Chairperson, Chief Whip of the NCOP, Minister of Education, Chairperson of the Select Committee on Public Services, hon Pat Sibande, hon members, I greet you this afternoon. It gives me great pleasure to present these two pieces of legislation in this august House. This takes place at a time when the ANC has emerged victorious in the local government elections.
Let me begin by explaining why these Bills are presented jointly. This is due to the current nature of the Department of Human Settlements' mandate. Our Constitution compels us to co-operate and collaborate with provinces and local governments in the development and delivery of sustainable and integrated human settlements.
Last year, during our Budget Vote for 2010, we adopted Human Settlements Vision 2030 to chart our way forward in the delivery of human settlements. This strategy is pivotal to the transformation of our settlements into areas where people can live, have leisure and recreation and where they can pray.
Integral deliverables of this strategy include creating a nonracial society with cohesive and integrated human settlements closer to places of work and social amenities. An increase in the accessibility and affordability of home ownership can help stimulate the construction sector, which will provide much-needed jobs.
Human Settlements Vision 2030 is all about acceleration of the development of sustainable human settlements for all South Africans. It is encouraging to note that all provinces are supportive of the legislative direction we are taking to stimulate the creation of cohesive and integrated human settlements. Working in partnership with provinces and local government we shall realise this dream. The contribution of the private sector is also noted in this regard.
Chairperson, we are tabling two Bills for consideration and passing the Sectional Titles Schemes Management Bill and the Community Schemes Ombud Service Bill. This is simultaneously done due to the complementary nature of the mandate, as I've said earlier.
When a sectional title or community scheme is established, a tripartite relationship is formed: an ownership of real right to the sectional unit, an undivided collective ownership of the undivided common property or area by owners, and participation in the management structure of the scheme. The objective of these two pieces of legislation is to foster good governance and relations to nurture this relationship. The Bills will be instrumental in ensuring good governance and improving the administration of sectional titles and community schemes.
Our people who live and stay in various forms of community housing schemes such as high-rise residential areas, townhouse complexes and gated villages will now have legal protection to safeguard their relationships with one another and their real rights.
These properties are administered by associations such as body corporates, share block companies, home owners' associations and housing schemes for retired persons. More and more South Africans are beginning to look for shelter in these residential spaces in search of comfort and security.
The key features of these Bills are as follows: The Sectional Titles Schemes Management Bill provides for the establishment of a body corporate to manage and regulate the upkeep of common properties within sectional title schemes. For the efficient administration of the legislation, provision is made for the establishment of the sectional titles schemes management advisory council to advise the Minister on an array of matters concerning sectional title schemes within the country.
The second Bill, the Community Schemes Ombud Service Bill, establishes a community schemes ombud service as a public entity with executive authority vested with the Minister to resolve disputes emanating from within the community schemes.
An ever-increasing proportion of human settlements is being developed in the form of community schemes, which triggered the tripartite relations of co-ownership, cogovernance and shared financial responsibility. Quite often the cordial relations among the owners may deteriorate, giving rise to problems and disputes as they involve control and administration of finances, facilities and behaviour requiring effective resolution. Hence the current Bills are put before this House.
Currently, there are no effective and affordable dispute resolution mechanisms available to parties involved in community schemes. The Community Schemes Ombud Service Bill is aimed at addressing this gap.
In conclusion, the two pieces of legislation will assist in the restoration of good governance and harmonise relations within sectional titles and community schemes. They will facilitate transformation of the community schemes environment and they will also assist the department towards the realisation of the objective of cohesive and integrated communities.
They represent another step forward towards the achievement of Human Settlements Vision 2030. The sectional titles and community schemes landscape will be transformed to the betterment of the property market. I thank you.
Chairperson, hon Minister of Basic Education and the Deputy Minister of Human Settlements ...
... ngithanda ukunibingelela, kanjalo namalungu.
