Chairperson, hon members, today's assembly of the National Council of Provinces is a significant landmark in the future of the construction industry. It brings to fruition five years of activity that has engaged all formations of the Government and the industry in an historic policy-making process.
The collaboration that has led to this landmark moment was set in motion by a meeting in 1995 between the Department of Public Works and the captains of the South African construction industry. That meeting addressed the role of the partnership between the industry and the Government in reconstruction and development, as well as the structural impediments to growth, development, delivery and transformation of the construction industry. It gave impetus to the development of a comprehensive policy framework, within which the industry can play a more strategic role in social development and economic growth.
The Bill before us emanates from the White Paper on Creating an Enabling Environment for Reconstruction, Growth and Development in the Construction Industry. Published last year, the White Paper sets out a comprehensive industry development strategy and proposes the establishment of a statutory construction industry development board, or CIDB, to drive this strategy in partnership with all Government delivery agencies and the private sector. This is the essential purpose of the Construction Industry Development Board Bill before this House.
The construction industry is a national asset in the challenges that face our country. It has a pivotal role to play in infrastructure delivery, to meet the needs of ordinary South Africans. It is this objective which underpins the Government's vision and its commitment to construction industry development.
We are, fortunately, able to build on an industry which is strategically developed and which provides much-needed employment and dignity to thousands of people. In the South African context and, indeed, in the context of our region, the industry's development must be geared towards rolling back the enormous legacy of an inadequate infrastructure, its inequitable distribution, and the underdevelopment of locally based physical and human resources. Unlocking the industry's potential to address this stark reality is at the core of the enabling legislation before this Council, but this potential is impeded.
Previous government policies and market forces have distorted the nature and profile of the South African construction industry, which is characterised by adversarial relationships between clients and contractors, contractors and subcontractors, and in the workforce itself. Its accessibility is a factor of volatile demand and impacts negatively on sustainable employment and human resource development. This affects performance in relation to quality, productivity, safety, health and environment. It ultimately impacts on value for money to clients and investors.
Previous legislation affecting the construction industry reinforced the fundamental intentions of apartheid and limited black participation to the domain of unskilled artisans and cheap labour. This was achieved not only through the Bantu Education Act, but also through the Native Building Workers Act of 1951. Job reservation was further reinforced by the Industrial Conciliation Act of 1956.
These instruments of policy shaped the entire industry to the benefit of white artisans, contractors, professionals and materials suppliers. Today the emerging black sector faces a range of hurdles in the way of accessing markets, training and finance which contribute to a vicious cycle that pegs the sector's growth. It is against this backdrop that the Government and the private sector embarked on a structured process of engagement to reshape the industry. It is important that I should highlight some of the significant milestones of this process that underpins the legislation before us.
The Green Paper published in 1997 invited public comment on the draft policy to enable thorough planning and consultation with all stakeholders towards the establishment of the CIDB. The Minister of Public Works appointed an interministerial task team which started its work in 1998. The task team established an industry-wide reference group to ensure the inclusive input of public and private sector stakeholders.
It further set up a number of focus groups for industry specialists to refine key outputs identified in the Green Paper, such as the register of contractors, which is an important function of the CIDB. This partnership redefined Government policy as embodied in the White Paper of 1999.
In November 1991 a two-day industry summit workshop to debate the first draft legislation was convened. In December, the amended draft legislation for public comment was published. In July 2000, taking cognisance of public comment, the draft Bill was further amended and, ultimately, certified. In August 2000, together with provincial MECs we convened public sector workshops in all nine provinces. Since then the legislation has been refined by the NCOP Select Committee on Public Services.
To ensure a further opportunity for public comment, the select committee invited submissions, which it has considered in the final amendment. I am pleased to note that these submissions confirm the support of all key stakeholders.
Under the capable leadership of the acting chairperson, the hon Mokoena, the select committee has effected significant improvements to the legislation. The NCOP process has ensured the structured input of all provincial legislatures. This is particularly significant, in view of the binding nature of the Bill on all organs of state.
I now want to deal with the essence of the legislation. Recognising the dispersed nature of the industry, and its many role-players, including clients and service providers, the Construction Industry Development Board will constitute a national competence for industry development. It will provide strategic leadership to realise the Government's vision of a construction industry policy and strategy that promotes stability, fosters economic growth and international competitiveness, creates sustainable employment and addresses historical imbalances as it generates a new industry capacity. That comes from the White Paper.
The core objectives of the CIDB are to establish and promote appropriate and uniform best practice standards and guidelines that promote improved industry stability and performance, as well as social and economic objectives; to ensure the uniform application of policy throughout all spheres of Government and provide uniform and ethical standards throughout the industry; to promote the sustainable growth of the construction economy, and to improve the investment environment and the participation of the emerging sector in the mainstream economy.
The board will drive best practice through programmes and instruments that include the establishment of a register of contractors, a register of projects and a code of conduct. It is important that the board itself should comprise outstanding practitioners with a broad development perspective and a commitment that looks beyond the narrow interests of individual stakeholders. The appointment of the board must also take account of the need to reflect the race, gender and geographic composition of our land.
