tangible change: decent shelter has been provided to the millions of our people; social grants extended to the multitudes; water and sanitation supplied; and schools and primary health care services also provided for. None other than this government has been able to achieve such milestones. What we have been able to achieve as government was achieved because together with the masses of our people we marched and engaged in an unrelenting fight to improve the living conditions. Comrade Speaker, the achievements in the housing development front I have alluded to are well documented and dates as far back as when the unveiling of the Breaking New Ground Strategy in 2005 took place. In June 2004 through the Department's Five Year Strategic Plan we committed ourselves to changing the spatial development patterns as well as housing designs or typologies which provides people with choice based on their needs and the qualification criteria. The empirical evidence for our commitment can be found in Cosmo City a human settlement not more than 15 kilometers from here. We have remained true to our promise. We shall continue to strive to meet the goals of economic growth, job creation and poverty alleviation for the poor through the implementation of targeted plans based on needs and aspirations of people. Last year, we made a commitment that we will deliver 58 552 housing units during the 2007/08 financial year and by the end of March 2008 we have d elivered 63 484 way above the target. This resulted in 317 435 people having proper shelter and enjoying security of tenure for the first time in their lives. In addition to this, we also delivered 26 830 serviced stands out of the targeted 25 159 . For the first time the occupants of these stands can enjoy the bliss of easy access to clean water and sanitation. This is part of our concerted effort to formalize and eradicate informal settlements by 2014 in our province. We were able to achieve all this by spending just over R3 billion. In a nutshell, Ladies and Gentlemen, let it be noted that the Gauteng Provincial government created over 650 000 housing opportunities to people of this province which in turn provided shelter for over 1.5 million people. Whilst there is a reason to pride ourselves for the work done and achieved, we have not lost sight of the challenges that lie ahead. Gauteng population has been growing rapidly as a result of in-migration and natural growth. According to Statistics South Africa in 2004 the average Gauteng population was at 19.7% and in 2005 was at 19.9%, 2006 at 20.1% and in 2008 it is estimated at 20.2%. In moving forward towards 2014 vision, the focus will be on ensuring that viable and sustainable human settlements are achieved in which the security of tenure, safe and healthy environment becomes the hallmark of our housing program. We have to deal with the challenge of how to best optimize the use of space available to the urban poor and unemployed in targeted areas, enabling these people to collectively determine and identify alternative local economic development trajectory that will be in line with their aspirations. CONSOLIDATING THE GAINS AND LAYING THE FOUNDATION FOR 2014 Comrade Speaker, we have traveled a long road implementing the mandate given to us by the overwhelming majority of voters in 2004. As we proceed with the journey the focus will be on consolidating the achievements and completing the work we started within the period of 2004 – 2009 simultaneously beginning to build a solid foundation for 2014. In order to achieve this milestone, we will continue to execute our strategy through the following programmes: Mixed-housing Development, Eradication of Informal Settlements, Alternative Tenure, Urban Renewal Programme and, 20 (PTP) Prioritised Townships programme Through the above-mentioned vehicles we have a strong conviction that the face of spatial development in Gauteng will never be the same again. We believe that we shall not go wrong due to the deeper analysis and research methods we have applied which brought us to the conclusion that these programmes should remain the flagship of housing development in Gauteng . During 2008/09 our programmes and plans will be more streamlined and will focus on specific areas of housing delivery. Under the Mixed Housing Development Programme, the province will continue with the construction of human settlements in the identified projects that provide beneficiaries with choice based on needs across the province. Already work is underway in areas such as Pennyville – (2800 housing units), Chief Albert Luthuli Ext 6 (5389 housing units), Olivenhoutbosch Ext 36 (4452 housing units), Thorntree View (17 000 housing units), Cosmo City (14 800 housing units) and K206 in Alexandra (3199 housing units). During the last week we have started work on three more areas – Dooronkop in Soweto (24 100 housing units), Chief Mogale in Kagiso (9 315 housing units) and Middlevlei in Mohlakeng (3 495 housing units). Once planning process has been completed we will move to areas such as Lady Selbourne (6000 housing units), Danville (2000 housing units), and Willows (10 977 housing units) just to name a few. By 2014, Gauteng would have implemented almost fourteen (14) of these projects across the province and this will result in over 150 000 different housing units delivered over a 5 year period. This will allow us to effectively deal with the “market gap”. All these projects are done with full co-operation and participation of local authorities and the private sector especially the financial institutions. In this regard Speaker, allow me to specifically thank ABSA Development Company under the leadership of Mr. Sipho