Sihlalo, ngivumele ngidlulise ukubonga kuwo wonke umphakathi kuzo zonke izifundazwe eziyisishiyagalolunye ngokuvotela i-ANC. Yize noma eNtshonalanga Kapa i-DA iwinile, kodwa kunamalungu omphakathi avotele i- ANC. Kangangokuthi ngikhuluma nje amanye amalungu ezinhlangano eziphikisayo asalele emagumbini abagula kakhulu ngenxa yemivimbo yokhetho.
Kumalungu amaqembu aphikisayo akhona kule Ndlu, izihlathi zawo zehlile kuhle kwamawolintshi amunciwe. [Uhleko.] (Translation of isiZulu paragraphs follows.)
[... I would like to greet you, as well as the members.
Chairperson, allow me to convey my gratitude to all the communities in all nine provinces for voting for the ANC. Even though the DA won in the Western Cape, there are those members of the community who voted for the ANC. As I'm talking now, some members of the opposition parties are in the intensive care units because of the after-effects of the elections.
The members of the opposition party who are in this House are so disappointed. [Laughter.]]
Chairperson, I will start with the democratic consultation by and the presentations to the committee. The committee held a series of meetings during which deliberations were held on both Bills. The Department of Human Settlements was invited to make presentations to the committee on a number of occasions.
Provincial mandates and committee members solicited views from each provincial legislature. The public and stakeholders were allowed to make substantial inputs. Provincial mandates were considered in the select committee meetings. Key issues and challenges from a provincial perspective were raised by members of the committee.
The Department of Human Settlements, Parliament's legal representatives, the SA Local Government Association, Salga, and the Chief State Law Adviser's representative engaged robustly on those issues. Key misunderstandings with regard to the two Bills were dealt with and members came to understand the need for the ombud service and Sectional Titles Schemes Management Bill to be separated. Sectional title ownership has emerged globally as a primary solution to the increasing need for urban housing against the background of population growth and the demographic trend towards urbanisation. It is not only suitable but is in fact the only solution for the process of urbanisation taking place in South Africa.
The sectional title format offers the advantage of higher-density housing, using the land supply - which is becoming increasingly scarce - more effectively. It provides true ownership of housing with all its social and economic benefits to more people at affordable costs. It also provides improved proximity to schools, employment, shared amenities and services, otherwise not individually affordable.
With private home ownership being the primary constituent of increased wealth for ordinary citizens, it has become a priority that the needs of emerging homeowners be accommodated. Therefore, sectional title housing is increasingly becoming a popular option, especially for young home buyers.
However, from the history of sectional title in South Africa and other countries, it is clear that sectional title and community ownership is bound to fail unless supporting structures and rules and management practices are put in place to ensure the viability of such schemes. Up to now the Department of Rural Development and Land Reform controlled both the registration of deeds and all technical aspects in terms of the Sectional Titles Act, drafted in 1985 and 1986, particularly the approval of sectional plans and the registration of transfer of rights in sectional title property.
The provisions of the existing Act had become very outdated and were amended piecemeal over many years, making them somewhat inaccessible and without the facility to add any value to the management of present-day sectional title and community schemes.
The responsibility for the management and governance aspect of sectional title schemes is transferred from the Department of Rural Development and Land Reform to the Department of Human Settlements, with a Cabinet decision to have all housing-related legislation overseen by the latter department.
The Sectional Titles Schemes Management Bill, which is being debated today, therefore takes the management provision in the Sectional Titles Act and puts it into a new, separate statute under the Department of Human Settlements. The Bill updates all the provisions and substantially improves their layout and accessibility and gives managers and sectional title owners all the provisions they need in one relatively short statute. The management provisions are more logically set out and renumbered, with the result that this Bill is drafted significantly differently from its predecessor and with the interests of sectional title housing consumers in mind.
The Sectional Titles Schemes Management Bill proposes to provide for the establishment of body corporates to manage and control sections and common property in sectional title schemes and, for that purpose, to apply rules applicable to such schemes; to establish a sectional titles schemes management advisory council; and to provide for matters connected therewith.