The responsibility conferred on the board is immense. The board will therefore continuously require the support and input of stakeholders. This will be accomplished through the establishment of the stakeholder forum. This forum will enable the representation of all stakeholders including government departments, provinces and local authorities. It will also include representation of employer bodies, the professions, organised labour, the emerging sector and others. To enable policy co-ordination and the identification of national priorities, the legislation appropriately requires the Minister of Public Works to consult with relevant Ministers and provincial MECs.
In conclusion, the CIDB must be a catalyst for change. It must ensure sustainable growth, regional and global competitiveness and the continuous inclusion of historical marginalised sectors of our society. It must promote investment and value for money to clients.
Finally, I would like to thank the task team, as well as the department's drafting team and all the stakeholders, for the hard work that has been put into the legislation before us. In particular I wish to thank the members of the select committee and the provincial legislatures for their immense effort to ensure that the legislation was finalised in time for consideration at today's assembly of the NCOP.
I regard it as critically important that the legislation now reflects the concerns of the provinces. Today, as I have said, is indeed an historic day. The passage of the Bill before this House will put the construction industry firmly on the national agenda in the interests of all South Africans. As we move forward to implement this enabling legislation, we will continue to rely on the commitment of all role-players to the growth, development and transformation of the construction industry. [Applause.]
Chairperson, good leaders listen when their people speak. The construction industry was and still is undeniably in tatters; the industry is terribly fragmented. We are witnessing a shockingly massive mushrooming of contractors, especially noticeable when there are projects to be embarked upon by departments. As a government we either use that old law about an eye for an eye, which unfortunately leaves everybody blind ... [Laughter.] ... or put measures in place to correct this anomaly.
Someone has to come up with those corrective measures, someone who is prepared to confront this situation head-on. This person happens to be the hon the Minister of Public Works. I want to thank the hon the Minister for the efforts that she has made to ensure that our lives get better by the day. I want to thank her for having a great mind and a feeling for our people. As she is aware, minds are like parachutes; they only function when opened. [Laughter.] Once again, thanks, Mama Africa.
Again it is a fact that unless one enters the tiger's den, one cannot take the cubs. Good leaders listen when their people speak. We are now going to have this independent board appointed by the Minister. What kind of people are we looking at here? How is the Minister going to identify them? We are so glad to have a Minister who is not selfish. The Minister will not randomly pick and choose people. The public is given a chance to nominate individuals who, in their opinion, can serve as board members. I can hear some people saying the Minister is too generous. Yes, this is the kind of leadership we have in the ANC, leaders who will not do anything without consulting the very people whom we are supposed to serve.
The board will consist of people with vast experience in their own right, people who are prepared to move and not be moved, because the Minister is aware that a ship that stays in the same harbour never encounters danger, but also never gets anywhere. Yes, it is true that good leaders listen when their people speak. The main tasks of this board will be to provide strategic leadership, to promote and implement policies and programmes aimed at supporting emerging entrepreneur sectors, to improve labour relations and human resource development and to promote best practices to again guard against those greedy professional looters. The best preparation for good work tomorrow is to do good work today. The board will be expected to make sure that this legislation assists the people who are meant to benefit from it. As hon members know, what one thinks and does shapes one's future.
One other good thing about this Bill is the fact that all contractors will, from now on, have to be registered. This is being done to deal with some of the selfish, unsympathetic, greedy and corrupt contractors who are looting our government coffers, people who want to succeed while doing nothing. All I can do is remind them that the only place where success comes before work is in the dictionary.
I am saying all this because it was possible for one person, using different names, to be given five tenders. This is why, when I hear some people sigh, ``life is hard,'' I am always tempted to ask ```compared to what?'' Contractors should register for us to know the owners thereof and their entire board of directors. It is not the hours one puts in that count, but what one puts into those hours. It will now be an offence for unregistered contractors to embark on any project without obtaining a formal authorisation. Yes, it used to happen, and they were even paid for it.
After the passage of this Bill some of these unholy practices will be a thing of the past. Yes, if it comes to the push, we are ready to milk the bull. [Laughter.] We cannot allow this situation to continue unchecked. We cannot fail. Failure does not mean one is a failure; it just means one has not succeeded yet.
All stakeholders will monitor whatever happens in the construction industry. There will be a forum of stakeholders, who are also expected to advise the Minister.
These are the people who are affected directly. This is a clear indication that the Minister has taken everybody on board. As to who must be accommodating, it is not the hon the Minister. It is now up to these stakeholders to effectively make use of this opportunity. Hence, the saying that opportunity follows those who walk the extra mile. At the same time, I would like to request the Minister to guard against some of those members of the board who might, instead of empowering our people, indirectly push them out of the system. They may even make it difficult for our emerging contractors to get tenders, only giving tenders to their blue-eyed boys and blue-eyed girls. Troubles are a lot like people, they grow bigger if one nurses them.
