Department Budget; State of Parliamentary Villages: briefings

Meeting report

PUBLIC WORKS AD HOC COMMITTEE
2 June 2004
DEPARTMENT BUDGET; STATE OF PARLIAMENTARY VILLAGES: BRIEFINGS

Chairperson: Mr F Bhengu (A N C)

Documents handed out:
Report on Parliamentary Villages
Budget Presentation

SUMMARY
The Committee was briefed by the Department of Public Works on the situation in parliamentary villages and its 2004 / 2005 budget. During discussion of the situation at Acacia Park, Members made practical suggestions on ways to improve the untenable conditions there, and were assured that the Department was attending to the situation.

Questions asked by Members regarding the Department of Public Works budget included: what was done about unused public buildings; why the introduction of multi-purpose buildings for state services was so poorly co-ordinated and ineffective; whether the Department could consider acting as developer of its own land resources; the impact of the Enhanced Public Works Programme (EPWP) on the private sector and municipalities; the urgency of establishing an audit of all immovable assets of the Government; and the dangers of disposing of government-owned land.

MINUTES
Mr James Maseko, Director General, and Dr Sean Phillips, Chief Operations Officer, presented on behalf of the Department.

Parliamentary Villages
The presentation on Acacia Park (see document) called attention to the unsatisfactory situation there. An instance where a Member and no fewer than 15 other people were occupying a residence was cited. The Residents' Committee and the Board were not sitting regularly because of non-availability of members. There was a maintenance backlog, and the Police was not dealing with security issues.

Budget Review
The presentation (see document) stressed that for the Department, as custodian of Government immovable properties, future service delivery was most important. They aimed at becoming more client-oriented through regional offices, and were looking at developing charters for transformation of the construction and property industries. They were hampered by the inadequate amount allocated to them by Treasury for their main programme that was the provision of land and accommodation. There was a huge financing backlog for restoring and maintaining the national government portfolio of buildings.

Discussion
The Department was questioned about the effectiveness of the conduct of the police at Acacia Park and stated that the officials had not dealt with problematic issues. Was there a long-term plan for improvement of the situation? The recent formation of a squatter camp next to Acacia Park caused concern

The Chair announced that a meeting would soon be convened. Mr Maseko added that there was to be a Committee meeting the following week.

Mr J Blanche (D A) stated that signing in and out was not practical.

Dr Phillips re[lied that most important for the Department as custodian of the Government's immovable properties was future service delivery.

The Department was asked why, sometimes going on for years, money was spent on maintaining buildings that were not used. What long term plans were in place for those buildings?

Mr S Opperman (DA) asked what Treasury did about the over-expenditure that was mentioned and whether buildings could not be leased to the private sector.

The Chair proposed that a workshop be held for the benefit of new members.

Mr Maseko explained that health and safety requirements were national and thus applied to all buildings. It would be rather embarrassing if the Government were not to comply.

Dr Phillips proposed that, in the case of the government building at the corner of Skinner and Bosman streets in Pretoria, a deadline be put on the duration of the negotiations, which had been dragging on for years.
The Department was aiming at more focused management which included acceleration of the disposal process of unused properties. In October adjustment estimates were submitted to Treasury.

Mr Maseko expected that their plans would be coming together in the following month or so.

The Chair enquired what the utilisation purposes of the new multi-purpose community centre buildings were and why it appeared that obligations were not being met.

A Member stated that the new multi-purpose community centres (MPCCs) were not operating as "one-stop shops" yet and enquired about the Department's responsibilities in this regard.

Mr K Moonsamy (ANC) asked for a complete audit of all buildings standing unused, and cited the example of state-owned buildings in London that were vandalised until they were made available to landless people at reasonable rates. He felt a national programme was required soon.

Mr Maseko explained that the purpose of the multi-purpose centres was to bring Government to the people by providing a range of services at one centre. Communication, linkage and co-ordination with municipalities had not been clearly defined. It was a new concept and massive co-ordination was still to be done.

A Member expressed her impatience with the lack of co-ordination, seeing that the centres were there and the need was there.

The Chair explained that communication with the Department of Home Affairs was to be improved.

Mr Blanche encouraged the Department to take more initiative to lead, manage and sell buildings. If the Department were, itself, to develop its properties huge amounts of money could be generated A unit to do this should be established in the Department. New legislation might also be required.

Mr Maseko said that improving co-ordination would take time. There was a lack of power and a suitable framework might require legislation. A separate unit for managing would require getting in specially skilled persons.

Dr Phillips mentioned that a bill was being drafted. The Department did not have a role in providing buildings for education. The Department paid leases to landlords and rates and taxes to municipalities. Sometimes there was confusion in municipalities and bills were sent to a wrong department. The Department's policy was to pay and, when running short, to find the money elsewhere. The Expanded Public Works Programme stipulated joint accountability, and municipalities had to join in.

The Chair announced that a user-friendly guide or brochure to the EPWP was being prepared.

Mr Moonsamy stressed the urgency of an audit of state land, and proposed that legislation was required to protect state land.

A Member asked whether there were checks on traditional leaders selling land.

Dr Phillips assured the meeting that before a disposal plan could be enacted, an audit would first be done. There was already legislation that required state property to be sold at market value.

Mr Maseko expressed his concern about the rate at which land in South Africa, especially in the Western Cape, was sold to foreigners. Investment must be encouraged, but assets should not be lost. A new law should apply to all tiers.

Mr Opperman enquired about what would happen if, under the EPWP, workers were offered only R 30 per day and they refused.

Dr Phillips said that the Department would not decree, but that the community had a choice between higher wages and less infrastructure (e.g. tarred street) from the available money, or more infrastructure at lower wages or machine-intensive construction.

Mr Maseko cited a case study of a village in Northern Province where there was a huge supply of labour clamouring for work and prepared to work for a low wage to ensure the success of the new road project. They benefited from increased esteem and skills training.

The Chair demanded a programme so that the Committee could be part of the process.

A Member suggested that a database of available labour be kept where skills upgrading could be tracked.

Mr Blanche suggested that the Intersite subsidiary of TRANSNET be consulted and that transport nodes such as railway stations be developed as business centres, seeing that they were already accessible by the existing transport infrastructure.

Dr Phillips explained that the Department of Labour had a database which contained skills assessment and which was accessible to his Department. The Department of Trade and Industry created linkages as a first step up the ladder, but he liked the suggestion of talking to Intersite.

A Member asked whether the EPWP would also benefit the private sector.

Dr Phillips replied that mainly Small and Medium Enterprises (SMEs) would benefit, but also larger companies.

The Chair announced that the Minister and Deputy would take part in the meeting scheduled for the following Tuesday. In early August a workshop would be held. Visits around the country would create oversight and good co-operation.

Mr Maseku said that, regarding land under the jurisdiction of traditional leaders, his Department was involved in public works such as police stations.

Mr Blanche enquired whether the SANAE weather station near the South Pole resorted under the Department and whether the Committee were to visit there as part of their oversight responsibilities.

Mr Maseko replied that the Department had two bases there.

The meeting was adjourned.