The Bill basically deals with the capacities, functions and powers of bodies corporate and the fiduciary position of trustees. It furthermore covers the effect of the variation of quotas; legal transactions with regard to common property and units; the duties of owners; recovery from owners of unsatisfied judgment against bodies corporate; non-liability of bodies corporate for debts and obligations of developers, and the appointment of administrators.
The Bill makes provision for the establishment of a sectional titles schemes management advisory council to advise the Minister as well as for the procedure of appointing members of the advisory council and the making of regulations.
Sectional title and community scheme ownership requires tolerance and a permissive attitude towards fellow owners whose opinions, practices, race, religion, nationality, etc, may differ from one another. It entails a capacity to recognise and respect the beliefs and the patience to tolerate the practices of others.
Integrating diverse backgrounds into stable and successful living schemes invariably presents challenges, with cordial relations among members deteriorating and giving rise to problems and disputes, which need to be effectively resolved.
The second of the two Bills being debated today, namely the Community Schemes Ombud Service Bill, will address these needs. The ombud service will be established as a national public entity, with executive authority vested in the Minister of Human Settlements. It will develop and provide a framework for the avoidance and resolution of disputes in community schemes and the custody of community scheme governance documentation, as determined by the Minister of Human Settlements.
The ombud service will establish a simple and inexpensive recourse that will ensure independence, fairness and impartiality and that will promote uniformity and consistency in the handling of disputes. It will also provide a remedy for the protection of the right to good administration.
In performing its functions, the ombud service will promote good governance and community skills and provide education, information and documentation to raise awareness among owners, occupiers, executive committees and other persons or entities who have rights and obligations in community schemes.
The ombud will become the protector of the property owner's rights and will ensure that the rules of the scheme are fair and that they meet the legislative requirements. The ombud will deal with the complaints and resolve disputes by appointing full-time and part-time adjudicators to impartially handle investigations, hold hearings and make determinations, with both parties to a dispute being bound by the determinations of its office. The adjudicators' decision can be appealed in the High Court, but only if the appeal is based on legal issues.
As a national public entity, the ombud service will be required to comply with the principles of good governance and management, as set out in the Public Finance Management Act, and to submit a quarterly report to the director-general and an annual report to the Minister and to Parliament.
The intention is that the ombud service be implemented in such a way that local communities of South Africa will be able to access it. At the same time, unnecessary bureaucracy will be avoided and the infrastructure of the service will be kept as compact as possible.
Both of the Bills we are tabling today will assist the Department of Human Settlements ... In conclusion, the ANC supports the two Bills. [Time expired.]
Chair, I thank you for inviting me to come and speak at this congregation here today. It is a privilege. If you look at the aim and purpose of the Sectional Titles Schemes Management Bill, Bill 20 of 2010, I think everybody will agree that the purpose of consolidating all housing-related matters under one entity, that of the Department of Human Settlements, should be applauded.
The new statute will make the schemes management more understandable for those who need to administer and implement the provisions of such an Act. It is also relevant that the substance of the contents of the old Sectional Titles Act, Act 95 of 1986, will not be changed substantially. It is evident, and we agree, that the Department of Rural Development and Land Reform, under which this Sectional Titles Act, Act 95 of 1986, resided, cannot effectively take care of the complaints that come out of this section of home ownership. We agree that the Department of Human Settlements is much better geared to taking care of this area. The Bill has been a long time in the making, since 2009, and it is heartening to see it coming of age now and being ready to be constituted.
The important thing is that we are satisfied that this Bill is consistent with what the Constitution demands and expects of us to do, and this Bill achieves that in a proper way. We are also satisfied that this Bill is not in conflict with other laws. The Western Cape provincial parliament therefore considered the Sectional Titles Schemes Management Bill, Bill 20 of 2010 and want to support it as it is.