Mashinini for the partnership we have enjoyed so far in implementation of some of the projects mentioned above. We have always maintained that government alone will never succeed unless other stakeholders particularly from the private sector come to the party and form partnership with us. With the above mentioned projects our primary objective is to continue creating integrated communities and do away with the old apartheid system of spatial planning which perpetuated racial and class segregation. The poor for the first time are now having direct opportunities of being integrated into the mainstream housing market. The cross subsidization of basic services and infrastructure and savings on infrastructure development have been some of the bi- products in these projects. The issue of choice within affordability has been translated to reality as various housing typologies based on the socio economic conditions offer maximum choices to the people of South Africa . Through these projects we have been and will continue to realize our objective of creating jobs as well as de-racializing human settlements and create those that will accommodate all and sundry irrespective of one's background, financial status or social standing. Once completed Gauteng will never be the same again. Honorable Members, all of the above-mentioned mixed-housing settlements are new initiatives that we have thought through a detailed integrated planning process. We therefore can attest to the fact that our Breaking New Ground strategy is working. ERADICATION OF INFORMAL SETTLEMENTS Comrade Speaker, our commitment to deal with poverty and create better life for our people by providing better housing solutions and eradicate all informal settlements. It is within informal settlements that the phenomenon of “urbanization of poverty” is thriving. Our ongoing commitment to the public is to ensure that all our people live in decent, secure and habitable environments. In achieving this goal, t he Department identified 122 informal settlements that will be upgraded by 2009. To date 68 informal settlements have been formalized (upgraded insitu) and this has resulted in 325 000 people having access to water and sanitation. As part of our plan to formalize all those identified informal settlements, we are currently putting services to 56 settlements which will benefit a total of 380 000 people. It is our goal to provide necessary services and tenure to about 710 000 people by 2009. We are confident that the 2014 vision is achievable. Our programme of upgrading of informal settlements is moving ahead and I wish to thank people of Gauteng for co-operating and agreeing to be relocated when requested. We are fully aware of the counter-productive forces who continue to discourage people from supporting this initiative. These forces are largely concentrated in such areas as Thembelihle, Plastic View, Winnie Mandela and Zamimpilo just to name a few. Since our housing programme is often undermined by the unregulated mushrooming of informal settlements and shack farming, the National Housing Department in conjunction with provinces is drafting the Bill on the Prevention and Eradication of Re-emergence of slums and informal settlements. The Bill provides for capacity within the municipalities to ensure that slums and informal settlements do not re-emerge once cleared. This will be finalized by December 2008 and we are mindful of the Constitutional challenges that are being mooted by some civil society groups. However, we are confident that once the legislation has been finalized government will be in a position to deal with lawlessness and be able to meet the 2014 Millennium Goals. In the meantime together with various local authorities we are working on a province wide approach that will ensure that we limit the sprawl of illegal settlements and illegal land invasions. In this regard the Tshwane Metro has been identified as a using the best method of clearing slum areas. Among the smaller municipalities, Lesedi municipality has distinguished itself in a fight against mushrooming of shacks by, amongst other methods, encouraging and accelerating the approval of building plans for extensions. We are therefore coordinating a process of ensuring that a cohesive and comprehensive approach which discard the fragmented methods in the implementation of by-laws dealing with land invasion and related issues in our local municipalities is realized. ALTERNATIVE TENURE Speaker since 2004 we have been aggressively accelerating housing delivery by promoting Alternative Tenure which provides alternative accommodation options for those not seeking permanent housing. This is informed by observable evidence that shows that some of our people prefer rental than having a permanent house in Gauteng . Our regulation process between landlord and tenants is starting to bear results and we are now decentralizing services of the Housing Tribunal to ensure it deals with disputes at local level including our townships. The Tribunal has been the front runner in the stabilization of rental market in Gauteng . It has been able to foster a regulated relationship between landlord and tenant by using mediation as the tool to deal with conflicts that arise in the market. Since its inception in 2001, the Tribunal has resolved approximately 6121 cases relating to, amongst other things, unlawful evictions, lack of maintenance, and non-payment of rent, non refund of deposits, and unlawful terms and conditions in lease agreements. I am happy to announce that the process led by Gauteng to amend the Rental Housing Act has finally been approved and the Rental Housing Amendment Act was enacted on 13 May 