The people who will serve on this board should be people who will not easily forget or deliberately forget where we come from. I know that when we utter such statements some people say things are going to be bad, and that it means that such a person stands a better chance of being a prophet. [Time expired.]
Order! Thank you on that note, hon member. I did promise yesterday that I would allow you grace time, but only for yesterday. [Laughter.]
I take this opportunity to welcome our special delegates from the provinces, and hope that we will be enriched by their presence. We sincerely recognise and appreciate their participation. The next person to open his parachute is special delegate Mr Metele. Mr Metele, please leave the harbour.
Chairperson, let me greet you all this afternoon in the name of our Lord Jesus Christ. This Bill provides for the establishment of the Construction Industry Development Board to implement an integrated strategy for the reconstruction, growth and development of the construction industry, and to provide for matters connected therewith.
Whilst formulating our mandate, the standing committee considered the scope of consultation on the Bill, the importance of the subject matter to the citizens of the province, the constitutional mandate of participatory democracy, and public participation and transparency, and resolved that this piece of legislation should be considered for public hearing to empower the nation.
The structures implemented by this Bill will address issues affecting the workers. The national, social and economic objectives of the Bill include the growth of the emerging sector, labour absorption in the construction industry, improved labour relations and positive safety, and health and environmental outcomes which impact on the provinces.
The Bill includes emerging construction development and addresses the injustices of the past in this sector. The establishment of the board ensures that there is accountability and that all projects are registered. This ultimately ensures that there will be a transparent process in which structures are managed. The Eastern Cape undoubtedly supports the Bill in accordance with our mandate. [Applause.]
Mr Chair, hon Minister, as part of its contribution to the national project of reconstruction, growth and development, the Department of Public Works has engaged the entire industry in a structured process of consultation which resulted in the launch of the White Paper, in order to create an enabling environment for reconstruction, growth and development in the construction industry.
This White Paper is like a mirror that reflects the soul of the Department of Public Works. It identifies the ideals and aspirations of the nation. The White Paper articulates the building values of the construction industry which impact directly on the communities and the public at large. The construction industry's improved efficiency and effectiveness will enhance quality, productivity, health, safety, environmental outcomes, and value for money for our country.
The Construction Industry Development Board Bill seeks to establish a statutory authority to be the specialist agency to co-ordinate the national endeavour through promoting our vision as set out in the White Paper. Owing to the nature of duties the board will have to discharge as part of Government's blueprint, we have given the board a justic personality as it will have an indispensable role in the South African economy in providing the physical infrastructure which is fundamental to the country's development. This Bill also regulates general powers of the board, such as the establishment of committees to assist the board in the performance of its functions. This Bill requires that a balance must be achieved in the appointment of members of the board with regard to the field of expertise required, and the board should reflect the race, gender and geographical composition of our country. It is an explicit requirement of this Bill that a member of the board may not be a political office bearer and must be a South African citizen.
The board is required, within a reasonable period of time, to introduce a best practice project assessment scheme, that is linked to the register of projects, and which will promote best practice client performance within the public and private sectors.
The Construction Industry Development Board must establish appropriate and uniform best practice standards and guidelines that promote improved industry stability; performance-improved industry and efficiency; and national and economic objectives, including growth of the emerging sector, labour absorption and skills training. The board must also promote uniform application of policy with regard to the construction industry throughout all spheres of government.
The Bill also requires that only the contractors and subcontractors who are registered with the Construction Industry Development Board in an appropriate category of registration will be permitted to practice in public-sector construction contracts. The establishment of a register of contractors and subcontractors must not constitute a barrier to access by emerging sectors. The register of contractors will categorise contractors in a manner that facilitates public-sector procurement and promotes contractor development as a primary. The register of contractors must reduce the risk relating to the selection of contractors, serve to promote minimum and best practice standards, regulate the behaviour and actions of contractors in relation to procurement and business practices, and reduce tendering costs and the administrative burden associated with awarding contracts. Lastly, the register must promote the development of emerging contractors by establishing their track records. This will mean the end of fly-by-night contractors. [Applause.]
Hon Chair, hon Minister, hon special delegates and dear colleagues in the House, the Construction Industry Development Board Bill seeks to establish a statutory authority which is envisaged to co-ordinate nationally the transformation and development of the industry.
To quote the White Paper:
The CIDB will exercise leadership and foster the co-operation of industry stakeholders to pursue development objectives, improved industry practices and procedures - which will enhance delivery, performance and value for money, profitability, and the industry's long-term survival in an increasingly global arena.
There is no doubt that the need for creating an enabling environment, which the hon the Minister has referred to, for reconstruction, growth and development in the construction industry is being adequately addressed by the Construction Industry Development Board Bill.
Towards this end, the Construction Industry Development Board is to be established as a juristic person and given powers, functions and duties in line with its objectives. The CIDB will be the custodian and driver of the national vision and strategy for construction industry development.