However, the standing committee on governance of the Western Cape provincial parliament decided not to support the Community Schemes Ombud Service Bill, Bill 21B of 2010, because we do not support clause 22(b), which states that levies be collected from communities with the approval of the Minister. This is an open-ended opportunity for the Minister to decide to tax communities to the extent he or she wishes, with no caps on the amount that these levies could be. There are no checks and balances on that clause building up to the Act.
It is good to supply this intended service to communities, but quite a number of these communities are poor people who just cannot afford to pay these levies. The principle, in general, is that it is not right for government to decide to deliver a service to communities at a cost. South African society is overwhelmed by all sorts of taxes, levies and costs incurred to them by government. We as South Africans already pay some of the highest individual taxes in the world. We simply cannot go on deciding that ordinary people must pay more taxes or levies. Government has a responsibility to deliver services to the people in this country; the Constitution makes that provision very clear and states that government's responsibility is to deliver services to all citizens of this country without taxing them into poverty. We commented on this in our first negotiating mandate to the NCOP, but we only received a response from an official. We are not sure if the NCOP standing committee actually ever had a look at our proposal and that is a matter of concern to us.
Our standing committee also expressed our concern about the competency and level of knowledge of appointed board members. Clause 7 of the Act sets out the procedures to appoint board members. Clause 7(5) states that if a suitable person is not found to appoint, the Minister may call for further nominations. That is not good enough and we are looking for the checks and balances. We would like to see the Act state that the Minister must call for further nominations until enough suitable candidates are found.
Nowhere in this Act or in clause 7 or wherever it deals with the members of the board is it specified that members must undergo proper and specific in- house training to prepare them to do their job as board members properly. We must express our concern with the fact that we think that the NCOP did not deal with this Bill in an appropriate manner or work through it thoroughly. The Western Cape provincial parliament, therefore, cannot support the Community Schemes Ombud Service Bill, Bill 21B of 2010. I thank you, Chair.
Chairperson, it is a pity that when we were dealing with the mandate the chairperson of the standing committee in the Western Cape was not present, otherwise he would have known that all the concerns that have been raised were clarified by the legal representatives, and everyone on the committee agreed. I think it is important that when we deal with clause 7(6), now that they are next door here, they should come over because it is very near, so that we could interact together with what is in front of us.
As the ANC, we continue to better the lives of our people in this country, hence this legislation. This legislation is really long overdue, because the need for separating the management and governance aspects from the current Act is necessitated by the fact that the Department of Rural Development and Land Reform's mandate does not extend to dealing with problems arising from schemes' governance or complaints from the public.
The Bills we are debating today are part of new legislation that is much needed to provide improved living conditions for our people. It is our strategy to ensure that all issues related to human settlement, including sanitation, are driven, co-ordinated and managed by the Department of Human Settlements. The Sectional Titles Schemes Management Bill is very important in that it will regulate the relationship between sectional owners and other holders of rights in the sectional title scheme in their management of the Section Titles Act and common property.
Chair, an ever-increasing proportion of housing is being developed in the form of community schemes. Community schemes include sectional title schemes, share block companies, homeowners' associations and housing schemes for retired persons. In community schemes, much of the governance to maintain buildings and to ensure safety and harmonious living in the blocks is done by the community involved. This means that there is shared financial responsibility over the property, the land and the facilities of the common living area. Therefore, this piece of legislation is imperative.
Because this involves control and administration of finances, facilities and behaviour, community and sectional titles schemes often cause problems and disputes among the community. To ensure that our people live better together, we have to put in place legislation and regulations that ensure the effective resolution of disputes whenever they arise. Currently, there is no effective and affordable dispute resolution mechanism available to parties involved in community schemes. The Bill will establish in the community an ombud service to address this need, something the chairperson and Deputy Minister have already raised.
In the case of both Bills, we have to keep in mind the overall objective of the Department of Human Settlements and to establish and facilitate a process that is sustainable and that provides access to affordable homes within the context of sustainable human settlement and economic opportunities for all.