2008. The Amendment Act further clarifies the rights of tenants and landlords and gives the Tribunal the power to grant attachment orders and interdicts. In light of the impressive record of achievement the Tribunal, I would like to thank the Tribunal team under the stewardship of Mr. Trevor Bailey for the sterling work. There is no doubt that there is a need to increase the output on the Alternative Tenure program since Gauteng Province continues to attract multitudes of people in search of better opportunities. The Alternative Tenure program has given the people of Gauteng a freedom of choice especially the inner-city residents who at most times have found themselves being abused by unscrupulous landlords and paying exorbitant rentals. As government we are constantly assessing our capacity to deliver and in search of new ways to speed up service delivery. However, striking a balance between the limited resources at the government disposal and the ever-growing demand for services is proving to be intricate. The reality of the matter is that the government cannot do it alone. The housing backlog should be seen as the problem of everyone in country and therefore collaboration between government and various sectors is vital. In attempting to address this situation, the Gauteng Partnership Fund (GPF) which is the government initiative has developed a strategy that will enable us to form partnership with private sector so that more resources can be accessed. This strategy has been largely informed by the current pressing needs for eradicating informal settlements and creating visible sustainable human settlements. Over the past five years GPF has focussed exclusively on developing financing solutions for social housing sector, leveraging R1.3billion of private sector funding and delivering approximately 12 000 housing units. We have extended GPF facilitation reach to cover the entire spectrum of housing development, identifying funding gaps and developing targeted financing structures and instruments in partnership with the private sector. In support of this strategy we have set aside R450 million funding and with this kind of financial injection, the GPF should be able to leverage at least R4 billion in private sectors funding, yielding about 30 000 low cost dwelling units in integrated housing developments. This approach which will target the entire housing delivery value chain, enabling rapid delivery of affordable housing in Gauteng , is aligned to our Government housing policies. Through this initiative we are increasing on social housing units so that we continue providing diversified rental housing options for different income groups across the province with focus in inner-cities and infill developments. Hostel Eradication - This plan will ensure that we integrate hostels into the neighbouring communities thereby moving away from the old apartheid dormitory accommodation. Our focus will be on completing t he following thirteen (13) hostels - Diepkloof, Orlando West, Dube, Kagiso, Mohlakeng, Saulsville, Mamelodi, Refilwe, Sebokeng, Boipatong, Khayalitsha, Sethokga and Buyafuthi. In all these developments our key focus is the transformation of hostel from single gender dormitory type of accommodation to self-contained single, communal or family units with a choice between rental and ownership tenure. This would ultimately give rise to the integration of the hostel and non-hostel communities. Our implementation plan is geared towards the integration of such facilities to the mainstream housing development initiatives thus ensuring that hostel residents become integral part of broader communities with whom they have so much in common. Our vision towards 2014 is to make sure that the vocabulary of hostels and its associated connotation is erased and replaced by the idea of Integrated Human Settlements that caters for all irrespective of one's income or ethnicity. I therefore wish to make a clarion call to all residents of hostels within our province to work with us as we seek solutions to the challenges. In the same breath I would like to thank the Provincial and Local Hostels Forum that made it possible for us to accelerate delivery. The Backyard Upgrade pilot project in Orlando and Boipatong has gone well despite challenges that we faced in the beginning relating to quality work, cash flow problems for contractors, landlord/tenants relationships, and small contractors not complying with norms and standards as well as the availability of material from suppliers. Based on lesson learnt, the department together with respective municipalities is now rolling out to other areas such as Zola, Mamelodi and Atteridgeville and a process of building show houses using alternative technology is underway. URBAN RENEWAL PROGRAMME Comrade Speaker, in all three areas, Alexandra, Bekkersdal and Evaton where the programme is implemented, we are seeing visible change and progress since we started with prioritizing housing and support infrastructure as well as putting more effort on attracting private investors. Alexandra Renewal Project The progress made in Alexandra has been impressive since all projects planned for 2007 are implemented. This has forced the department to exhaust the entire budget set aside for Alexandra. There are currently 18 housing projects underway and once complete this will result in 13 000 different housing units. There is also concerted effort to upgrade educational facilities as well as in the construction of four new schools. In support of local economic development, the Local Business Support Centre is fully functionally and provides support service to small and emerging business. The Pan African Retail