Clause 4, for instance, specifically refers to the promotion of appropriate research, the implementation of Government policy with regard to the construction industry, the providing of advice to the Minister, the provision of consultancy services, establishment of committees, etc, for optimum performance.
Clause 6 of the Bill provides for the composition of the Board, which must consist of at least nine, but not more than 13, members appointed by the Minister. Members must be South African citizens and no political office bearer may be a member. These appointments must not only be sensitive to gender and reflect the demographic balance, they should also be consonant with the geographical composition of the country.
Clauses 16 to 21 provide for the establishment of a register of contractors, which is pivotal to the development of the construction industry. Previous speakers have referred to this fact and I welcome the inclusion of this very important clause. The size and distribution of contractors operating in the construction industry must be known. Furthermore the volume, nature and performance of contractors must be indicated. Matters such as the registration and deregistration of a contractor are dealt with, as well as the duration and renewal of registration.
As far as the financial implications for the state are concerned, it is foreseen that the CIDB will initially rely on state funding until such time that the register of contractors and the register of projects are established, whereupon the cost will be partially funded from the operation of these services to the industry stakeholders.
The state plays a role as regulator, facilitator and client. Of course, as the single largest client for the construction sector, the Government is well placed to influence the development.
The total annual budget for the CIDB is estimated at approximately R11,5 million. The CIDB will be funded by the Department of Public Works from within the MTEF budget allocation.
Finally, there is no doubt that the CIDB is a step in the right direction to restore clear guidelines for the efficient functioning of the all- important construction industry in the Republic of South Africa. [Applause.]
Mnr die Voorsitter, heel aan die begin wil ek graag my dank uitspreek teenoor die amptenare van die Departement van Openbare Werke vir die bekwame wyse waarop hulle hierdie wetsontwerp aan die lede van die komitee en die gemeenskap bekendgestel het.
[Dr P J C NEL: Mr Chairperson, right at the outset I would like to express my gratitude to the officials of the Department of Public Works for the skilful way in which they introduced this Bill to the members of the committee and the community.]
This is an important piece of legislation because effective, well- maintained infrastructure forms the very basic foundation for providing an acceptable quality of life for all and sustainable growth in a successful country.
As the hon the Minister has already mentioned, the construction industry plays a pivotal role in this respect. Since the mid-1980s, South Africa has experienced a constant decline in the construction industry. The turnover in most instances has more than halved and the industry lost more than 50% of its employees.
In this regard I would like to quote from a submission made to the committee by the SA Association of Consulting Engineers:
There is no doubt that the construction industry is presently in crisis, and has been in a serious decline for a number of years, and if this country is to become a successful nation in the global sense, there is no doubt that a healthy and vital industry is a key factor in achieving this goal.
The construction industry is one of the most effective employment-creating sectors in the economy. The four constituent members of the Construction Industries Confederation alone represent more than 12 000 companies and employ 330 000 people. This figure could, according to these people, be doubled with the implementation of appropriate policies.
Currently South Africa has no recognised vehicle to drive the implementation of a common strategy and to systematically promote the best practice of public and private sector role-players in an integrated manner.
Hopefully the establishment of the Construction Industry Development Board and the implementation of the board will facilitate the recovery of this sector. The recovery of this sector can play an important role in making South Africa an attractive investment destination for local and international investment.
The members of the board need to be selected very carefully because the expertise of the actual people on the board, particularly that of the CEO and the chairperson, is of crucial importance and will determine its efficiency and effectiveness.
The New NP supports the initiatives as spelled out in the Bill, since the construction industry and the professions are under severe economic pressure. Their problems need to be addressed without delay. We can only hope and pray that the objectives and principles as set out in the Bill will be achieved sooner rather than later. [Applause.]
Chairperson, hon Minister, members, this Bill is a timeous intervention in the long-standing problems of instability, poor performance, slow and sometimes discordant transformation efforts and a general situation of a lack of strategic direction in the construction industry.
The very existence of this Bill expresses both an acknowledgement of and a desire to solve these problems. This is the basis on which the North West would like to support this Bill.
We believe that this Bill, as presented, will save the industry from a situation of near collapse. It will create a stable, growing, sustainable and viable national asset. Yet it is worth applauding the fact that the Bill seeks to bring about more rapid transformation in the industry.
It is firmly rooted in the reconstruction and development agenda of our country. In this respect, whatever new animal we have will contribute substantially to our national economic development vision, empower the emerging sector, create meaningful jobs, as well as add to the workforce for a skilled, safe, healthy and environmentally sustainable country. These are not easy objectives. They are a major challenge for the envisaged board.
What we also find encouraging is the fact that the process, up to this point, has taken every interest group on board, and not only that, virtually every stakeholder is looking forward to the promulgation of this Bill into law. With such a lot of goodwill, how could we fail?
Regarding co-ordination and participation, it is worth noting that this will not be a national board of provinces on which provinces come as provinces, as in the NCOP. It will be a national board empowered to co- ordinate various state agencies, as well as spheres of government. To strengthen this there shall be stakeholder forums created throughout provinces.