South Africa is the only country in the world that offers housing under the ANC leading the country, and that needs to be commended. If you compare it to other countries, like Brazil, for instance, the ANC has moved a great deal in this area. The United Nations, UN, global report on human development attests to this. Our people have to be taught and learn that rights go hand in hand with responsibilities, hence the resources that are used are meant to be safeguarded in line with our democratic gains.
Our vision, as the ANC, is that of the profound transformation of society. We know that political transformation without economic emancipation is meaningless. That is why we need to commit to economic freedom in our lifetime, and the ANC will always be at the forefront of that economic transformation. The ANC is best placed to carry out this next phase of developing and transforming our cities, towns and villages, because of our values, principles, policies and what we have learnt from our experience in government.
In conclusion, the next step now will be to look at the e-housing concept, which simply means access to Internet connectivity through installation of wireless infrastructure. This will lead to digitised communities and work towards building an inclusive information society.
We need to move away from simply building houses for the poor and work towards more united, nonracial and integrated communities across our cities and towns. The ANC supports these two pieces of legislation. I thank you, Chair. [Applause.]
Hon Chairperson, Deputy Minister, and members, the most significant aspect of this Bill is contained in clause 18. The establishment of the sectional titles schemes management advisory council is a progressive move. It will allow for the proper, full-scale implementation of this Act and for the regulations to be kept under regular review. This idea of keeping the review regular is highly desirable.
It is worth noting that the Bill demands that the advisory council "must make recommendations to the Minister with regard to any amendments thereof, or other action which may be advisable". If the word "must" is taken as an imperative, the advisory council will be judged by the number of recommendations it makes each year.
To fulfil this expectation, it is imperative that the advisory council makes its existence known to all sectional title holders so that it can receive inputs for analysis and comment. The creation of an interactive website will be an absolute necessity. The Minister of Human Settlements and the department must facilitate this without any delay.
Regarding the Community Schemes Ombud Service Bill, boards and their functions have become contested terrain in South Africa. This is because they have become politicised. We appeal to the Minister of Human Settlements to ensure that he goes strictly by the provision of clause 7(4) so that he appoints people with the requisite skills, experience and availability to fully implement these functions.
Under clause 42(d) regulations must be made to allow for independent arbitration and the use of small claims courts before a more expensive court is indicated. If the application is being implicated by any law lacuna, it should immediately be brought to the Minister's attention so that administrative procedures may be used to deal with this problem.
Finally, clause 22 is making provision for levies to be collected from community schemes. This will require proper prior consultation with representatives of schemes, because this will be seen as a new form of tax. With these reservations in mind, Cope supports the two Bills.
Hon Chairperson, hon Deputy Minister, Chief Whip, all protocol observed, allow me to make a few remarks in this important debate.
The ANC-led government has once more proved that this government is the government of the people, governing by the will of the people. With these two pieces of legislation, the government is responding to flaws identified in the existing Act because at the time it was drafted the Act did not affect a large segment of the population, namely the black people of the country, who did not then reside in these areas. With the advent of democracy, they find themselves living in these areas. This has resulted in many challenges coming to the fore and the government has had to respond to them.
The Community Schemes Ombud Service Bill seeks to provide a conflict resolution mechanism for persons living in community schemes. It will serve as a legal entity that will monitor and control the administration of the private and the common areas in the community schemes. These schemes include sectional title schemes, share-block companies, homeowners' associations and housing schemes for retired persons in which there is governance by the community involved, shared financial responsibility and land facilities used in common.
Many owners and occupants of residential sectional title complexes have been frustrated by the lack of effective mechanisms for resolving disputes. The major problem is that the current management rule in sectional schemes providing for the compulsory arbitration of disputes does not provide an adequate practical and cost-effective method to avoid and solve problems.
This Bill will address the fact that the shared use of rights and shared financial obligations in community schemes regularly give rise to problems in practice. There is no accessible dispute resolution for persons involved in community schemes or a government department that assists such people. There is no government-sponsored entity that exists to educate persons in community schemes on how they should operate. There is a lack of reliable custody of sectional titles and other forms of community schemes governance documentation, which hampers good governance in such schemes.