Facility, to serve the small entrepreneurs, is under construction and will consist of mixed use taxi, retail and informal trading facility and this will be completed and ready for occupation by October 2008. The project is funded as joint venture between government and private sector at a cost of R237million. A key challenge has always been that of availability of well located land within the Greater Alexandra and surrounding areas. We have since managed to identify well located land that is suitable for mixed income groups, mixed use and alternative tenure options. Acquisition of different pockets of land has commenced and this gives us an opportunity to realize our objectives of de-densifying Alex without displacing communities from areas of economic opportunities as well as interfering with the historical social design. BEKKERSDAL RENEWAL PROJECT TURNAROUND STRATEGY In response to the Premier's instruction about developing a turnaround strategy for both Bekkersdal and Evaton Renewal Projects, I am happy to announce that we have complied with that instruction. The new approach in Bekkersdal Renewal Project is aimed at adopting a regional approach to housing development within the Westrand and relocating the informal part which is on unsafe and dolomatic land to new housing development in areas such as Middlevlei/Droogehewel and Westonarea South that will result in over 16 000 different housing units developed over three years. Concerning the formal Bekkersdal, turnaround strategy is focused on the completion of all 5 year projects with high visibility impact including the implementation of roads, storm water, sewer, landscaping and beautification. Established contractors have been appointed on a turn-key basis to work on risk on an accelerated programme and to complete all works by March 2010. The opening of the LSBC will ensure that local people acquire necessary skills that will enable them to be part of the development and access other opportunities within the region. One of the critical interventions we have identified is that of ensuring that the West Rand in conjunction with Randfontein and Westonaria local municipality must have maintenance plans to ensure that all completed projects once handed over are maintained. EVATON RENEWAL PROJECT TURN AROUND STRATEGY In Evaton, we have reengineered Project so that it begins to address the fundamental issues of the people of Evaton. We have reviewed our strategies and priorities such that the process of change can be accelerated and the outputs thereof become visible. The Department has therefore designed a new approach that will focus on high impact development by prioritizing infrastructure upgrade which deals with roads and engineering services guided by identified precincts based on the developed business plan. The new approach advocates using development companies which bring on board upfront funding partnerships, years of experience and massive capacity to deliver. This will help to address the constraints of budget allocation. The new approach is however not blind to policy requirements, therefore the development companies will be expected to utilize current BEE consultants ,sub contractors and local contractors as tradeoffs which also help in building local capacity. As part of the strategy we selected key priority areas which will drive impact in Evaton for the next 3 financial years. These are - Upgrades of bulk infrastructure & engineering services- sewer and water networks, storm water & street lighting; Roads & transport networks. Housing upgrade (aim is to lift the face of houses for the current beneficiaries whilst also building new houses for new beneficiaries). Local Economic Development focusing at concepts that can help create employment and small business opportunities and alleviate poverty and Social Services & Infrastructure We have divided Evaton into precincts in order to help focus developments. However the new approach advocates for even much smaller boundaries or divisions within a precinct. This will help localize and speed up delivery especially with regard to brown-field upgrades. So far, based on the above strategy, the private sector partnerships on infrastructure development have had visible impact on these projects. The involvement of Standard Bank of South Africa and other private sector companies in Evaton has now resulted in major investment of over R500 million towards improvement of infrastructure in order to ensure that people have access to economic opportunities. I wish to thank all members of the various Development Fora who have made it possible for us to turn around these areas and be able to steer the ship forward. 20 PRIORITIZED TOWNSHIP PROGRAMME (20PTP) In terms of the 20 Prioritized Projects we are on course with our plans and the focus is on construction of roads, beautification and youth empowerment projects. Since the start of the project we implemented projects to the value of over R4 billion across the province. These projects are accumulative and multi-year and implementation thereof will be completed by 2009. Since the programme was announced various infrastructure projects have been undertaken across the twenty identified townships ranging from school and clinics refurbishment, road construction, infrastructure upgrade and various environmental projects aimed at beautifying the areas. In terms of road construction, we have to upgrade 3022 kilometers which include storm water drainage and walkways. This work has so far resulted in creation of 2855 jobs thereby contributing to the broad government strategy of providing jobs and dealing with poverty and also creating an enabling environment for economic