However, we, as the North West, feel that much more attention will have to be paid to the functional interface between the spheres of government. Provinces and the local sphere run budgets of hundreds of millions of rand, and daily take decisions on construction matters, and therefore, we are worried that to reduce them to no more than stakeholders can create a situation in which the board lacks both presence and influence where it needs it most.
If our hope is the envisaged forums, perhaps a much clearer definition of the status, role and functions of the so-called forums and their relationship to these spheres of government, could assist in this regard. Indeed, the objectives and functions of the board will have to be the mandate of the provinces and the local sphere. If there is one area of our operation in which we need co-operative means to achieve our objective, it is here.
It is often argued that our inability to deliver, at times, is not due to financial and budgetary impediments, which we all acknowledge, but due to the performance and the capacity of the institutions that we have put in place. If one looks at the noble intentions of this Bill, and the huge responsibility it places on the envisaged board, one is bound to ask if the board will have the necessary capacity, willpower and vigilance. This is where much of the difference will be made. The continual review and evaluation of the board will come in handy in this regard.
With a committed, dynamic and focused team, this Bill will yield the results that we expect. We believe that the board will consist of people of impeccable qualities who will not be consumed by the culture of corruption.
In conclusion, the North West wishes to congratulate all who were involved in the production of this Bill. We especially congratulate the Ministry on this vision. We support the Bill and will work to see its objectives succeed. [Applause.]
Mr M V NGEMA (KwaZulu-Natal): Chairperson, hon Minister, officials of the Department of Public Works, and fellow delegates, thank you for the opportunity to make the following comments in this debate which will go down in the history of the NCOP as pioneering work.
We highly appreciate the spirit of co-operation which prevailed among the NCOP delegates in the process of negotiations with the department. Our province, KwaZulu-Natal, proposed 13 amendments to the Bill. Two of these were improved upon during the negotiations, one was explained to our satisfaction, and 10 formed part of the improvements that the hon the Minister thanked the NCOP for contributing. We also appreciate the willingness, on the part of the department, to look into the contributions from provinces with a positive attitude.
The pioneering nature of the Bill lies not only in the fact that it ushers in a new era in the history of the construction industry, but also in the fact that this is the first Bill from this committee, that I am aware of, in the history of our democratic Parliament and the NCOP, that was introduced in the NCOP before it went to the National Assembly.
We in KwaZulu-Natal will always support innovation and pioneering, because we take these characteristics as signs of progressive individuals, societies and institutions. It is true that innovation comes with teething problems, resulting from the venturing into unknown terrain by those who dare introduce new ideas.
Similarly, the introduction of this Bill in the NCOP presented us, as provinces, with a number of problems. One is that we did not have sufficient time to canvass public opinion, as the Constitution of the country entitles us to do. Certain procedural problems were encountered. For instance, two of the provinces had to request an extension of time to enable their committees to meet the deadlines imposed by the NCOP programme. If provinces are to give the best of their support to the NCOP, the NCOP programme should empower them to do so.
These challenges, however, should not prevent us from constantly looking for new ways of improving our work, and should motivate us to look positively for solutions so that with these new ideas higher levels of efficiency can be achieved. This is in the idiom of the late Nkosi Albert Luthuli who warned black people in the cause of their struggle to, ``let their courage rise with danger.''
New ways and innovations should not be allowed to undermine the overall objective of our parliamentary system, as set out in the Constitution. We hope that the hon the Minister will find ways of improving on the omissions experienced in the process by, for example, allowing the board to have provincial structures which will make its benefits more accessible to the poorest actors within the construction industry.
The North West has made a similar plea. We are looking forward to all the positive benefits for the nation that are contained in the Bill. We are happy to support the Bill as amended. [Applause.]
Order! Thank you. From the Chair I can confirm that an application for an extension of time was indeed received, and it was granted. I just want to place on record that we did receive such a request and that we did grant an extension.
Mnr J P GELDERBLOM (Wes-Kaap): Mnr die Voorsitter, ek wil ook net heel aan die begin s, namens die Wes-Kaap wil ons die amptenare, wat 'n voorlegging aan die staande komitee kom doen het, baie hartlik bedank. Baie van die bekommernisse wat ons gehad het, is tydens sodanige sessie opgeklaar.
Die konstruksiebedryf is en bly vir die inwoners van die Wes-Kaap van kardinale belang. Die rede hiervoor is dat die konstruksiebedryf in die Wes- Kaap 'n belangrike bron van werkskepping vir ons mense is. Die Wes-Kaap ervaar oor die afgelope paar jaar 'n redelike goeie tyd in die konstruksiebedryf. As ons dink dat ons 'n 17%-werkloosheidsyfer het in vergelyking met ander dele van die land waar dit 34% is, is ons redelik dankbaar, alhoewel die situasie nog nie na wense is nie en ons graag verdere groei in die ekonomie sal wil bespeur.