We hope this Bill will deal with long-established problems which were inherent in the previous legislation. These living areas are currently populated by both black and white tenants, who will benefit equally from this Bill. This Bill and its intention give effect to the notion that this country belongs to all people who live in it, both black and white. We hope that the sceptics who doubted our young democracy are being proved wrong with the enactment of such legislation.
Let me just respond to what Mr Visser has said, and let me put it in a proper context. People who have benefited from these schemes were affluent and there is an encroachment of black people in these areas, and problems are arising. What do you do if you have a problem and you don't have money? So, that's why we have a Bill introducing an ombudsman because previously people would just take this to High Courts because they had money while the black people involved didn't.
This Bill is going to give people an opportunity to object in a cost- effective manner. I'm not surprised that Mr Visser is against this because this is encroachment on their terrain and they don't want our people to encroach. It is also important that the Minister should intervene because he represents the largest population group of this country. It is correct for the Minister to intervene and give proper guidance. This is why, as the ANC, we support the Bill in its entirety. [Applause.]
Chair, allow me to thank the officials from the Department of Human Settlements, led by Adv Tladi, who are over there, for their hard work. I agree with the hon member and chairperson Pat Sibande when he said that the process that has led to where we are has been robust and inclusive. I also want to welcome the support that I am getting from members on these two Bills.
The issue that I want to raise pertains to the member from the provincial legislature, Mr Visser, when he said that the issue of taxation makes him unable to support the Community Schemes Ombud Service Bill. I just want to remind him that the Western Cape, in particular, is a province that is robust in building Gateway houses. If we don't have a mechanism in terms of the provisions of Parliament to resolve disputes that may arise in the ranks of those residents, it is going to be difficult for them to resolve such issues. Remember, we just delivered the Dromedaris housing project, the housing in Mitchells Plain, and many other Gateway houses that we are building as part of this process. If we do not have mechanisms to resolve disputes arising from these building developments, it is going to be a problem.
We also want to say that we are the last people to be lectured about the poverty of our people. If we raise this Bill, if we are going to tax people, we must remember that we have government bodies that cater for the indigent. There is the National Indigent Policy and Legal Aid - people do not have the resources to pay for themselves in issues like these. What we are saying here is that this service will be on their doorstep and they will identify with the people and know that they are best at resolving issues arising out of these kinds of settlements. We urge the province to support the legislation because we want to make life easier for you as well.
I agree with Mr Jacobs that the Bill itself states clearly that South Africa belongs to all who live in it. I must also talk to the hon member Themba regarding the e-housing concept. I think it is an issue that we will be looking at, because we would like to ensure that we deliver houses of quality and also ensure that in those communities we build homes. Therefore, e-housing is one of the issues that we will be looking at and discussing with you.
To Mr Feldman, who spoke about the issue of interactive websites, I think it is advisable to ensure that we reach out to our people. The Department of Human Settlements is one of those departments that wants to work with other departments. We heard the issue of communications; we will rope them in and work with them to ensure that as they deliver websites to everybody else, the people who live in Gateway houses, or even in the affordable houses we built in the subsidy band, will be able to benefit from communications and e-housing.
I must leave it at that because I believe there is not much to debate because all members are supporting this Bill. Do not worry about the Western Cape - I think they are still suffering from election fever but I must remind them that the ANC is here to govern, even in the Western Cape. Thank you.
Debate concluded.
Question put: That the Sectional Titles Schemes Management Bill be agreed to.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Sectional Titles Schemes Management Bill accordingly agreed to in accordance with section 65 of the Constitution.
Question put: That the Community Schemes Ombud Service Bill be agreed to.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West.
AGAINST: Western Cape.
Community Schemes Ombud Service Bill accordingly agreed to in accordance with section 65 of the Constitution.