growth in line with the Gauteng Development Strategy. ALTERNATIVE BUILDING TECHNOLOGY The department has undertaken to complement conventional housing construction with Alternative Building Technologies. In line with the new comprehensive housing plan which aims to accelerate access to housing opportunities, these alternative technologies will assist in decreasing the housing backlog as they prove to be faster in construction, labour intensive (assist in job creation & skills transfer), offer a varied array of housing types to our beneficiaries and falls within the prescribed subsidy scheme. We have now seven projects that will be implemented throughout the province and more will be identified as and when we approve additional companies who meet our norms and standards. HOUSING ALLOCATION PROCESS Recently we have observed publicity around housing allocation with many people accusing government of allocating houses to illegal immigrants. The department is guided by policy when allocating houses to beneficiaries. It is therefore important to understand policy and other legislation before making public statements and labeling people and calling them names as such irresponsible statements can in fact incite violence and lead to death and destruction of property. One of the families that have been highly affected by this is Mr. Moses Arlindo Nhavato who is here in this House today and has lived in Alexandra for more than 20 years. He is the holder of exemption certificate MR5592/99MML and has been exempted since 2001 from being in possession of a permanent residence permit. Further he is the father of two South African born children who reside with him. On behalf of the department and Gauteng government, I wish to unconditionally apologize to Mr. Nhavato and his family and other South Africans who unfortunately found themselves in this situation and wish to assure them that our government will do everything possible to protect their basic human rights as enshrined in our Constitution and the Bill of Rights. As responsible members of our democratic society we have a duty to provide leadership in all aspects of development and not play unnecessary politics at the expense of ordinary people. Some have now been displaced from their houses precisely because of some of irresponsible public statements made. We are quite aware that the issue of allocating houses to beneficiaries is a complex and sensitive one. In all our housing developments we ensure that only those people who according to prescribed legislation and the National Housing Code qualify to get houses are being allocated. In ensuring that we have credible data, we have launched the Demand Data Base System (Project Ziveze) which will assist the Department to allocate houses to rightful owners. This credible system will further improve and ensure efficient and fast tracked housing delivery in Gauteng. The Demand Data Base will be the Department's Planning Tool for housing delivery. Houses will be built according to need and demand. This will ease pressure on those who have been waiting for long because there was no housing project in their area. Through Project Ziveze we have seen thousands of people coming forward to update their information. The project has been piloted in Sedibeng, Westrand and Metsweding Districts and we are now rolling it out to all the Metros and the rest of the Province. Once information has been updated, we will then publish names of people that have applied per region and local area. In addition to this process, names of all approved beneficiaries per project will be published and posted in local newspapers and community centres. We are hopeful therefore that this process will once and for all eliminate any acts of maladministration and or corruption since it is transparent. One of the critical areas that are receiving ongoing attention is the process of housing allocation, the department has henceforth assumed full control of the procedure and officials are now held liable for any wrong allocations. CORRUPTION AND MALADIMINISTRATION The Department of Housing has long ago acknowledged corruption as a major impediment to development; it undermines the fight against poverty by putting money that was meant for infrastructure and development into the pockets of corrupt officials. We have developed a Fraud Prevention Plan which is being implemented effectively to mitigate the fraud and corruption risks and to deter any possible acts of fraud and corruption. Recently there have been some reports in the newspapers relating to a number of allegations of fraud and corruption around the issues of irregular housing subsidy transactions and/or allocation, especially in relation to government employees. The department together with Special Investigation Unit (SIU) is investigating these allegations of fraud, corruption and maladministration in the development and delivery of low cost housing in Gauteng. As soon as the investigation is completed the necessary steps will be taken. I need to make it clear that irrespective of these investigations our policy is very clear that beneficiaries of our programmes must all meet the necessary criteria irrespective of whether they are public servants or employees of private business. We must therefore not create an impression that people who work for government are not entitled to receive state housing subsidy for various forms of tenure. If they meet the criteria like any other applicant, they will be granted subsidy. ACQUISITION OF WELL LOCATED LAND The Province of Gauteng is the smallest in land size compared to other Provinces of South Africa. It is yet the densely-populated urban space with an ever-increasing