Veral noudat die voorkeurverkrygingsmodel in werking getree het, is dit baie duidelik dat die voorheen benadeelde gedeeltes van ons bevolking reeds baie voordeel trek uit die konstruksiebedryf. Baie belangrik vir die Wes- Kaap is dat die puntestelsel nou s gestruktureer is dat voorheen benadeelde kontrakteurs, en veral vroue, bo en behalwe vir prys alleen, ook addisionele punte kry. Daaroor is ons diep dankbaar.
Dit is interessant, en ek wil dit hier laat boekstaaf, dat in die Provinsie Wes-Kaap se werkedepartement alle kontrakte van onder R2 miljoen nou toegeken word aan sogenaamde regstellende sake-entrepreneurs en voorheen persoonlik-benadeelde individue.
By die eerste tertafellegging van hierdie wetsontwerp was daar sekere vrae. Ons het gewonder of dit nie alweer net wetgewing is wat sentralisties ingestel is nie. Aanvanklik was ons vermoede dat ons hier miskien weer te doen het met sentralisering. Kortom, ons was bekommerd dat dit ook die outonomiteit van die provinsie sou aantas. 'n Verdere bekommernis was dat die nasionale Minister en die te stigte raad ingevolge hierdie wetgewing magte bekom wat hulle toelaat om openbare sektorkontrakte na eie goeddunke goed te keur en toe te ken.
Die positiewe is egter, en dit wil ons aan die Minister oordra, dat wanneer 'n mens tussen die rels lees en deeglik na die wetsontwerp kyk, kom jy agter dat hierdie wetgewing dit ten doel het om die proses te kordineer en die konstruksiebedryf uit te bou en te bevorder. Voorgenoemde is vir ons belangrik, want beproefde ondervinding en finansile vermo is vir ons belangrik vir voornemende klinte. Die Wes-Kaap is van mening dat beproefde ondervinding en finansile vermo baie belangrik en 'n edele doel is.
Wat die raad betref wat ingestel gaan word, is dit vir ons belangrik dat daar geografiese verteenwoordiging moet wees, soos ook vroer hier deur 'n kollega van die DP genoem is. Sodanige byhou van die beoogde register sal ook verseker dat kontrakteurs wat oor bewese ondervinding en finansile vermo beskik op ordelike wyse geregistreer sal word. Die Wes-Kaap steun hierdie wetsontwerp.
Ons is van mening dat hierdie wetgewing tot voordeel van almal in die Wes- Kaapse sal wees, dat dit in 'n groot mate die konstruksiebedryf sal orden en dat dit daarop gemik is om bestaande geleenthede te konsolideer in 'n enkele wet. Sodoende het dit dan ook ten doel om pertinente nasionale standaarde in die bedryf te vestig. Ons is van mening dat die steun wat ons hieraan verleen verder sal lei tot ekonomiese groei en die uitbou van die ordening van hierdie bedryf. (Translation of Afrikaans speech follows.)
[Mr J P GELDERBLOM (Western Cape): Mr Chairman, I would like, at the very outset, to convey on behalf of the Western Cape a heartfelt word of thanks to the officials who made a presentation to the standing committee. Many of our concerns were resolved during that session.
The construction industry is and remains of cardinal importance to the inhabitants of the Western Cape. The reason for this is that in the Western Cape the construction industry is an important source of job creation for our people. The construction industry in the Western Cape has been having a reasonably good time in the past few years. When we think that we have a 17% unemployment figure in comparison with 34% in other parts of the country we are fairly grateful, although the situation is not as one would wish and we would like to see further growth in the economy.
Especially now that the preferential procurement model has come into operation it is very clear that the previously disadvantaged sections of our population are already benefiting greatly from the construction industry. What is very important to the Western Cape is that the points system has now been structured in such a way that previously disadvantaged contractors, and especially women, also receive additional points over and above price. We are deeply grateful for that.
It is interesting, and I want to put this on record here, that the contracts of less than R2 million of the works department of the Western Cape Province are now allocated to so-called affirmative business entrepreneurs and previously personally disadvantaged individuals.
At the first tabling of this Bill there were certain questions. We wondered whether this was just once again legislation that was centrally motivated. Initially our surmise was that perhaps we were dealing with centralisation. Briefly, we were concerned that it would also affect the autonomy of the province. A further concern was that the national Minister and the proposed council would, in terms of this legislation, acquire powers that would allow them to approve and allocate public sector contracts as they individually see fit.
What is positive, however, and we want to convey this to the Minister, is that when one reads between the lines and takes an in-depth look at the Bill, one realises that the objective of this legislation is to co-ordinate the process and to expand and promote the construction industry. The aforementioned is important to us, because proven experience and financial capability is important to us as far as prospective clients are concerned. The Western Cape is of the view that proven experience and financial capability are very important and noble objectives. Concerning the council that is going to be put into operation, it is important to us that there should be geographical representation, as has been mentioned here earlier by a colleague of the DP. Such updating of the envisaged register will also ensure that contractors who have proven experience and financial capability will be registered in an orderly manner. The Western Cape supports this Bill.
We are of the view that this legislation would be to the benefit of everyone in the Western Cape, that it would order the construction industry to a large degree and that it is aimed at consolidating existing opportunities in a single Act. In so doing it also has as objective to establish pertinent national standards in the industry. We believe that the support we lend to this will lead to further economic growth and the expansion of order in this industry.]
Chairperson, the UDM supports this Bill primarily because this statutory body at national level in the form of a juristic person will exercise an oversight function with regard to the co-ordination of all construction industry activities throughout the country. The balanced nature of the board's composition, which takes into account gender, race and geographical composition, will ensure an element of inclusivity. This exercise will undoubtedly enhance consistency and maintenance of standards, and create a platform for the exchange of ideas.
Clause 13 provides for the board to establish a construction industry stakeholders' forum, to keep the board abreast of matters that affect the construction industry. This input is commended because a pool of expertise, such as civil engineers, surveyors and draughtsmen will, for the first time, be afforded the opportunity to share expert knowledge with one another. Medical practitioners have been practising this approach. Extensive discussions are held, in which an exchange of expert knowledge takes place, before they undertake major operations in theatre. After all, unity is strength and divided we fall.
Clause 14 of the Bill calls for the reviewing of the board's activities every five years - which I think is rather too long - by an evaluating team that will comprise members of the public and private sectors. This is one away, amongst others, of ensuring that the findings are free from bias - that they are objective, reliable and valid.
Members will recall that lives were lost in Mpumalanga, near Bushbuckridge, during the construction of the Nwaretje bridge on the road to Graskop. This Bill is aimed, among other things, at preventing accidents of that nature.
Lastly, the UDM commends the provisions of this Bill when it comes to the daunting problem of unemployment we encounter in this country, particularly in the Northern Province. The establishment of the office of the registrar of contractors means that a number of people will be employed to serve as complementary staff or personnel. The same applies to the board itself. My congratulations go to those fortunate enough to secure these posts.
Let me conclude by congratulating in anticipation those that will serve on the board, the stakeholders' forum and the review committee, and wish them good luck. [Applause.]
Order! Hon member K D S Durr, I see you have been given an extra minute. You now have three minutes.
I thank the Whip for his generosity, Mr Chairman.
Chairperson, I do hope that the high hopes which the Minister has indicated to us here in her opening speech will be realised. It is absolutely vital for all of us that that should be. We have many statutory bodies, informal associations and professional bodies operating in this field already, and I do hope that we do not create further duplication with double or multiple jurisdiction. We have common cause that it is vital for us to free our construction industry to play its locomotive role in our society.
So much was said by the Minister about tourism. People always talk about tourism and the jobs it creates. Well, the construction industry is just as vital and just as promising, or more promising, an industry. It has a multiplier effect on the economy; it is labour-intensive; it does not generate imports or put a strain on the balance of payments; profits got are not transfer-priced out of the country; and raw materials are home- grown. The industry is ready, willing and able to deliver.
It is depressing to think that in a country such as ours, with our pressing housing problems, with our Rolls-Royce construction industry, large numbers of budgeted funds still go unspent, leaving people unhoused.
We in the Western Cape are one of only two provinces that have spent their entire housing budget. Other provinces have underspent by R400 million, in spite of the massive housing backlogs, and yet our building industry in the Cape faces further serious budgetary cuts. This year we were cut, and we will be cut again to R238 million in the year 2004.
The fact is that the greatest single asset that any nation has is its built environment: the existing stock of houses, the existing stock of public buildings, schools and hospitals, the existing roads and the existing physical infrastructure.
Also here we are falling behind. It will be a challenge to the board to see what we can do to meet these massive shortfalls for maintenance - maintenance that will become far more expensive later if we leave it too long. I can say to the Minister that we in the Western Cape also feel the impact of the fact that new housing starts in South Africa generally are 25% down on a year ago, and in the Western Cape we now have the worst situation since World War II, so for us it is a serious situation indeed.
Therefore, we support the measure. We support this effort on the Minister's part to try and arrest the situation and focus everybody on a common goal, hopefully a common national goal, with all of the elements of our society working together to the greater good, providing not only housing, but the whole plethora of what constitutes the built environment.
With that, we support the Bill and we wish the Minister well. We hope she will choose wisely and that she will choose people who will not only come here to represent their disciplines and be spokesmen for their interest groups, but also share her vision. [Time expired.] [Applause.]
Chairperson, hon Minister, special delegates and hon members, as legislators we carry an enormous burden on our shoulders. We have a duty to ensure that all laws that pass through Parliament fundamentally transform the quality of life of all South Africans. The Construction Industry Development Board Bill being dealt with today is no different.
The economic struggle in South Africa is a challenging one. Enormous challenges confront the Department of Public Works in this regard. Poverty is rife and the progress of emerging contractors remains static. It is in this context that we see the formation of the Construction Industry Development Board. The board seeks to address the inadequacies of the current construction industry as envisaged in the White Paper on Creating an Enabling Environment for Reconstruction, Growth and Development in the Construction Industry.