number of household. This situation underscores a need to address the issues of land use and land availability. Competing land use covers a wide range of interests and needs such as residential, industrial, commercial and business. The challenge in our geographically small Province is to know how to strike a harmonious balance between or amongst equally important competing needs and interests. As part of our Land Bankability strategy and maximizing the usage of public owned land, we have also identified pockets of land earmarked for sustainable human settlements in all the regions of Gauteng province. In terms of this process of acquiring both private and public owned land in various areas of the province in order to plan towards 2012, the following portions have been identified: Johannesburg 31 Portions; Tshwane: 66 portions; Ekurhuleni: 51 portions; Westrand: 16 portions; Sedibeng:44 portions and Metsweding: 18 portions. In maximizing the usage of land, we are moving ahead with the implementation of the Inclusionary Housing Policy. Key to this policy is its ability to influence spatial patterns in promoting the deracialisation of exclusive suburbia and create inclusive communities irrespective of income, race and profession. Whilst the individual unit configuration and finishes may vary, the aesthetics of the units are not compromised. We have targeted 5 pilot projects in the following areas: Bedford Gardens – Bedforview, Ekurhuleni (Total 225 units), Brackendowns – Alberton, Ekurhuleni (Total 108 units), Lonehill, Johannesburg (Total 95 units), and The Reeds – Centurion, Tshwane (Total 108 units), Bedworth Park, Bedfordview, Ekurhuleni (Total 60 units). The above pilot projects were initiated by the Department of Housing on government owned land. The department has prepared a scope of work and is in the process of inviting developers to present proposals for consideration and implementation. It is my view that the opulent Parkhurst capitalist must get used to staying next-door to Ms Mabuza, the housekeeper. Why do you need a helper in your opulent estate's kitchen and garden during daytime yet you cannot stand the idea of sharing the same residential space and all the amenities with him/her. This is the kind of prejudice that we should rid our society of. The inclusionary policy is attempting among other things to redress such anomaly. Otherwise, the Freedom Charter vision of “Peace and friendship amongst all our people … and upholding the equal rights, opportunities and status of all” [own emphasis] will remain a pie in the sky. Honorable Members, allow me to deal with the issue of low-cost housing as it is intertwined with the issue of land acquisition and development. There is a predominant perception that the cost of building low-cost house is normally cheap hence the value and quality of this product is very low compared to other housing products in the market. We have to dispel this myth and empower communities and beneficiaries about the market value of such houses. When we consider the cost for the construction of low-cost housing, we must take into account the cost for land acquisition, installation of bulk services and essential services such as water and sanitation. When all these critical elements are put together the average cost for the low-cost house is R120 000 - R180 000.00. IMPLEMENTATION OF THE SECTOR STRATEGY Youth Involvement in Expanded Public Works Program The Department will continue supporting the EPWP through continuous engagement of 27 young learner contractors in the program and each has a contract to the value of R2m and the total project amounts to R54 m. There are 38 supervisors that provide mentorship on an ongoing basis to ensure compliance with building and construction norms and standards. This programme will result in creation of over 8000 jobs and training for over 150 laborers' and this is clear indication that shows total commitment of government to provide sustainable communities and deal with un-employment through housing development and infrastructure related projects. The Expanded Public Works Programme launched its Kamoso Awards Programme in 2007 to reward Municipalities, Provinces, Departments and Public Bodies that excelled in implementing the EPWP in the Infrastructure Sector. This year, the EPWP is recognizing achievements under the programme in all four sectors (i.e. Infrastructure, Environment, Social and Economic). The Department therefore submitted Tsepiso North Ext 3 and Soshanguve Ext 11 for the awards and I am proud to announce both the Department's projects have been shortlisted and results will be announced on the 17 th July 2008. With us today we have representatives of the 11 youth contractors that are involved in these two projects and we pride ourselves of the sterling work they do and we are certain that they will bring home the award. The Department continues to engage and procure companies that are owned by people with disabilities and youth companies in the areas of construction and the provision of goods and services. We have an agreement with NHBRC in which the youth companies will be assisted financially in order to be involved in building material procurement business. In short the programme will enable young people to participate fully in the sector with full support from government and its institutions. Women Empowerment With regard to women empowerment we are on course and currently engaging 23 women contractors and 10 of these are part of the special Incubator Programme that we started last financial year. I am happy to announce today that we have now established partnership with First National Bank in order to provide more capacity