Though the task ahead is enormous and huge, the Department of Public Works will have to tackle the bull by the horns. On the one hand we have big wealthy construction industries, whilst on the other hand there are poor, struggling, emerging black contractors. Within our communities there is a proportion of contractors who are promising in the construction industry, but have not been given the opportunity. The opportunity now arises; it is none other than the CIDB. The CIDB is to function as a permanent vehicle to drive the strategy in partnership with all government delivery agencies and the private sector.
The construction industry is part of the backbone of our economy. The hon Minister Sigcau refers to it as a national asset. The board will attempt to take emerging contractors on board as these have experienced numerous historical and economic constraints, that have hindered the full participation of smaller companies in the economy. The White Paper on Creating an Enabling Environment for Reconstruction, Growth and Development in the Construction Industry states that -
Government believes that emerging construction-related SMEs can contribute significantly to the realisation of key economic and redistribution objectives for a number of reasons.
They can be powerful generators of income and employment opportunities since they generally use less capital investment per unit of output than larger enterprises.
SMEs can be more competitive than larger firms on certain types of small, disparate and geographically dispersed projects because they generally have relatively lower overheads.
The relatively low entry barriers in terms of skills and capital requirements make SME contracting an important entry point for historically disadvantaged person into the construction industry.
Lastly, the ANC supports the initiative of the department as this may go a long way in easing labour unrest in the construction industry. [Applause.]
Order! It would appear that the bull is becoming popular in this House. Maybe I need to ask the hon the Minister to respond.
Chairperson, first of all I would like to thank the hon members for their support for the Bill, and also for pointing out those areas in which they want us to be extra vigilant. It was interesting to note that some amakhosi can still wax lyrical. The first speaker was really good, and it reminded me of the days when I was part of Contralesa. [Laughter.] I want to assure this House that, as Public Works, we actually want to ensure that the construction industry does become regarded as one of the assets of Government. We also want to believe that it is the type of industry that, if well organised, will be able, as much as any other industry within Government, to form relationships and ties even across our borders, if it is well managed. I do want to believe that the board that we are talking about today is something that, as members have also acknowledged, could be just the right institution to make sure that the aspirations of the people within the industry are met.
I want to assure members that in the choice of whoever serves on the board, some of their concerns will have to be addressed. The very fact that we have said that it is going to be geographic shows clearly that we are mindful of the fact that there are provinces out there and that the people have got their own aspirations. We are also putting the whole issue of ethics at the forefront. We want to believe that if there is no code of conduct, if people are not registered, the issues around accountability become very difficult.
In the year that I have been in Public Works, one of the disturbing features has been the manner in which at times, as Government, we are taken for a ride, in the sense that one gets a contractor quoting how much will be spent on a particular job, but, when one actually looks at the product, which might have been passed as the right product by officials from our department, one just says to oneself, ``Goodness me! Only a quarter of what was budgeted has been used on this.'' Hence one gets sad stories like that of the classroom which fell on children. Hence one gets stories like those about what I sometimes fondly call ``winter roads'', which get washed away in summer.
I do want to believe that this will be part of what this board has to be vigilant about, so that we really maintain good standards. If this industry is to be an industry to be reckoned with, if it is to be highly competitive, it really has to uphold the highest standards.
I must say to hon members that I have been whispering in corridors and in my office that we have to blacklist some of the people who really give us shoddy work. Someone said there was a mushrooming of the number of contractors, and I have noticed that, especially when I deal with the Community-Based Public Works Programme. One just wonders. One day a group of young people - I happen to know one of them - came into my office. They were coming straight from their Std 10 classroom and told me that they were already forming a consortium. I just could not believe what was not happening.
When I asked who was backing them, I discovered that there was not so much by way of backing as they already had a contract to build a road. My question to them was: Who, at that committee, deals with tenders? So one of the things we are paying particular attention to is the whole issue of capacity-building, because it is highly critical. The area in which people believe that Government has not delivered is always around issues to do with capacity-building.
It is important and pleasing that Government is putting the whole issue of human resource development at the forefront. Members might not have noticed, but there is a lot of work going on in the partnership that Public Works now has with the Department of Labour in ensuring that there is some kind of training so that we end up showing areas of excellence, because this is an industry we are proud of.
The issue of maintenance was also mentioned. One of the downfalls and one of the areas in which we find ourselves having to pay the price of neglect is over some of the Government buildings that we have. Hence, as a department, we were happy when Cabinet agreed that with every new building that we put up in future we must, right from the outset, set aside 1,3% to see to the future maintenance of that particular building.
I thank the hon members, and I think the manner in which they have handled this Bill really makes me feel encouraged that the step we have taken as Public Works is appreciated, and if there is such encouragement, we dare not fail. [Applause.]
Debate concluded.
Bill agreed to in accordance with section 65 of the Constitution.