and support to the 10 women contractors. In this regard FNB will bring their expertise and resources in order to ensure that these women contractors are able to deliver without having to struggle for financial and capacity support. We are therefore on course to create our own established developers and this has been proved with one of them Bella Cassa getting an award for best women contractor. HOUSING CHALLENGES AND INTERVENTIONS In spite of the achievements we have made, Comrade Speaker, I must concede that we are still contending with a number of challenges. The challenges referred to range from availability of well located land, housing backlog, corruption and poor monitoring mechanisms. Comrade Speaker, as we continue with the implementation of our Five Year Strategic Plan which responds to the above mentioned challenges, we are in constant search for innovative, cutting-edge methods for housing delivery. We are crafting a new development path aimed at unblocking bottle-necks that hinder the realization of our mandate. The assurance that we give our people is that if delivery has not happen in your area it will soon happen as it did in other areas where people waited patiently. What we humbly ask from our people is cooperation and understanding as we strive to deliver on our mandate. As mentioned earlier in my address we are currently exploring different options to fast track housing delivery. Amongst these options is the implementation of various strategies such as utilization of alternative building technology, issues of central planning, land acquisition and inclusionary policy. I am confident that w shall succeed. These options are very critical especially if we want to ensure that the Millennium Development Goal of eradication of informal settlements by 2014 is realized. It is our submission that such interventions will also go a long way in building Gauteng as a Global City Region of note. Those who work with us day and night can attest to the fact that the tide has turned in this department, we have and continue to make progress in implementing our programmes as per our mandate. To some who are just armchair critics these plans and achievements may seem unattainable and idealistic but to us and millions out there they certainly make yesterday, today and tomorrow a dream of happiness. The ANC has declared this year as “The Year of Mass Mobilization for a caring Society” and it's important therefore that we are stressing on importance of partnerships in the housing delivery value chain, we cannot afford to work in isolation from other key strategic partners including beneficiaries of our programmes. Furthermore, the Department had restructured its organizational structure and design with the view to strengthening its support plan in terms of fast tracking delivery from an integrated, all-inclusive approach. B ased on the Conditional Grant allocation received from National, it is evident that the Conditional Grant allocation has grown substantially over the past two years, as well as into the MTEF period. Serious intervention between the National Department of Housing, National Treasury, Provincial Treasury and Housing Sector at large is currently taking place in order to review the Baseline Allocation with regards to the allocation model. It is our belief that this model must change and take into account conditions of each province and ability to implement housing programmes. Although we would have been over the moon if we were given more, the amount allocated is readily accepted and we commit ourselves to putting these resources to good use without a cent of the allocation being misused. It is in this context that I gladly present the 2008/9 Budget allocation for the Gauteng Department of Housing as follows: Main Appropriation is R3, 099, 253,000 billion and shows and increase of 16.64% compared to last financial year. This can be further broken down into the following Programmes:
1. Administration R 212 028,000 2. Housing Planning and Research R 15, 504,000 3. Housing Development Implementation R2, 803,873,000 4. Housing Property Management R67 848,000
Speaker, before I conclude, a special word of gratitude goes to the many beneficiaries out there who have and are still waiting patiently for assistance from government and I want to assurance them that if delivery has not happen in your area it will soon happen as it did in other areas where people waited patiently. I humbly ask from our people for cooperation and understanding as we strive to deliver on our mandate, we understand your plight and the living conditions under which you find yourselves and we appreciate that your only hope is this government and we shall not fail you. Our track record in housing delivery is but a clear testimony and together with your support w e will build this country so as to inspire the people to be hopeful for a better tomorro w In conclusion, let me thank men and women who under the stewardship of the Head of Department Ms Manching Benedicta Monama have meticulously steered the ship without fail. This also goes for wise guidance that the Department enjoyed from the Members of Portfolio Committee led by an ever-vigilant Comrade Godfrey Tsotetsi. Our appreciation also goes to all MMCs and officials responsible for Housing in various local authorities. It is through Team Housing that we have been able to achieve the goals we set out to attain. May I also thank all our partners, stakeholders, service providers and ordinary individuals for their continued support. Lastly, I want to convey a great sense of admiration for the support that I am enjoying from the Premier and all Members of the Executive Council. Thank You |
